Document:

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                                                                    Exhibit 10.2

                                 LOAN AGREEMENT

     THIS LOAN AGREEMENT (the "Agreement") is made effective as of the 28th day
of June, 2001, by and among JLM CHEMICALS, INC., a Delaware corporation, JLM
REALTY, INC., a North Carolina corporation and JLM TERMINALS, INC., a North
Carolina corporation (collectively or individually as the context requires,
hereinafter referred to as "Borrower"), JLM INDUSTRIES, INC., a Delaware
corporation (the "Guarantor") and GATX CAPITAL CORPORATION, a Delaware
corporation (hereinafter referred to as "Lender").

                                R E C I T A L S:
                                ---------------

          A.   Borrower has applied to Lender for a term loan (the "Loan") in
the principal amount of Seven Million One Hundred Thirty-five Thousand and
No/100 Dollars ($7,135,000.00) to be secured by a first mortgage lien on certain
real property located in Blue Island, Illinois and in Wilmington, North
Carolina, all as more particularly described on Exhibit "A" attached hereto and
as described in those certain Mortgage and Security Agreements of even date
herewith securing the Loan (the "Land") and all improvements located on the Land
(the "Improvements"), (the Land and all Improvements, fixtures and personal
property owned by Borrower now or hereafter located on the Land are hereinafter
collectively referred to as the "Premises").

          B.   Borrower and Lender have negotiated the terms and conditions of,
and wish to enter into, this Agreement in order to set forth the terms and
conditions with respect to the disbursement of the Loan.

          NOW, THEREFORE, in consideration of the Premises, and of the mutual
covenants and agreements set forth below, Borrower and Lender agree as follows:

     1. DEFINITIONS. As used in this Agreement the terms listed below shall have
the following meanings unless otherwise required by the context:

          (a) ACCOUNTS shall mean, as to JLM Chemicals, Inc., all present and
     future rights of such JLM Chemicals, Inc. to payment for goods sold or
     leased or for services rendered, whether or not evidenced by instruments or
     chattel paper, and whether or not earned by performance.

          (b) ADJUSTED TANGIBLE NET WORTH shall mean as to any Person, at any
     time, in accordance with GAAP (except as otherwise specifically set forth
     below), on a consolidated basis for such Person and its Subsidiaries (if
     any), the amount equal to ^ the difference between: (a) the aggregate net
     book value of all assets of such Person and its Subsidiaries (excluding the
     value of patents, trademarks, tradenames, copyrights, licenses, goodwill,
     leasehold improvements, prepaid assets and other intangible assets),
     calculating the book value of inventory for this purpose on a
     first-in-first-out basis, after deducting from such book values all
     appropriate reserves in accordance with GAAP (including all reserves for
     doubtful receivables, obsolescence, depreciation and amortization) and (b)
     the aggregate amount of the ^ Indebtedness and other liabilities of such
     Person and its Subsidiaries (including tax and other proper accruals to the
     extent

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     required to be shown as liabilities on a balance sheet of such Person
     prepared in accordance with GAAP.

          (c) AFFILIATE shall mean, with respect to a specified Person, any
     other Person (a) which directly or indirectly through one or more
     intermediaries controls, or is controlled by, or is under common control
     with, such specified person; (b) which beneficially owns or holds five (5%)
     percent or more of any class of the Voting Stock or other equity interest
     of such specified person; or (c) of which five (5%) percent or more of the
     Voting Stock or other equity interest is beneficially owned or held by such
     specified person or a Subsidiary of such specified person. For purposes of
     this definition, "control" (including, with correlative meanings, the terms
     "controlling", "controlled by" and "under common control with") when used
     with respect to any specified person shall mean the possession, directly or
     indirectly, of the power to direct or cause the direction of the management
     and policies of such person, whether through the ownership of Voting Stock,
     by agreement or otherwise.

          (d) AGREEMENT FOR WARRANT. That certain Agreement for Warrant of even
     date herewith executed by Borrower and Lender.

          (e) ASSIGNMENT OF PERMITS, AGREEMENTS, APPROVALS, FEES, DEPOSITS AND
     TRADE NAMES: An Assignments of Permits, Agreements, Approvals, Fees,
     Deposits and Trade Names of even date herewith from Borrower assigning to
     Lender, among other things, all contract rights, sewer tap rights, utility
     commitments, licenses, agreements and trade names pertaining directly or
     indirectly to the Land and the use thereof.

          (f) CAPITAL LEASES shall mean, as applied to any Person, any lease of
     (or any agreement conveying the right to use) any property (whether real,
     personal or mixed) by such Person as lessee which in accordance with GAAP,
     is required to be reflected as a liability on the balance sheet of such
     Person.

          (g) CAPITAL STOCK shall mean, with respect to any Person, any and all
     shares, interests, participations or other equivalents (however designated)
     of such Person's capital stock, partnership interests or limited liability
     company interests at any time outstanding, and any and all rights, warrants
     or options exchangeable for or convertible into such capital stock or other
     interests (but excluding any debt security that is exchangeable for or
     convertible into such capital stock).

          (h) CASH EQUIVALENTS shall mean, at any time, (a) any evidence of
     Indebtedness with a maturity date of one hundred eighty (180) days or less
     issued or directly and fully guaranteed or insured by the United States of
     America of any agency or instrumentality thereof; PROVIDED, THAT, the full
     faith and credit of the United States of America is pledged in support
     thereof; (b) certificates of deposit or bankers' acceptances with a
     maturity of one hundred eighty (180) days or less of any financial
     institution that is a member of the Federal Reserve System having combined
     capital and surplus and undivided profits of not less than $250,000,000;
     (c) commercial paper (including variable rate demand notes) with a maturity
     of one hundred eighty (180) days or less issued by a corporation (except an
     Affiliate of a Borrower or Guarantor) organized under the laws of any State
     of the

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     United States of America or the District of Columbia and rated at least A-1
     by Standard & Poor's Ratings Service, a division of The McGraw-Hill
     Companies, Inc. or at least P-1 by Moody's Investors Service, Inc.; (d)
     repurchase obligations with a term of not more than thirty (30) days for
     underlying securities of the types described in clause (a) above entered
     into with any financial institution having combined capital and surplus and
     undivided profits of not less than $250,000,000; (e) repurchase agreements
     and reverse repurchase agreements relating to marketable direct obligations
     issued or unconditionally guaranteed by the United States of America or
     issued by any governmental agency thereof and backed by the full faith and
     credit to the United States of America, in each case maturing within one
     hundred eighty (180) days or less from the date of acquisition; PROVIDED,
     THAT, the terms of such agreements comply with the guidelines set forth in
     the Federal Financial Agreements of Depository Institutions with Securities
     Dealers and Others, as adopted by the Comptroller of the Currency on
     October 31, 1985; and (f) investments in money market funds and mutual
     funds which invest substantially all of their assets in securities of the
     types described in clauses (a) through (e) above.

          (i) CHANGE OF CONTROL shall mean shall mean (a) the transfer (in one
     transaction or a series of transactions) of all or substantially all of the
     assets of any Borrower or Guarantor to any Person or group (as such term is
     used in Section 13(d)(3) of the Exchange Act) except as otherwise permitted
     in Section 5 hereof; (b) the liquidation or dissolution of any Borrower or
     Guarantor or the adoption of a plan by the stockholders of any Borrower or
     Guarantor relating to the dissolution or liquidation of such Borrower or
     Guarantor; (c) the acquisition by any Person or group (as such term is used
     in Section 13(d)(3) of the Exchange Act), except for one or more Permitted
     Holders, of beneficial ownership, directly or indirectly, of fifty (50%)
     percent or more of the voting power of the total outstanding Voting Stock
     of Guarantor or the Board of Directors of Guarantor; (d) during any period
     of two (2) consecutive years, individuals who at the beginning of such
     period constituted the Board of Directors of Guarantor (together with any
     new directors who have been appointed by any Permitted Holder, or whose
     nomination for election by the stockholders of Guarantor, as the case may
     be, was approved by a vote of at least sixty-six and two-thirds (66 2/3%)
     percent of the directors then still in office who were either directors at
     the beginning of such period or whose election or nomination for election
     was previously so approved) cease for any reason to constitute a majority
     of the Board of Directors of Guarantor then still in office; or (e) the
     failure of the Permitted Holders to own more than fifty (50%) percent of
     the voting power of the total outstanding Voting Stock of Guarantor; and
     (f) the failure of Guarantor to own one hundred (100%) percent of the
     voting power of the total outstanding Voting Stock of any of the Borrowers,
     and Guarantors.

          (j) CODE shall mean the Internal Revenue Code of 1986, as the same now
     exists or may from time to time hereafter be amended, modified, recodified
     or supplemented, together with all rules, regulations and interpretations
     thereunder or related thereto.

          (k) COLLATERAL shall have the meaning set forth in the Security
     Agreement of even date herewith between Borrower and Lender and also the
     Premises.

          (l) INTENTIONALLY OMITTED.

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          (m) COLLATERAL ASSIGNMENT OF LEASES, RENTS AND CONTRACT RIGHTS: The
     Collateral Assignments of Leases, Rents and Contract Rights of even date
     herewith from Borrower assigning to Lender all of its right, title and
     interest in and to all agreements for the leasing of the Premises or any
     part thereof, and all rents, issues and profits derived or to be derived
     from the Premises, and all contracts related to the Premises.

          (n) COLLATERAL ASSIGNMENT OF LICENSE AGREEMENT. That certain
     Collateral Assignment of Q-Max Process License Agreement of even date
     herewith from Borrower assigning to Lender all of its right, title and
     interest in and to that certain Q-Max Process License Agreement dated
     November 21, 1994 between BTL Specialty Resins Corp. ("BTL") and UOP, which
     was assigned by BTL to Borrower;

          (o) ENVIRONMENTAL LAWS shall mean all foreign, Federal, State and
     local laws (including common law), legislation, rules, codes, licenses,
     permits (including any conditions imposed therein), authorizations,
     judicial or administrative decisions, injunctions or agreements between
     Borrower and any Governmental Authority, (a) relating to pollution and the
     protection, preservation or restoration of the environment (including air,
     water vapor, surface water, ground water, drinking water, drinking water
     supply, surface land, subsurface land, plant and animal life or any other
     natural resource), or to human health or safety, (b) relating to the
     exposure to, or the use, storage, recycling, treatment, generation,
     manufacture, processing, distribution, transportation, handling, labeling,
     production, release or disposal, or threatened release, of Hazardous
     Materials, or (c) relating to all laws with regard to recordkeeping,
     notification, disclosure and reporting requirements respecting Hazardous
     Materials. The term "Environmental Laws" includes (i) the Federal
     Comprehensive Environmental Response, Compensation and Liability Act of
     1980, the Federal Superfund Amendments and Reauthorization Act, the Federal
     Water Pollution Control Act of 1972, the Federal Clean Water Act, the
     Federal Clean Air Act, the Federal Resource Conservation and Recovery Act
     of 1976 (including the Hazardous and Solid Waste Amendments thereto), the
     Federal Solid Waste Disposal and the Federal Toxic Substances Control Act,
     the Federal Insecticide, Fungicide and Rodenticide Act, and the Federal
     Safe Drinking Water Act of 1974, (ii) applicable state counterparts to such
     laws, and (iii) any common law or equitable doctrine that may impose
     liability or obligations for injuries or damages due to, or threatened as a
     result of, the presence of or exposure to any Hazardous Materials.

          (p) EQUIPMENT shall mean, as to each Borrower, all of such Borrower's
     now owned and hereafter acquired equipment, machinery, computers and
     computer hardware and software (whether owned or licensed), vehicles,
     tools, furniture, fixtures, all attachments, accessions and property now or
     hereafter affixed thereto or used in connection therewith, and
     substitutions and replacements thereof, on the Premises.

          (q) ERISA shall mean the United States Employee Retirement Income
     Security Act of 1974, together with all rules, regulations and
     interpretations thereunder or related thereto.

          (r) EXCHANGE ACT shall mean the Securities Exchange Act of 1934, as
     the same now exists or may hereafter from time to time be amended,
     modified, recodified or

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     supplemented, together with all rules, regulations and interpretations
     thereunder or related thereto.

          (s) FINANCING AGREEMENTS shall mean, collectively, this Agreement, and
     all notes, guarantees, security agreements and other agreements, documents
     and instruments now or at any time hereafter executed and/or delivered by
     any Borrower or any Obligor in connection with this Agreement.

          (t) FINANCING STATEMENTS. The financing statements from Borrower to
     Lender to perfect Lender's security interest in the personal property
     described in the Mortgage and Security Agreement.

          (u) GAAP. GAAP shall mean generally accepted accounting principles in
     the United States of America as in effect from time to time as set forth in
     the opinions and pronouncements of the Accounting Principles Board and the
     American Institute of Certified Public Accountants and the statements and
     pronouncements of the Financial Accounting Standards Board which are
     applicable to the circumstances as of the date of determination
     consistently applied.

          (v) GOVERNMENTAL AUTHORITY shall mean any nation or government, any
     state, province, or other political subdivision thereof, any central bank
     (or similar monetary or regulatory authority) thereof, any entity
     exercising executive, legislative, judicial, regulatory or administrative
     functions of or pertaining to government, and any corporation or other
     entity owned or controlled, through stock or capital ownership or
     otherwise, by any of the foregoing.

          (w) GROUP. Group means collectively the Borrower, Guarantor and JLM
     Marketing, Inc.

          (x) GUARANTY AGREEMENT. The Guaranty Agreement for Payment of even
     date herewith executed by Guarantor. It is expressly understood and agreed
     to between the parties that such Guaranty Agreement is enforceable whether
     or not Lender seeks recovery from any other guarantors and whether or not
     Lender seeks recovery against the Collateral. In addition, Guarantor's
     guarantee of payment under the Guaranty Agreement shall not be reduced by
     any amounts received by Lender from any other guarantor, including, without
     limitation, amounts received from foreclosure of the collateral security
     for the Note.

          (y) HAZARDOUS MATERIALS shall mean any hazardous, toxic or dangerous
     substances, materials and wastes, including hydrocarbons (including
     naturally occurring or man-made petroleum and hydrocarbons), flammable
     explosives, asbestos, urea formaldehyde insulation, radioactive materials,
     biological substances, polychlorinated biphenyls, pesticides, herbicides
     and any other kind and/or type of pollutants or contaminants (including
     materials which include hazardous constituents), sewage, sludge, industrial
     slag, solvents and/or any other similar substances, materials, or wastes
     and including any other substances, materials or wastes that are or become
     regulated under

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     any Environmental Law (including any that are or become classified as
     hazardous or toxic under any Environmental Law).

          (z) INDEBTEDNESS shall mean, with respect to any Person, any
     liability, whether or not contingent, (a) in respect of borrowed money
     (whether or not the recourse of the lender is to the whole of the assets of
     such Person or only to a portion thereof) or evidenced by bonds, notes,
     debentures or similar instruments; (b) representing the balance deferred
     and unpaid of the purchase price of any property or services (except any
     such balance that constitutes an account payable to a trade creditor
     (whether or not an Affiliate) created, incurred, assumed or guaranteed by
     such Person in the ordinary course of business of such Person in connection
     with obtaining goods, materials or services that is not overdue by more
     than ninety (90) days, unless the trade payable is being contested in good
     faith); (c) all obligations as lessee under leases which have been, or
     should be, in accordance with GAAP recorded as Capital Leases; (d) any
     contractual obligation, contingent or otherwise, of such Person to pay or
     be liable for the payment of any indebtedness described in this definition
     of another Person, including, without limitation, any such indebtedness,
     directly or indirectly guaranteed, or any agreement to purchase,
     repurchase, or otherwise acquire such indebtedness, obligation or liability
     or any security therefor, or to provide funds for the payment or discharge
     thereof, or to maintain solvency, assets, level of income, or other
     financial condition; (e) all obligations with respect to redeemable stock
     and redemption or repurchase obligations under any Capital Stock or other
     equity securities issued by such Person; (f) all reimbursement obligations
     and other liabilities of such Person with respect to surety bonds (whether
     bid, performance or otherwise), letters of credit, banker's acceptances or
     similar documents or instruments issued for such Person's account; and (g)
     all indebtedness of such Person in respect of indebtedness of another
     Person for borrowed money or indebtedness of another Person otherwise
     described in this definition which is secured by any consensual lien,
     security interest, collateral assignment, conditional sale, mortgage, deed
     of trust, or other encumbrance on any asset of such Person, whether or not
     such obligations, liabilities or indebtedness are assumed by or are a
     personal liability of such Person, all as of such time.

          (aa) INFORMATION CERTIFICATE shall mean the Information Certificates
     with respect to each Borrower and Guarantor constituting Schedule 1(aa)
     hereto containing material information with respect to such Borrower and
     Guarantor, its business and assets provided by or on behalf of Borrowers or
     Guarantors to Lender in connection with the preparation of this Agreement
     and the other Financing Agreements and the financing arrangements provided
     for herein.

          (bb) INTERCREDITOR AGREEMENT. That certain Intercreditor Agreement of
     even date herewith by and among Borrower, Lender and Congress Financial
     Corporation.

          (cc) INVENTORY shall mean all of JLM Chemical, Inc.'s now owned and
     hereafter existing or acquired raw materials, work in process, finished
     goods and all other inventory of whatsoever kind or nature, wherever
     located.

          (dd) LOAN DOCUMENTS. Any and all documents evidencing, securing, or
     executed in connection with the Loan, including but not limited to, that
     certain

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     Agreement for Warrant, Intercreditor Agreement, the Collateral Assignment
     of License Agreement and the Collateral Assignment of JLM Marketing Acetone
     Contract.

          (ee) MATERIAL CONTRACT shall mean (a) any contract or other agreement
     (other than the Financing Agreements), written or oral, of any Borrower
     involving monetary liability of or to any Person in an amount payable in
     excess of $1,000,000.00 in any fiscal year and (b) any other contract or
     other agreement (other than the Financing Agreements), whether written or
     oral, to which Borrower is a party as to which the breach, nonperformance,
     cancellation or failure to renew by any party thereto would have a material
     adverse effect on the business, assets, condition (financial or otherwise)
     or results of operations of any Borrower or Guarantor or the validity or
     enforceability of this Agreement, any of the other Financing Agreements, or
     any of the rights and remedies of Lender hereunder or thereunder.

          (ff) MORTGAGE. The Mortgage and Security Agreement by JLM Chemicals,
     Inc. and Deed of Trust and Security Agreement given by JLM Terminals, Inc.
     and JLM Realty, Inc. to a trustee for Lender, as beneficiary both of even
     date herewith, securing, among other things, the Note in the amount of
     Seven Million One Hundred Thirty-five Thousand and No/100 Dollars
     ($7,135,000.00), and which are valid first mortgage liens on all of
     Borrower's fee simple title interest in and to the Land, all rents, leases
     and contract rights related thereto, and all Improvements, fixtures,
     attached and unattached equipment, furnishings and personal property owned
     by Borrower to be located on or used in connection with the Land, and any
     replacement or additions thereof.

          (gg) NOTE. The Promissory Note of even date herewith from Borrower to
     the order of Lender in the original principal amount of Seven Million One
     Hundred Thirty-five Thousand and No/100 Dollars ($7,135,000.00) evidencing
     the Loan.

          (hh) OBLIGATIONS shall mean any and all loans, letter of credit
     accommodations and all other obligations, liabilities and indebtedness of
     every kind, nature and description owing by a Borrower or Guarantor to
     Lender and/or its Affiliates, including principal, interest, charges, fees,
     costs and expenses, however evidenced, whether as principal, surety,
     endorser, guarantor or otherwise, whether arising under this Agreement, or
     otherwise, whether now existing or hereafter arising, whether arising
     before, during or after the initial or any renewal term of this Agreement
     or after the commencement of any case with respect to a Borrower or
     Guarantor under the United States Bankruptcy Code or any similar statute
     (including the payment of interest and other amounts which would accrue and
     become due but for the commencement of such case, whether or not such
     amounts are allowed or allowable in whole or in part in such case), whether
     direct or indirect, absolute or contingent, joint or several, due or not
     due, primary or secondary, liquidated or unliquidated, secured or
     unsecured, and however acquired by Lender.

          (ii) OBLIGOR shall mean any guarantor, endorser, acceptor, surety or
     other person liable on or with respect to the Obligations or who is the
     owner of any property which is security for the Obligations (including,
     without limitation, Guarantors), other than a Borrower.

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          (jj) PERMITS means all material permits, licenses, approvals,
     consents, certificates, orders or authorizations of any Governmental
     Authority required for the lawful conduct of its business.

          (kk) PERMITTED HOLDERS shall mean (a) John L. McDonald; (b) the heirs,
     executors, administrators, testamentary trustees, legatees or beneficiaries
     of the Person set forth in Section 1(ll) hereof; (c) a trust, the
     beneficiaries of which (ignoring remote contingent interests), or a
     corporation, partnership or other entities, the stockholders, members,
     general or limited partners or owners of which, include only any or all of
     the Person set forth in Section 1(ll) hereof. For purposes of this
     definition, the term "control" (including the correlative meanings, the
     terms "controlled by" and "under common control with"), as used with
     respect to any Person shall mean the possession, directly, or indirectly,
     of the power to direct or cause the direction of the management and
     policies of such Person, whether through the ownership of Voting Stock or
     by contract or otherwise.

          (ll) PERSON or "person" shall mean any individual, sole
     proprietorship, partnership, corporation (including any corporation which
     elects subchapter S status under the Code), limited liability company,
     limited liability partnership, business trust, unincorporated association,
     joint stock corporation, trust, joint venture or other entity or any
     government or any agency or instrumentality or political subdivision
     thereof.

          (mm) SUBORDINATED NOTES shall mean, collectively, the promissory notes
     or other instruments issued by any Borrower or Guarantor, as the case may
     be, payable to the Subordinated Noteholders described on Schedule 1(nn)
     hereto, as the same now exist or may hereafter be amended, modified,
     supplemented, extended, renewed, restated or replaced.

          (nn) SUBORDINATED NOTEHOLDERS shall mean, collectively, each of the
     persons listed on Schedule 1(nn) hereto and their respective heirs,
     executors, administrators, legal representatives, successors and assigns.

          (oo) SUBSIDIARY or "subsidiary" shall mean, with respect to any
     Person, any corporation, limited liability company, limited liability
     partnership or other limited or general partnership, trust, association or
     other business entity of which an aggregate of at least a majority of the
     outstanding Capital Stock or other interests entitled to vote in the
     election of the board of directors of such corporation (irrespective of
     whether, at the time, Capital Stock of any other class or classes of such
     corporation shall have or might have voting power by reason of the
     happening of any contingency), managers, trustees or other controlling
     persons, or an equivalent controlling interest therein, of such Person is,
     at the time, directly or indirectly, owned by such Person and/or one or
     more subsidiaries of such Person.

          (pp) TITLE COMPANY. Lawyers Title Insurance Company, or any other
     title insurance company accepted by Lender in writing.

          (qq) VOTING STOCK shall mean with respect to any Person, (a) one (1)
     or more classes of Capital Stock of such Person having general voting
     powers to elect at least a

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     majority of the board of directors, managers or trustees of such Person,
     irrespective of whether at the time Capital Stock of any other class or
     classes have or might have voting power by reason of the happening of any
     contingency, and (b) any Capital Stock of such Person convertible or
     exchangeable without restriction at the option of the holder thereof into
     Capital Stock of such Person described in clause (a) of this definition.

     2. CONDITIONS TO LENDER'S OBLIGATION TO CLOSING. The conditions listed
below are a condition precedent to any obligation of Lender, including, without
limitation, any obligation to close the Loan, and shall be complied with in form
and substance reasonably satisfactory to Lender prior to the closing of the
Loan, except as may be expressly provided below:

          (a) TITLE INSURANCE: Borrower shall deliver to Lender an original
     Title Commitment for a Lender's Title Insurance Policy issued by the Title
     Company, in the amount of the Note, showing "GATX Capital Corporation, a
     Delaware corporation, and its successors and assigns" as insured, which
     title insurance commitment shall commit to insure (i) that the Mortgage is
     a valid first mortgage lien on the fee simple title of the Premises at the
     time of the Advance, and (ii) that title to the Land encumbered by the
     Mortgage is good and marketable and free and clear of all liens,
     encumbrances, easements, exceptions, reservations and restrictions except
     for those approved by Lender. Lender shall be sent copies of all recorded
     exceptions and the title premium invoice and will require notification from
     the Title Company of survey approval. All standard exceptions shall be
     deleted from the Policy.

          (b) SURVEY: Borrower shall furnish to Lender a foundation survey
     recently dated, showing a legal description identical to that in the Title
     Commitment and complying with the "Survey Requirements Letter" attached
     hereto as Exhibit "C". The certification shall be to the Lender, the Title
     Company, Foley & Lardner, and the Borrower. Borrower shall furnish the
     Surveyor with a copy of the Lender's Title Commitment and copies of all
     recorded title exceptions in order that the Surveyor can locate all
     easements and other matters affecting the property. Six (6) prints of the
     survey shall be required and they will be included in the closing binders.
     Borrower shall deliver one (1) print of the survey to the Title Company for
     their review and approval prior to closing the Loan.

          (c) NOTE: The Note shall be duly authorized, executed and delivered to
     Lender.

          (d) MORTGAGE: The Mortgage shall be duly authorized, executed,
     acknowledged, delivered to Lender, and recorded.

          (e) GUARANTY AGREEMENT: The Guaranty Agreement shall be duly
     authorized, executed, and acknowledged by Guarantor, and delivered to
     Lender.

          (f) ASSIGNMENTS: The Assignment of Leases, Rents and Contract Rights,
     and the Assignment of Permits, Agreements, Approvals, Fees, Deposits and
     Trade Names, shall be duly authorized, executed, and acknowledged by
     Borrower, and delivered to Lender.

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          (g) AGREEMENT FOR WARRANT. The Agreement for Warrant shall be duly
     authorized, executed, and acknowledged by Borrower and delivered to Lender,
     and must be in form and content acceptable to Lender.

          (h) INTERCREDITOR AGREEMENT. The Intercreditor Agreement shall be the
     duly authorized, executed, acknowledged and consented to, as the case may
     be, by Borrower, Congress Financial Corporation and Lender, and must be in
     form and content acceptable to Lender.

          (i) COLLATERAL ASSIGNMENT OF LICENSE AGREEMENT. The Collateral
     Assignment of License Agreement shall be duly authorized, executed and
     acknowledged by Borrower and must be in form and content acceptable to
     Lender.

          (j) INTENTIONALLY OMITTED.

          (k) BORROWER'S AFFIDAVIT: An affidavit of Borrower shall be executed
     and delivered to Lender certifying that no liens exist on the Premises
     other than for taxes not yet due and payable and that no other parties are
     entitled to possession except Borrower.

          (l) FINANCING STATEMENTS: Borrower shall execute and deliver to Lender
     the Financing Statements Lender may require to perfect its security
     interest in the personal property described in the Mortgage and the
     Assignments.

          (m) INSURANCE: Borrower shall maintain "All Risk Hazard" Insurance on
     the Premises. The deductible for said insurance shall not exceed $1,000.00.
     In addition, the Borrower shall obtain public liability insurance naming
     Lender as an additional insured insuring against all claims for personal or
     bodily injury, death, or property damage occurring upon, in or about the
     Premises in an amount of not less than Twenty-Seven Million Dollars
     ($27,000,000.00) single limit coverage. The Borrower will keep all
     buildings and improvements whether now standing on the Premises or
     hereafter erected and all fixtures and personal property located in and on
     the Premises, continuously insured in an amount no less than full
     replacement value, which coverage shall insure the Premises against loss or
     damage by fire and by the perils covered by extended coverage and against
     such other hazards as the Lender, in its sole discretion, shall from time
     to time require, for the benefit of the Lender, which for purposes of this
     Agreement shall mean actual replacement value (exclusive of costs of
     excavation, foundation, underground utilities and footings) with waiver of
     depreciation. The Borrower shall also obtain the following insurance (a)
     worker's compensation insurance coverage which evidences Borrower's
     compliance with all of the requirements of all applicable law with respect
     to worker's compensation insurance; (b) if the Premises are located in an
     area designated by the Director of the Federal Emergency Management Agency
     as a special flood hazard area, flood insurance which shall be in an amount
     equal to the maximum insurable of any vertical improvements; provided,
     however, that flood insurance will not be required on any portion of the
     Premises that is not located in a special flood hazard area; (c) business
     interruption/rental income insurance against loss of income in an amount
     not less than 100% of twelve (12) months of rent for the Premises; and (d)
     pollution liability insurance acceptable to Lender in a minimum amount of

                                       10
<PAGE>

     $30,000,000.00. All such insurance at all times will be in an insurance
     company or companies in such amounts and with terms acceptable to the
     Lender, with loss, if any, payable to the Lender as its interest may
     appear, pursuant to a noncontributory lender clause which shall be
     satisfactory to the Lender and addressed to: GATX Capital Corporation, Four
     Embarcadcio Center, Suite 2200, San Francisco, California 94111 and shall
     include an endorsement for waiver of subrogation. Additionally, (i) the
     liability policy shall be endorsed to specify that the coverage for the
     additional insured is primary as respects any other coverage available to
     the additional insured; (ii) the liability policy must contain a
     cross-liability or severability of interest clause; and (iii) the proper
     damage coverage must provide a breach of warranty clause in favor of the
     Lender. All insurance policies required hereunder shall provide that they
     will not be canceled or modified without thirty (30) days prior written
     notice to the Lender. Upon the issuance of such policies the Borrower will
     deliver to the Lender certificates of insurance. Any certificates furnished
     the Lender shall become its property in the event the Lender becomes the
     owner of the Premises by foreclosure or otherwise. The Lender is hereby
     authorized and empowered, at its option, to adjust or compromise any loss
     under any insurance policies on the Premises, and to collect and receive
     the proceeds from any such policy or policies. In case of loss under any
     such policy of insurance, the Lender may apply the net proceeds to the
     payment of the indebtedness hereby secured, whether due or not, or the
     Lender may require all Improvements to be repaired or replaced by the use
     of said net proceeds. In the event the funds are to be disbursed for
     construction purposes, such funds shall be disbursed in accordance with the
     usual and customary construction disbursement procedures of Lender, and in
     accordance with this Agreement, which procedures may include, but shall not
     be limited to, draw requests, retainage requirements, sufficient evidence
     of necessary equity to complete the project, lien waivers, title insurance
     endorsements and inspections, which title insurance endorsements and
     inspections shall be paid for by Borrower.

          (n) APPRAISAL: Lender must receive and approve a certified appraisal
     of the Premises.

          (o) EXPENSES: Borrower shall pay all those fees and charges due and
     payable or ordered paid by Lender as provided in of this Agreement.

          (p) PUBLIC REQUIREMENTS: Borrower shall deliver to Lender:

               (i) evidence satisfactory to Lender that all utilities (water,
          electricity and telephone) and storm and sanitary sewer drainage and
          water facilities and solid waste removal are or will be available to
          the Premises and are adequate for and may be utilized by the
          Improvements erected or to be erected on any portion thereof;

               (ii) evidence satisfactory to the Lender that all roads necessary
          for the full utilization of the Improvements for their intended
          purposes have either been completed or the necessary rights of way
          therefor have either been acquired by the appropriate governmental
          authorities or have been dedicated to public use and accepted by such
          governmental authorities and that all necessary steps have been

                                       11
<PAGE>

          taken by Borrower and such governmental authorities to assure the
          complete construction and installation thereof; and

               (iii) verification from appropriate governmental authorities that
          the Premises is zoned in accordance with the proposed use, that such
          zoning is consistent with and permitted under the appropriate Land Use
          Plan for the area, and that all requirements for the development of
          the Premises as contemplated herein are satisfied. Borrower shall
          submit a zoning letter in form and content acceptable to Lender,
          together with a certified copy of the zoning ordinance, a certified
          copy of the zoning map, a copy of the preliminary Site Plan as
          approved by the Zoning Department.

          (q) ENTITY DOCUMENTS:

               (i) As to each Borrower and Guarantor, the following documents
          shall be required:

                    (1) The certificate of incorporation and all amendments
               thereof, certified by the appropriate official of the State of
               Incorporation and/or Organization;

                    (2) Current good standing certificates from the Secretary of
               the State of Incorporation and/or Organization;

                    (3) Articles of Incorporation and Bylaws certified by the
               Secretary of the Corporation;

                    (4) An incumbency certificate specifying the name and title
               of the officers and directors, certified by the secretary and
               sealed with the corporate seal; and

                    (5) Certified resolution of the shareholders and the Board
               of Directors authorizing the execution and delivery of the Loan
               Documents and all other documents necessary or desirable, for the
               consummation of the transaction contemplated herein.

          (r) OPINION OF BORROWER'S AND GUARANTOR'S COUNSEL: The Letter of
     Opinion of Borrower's and Guarantor's counsel shall be acceptable to Lender
     and Lender's counsel.

          (s) EASEMENTS AND AGREEMENTS: Lender shall have received and approved
     all necessary easements and agreements between the Premises and adjacent
     properties and dedicated public rights of way, if necessary, in order for
     the Premises to have adequate drainage, retention, utilities, parking,
     access and ingress-egress.

          (t) TAX I.D. NUMBERS: The Tax Identification Numbers of Borrower and
     Guarantor shall be provided to Lender.

                                       12
<PAGE>

          (u) FINANCIAL STATEMENTS AND TAX RETURNS: Current financial statements
     and tax returns of Borrower and Guarantor shall be delivered to and
     approved by Lender.

          (v) UCC-1 SEARCHES: Borrower shall deliver to Lender a UCC-1 searches
     from the Secretary of State of Illinois, North Carolina and Delaware on
     Borrower and Guarantor, which UCC-1 Searches shall be delivered to Lender
     and Lender's counsel. Copies of all items noted on the searches shall be
     furnished to Lender at least three (3) days prior to closing of the Loan.

          (w) TAXES: All taxes and assessments payable in connection with the
     Premises and the Improvements are to be paid at the time of the closing of
     the Loan and subsequent taxes and assessments must be paid when due. Paid
     ad valorem tax receipts for the year 2000 shall be furnished to Lender
     prior to the closing of the Loan.

          (x) SATISFACTION OF MORTGAGE: Satisfaction of all existing mortgages
     affecting the Premises, if any, will be required prior to the closing of
     the Loan.

          (y) LIENS: Lender shall receive evidence satisfactory to Lender in
     Lender's sole discretion that no liens exist for work done prior to the
     closing of the Loan and that no rights exist which could be deemed superior
     to Lender's lien priority as a first Lender or grantee under the Mortgage.

          (z) TOXIC WASTE AND ENVIRONMENTAL AUDITS: Borrower shall provide to
     Lender a Phase I Environmental Audit which must be acceptable to Lender,
     otherwise Lender shall not be obligated to close the Loan. Additionally, as
     a condition to closing the Loan, Borrower and Guarantor shall execute and
     deliver an Environmental Indemnification Agreement prepared by Lender which
     shall hold Lender and its successors and assigns harmless in the event of
     present or future existence of hazardous substances. It is expressly
     understood and agreed to between the parties that such obligations under
     the Indemnity Agreement are enforceable whether or not Lender seeks
     recovery against the collateral securing the Loan.

          (aa) LICENSE AGREEMENT AND JLM MARKETING ACETONE CONTRACT. Borrower
     shall not, without each case having obtained the prior written consent of
     Lender, amend or modify, directly or indirectly, or, in any respect
     whatsoever cancel, terminate or accept any surrender of the License
     Agreement. Furthermore, Borrower acknowledges and agrees that any
     amendment, or modification, directly or indirectly or, any cancellation,
     termination or acceptance of any surrender of the JLM Marketing Acetone
     Contract shall constitute a default hereunder.

          (bb) ACCESS: Borrower shall deliver to Lender evidence that access to
     the Premises is provided by a publicly dedicated paved road appurtenant
     thereto.

          (cc) FEES: Borrower shall have paid Lender any remaining portion of
     the loan origination fee for the Loan.

                                       13
<PAGE>

          (dd) FLOOD CERTIFICATION: Lender, at Borrower's expense, shall obtain
     a flood certification from a third party.

          (ee) REPRESENTATIONS AND WARRANTIES: The representations and
     warranties of Borrower as set forth in this Agreement and the Loan
     Documents shall be true and correct.

     3. EXPENSES: Borrower shall pay all reasonable fees and charges incurred in
the procuring and making of the Loan and all other reasonable expenses incurred
by Lender during the term of the Loan, including without limitation Title
Company's fees and premiums, charges for examination of title to the Premises,
expenses of surveys, documentary stamp taxes, intangible taxes, recording
expenses, fees of the Inspector and disbursing agent, and the fees of the
attorneys for Lender. The Borrower shall also pay any and all insurance
premiums, taxes, assessments, water rates, sewer rates and other charges, liens
and encumbrances upon the Premises, any other expenses shown on EXHIBIT "B"
attached hereto, and any other amounts necessary for the payment of the cost of
the Improvements. Such amounts, unless sooner paid, shall be paid from time to
time as Lender shall request either to the person to whom such payments are due
or to Lender if Lender has paid the same, or Lender may, at its option, deduct
from any Advance any amounts necessary for the payment of these items, and apply
such amounts in making such payments, and all sums so applied shall be deemed
Advances under this Agreement.

     4. WARRANTIES AND REPRESENTATIONS OF BORROWER. Borrower represents and
warrants (which representations and warranties shall be deemed continuing) as
follows:

          (a) ORGANIZATION STATUS. Borrower is (i) duly organized or
     incorporated, as applicable, under the laws of the state of its creation,
     (ii) in good standing under the laws of the state of its creation, and
     (iii) has stock outstanding which has been duly and validly issued, if
     applicable;

          (b) FINANCIAL STATEMENTS. The financial statements of Borrower and
     Guarantor heretofore delivered to Lender are true and correct in all
     respects, and fairly present the financial condition of the Borrower and
     Guarantor as of the dates thereof, and no material adverse change has
     occurred in the financial condition reflected therein since the dates
     thereof and no additional secured borrowings with respect to the Premises
     have been made by Borrower since the date thereof other than the borrowing
     contemplated hereby or approved by Lender;

          (c) AUTHORITY TO ENTER INTO LOAN DOCUMENTS. The Borrower and Guarantor
     have full authority to enter into the Loan Documents and consummate the
     transactions contemplated hereby, and the facts and matters expressed or
     implied in the opinions of their legal counsel are true and correct;

          (d) VALIDITY OF LOAN DOCUMENTS. The Loan Documents have been approved
     by those persons having proper authority, and to the best of Borrower's
     knowledge are in all respects legal, valid and binding according to their
     terms;

                                       14
<PAGE>

          (e) PRIORITY OF LIEN ON COLLATERAL. Except to the extent to secure the
     Indebtedness noted in Section 5(i), no chattel mortgage, bill of sale,
     security agreement, financing statement or other title retention agreement
     (except those executed in favor of Lender) has been or will be executed
     with respect to any Collateral as described in the Financing Statement,
     except as disclosed in the Intercreditor Agreement and Lender hereby
     acknowledges and agrees that notwithstanding any other provision contained
     herein the consummation of the lending transaction between any and all
     Borrowers or Guarantor and Congress Financial Corporation and SouthTrust
     Bank, as disclosed to Lender in the Intercreditor Agreement and the
     SouthTrust Bank agreements, as the case may be, will not and does not
     result in a default hereunder or under any of the other Loan Documents;

          (f) CONFLICTING TRANSACTIONS OF BORROWER. The consummation of the
     transaction hereby contemplated and the performance of the obligations of
     Borrower or Guarantor under and by virtue of the Loan Documents will not
     result in any breach of, or constitute a default under, any lease, bank
     loan or credit agreement, or other instrument to which Borrower or
     Guarantor is a party or by which it may be bound or affected;

          (g) TAXES. Borrower certifies that it has filed or caused to be filed
     all federal, state and other tax returns which, to the best of its
     knowledge, are required to be filed, and has paid or caused to be paid all
     taxes as shown on said returns or in any manner due to be paid (including,
     but not limited to, ad valorem and personal property taxes) or on any
     assessment received by it and not being contested in good faith, to the
     extent that such taxes have become due. Borrower further certifies that it
     has paid all other taxes, levies, and charges of any nature, including any
     governmental charges.

          (h) PENDING LITIGATION. There are no actions, suits or proceedings
     pending against Borrower, Guarantor or the Premises, or, to the knowledge
     of Borrower, circumstances which could lead to a verdict against Borrower
     or Guarantor in excess of Fifty Thousand and No/100 Dollars ($50,000.00),
     or involving the validity or enforceability of any of the Loan Documents,
     before or by any government authority, except actions, suits and
     proceedings which have been specifically disclosed to and approved by
     Lender in writing; and to Borrower's knowledge neither Borrower nor
     Guarantor is not in default with respect to any order, writ, injunction,
     decree or demand of any court or any governmental authority;

          (i) AVAILABILITY OF UTILITIES. All utility services necessary for the
     operation of the Improvements for their intended purpose are or will be
     available at the boundaries of the Premises, including water supply, storm
     and sanitary sewer facilities, and gas, electric, telephone and solid waste
     facilities, and Borrower has obtained all necessary permits and permissions
     required from governmental authorities for unrestricted access to and use
     of such services in connection with use of the Improvements;

          (j) CONDITION OF PREMISES. The Premises are not now damaged or injured
     as a result of any fire, explosion, accident, flood or other casualty;

          (k) CONTRACTS. Borrower (including any officer or partner of Borrower)
     has not as of the date hereof only made any contract or arrangement of any
     kind the performance of

                                       15
<PAGE>

     which by the other party thereto would give rise to a lien on the
     Premises. There have been no amendments or modifications to any of the
     contracts approved by Lender, except as approved by Lender; and
     there is in existence no default or grounds for default thereunder;

          (l) AVAILABILITY OF ROADS. To the best of Borrower's knowledge upon
     due inquiry and investigation, all roads necessary for the full utilization
     of the Improvements for their intended purposes have either been completed
     or the necessary rights of way therefor have either been acquired by the
     appropriate local authorities or have been dedicated to public use and
     accepted by such local authorities and all necessary steps have been taken
     by Borrower and such local authorities to assure the complete construction
     and installation thereof;

          (m) NO DEFAULT. There is no default on the part of Borrower under this
     Agreement, the Note or the Mortgage, and no event has occurred and is
     continuing which with notice, or the passage of time, or either, would
     constitute a default under any provision thereof; and

          (n) AGREEMENTS. Borrower shall comply with all the terms and
     conditions of the Agreement for Warrant and Intercreditor Agreement.

          (o) COMPLIANCE OF LAWS. The use of the Premises located in Blue
     Island, Illinois as a phenol production plant and the use of the Premises
     in Wilmington, North Carolina as a terminal facility do not violate (i) any
     applicable law, regulation, ordinance or order of any kind whatsoever
     (including any such laws relating to zoning, building and environmental
     protection), (ii) any permit or license issued with respect to the
     respective Premises, or (iii) any condition, easement, right-of-way,
     covenant or restriction affecting the Premises. To the best of Borrower's
     knowledge upon due inquiry and investigation, the Premises is in compliance
     with all applicable laws, regulations, ordinances and orders applicable
     thereto.

          (p) PERMITS. All necessary and required franchises, licenses,
     authorizations, registrations, permits and approvals for the use and
     occupancy of the Premises have been obtained from all Governmental
     Authorities having jurisdiction over the Premises as to permit the
     operation of the Premises as herein contemplated. Borrower has provided
     Lender with true and correct copies of all of the certificates of occupancy
     and other licenses, permits and approvals respecting the Premises, and such
     permits and approvals remain in full force and effect without modification
     or exception.

          (q) PHYSICAL CONDITION OF PREMISES. All of the Improvements are in
     good condition and repair. Borrower is aware of no latent or patent
     structural or other significant defect or deficiency in such Improvements.
     City water supply, storm and sanitary sewers, and electrical, gas and
     telephone facilities are available to each of the Premises within the
     boundary lines of the respective Premises, are sufficient to meet the
     reasonable needs of each of the Premises as now used or contemplated to be
     used, no other utility facilities are necessary to meet the reasonable
     needs of each of the Premises as now used, and design and as-built
     conditions of each of the Premises are such that

                                       16

<PAGE>

          surface and storm water does not accumulate on the respective Premises
          and does not drain the respective Premises across land of adjacent
          property owners. To the best of Borrower's knowledge upon due inquiry
          and investigation, no part of either Premises is within a flood plain
          and none of the Improvements create an encroachment over, across or
          upon any of the Premises boundary lines, rights-of-way or easements,
          and no building or other improvement on adjoining land create such an
          encroachment.

     5. ADDITIONAL COVENANTS OF BORROWER. Borrower covenants and agrees with
Lender as follows:

          (a) MAINTENANCE OF EXISTENCE. Each Borrower and Guarantor shall at all
     times preserve, renew and keep in full, force and effect its corporate
     existence and rights and franchises with respect thereto (other than
     pursuant to a merger or liquidation permitted hereunder) and maintain in
     full force and effect all MATERIAL Permits, licenses, trademarks,
     tradenames, approvals, authorizations, leases and contracts necessary to
     carry on the business as presently or proposed to be conducted. Each
     Borrower and Guarantor shall give Lender thirty (30) days prior written
     notice of any proposed change in its corporate name, which notice shall set
     forth the new name and each Borrower and Guarantor shall deliver to Lender
     a copy of the amendment to the certificate of incorporation of such
     Borrower or Guarantor providing for the name change certified by the
     Secretary of State of the jurisdiction of incorporation of such Borrower,
     Guarantor or Subsidiary as soon as it is available.

          (b) NEW COLLATERAL LOCATIONS. Each Borrower and Guarantor may open any
     new location within the continental United States provided such Borrower or
     Guarantor (a) gives Lender thirty (30) days prior written notice of the
     intended opening of any such new location and (b) executes and delivers, or
     causes to be executed and delivered, to Lender such agreements, documents,
     and instruments as Lender may deem reasonably necessary or desirable to
     protect its interests in the Collateral at such location. For purposes
     hereof, a "new location" shall mean any location of Collateral other than
     those set forth in the Information Certificate.

          (c) COMPLIANCE WITH LAWS, REGULATIONS, ETC. Each Borrower and
     Guarantor shall at all times, comply in all material respects with all
     laws, rules, regulations, licenses, Permits, approvals and orders
     applicable to it and duly observe all requirements of any Federal, State or
     local Governmental Authority, including ERISA, the Code, the Occupational
     Safety and Health Act of 1970, as amended, the Fair Labor Standards Act of
     1938, as amended, and all statutes, rules, regulations, orders, permits and
     stipulations relating to environmental pollution and employee health and
     safety, including all of the Environmental Laws.

          (d) PAYMENT OF TAXES AND CLAIMS. Each Borrower and Guarantor shall
     duly pay and discharge all taxes, assessments, contributions and
     governmental charges upon or against it or its properties or assets, except
     for taxes the validity of which are being contested in good faith by
     appropriate proceedings diligently pursued and available to such Borrower
     or Guarantor, as the case may be, and with respect to which adequate
     reserves have been set aside on its books. Each Borrower and Guarantor
     shall be liable

                                       17

<PAGE>

     for any tax or penalties imposed on Lender as a result of the financing
     arrangements provided for herein and each Borrower and Guarantor agrees to
     indemnify and hold Lender harmless with respect to the foregoing, and to
     repay to Lender on demand the amount thereof, and until paid by Borrowers
     such amount shall be added and deemed part of the Loans, PROVIDED, THAT,
     nothing contained herein shall be construed to require Borrowers or
     Guarantor to pay any income or franchise taxes attributable to the income
     of Lender from any amounts charged or paid hereunder to Lender. The
     foregoing indemnity shall survive the payment of the Obligations and the
     termination or non-renewal of this Agreement.

          (e) Intentionally Omitted.

          (f) FINANCIAL STATEMENTS AND OTHER INFORMATION.

               (i) Each Borrower and Guarantor shall, keep proper books and
          records in which true and complete entries shall be made of all
          dealings or transactions of or in relation to the Collateral and the
          business of Borrowers and Guarantor in accordance with GAAP and
          Borrowers and Guarantor shall promptly furnish to Lender all such
          financial and other information as Lender shall reasonably request
          relating to the Collateral and the assets, business and operations of
          Borrower and Guarantor, and to notify the auditors and accountants of
          Borrowers and Guarantor that Lender is authorized to obtain such
          information directly from them. Without limiting the foregoing,
          Borrowers and Guarantor shall each furnish or cause to be furnished to
          Lender, the following: (i) within thirty (30) days after the end of
          each fiscal month, (A) monthly unaudited consolidated financial
          statements, and unaudited consolidating financial statements for
          Guarantor and each Borrower (including in each case balance sheets,
          statements of income and loss, statements of cash flow, and statements
          of shareholders' equity), all in reasonable detail, fairly presenting
          the financial position and the results of the operations of Guarantor
          and each Borrower as of the end of and through such fiscal month,
          certified to be correct by the chief financial officer of each of
          Guarantor and each Borrower, subject to normal year-end adjustments
          and accompanied by a compliance certificate substantially in the form
          of Exhibit C hereto, and (B) monthly unaudited consolidated financial
          statements, and unaudited consolidating financial statements for
          Borrowers (including in each case balance sheets, statements of income
          and loss, statements of cash flow, and statements of shareholders'
          equity), all in reasonable detail, fairly presenting the financial
          position and the results of the operations of Borrowers as of the end
          of and through such fiscal month, certified to be correct by the chief
          financial officer of each of Borrowers, subject to normal year-end
          adjustments and accompanied by a compliance certificate substantially
          in the form and content acceptable to Lender along with a schedule in
          form reasonably satisfactory to Lender of the calculations used in
          determining, as of the end of such month, whether Borrowers were in
          compliance with the covenants set forth in Sections 5(i),5(k) and 5(n)
          and of this Agreement for such month; (ii) within forty-five (45) days
          after the end of each fiscal quarter, (A) quarterly unaudited
          consolidated financial statements of Guarantor and each Borrower
          (including in each case, balance sheets, statements

                                       18

<PAGE>

          of income and loss and statements of cash flow) and unaudited
          consolidating financial statements of each Borrower and Guarantor
          (including in each case, balance sheets, statements of income and loss
          and statements of cash flow), in each case all in reasonable detail,
          fairly presenting the financial position and the results of operations
          of Guarantor and each Borrower as of the end of and through such
          fiscal quarter, and (B) quarterly unaudited consolidated financial
          statements of Borrowers (including in each case, balance sheets,
          statements of income and loss and statements of cash flow) and
          unaudited consolidating financial statements of Borrowers (including
          in each case, balance sheets, statements of income and loss and
          statements of cash flow), in each case all in reasonable detail,
          fairly presenting the financial position and the results of operations
          of Borrowers as of the end of and through such fiscal quarter, and
          (iii) within ninety (90) days after the end of each fiscal year, (A)
          audited consolidated financial statements and audited consolidating
          financial statements of Guarantor and each Borrower (including in each
          case balance sheets, statements of income and loss, statements of cash
          flow and statements of shareholders' equity), and the accompanying
          notes thereto, all in reasonable detail, fairly presenting the
          financial position and the results of the operations of Guarantor and
          each Borrower as of the end of and for such fiscal year, together with
          the unqualified opinion of independent certified public accountants,
          which accountants shall be an independent accounting firm selected by
          Borrowers and Guarantor and reasonably acceptable to Lender, that such
          financial statements have been prepared in accordance with GAAP, and
          present fairly the results of operations and financial condition of
          Guarantor and each Borrower as of the end of and for the fiscal year
          then ended, and (B) audited consolidated financial statements and
          audited consolidating financial statements of Borrowers (including in
          each case balance sheets, statements of income and loss, statements of
          cash flow and statements of shareholders' equity), and the
          accompanying notes thereto, all in reasonable detail, fairly
          presenting the financial position and the results of the operations of
          Borrowers as of the end of and for such fiscal year, together with the
          unqualified opinion of independent certified public accountants, which
          accountants shall be an independent accounting firm selected by
          Borrowers and Guarantor and reasonably acceptable to Lender, that such
          financial statements have been prepared in accordance with GAAP, and
          present fairly the results of operations and financial condition of
          Borrowers as of the end of and for the fiscal year then ended.

               (ii) Borrowers and Guarantor shall promptly notify Lender in
          writing of the details of (i) any loss or damage that involves
          Collateral having a value in excess of $500,000, (ii) any action, suit
          or proceeding relating to Collateral having a value in excess of
          $500,000, (iii) any Material Contract of a Borrower or Guarantor being
          terminated or amended or any new Material Contract entered into (in
          which event such Borrower or Guarantor shall provide Lender with a
          copy of such Material Contract), (iv) any order, judgment or decree in
          excess of $1,000,000 shall have been entered against a Borrower or
          Guarantor or any of its properties or assets, (v) any notification of
          violation of laws or regulations received by a Borrower or Guarantor,
          (vi) any ERISA Event, and (vii) the

                                       19

<PAGE>

          occurrence of any Event of Default or act, condition or event which,
          with notice or the passage of time or giving of notice or both, would
          constitute an Event of Default.

               (iii) Borrowers and Guarantor shall promptly after the sending or
          filing thereof furnish or cause to be furnished to Lender copies of
          all reports which any Borrower or Guarantor sends to its stockholders
          generally and copies of all reports and registration statements which
          any Borrower or Guarantor files with the Securities and Exchange
          Commission, any national securities exchange or the National
          Association of Securities Dealers, Inc.

               (iv) Borrowers and Guarantor shall furnish or cause to be
          furnished to Lender such budgets, forecasts, projections and other
          information respecting the Collateral and the businesses of Borrowers
          and Guarantor, as Lender may, from time to time, reasonably request.
          Lender is hereby authorized to deliver a copy of any financial
          statement or any other information relating to the businesses of
          Borrowers and Guarantor to any court or other Governmental Authority
          or to any participant or assignee or prospective participant or
          assignee. Each Borrower and Guarantor hereby irrevocably authorizes
          and directs all accountants or auditors to deliver to Lender, at
          Borrowers' expense, copies of the financial statements of Borrowers
          and Guarantor and any reports or management letters prepared by such
          accountants or auditors on behalf of Borrowers and Guarantor and to
          disclose to Lender such information as they may have regarding the
          businesses of Borrowers and Guarantor. Any documents, schedules,
          invoices or other papers delivered to Lender may be destroyed or
          otherwise disposed of by Lender one (1) year after the same are
          delivered to Lender, except as otherwise designated by Borrowers to
          Lender in writing.

          (g) SALE OF ASSETS, CONSOLIDATION, MERGER, DISSOLUTIONS, ETC. In
     determining whether or not to make the Loan secured hereby, Lender examined
     the credit-worthiness of Borrower, found it acceptable and relied and
     continues to rely upon same as the means of repayment of the indebtedness
     secured hereby. Lender also evaluated the background and experience of
     Borrower in owning and operating property such as the Premises, found it
     acceptable and relied and continues to rely upon same as the means of
     maintaining the value of the Premises, which is Lender's security for the
     Loan. Borrower is an entity well-experienced in borrowing money and owning
     and operating property such as the Premises, was ably represented by a
     licensed attorney at law in the negotiation and documentation of the Loan
     secured hereby and bargained at arm's length and without duress of any kind
     for all of the terms and conditions of the Loan, including this provision.
     Borrower recognizes that Lender is entitled to keep its loan portfolio at
     current interest rates by either making new loans at such rates or
     collecting assumption fees and/or increasing the interest rate on a loan,
     the security for which is purchased by a party other than the original
     Borrower. Borrower further recognizes that any secondary or junior
     financing placed upon the Premises (a) may divert funds which would
     otherwise be used to pay the Note secured hereby; (b) could result in
     acceleration and foreclosure by any such junior encumbrancer which would
     force Lender to take measures and incur expenses to protect its security;
     (c) would detract from the value of the Premises should

                                       20
<PAGE>

     any such junior mortgagee come into possession thereof with the intention
     of selling same; and (d) impair Lender's right to accept a deed in lieu of
     foreclosure, as a foreclosure by Lender would be necessary to clear the
     title to the Premises.

     In accordance with the foregoing and for the purposes of (i) protecting
Lender's security both of repayment by Borrower and of value of the Premises;
(ii) giving Lender the full benefit of its bargain and contract with Borrower;
(iii) allowing Lender to raise the interest rate and/or collect assumption fees;
and (iv) keeping the Premises free of subordinate financing liens, Borrower
agrees that if this paragraph be deemed a restraint on alienation, that it is a
reasonable one and that, any sale, conveyance, assignment, further encumbrance
or other transfer of title to the Premises or any interest therein (whether
voluntarily or by operation of law) without Lender's prior written consent,
which may be withheld for any reason, shall be an event of default hereunder.
For the purpose of, and without limiting the generality of, the preceding
sentence, the occurrence at any time of any of the following events shall be
deemed to be an unpermitted transfer of title to the Premises and therefore an
event of default hereunder:

               (i) any sale, conveyance, assignment, or other transfer of or the
          grant of a security interest in, all or any part of the title to the
          Premises, except for Congress Financial Corporation's subordinate
          mortgage lien encumbering the Blue Island, Illinois property and
          except as permitted in the Note;

               (ii) any sale, conveyance, assignment or other transfer of any
          stock, or any other beneficial and/or equity ownership interest in
          Borrower;

               (iii) the incurrence by Borrower of any new or additional
          liabilities without the prior written consent of Lender, except as set
          forth in Section 5(i);

               (iv) except as otherwise set forth herein, (i) the sale, lease,
          exchange, conveyance or other disposition of all or substantially all
          of the Guarantor's property or business, or (ii) its merger into or
          consolidation with any other corporation (other than a wholly-owned
          subsidiary of the Guarantor), or (iii) any transaction (including a
          merger or other reorganization) or series of related transactions, in
          which more than 50% of the voting power of the Guarantor is disposed
          of.

               (v) merge into or with or consolidate with any other Person or
          permit any other Person to merge into or with or consolidate with it,
          EXCEPT, THAT, any Borrower or Guarantor may merge with and into or
          consolidate with any other Borrower or Guarantor, PROVIDED, THAT, each
          of the following conditions is satisfied as determined by Lender: (i)
          Lender shall have received not less than ten (10) Business Days' prior
          written notice of the intention of such Borrower or Guarantor to so
          merge or consolidate and such information with respect thereto as
          Lender may reasonably request, (ii) as of the effective date of the
          merger or consolidation and after giving effect thereto, no Event of
          Default or act, condition or event which with notice or passage of
          time or both would constitute an Event of Default, shall exist or have
          occurred, (iii) Lender shall have received, true, correct and complete
          copies of all agreements, documents and instruments

                                       21

<PAGE>

          relating to such merger, including, but not limited to, the
          certificate or certificates of merger as filed with each appropriate
          Secretary of State, (iv) the surviving entity shall, immediately
          before and immediately after giving effect to such transaction or
          series of transactions have a net worth (including, without
          limitation, any Indebtedness incurred or anticipated to be incurred in
          connection with or in respect of such transaction or series of
          transactions) equal to or greater than the net worth of each of the
          entities involved in such merger immediately prior to such transaction
          or series of transactions, (v) in the case of the merger of any
          Borrower, such Borrower as the surviving corporation shall expressly
          confirm, ratify and assume the Obligations and the Financing
          Agreements to which it is a party in writing, in form and substance
          satisfactory to Lender, and execute and deliver such other agreements,
          documents and instruments as Lender may request in connection
          therewith, and (vi) each Borrower and Guarantor shall ratify and
          confirm that its guarantees of the Obligations (and in the case of
          Borrowers, its joint and several liability, the guarantees of the
          Obligations of the other Borrowers) shall apply to the Obligations as
          assumed by such surviving entity;

               (vi) sell, assign, lease, transfer, abandon or otherwise dispose
          of any Capital Stock or Indebtedness to any other Person or any of the
          Collateral to any other Person EXCEPT as otherwise provided herein
          and, FOR,

                    (1) sales of Inventory in the ordinary course of business,

                    (2) the sale or other disposition of Equipment so long as
               (A) any proceeds are paid to Lender for application to the
               Obligations and (B) as of the date of such sale and after giving
               effect thereto, no Event of Default, or act, condition or event
               which with notice or passage of time or both would constitute an
               Event of Default shall exist or have occurred,

                    (3) the issuance and sale by Guarantor of Capital Stock
               after the date hereof; PROVIDED, THAT, (A) Lender shall have
               received not less than ten (10) Business Days' prior written
               notice of such issuance and sale by Guarantor, which notice shall
               specify the parties to whom such shares are to be sold, the terms
               of such sale, the total amount which it is anticipated will be
               realized from the issuance and sale of such stock and the net
               cash proceeds which it is anticipated will be received by such
               Borrower or Guarantor, as the case may be, from such sale, (B)
               Guarantor shall not be required to pay any cash dividends or
               repurchase or redeem such Capital Stock or make any other
               payments in respect thereof, except to the extent such dividends,
               or repurchases or redemptions are otherwise permitted under
               Section 5(k) hereof, (C) the terms of such Capital Stock, and the
               terms and conditions of the purchase and sale thereof, shall not
               include any terms that include any limitation on the right of
               Borrowers to request or receive Loans or Letter of Credit
               Accommodations or the right of Borrowers to amend or modify any
               of the terms and conditions of this Agreement or any of the other
               Financing Agreements or otherwise in any

                                       22

<PAGE>

               way relate to or affect the arrangements of Borrowers with Lender
               or are more restrictive or burdensome to Borrowers than the terms
               of any Capital Stock in effect on the date hereof, (D) any
               proceeds payable to Guarantor in connection with the issuance and
               sale of such Capital Stock shall be paid to Lender for
               application to the Obligations, and (E) as of the date of such
               issuance and sale and after giving effect thereto, no Event of
               Default or act, condition or event which with notice or passage
               of time or both would constitute an Event of Default shall exist
               or have occurred;

                    (vii) the issuance of Capital Stock of any Borrower or
          Guarantor consisting of common stock pursuant to a stock option plan
          or 401(k) plan of such Borrower or Guarantor for the benefit of its
          employees, directors and consultants, provided, that, in no event
          shall such Borrower or Guarantor be required to issue, or shall such
          Borrower or Guarantor issue, Capital Stock pursuant to such stock
          option plan or 401(k) plan which would result in a Change of Control
          or other Event of Default;

                    (1) form or acquire any subsidiaries other than those
               listed on the Information Certificates; and

                    (2) agree to do any of the foregoing (unless such agreement
               has been consented to in writing by Lender or includes as a
               condition to the effectiveness of such agreement that Lender's
               consent thereto be obtained).

     Any consent by Lender, or any waiver of an event of default, under this
Paragraph shall not constitute a consent to, or waiver of any right, remedy or
power of Lender upon a subsequent event of default under this Paragraph.

          (h) ENCUMBRANCES. Each Borrower and Guarantor shall not create, incur,
     assume or suffer to exist any security interest, mortgage, pledge, lien,
     charge or other encumbrance of any nature whatsoever on the Premises or
     Collateral, EXCEPT:

               (i) liens and security interests of Lender;

               (ii) liens securing the payment of taxes, either not yet overdue
          or the validity of which are being contested in good faith by
          appropriate proceedings diligently pursued and available to such
          Borrower or Guarantor and with respect to which adequate reserves have
          been set aside on its books;

               (iii) non-consensual statutory liens (other than liens securing
          the payment of taxes) arising in the ordinary course of such
          Borrower's or Guarantor's business to the extent: (A) such liens
          secure indebtedness which is not overdue or (B) such liens secure
          indebtedness relating to claims or liabilities which are fully insured
          and being defended at the sole cost and expense and at the sole risk
          of the insurer or being contested in good faith by appropriate
          proceedings diligently pursued and available to such Borrower or
          Guarantor, in

                                       23

<PAGE>

          each case prior to the commencement of foreclosure or other similar
          proceedings and with respect to which adequate reserves have been set
          aside on its books;

               (iv) zoning restrictions, easements, licenses, covenants and
          other restrictions affecting the use of real property which do not
          interfere in any material respect with the use of such real property
          or ordinary conduct of the business of such Borrower or Guarantor as
          presently conducted thereon or materially impair the value of the real
          property which may be subject thereto;

               (v) purchase money security interests in Equipment (including
          Capital Leases) and purchase money mortgages on real property, in each
          case, acquired after the date hereof so long as such security
          interests and mortgages do not apply to any property of a Borrower or
          Guarantor other than the Equipment or real property so acquired, and
          the Indebtedness secured thereby does not exceed the cost of the
          Equipment or real property so acquired, as the case may be;

               (vi) pledges and deposits of cash by any Borrower or Guarantor
          after the date hereof in the ordinary course of business in connection
          with workers' compensation, unemployment insurance and other types of
          social security benefits consistent with the practices of Borrowers
          and Guarantor as of the date hereof;

               (vii) pledges and deposits of cash by Borrowers after the date
          hereof to secure the performance of tenders, bids, leases, trade
          contracts (other than for the repayment of Indebtedness), and other
          similar obligations in each case in the ordinary course of business
          consistent with the practices of Borrowers and Guarantor as of the
          date hereof; provided, that, in connection with any performance bonds
          issued by a surety or other person, the issuer of such bond shall have
          waived in writing any rights in or to, or other interest in, any of
          the Collateral in an agreement, in form and substance reasonably
          satisfactory to Lender;

               (viii) liens arising from (A) operating leases and the
          precautionary UCC financing statement filings or registrations in
          respect thereof and (B) equipment or other materials which are not
          owned by a Borrower located on the premises of such Borrower (but not
          in connection with, or as part of, the financing thereof) from time to
          time in the ordinary course of business and consistent with current
          practices of Borrowers in and the precautionary UCC financing
          statement filings in respect thereof;

               (ix) liens and security interests set forth on Schedule 5(h)(ix)
          attached.

               (x) liens and security interests on the Collateral in favor of
          Congress Financial Corporation to secure the Indebtedness of, among
          others, Borrowers and Guarantor to Congress Financial Corporation
          permitted under Section 5(i) below; and

                                       24

<PAGE>

               (xi) liens and security interests on the real property of
          Guarantor in favor of the SouthTrust Bank to secure the Indebtedness
          of, among others, Borrowers and Guarantor to SouthTrust permitted
          under Section 5(i) below.

          (i) INDEBTEDNESS. Each Borrower and Guarantor shall not incur, create,
     assume, become or be liable in any manner with respect to, or permit to
     exist, any Indebtedness, except for:

               (i) the Obligations;

               (ii) purchase money Indebtedness (including Capital Leases)
          arising after the date hereof to the extent secured by purchase money
          security interests in Equipment (including Capital Leases) and
          purchase money mortgages on real estate not to exceed $500,000 in the
          aggregate at any time outstanding so long as such security interests
          and mortgages do not apply to any property of such Person other than
          the Equipment or real estate so acquired, and the Indebtedness secured
          thereby does not exceed the cost of the Equipment or real estate so
          acquired, as the case may be;

               (iii) unsecured Indebtedness of a Borrower to any other Borrower
          arising after the date hereof pursuant to loans by such Borrower to
          such other Borrower to the extent permitted under Section 5(j)(iv)
          hereof;

               (iv) unsecured Indebtedness of a Borrower to any Guarantor
          arising after the date hereof pursuant to loans by such Guarantor to
          such Borrower to the extent permitted under Section 5(j)(v) hereof;

               (v) unsecured Indebtedness of a Guarantor or a Subsidiary of any
          Guarantor or any Borrower (other than a Borrower) to any Borrower
          arising after the date hereof pursuant to loans by such Borrower to
          such Guarantor or a Subsidiary of such Guarantor to the extent
          permitted under Section 5(j)(vi) hereof,

               (vi) Indebtedness of any Subsidiary of Guarantor, other than
          Borrowers and Guarantor, PROVIDED, THAT, (i) as to any such
          Indebtedness, Borrowers and Guarantor shall not be directly or
          indirectly liable (by virtue of such Borrower or Guarantor being the
          primary obligor on, guarantor of, or otherwise liable in any respect
          of such Indebtedness), and (ii) the occurrence of a default with
          respect thereto shall not result in, or permit any holder of any
          Indebtedness of any Borrower or Guarantor to declare a default on
          Indebtedness of any Borrower or Guarantor or cause the payment thereof
          to be accelerated or payable prior to its stated maturity;

               (vii) Indebtedness of Borrowers, Guarantor or any of their
          respective Subsidiaries under swap agreements, cap agreements, collar
          agreements, exchange agreements, futures or forward hedging contracts
          or similar contractual arrangements intended to protect a Person
          against fluctuations in interest rates, currency exchange rates or the
          price of raw materials used or produced in the

                                       25

<PAGE>

          business of any Borrower; PROVIDED, THAT, such arrangements are with
          banks or other financial institutions that have combined capital and
          surplus and undivided profits of not less than US$250,000,000 and are
          not for speculative purposes and such Indebtedness shall be unsecured;

               (viii) Indebtedness of Borrowers to Congress Financial
          Corporation ("Revolving Loan Lender") evidenced by or arising under
          the Revolving Loan Lender Agreements (as in effect on the date
          hereof), PROVIDED, THAT:

                    (a) the aggregate principal amount of such Indebtedness
               shall not exceed $20,000,000, less the aggregate amount of all
               repayments, repurchases or redemptions thereof, whether optional
               or mandatory, plus interest thereon at the applicable rates
               provided in the Revolving Loan Lender agreements in effect on the
               date hereof,

                    (b) as of the date hereof, no default or event of default,
               or event which with notice or passage of time or both would
               constitute an event of default exists or has occurred under any
               of the Revolving Loan Lender agreements;

                    (c) Borrowers and Guarantor shall not, directly or
               indirectly, make, or be required to make, any payments in respect
               of such Indebtedness, EXCEPT, THAT, Borrowers may make regularly
               scheduled payments of principal, interest and fees, on an
               unaccelerated basis, in respect of such Indebtedness in
               accordance with the terms of the Revolving Loan Lender agreements
               as in effect on the date hereof;

                    (d) Borrowers and Guarantor shall not, directly or
               indirectly, amend, modify, alter or change any of the material
               terms of such Indebtedness or any of the Revolving Loan Lender
               agreements as in effect on the date hereof, EXCEPT, THAT,
               Borrowers may, after prior written notice to Lender, amend,
               modify, alter or change the terms thereof so as to extend the
               maturity thereof or defer the timing of any payments in respect
               thereof, or to forgive or cancel any portion of such Indebtedness
               other than pursuant to payments thereof, or to reduce the
               interest rate or any fees in connection therewith, or to make the
               provisions thereof less restrictive or burdensome than the terms
               or conditions of the Revolving Loan Lender agreements as in
               effect on the date hereof; and

                    (e) Borrowers shall furnish to Lender all notices or demands
               in connection with such Indebtedness either received by any
               Borrower or Guarantor or on its behalf promptly after the

                                       26

<PAGE>

               receipt thereof, or sent by any Borrower or Guarantor or on its
               behalf concurrently with the sending thereof, as the case may be;

               (ix) Indebtedness of Borrowers and Guarantor to SouthTrust Bank
          evidenced by or arising under the SouthTrust Bank agreements (as in
          effect on the date hereof), PROVIDED, THAT:

                    (a) the aggregate principal amount of such Indebtedness
               shall not exceed $1,885,000.00, less the aggregate amount of all
               repayments, repurchases or redemptions thereof, whether optional
               or mandatory, plus interest thereon at the applicable rates
               provided in the SouthTrust Bank agreements in effect on the date
               hereof,

                    (b) as of the date hereof, no default or event of default,
               or event which with notice or passage of time or both would
               constitute an event of default exists or has occurred under any
               of the SouthTrust Bank agreements;

                    (c) Borrowers and Guarantor shall not, directly or
               indirectly, make, or be required to make, any payments in respect
               of such Indebtedness, EXCEPT, THAT, Borrowers may make regularly
               scheduled payments of principal, interest and fees, on an
               unaccelerated basis, in respect of such Indebtedness in
               accordance with the terms of the SouthTrust Bank agreements as in
               effect on the date hereof;

                    (d) Borrowers and Guarantor shall not, directly or
               indirectly, amend, modify, alter or change any of the material
               terms of such Indebtedness or any of the SouthTrust Bank
               agreements as in effect on the date hereof, EXCEPT, THAT,
               Borrowers may, after prior written notice to Lender, amend,
               modify, alter or change the terms thereof so as to extend the
               maturity thereof or defer the timing of any payments in respect
               thereof, or to forgive or cancel any portion of such Indebtedness
               other than pursuant to payments thereof, or to reduce the
               interest rate or any fees in connection therewith, or to make the
               provisions thereof less restrictive or burdensome than the terms
               or conditions of the SouthTrust Bank agreements as in effect on
               the date hereof; and

                    (e) Borrowers shall furnish to Lender all notices or demands
               in connection with such Indebtedness either received by any
               Borrower or Guarantor or on its behalf promptly after the receipt
               thereof, or sent by any Borrower or Guarantor or on its behalf
               concurrently with the sending thereof, as the case may be;

               (x) Indebtedness of Borrowers or Guarantor evidenced by or
          arising under the Subordinated Notes (as in effect on the date
          hereof), PROVIDED, THAT:

                                       27

<PAGE>

                    (a) the aggregate principal amount of such Indebtedness
               shall not exceed $200,000.00, less the aggregate amount of all
               repayments, repurchases or redemptions thereof, whether optional
               or mandatory, plus interest thereon at the applicable rates
               provided in the Subordinated Notes in effect on the date hereof,

                    (b) as of the date hereof, no default or event of default,
               or event which with notice or passage of time or both would
               constitute an event of default exists or has occurred under any
               of the Subordinated Notes;

                    (c) such Indebtedness is and shall remain unsecured;

                    (d) such Indebtedness is, in all respects, subject to, and
               subordinate in right of payment to, the right of Lender to
               receive the prior indefeasible payment and satisfaction in full
               of all of the Obligations;

                    (e) Borrowers shall not, directly or indirectly, make, or be
               required to make, any payments in respect of such Indebtedness;

                    (f) Borrowers shall not, directly or indirectly, (A) amend,
               modify, alter or change any of the material terms of such
               Indebtedness or any of the Subordinated Notes as in effect on the
               date hereof, EXCEPT, THAT, Borrowers may, after prior written
               notice to Lender, amend, modify, alter or change the terms
               thereof so as to extend the maturity thereof or defer the timing
               of any payments in respect thereof, or to forgive or cancel any
               portion of such Indebtedness other than pursuant to payments
               thereof, or to reduce the interest rate or any fees in connection
               therewith, or to make the provisions thereof less restrictive or
               burdensome than the terms or conditions of the Subordinated Notes
               as in effect on the date hereof, or (B) make optional prepayments
               of principal or redeem, retire, defease, purchase or otherwise
               acquire such Indebtedness, or set aside or otherwise deposit or
               invest any sums for such purpose, and

                    (g) Borrowers shall furnish to Lender all notices or demands
               in connection with such Indebtedness either received by any
               Borrower or Guarantor or on its behalf promptly after the receipt
               thereof, or sent by any Borrower or Guarantor or on its behalf
               concurrently with the sending thereof, as the case may be; and

               (xi) the unsecured Indebtedness of Borrowers, Guarantor and their
          Subsidiaries set forth on Schedule 5(xi) hereto; PROVIDED, THAT, (i)
          the Borrower, Guarantor or Subsidiary obligated on such Indebtedness
          may only make regularly

                                       28
<PAGE>

          scheduled or other mandatory payments of principal and interest in
          respect of such Indebtedness in accordance with the terms of the
          agreement or instrument evidencing or giving rise to such Indebtedness
          as in effect on the date hereof, (ii) Borrowers, Guarantor and
          Subsidiaries shall not, directly or indirectly, (A) amend, modify,
          alter or change the terms of such Indebtedness or any agreement,
          document or instrument related thereto as in effect on the date hereof
          EXCEPT, THAT, Borrowers may, after prior written notice to Lender,
          amend, modify, alter or change the terms thereof so as to extend the
          maturity thereof, or defer the timing of any payments in respect
          thereof, or to forgive or cancel any portion of such Indebtedness
          (other than pursuant to payments thereof), or to reduce the interest
          rate or any fees in connection therewith, or (B) redeem, retire,
          defease, purchase or otherwise acquire such Indebtedness, or set aside
          or otherwise deposit or invest any sums for such purpose, and (iii)
          Borrowers and Guarantor shall furnish to Lender all notices or demands
          in connection with such Indebtedness either received by a Borrower or
          Guarantor or on its behalf, promptly after the receipt thereof, or
          sent by a Borrower or Guarantor or on its behalf, concurrently with
          the sending thereof, as the case may be.

               (xii) the Indebtedness set forth on Schedule 5(h)(ix) attached
          hereto; provided, that, (i) Borrowers may only make regularly
          scheduled payments of principal and interest in respect of such
          Indebtedness in accordance with the terms of the agreement or
          instrument evidencing or giving rise to such Indebtedness as in effect
          on the date hereof, (ii) Borrowers shall not, directly or indirectly,
          (A) amend, modify, alter or change the terms of such Indebtedness or
          any agreement, document or instrument related thereto as in effect on
          the date hereof except, that, Borrowers may, after prior written
          notice to Lender, amend, modify, alter or change the terms thereof so
          as to (1) extend the maturity thereof, or (2) defer the timing of any
          payments in respect thereof, or to forgive or cancel any portion of
          such Indebtedness (other than pursuant to payments thereof), or (3)
          reduce the interest rate or any fees in connection therewith, (4) make
          any covenants contained therein less restrictive or burdensome as to
          such Borrower, or (B) redeem, retire, defease, purchase or otherwise
          acquire such Indebtedness, or set aside or otherwise deposit or invest
          any sums for such purpose (except with the proceeds of Refinancing
          Indebtedness with respect thereto), and (iii) Borrowers shall furnish
          to Lender all material notices or demands in connection with such
          Indebtedness either received by Borrower or on its behalf, promptly
          after the receipt thereof, or sent by such Borrower or on its behalf,
          concurrently with the sending thereof, as the case may be; and

               (xiii) Indebtedness of any Borrower, Guarantor or its
          Subsidiaries arising pursuant to loans permitted under Section 5(j)
          hereof.

          (j) LOANS, INVESTMENTS, GUARANTEES, ETC. Each Borrower and Guarantor
     shall not directly or indirectly, make any loans or advance money or
     property to any Person, or invest in (by capital contribution, dividend or
     otherwise) or purchase or repurchase the Capital Stock or Indebtedness or
     all or a substantial part of the assets or property of any person, or
     guarantee, assume, endorse, or otherwise become responsible for (directly
     or

                                       29

<PAGE>

     indirectly) the Indebtedness, performance, obligations or dividends of any
     Person, or form or acquire any Subsidiaries or agree to do any of the
     foregoing, EXCEPT:

               (i) the endorsement of instruments for collection or deposit in
          the ordinary course of business;

               (ii) investments in cash or Cash Equivalents, PROVIDED, THAT, (i)
          no Loans are then outstanding and (ii) as to any of the foregoing,
          unless waived in writing by Lender, each Borrower and Guarantor shall
          take such actions as are deemed necessary by Lender to perfect the
          security interest of Lenders in such investments;

               (iii) guarantees by each Borrower and Guarantor of the
          Obligations of any Borrower in favor of Lender;

               (iv) loans by a Borrower, Guarantor or any Subsidiary of a
          Borrower or Guarantor to a Borrower, Guarantor or Subsidiary of a
          Borrower or Guarantor after the last day of the month immediately
          prior to the date hereof, provided, that,

                    (a) as to all of such loans, (A) within forty-five (45) days
               after the end of each fiscal month, Borrowers shall provide to
               Lender a report in form and substance satisfactory to Lender of
               the outstanding amount of such loans as of the last day of the
               immediately preceding month and indicating any loans made and
               payments received during the immediately preceding month, (B) the
               Indebtedness arising pursuant to any such loan shall not be
               evidenced by a promissory note or other instrument, unless the
               single original of such note or other instrument is promptly
               delivered to Lender upon its request to hold as part of the
               Collateral, with such endorsement and/or assignment by the payee
               of such note or other instrument as Lender may require, (C) as of
               the date of any such loan and after giving effect thereto, the
               Borrower or Guarantor making such loan shall be Solvent, and (D)
               as of the date of any such loan and after giving effect thereto,
               no Default or Event of Default shall exist or have occurred and
               be continuing,

                    (b) as to loans by a Guarantor or any Subsidiary of a
               Guarantor (other than a Borrower) to a Borrower, (A) the
               Indebtedness arising pursuant to such loan shall be subject to,
               and subordinate in right of payment to, the right of Lender to
               receive the prior final payment and satisfaction in full of all
               of the Obligations on terms and conditions acceptable to Lender,
               (B) promptly upon Lender's request, Lender shall have received a
               subordination agreement, in form and substance satisfactory to
               Lender, providing for the terms of the subordination in right of
               payment of such Indebtedness of such Borrower to the prior final

                                       30

<PAGE>

               payment and satisfaction in full of all of the Obligations, duly
               authorized, executed and delivered by such Guarantor or
               Subsidiary (as the case may be) and such Borrower, and (C) such
               Borrower shall not, directly or indirectly make, or be required
               to make, any payments in respect of such Indebtedness;

                    (c) INTENTIONALLY OMITTED;

                    (d) as to such loans by a Guarantor or any Subsidiary of a
               Guarantor (other than a Borrower) to a Subsidiary of Guarantor
               (other than Borrowers and Guarantor) in no event shall the
               aggregate amount of all such loans exceed $12,000,000.00;

                    (e) as to such loans by a Subsidiary of a Guarantor (other
               than a Borrower) to a Guarantor, (A) the Indebtedness arising
               pursuant to such loan shall be subject to, and subordinate in
               right of payment to, the right of Lender to receive the prior
               final payment and satisfaction in full of all of the Obligations
               on terms and conditions acceptable to Lender, and (B) promptly
               upon Lender's request, Lender shall have received a subordination
               agreement, in form and substance satisfactory to Lender,
               providing for the terms of the subordination in right of payment
               of such Indebtedness of such Guarantor to the prior final payment
               and satisfaction in full of all of the Obligations, duly
               authorized, executed and delivered by such Subsidiary and such
               Guarantor;

                    (f) subject to Section 5(j)(iv) above and Section 5(l)
               below, any Borrower or Guarantor (or any of their respective
               Subsidiaries) may acquire and hold receivables owing to them in
               the ordinary course of business and payable or dischargeable in
               accordance with customary trade terms;

               (v) the existing equity investments of Borrowers, Guarantor and
          their Subsidiaries as of the date hereof in their respective
          Subsidiaries, provided, that, Borrowers and Guarantor shall have no
          further obligations or liabilities to make any capital contributions
          or other additional investments or other payments to or in or for the
          benefit of any of such Subsidiaries;

               (vi) stock or obligations issued to any Borrower or Subsidiary by
          any Person (or the representative of such Person) in respect of
          Indebtedness of such Person owing to any Borrower or Subsidiary in
          connection with the insolvency, bankruptcy, receivership or
          reorganization of such Person or a composition or readjustment of the
          debts of such Person; provided, that, prior to an Event of Default, if
          the amount or value thereof is greater than $100,000.00, and after an
          Event of Default, regardless of the amount or value thereof, the
          original of any such stock or instrument evidencing such obligations
          to a Borrower, Guarantor or any Subsidiary shall be promptly delivered
          to Lender, upon Lender's request,

                                       31

<PAGE>

          together with such stock power, assignment or endorsement by such
          Borrower or as Lender may request;

               (vii) obligations of account debtors to any Borrower or
          Subsidiary arising from Accounts which are past due evidenced by a
          promissory note made by such account debtor payable to such Borrower
          or Subsidiary, as the case may be; provided, that, prior to an Event
          of Default, if the amount of such note is greater than $250,000.00,
          and after an Event of Default, regardless of the amount thereof,
          promptly upon the receipt of the original of any such promissory note
          by a Borrower to a Borrower, Guarantor or any Subsidiary such
          promissory note shall be endorsed to the order of Lender by such
          Borrower to a Borrower, Guarantor or any Subsidiary and promptly
          delivered to Lender as so endorsed;

               (viii) loans or advances by any Borrower, Guarantor or any of
          their respective Subsidiaries to any of its employees, after the date
          hereof, not to exceed the principal amount of $25,000.00 in the
          aggregate at any time outstanding in the ordinary course of such
          Borrower's, Guarantor's or Subsidiary's business for reasonable and
          necessary work-related travel and other ordinary business expenses to
          be incurred by such employees in connection with their employment with
          such Borrower, Guarantor or Subsidiary, as the case may be;

               (ix) unsecured guarantees by any Borrower or Guarantor of the
          Indebtedness of any Borrower, Guarantor or any of their respective
          Subsidiaries permitted under Section 5(i)(ii) hereof;

               (x) any investments of any Borrower, Guarantor or any of their
          respective Subsidiaries in swap agreements, cap agreements, collar
          agreements, exchange agreements futures or forward hedging contracts
          or similar contractual arrangements intended to protect a Person
          against fluctuations in interest rates, currency exchange rates or the
          price of raw materials and other chemical products used or produced in
          the business of any Borrower; provided, that, such arrangements are
          with banks or other financial institutions that have combined capital
          and surplus and undivided profits of not less than the $250,000,000
          and are not for speculative purposes and are unsecured;

               (xi) the guarantee by Guarantor in favor of SASOL North America
          Inc. with respect to the obligations of JLM Marketing, Inc. to SASOL
          North America Inc. pursuant to the terms of the Asset Purchase
          Agreement, dated May 23, 2001, by and among Guarantor, Marketing and
          SASOL North America Inc. (as in effect on the date hereof);

               (xii) the existing loans, advances and guarantees set forth on
          Schedule 5(j)(xii) hereto, provided, that, as to such loans, advances
          and guarantees, (i) Borrowers or Guarantor, as the case may be, shall
          not, directly or indirectly, amend, modify, alter or change in any
          material respect the terms of such loans, advances or guarantees or
          any agreement, document or instrument related thereto,

                                       32

<PAGE>

          or as to such guarantees, redeem, retire, defease, purchase or
          otherwise acquire such guarantee or set aside or otherwise deposit or
          invest any sums for such purpose (except as expressly required
          pursuant to the terms thereof or pursuant to regularly scheduled
          payments permitted herein) and (ii) Borrowers shall furnish to Lender
          all notices or demands in connection with such loans, advances or
          guarantees received by a Borrower, Guarantor or Subsidiary or on its
          behalf, promptly after the receipt thereof.

          (k) DIVIDENDS AND REDEMPTIONS. Each Borrower and Guarantor shall not
     directly or indirectly, declare or pay any dividends on account of any
     shares of class of Capital Stock of such Borrower or Guarantor now or
     hereafter outstanding, or set aside or otherwise deposit or invest any sums
     for such purpose, or redeem, retire, defease, purchase or otherwise acquire
     any shares of any class of Capital Stock (or set aside or otherwise deposit
     or invest any sums for such purpose) for any consideration or apply or set
     apart any sum, or make any other distribution (by reduction of capital or
     otherwise) in respect of any such shares or agree to do any of the
     foregoing, except, that any Borrower or Guarantor may pay dividends or may
     redeem or repurchase any of its Capital Stock for consideration consisting
     of common stock.

          (l) TRANSACTIONS AND AFFILIATES. Each Borrower and Guarantor shall not
     directly or indirectly:

               (i) purchase, acquire or lease any property from, or sell,
          transfer or lease any property to, any officer, employee, shareholder,
          director, agent or any other Affiliate, except (i) in the ordinary
          course of and pursuant to the reasonable requirements of such
          Borrower's, Guarantor's or Subsidiary's business (as the case may be)
          and upon fair and reasonable terms no less favorable to such Borrower,
          Guarantor or Subsidiary than it would obtain in a comparable arm's
          length transaction with a person that is not an Affiliate , (ii) the
          loans and advances permitted by Sections 5(j)(iv) hereof and (iii)
          accounts receivable of Borrowers in respect of which any Subsidiary of
          Borrowers or any Guarantor is the account debtor (the "Intercompany
          Accounts Receivable"), provided, that, (A) as of the date of the
          creation of any such Intercompany Account Receivable and after giving
          effect thereto, no Event of Default or act, condition or event which
          with notice or passage of time or both would constitute an Event of
          Default shall exist or have occurred, and Intercompany Accounts
          Receivable outstanding at anytime shall not, at any time exceed
          $1,500,000.00; or

               (ii) make any payments of management, consulting or other fees
          for management or similar services, or of any Indebtedness owing to
          any officer, employee, shareholder, director or any other Affiliate of
          any Borrower or Guarantor except (i) reasonable compensation to
          officers, employees and directors for services rendered to such
          Borrower, Guarantor or Subsidiary, as the case may be, in the ordinary
          course of business, and (ii) payments by a Borrower to any other
          Borrower in respect of Indebtedness arising pursuant to loans made by
          such Borrower to the extent such Indebtedness is permitted under
          Section 5(i) hereof.

                                       33

<PAGE>

          (m) COMPLIANCE WITH ERISA. Each Borrower shall cause each of its ERISA
     Affiliates to: (a) maintain each Plan in compliance in all material
     respects with the applicable provisions of ERISA, the Code and other
     Federal and State law; (b) cause each Plan which is qualified under Section
     401(a) of the Code to maintain such qualification; (c) not terminate any of
     such Plans so as to incur any liability to the Pension Benefit Guaranty
     Corporation; (d) not allow or suffer to exist any prohibited transaction
     involving any of such Plans or any trust created thereunder which would
     subject Borrower or such ERISA Affiliate to a tax or penalty or other
     liability on prohibited transactions imposed under Section 4975 of the Code
     or ERISA; (e) make all required contributions to any Plan which it is
     obligated to pay under Section 302 of ERISA, Section 412 of the Code or the
     terms of such Plan; (f) not allow or suffer to exist any accumulated
     funding deficiency, whether or not waived, with respect to any such Plan;
     or (g) allow or suffer to exist any occurrence of a reportable event or any
     other event or condition which presents a material risk of termination by
     the Pension Benefit Guaranty Corporation of any such Plan that is a single
     employer plan, which termination could result in any liability to the
     Pension Benefit Guaranty Corporation.

          (n) ADJUSTED TANGIBLE NET WORTH. Borrowers and JLM Marketing, Inc. on
     a consolidated basis, shall at all times maintain Adjusted Tangible Net
     Worth of not less than $16,000,000.00.

          (o) END OF FISCAL YEARS: FISCAL QUARTERS. Guarantor shall, for
     financial reporting purposes, cause its, (a) fiscal years to end on
     December 31 of each year and (b) fiscal quarters to end on March 31, June
     30, September 30 and December 31 of each year.

          (p) CHANGE IN BUSINESS. Guarantor and its Subsidiaries shall not
     engage in any business other than the businesses of Guarantor and its
     Subsidiaries on the date hereof and any business reasonably related,
     ancillary or complimentary to the business in which Guarantor and its
     Subsidiaries are engaged on the date hereof.

          (q) LIMITATION OF RESTRICTIONS AFFECTING SUBSIDIARIES. Each Borrower
     and Guarantor shall not, directly, or indirectly, create or otherwise cause
     or suffer to exist any encumbrance or restriction which prohibits or limits
     the ability of any Subsidiary of such Borrower or Guarantor to (a) pay
     dividends or make other distributions or pay any Indebtedness owed to such
     Borrower, Guarantor or any Subsidiary of such Borrower or Guarantor; (b)
     make loans or advances to such Borrower, Guarantor or any Subsidiary of
     such Borrower or Guarantor, (c) transfer any of its properties or assets to
     such Borrower, Guarantor or any Subsidiary of such Borrower or Guarantor;
     or (d) create, incur, assume or suffer to exist any lien upon any of its
     property, assets or revenues, whether now owned or hereafter acquired,
     other than encumbrances and restrictions arising under (i) applicable law,
     (ii) this Agreement, (iii) customary provisions restricting subletting or
     assignment of any lease governing a leasehold interest of such Borrower,
     Guarantor or any of its Subsidiaries, (iv) customary restrictions on
     dispositions of real property interests found in reciprocal easement
     agreements of such Borrower, Guarantor or its Subsidiary, (v) any agreement
     relating to permitted Indebtedness incurred by a Subsidiary of such
     Borrower or Guarantor prior to the date on which such Subsidiary was
     acquired by such Borrower or Guarantor and outstanding on such acquisition
     date, and (vi) the

                                       34

<PAGE>

     extension or continuation of contractual obligations in existence on the
     date hereof; provided, that, any such encumbrances or restrictions
     contained in such extension or continuation are no less favorable to Lender
     than those encumbrances and restrictions under or pursuant to the
     contractual obligations so extended or continued.

          (r) FURTHER ASSURANCES. At the request of Lender at any time and from
     time to time, each Borrower and Guarantor shall, at its expense, duly
     execute and deliver, or cause to be duly executed and delivered, such
     further agreements, documents and instruments, and do or cause to be done
     such further acts as may be necessary or proper to evidence, perfect,
     maintain and enforce the security interests and the priority thereof in the
     Collateral and to otherwise effectuate the provisions or purposes of this
     Agreement or any of the other Financing Agreements. Where permitted by law,
     each Borrower and Guarantor hereby authorizes Lender to execute and file
     one or more UCC financing statements signed only by Lender.

          (s) CONSTRUCTION LIENS. Borrower will allow no work or construction to
     be commenced on the Land, or goods specially fabricated for incorporation
     therein, which has not been fully paid for prior to the recording of the
     Mortgage which could constitute a lien on the Premises, and (ii) will
     comply with all provisions of the any applicable construction lien law,
     including but not limited to, payment and notice provisions contained
     therein. Borrower shall save and hold Lender harmless from the claims of
     any construction lien or equitable lien and pay promptly upon demand any
     loss or losses which Lender may incur as a result of the filing of any such
     lien, including the reasonable cost of defending same and the Lender's
     reasonable attorneys' fees in connection therewith.

          (t) DEBT SERVICE COVERAGE RATIO REQUIREMENTS. Based on the
     consolidated financial statements, the Group must exhibit and maintain at
     all times a minimum Debt Service Coverage Ratio of no less than 1.20:1 for
     the first year, which will be calculated on a rolling month basis.
     Commencing June 27, 2002, and at all times while the indebtedness is
     outstanding thereafter, the Group must exhibit and maintain at all times a
     minimum Debt Service Coverage Ratio of not less than 1.75:1. The term "Debt
     Service Coverage Ratio" shall mean the ratio of "Net Operating Income" to
     "Annual Debt Service". The term "Net Operating Income" shall mean all of
     the Group's income from the operation and management of their businesses
     after deducting all operating expenses and unfinanced capital expenditures
     but prior to the deduction of income taxes, depreciation and financing
     expenses. The term capital expenditures shall be determined in accordance
     with generally accepted accounting principles. The term "Annual Debt
     Service" shall mean all principal, interest and other payments due by the
     Group on all indebtedness incurred by the Group.

          (u) CONDITION OF PREMISES. Borrower shall keep and maintain the
     Premises in good order, condition and repair and shall make, as and when
     the same shall become necessary, all structural and non-structural,
     exterior and interior, ordinary and extraordinary, foreseen and unforeseen,
     repairs and maintenance necessary or appropriate. Borrower shall suffer or
     commit no waste upon the Premises or any portion thereof. Borrower shall,
     at its expense, promptly repair, restore, replace or rebuild any

                                       35
<PAGE>

     part of the Premises which may be damaged or destroyed by any casualty or
     as the result of any taking under the power of eminent domain to the extent
     permitted given the size, scope and extent of taking. Borrower shall cause
     all repairs, maintenance, rebuilding, replacement or restoration to be (in
     the opinion of Lender) of substantially equivalent quality. Borrower shall
     not cause, suffer or permit the construction of any material buildings,
     structures, or improvements on the Premises without the prior written
     consent of Lender to the proposed construction as well as the plans and
     specifications relating thereto. None of the buildings, structures, or
     improvements erected or located on the Premises shall be removed,
     demolished or substantially or structurally altered in any material respect
     without the prior written consent of Lender.

          (v) ENVIRONMENTAL COMPLIANCE REPORTS. Commencing on November 1, 2001,
     and continuing on the 1st day of every fourth month thereafter, Borrower
     shall deliver to Lender, for its review and approval, Environmental
     Compliance Reports, which must be in form and content acceptable to Lender.

     6. DEFAULT. Upon the occurrence of any of the following events (the Events
of Default) Lender may at s option exercise any of its remedies set forth
herein:

          (a) AGREEMENT FOR WARRANT. The occurrence of a default, not cured
     within any applicable cure period under the Agreement for Warrant;

          (b) BANKRUPTCY. If there is filed by or against Borrower a petition in
     bankruptcy or a petition for the appointment of a receiver or trustee of
     the property of Borrower, and any such petition not filed by Borrower is
     not dismissed within sixty (60) days of the date of filing, or if Borrower
     files a petition for reorganization under any of the provisions of the
     Bankruptcy Code or of any similar law, state, federal, or foreign, or if
     Borrower makes a general assignment for the benefit of creditors or makes
     any insolvency assignment or is adjusted insolvent by any court of
     competent jurisdiction;

          (c) BREACH OF COVENANTS, WARRANTIES AND REPRESENTATIONS. If any
     warranty or representation made by Borrower in this Agreement or pursuant
     to the terms hereof shall at any time be false or misleading in any
     material respect, or if Borrower shall fail to keep, observe or perform any
     of the terms, covenants, representations or warranties contained in this
     Agreement, the Note, the Mortgage, the Commitment or any other document
     given in connection with the Loan or development of the Premises, including
     without limitation, any default under any loan between Lender and Borrower,
     (provided, that with respect to non-monetary defaults, Lender shall give
     written notice to Borrower, who shall have ten (10) days to cure after
     notice thereof, or if such default cannot be cured within such ten (10) day
     period, Borrower shall have thirty (30) days to cure same provided Borrower
     diligently and continuously pursues the cure of such default), or is unable
     or unwilling to meet its obligations thereunder;

          (d) INTERCREDITOR AGREEMENT. The occurrence of a default, not cured
     within any applicable period under the Intercreditor Agreement by any party
     other than Lender;

                                       36
<PAGE>

          (e) MATERIAL ADVERSE CHANGE OF BORROWER OR GUARANTOR. If any material
     adverse change shall occur in the financial condition of Borrower or
     Guarantor at any time during the term of the Loan from the financial
     condition revealed in statements already presented to and accepted by
     Lender, however, Lender shall not exercise any such rights unreasonably;

          (f) CROSS-DEFAULT. The occurrence of a default not cured within any
     applicable cure period under any other loan extended to Borrower or an
     affiliate to Borrower by Lender;

          (g) CONGRESS FINANCIAL CORPORATION LOAN. The occurrence of a default
     not cured within any applicable period under that certain Loan and Security
     Agreement executed by Borrower in favor of Congress Financial Corporation
     or any other loan documents evidencing or securing the Loan and Security
     Agreement; or

          (h) CONTRACT. The occurrence of a default, not cured within any
     applicable cure period under the License Agreement, the Collateral
     Assignment of License Agreement, the Collateral Assignment of JLM Marketing
     Acetone Contract, or the JLM Marketing Acetone Contract.

     7. REMEDIES OF LENDER. Upon the happening of an Event of Default beyond any
applicable grace period, then Lender may, at its option:

          (a) Cancel this Agreement;

          (b) Commence an appropriate legal or equitable action to enforce
     performance of this Agreement;

          (c) Accelerate the payment of the Note and the Loan and any other sums
     secured by the Mortgage, and commence appropriate legal and equitable
     action to foreclose the Mortgage and collect all such amounts due Lender;

          (d) Exercise all rights under the Agreements, and thereafter lease or
     let the Premises; and take such action as may be reasonable to preserve and
     protect the Premises; or

          (e) Exercise any other rights or remedies Lender may have under the
     Mortgage or other Loan Documents referred to in this Agreement or executed
     in connection with the Loan or which may be available under applicable law.

     8. INDEMNITY. Borrower shall protect, indemnify and defend and save
harmless Lender and its directors, officers, agents and employees from and
against any and all loss, cost, liability (including negligence, tort and strict
liability), expense, damage, suits or demands (including fees and disbursements
of counsel) on account of any suit or proceeding before any Governmental
Authority which arises from the transactions contemplated in this Agreement, any
other Loan Document or otherwise arising in connection with or relating to the
Loan and any security therefor, unless such suit, claim or damages are caused by
the gross negligence or intentional malfeasance of Lender or its directors,
officers, agents or employees. Upon receiving

                                       37
<PAGE>

knowledge of any suit, claim or demand asserted by a third-party that Lender
believes is covered by this indemnity, Lender shall give Borrower timely notice
of the matter and an opportunity to defend it, at Borrower's sole cost and
expense with legal counsel acceptable to Lender. Lender may, at its option, also
require Borrower to so defend the matter. The obligations of Borrower hereunder
shall survive the termination of this Agreement and repayment of the
obligations.

     9. GENERAL TERMS. The following shall be applicable throughout the period
of this Agreement or thereafter as provided herein:

          (a) BORROWER IS NOT LENDER'S AGENT. Nothing in this Agreement, the
     Note, the Mortgage or any other Loan document shall be construed to make
     the Borrower the Lender's agent for any purpose whatsoever, or the Borrower
     and Lender partners, or joint or co-venturers, and the relationship of the
     parties shall, at all times, be that of debtor and creditor.

          (b) LENDER NOT LIABLE FOR DAMAGE OR LOSS. All inspections and other
     services rendered by or on behalf of Lender shall be rendered solely for
     the protection and benefit of the Lender. Neither Borrower nor other third
     persons shall be entitled to claim any loss or damage against the Lender or
     against its agents or employees for failure to properly discharge their
     duties.

          (c) INDEMNIFICATION FROM THIRD PARTY CLAIMS. Borrower shall indemnify
     Lender from any liability, claims or losses resulting from the disbursement
     of the Loan proceeds or from the condition of the Premises whether related
     to the quality of construction or otherwise, and whether arising during or
     after the term of the Loan, except for any liability, claim or loss
     resulting solely from Lender's action occurring after a foreclosure by
     Lender or acceptance of a deed-in-lieu of foreclosure. This provision shall
     survive the repayment of the Loan and shall continue in full force and
     effect so long as the possibility of such liability, claims, or losses
     exists.

          (d) EVIDENCE OF SATISFACTION OF CONDITIONS. Lender shall, at all
     times, be free independently to establish to its good faith and
     satisfaction, and in its absolute discretion, the existence or nonexistence
     of a fact or facts which are disclosed in documents or other evidence
     required by the terms of this Agreement.

          (e) HEADINGS. The headings of the sections, paragraphs and
     subdivisions of this Agreement are for the convenience of reference only,
     and shall not limit or otherwise affect any of the terms hereof.

          (f) INVALID PROVISIONS TO AFFECT NO OTHERS. If performance of any
     provision hereof or any transaction related hereto is limited by law, then
     the obligation to be performed shall be reduced accordingly; and if any
     clause or provision herein contained operates or would prospectively
     operate to invalidate this Agreement in part, then the invalid part of said
     clause or provision only shall be held for naught, as though not contained
     herein, and the remainder of this Agreement shall remain operative and in
     full force and effect.

                                       38

<PAGE>

          (g) APPLICATION OF INTEREST TO REDUCE PRINCIPAL SUMS DUE. In the event
     that any charge, interest or late charge is above the maximum rate provided
     by law, then any excess amount over the lawful rate shall be applied by
     Lender to reduce the principal sum of the Loan or any other amounts due
     Lender hereunder.

          (h) GOVERNING LAW. The laws of the State of Florida shall govern the
     interpretation and enforcement of this Agreement.

          (i) NUMBER AND GENDER. Whenever the singular or plural number,
     masculine or feminine or neuter gender is used herein, it shall equally
     include the others and shall apply jointly and severally.

          (j) PRIOR AGREEMENT. To the extent necessary, this Agreement shall be
     deemed to be an amendment to the Commitment or any prior loan agreement
     between Borrower and Lender, and in the event of a conflict between the
     terms of this Agreement and of the Commitment or any such prior agreement,
     the terms of this Agreement shall govern.

          (k) WAIVER. If Lender shall waive any provisions of the Loan
     Documents, or shall fail to enforce any of the conditions or provisions of
     this Agreement, such waiver shall not be deemed to be a continuing waiver
     and shall never be construed as such; and Lender shall thereafter have the
     right to insist upon the enforcement of such conditions or provisions.
     Furthermore, no provision of this Agreement shall be amended, waived,
     modified, discharged or terminated, except by instrument in writing signed
     by the parties hereto.

          (l) NOTICES. All notices from the Borrower to Lender and Lender to
     Borrower required or permitted by any provision of this Agreement shall be
     in writing and sent by registered or certified mail and addressed as
     follows:

                                       39
<PAGE>

                    TO BORROWER:    JLM Chemicals, Inc.
                                    JLM Terminals, Inc.
                                    JLM Realty, Inc.
                                    c/o JLM Industries
                                    8675 Hidden River Parkway
                                    Tampa, Florida 33637

                    LENDER:         GATX Capital Corp.
                                    500 West Monroe
                                    Chicago, Illinois 60661-3676
                                    Attn: Vice President, Commercial Real Estate

Such addresses may be changed by such notice to the other party.

          (m) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit
     of and be binding on the parties hereto and their heirs, legal
     representatives, successors and assigns; but nothing herein shall authorize
     the assignment hereof by the Borrower.

          (n) WAIVER OF JURY TRIAL. LENDER AND BORROWER HEREBY KNOWINGLY,
     VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY
     JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR
     IN CONNECTION WITH THIS AGREEMENT AND ANY AGREEMENT CONTEMPLATED TO BE
     EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF
     DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY.
     THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDER ENTERING INTO THIS
     AGREEMENT.

                                                  ------------------------
                                                  Borrower's Initials

                                       40
<PAGE>

         IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to
be executed on this 28th day of June, 2001.

                                       "BORROWER":
                                        --------

                                       JLM CHEMICALS, INC., a Delaware
                                       corporation

                                       By: /s/ Michael E. Hayes
                                          --------------------------------------
                                       Print Name: Michael E. Hayes
                                       Its: Vice President

                                       Address:     8675 Hidden River Parkway
                                                    Tampa, Florida  33637

                                       JLM REALTY, INC., a North Carolina
                                       corporation

                                       By: /s/ Michael E. Hayes
                                          --------------------------------------
                                       Print Name: Michael E.Hayes
                                       Its: Vice President

                                       Address:     8675 Hidden River Parkway
                                                    Tampa, Florida  33637

                                       JLM TERMINALS, INC., a North Carolina
                                       corporation

                                        By: /s/ Michael E. Hayes
                                           -------------------------------------
                                        Print Name: Michael E. Hayes
                                        Its: Vice President

                                        Address: 8675 Hidden River Parkway
                                                 Tampa, Florida  33637

                                       41
<PAGE>

                                        "GUARANTOR":
                                         ---------

                                        JLM INDUSTRIES, INC., a Delaware
                                        corporation

                                        By: /s/ Michael E. Hayes
                                           -------------------------------------
                                        Print Name: Michael E. Hayes
                                        Its: Vice President

                                        Address: 8675 Hidden River Parkway
                                                 Tampa, Florida  33637

                                        "LENDER":
                                         ------

                                        GATX CAPITAL CORPORATION, a Delaware
                                        corporation

                                        By:_________________/s/_________________
                                        Print Name:
                                                   -----------------------------
                                        Its:
                                            ------------------------------------

STATE OF FLORIDA
COUNTY OF _________________

     The foregoing document was acknowledged before me this ______ day of June,
2001 by _______________________, as ____________________ of JLM CHEMICALS, INC.,
a Delaware corporation, on behalf of the corporation. He/she is personally known
to me or has produced ____________________________ as identification.

                                       -----------------------------------------
                                       NOTARY PUBLIC
                                       Name:
                                            ------------------------------------
                                       Serial #:
                                                --------------------------------
                                       My Commission Expires:
                                                             -------------------

                                       42
<PAGE>

STATE OF FLORIDA
COUNTY OF _________________

     The foregoing document was acknowledged before me this ______ day of June,
2001 by _______________________, as ____________________ of JLM TERMINALS, INC.,
a North Carolina corporation, on behalf of the corporation. He/she is personally
known to me or has produced ____________________________ as identification.

                                       -----------------------------------------
                                       NOTARY PUBLIC
                                       Name:
                                            ------------------------------------
                                       Serial #:
                                                --------------------------------
                                       My Commission Expires:
                                                             -------------------

STATE OF FLORIDA
COUNTY OF _________________

     The foregoing document was acknowledged before me this ______ day of June,
2001 by _______________________, as ____________________ of JLM REALTY, INC., a
North Carolina corporation, on behalf of the corporation. He/she is personally
known to me or has produced ____________________________ as identification.

                                       -----------------------------------------
                                       NOTARY PUBLIC
                                       Name:
                                            ------------------------------------
                                       Serial #:
                                                --------------------------------
                                       My Commission Expires:
                                                             -------------------

STATE OF FLORIDA
COUNTY OF _______________

     The foregoing instrument was acknowledged before me this ____ day of June,
2001, by __________________, as _________________ of JLM INDUSTRIES, INC., a
Delaware corporation, on behalf of the corporation. He/She is personally known
to me or who has produced _____________________ as identification.

                                       -----------------------------------------
                                       NOTARY PUBLIC
                                       Name:
                                            ------------------------------------
                                       Serial #:
                                                --------------------------------
                                       My Commission Expires:
                                                             -------------------

STATE OF ___________
COUNTY OF _______________

                                       43
<PAGE>

     The foregoing Loan Agreement was acknowledged before me this ____ day of
June, 2001, by __________________________, as ________________ of GATX Capital
Corporation, a Delaware corporation on behalf of the corporation. He is
personally known to me or has produced ______________________________________ as
identification.

                                       -----------------------------------------
                                       NOTARY PUBLIC
                                       Name:
                                            ------------------------------------
                                       Serial #:
                                                --------------------------------
                                       My Commission Expires:
                                                             -------------------

                                       44
<PAGE>

                                    EXHIBIT A

                                LEGAL DESCRIPTION<PAGE>

                                                                    EXHIBIT 10.3

                                CREDIT AGREEMENT

      This Credit Agreement (the "Agreement") dated as of this 15th day of June,
2001, is by and between SOUTHTRUST BANK, an Alabama banking corporation (the
"Bank"), whose address is 420 North 20th Street, Birmingham, Alabama 35203, and
JLM INDUSTRIES, INC., (the "Borrower"), whose address is 8675 Hidden River
Parkway, Tampa, FL 33637. The parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

      SECTION 1. DEFINED TERMS. As used in this Agreement, the following terms
have the following meanings (terms defined in the singular to have the same
meaning when used in the plural and vice versa):

      "AFFILIATE" means, as applied to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with that Person.
For purposes of this definition, "control" as applied to any Person means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of that Person, whether through the
ownership of voting securities, by contract, or otherwise.

      "APPLICABLE RATE" means either a LIBOR Rate or the Base Rate.

      "BASE RATE" means the lending rate as announced by the Bank from time to
time, as its base rate which may change as often as daily provided, however,
that at no time shall the rate of interest exceed the highest rate allowed by
law. In the event that Bank does not, for any reason, announce a Base Rate or
discontinues the use of the term "Base Rate" as a benchmark for interest rate on
its loans, the Base Rate shall be the rate quoted as the "prime rate" as
reported in the "Money Rates" section of the Wall Street Journal (or the
arithmetic average of the rates so quoted, if more than one rate is quoted) or,
in the event of discontinuance of such publication or such section thereof, the
Base Rate shall mean the monthly average prime rate as reported and published in
the FEDERAL RESERVE BULLETIN published monthly by the Board of Governors of the
Federal Reserve System under the table styled "Prime Rate Charged by Banks on
Short Term Business Loans". In the event of the discontinuance of both such
publications or such section or table thereof, the Base Rate shall mean the
prime rate as from time to time announced or published by Citibank, N.A. at its
principal office in New York, New York.

      The terms "Base Rate" and "Prime Rate" are intended by the parties to be
benchmarks only and are not to be construed as indicating that such rates are
the best or lowest rates offered by the Lender to any of its customers
regardless of their creditworthiness.

<PAGE>

      "BUSINESS DAY" means any day other than a Saturday, Sunday, or other day
on which commercial banks in Florida or Alabama are authorized or required to
close under applicable law.

      "CLOSING DATE" means the date of this Agreement.

      "COLLATERAL" means the Real Property Collateral, all Improvements thereon,
and all fixtures thereto.

      "DEFAULT RATE" is defined in SECTION 2.04.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations and published interpretations
thereof.

      "ERISA AFFILIATE" means any trade or business (whether or not
incorporated) which together with the Borrower would be treated as a single
employer under Section 4001 of ERISA.

      "EUROCURRENCY RESERVE PERCENTAGE" means, with respect to each Interest
Period, a percentage (expressed as a decimal) equal to the percentage in effect
two Business Days prior to the first day of such Interest Period, as prescribed
by the Board of Governors of the Federal Reserve System (or any successor), for
determining reserve requirements applicable to any "Eurocurrency liabilities"
pursuant to Regulation D or any other applicable regulation of the Board of
Governors which prescribes reserve requirements applicable to "Eurocurrency
liabilities" as presently defined in Regulation D.

      "GAAP" means generally accepted accounting principles in the United States
consistently applied.

      "HEAD OFFICE" means the principal office of the Bank at 420 North 20th
Street, Birmingham, Alabama 35203.

      "IMPROVEMENTS" means all buildings and improvements of any kind or
character whatsoever located on the Real Property Collateral.

      "INTERBANK RATE" means, with respect to each Interest Period, the rate per
annum at which dollar deposits in immediately available funds are offered to the
Bank two Business Days prior to the beginning of such Interest Period by major
banks in the London interbank eurodollar market as at or about 11:00 a.m. London
time, for delivery on the first day of such Interest Period, for the number of
days comprised therein and in an amount comparable to the amount of the Loan to
which such Interest Period relates.

      "INTERBANK RATE (RESERVE ADJUSTED)" means, for any Interest Period, a rate
per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) determined
pursuant to the following formula:

                                       2
<PAGE>

       Interbank Rate         =                Interbank Rate
                                    -------------------------------------------
      (Reserve Adjusted)               1 - Eurocurrency Reserve Percentage

      "INTEREST PERIOD" means the period beginning on (and including) the date
on which the Loan is made or continued and ending on (but excluding) the day 30,
60 or 90 days thereafter, in either case as the Borrower may select in its
relevant notice to the Bank as provided in this Agreement, PROVIDED, that:

            (a) if any Interest Period would otherwise end on a day which is not
      a Business Day, such Interest Period shall end on the next succeeding
      Business Day; and

            (b) no Interest Period may end later than the Maturity Date,
      PROVIDED that if the final Interest Period for the Loan is less than
      thirty (30) days, interest shall not accrue at a LIBOR Rate during such
      Interest Period but rather shall accrue at the Base Rate.

      "LIBOR RATE" means a rate of interest per annum equal to the Interbank
Rate (Reserve Adjusted) applicable to the Interest Period selected by Borrowers
plus 300 basis points, fixed for periods of 30, 60 or 90 days.

      "LIEN" means any mortgage, deed of trust, pledge, security interest,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), or preference, priority, or other security agreement or preferential
arrangement, charge, or encumbrance of any kind or nature whatsoever (including,
without limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing, and the filing of any financing statement under the Uniform
Commercial Code or comparable law of any jurisdiction to evidence any of the
foregoing).

      "LOAN" means the Loan made by the Bank to the Borrower pursuant to SECTION
2.01.

      "LOAN DOCUMENTS" means the this Credit Agreement, the Note, the Mortgage
securing the Note and all documents executed and delivered to the Bank in
connection with the transactions contemplated thereby, whether referred to
collectively or separately in this Agreement, as the context may require.

      "MATURITY DATE" means June 15, 2004.

      "MORTGAGE" means the Mortgage, Security Agreement and Assignment of Rents
and Leases of even date with the Note given by Borrower to secure the Note.

                                       3
<PAGE>

      "MULTIEMPLOYER PLAN" means a multiemployer plan as defined in Sections
3(37) or 4001(a)(3) of ERISA or Section 414 of the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder, in which employees
of Borrower an ERISA Affiliate participate or to which Borrower or any ERISA
Affiliate contribute or are required to contribute.

      "NOTE" means the promissory note of Borrower given to evidence Borrower's
obligation to repay the Loan to the Bank.

      "PERSON" means an individual, partnership, corporation, business trust,
joint stock company, trust, unincorporated association, joint venture,
governmental authority, or other entity of whatever nature.

      "PLAN" means any plan established, maintained, or to which contributions
have been made by the Borrower or any ERISA Affiliate.

      "REAL PROPERTY COLLATERAL" means the real property that is subject to the
Mortgage, together with all improvements located thereon.

      "REGULATION D" means Regulation D of the Board of Governors of the Federal
Reserve System from time to time in effect and shall include any successor or
other regulation of said Board of Governors relating to reserve requirements
applicable to member banks of the Federal Reserve System.

      "SUBSIDIARY" means, as to any Person, a corporation of which shares of
stock having ordinary voting power (other than stock having such power only by
reason of the happening of a contingency) to elect a majority of the board of
directors or other managers of such corporation are at the time owned, or the
management of which is otherwise controlled, directly, or indirectly through one
or more intermediaries, or both, by such Person.

      SECTION 1.02. ACCOUNTING TERMS. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP and all financial data
submitted pursuant to this Agreement shall be prepared in accordance with such
principles. When used herein, the term "financial statements" shall include the
notes and schedules thereto.

      SECTION 1.03. CONSTRUCTION. Unless the context of this Agreement clearly
requires otherwise, references to the plural include the singular, references to
the singular include the plural, the term "including" is not limiting, and the
term "or" has, except where otherwise indicated, the inclusive meaning
represented by the phrase "and/or". The words "hereof", "herein", "hereby',
"hereunder", and similar terms in this Agreement refer to this Agreement as a
whole and not to any particular provision of this Agreement. Section,
subsection, clause, schedule and exhibit references are to this Agreement unless
otherwise specified. Any reference in this Agreement or in the Loan Documents to
this Agreement or any of the Loan Documents shall include all alterations,

                                       4
<PAGE>

amendments, changes, extensions, modifications, renewals, replacements,
substitutions and supplements thereto and thereof, as applicable. All of the
schedules and exhibits attached to this Agreement shall be deemed incorporated
herein by reference.

                                   ARTICLE II

                                    THE LOAN

      SECTION 2.01. (a) THE LOAN. The Bank agrees, on the terms and conditions
hereinafter set forth, to make a term loan to the Borrower in the amount of ONE
MILLION EIGHT HUNDRED EIGHTY FIVE THOUSAND AND NO/100 DOLLARS ($1,885,000.00).
There is no revolving feature to the Loan and Borrower may not re-borrow any
sums repaid thereunder.

      (b) THE NOTE. The Borrower's obligation to repay the Loan shall be
evidenced by a promissory note of Borrower of even date with this Agreement in
substantially the form attached hereto as EXHIBIT "A".

      (c) INTEREST RATE. The principal amount of the Note shall bear interest at
the LIBOR Rate based upon Interest Period selections made by the Borrower in
accordance with SECTION 2.01 (F). Interest shall be calculated based on a 360
day year for the actual number of days elapsed during any Interest Period.

      (d) PAYMENTS UNDER THE NOTE. Borrower shall repay the Loan under the Note
in equal monthly installments of principal plus interest based upon a ten (10)
year amortization commencing with a payment due on the fifteenth (15th) day of
the month following the Closing Date and on the same day of each month
thereafter until the Maturity Date on which date all outstanding principal and
accrued interest shall be due and payable. All payments received by the Bank
shall be applied first to payment of any costs and expenses to which the Bank
may be entitled under any Loan Document, then to payment of accrued interest and
then to payment of principal.

      (e) CONTINUATION OR CONVERSION OF INTEREST PERIOD. Subject to the
provisions hereof, the Borrower shall have the right to continue or change the
Interest Period applicable to the Loan, in each case by submitting to the Bank
(effective upon receipt) at least three (3) Business Days prior to the end of a
current Interest Period a written notice of Borrower's election to continue or
change the Interest Period as described in said notice. Such continuation or
conversion shall take effect at the end of the current Interest Period. If no
such notice of election is received by the Bank from the Borrower within the
time prescribed prior to the end of a current Interest Period, then the current
Interest Period shall be continued at a current rate. Notwithstanding anything
herein to the contrary, no Interest Period may end later than the Maturity Date
and if the Maturity Date falls in less than thirty (30) days, then the Loan
cannot accrue interest at a LIBOR Rate during the remaining term

                                       5
<PAGE>

but rather shall accrue interest at a rate per annum equal to the Base Rate.
After the occurrence and during the continuance of an Event of Default, the
interest rate applicable to the Loan may not be continued at a LIBOR Rate and
shall be deemed automatically to have been converted to the Default Rate.

      (f) RIGHT OF PREPAYMENT OF LOAN. Subject to the provisions of this
Agreement regarding payment of expenses relating to LIBOR Rate breakage,
Borrower shall have the right any time and from time to time to prepay the
principal outstanding under the Note, in whole or in part, without premium or
penalty provided, however, that Borrower shall pay accrued interest to the date
of such prepayment. Prepayments shall be made to Bank in immediately available
funds, and any such prepayment shall not affect or vary the obligation of
Borrower to pay any installment when due.

      (g) USE OF PROCEEDS OF LOAN. The proceeds of the Loan shall be used to pay
off existing indebtedness owed by Borrower to Citizens Bank of Massachusetts.

      SECTION 2.02. NON USURY. Notwithstanding any other provision of this
Agreement, the Note or of any instrument securing the Note or any other
instrument executed in connection with the Loan evidenced thereby, it is
expressly agreed that amounts payable under the Note or under the other
aforesaid instruments for the payment of interest or any other payment in the
nature of or which would be considered as interest or other charge for the use
or loan of money shall not exceed the highest rate allowed by law, from time to
time, and in the event the provisions of this Agreement, the Note or of such
other instruments referred to above in this paragraph with respect to the
payment of interest or other charge for the use or loan of money shall result in
payments of interest exceeding such limitation, then the excess over such
limitation shall not be payable and the amount otherwise agreed to have been
paid shall be reduced by the excess so that such limitation will not be
exceeded, and if any payment actually made shall result in such limitation being
exceeded, the amount of the excess shall constitute and be treated as a
repayment of principal and shall operate to reduce such principal by the amount
of such excess, or if any such payment is in excess of the principal
indebtedness, such excess shall be refunded.

      SECTION 2.03. PAYMENTS AND COMPUTATIONS. All payments on account of the
indebtedness evidenced by the Note shall be made in lawful money no later than
1:00 p.m. (Eastern Time) on the date due in immediately available United States
funds. All payments shall be first applied to payment of costs and expenses to
which the Bank may be entitled under the Loan Documents, then to accrued
interest and the remainder to principal. All computations of interest shall be
made on the basis of a year of 360 days charged for the actual number of days
elapsed. Payments are to be made to the Bank in Birmingham, Alabama, or at any
one other place in the continental United States as the Bank may, from time to
time, in writing designate. Any payment made after 1:00 p.m. (Eastern Time)
shall be deemed received on the next Business Day and must include interest up
to but not including such next Business Day. If any payment becomes due on a
Saturday, Sunday, or any day on which banks in Florida or Alabama are legally
closed to business, such payment shall be made on the next succeeding Business
Day, and, in the case of a principal

                                       6
<PAGE>

payment, interest on such principal payment shall be payable for such extension
of time and shall be included with such payment.

      SECTION 2.04. DEFAULT RATE. Upon and after the occurrence of an Event of
Default hereunder, all principal amounts due under the Note shall bear interest,
payable on demand, at the Base Rate plus three percent (3.0%) (the "Default
Rate").

      SECTION 2.05.  LIBOR RELATED PROVISIONS.

      (a) LIBOR RATE LENDING UNLAWFUL. If as a result of a regulatory change the
Bank shall reasonably determine that it is unlawful for the Bank to make,
continue or maintain the Loan at the LIBOR Rate, then the obligation of the Bank
to make, continue or maintain any such Loan at the LIBOR Rate shall, upon such
determination (and telephonic notice thereof, to be subsequently confirmed in
writing to the Borrower which notice shall, in the absence of manifest error,
create a rebuttable presumption as to the effect of such regulatory change as
specified above), forthwith be suspended until the earliest date the Bank can
determine and notify the Borrower that the circumstances causing such suspension
no longer exist, and the LIBOR Rate applicable to the Loan shall automatically
convert to the Base Rate on the last day(s) of the then current respective
Interest Period(s) with respect thereto or sooner, if required by such
regulatory change, PROVIDED that the Bank shall take any reasonable actions
available to it (including designation of its lending offices) consistent with
legal and regulatory restrictions that will avoid the need for such suspension
and will not, in the reasonable judgment of the Bank, be otherwise materially
disadvantageous to the Bank.

      (b) DEPOSITS UNAVAILABLE. If the Bank shall have reasonably determined
that quotations of interest rates for the relevant deposits referred to in the
definition of "Interbank Rate" are not being provided in the relevant amounts or
for the relevant maturities for purposes of determining rates of interest for
LIBOR Rate determinations as provided herein or that, by reason of circumstances
affecting the London interbank eurodollar market, adequate means do not exist
for ascertaining the LIBOR Rate for the Loan, then, upon telephonic notice from
the Bank to the Borrower to be subsequently confirmed in writing (such notice,
in the absence of manifest error, to create a rebuttable presumption as to the
effect specified above), the obligations of the Bank to make or continue the
Loan at a LIBOR Rate shall forthwith be suspended until the earliest date that
the Bank can reasonably determine and notify the Borrower that the circumstances
causing such suspension no longer exist, PROVIDED that the Bank shall take any
reasonable actions available to it to obtain the necessary quotations of
interest rates in the London interbank eurodollar market (or another eurodollar
market acceptable to the Bank and to the Borrower).

      (c) TREATMENT OF AFFECTED LOAN. If the obligation of the Bank to continue
or maintain the Loan at a LIBOR Rate shall be suspended pursuant to SECTION
2.05(A) OR 2.05(B) ABOVE, then the Applicable Rate shall be automatically
converted to the Base Rate on the last day(s) of the then current Interest
Period(s) (or, in the case of a suspension pursuant to SECTION 2.05(A), sooner,
if

                                       7
<PAGE>

required by the regulatory change that gave rise to such suspension) and,
unless and until the Bank gives notice as provided below that the circumstances
specified in SECTION 2.05(A) OR 2.05(B) (as the case may be) that gave rise to
such suspension no longer exist the Loan that would otherwise be continued at a
LIBOR Rate by the Bank shall be continued instead at the Base Rate. If the Bank
gives notice to the Borrower that the circumstances specified in SECTION 2.05(A)
OR 2.05(B) that gave rise to such suspension no longer exist (which the Bank
agrees to do promptly upon such circumstances ceasing to exist) the Loan
converted to accrue interest at the Base Rate may be re-converted, on the first
day(s) of the next succeeding Interest Period(s) to the LIBOR Rate based upon
written notice received by the Bank at least three (3) Business Days prior to
the conversion.

      (d)  LIBOR RELATED LOSSES AND EXPENSES.

      (i) If either (1) the introduction of or any change in any law or
regulation or in the interpretation or administration of any law or regulation
by any court or administrative or governmental authority charged with the
interpretation or administration thereof from the date hereof, or (2) the
compliance with any guideline or request from any such governmental authority,
including, without limitation, any central bank (whether or not having the force
of law), (x) subjects the Bank or any corporation controlling the Bank to any
tax of any kind whatsoever with respect to this Agreement or the Loan , or
changes the basis of taxation of payments to the Bank or corporation controlling
the Bank of principal, commissions, fees, interest, or any other amount payable
hereunder (except for (A) taxes on or measured by the overall net income of the
Bank or branch, office, or agency through which the Bank is acting for purposes
of this Agreement, (B) changes in the rate of such taxes, or (C) taxes for which
the Bank is indemnified under this Agreement); (y) imposes, modifies, or holds
applicable any reserve, special deposit, compulsory loan, or similar requirement
against assets held by, or deposits or other liabilities in or for the account
of, advances or loans by, or other credit or commitment therefor extended, by,
or any other acquisition of funds by, any office of the Bank which are not
otherwise included in any determination of the Base Rate or LIBOR Rate or
interest payable hereunder; or (z) imposes on the Bank or the corporation
controlling the Bank any other condition, and as a result there shall be any
increase in the cost to the Bank or the corporation controlling the Bank of
agreeing to make or making, funding, or maintaining the Loan by an amount deemed
by such Bank to be material, then Borrower shall from time to time, upon demand
by the Bank pay to the Bank additional amounts sufficient to compensate the Bank
for such increased cost. A certificate as to the amount of such increased cost,
submitted to Borrower by the Bank, shall be conclusive and binding for all
purposes absent manifest error.

            (ii) If the Bank determines that compliance with any law or
regulation or with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law) concerning
capital adequacy or otherwise has or would have the effect of reducing the rate
of return on the capital of the Bank or the corporation controlling the Bank as
a consequence of, or with reference to its maintaining the Loan below the rate
which the Bank or such other corporation could have achieved but for such
compliance (taking into account the

                                       8
<PAGE>

policies of the Bank or such corporation with regard to capital) by an amount
deemed by the Bank material, Borrower shall from time to time, upon demand by
the Bank pay to the Bank additional amounts sufficient to compensate the Bank or
such other corporation for such reduction. A certificate as to such amounts,
submitted to Borrower by the Bank, shall be conclusive and binding for all
purposes, absent manifest error. The Bank agrees promptly to notify Borrower of
any circumstances that would cause Borrower to pay additional amounts pursuant
to this provision, provided that the failure to give such notice shall not
affect Borrower's obligation to pay such additional amounts hereunder.

            (iii) If the Bank notifies the Borrower that the LIBOR Rate for any
Interest Period will not adequately reflect the cost to the Bank of making,
funding, or maintaining the Loan at the LIBOR Rate for such Interest Period,
then (1) the Applicable Rate will automatically, on the last day of the then
existing Interest Period therefor, convert into the Base Rate, and (2) the
obligation of the Bank to continue the Applicable Rate at a LIBOR Rate shall be
suspended until the Bank notifies the Borrower that the Bank has determined that
the circumstances causing such suspension no longer exist.

            (iv) In the event that all or any portion of the Loan for which the
Applicable Rate is the LIBOR Rate is repaid, prepaid or converted prior to the
end of the applicable Interest Period, regardless of whether such payment is
optional or obligatory, Borrower shall be required to pay to the Bank
compensation as follows. Borrower shall be required to pay an amount equal to
the excess, if any, of (1) the amount of interest which otherwise would have
accrued on the portion of the Loan repaid, prepaid or converted from and after
the date of such payment, prepayment or conversion, to the last day of the
applicable Interest Period at the Applicable Rate of interest specified herein,
less (2) the amount of interest which would have accrued on the Loan or portion
thereof from and after the date of such payment, prepayment or conversion, to
the last day of the applicable Interest Period at the Applicable Rate of
interest specified herein, but calculated with respect to an Interbank Rate
(Reserve Adjusted) based on an amount substantially equal to the amount paid,
prepaid or converted and an Interest Period substantially equal to the number of
days remaining in the applicable Interest Period. Whether or not the foregoing
calculation results in a change to be paid by Borrower, Borrower shall also pay
all actual out-of-pocket expenses other than those taken into account in the
foregoing calculation incurred by the Bank (excluding any internal expenses) and
reasonably attributable to such payment, prepayment or conversion. Borrower
acknowledges that the Bank is relying on the Loan for which the Applicable Rate
is a LIBOR Rate remaining outstanding or being converted for the entire Interest
Period selected, and that the foregoing compensation represents reasonable
liquidated damages and is not a penalty. The foregoing compensation shall apply
with respect to all payments, prepayments and conversions of the Loan, whether
optional or obligatory, and shall include any prepayment, repayment or
conversion after default or acceleration of the Note.

      SECTION 2.06. COSTS. If any miscellaneous items of cost or expense, or any
other expenditures are incurred by Bank in connection with the loan transactions
contemplated by this

                                       9
<PAGE>

Agreement including, without limitation, the Loan evidenced by the Note, or in
order to protect, preserve or further secure the Bank's interests with respect
thereto, or, if any action or proceedings shall be commenced by any person other
than the Bank to which action or proceedings the Bank is made a party or in
which it shall become necessary to defend the interests of the Bank or the
provisions of this Agreement, all sums paid or incurred by the Bank for such
expenses, including reasonable attorney's fees, shall be paid by the Borrower,
together with interest thereon at the Default Rate. The sums paid or incurred by
the Bank in accordance with the terms of this paragraph shall be paid by the
Borrower to the Bank promptly upon demand and the failure or omission of the
Borrower to do so shall entitle the Bank to add such sums to the principal
indebtedness of the Note or, at its option, to declare the Note to be in
default, thereupon maturing all of the unpaid indebtedness including the sums
advanced hereunder.

      SECTION 2.07. CREDITORS' INQUIRIES. Borrower hereby grants to the proper
officials of Bank the right to make response to any inquiries of creditors of
the Borrower concerning the status of the Loan. Bank agrees to furnish such
information from time to time to the best of its knowledge. Provided, however,
that the only duty of Bank in the furnishing of such information shall be not to
affirmatively deceive, as construed by decisions of the courts of the State of
Florida, which is equivalent to fraud and willful misrepresentation.

      SECTION 2.08. ADDITIONAL REMEDIES OF BANK. In addition to other remedies
available to the Bank in an Event of Default under this Agreement, should
Borrower default, violate, breach or fail to comply with and perform any one or
more of the express covenants, conditions, and provisions of this Agreement not
involving the payment of money, which default, violation, breach or failure
remains uncured thirty (30) days after notice thereof to the Borrower, or
defaults under the Note then the Bank shall have the absolute right, at its
option and election, to (1) cancel this Agreement by written notice to the
Borrower; (2) institute appropriate proceedings to specifically enforce
performance hereof; (3) withhold further advances hereunder; (4) take immediate
possession of the Collateral; (5) appoint a receiver, as a matter of strict
right without regard to the solvency of Borrower, for the purpose of preserving
the Real Property Collateral, preventing waste, and to protect all rights
accruing to Bank by virtue of this Agreement, and expressly to make any and all
further improvements, whether on-site or off-site, as may be determined by Bank
for the purpose of completing the Improvements in accordance with this
Agreement. All expenses incurred in connection with the appointment of said
receiver, or in protecting, preserving, or improving the Real Property
Collateral and the Improvements, shall be chargeable against the Borrower and
shall be enforced as a lien against Borrower's property, both real and personal.
Nothing herein shall be construed to require notice or opportunity to cure in
the event that Borrower defaults in any obligation to pay money under the Note.
The said remedies and rights of Bank shall be cumulative and not exclusive, the
Bank to be privileged and have the absolute right to resort to any one or more,
or all of the said remedies, neither to the limited exclusion of the other, or
any other remedy available to the Bank at law or equity, in the event of any
such default or breach of said agreement or provisions by the Borrower. The Bank
shall have the absolute right to apply any balance of the any loan funds as a
payment toward the Note, and no other party, whether contractor,

                                       10
<PAGE>

materialmen, laborer, sub-contractor, or supplier, shall have any interest in
any Loan funds so applied and shall not have any right to garnish, require or
compel payment thereof toward discharge or satisfaction of any claim or lien
which they or any of them have or may have for work performed or materials
supplied. Any additional funds advanced by Bank to complete construction of the
Improvements shall be secured by the Collateral and shall be considered part of
the Loan and shall be added to the amounts due under the Mortgage Note.

      SECTION 2.09. TIME IS OF THE ESSENCE. It is specifically agreed that time
is of the essence of this Agreement, and that no waiver of any obligation or
requirement hereunder shall at any time thereafter be held to be a waiver of the
terms hereunder.

      SECTION 2.10. TAXES. All payments of the principal of and interest on the
Note shall be made without deduction for any present and future taxes, levies,
imposts, deductions, charges or withholdings (other than any of the foregoing
levied on or measured by the net income of the Bank pursuant to the tax laws of
the jurisdictions in which it is incorporated or where such Bank's lending
installations are located or managed and controlled) which amount shall be paid
by Borrower. Borrower will pay the amounts necessary so that the gross amount of
the principal and interest paid is not less than that which would have been
required by the Note if such taxes and other items were not payable. All stamp
and documentary taxes shall be paid by Borrower. If, notwithstanding the
previous three sentences, the Bank pays any such taxes, Borrower will reimburse
the Bank for the amount paid, including interest and penalties for late payment,
if any.

                                   ARTICLE III

                              CONDITIONS PRECEDENT

      SECTION 3.01. CONDITIONS PRECEDENT TO MAKING LOAN. In addition to the
conditions precedent set forth in Article II of this Agreement, the obligation
of the Bank to make the Loan as provided in Article II of this Agreement is
subject to the further condition precedent that the Bank shall have received on
or before the day of closing each of the following in form and substance
satisfactory to the Bank and its counsel:

      (1) NOTE. The Note evidencing the Loan duly executed by the Borrower;

      (2) EVIDENCE OF ALL CORPORATE ACTION BY THE BORROWER. Copies of all
corporate action taken by the Borrower, certified as of the date of this
Agreement, including resolutions of its Board of Directors, authorizing the
execution, delivery, and performance of the documents to which it is a party
relating to the Loan;

      (3) INCUMBENCY AND SIGNATURE CERTIFICATE OF THE BORROWER. A certificate
(dated as of the date of this Agreement) of the Borrower certifying the names,
incumbency and true signatures

                                       11
<PAGE>

of its officers authorized to sign the Loan Documents to which it is a party and
the other documents to be delivered by the Borrower under this Agreement, and
having attached thereto certified copies of the Articles of Incorporation and
By-Laws of the Borrower and all amendments to either;

      (4) OPINION OF COUNSEL FOR THE BORROWER. A favorable opinion of counsel
for the Borrower in form and substance acceptable to the Bank and as to such
other matters as the Bank may reasonably request;

      (5) ITEMS RELATING TO REAL PROPERTY. The Bank shall have received, at or
prior to the Closing, (a) the Mortgage duly executed in recordable form; (b) an
ALTA title insurance commitment naming the Bank as insured for the full amount
of the Note and showing that the Real Property Collateral is unencumbered by any
mortgage, lien or encumbrance of any kind other than the Mortgage; (c) a survey
showing the location of all buildings, improvements and easements and showing a
lack of boundary encroachments and overlaps; and (d) an environmental
indemnification agreement from Borrower in form and substance acceptable to the
Bank providing for indemnification against any loss or liability relating to
environmental hazards.

      (6) INSURANCE. The Bank shall have received evidence satisfactory to it
that all Collateral is insured against fire, flood, theft and casualty loss to
its full insurable value, and that Borrower has obtained casualty and builder's
risk insurance relating to the Improvements in substance and with coverage
amounts satisfactory to the Bank; and that the Bank is named as loss payee and
an additional insured as its interest may appear in all such insurance policies
and certificates;

      (7) OTHER DOCUMENTS. The Bank shall have received such other approvals,
opinions, or documents as the Bank may reasonably request.

      (8) NO DEFAULTS. The Bank shall have received a certificate signed by the
Borrower dated the date of such Advance, stating that no Default or Event of
Default has occurred and is continuing, or would result from the passage of time
or the giving of notice; and

      (9) PAYMENT OF FEES. Borrower shall have paid to or for the benefit of the
Bank all fees properly payable by the Borrower pursuant to this Agreement.

      (10) PAYMENT OF CITIZENS BANK. The Bank shall have received evidence
satisfactory to it in its sole discretion that Borrower's mortgage loan,
revolving line of credit facility and term loan with Citizens Bank of
Massachusetts have been paid in full.

      (11) GENERAL. All agreements, instruments and proceedings in connection
with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to Bank, and Bank shall have received on the date of this
Agreement copies of all documents which it may have requested in connection with
this transaction, including, without limitation, certified copies of

                                       12
<PAGE>

resolutions adopted by the Boards of Directors of the Borrower and certificates
of good standing and incumbency certificates.

      SECTION 3.02. CONDITIONS PRECEDENT FOR THE BANK'S BENEFIT. The foregoing
conditions precedent exist solely for the Bank's benefit, and the Bank in its
sole discretion shall determine whether they have been satisfied.

                                   ARTICLE IV

                          REPRESENTATION AND WARRANTIES

      The Borrower represents and warrants to the Bank that:

      SECTION 4.01. INCORPORATION, GOOD STANDING, AND DUE QUALIFICATION. The
Borrower is a corporation duly incorporated, validly existing, and having an
active status under the laws of the jurisdiction of its incorporation; has the
corporate power and authority to own its assets and to transact the business in
which it is now engaged or proposed to be engaged; and is duly qualified as a
foreign corporation and in good standing under the laws of each other
jurisdiction in which such qualification is required, if any.

      SECTION 4.02. CORPORATE POWER AND AUTHORITY. The execution, delivery, and
performance by the Borrower of the Loan Documents to which each is a party has
been duly authorized by all necessary corporate action and does not and will not
(1) require any consent or approval of the stockholders of the Borrower or of
any other corporation; (2) contravene Borrower's charter or bylaws; (3) violate
any provision of any law, rule, regulation (including, without limitation,
Regulation U of the Board of Governors of the Federal Reserve System), order,
writ, judgment, injunction, decree, determination, or award presently in effect
having applicability to Borrower; (4) result in a breach of or constitute a
default under any indenture or loan or credit agreement or any other agreement,
lease, or instrument to which the Borrower is a party or by which it or its
properties may be bound or affected; (5) result in or require the creation or
imposition of any Lien upon or with respect to any of the properties now owned
or hereafter acquired by the Borrower; and (6) cause the Borrower to be in
default under any such law, rule, regulation, order, writ, judgment, injunction,
decree, determination, or award or any such indenture, agreement, lease, or
instrument.

      SECTION 4.03. LEGALLY ENFORCEABLE AGREEMENT. This Agreement is, and each
of the other Loan Documents to which the Borrower is a party, when delivered
under this Agreement will be, legal, valid, and binding obligations of the
Borrower enforceable against the Borrower in accordance with their terms, except
to the extent that such enforcement may be limited by applicable bankruptcy,
insolvency, and other similar laws affecting creditors' rights generally, and
principles of equity. Borrower represents and warrants that it is not insolvent
or contemplating filing a voluntary petition for bankruptcy nor is it aware of
any possibility or threat of being subject

                                       13
<PAGE>

to any petition for involuntary bankruptcy.

      SECTION 4.04. FINANCIAL STATEMENTS. All financial statements of Borrower
which have been furnished to the Bank, are complete (except that footnotes are
not included in interim financial statements) and correct and fairly present in
all material respects the financial condition of the Borrower and the results of
the operations of the Borrower for the periods covered by such statements, all
in accordance with GAAP consistently applied and there has been no material
adverse change in the condition (financial or otherwise), business, or
operations of the Borrower. There are no liabilities of the Borrower fixed or
contingent, which are material but are not reflected in the financial statements
or in the notes thereto, other than liabilities arising in the ordinary course
of business. No information, exhibit, or report furnished by the Borrower to the
Bank in connection with the negotiation of this Agreement contained any material
misstatement of fact or omitted to state a material fact or any fact necessary
to make the statement contained therein not materially misleading.

      SECTION 4.05. LABOR DISPUTES AND ACTS OF GOD. Neither the business nor the
properties of the Borrower are now affected by any fire, explosion, accident,
strike, lockout or other labor dispute, drought, storm, hail, earthquake,
embargo, act of God or of the public enemy, or other casualty, nor does the
Borrower have any reason to believe that they will be affected in the future, by
any strike, lockout or other labor dispute or embargo (whether or not any of the
foregoing are covered by insurance) materially and adversely affecting such
business or properties or the operation of the Borrower.

      SECTION 4.06. OTHER AGREEMENTS. The Borrower is not a party to any
indenture, loan, or credit agreement, or, to Borrower's knowledge, to any lease
or other agreement or instrument, or subject to any charter or corporate
restriction which could have a material adverse effect on the business,
properties, assets, operations, or conditions, financial or otherwise, of the
Borrower, or the ability of either of the Borrower to carry out its obligations
under the Loan Documents to which it is a party. The Borrower is not in default
in any respect in the performance, observance, or fulfillment of any of the
obligations, covenants, or conditions contained in any agreement or instrument
material to its business to which it is a party.

      SECTION 4.07. LITIGATION. There is no pending or, to Borrower's knowledge,
threatened action or proceedings against or affecting the Borrower before any
court, governmental agency or arbitrator which may, in any one case or in the
aggregate, materially adversely affect the financial condition, operations,
properties, or business of the Borrower or the ability of the Borrower to
perform its obligations under the Loan Documents to which it is a party.

      SECTION 4.08. NO DEFAULTS ON OUTSTANDING JUDGMENTS OR ORDERS. The Borrower
has satisfied all judgments against it and is not in default with respect to any
judgment, writ, injunction, decree, rule, or regulation of any court,
arbitrator, or federal, state, municipal, or other governmental authority,
commission, board, bureau, agency or instrumentality, domestic or foreign.

                                       14
<PAGE>

      SECTION 4.09. OWNERSHIP AND LIENS. The Borrower has title to, or valid
leasehold interests in, all of its properties and assets, real and personal,
including the properties and assets pledged as Collateral to the Bank (other
than any properties or assets disposed of in the ordinary course of business),
and none of the properties and assets owned by the Borrower is subject to any
Lien, except such as may be permitted pursuant to Section 6.01 of this
Agreement.

      SECTION 4.10. ERISA. Neither the Borrower nor any ERISA Affiliate (if any)
is party to or a participant in any Plan including, without limitation, any
Multiemployer Plan, that is subject to ERISA.

      SECTION 4.11. OPERATION OF BUSINESS. To the best of Borrower's knowledge,
the Borrower possesses all licenses, permits, franchises, patents, copyrights,
trademarks, and trade names, or rights thereto, necessary to conduct its
business substantially as now conducted and as presently proposed to be
conducted, and the Borrower is not in violation of any valid rights of others
with respect to any of the foregoing.

      SECTION 4.12. TAXES. The Borrower has filed all tax returns (federal,
state and local) required to be filed and has paid all taxes, assessments, and
governmental charges and levies thereon which are due, including interest and
penalties.

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS

      So long as the Note shall remain unpaid or the Bank shall have any
Commitment under this Agreement, the Borrower will:

      SECTION 5.01. MAINTENANCE OF EXISTENCE. Preserve and maintain its
corporate existence and good standing in the jurisdiction of its incorporation,
and qualify and remain qualified as a foreign corporation in each jurisdiction
in which such qualification is required.

      SECTION 5.02. MAINTENANCE OF RECORDS. Keep adequate records and books of
account, in which complete entries will be made in accordance with GAAP
consistently applied, reflecting all financial transactions of the Borrower.

      SECTION 5.03. MAINTENANCE OF PROPERTIES. Maintain, keep, and preserve, all
of its properties (tangible and intangible) necessary or useful in the proper
conduct of its business in good working order and condition, ordinary wear and
tear excepted.

      SECTION 5.04. CONDUCT OF BUSINESS. Continue to engage in an efficient and
economical

                                       15
<PAGE>

manner in business of the same general type as conducted by it on the date of
this Agreement.

      SECTION 5.05. MAINTENANCE OF INSURANCE. Maintain insurance with
financially sound and reputable insurance companies or associations in such
amounts and covering such risks as are usually carried by companies engaged in
the same or a similar business and similarly situated, which insurance may
provide for reasonable deductibility from coverage thereof, and shall include,
without limitation, (i) fire, theft and casualty insurance insuring property
pledged to secure the Loan in an amount of not less than full replacement value
and (ii) public liability insurance including, without limitation automobile and
appropriate liability coverage relating to the Collateral in the amount of not
less that $1,000,000.00 per occurrence and $2,000,000.00 annual aggregate, and
(iii) business interruption insurance. All personal property and Improvements
pledged as Collateral for the Loan shall be insured against fire, theft and
casualty loss to the full insurable value thereof but, anything in this section
to the contrary notwithstanding, need only be insured once, whether by one of
the Borrower or by the Borrower jointly. All policies of insurance shall name
the Bank as an additional insured, loss payee or primary beneficiary as its
interest may appear.

      Borrower shall immediately notify the Bank upon the occurrence of any
business interruption or of any casualty, damage or loss to Collateral or
seizure of any Collateral for any reason including, without limitation, action
of any foreign government.

      SECTION 5.06. COMPLIANCE WITH LAWS. Comply in all respects with all
applicable laws, rules, regulations, and orders, such compliance to include,
without limitation, paying before the same become delinquent all taxes,
assessments, and governmental charges imposed upon it or upon its property.

      SECTION 5.07. RIGHT OF INSPECTION. Upon reasonable prior notice, at any
reasonable time and from time to time, permit the Bank or any agent or
representative thereof to examine and make copies of and abstracts from the
records and books of account of, and visit the properties of, the Borrower, and
to discuss the affairs, finances, and accounts of the Borrower with any of its
officers and directors and the Borrower's independent accountants.

      SECTION 5.08. REPORTING REQUIREMENTS. Furnish to the Bank:

      (1) QUARTERLY FINANCIAL STATEMENTS. As soon as available and in any event
within forty five (45) days after the end of each quarter of each fiscal year of
the Borrower, statements of income of the Borrower and balance sheets for the
period commencing at the end of the previous fiscal year, if any, and ending
with the end of such quarter, and a statement of change in cash flow of the
Borrower for the portion of the fiscal year ended with the last day of such
quarter, all in reasonable detail and stating in comparative form the respective
figures for the corresponding date and period in the previous fiscal year, if
any, and all prepared in accordance with GAAP consistently applied (except for
footnotes) and certified by the controller or treasurer of the Borrower (subject
to year-end adjustments);

                                       16
<PAGE>

      (2) ANNUAL AUDITED FINANCIAL STATEMENTS. As soon as available and in any
event within ninety (90) days after the end of each fiscal year of the Borrower,
audited financial statements prepared by an independent certified public
accountant acceptable to the Bank including, without limitation, a balance sheet
of the Borrower as of the end of such fiscal year and a statement of income and
retained earnings of the Borrower for such fiscal year, and a statement of
change in cash flow, all in reasonable detail and stating in comparative form
the respective figures for the corresponding date and period in the prior fiscal
year, if any, and all prepared in compilation form by an independent certified
public accountant acceptable to the Bank in accordance with GAAP consistently
applied and certified by the controller or treasurer of the Borrower;

      (3) ENVIRONMENTAL REPORTS. Promptly upon sending same to any federal,
state or local environmental regulatory agency, copies of any reports or
assessments relating to the environmental condition of any real estate assets
owned, leased or controlled by Borrower including, without limitation, reports
or assessments relating to the presence, suspected presence, release or
discharge or suspected release or discharge of any Hazardous Material or
Hazardous Substance in or into the air, soil, surface water, groundwater or soil
vapor at, on, about, under, or within any of the real estate assets or any
portion thereof. Borrower shall, in any event, provide to the Bank any and all
environmental reports, test results or other assessments prepared by or for it
promptly upon receipt thereof by Borrower.

      (4) MANAGEMENT LETTERS. Promptly upon receipt thereof, copies of any
reports submitted to the Borrower by independent certified public accountants in
connection with examination of the financial statements of the Borrower or any
Subsidiary made by such accountants;

      (5) CERTIFICATE OF NO DEFAULT. Within forty five (45) days after the end
of each of the first three quarters of each fiscal year of each of the Borrower,
and concurrently with delivery to the Bank of the Borrower's annual, financial
statements, a certificate of the controller or treasurer of the Borrower (i)
certifying that to the best of his knowledge no Default or Event of Default has
occurred and is continuing or, if a Default or Event of Default has occurred and
is continuing, a statement as to the nature thereof and the action which is
proposed to be taken with respect thereto; and (ii) setting forth calculations
showing compliance with the financial covenants contained in Article VII of this
Agreement and certifying that such calculations are complete and accurate;

      (6) ACCOUNTANT'S REPORT. Simultaneously with the delivery of any annual
audited financial statements referred to in SECTION 5.08(2), a certificate of
each of the independent public accountants who prepared or reviewed such
statements to the effect that in making the examination necessary for the
preparation of such statements, they have obtained no knowledge of any condition
or event that would constitute a Default or Event of Default under this
Agreement or, if they have, specify in such certificate each such condition or
event of which they have knowledge and the nature and status thereof;

                                       17
<PAGE>

      (7) NOTICE OF LITIGATION. Promptly after the commencement thereof, notice
of all actions, suits, and proceedings before any court or governmental
department, commission, board, bureau, agency, or instrumentality, domestic or
foreign, affecting the Borrower or any Subsidiary, which, if determined
adversely to the Borrower or such Subsidiary, would have a material adverse
effect on the financial condition, properties, or operations of the Borrower or
such Subsidiary;

      (8) NOTICE OF DEFAULTS AND EVENTS OF DEFAULT. Immediately after the
occurrence of each Default or Event of Default, a written notice setting forth
the details of such Default or Event of Default and the action which is proposed
to be taken by the Borrower with respect thereto;

      (9) PROXY STATEMENTS, ETC. Promptly after the sending or filing thereof,
copies of all proxy statements, financial statements, and reports which the
Borrower or any corporation of which such Borrower is a Subsidiary sends to its
stockholders, and copies of all regular, periodic, and special reports, and all
registration statements which the Borrower or any parent corporation files with
the Securities and Exchange Commission or any governmental authority which may
be substituted therefor, or with any national securities exchange;

      (10) NOTICE OF ACQUISITION, BULK SALE, MERGER OR CHANGE IN CONTROL. Prior
to any (i) proposed acquisition of control of or purchase of all or any
substantial part of the assets of any corporation or business entity by the
Borrower; (ii) sale of all or any substantial part of the assets of the
Borrower; or (iii) any merger by the Borrower with any other entity whether or
not a Borrower is to survive the merger; the Bank shall be provided with not
less than thirty (30) days advance written notice.

      (11) NOTICE OF BUSINESS INTERRUPTION, ETC. The Borrower shall immediately
notify the Bank upon the occurrence of any business interruption, any casualty
or damage or loss of property which could have a material adverse effect on the
business of the Borrower for any reason, including, but not limited to any
action of any foreign government.

      (12) GENERAL INFORMATION. Such other information respecting the condition
or operations, financial or otherwise, of the Borrower or any subsidiary as the
Bank may from time to time reasonably request.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

      So long as the Note shall remain unpaid or the Bank shall have any
Commitment under this Agreement, the Borrower will not, without the prior
written consent of the Bank:

                                       18
<PAGE>

      SECTION 6.01. LIENS. Create, incur, assume, or suffer to exist, or permit
any Subsidiary to create, incur, assume, or suffer to exist, any Lien upon or
with respect to the Real Property Collateral except:

      (l) Liens for taxes or assessments or other government charges or levies
if not yet due and payable or, if due and payable, if they are being contested
in good faith by appropriate proceedings and for which appropriate reserves are
maintained;

      (2) Liens imposed by law, such as mechanics', materialmen's, landlords',
warehousemen's, and carriers' Liens, and other similar Liens, securing
obligations incurred in the ordinary course of business which are not past due
or which are being contested in good faith by appropriate proceedings and for
which appropriate reserves or bonds have been established;

      (3) Judgment and other similar Liens arising in connection with court
proceedings, provided the execution or other enforcement of such Liens is
effectively stayed and the claims secured thereby are being actively contested
in good faith and by appropriate proceedings;

      (4) Easements, rights-of-way, restrictions, and other similar encumbrances
which, in the aggregate, do not materially interfere with the occupation, use
and enjoyment by the Borrower or any Subsidiary of the Real Property Collateral
or materially impair the value of the Real Property Collateral;

      SECTION 6.02. MERGERS, BULK SALE OR ACQUISITION OF ASSETS, ETC. Merge or
consolidate with, or sell, assign, lease, or otherwise dispose of (whether in
one transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to any Person, or acquire all
or substantially all of the assets or the business of any Person, or permit any
Subsidiary to do so, except that (l) any Subsidiary may merge into or transfer
assets to the Borrower and (2) any Subsidiary may merge into or consolidate with
or transfer assets to any other Subsidiary.

      SECTION 6.03. SALE AND LEASEBACK. Sell, transfer, or otherwise dispose of,
or permit any subsidiary to sell, transfer, or otherwise dispose of, any real or
personal property to any Person and thereafter directly or indirectly lease back
the same or similar property, for less than fair market value.

      SECTION 6.04. SALE OF ASSETS. Except for (i) the sale of goods and
services in the ordinary course of Borrower's business, and (ii) the sale or
other disposition of assets that have reached the end of their useful life for
purposes of Borrower's business and which are to be replaced by assets of like
kind or function, sell, lease, assign, transfer, or otherwise dispose of any of
its now owned or hereafter acquired assets for other than a price equal to 90%
or more of the original purchase value to be paid to Borrower in currently
available funds at or prior to the transfer.

                                       19
<PAGE>

      SECTION 6.05. DIVIDENDS. Pay or distribute any dividends, distribution of
capital or redemption of stock except for consideration consisting of common
stock.

      SECTION 6.06. INVESTMENTS. Make, or permit any Subsidiary to make, any
loan or advance to any Person, or purchase or otherwise acquire, or permit any
Subsidiary to purchase or otherwise acquire, any capital stock or investment
other than in the ordinary course of business or other securities of, make any
capital contribution to, or otherwise invest in or acquire any interest in any
Person, except: (l) direct obligations of the United States or any agency
thereof with maturities of one year or less from the date of acquisition; (2)
commercial paper of a domestic issuer rated at least "A-l" by Standard & Poor's
Corporation or "P-l" by Moody's Investors Service, Inc.; (3) certificates of
deposit with maturities of one year or less from the date of acquisition issued
by any commercial bank having capital and surplus in excess of Twenty Million
Dollars ($20,000,000.00); and (4) stock, obligations, or securities received in
settlement of debts (created in the ordinary course of business) owing to the
Borrower or any Subsidiary. Nothing in this SECTION 6.06 shall be deemed to
prohibit (i) any transaction permitted under SECTION 6.02; (ii) loans or
advances by the Borrower or any Subsidiary to Borrower or any other Subsidiary,
(iii) inter-company capital contributions between or among Borrower and any
Subsidiaries, (iv) loans to employees for travel and other business related
expenses, (v) investments in swap agreements, and (v) loans and investments
existing on the date of this Agreement.

      SECTION 6.07. TRANSACTION WITH AFFILIATE. Make any loans to any Affiliate
nor enter into any transaction, including, without limitation, the purchase,
sale, or exchange of property or the rendering of any service, with any
Affiliate including, without limitation, the purchase, sale or exchange of
property or the rendering of any service, with any Affiliate, except in the
ordinary course of and pursuant to the reasonable requirements of the Borrower's
business and upon fair and reasonable terms no less favorable to the Borrower
than would obtain in a comparable arm's-length transaction with a Person not an
Affiliate. Transactions described in this section which exist on the date of
this Agreement shall not be deemed to be prohibited hereunder.

      SECTION 6.08. STOCK OF SUBSIDIARY, ETC. Sell or otherwise dispose of any
shares of capital stock of any Subsidiary or permit any Subsidiary to issue any
additional shares of its capital stock other than to Borrower or another
Subsidiary.

      SECTION 6.09. GUARANTIES AND CONTINGENT LIABILITIES. Enter into any
guaranty agreement whereby the Borrower guaranties payment or performance of any
indebtedness or obligations of any Person; nor assume any contingent liability
of any kind or character whatsoever. This section shall not be deemed to
prohibit guaranties existing on the date of this Agreement nor guaranties
entered into on or as of the date of this Agreement in favor of Congress
Financial Corporation or GATX Capital Corporation.

      SECTION 6.10 DEBT. Enter into any capitalized leases or incur any
indebtedness, whether direct or contingent, other than trade payables, equipment
leases and normal accrued expenses

                                       20
<PAGE>

which arise under normal operation of Borrower's business. This section shall
not be deemed to prohibit indebtedness existing on the date of this Agreement
nor indebtedness undertaken on or as of the date of this Agreement payable to
Congress Financial Corporation or GATX Capital Corporation.

                                   ARTICLE VII

                               FINANCIAL COVENANTS

                                   [RESERVED]

                                  ARTICLE VIII

                                EVENTS OF DEFAULT

      SECTION 8.01. EVENTS OF DEFAULT. The occurrence of any of the following
events shall constitute an Event of Default:

      (l) The Borrower should fail to pay the principal of or interest on the
Note, or any amount of fee, as and when due and payable;

      (2) Any representation or warranty made or deemed made by the Borrower in
this Agreement or which is contained in any certificate, document, opinion, or
financial or other statement furnished at any time under or in connection with
any Loan Document shall prove to have been incorrect in any material respect on
or as of the date made or deemed made;

      (3) Borrower shall fail to perform or observe any term, covenant, or
agreement or defaults under any material provision contained in any Loan
Document to which it is a party on its part to be performed or observed and
fails to cure within thirty (30) days after receipt of written notice of default
from the Bank;

      (4) Borrower, or any of its Subsidiaries, if any, shall (a) fail to pay
any indebtedness for borrowed money (other than the Note), or any interest or
premium thereon, when due or within any applicable grace period (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise), or
(b) fail to perform or observe any material term, covenant, or condition on its
part to be performed or observed under any agreement or instrument relating to
any such indebtedness, when required to be performed or observed, if the effect
of such failure of payment or to perform or observe is to accelerate, or to
permit the acceleration after the giving of notice or passage of time, or both,
of the maturity of such indebtedness; or any such indebtedness shall be declared
to be due and payable, or required to be prepaid (other than by a regularly
scheduled

                                       21
<PAGE>

required prepayment), prior to the stated maturity thereof;

      (5) Borrower (a) shall generally not, or shall be unable to, or shall
admit in writing its inability to pay its debts as such debts become due; or (b)
shall make an assignment for the benefits of creditors, petition or apply to any
tribunal for the appointment of a custodian, receiver, or trustee for it or a
substantial part of its assets; or (c) shall commence any proceeding under any
bankruptcy, reorganization, arrangements, readjustment of debt, dissolution, or
liquidation law or statute of any jurisdiction, whether now or hereafter in
effect; or (d) shall have any such petition or application filed or any such
proceeding commenced against it in which an order for relief is entered or
adjudication or appointment is made and which remains undismissed for a period
of thirty (30) days or more; or (e) by any act or omission shall indicate its
consent to, approval of, or acquiescence in any such petition, application, or
proceeding, or order for relief, or the appointment of a custodian, receiver, or
trustee for all or any substantial part of its properties; or (f) shall suffer
any such custodianship, receivership, or trusteeship to continue undischarged
for a period of Thirty (30) days or more;

      (6) Any event of default (after the expiration of any applicable grace or
cure period) as defined in any loan or similar agreement to which the Borrower
is now or hereafter a party, or any other event thereunder or upon the
occurrence of which any holder or holders of indebtedness outstanding thereunder
may declare the same due and payable, shall occur;

      (7) One or more judgments, decrees, or orders for the payment of money in
excess of One Hundred Thousand Dollars ($100,000.00) in the aggregate shall be
rendered against the Borrower and such judgments, decrees, or orders shall
continue unsatisfied and in effect for a period of thirty (30) consecutive days
without being vacated, discharged, satisfied, or stayed or bonded pending
appeal;

      (8) Borrower shall in any material respect fail to comply with any
material statute, rule, regulation, ordinance, order, or other law or judicial
decree regarding Borrower, their premises or assets;

      SECTION 8.02. ACTION IF BANKRUPTCY. If any Event of Default described in
SECTION 8.01 (5) shall occur, the Commitment (if not theretofore terminated)
shall automatically terminate and the outstanding principal amount of all
outstanding Loans and advances and all other obligations of the Borrower under
the Loan Documents shall automatically be and become immediately due and
payable, without notice or demand or presentment and the Bank shall, subject to
limitations imposed by laws relating to bankruptcy, moratorium and equitable
limitations on enforcement of creditors' rights generally, pursue any and all
rights of the Bank under the Loan Documents including, without limitation,
foreclosure as to any and all pledged Collateral.

      SECTION 8.03. ACTION IF OTHER EVENT OF DEFAULT. Upon the occurrence of any
of the events described in SECTION 8.01 (2), (3), (4), (6), (7) OR (8), the
Borrower shall have thirty (30)

                                       22
<PAGE>

days after receipt of written notice from the Bank (which may be given by
telefacsimile) within which to effect a cure. If any Event of Default (other
than any Event of Default described in SECTION 8.01 (5) with respect to the
Borrower) shall occur for any reason, whether voluntary or involuntary, and be
continuing after any applicable cure period, then, and in any such event, the
Bank may; (l) declare its obligations under this Agreement to be terminated,
whereupon the same shall forthwith terminate; (2) declare the Note, all interest
thereon, and all other amounts payable under this Agreement and the Loan
Documents to be forthwith due and payable, whereupon the Note, all such
interest, and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest, or further notice of any kind, all of
which are hereby expressly waived by the Borrower; and (3) pursue any and all
rights of the Bank under the Loan Documents including, without limitation,
foreclosure as to any and all pledged Collateral.

                                   ARTICLE IX

                                  MISCELLANEOUS

      SECTION 9.01. AMENDMENTS, ETC. No amendment, modification, termination, or
waiver of any provision of any Loan Document to which the Borrower is a party,
nor consent to any departure by the Borrower from any Loan Document to which it
is a party, shall in any event be effective unless the same shall be in writing
and signed by the Bank, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.

      SECTION 9.02. NOTICES, ETC. All notices and other communications provided
for under this Agreement and under the other Loan Documents to which the
Borrower is a party shall be in writing (including telefacsimile) and mailed or
delivered, if to the Borrower, at 8675 Hidden River Parkway, Tampa, FL 33637,
Fax No. (813) 632-3301, Attention: President; and if to the Bank, at its address
at 420 North 20th Street, Birmingham, AL 35203, Attn. Florida Corporate (Tampa),
with copy to the Bank at Fax No. 727-898-5319; or, as to each party, at such
other address as shall be designated by such party in a written notice to the
other party complying as to delivery with the terms of this SECTION 9.02. All
such notices and communications shall, when mailed or delivered, be effective
when deposited in the mails or delivered to the courier service, respectively,
addressed as aforesaid, except that notices to the Bank pursuant to the
provisions of Article II shall not be effective until received by the Bank.
Notices sent by telefacsimile shall be deemed to be effective upon machine
confirmation of receipt.

      SECTION 9.03. NO WAIVER; REMEDIES. No failure on the part of the Bank to
exercise, and no delay in exercising, any right, power, or remedy under any Loan
Documents shall operate as a waiver thereof; nor shall any single or partial
exercise of any rights under any Loan Documents preclude any other or further
exercise thereof or the exercise of any other right. The remedies provided in
the Loan Documents are cumulative and not exclusive of any remedies provided by
law.

                                       23
<PAGE>

      SECTION 9.04. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and inure to the benefit of the Borrower and the Bank and their respective
successors and assigns, except that the Borrower may not assign or transfer any
of its rights under any Loan Document to which the Borrower is a party without
the prior written consent of the Bank.

      SECTION 9.05. COSTS, EXPENSES, AND TAXES. The Borrower agrees to pay on
demand all costs and expenses in connection with the preparation, execution,
delivery, filing, recording, and administration of any of the Loan Documents,
including, without limitation, the reasonable fees and out-of-pocket expenses of
counsel for the Bank, with respect thereto and with respect to advising the Bank
as to its rights and responsibilities under any of the Loan Documents, and all
costs and expenses, if any, in connection with the enforcement of any of the
Loan Documents. In addition, the Borrower shall pay any and all stamp and other
taxes and fees payable or determined to be payable in connection with the
execution, delivery, filing and recording of any of the Loan Documents and the
other documents to be delivered under any such Loan Documents, and agrees to
save the Bank harmless from and against any and all liabilities with respect to
or resulting from any delay in paying or omission to pay such taxes and fees.

      SECTION 9.06. RIGHT OF SETOFF. Upon the occurrence and during the
continuance of any Event of Default the Bank is hereby authorized at any time
and from time to time, without notice to the Borrower (any such notice being
expressly waived by the Borrower), to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by the Bank to or for the credit or the
account of the Borrower against any and all of the obligations of the Borrower
now or hereafter existing under this Agreement or the Note or any other Loan
Document, irrespective of whether or not the Bank shall have made any demand
under this Agreement or the Note or such other Loan Document and although such
obligations may be unmatured. The Bank agrees promptly to notify the Borrower
after any such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application. The rights
of the Bank under this SECTION 9.06 are in addition to other rights and remedies
(including, without limitation, other rights of setoff) which the Bank may have.

      SECTION 9.07. GOVERNING LAW AND VENUE. This Agreement and the Note and all
Loan Documents shall be governed by, and construed in accordance with, the laws
of the State of Florida. Any suit brought under or relating to this Agreement,
the Note or any Loan Document shall be brought exclusively in a court of
competent jurisdiction in either Pinellas County or Hillsborough County,
Florida. The prevailing party in any action brought under or relating to this
Agreement, the Note or any Loan Document shall be entitled to recover its
reasonable attorneys' fees, paralegal's fees and costs of suit, including fees
and costs on appeal and in bankruptcy proceedings.

      SECTION 9.08. SEVERABILITY OF PROVISIONS. Any provision of any Loan
Document which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the

                                       24
<PAGE>

extent of such prohibition or unenforceability without invalidating the
remaining provisions of such Loan Document or affecting the validity or
enforceability of such provision in any other jurisdiction.

      SECTION 9.09. HEADINGS. Article and Section headings in the Loan Documents
are included in such Loan Documents for the convenience of reference only and
shall not constitute a part of the applicable Loan Documents for any other
purpose.

      SECTION 9.10. WAIVER OF JURY TRIAL. As an important inducement to the Bank
to enter this Agreement, Borrower each waive the right to trial by jury in any
action arising under or in any way related to this Agreement.

      SECTION 9.11. CONSTRUCTION. Unless the context of this Agreement clearly
requires otherwise, references to the plural include the singular, references to
the singular include the plural, the term "including" is not limiting, and the
term "or" has, except where otherwise indicated, the inclusive meaning
represented by the phrase "and/or". The word "Borrower" shall include multiple
borrowers, each constituting a Borrower, where more than one party signs this
Agreement as Borrower in which case all obligations and undertakings of the
Borrower hereunder shall be joint and several obligations of each of the parties
constituting the Borrower. The words "hereof", "herein", "hereby", "hereunder",
and similar terms in this Agreement refer to this Agreement as a whole and not
to any particular provision of this Agreement. Section, subsection, clause,
schedule and exhibit references are to this Agreement unless otherwise
specified. Any reference in this Agreement or in the Loan Documents to this
Agreement or any of the Loan Documents shall include all alterations,
amendments, changes, extensions, modifications, renewals, replacements,
substitutions, and supplements thereto and thereof, as applicable.

      SECTION 9.12. LOAN COMMITMENT. The terms and provisions of the Bank's
commitment letter to Borrower dated February 9, 2001, are incorporated herein by
reference.

      IN WITNESS WHEREOF, the parties have caused this Credit Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

SOUTHTRUST BANK                                JLM INDUSTRIES, INC.

By: /s/ Leslie A. Fredericks                   By: /s/ Michael E. Hayes
   ------------------------------------           ------------------------------
   Leslie A. Fredericks, Vice President           Print Name: Michael E. Hayes
                                                  Title: Vice President

                                       25
<PAGE>

                                   EXHIBIT "A"
                             FORM OF PROMISSORY NOTE

                                 PROMISSORY NOTE

$1,885,000.00                                         June 15, 2001

      Being indebted for value received, JLM INDUSTRIES, INC., a Florida
corporation, (referred to herein as the "Borrower"), promises to pay to
SOUTHTRUST BANK, an Alabama banking corporation (the "Lender"), or order, at its
offices in the City of Birmingham, Alabama, the sum of ONE MILLION EIGHT HUNDRED
EIGHTY FIVE THOUSAND AND NO/100 DOLLARS ($1,885,000.00) together with interest
on the unpaid balance from the date of disbursement until maturity as provided
in a Credit Agreement (the "Credit Agreement") of even date herewith between
Lender and Borrower. Interest shall be calculated on the basis of an assumed
year of 360 days for the actual number of days elapsed.

      Capitalized terms not otherwise defined herein shall have the meanings
ascribed thereto in the Credit Agreement the terms of which are incorporated
herein by reference.

      Borrower shall pay to Lender monthly installment payments of principal
plus interest as provided in the Credit Agreement commencing with a payment on
July 15, 2001, and on the same day of each month thereafter until June 15, 2004
(the "Maturity Date").

      The remaining principal balance together with all accrued interest and all
other sums payable under this Note or any Mortgage securing payment of this
Note, if not sooner paid, shall be due and payable in a single payment and shall
be paid on the Maturity Date. Payment shall be made at the Maturity Date without
demand, counterclaim, offset, deduction or defense, (whether now or hereafter
conferred by statute or otherwise.)

      All payments made upon this Note shall be applied first to payment of any
costs and expenses to which the Lender may be entitled under any Loan Document,
then to accrued interest and thereafter to payment of principal.

      Any payment not received within ten (10) days when due shall be subject
to, and it is agreed that the holder hereof shall collect thereon, a "late
charge" in the amount of five percent (5%) of the amount of the delinquent
payment to defray costs of collection and losses of the holder. Said late charge
shall be immediately due and payable and shall be paid by the maker hereof
without notice or demand by the holder. The holder's entitlement to collect a
late charge shall in no way detract from or affect its right to accelerate
payment of this Note in the event of a failure by Borrower to make any payment
hereunder when due.

      Privilege is hereby reserved to prepay the principal of this Note in whole
or in part at any

                                       26
<PAGE>

time as provided in the Credit Agreement.

      Notwithstanding any other provision of this Note or of any instrument
securing this Note or any other instrument executed in connection with the Loan
evidenced hereby, it is expressly agreed that amounts payable under this Note or
under the other aforesaid instruments for the payment of interest or any other
payment in the nature of or which would be considered as interest or other
charge for the use or loan of money shall not exceed the highest rate allowed by
law, from time to time, and in the event the provisions of this Note or of such
other instruments referred to above in this paragraph with respect to the
payment of interest or other charge for the use or loan of money shall result in
exceeding such limitation, then the excess over such limitation shall not be
payable and the amount otherwise agreed to have been paid shall be reduced by
the excess so that such limitation will not be exceeded, and if any payment
actually made shall result in such limitation being exceeded, the amount of the
excess shall constitute and be treated as a payment on the principal hereof and
shall operate to reduce such principal by the amount of such excess, or if in
excess of the principal indebtedness, such excess shall be refunded.

      This Note shall be in default upon any default or event by which, under
the terms of this Note, any mortgage securing this Note, the Credit Agreement,
or any Document executed in connection with the Loan evidenced by any of such
documents, this Note may or shall become due and payable. In any event, this
Note shall be in default upon failure of the Borrower to make any payment
hereunder when due without notice or demand. In the event of default, the holder
of this Note may, at its option, declare all unpaid indebtedness evidenced by
this Note and any modifications thereof, immediately due and payable without
notice regardless of the date of maturity. Failure at any time to exercise this
option shall not constitute a waiver of the right to exercise the same at any
other time. In the event of the acceleration of this Note by reason of default,
any unearned interest in the payments precipitated to maturity will be
eliminated.

      From and after the stated, or if this Note is accelerated, the
accelerated, maturity date of this Note, it shall bear interest at the Default
Rate.

      The parties acknowledge that this Note may be assigned and that any holder
of this Note shall be entitled to recover directly against any endorser or
guarantor hereof without first proceeding against the Borrower or any other
party.

      Each Obligor (which term shall mean and include each Borrower, endorser,
and all others who may become liable for all or any part of the obligations
evidenced and secured hereby), does hereby jointly and severally: (a) consent to
any forbearance or extension of the time or manner of payment hereof and to the
release of all or any part of any security held by the Lender to secure payment
of this Note and to the subordination of the lien of the mortgage and any other
instrument of security securing this Note as to all or any part of the property
encumbered thereby, all without notice to or consent of that party; (b) agree
that no course of dealing or delay or omission or forbearance on the part of the
Lender in exercising or enforcing any of its rights or remedies

                                       27
<PAGE>

hereunder or under any instrument securing this Note shall impair or be
prejudicial to any of the Lender's rights and remedies hereunder or to the
enforcement hereof and that the Lender may extend, modify or postpone the time
and manner of payment and performance of this Note and any instrument securing
this Note, may grant forbearance and may release, wholly or partially, any
security held by the Lender as security for this Note and release, partially or
wholly, any person or party primarily or secondarily liable with respect to this
Note, all without notice to or consent by any party primarily or secondarily
liable hereunder and without thereby releasing, discharging or diminishing its
rights and remedies against any other party primarily or secondarily liable
hereunder; and (c) waive notice of acceptance of this Note, notice of the
occurrence of any default hereunder or under any instrument securing this Note
and presentment, demand, protest, notice of dishonor and notice of protest and
notices of any and all action at any time taken or omitted by the Lender in
connection with this Note or any instrument securing this Note and waives all
requirements necessary to hold that party to the liability of that party.

      All parties liable for the payment of this Note agree to pay the Lender
reasonable attorneys' fees and costs, whether or not an action be brought, for
the services of counsel employed after maturity or default to collect this Note
or any principal or interest due hereunder, or to protect the security, if any,
or enforce the performance of any other agreement contained in this Note or in
any instrument of security as aforesaid, including costs and attorneys' fees on
any appeal, or in any proceedings under the Bankruptcy Code or in any post
judgment proceedings.

      This Note is executed under seal.

                                    JLM INDUSTRIES, INC.

                                    By:__________________________
                                       Print Name and Title:

                                       28

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