Document:

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                                  EXHIBIT 10.8

                   Office Lease - XXI Office Plaza Associates
            20030 Century Boulevard, Suite 201, Germantown, Maryland

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                       TABLE OF CONTENTS

     Section                                                 Page
     -------                                                 ----
1.   Definitions . . . . . . . . . . . . . . . . . . . . . . . .1
2.   Demised Premises and Term . . . . . . . . . . . . . . . . .2
3.   Payment of Rent . . . . . . . . . . . . . . . . . . . . . .3
4.   Annual Base Rent. . . . . . . . . . . . . . . . . . . . . .3
5.   Additional Rent . . . . . . . . . . . . . . . . . . . . . .5
6.   Permitted Use . . . . . . . . . . . . . . . . . . . . . . 10
7.   Governmental Compliance . . . . . . . . . . . . . . . . . 10
8.   Surrender of Demised Premises at Lease Expiration . . . . 11
9.   Assignment and Subletting . . . . . . . . . . . . . . . . 11
10.  Insurance . . . . . . . . . . . . . . . . . . . . . . . . 12
11.  Alterations . . . . . . . . . . . . . . . . . . . . . . . 15
12.  Rules and Regulations . . . . . . . . . . . . . . . . . . 16
13.  Access to Demised Premises by Landlord. . . . . . . . . . 16
14.  Tenant's Repair Obligations . . . . . . . . . . . . . . . 16
15.  Landlord's Repair Obligations . . . . . . . . . . . . . . 17
16.  Personal Property of Tenants. . . . . . . . . . . . . . . 17
17.  Utilities/Supplies. . . . . . . . . . . . . . . . . . . . 17
18.  Defaults. . . . . . . . . . . . . . . . . . . . . . . . . 18
19.  Remedies. . . . . . . . . . . . . . . . . . . . . . . . . 19
20.  Fire or Other Casualty. . . . . . . . . . . . . . . . . . 23
21.  Subordination . . . . . . . . . . . . . . . . . . . . . . 24
22.  Condemnation. . . . . . . . . . . . . . . . . . . . . . . 25
23.  Holding Over. . . . . . . . . . . . . . . . . . . . . . . 25
24.  Landlord Advances . . . . . . . . . . . . . . . . . . . . 25
25.  Security Deposit. . . . . . . . . . . . . . . . . . . . . 25
26.  No Further Representations. . . . . . . . . . . . . . . . 25
27.  Force Majeure . . . . . . . . . . . . . . . . . . . . . . 25
28.  Estoppel Certificates . . . . . . . . . . . . . . . . . . 26
29.  Real Estate Brokers . . . . . . . . . . . . . . . . . . . 26
30.  Common Areas. . . . . . . . . . . . . . . . . . . . . . . 26
31.  Mechanics' Liens. . . . . . . . . . . . . . . . . . . . . 26
32.  Notices . . . . . . . . . . . . . . . . . . . . . . . . . 27
33.  Quiet Enjoyment . . . . . . . . . . . . . . . . . . . . . 27
34.  Rights Reserved to Landlord . . . . . . . . . . . . . . . 27
35.  Relocation of Demised Premises. . . . . . . . . . . . . . 27
36.  Environmental Compliance. . . . . . . . . . . . . . . . . 28
37.  Communications and Computer Equipment . . . . . . . . . . 29
38.  Default by Landlord . . . . . . . . . . . . . . . . . . . 30
39.  Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 30
40.  Governing Law . . . . . . . . . . . . . . . . . . . . . . 32

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EXHIBITS

There is attached hereto and incorporated as a part of this Lease:

     Rider
     EXHIBIT "A" - Floor Plan of Demised Premises
     EXHIBIT "B" - Rules and Regulations
     EXHIBIT "C" - License Agreement
     EXHIBIT "D" - Space Plan and Work Letter
     EXHIBIT "E" - Clarifications Relating to Operating Expenses

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     THIS LEASE dated this _____________ day of October, 1999 entered into by
and between "Landlord" (as herein defined) and "Tenant" (as herein defined).

1.   Definitions. For the purpose of this Lease, the terms set forth below shall
     have the meanings or be assigned the amounts corresponding thereto:

     (a)  "LANDLORD":            XXI Office Plaza Associates, an Illinois
                                 limited partnership

     (b)  "LANDLORD'S ADDRESS":  c/o Savitar Realty Advisors as Managing Agent
                                 2301 W. Sample Road, Building 3, Suite 5A
                                 Pompano Beach, Florida 33073
                                 954-979-6730

     (a)  "TENANT":              TEK DIGITEL, INC.

     (b)  "TENANT'S ADDRESS":    20030 Century Boulevard, Suite 201,
                                 Germantown, MD 20874

     (c)  "BUILDING":            The office building known as
                                 20030 Century Boulevard of Century XXI Office
                                 Complex, Germantown, Maryland 20874

     (d)  "DEVELOPMENT":         The three (3) buildings which comprise
                                 Century XXI Office Complex and the
                                 garage, parking lot and other improvements
                                 appurtenant thereto

     (e)  "DEMISED PREMISES":    Suite 201 which is located in the Building
                                 and is outlined on the floor plan attached
                                 hereto as Exhibit "A"

     (f)  "RENTABLE SQUARE FEET
          IN DEMISED PREMISES":  Approximately 7,147 square feet

     (i)  "RENTABLE SQUARE FEET
          IN DEVELOPMENT":       Approximately 163,854 square feet

     (j)  "COMMENCEMENT DATE":   November 15, 1999
                                 which date is subject to adjustment pursuant to
                                 Section 2 hereof.

     (a)  "EXPIRATION DATE":     Five years from the Commencement Date

     (b)  "TERM":                Five years from the Commencement Date.

     (c)  "ANNUAL BASE RENT":    Term               Annually

                                 Month 1-2        $114,351.96
                                 Month 13-24      $117,782.52
                                 Month 25-36      $121,316.04
                                 Month 37-48      $124,955.52
                                 Month 49-60      $128,704.20

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     (a)  "MONTHLY BASE RENT":   Term               Annually

                                 Month 1-2        $ 9,529.33
                                 Month 13-24      $ 9,815.21
                                 Month 25-36      $10,109.67
                                 Month 37-48      $10,412.96
                                 Month 49-60      $10,725.35

     (a)  "TAX BASE":            Based on the actual tax bill for Tax Year
                                 July 1, 1999 to June 30, 2000

     (b)  "OPERATING EXPENSE BASE":
               Based on actual Operating Expenses for and attributable to the
               calendar year 1999

     (a)  "BASE CPI AMOUNT"      n/a

     (b)  "TENANT'S PROPORTIONATE
          SHARE":                4.36%

     (a)  "PERMITTED USES":      General administrative offices

     (b)  "BROKERS":             Scheer Partners, Inc. and Insignia/ESG

     (c)  "SECURITY DEPOSIT":    $19,058.66, which amount shall be deposited
                                 with Landlord simultaneously upon Tenant's
                                 execution of the Lease Agreement

          "PREPAID RENT":        $38,117.32, four months Base Rent, which amount
                                 shall be deposited with Landlord simultaneously
                                 upon Tenant's execution of the Lease Agreement

     (v)  "DATE OF LEASE":       The date Landlord executes this Lease after
                                 receiving originals executed by Tenant (See
                                 top of this Page 1 for date)

     (w)  "RENT":                A collective term for Annual Base Rent,
                                 adjustments to Annual Base Rent, Additional
                                 Rent, and all other amounts becoming due from
                                 Tenant to Landlord hereunder.

     2. Demised Premises and Term. (a) Landlord hereby leases to Tenant, and
Tenant hereby leases from Landlord, subject to the terms, covenants and
conditions of this Lease, the Demised Premises in the Building for the Term set
forth in Section 1 hereof, unless such right is sooner terminated as provided
herein, commencing on the Commencement Date and ending on the Expiration Date.
The Demised Premises are outlined on the floor plan attached hereto and made a
part hereof as Exhibit "A". The sole purpose of the attached floor plan is to
identify the general location of the Demised Premises in the Building and such
floor plan is not a representation as to the actual size of the Premises.

     (b) The "Commencement Date" shall be the earlier of the date set forth in
Section 1 hereof or the date that Tenant first uses the Demised Premises or any
portion thereof for any purpose permitted under this Lease. Notwithstanding the
foregoing, in the event this Lease involves interior finish improvements to be
constructed in the Demised Premises by Landlord ("Landlord's Work"), the
"Commencement Date" shall be the later of the foregoing date or the date upon
which Landlord's Work shall have been substantially completed, provided however,
that if Landlord shall be delayed in such substantial completion as a result of:
(i) Tenant's request for materials, finishes or installations other than
Landlord's building standard; (ii) Tenant's changes to the Space Plan described
in Exhibit "D" after lease execution by Tenant; or (iv) any other

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act, omission or delay by Tenant; the Commencement Date shall be accelerated by
the number of days of such delay, and provided further that if Landlord cannot
substantially complete the Demised Premises as a result of any events (i)
through (iv) above, Landlord may as its election complete so much of Landlord's
Work as may be practical under the circumstances and, by written notice to
Tenant, establish the Commencement Date as the date of such partial completion,
subject to any applicable accelerations due to delays resulting from events (i)
through (iv) above. Taking possession by Tenant shall be deemed conclusively to
establish that the Demised Premises have been completed in accordance with the
Space Plan described in Exhibit "D" and that the Demised Premises are in good
and satisfactory condition, as of when possession was so taken. Tenant
acknowledges that no representations as to the repair of the Demised Premises
have been made by Landlord, unless such are expressly set forth in this Lease.
After such "Commencement Date" Tenant shall, upon demand, execute and deliver to
Landlord a letter of acceptance of delivery of the Demised Premises. In the
event of any dispute as to substantial completion of Landlord's Work, the
certificate of Landlord's a third party architect or contractor shall be
conclusive. If Landlord shall be unable to give possession of the Demised
Premises on the Commencement Date because the Demised Premises are not ready for
occupancy or if Landlord's Work is not completed, or for any other reason,
Landlord shall not be subject to any liability for failure to give possession on
said date, nor shall such failure affect the continuing validity of this Lease
or be deemed to affect the Term of the Lease, but in such event Tenant shall not
be liable for any Rent until such time as Landlord tenders delivery of
possession of the Demised Premises to Tenant ready for occupancy. The Demised
Premises shall not be deemed to be unready for Tenant's occupancy or incomplete
if only minor or insubstantial details of construction, decoration or mechanical
adjustments remain to be done in the Demised Premises or any part thereof.

     (c) In connection with Landlord's Work, where compliance is required by the
Americans with Disabilities Act ("ADA"), Landlord shall comply with the ADA in
all respects where said compliance is readily achievable. To the best of
Landlord's knowledge, all aspects of the interior finish work to be performed as
Landlord's work shall comply with ADA specifications. After the Commencement
Date, and subject to the foregoing, where said compliance is readily achievable,
Landlord shall comply with ADA in the common areas of the Building as such
compliance relates to the general operation of the Building and Tenant shall be
responsible for ADA compliance both within the Premises and within the Building
to the extent compliance relates to Tenant's use of the Demised Premises or use
of the Demised Premises by Tenant's employees, agents or invitees. Both Landlord
and Tenant shall be given ample and appropriate opportunity to challenge any ADA
compliance order or notice received from the applicable governmental authority.

     3. Payment of Rent. All Annual Base Rent and Additional Rent payable by
Tenant pursuant to the terms of this Lease shall be paid to Landlord, without
notice or demand and without deduction, abatement or set off of any kind, c/o
Savitar Realty Advisors as Managing Agent for the Landlord, 2301 W. Sample Road,
Building 3, Suite 5A, Pompano Beach, Florida 33073 or by Electronic Funds
Transfer to Landlord's banking institution or to such other person, firm or
corporation as Landlord may, from time to time, designate in writing. The
covenant of payment of Rent is an independent covenant of Tenant in this Lease.
If the Term commences on a date other than the first day of a calendar month, or
ends on a date other than the last day of a calendar month, then the Rent
(including all Annual Base Rent payable pursuant to Section 4 hereof and all
Additional Rent payable pursuant to Section 5 hereof) for such partial calendar
month shall be prorated on the basis of the actual number of days in such month
included within the Term hereof.

     4. Annual Base Rent. Tenant shall pay to Landlord, throughout the Term of
this Lease the Annual Base Rent set forth in Subsection 1(m) as follows:

          (a) Annual Base Rent shall be payable in twelve (12) equal monthly
     installments of the Monthly Base Rent set forth in Subsection 1(n) with
     each monthly installment to be due and payable in advance on or before the
     first day of each and every month during the Term of this Lease, except
     that Monthly Base Rent for the first four full calendar month for which
     Monthly Base Rent shall be due, shall be paid when Tenant executes this
     Lease ("Prepaid Rent").

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     5. Additional Rent. Tenant covenants and agrees to pay to Landlord,
throughout the Term of this Lease, Additional Rent in accordance with the
following terms:

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          (a)  Definition of Operating Expenses.

               (1) For purposes of this Section 5, the term "Operating Expenses"
          shall mean and include all expenses, costs, fees and disbursements
          paid or incurred by or on behalf of the Landlord of every kind and
          nature for owning, managing, operating, maintaining, restoring and
          repairing the Development and the personal property used in
          conjunction therewith, including (without limitation) the cost of
          electricity, steam, water, sewer, gas, fuel, heating, lighting, air
          conditioning, window cleaning, janitorial services, insurance,
          including but not limited to, fire, extended coverage, liability,
          workmen's compensation, elevator, or any other insurance carried by
          the Landlord and applicable to the Development, painting, uniforms,
          management fees, supplies, sundries, sales or use taxes on supplies or
          services, cost of wages and salaries of all persons engaged in the
          operation, administration, maintenance and repair of the Development,
          and fringe benefits, including social security taxes, unemployment
          insurance taxes, cost for providing coverage for disability benefits,
          cost of any pensions, hospitalization, welfare or retirement plans, or
          any other similar or like expenses incurred under the provisions of
          any collective bargaining agreement, or any other cost or expense
          which Landlord pays or incurs to provide benefits for employees so
          engaged in the operation, administration, maintenance and repair of
          the Development, the charges of any independent contractor who, under
          contract with the Landlord or its representatives, does any of the
          work of operating, maintaining or repairing of the Development, legal
          and accounting expenses, any expenses allocated to the Development
          under any reciprocal easement or other agreements relating to any
          common facilities and services appurtenant to the Development, or any
          other expense or charge, whether or not hereinbefore mentioned, which
          in accordance with generally accepted accounting or management
          principles would be considered as an expense of owning, managing,
          operating, maintaining or repairing the Development. In order to avoid
          or reduce the impact of artificial distortions in any given year,
          certain Operating Expenses may be amortized by Landlord over a period
          of several years or Landlord may make equitable adjustments where an
          item of Operating Expenses is not representative of what is typical
          for a particular calendar year. The term Operating Expenses shall not
          include costs or other items included within the meaning of the term
          "Taxes" (as hereinafter defined), costs of alterations of the premises
          of tenants of the Development, costs of capital improvements to the
          Development, depreciation charges, interest and principal payments on
          mortgages, ground rental payments, and real estate brokerage and
          leasing commissions, except as hereinafter otherwise provided.

               (2) Notwithstanding anything contained in this Subsection 5(a) to
          the contrary, the cost of any capital improvements to the Development
          or alterations of the premises of tenants of the Development, or to
          the HVAC systems thereof, made after the date of this Lease which are
          intended to reduce Operating Expenses, or designed to protect the
          health and safety of the tenants in the Development, or which are
          required under any governmental laws, regulations, or ordinances which
          were not applicable to the Development at the time it was constructed,
          amortized over such reasonable period as Landlord shall determine,
          together with interest on the unamortized cost of any such improvement
          (at the corporate base interest rate at the First National Bank of
          Chicago on the date the cost of such improvement was incurred) shall
          be included in the definition of Operating Expenses.

               (3) If the aggregate space of the Development is less than
          ninety-five percent (95%) occupied by tenants during all or a portion
          of any calendar year, then Landlord shall make an appropriate

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          adjustment for such year of those components of Operating Expenses
          which may vary depending upon the occupancy level of the Development
          so that all of such variable components of Operating Expenses paid or
          incurred by Landlord and included in Operating Expenses for such year,
          are ratably allocated to the tenants then occupying space in the
          Development. Any such adjustments shall also be deemed expenses paid
          or incurred by Landlord and included in Operating Expenses for such
          year, as if the Development had been fully occupied and the Landlord
          had paid or incurred such expenses. If Landlord does not furnish
          during any calendar year any particular work or service to tenant who
          has undertaken to perform such work or service in lieu of the
          performance thereof by Landlord, (the cost of which, if performed by
          Landlord, would constitute an Operating Expense) Operating Expenses
          shall be deemed to be increased by an amount equal to the additional
          expense which would reasonably have been incurred during such calendar
          year by Landlord if it had, at its own expense, furnished such work or
          service to such Tenant.

               (4) Attached hereto as Exhibit "E" are Operating Expense
          Exclusions as clarified and agreed to by Tenant and Landlord.

          (b) Definition of Taxes.

               (1) For purposes of this Section 5, the term "Taxes" shall mean
          real estate taxes, assessments and any other federal, state or local
          governmental charge, general, special, ordinary or extraordinary (but
          not including general income or franchise taxes or any other taxes
          imposed upon or measured by income or profits, unless the same shall
          be imposed in lieu of Taxes as herein defined or unless same shall be
          specifically imposed upon income derived from rents), which may now or
          hereafter be levied or assessed against the Development, any
          renovation, rehabilitation or improvement thereof, or any portion of
          the Development for any "Tax Year" (as herein define ) during the
          Term. In case of special taxes or assessments which may be payable in
          installments, only the amount of each installment paid during a Tax
          Year shall be included in Taxes for such Tax Year. Except as provided
          in the preceding sentence, all references to Taxes "for" a particular
          Tax Year shall be deemed to refer to Taxes levied, assessed or
          otherwise imposed for such Tax Year without regard to when such Taxes
          are payable. Taxes shall also include any personal property taxes
          (attributable to the Tax Year in which paid) imposed upon the
          furniture, fixtures, machinery, equipment, apparatus, systems and
          appurtenances used in connection with the operation of the
          Development. Taxes also include the Landlord's reasonable costs and
          expenses (including reasonable attorney's fees) in contesting or
          attempting to reduce any Taxes. Notwithstanding anything contained in
          this Subsection 5(b) to the contrary, if at any time the method of
          taxation then prevailing shall be altered so that any new or
          additional tax, assessment, levy, imposition or charge or any part
          thereof shall be imposed upon Landlord in place or partly in place of
          any such Taxes, or contemplated increase therein or in addition to any
          such Taxes, and shall be measured by or be based in whole or in part
          upon the real property or the rents or other income therefrom, then
          all such new taxes, assessments, levies, impositions or charges or
          part thereof, to the extent that they are so measured or based, shall
          be included in Taxes levied, imposed or assessed against the real
          property to the extent that such items would be payable if the real
          property were the only property of Landlord subject thereto and the
          income received by Landlord from the real property were the only
          income of Landlord. The term "Tax Year" as used in this Subsection
          5(b) means a twelve (12) month period established by Landlord as the

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          year for purposes of computing the aggregate of Taxes due and payable
          under this Lease.

               (2) In the event the Development is not assessed as fully
          improved or occupied for any Tax Year, then Taxes shall be adjusted to
          the Taxes which would have been payable in such Tax Year if the
          assessment has been made on a fully improved or occupied basis, based
          on Landlord's adjustment of the "Taxes" for such Tax Year, employing
          sound management principles.

          (c)  Definition of Tenant's Proportionate Share.

               (1) For purposes of this Section 5 and for purposes of the Lease
          in general, the term Tenant's proportionate Share represents a
          percentage obtained by dividing the Rentable Area in the Demised
          Premises by the Rentable Area of the Development, as determined by
          Landlord.

               (2) The term "Rentable Area of the Development" as used in this
          Lease shall mean the sum of the areas on all floors of the three (3)
          buildings in the Development computed by measuring the inside face of
          the exterior glass or finished column or exterior wall of the
          buildings on each entire floor, plus mechanical space, common service
          areas available for use by all tenants in the buildings, reception and
          lobby areas, vending machine and commissary areas and loading docks
          and excluding only public stairs, elevator shafts, flues, stacks, pipe
          shafts and vertical ducts measured from the outside wall surface of
          such spaces ("vertical penetrations"). No deduction shall be made for
          columns or projections necessary to the buildings.

               (3) The term "Rentable Area of the Demised Premises" as used in
          this Lease shall mean (A) if this Lease is for an entire floor, the
          area of the entire floor measured to the inside finished surface of
          the exterior glass or finished column or exterior wall of the building
          in which the Demised Premises are located, excluding vertical
          penetrations, plus a proportionate share of the building's mechanical
          space and common service areas; or (B) if this Lease is for less than
          an entire floor, the area measured from the inside finished surface of
          the exterior glass or finished column or exterior wall of the building
          in which the Demised Premises are located to the center line of all
          demising partitions and to the inside finished surface of the office
          side of corridor and other permanent walls, plus (I) a proportionate
          share of public areas (including corridors, elevator lobbies, toilets,
          mechanical spaces and janitor, electrical and telephone closet(s) on
          the floor housing the Demised Premises; and (III) a proportionate
          share of mechanical space and common service areas in the building in
          which the Demised Premises are located. In making the calculations
          pursuant to (A) or (B) above, no deduction shall be made for columns
          or projections necessary to the building in which the Demised Premises
          are located.

          (d) Calculation of Additional Rent. In addition to the Annual Base
     Rent, the Tenant shall pay as "Additional Rent", the "Operating Expense
     Rent Adjustments" and "Tax Rent Adjustments" (as hereinafter defined and
     collectively referred to as "Rent Adjustments") without set-off or
     deduction to the Landlord in the manner hereinafter set forth. The amount
     of Rent Adjustments due and payable under this Lease shall be calculated as
     follows:

               (1) In the event that the amount of "Operating Expenses" (as
          herein defined) attributable to and for any calendar year shall be
          greater than the "Operating Expense Base" [as defined in Subsection
          1(p)], then the Tenant shall pay to the Landlord as Additional Rent

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         "Tenant's Proportionate Share" (as herein defined) of such excess
          (said amount being the "Operating Expense Rent Adjustment"); and

               (2) In the event that the amount of "Taxes" (as herein defined)
          attributable to and for any Tax Year shall be greater than the "Tax
          Base" [as defined in Subsection 1(o)], then the Tenant shall pay to
          Landlord, as Additional Rent, the Tenant's Proportionate Share of such
          excess (said amount being the "Tax Rent Adjustment").

          (e) Monthly Payments of Tax Rent Adjustments. As soon as reasonably
     feasible after the expiration of each Tax Year and after the Taxes for such
     Tax Year are determined, Landlord shall furnish to Tenant a statement ("Tax
     Adjustment Statement") showing the following: (i) Taxes for such Tax Year;
     (ii) the Tax Rent Adjustment due Landlord for such Tax Year, less credits
     for Rent Adjustment Deposits for Taxes, if any, paid for such Tax Year; and
     (iii) the "Rent Adjustment Deposit" (as herein defined) for Taxes due for
     the current Tax Year. The term "Rent Adjustment Deposit" means an amount
     equal to Landlord's estimate of Rent Adjustments due for any Tax Year.
     Within thirty (30) days after Tenant's receipt of each Tax Adjustment
     Statement, Tenant shall pay Landlord: (1) the Tax Rent Adjustments shown on
     said Statement to be due Landlord for the Tax Year last ended, plus (2) the
     lump sum amount, which when added to the Rent Adjustment Deposits for Taxes
     theretofore paid in the current Tax Year, if any, would provide the
     Landlord with an amount that Landlord would have theretofore been paid had
     Tenant paid one-twelfth of the Rent Adjustment Deposit for Taxes shown on
     said Statement, for the current Tax Year, to Landlord monthly on the first
     day of each month of such Tax Year. Commencing on the first day of the
     first month after Tenant's receipt of such Tax Adjustment Statement, and on
     the first day of each month thereafter until Tenant receives a more current
     Tax Adjustment Statement, Tenant shall pay to Landlord one-twelfth of the
     Rent Adjustment Deposit for Taxes shown on said Statement. During the last
     complete Tax Year, Landlord may include in the Rent Adjustment Deposit for
     Taxes its estimate of the Tax Rent Adjustment which may not be finally
     determined until after the expiration of the Term. The Tenant's obligation
     to pay the Tax Rent Adjustment shall survive the Term. Notwithstanding
     anything in this Subsection (e) to the contrary, Landlord may, at any time,
     during the first Tax Year deliver to Tenant, a statement ("First Year Tax
     Deposit Statement") setting forth the Rent Adjustment Deposit for Taxes due
     for such Tax Year. If Landlord delivers such Statement, Tenant shall pay
     Rent Adjustment Deposits for Taxes for such first Tax Year in the same
     manner as though said Rent Adjustment Deposit.

          (f) Monthly Payments of Operating Expense Rent Adjustments. As soon as
     reasonably feasible after the expiration of each calendar year, Landlord
     will furnish Tenant a statement ("Operating Expense Adjustment Statement")
     showing the following: (i) Operating Expenses attributable to the calendar
     year last ended; (ii) the Operating Expense Rent Adjustments due Landlord
     for the calendar year last ended, less credits for Rent Adjustment Deposits
     for Operating Expenses paid, if any paid for such calendar year; and (iii)
     the Rent Adjustment Deposit for Operating Expenses due for the current
     calendar year. Within thirty (30) days after Tenant's receipt of each
     Operating Expense Adjustment Statement, Tenant shall pay to Landlord: (1)
     the Operating Expense Rent Adjustments shown on said Statement to be due
     Landlord for the calendar year last ended; plus (2) the lump sum amount,
     which when added to the Rent Adjustment Deposit for Operating Expenses
     theretofore paid in the current calendar year, if any, would provide the
     Landlord with an amount that Landlord would have theretofore been paid had
     Tenant paid one-twelfth (1/12) of the Rent Adjustment Deposit for Operating

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     Expenses shown on said Statement, for the current calendar year, to
     Landlord monthly on the first day of each month of such calendar year.
     Commencing on the first day of the first month after Tenant's receipt of
     each Operating Expense Adjustment Statement, and on the first day of each
     month thereafter until Tenant receives a more current Operating Expense
     Adjustment Statement, Tenant shall pay to Landlord one-twelfth (1/12) of
     the Rent Adjustment Deposit for Operating Expenses shown on said Statement.
     During the last complete calendar year, Landlord may include in the Rent
     Adjustment Deposit for Expenses its estimate of the Operating Expense Rent
     Adjustment which may not be finally determined until after the expiration
     of the Term. The Tenant's obligation to pay the Operating Expense Rent
     Adjustment shall survive the Term. Notwithstanding anything in this
     Subsection (f) to the contrary, Landlord may, at any time, during the first
     calendar year deliver to Tenant, a statement ("First Year Operating Expense
     Deposit Statement") setting forth the Rent Adjustment Deposit for Operating
     Expenses due for such calendar year. If Landlord delivers such Statement,
     Tenant shall pay Rent Adjustment Deposits for Operating Expenses for such
     first calendar year in the same manner as though said Rent Adjustment
     Deposits for Operating Expenses had been set forth in an Operating Expense
     Adjustment Statement delivered to Tenant.

          (g) Annual Payments of Rent Adjustments. Tenant's payment of the Rent
     Adjustment Deposits for each calendar year, or Tax Year as the case may be,
     shall be credited against the applicable Rent Adjustments for such calendar
     year or Tax Year. All Rent Adjustment Deposits need not be kept separate
     and apart and no interest shall be paid to Tenant thereon. If the Rent
     Adjustment Deposit paid by Tenant for any calendar year, or Tax year as the
     case my be, exceeds the applicable Rent Adjustments for such calendar year,
     or Tax Year as the case may be, then Landlord shall give a credit to Tenant
     in an amount equal to such excess against the applicable Rent Adjustments
     due for the next succeeding calendar year, except that if any such excess
     relates to the last calendar year, or Tax Year as the case may be, of the
     Term, then Landlord shall refund such excess to Tenant, provided that all
     of the following have first occurred:

               (1)  the Term has expired or otherwise been terminated;

               (2) Tenant has vacated the Demised Premises and removed all of
          its property and improvements therefrom in accordance with this Lease;

               (3) Tenant has surrendered the Demised Premises to Landlord in
          accordance with this Lease; and

               (4) Tenant has paid all Annual Base Rent and Rent Adjustments due
          under this Lease and has fully performed and observed each and every
          term, covenant and condition of this Lease required to be performed or
          observed by Tenant.

          (h) Special Allocations. Landlord and Tenant acknowledge that certain
     costs of the Development are allocated among the several buildings in the
     Development using methods of allocation that are considered reasonable and
     appropriate under the circumstances. Tenant hereby consents to such
     allocations provided that the determination of such costs and the
     allocation of all or part thereof to Operating Expenses and Taxes hereunder
     shall be in accordance with generally accepted accounting principles
     applied on a consistent basis.

         (i) Audit. Provided an Event of Default on the part of the Tenant is
     not then existing, Tenant or its accountant (but not a subtenant) shall
     have the right after seven (7) days prior written notice to Landlord to
     examine Landlord's books and records of Operating Expenses and Taxes for
     the immediately preceding calendar year during normal business hours at the
     office of Landlord or Landlord's agent within sixty days (60) days
     following the furnishing of the Tax and Operating Expense Adjustment
     Statements to Tenant. Unless Tenant takes written exception to any item
     within sixty days (60) days following the furnishing of the Adjustment
     Statements to Tenant (which item shall be paid in any event), such
     statements shall be considered as final and accepted by Tenant. Tenant may
     take exception to matters included in Taxes or Operating Expenses, or
     Landlord's computation of Tenant's Proportionate Share of either, by
     sending notice specifying such exception and the reasons

                                       9
<PAGE>

     therefor to Landlord no later than thirty (30) days after Landlord makes
     such records available for examination. Such Rent Adjustment Statements
     shall be considered final, except as to matters to which exception is taken
     after examination of Landlord's records in the foregoing manner and within
     the foregoing times. Tenant acknowledges that Landlord's ability to budget
     and incur expenses depends on the finality of such Statement, and
     accordingly agrees that time is of the essence of this Subsection. If
     Tenant takes exception to any matter contained in the Rent Adjustment
     Statements as provided herein, Landlord shall refer the matter to an
     independent certified public accountant, whose certification as to the
     proper amount shall be final and conclusive as between Landlord and Tenant.
     Tenant shall promptly pay the cost of such certification unless such
     certification determines that Tenant was overbilled by more than two
     percent (2%). Pending resolution of any such exceptions in the foregoing
     manner, Tenant shall continue paying Tenant's Proportionate Share of Taxes
     and Operating Expenses in the amounts determined by Landlord, subject to
     adjustment after any such exceptions are so resolved. Tenant acknowledges
     that Landlord has made no representation, warranty or guaranty relating to
     the amount of the Tax Base and Operating Expense Base.

     6. Permitted Use. Tenant shall use and occupy the Demised Premises
continuously for the permitted use set forth in Subsection 1(s) only, and for no
other purpose unless agreed to in writing by Landlord. Tenant shall at its own
cost and expense obtain any and all licenses and permits necessary for its use
of the Demised Premises. Tenant's use shall not violate any recorded covenants,
conditions and restrictions affecting the Development or any law or the
certificate of occupancy issued for the Building of which the Demised Premises
is a part, and Tenant shall, upon five (5) days written notice from Landlord,
discontinue any use of the Demised Premises which is declared to be a violation
of any recorded covenants, conditions and restrictions affecting the Development
or of any law or of said certificate of occupancy. Tenant shall comply with any
directive of any governmental authority which shall impose any duty upon Tenant
or Landlord with respect to the Demised Premises or with respect to the use or
occupancy thereof. Tenant shall upon demand immediately reimburse Landlord as
additional rent for any costs incurred by Landlord as a result of Tenant's
failure to comply with the provisions of this Section 5. Tenant shall not do or
permit to be done anything in or about the Demised Premises which will in any
way obstruct or interfere with the rights of other tenants or occupants of the
Development, or use or allow the Demised Premises to be used for any unlawful or
objectionable purpose. Tenant shall not permit any action which would constitute
a nuisance or would disturb or endanger any other tenants of Development or
unreasonably interfere with such tenants' use of their respective premises or
permit any use which would adversely affect the reputation of the Development.
Tenant will not use or permit the Demised Premises or any part there of to be
used for any disorderly, unlawful or hazardous purpose.

     7. Governmental Compliance. Tenant shall, at its own expense, comply (and
Tenant shall not permit a failure in compliance of the Demised Premises) with
all laws, orders, ordinances and regulations of federal, state, county and
municipal authorities, which are currently and may hereafter be in force and
effect, and with directions of public officers thereunder, and notices from
Landlord's mortgagee and any ground lessor, respecting all matters of use,
occupancy, alteration, condition or maintenance of the Demised Premises, whether
such orders or directions shall be directed to Tenant or Landlord, and Tenant
shall hold Landlord harmless from any cost or expenses on account thereof.

     8. Surrender of Demised Premises at Lease Expiration. Tenant agrees to keep
the Demised Premise and the fixtures therein clean and in good order and repair
and will, at the expiration or earlier termination of the Term hereof, surrender
and deliver up the same in broom clean and in like good order and repair, as the
same now is or shall be at the Commencement Date, ordinary wear and tear
excepted and loss by casualty covered by insurance to be secured pursuant to
Section 20 excepted (but not excepting any damage or loss not reimbursed by
insurance because of the existence of a deductible under the appropriate
policy), failing which Landlord may restore the same at Tenant's sole cost and
expense at one hundred fifteen percent (115%) of Landlord's cost therefor.
Tenant shall give written notice to Landlord at least thirty (30) days prior to
vacating the Demised Premises and shall arrange to meet with Landlord for a
joint inspection of the Demised Premises prior to vacating. In the event of
Tenant's failure to give such notice or arrange such joint inspection,
Landlord's inspection at or after Tenant's vacating the Demised Premises shall
be conclusively deemed correct for purposes of determining Tenant's
responsibility for repairs and restoration. The vacation of the Building or move
into the Building by Tenant, shall be governed by such reasonable rules and
regulations adopted by Landlord from time to time, provided such rules and
regulations are uniformly applied to all tenants.

                                       10
<PAGE>

     9. Assignment and Subletting. (a) Tenant shall not transfer, assign,
mortgage or encumber this Lease by operation of law or otherwise, or sublet or
permit the Demised Premises, or any part thereof to be used by others, including
concessionaires or licensees of Tenant, without the prior written consent of
Landlord in each instance, and Tenant shall not permit a use other than the use
specified in Section 5. Any attempted transfer, assignment, subletting,
mortgaging or encumbering of this Lease in violation of the foregoing sentence
shall be null and void and confer no rights upon any third person. No permitted
assignment or subletting shall relieve Tenant from any of its obligations under
this Lease. If Landlord consents to any such transfer, assignment or subletting,
the same shall not be effective unless and until (i) Tenant gives written notice
thereof to Landlord; and (ii) such transferee, assignee or sublessee shall
deliver to Landlord (A) a written agreement in form and substance satisfactory
to Landlord pursuant to which such transferee, assignee or sublessee assumes all
of the obligations and liabilities of Lease hereunder, and (B) a certified copy
of the document or agreement memorializing such transaction.

          (b) If, without prior written consent, this Lease is transferred or
     assigned by Tenant, or if the Demised Premises, or any part thereof, are
     subject or occupied by anybody other than Tenant, whether as a result of
     any act or omission by Tenant, or by operation of law or otherwise,
     Landlord, whether before or after the occurrence of an event of default,
     may, in addition to, and not in diminuation of or substitution for, any
     other rights and remedies under this Lease or pursuant to law to which
     Landlord may be entitled as a result thereof, collect Rent from the
     transferee, assignee, subtenant or occupant and apply the net amount
     collected to the Rent herein reserved, but no such transfer, assignment,
     subletting, occupancy or collection shall be deemed a waiver of the
     provisions of this or the acceptance of the transferee, assignee,
     subtenant, or occupant as Tenant, or a release of Tenant from the further
     performance by Tenant of its obligation under this Lease.

          (c) Neither the consent by Landlord to any transfer, assignment or
     subletting nor the reference in any provision of this Lease or in any rules
     and regulations to concessionaires and licensees shall in anywise be
     construed to relieve Tenant from obtaining, in each instance, the express
     consent in writing of Landlord to any further transfer, assignment or
     subletting or to the granting of any concession or license for the use of
     any part of the Demised Premises.

          (d) Landlord shall not unreasonably withhold its consent described in
     the foregoing provisions provided, should Landlord withhold its consent for
     one of the following reasons, which list is not exclusive, such withholding
     shall be deemed to be reasonable: (i) Landlord has not received for
     approval at least thirty (30) days before the proposed transaction a copy
     of a fully executed unconditional assignment or sublease in a form
     acceptable to Landlord together with detailed information as to the
     character, reputation, business experience and financial statement of the
     third party; (ii) in the reasonable judgement of Landlord the proposed
     sublessee or assignee is of a character or reputation or engaged in a
     business which is not in keeping with the standards of Landlord for the
     Building; (iii) in the reasonable judgment of Landlord the purpose for
     which the proposed sublessee or assignee intends to use the Demised Premise
     are not in keeping, unsuitable or incompatible with the standards of
     Landlord for the Building, or are in violation of the terms of any other
     leases in the Building, it being understood that the purpose for which the
     proposed sublessee or assignee intends to use the Demised Premise may not
     be in violation of this Lease; (iv) a subletting will result in there being
     more than two occupants within the Demised Premises, including Tenant and
     all sublessees; (v) the Demised Premises is not regular in shape with the
     appropriate means of ingress and egress and suitable for normal renting
     purposes; (vi) the proposed sublessee or assignee is either a government
     (or subdivision agency thereof) or an occupant or an affiliate of an
     occupant of the Building; (vii) an assignment is desired and the Demised
     Premises are less than the entire Demised Premises or less than the
     remaining lease term is being assigned; (viii) the assignee or sublessee is
     not, in the judgement of Landlord, sufficiently financially responsible or
     stable to perform its obligations under the proposed sublease or
     assignment; (ix) Tenant is in default under this Lease; or (x) the
     transaction with the assignee or sublessee will cause Landlord to incur
     excessive costs or expenses relative to compliance under governmental laws.

                                       11
<PAGE>

     The foregoing are merely examples of reasons for which Landlord may
     reasonably withhold its consent and shall not be deemed exclusive of any
     permitted reasons for withholding consent, whether similar or dissimilar to
     the foregoing examples.

          (e) If Tenant is or becomes a closely-held corporation and if during
     the Term of this Lease, the ownership of the shares of stock which
     constitute control of Tenant changes other than by reason of gift or death,
     Tenant shall notify Landlord of such change within five (5) days thereof.
     Landlord, at its option, may at any time after such change terminate this
     Lease by giving Tenant reasonable written notice of said termination. The
     term "control" as used herein means the power to directly or indirectly
     direct or cause the direction of the management or policies of the Tenant.
     A change or series of changes in ownership of stock which would result in
     direct or indirect change in ownership by the stockholders or an affiliated
     group of stockholders of less than fifty percent (50%) of the outstanding
     stock as of the date of the execution and delivery of this Lease shall not
     be considered a change of control.

          (f) If Tenant is an entity, whether it be a partnership, corporation,
     trust, limited liability company, or any other type of entity, the Tenant
     must get the written consent of Landlord before Tenant can convert to be a
     different type of entity.

          (g) If Tenant is an entity whose ownership is not publicly held, and
     if during the Term, the ownership of the control of Tenant changes, Tenant
     shall notify Landlord of such change within five (5) days thereof, and
     Landlord, at its option, may at any time thereafter terminate this Lease by
     giving Tenant written notice of said termination at lease sixty (60) days
     prior to the date of termination stated in the notice. The term "control"
     as used herein means the power to directly or indirectly direct or cause
     the direction of the management or policies of the Tenant. A change or
     series of changes in ownership of stock which would result in direct or
     indirect change in ownership by the stockholders or an affiliated group of
     stockholders of less than fifty percent (50%) of the outstanding stock
     shall not be considered a change of control.

     10. Insurance. (a) Tenant shall procure and maintain in full force and
effect at Tenant's own expense commencing on the date Tenant first uses any part
of the Premises or the Premises are first made available to Tenant and during
the entire Term the types and amounts of insurance specified below, upon terms
and conditions satisfactory to Landlord, with insurance companies authorized to
do business in the state in which the property is located, and having an A.M.
Best's rating of A:X or better from the Bests' Key Rating Guide, insuring Tenant
and, as "Additional Insureds", Landlord and Landlord's beneficiaries and their
shareholders, partners, agents and employees, and where required by Landlord,
the mortgagee or ground lessor against claims, damages or losses which may arise
out of, in connection with or result form Tenant's use and occupancy of the
Premises, which insurance policies shall be on an occurrence basis:

          (i) Commercial general liability insurance, including but not limited
     to Premises/Operations, Personal Injury, Contractual Liability, Independent
     Contractors, Broad Form Property Damage, and Products/Completed Operations
     coverages, with limits of not less than $2,000,000 per occurrence combined
     single limit bodily injury, personal injury, and property damage. The
     Additional Insureds are to be named on a primary, non-contributory basis.

          (ii) Commercial Automobile Liability insurance on an Occurrence basis,
     covering all owned, non-owned and hired automobiles, including the loading
     and unloading thereof, with limits not less than $1,000,000 per occurrence
     combined single limit bodily injury and property damage. If there are no
     owned automobiles, non-owned and hired coverage may be included within the
     Commercial General Liability insurance policy. The Additional Insureds
     shall be named on a primary, non-contributory basis.

          (iii) Property Insurance on All Risks of Loss basis, including but not
     limited to the perils of fire, extended coverage, vandalism and malicious
     mischief, flood, and sewer backup, and business interruption, insuring on a

                                       12
<PAGE>

     replacement cost basis, and on a no coinsurance basis, Tenant's furniture,
     trade fixtures, equipment, merchandise, improvements and alterations, and
     any other items of Tenant's property on the Premises. Such policy shall
     include a waiver of subrogation in favor of the Additional Insureds.

          (v) Worker's Compensation and Occupational Disease insurance in
     accordance with the statutes of the state in which the property is located
     or any other applicable jurisdiction and Employer's Liability insurance
     with limits not less than $500,000 per accident or illness, covering all
     employees of Tenant. Such policy shall include a waiver of Subrogation in
     favor of the Additional Insureds.

          (b) Tenant shall comply with all applicable laws and ordinances, all
     orders and decrees of court and all requirements of other governmental
     authorities, and shall not directly or indirectly make any use of the
     premises which may thereby be prohibited or be dangerous to person or
     property or which may jeopardize any insurance coverage, or may increase
     the cost of insurance or require additional insurance coverage.

          (c) The foregoing insurance may be provided by a company wide blanket
     insurance policy or policies maintained by or on behalf of Tenant, provided
     that such policy(s) references the Premises as insured and the Additional
     Insureds, as required by this Lease as additional insureds parties, sets a
     minimum guaranteed coverage amount for the Premises, and is otherwise
     reasonably satisfactory to Landlord. No policy for Tenant's insurance shall
     provide for a deductible amount which exceeds $1,000.00. Each insurance
     policy shall provide for thirty (30) days prior written notice to Landlord
     or any material change, cancellation, or non-renewal, and shall contain a
     clause setting forth that such policy shall be primary with respect to any
     policies maintained by Landlord or the other Additional Insureds and that
     any coverage carried by Landlord shall be excess insurance. The amount of
     any insurance company's liability under the policies specified herein shall
     not be reduced by the existence of such other insurance. Each insurer shall
     waive its rights of subrogation against the Additional Insureds.

          (d) Evidence of insurance coverage and limits required above shall in
     no way limit Tenant's liabilities and responsibilities under the Lease. Any
     and all deductibles applicable to the required coverages shall be borne
     solely by Tenant.

          (e) Tenant shall, prior to the Commencement Date of the Term, furnish
     to Landlord certificates of insurance on insurance on Standard Accord forms
     evidencing such required coverages to be in force on the Commencement Date,
     and during the Term shall furnish renewal certificates thirty (30) days
     prior to the expiration of any of the policies of insurance. Such
     certificates shall state that: a) Landlord and its beneficiaries and their
     shareholders, partners, agents and employees, and the mortgagee or ground
     lessor are Additional Insureds on a primary, non-contributory basis; b)
     Insurer will provide thirty (30) days prior notice of cancellation,
     non-renewal, or material change to Landlord; and, c) Insurer waives its
     rights of subrogation against the Additional Insureds to the extent
     required above.

          (f) Landlord maintains the right to reasonably modify, delete, alter,
     or change these requirements.

          (g) Tenant shall not do or permit to be done any act or thing upon the
     Demised Premises that will invalidate or be in conflict with fire insurance
     policies covering the building or any part thereof, or fixtures and
     property Paragraph, and shall comply with all rules, orders, regulations or
     requirements of the Board of Fire Underwriters having jurisdiction, or any

                                       13
<PAGE>

     other similar body, in the case of such fire insurance policies, and the
     applicable insurance rating bureau or similar body in the case of all other
     such insurance policies, and shall not do, or permit anything to be done,
     in or upon the Demised Premises, or bring or keep anything therein, which
     shall increase the rate office insurance on the building or on any property
     located therein, or increase the rate or rates of any other insurance
     referred to hereinabove. If, by reason of the failure of Tenant to comply
     with the provisions of this subsection, the fire insurance rate, or the
     rate or rates of any other insurance coverage referred to in this Section,
     shall at any time be higher than it otherwise would be, and if Landlord, at
     such time, is obligated to obtain and maintain in effect any such insurance
     coverage, then Tenant shall reimburse Landlord on demand, as additional
     rent, for that part of all premiums for any insurance coverage that shall
     have been charged because of such violation by Tenant and which Landlord
     shall have paid on account of an increase in the rate or rates in its own
     policies of insurance. In any action or proceeding wherein Landlord and
     Tenant are parties, a schedule or "makeup" or rates for the Development or
     Demised Premises issued by the Fire Insurance Exchange having jurisdiction,
     or other body establishing rates in the case of all of the other aforesaid
     insurance policies, shall be conclusive evidence of the facts therein
     stated and of the several items and charges in the fire insurance rate and
     other insurance rates then applicable to the Demised Premises.

          (h) Tenant agrees to indemnify and hold harmless, and at the option of
     Landlord defend at Tenant's sole cost (with counsel acceptable to
     Landlord), Landlord and Landlord's agents, employees and mortgagees and
     their respective officers, directors, shareholders and partners (all of
     such parties are for purposes of this Section 10 referred to herein as
     "Indemnitees") from and against any and all claims, losses, fines, suits,
     judgments, orders, decrees, actions, proceedings, damages, injuries,
     penalties, escalations of insurance cost, liabilities, demands, costs, and
     expenses, including reasonable attorney's and consultants' fees for the
     defense thereof or incurred in connection therewith, whether known or
     unknown, anticipated or unanticipated, that (i) will arise from or are in
     connection with the possession, use, occupation, repair, maintenance or
     control of the Demised Premises, or any portion thereof; or (ii) arise from
     or are in connection with any act or omission of Tenant or Tenant's agents,
     employees, contractors, licensees, subtenants, assignees, or invitees; or
     (iii) result from any default, breach, violation or nonperformance of this
     Lease or any provision herein on the part of Tenant to be performed
     pursuant to the terms of this Lease; or (iv) result in injury or death to
     persons or damage to or loss of property or business sustained in or about
     the Demised Premises. Tenant shall pay, satisfy and discharge any and all
     judgments, orders and decrees which may be recovered against Landlord in
     connection with the foregoing. If Landlord exercises its option to have
     Tenant's counsel defend Landlord, Tenant's counsel shall not enter into a
     settlement of any matter without the prior express written consent of
     Landlord.

          (i) Landlord and Tenant agree to have all fire and extended coverage
     and material damage insurance which may be carried by either of them
     endorsed with a clause providing that any release from liability of or
     waiver of claim for recovery from the other party entered into in writing
     by the insured thereunder prior to any loss or damage shall not affect the
     validity of said policy or the right of the insured to recover thereunder
     and providing further that the insurer waives all rights of subrogation
     which such insurer might have against the other party. Without limiting any
     release or waiver of liability or recovery contained in any other Section
     of the Lease but rather in confirmation and furtherance thereof, each of
     the parties hereto waive all claims for recovery from the other party for
     any loss or damage to any of its property insured under valid and
     collectible insurance policies to the extent of any recovery collectible
     under such insurance policies. Notwithstanding the foregoing or anything
     contained in this Lease to the contrary, any release or any waiver of
     claims shall not be operative, nor shall the foregoing endorsements be
     required, in any case where the effect of such release or waiver is to
     invalidate insurance coverage or the right of the insured to recover
     thereunder or increase the cost thereof (provided that in the case of
     increased cost the other party shall have the right, within ten [10] days
     following written notice, to pay such increased cost keeping such release
     or waiver in full force and effect).

                                       14
<PAGE>

          (j) It is expressly understood and agreed that nothing in this Lease
     shall be construed as creating any liability against Landlord, its partners
     or agents or their successors and assigns, personally, and in particular
     without limiting the generality of the foregoing, there shall be no
     personal liability to pay any indebtedness accruing hereunder or to perform
     any covenant, either express or implied, herein contained, and that all
     personal liability of Landlord, its partners or agents or their successors
     and assigns, of every sort, if any, is hereby expressly waived by Tenant,
     and that so far as Landlord, its partners or agents or their successors and
     assigns is concerned Tenant shall look solely to the equity in the
     Development and the rents, issues and profits therefrom for the
     satisfaction of the remedies of the Tenant in the event of a breach by the
     Landlord. It is mutually agreed that this clause is and shall be considered
     an integral part of the Lease. Such exculpation of personal liability is
     absolute and without any exception whatsoever.

     11. Alterations. (a) Tenant will not make any alterations, installations,
changes, replacements, additions, or improvements, structural or otherwise,
("Alterations") in or to the Demised Premises or any part thereof, without the
review of the plans by and the prior written consent of Landlord therefor. In
addition, the Tenant shall make written request of Landlord to notify Tenant in
writing of any pre-existing conditions in the areas in which Tenant desires to
make any Alterations so that should such Alterations be performed, the Tenant
will be aware of such conditions. Such pre-existing conditions might include the
presence of hazardous substances or hidden utility conduit for example.
Notwithstanding Landlord's review of plans and whether or not Landlord consents
to such work, Tenant and not Landlord shall be responsible for compliance of
such plans and of Tenant's work with all applicable laws, ordinances and
regulations of all governmental authorities, including, without limitation,
Title III of the Americans with Disabilities Act of 1990, all regulations issued
thereunder and the Accessibility Guidelines for Buildings and Facilities issued
pursuant thereto, as the same are in effect on the date hereof and as may be
hereafter modified, amended or supplemented. Landlord may impose reasonable
requirements as a condition of such consent including without limitation the
submission of plans and specifications for Landlord's prior written approval,
obtaining necessary permits, posting bonds, obtaining insurance, prior approval
of contractors, subcontractors and suppliers, prior receipt of copies of all
contracts and subcontracts, contractor and subcontractor lien waivers,
affidavits listing all contractors, subcontractors and suppliers, use of union
labor (if Landlord uses union labor), affidavits from engineers acceptable to
Landlord stating that the Alterations will not adversely affect the mechanical
or utility systems and equipment or the structure of the Building, and
requirements as to the manner and times in which such Alterations shall be done.
All Alterations shall be performed in a good and workmanlike manner and all
materials used shall be of a quality comparable to or better than those in the
Premises and Development and shall be in accordance with plans and
specifications approved by Landlord, and Landlord may require that all such
Alterations be performed under Landlord's supervision. In all cases, Tenant
shall pay Landlord a reasonable fee to cover Landlord's overhead in reviewing
Tenant's plans and specifications and performing any supervision of the
Alterations. If Landlord consents or supervises, the same shall not be deemed a
warranty as to the adequacy of the design, workmanship or quality of materials,
and Landlord hereby expressly disclaims any responsibility or liability for the
same. Landlord shall under no circumstances have any obligation to repair,
maintain or replace any portion of the Alterations.

     (b) It is distinctly understood that all Alterations upon the Demised
Premises (whether with or without Landlord's consent) shall at the election of
Landlord remain upon the Demised Premise and be surrendered with the Demised
Premises at the expiration of this Lease without disturbance, molestation or
injury. Should Landlord elect that Alterations upon Demised Premises be removed,
upon lease expiration or earlier termination of this Lease, Tenant hereby agrees
to cause same to be removed at Tenant's sole cost and expense and deliver up the
Demised Premises in accordance with the standard set forth in Section 8 hereof;
and should Tenant fail to remove and restore the same, then and in such event,
Landlord shall cause same to be removed at Tenant's expense and Tenant hereby
agrees to reimburse Landlord for the cost of such removal and restoration
together with any and all damages which Landlord may suffer and sustain by
reason of the failure of Tenant to remove and restore the same.

     (c) All additions, decorations, fixtures, hardware, non-trade fixtures and
all improvements, temporary or permanent, in or upon the Premises, whether
placed there by the Tenant or by the Landlord, shall, unless the Landlord
requests their removal, become the Landlord's property and shall remain upon the

                                       15
<PAGE>

Premises at the expiration of this Lease, by lapse of time or otherwise, without
compensation or allowance or credit to the Tenant. Landlord may, at its sole
option, request Tenant, at Tenant's sole cost, to remove same and if, upon the
Landlord's request, the Tenant does not remove said additions, decorations,
fixtures, hardware, non-trade fixtures and improvements, the Landlord may remove
the same, and the Tenant shall pay the cost of such removal to the Landlord upon
demand as additional rent. These obligations of Tenant shall survive the
expiration or earlier termination of this Lease.

     12. Rules and Regulations. Tenant agrees for itself, its employees,
contractors, agents, invitees and licensees, to comply with the rules and
regulations ("Rule ") set forth in Exhibit "B" attached to this Lease. Landlord
shall have the right to reasonably amend such Rules and supplement the same with
other reasonable Rules (not expressly inconsistent with this Lease) relating to
the Development, or the promotion of safety, care, cleanliness or good order
therein, and all such amendments or new Rules shall be binding upon Tenant after
five (5) days notice thereof to Tenant. All Rules shall be applied on a
non-discriminatory basis, but nothing herein shall be construed to give Tenant
any claim, demand or cause of action against Landlord arising out of the
violation of such Rules by any other tenant, occupant, or visitor of the
Development, or out of the enforcement or waiver of the Rules by Landlord in any
particular instance. Any violation by Tenant of any of the Rules may be
restrained; but whether or not so restrained, Tenant shall be and remain liable
for all damages, losses, costs and expenses resulting from any violation
thereof. Nothing in this Lease shall be construed to impose upon Landlord any
duty or obligation to enforce said Rules provided that Landlord shall uniformly
apply such Rules and shall not discriminate against Tenant in the enforcement of
any such Rules.

     13. Access to Demised Premises by Landlord. Tenant agrees that it will
allow Landlord, and Landlord's agents or designees, to enter the Demised
Premises at all times to examine, inspect or to protect the same or prevent
damage or injury to the same, or to make such alterations or repairs as Landlord
may deem necessary, or, during the last six (6) months of the Term of this Lease
to exhibit the same to prospective tenants.

     14. Tenant's Repair Obligations. Subject to the provisions of Sections 20
and 22 of this Lease, Tenant shall at its own cost and expense keep and maintain
all parts of the Demised Premises and such portion of the Development within the
exclusive control of Tenant in good and sanitary condition, and in working order
and repair promptly making all necessary repairs and replacements, whether
ordinary or extraordinary, with materials dn workmanship of the same character,
kind and quality as the original, including but not limited to, doors, any
special office entries, interior walls and furnish work, floor coverings,
electrical systems and fixtures, and plumbing work and fixtures, reasonable wear
and tear accepted. All such repairs and replacements shall be made under the
supervision and with the prior written approval of Landlord, using contractors
acceptable to Landlord. Tenant shall not damage any demising wall or disturb the
integrity and supports provided by any demising wall and shall, at its sole cost
and expense, properly repair any damage or injury to any demising wall caused by
Tenant or its employees, agents or invitees. Tenant shall, at its own cost and
expense, as additional rent, pay for the repair of any damage to the Demised
Premises, the Building, or the Development resulting from and/or caused in whole
or in part by the negligence or misconduct of Tenant, its agents, contractors,
employees, invitees, sublessees, assignees, licensees, or any other person
entering upon the Development as a result of Tenant's business activities or
caused by Tenant's default hereunder. All injury to the Demised Premises or the
Development caused by moving property of Tenant into, in or out of, the Building
and all damages caused by Tenant, or the agents, contractors, licensees,
sublessees, assignees, employees and invitees of Tenant shall be repaired by
Tenant, at the expense of Tenant. In the event Tenant shall fail to do so, then
Landlord shall have the right to make such necessary repairs, alterations and
replacements, structural, non-structural or otherwise and 115% of any charge or
cost so incurred by Landlord shall be paid by Tenant as additional rent, payable
with the installment of Rent next becoming due or thereafter falling due under
the terms of this Lease. This provision shall be construed as an additional
remedy granted to or and not in limitation of any rights and remedies which
Landlord has or may have in said circumstances.

     15. Landlord's Repair Obligations. Subject to the provisions of Sections
14, 20 and 22 hereof, Landlord shall maintain in good repair, reasonable wear
and tear accepted, all parts of the Development, other than the Demised Premises
or portions of the Development within the exclusive control of tenants of the
Development, making all necessary repairs and replacements, whether ordinary or
extraordinary, structural or nonstructural, including roof, foundation, walls,
the heating, ventilation and air conditioning systems, downspouts, gutters,
regular moving of any grass, trimming, weed removal and general landscape

                                       16
<PAGE>

maintenance, including exterior painting, exterior lighting, exterior signs and
common sewage plumbing and the maintenance of all paved areas including
driveways and alleys, including, but not limited to, cleaning, repaving,
restripping and resealing. Tenant shall immediately give Landlord written notice
of any defect or need for repairs, after which Landlord shall have a reasonable
opportunity to repair the same or cure such defect. Landlord's liability with
respect to any defects, repairs or maintenance for which Landlord is responsible
under any of the provisions of this Lease shall be limited to the cost of such
repairs or maintenance or the curing of such defect and Landlord shall not be
liable for damages. The term "walls" as used herein shall not include windows,
glass or plate glass, doors, special store front or office entry. Landlord shall
not be liable to Tenant, its employees, agents, invitees, licensees, family
members, guests or trespassers for any damage, compensation or claim arising
from the necessity of repairing any portion of the Development, the interruption
in the use of the Demised Premises, accident or damage resulting from the use or
operation (by Landlord, Tenant or any other person or persons whatsoever) of
elevators, or heating, cooling, electrical or plumbing equipment or apparatus,
or the termination of this Lease by reason of the destruction of the Demised
Premises, or from any fire, robbery, theft, and/or any other casualty, or from
any leakage in any part or portion of the Demised Premises or the Building, or
from water, rain or snow that may leak into, or flow from, any part of the
Demised Premises or the Building, or from drains, pipes or plumbing work in the
Building, or from any other cause whatsoever, unless such damage is proximately
caused by Landlord's negligence. Tenant shall give Landlord prompt notice of any
accident to or defect in the pipes, heating or air conditioning apparatus, or
electric wires or system in order that the same may be remedied by Landlord,
subject, however, to the provisions of Sections 8, 10 and 14 hereof.

     16. Personal Property of Tenants. All personal property of the Tenant in
the Demised Premises or in the Development shall be at the sole risk of the
Tenant. Landlord assumes no liability or responsibility whatsoever with respect
to the conduct and operation of the business to be conducted in Demised Premises
nor for any loss or damage of whatsoever kind or by whomsoever caused, to
personal property, documents, records, monies, or goods of Tenant or to anyone
in or about the Demised Premises by consent of Tenant, unless proximately caused
by negligence on the part of Landlord.

     17. Utilities/Supplies. (a) So long as Tenant is not in default, customary
electric current, water, lavatory supplies, light bulbs and tube replacement,
and automatically operated elevator service shall be provided in the Building
during normal business hours from 7:00 a.m. to 6:00 p.m. Monday through Friday
with Saturdays, Sundays and legal holidays excluded and normal and usual
cleaning and janitorial service nightly, Monday through Friday, after business
hours commencing around 5:00 p.m. Heat and air conditioning shall be furnished
by means of electrically operated combination heating and cooling incremental
units, where installed, and/or by means of a central air conditioning system
during normal business hours during such seasons of the year when such services
are normally and usually furnished in modern office buildings in the area in
which Demised Premises is located.

     (b) Tenant will not install or operate in the Demised Premises any
electrically operated equipment or other machinery, other than personal
computers, typewriters or adding machines, and such other electrically operated
office machinery and equipment normally used in modern offices, without first
obtaining the prior consent in writing of Landlord, who may condition such
consent upon the payment by Tenant of additional rent in compensation for such
excess consumption of water and/or electricity or wiring as may be occasioned by
the operation of said equipment or machinery; nor shall Tenant install any other
equipment whatsoever which will or may necessitate any changes, replacements or
additions to or require the use of the water system, plumbing system, heating
system, air conditioning system or the electrical system of the Demised Premises
without the prior written consent of Landlord.

     (c) Landlord may install and operate meters or any other reasonable system
for monitoring or estimating any services or utilities used by Tenant in excess
of those required to be provided by Landlord under this Section (including a
system for Landlord's engineer to reasonably estimate any such excess usage). If
such system indicates such excess services or utilities, Tenant shall pay
Landlord's reasonable charges for installing and operating such system and any
supplementary air-conditioning, ventilation, heat, electrical or other systems
or equipment (or adjustments or modifications to the existing mechanical or
utility systems and equipment), and Landlord's reasonable charges for such
amount of excess services or utilities used by Tenant.

     (d) Landlord does not warrant that any services or utilities will be free
from shortages, failures, variations, or interruptions caused by repairs,
maintenance, replacements, improvements, alterations, changes of service,

                                       17
<PAGE>

strikes, lockouts, labor controversies, accidents, inability to obtain services,
fuel, steam, water or supplies, governmental requirements or requests, or other
causes beyond Landlord's reasonable control. None of the same shall be deemed an
eviction or disturbance of Tenant's use and possession of the Premises or any
part thereof, or render Landlord liable to Tenant for abatement of Rent, or
relieve Tenant from performance of Tenant's obligations under this Lease.
Accordingly, Landlord in no event shall be liable for damages by reason of loss
of profits, business interruption or other consequential damages.

     (e) In the event Tenant should require cooling or heating after normal and
usual business hours, Tenant shall make sure request to Landlord in writing in
the following manner: (i) for service on Tuesdays through Saturdays, a notice
must be provided prior to noon on the date previous to the date of service need;
and (ii) for service on Sundays and Mondays, a notice must be provided prior to
noon on the previous Friday. The Tenant shall be obligated to pay for such after
hours service in accordance with a schedule of costs as set forth by the
Landlord from time to time. Presently, the hourly service rate is $30.00 per
hour per zone, with a minimum of four hours per service request.

     18. Defaults. Each of the following events shall be deemed to be "Events of
Default" by Tenant under this Lease:

     (a) Tenant shall fail to pay any installment of the Rent herein reserved
when due, or any other payment or reimbursement to Landlord required herein when
due and such failure shall continue for a period of five (5) days after written
notice thereof.

     (b) Tenant or any guarantor of Tenant's obligations hereunder shall
generally not pay its debts as they become due or shall admit in writing its
inability to pay its debts or shall make a general assignment for the benefit of
creditors; or Tenant or any such guarantor shall commence any case, proceeding
or other action seeking to have an order for relief entered on its behalf as a
debtor to adjudicate it as bankrupt or insolvent, or seeking reorganization or
relief of debtors or seeking appointment of a receiver, trustee, custodian or
other similar official for it and for all or of any substantial part of its
assets; or Tenant or any such guarantor shall take any action to authorize or in
contemplation of any of the actions set forth above in this Subsection (b);

     (c) Any case, proceeding or other action against Tenant or any guarantor of
Tenant's obligations hereunder shall be commenced seeking to have an order for
relief entered against it as debtor or to adjudicate it as bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, liquidation,
dissolution or composition of it or its debts under any law relating to
bankruptcy, insolvency, reorganization or relief of debtors, or seeking
appointment of a receiver, trustee, custodian or other similar official for it
or for all or any substantial part of its property;

     (d) A receiver or trustee shall be appointed for all or substantially all
of the assets of the Tenant or any guarantor of Tenant's obligations hereunder;

     (e) Tenant shall fail to occupy the Demised Premises at the commencement of
the Term or abandon or vacate any substantial portion of the Demised Premises
during the Term;

     (f) Tenant shall fail to discharge any lien placed upon the Demised
Premises in violation or Section 31 hereof within twenty (20) days after such
lien or encumbrance is filed against the Demised Premises;

     (g) Tenant shall fail to comply with any term, covenant or condition of
this Lease (other than as otherwise stated in this Section 18), and shall not
cure such failure within ten (10) days after written notice thereof by Landlord
to Tenant, provided, if Tenant is diligently undertaking to cure such failure
within such ten (10) day period and such failure cannot reasonably be cured
within such ten (10) day period, Tenant shall have twenty (20) days after said
notice to cure such failure before the failure shall constitute an "Event of
Default";

     (h) Tenant shall fail to continuously operate its business at the Demised
Premises for the permitted use set forth in Section 6 whether or not Tenant is
in default of the rental payment due under this Lease;

                                       18
<PAGE>

     (i) Failure by Tenant to cure forthwith, immediately after receipt of
notice, any hazardous or emergency condition which Tenant has created in
violation of this Lease or of law (as used herein the phrase "hazardous or
emergency condition" shall mean a condition which threatens to cause an
immediate harm or is then causing a harm to person(s) or property);

     (j) Failure by Tenant to timely execute, acknowledge and deliver forthwith,
a subordination or attornment agreement as required by Section 21 hereof or an
estoppel certificate or statement as required by Section 28 hereof;

     (k) The misrepresentation by Tenant of, or failure of Tenant to disclose, a
material fact in any document, financial statement, or other instrument
delivered or disclosed to Landlord in connection with this Lease; or

     (l) The manifestation of a definite and unequivocal intent by a party
hereto that it will not render its performance under this Lease when the time
fixed for performance arrives.

     19. Remedies. (a) Upon the occurrence of any "Event of Default" described
in Section 18 hereof, which has not been cured or remedied during the applicable
grace period, if any, Landlord shall have the option to pursue any one or more
of the following rights or remedies without any notice or demand whatsoever all
of which shall be distinct, separate and cumulative and shall not operate to
exclude or deprive Landlord of any other right or remedy allowed it by law:

          (i) Landlord may terminate this Lease by giving to Tenant at least
     five (5) days written notice of the Landlord's election to do so, in which
     event the Term of this Lease shall end, and all right, title and interest
     of the Tenant hereunder shall expire, on the date stated in such notice;

          (ii) Landlord may terminate Tenant's right to possession of the
     Demised Premises without terminating this Lease by giving at least five (5)
     days written notice to Tenant that Tenant's right of possession shall end
     on the date stated in such notice, whereupon the right of the Tenant to
     possession of the Demised Premises or any part thereof shall cease on the
     date stated in such notice; and

          (iii) Landlord may enforce the provisions of this Lease and may
     enforce and protect the rights of the Landlord hereunder by a suit or suits
     in equity or at law for the specific performance of any covenant or
     agreement contained herein, or for the enforcement of any other appropriate
     legal or equitable remedy, including recovery of all monies due or to
     become due from the Tenant under any of the provisions of this Lease.

     (b) If Landlord exercises either of the remedies provided in Subsection (i)
or (ii) of Section 19(a), Tenant shall surrender possession and vacate the
Demised Premises immediately, and deliver possession thereof to Landlord in
"broom clean" condition, and Landlord may then and at any time thereafter
re-enter and take complete and peaceful possession of the Demised Premises with
or without process of law, full and complete license to do so being hereby
granted to Landlord, and Landlord may expel or remove Tenant and any others who
may be occupying or within the Demised Premises and remove any and all property
therefrom, using such force as may be necessary, without being deemed in any
manner guilty of trespass, eviction or forcible entry or detainer, and without
relinquishing Landlord's right to Rent, or any other right given to Landlord
hereunder or by operation of law.

     (c) If Landlord, pursuant to the provisions of Section 19(a) hereof,
terminates the right of the Tenant to possession of the Demised Premises without
terminating this Lease, such termination of possession shall not release Tenant
in whole or in part, from Tenant's obligation to pay Rent hereunder for the full
Term, and Landlord shall have the right from time to time, to recover from
Tenant and Tenant shall remain liable for all Annual Base Rent, additional rent
and any other sums accruing as they become due under the Lease during the period
from the date stated in the notice terminating possession to the stated end of
the term. The Landlord may, in its discretion, relet the Demised Premises or any
part thereof for such rent, for such time (which may be for a term extending
beyond the Term of this Lease) and upon such terms as the Landlord in the
Landlord's sole discretion shall determine, but the Landlord shall not be

                                       19
<PAGE>

required to relet the Demised Premises or to observe any instructions given by
the Tenant relative to such reletting. If Landlord relets the Demised Premises,
the Landlord may make repairs, alterations and additions in or to the Demised
Premises and redecorate the same to the extent deemed by the Landlord necessary
or desirable and, in connection therewith, change the locks to the Demised
Premises, and the Tenant shall upon demand pay the cost thereof together with
the Landlord's expenses of reletting. Landlord may collect the rents from any
such reletting and apply the same first to the payment of the expenses of
reentry, redecoration, repair and alterations and the expense of reletting and
second to the payment of Rent herein provided to be paid by the Tenant, and any
excess or residue shall operate only as an offsetting credit against the amount
of Rent as the same thereafter becomes due and payable hereunder, but the use of
such offsetting credit to reduce the amount of Rent due Landlord, if any, shall
not be deemed to give Tenant any right, title or interest in or to such excess
or residue and any such excess or residue shall belong to Landlord solely;
provided that in no event shall Tenant be entitled to a credit on its
indebtedness to Landlord in excess of the aggregate sum (including Annual Base
Rent and additional rent) which would have been paid by Tenant for the period
for which the credit to Tenant is being determined, had no Event of Default
occurred. No such re-entry or repossession, repairs, alterations and additions,
or reletting shall be construed as an eviction or ouster of the Tenant or as an
election on Landlord's part to terminate this Lease unless a written notice of
such intention be given to Tenant or shall operate to release the Tenant in
whole or in part from any of the Tenant's obligations hereunder, and the
Landlord may, at any time and from time to time, sue and recover judgment for
any deficiencies from time to time of the proceeds of any such reletting.

     (d) In the event of the termination of this Lease by Landlord as provided
in Subsection (i) of Section 19(a), Landlord shall be entitled to recover from
Tenant all the fixed dollar amounts of Rent accrued and unpaid for the period up
to and including such termination date, as well as all other additional sums
payable by the Tenant, or for which Tenant is liable or in respect of which
Tenant has agreed to indemnify Landlord under any of the provisions of this
Lease which may be then owing and unpaid, and all costs and expenses, including
court costs and attorneys' fees incurred by Landlord in the enforcement of its
rights and remedies hereunder, and in addition Landlord shall be entitled to
recover as damages for loss of the bargain and not as a penalty (w) the
unamortized cost to the Landlord, computed and determined in accordance with
generally accepted accounting principles, of the tenant improvements and
alterations, if any, paid for and installed by Landlord pursuant to this Lease,
(x) the unamortized cost of lease commissions paid in respect of this Lease, (y)
the aggregate sum which at the time of such termination represents the excess,
if any, of the present value of the aggregate Rents (inclusive of the amounts
projected by Landlord to represent additional rent in respect of Operating
Expenses and Taxes) at the annual rate or respective annual rates for the
remainder of the term as then in effect pursuant to the applicable provisions of
this Lease, over the then present value of the then aggregate fair rental value
of the Demised Premises for the balance of the Term, such present worth to be
computed in each case on the basis of a per annum discount at one-half (<<) of
the corporate base rent of interest then in effect at the First National Bank of
Chicago from the respective dates upon which such rentals would have been
payable hereunder had this Lease not been terminated, and (z) any damages in
addition thereto, including reasonable attorneys' and consultants fees and court
costs, which Landlord shall have sustained by reason of the breach of any of the
provisions of this Lease other than for the payment of Rent.

     (e) Tenant hereby grants Landlord a first lien upon the interest of Tenant
under this Lease to secure the payment of moneys due under this Lease, which
lien may be enforced in equity and landlord shall be entitled as a matter of
right to have a receiver appointed to take possession of the Demised Premises
and relet the same under order of court. Tenant's obligation to pay Rent during
the Term of the Lease shall continue and shall not be waived, released or
terminated by the service of a five-day notice, demand for possession, the
filing of a forcible entry and detainer action or judgment for possession or any
other act resulting in the termination of Tenant's right to possession.

     (f) All Rent and other amounts owed by Tenant to Landlord under this Lease
shall bear interest from the date due until the date paid at either (i) a rate
of interest equal to the highest prime rate of interst quoted in the Wall Street
Journal money rates column on the first business day after the date such payment
was due plus five percent (5%); or (ii) at the maximum legal rate of interest,
whichever is lower. Unless otherwise designated in this Lease all amounts owing
to Landlord are to be paid within ten (10) days from the date Landlord renders a
statement therefor to Tenant.

     (g) In the event of any litigation between the parties, the prevailing
party shall be entitled to obtain, as part of the judgment, all reasonable
attorneys' and consultants' fees, costs and expenses incurred in connection with

                                       20
<PAGE>

such litigation, except as may be limited by applicable Law. THE PARTIES HERETO
SHALL, AND THEY HEREBY DO, WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY
MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE DEMISED
PREMISES, AND/OR ANY CLAIM FOR INJURY OR DAMAGE. TENANT ALSO AGREES TO WAIVE ANY
AND ALL COUNTERCLAIMS TENANT MAY HAVE IN ANY SUIT FOR POSSESSION BY LANDLORD; IT
BEING UNDERSTOOD THAT THE SUBJECT OF ANY SUCH COUNTERCLAIM MAY BE ASSERTED BY
TENANT BUT ONLY IN A SEPARATE ACTION BROUGHT BY TENANT AGAINST LANDLORD.

     (h) If Tenant shall file for protection under any chapter of the U.S.
Bankruptcy Code now or hereinafter in effect, Landlord and Tenant agree, to the
extent permitted by law, to demand that the debtor-in-possession or trustee-
in-bankruptcy, if one is appointed, assume or reject this Lease within sixty
(60) days after such filing.

     (i) Tenant shall pay, as additional rent, a service charge of Two Hundred
Dollars ($200.00) for bookkeeping and administrative expenses, if Rent is not
received within five (5) days after its due date. Such service charge shall not
be deemed a consent by Landlord to late payments, nor a waiver of Landlord's
right to insist upon timely payments at any time, nor a waiver of any remedies
to which Landlord is entitled as a result of the late payment of Rent.

     (j) In the event Tenant's check, given to Landlord in payment of Rent, is
returned by the bank for non-payment, Tenant agrees to pay all expenses incurred
by Landlord as a result thereof.

     (k) In the event that Tenant abandons any personal property or fixtures at
the Demised Premises, including that which is owned or leased to Tenant,
Landlord shall also have the right to remove from the Demised Premises (without
the necessity of obtaining a distress warrant, writ of sequestration or other
legal process) all or any portion of such personal property or fixtures located
thereon and to place same in storage; and in such event, Tenant shall be liable
to Landlord for costs incurred by Landlord in connection with such removal and
storage. Landlord shall also have the right to relinquish possession of all or
any portion of such personal property or fixtures to any person ("Claimant")
claiming to be entitled to possession thereof who presents to Landlord a copy of
any instrument represented to Landlord by Claimant to have been executed by
Tenant (or a predecessor Tenant) granting Claimant the right under various
circumstances to take possession of such personal property or fixtures, without
the necessity on the part of Landlord to inquire into the authenticity of said
instrument's copy of Tenant's or Tenant's predecessor's signature(s) thereon and
without the necessity of Landlord making any nature of investigation or inquiry
as to the validity of the factual or legal basis upon which Claimant purports to
act; and Tenant agrees to indemnify, defend and hold Landlord harmless from all
cost, expense, loss, damage and liability incident to Landlord's relinquishment
of possession of all or any portion of such furniture, shelves, bins, machinery
or other trade fixtures to Claimant. Any and all property which may be removed
from the Demised Premises by Landlord pursuant to the authority of this Lease or
of Law, to which Tenant is or may be entitled, may be handled, removed and
stored, as the case may be, by or at the direction of the Landlord at the risk,
cost and expense of Tenant, and Landlord shall in no event be responsible for
the value, preservation or safekeeping thereof. Tenant shall pay to Landlord,
upon demand any and all expenses incurred in such removal and all storage
charges against such property so long as the same shall be in Landlord's
possession or under Landlord's control. Any such property of Tenant not retaken
by Tenant from storage within thirty (30) days after the removal from the
Demised Premises shall conclusively be presumed to have been conveyed by Tenant
to Landlord under this Lease as a bill of sale without further payment or credit
by Landlord to Tenant.

     (l) No receipt of moneys by Landlord from Tenant after termination of this
Lease or Tenant's right to possession, or after the giving of any notice of
termination of this Lease or Tenant's right to possession, shall reinstate,
continue or extend the Term of this Lease or affect any notice theretofore given
to Tenant, or operate as a waiver of the right of Landlord to enforce the
payment of rent and any other sum or sums of money and other charges herein
reserved and agreed to be paid by Tenant then due or thereafter falling due, or
operate as a waiver of the right of Landlord, to recover possession of the

                                       21
<PAGE>

Demised Premises by proper remedy, except as herein otherwise expressly
provided, it being agreed that after the service of notice to terminate this
Lease or Tenant's right to possession or the commencement of suit or summary
proceedings, or after final order or judgment for the possession of the Demised
Premises, Landlord may demand, receive and collect any moneys due or thereafter
falling due without in any manner affecting such notice, proceeding, order, suit
or judgment, except as herein otherwise specifically provided, all such moneys
collected being deemed payments on account of the use and occupation of the
Demised Premises, or at the election of Landlord, on account of Tenant's
liability hereunder. Further, no payment by Tenant or receipt by Landlord of a
lesser amount than any installment or payment of Rent due shall be deemed to be
other than on account of the amount due, and no endorsement or statement on any
check or payment of Rent shall be deemed an accord and satisfaction. Landlord
may accept such check or payment without prejudice to Landlord's right to
recover the balance of such installment or payment of Rent, or pursue any other
remedies available to Landlord. If Landlord shall direct Tenant to pay Annual
Base Rent or additional rent (or both, as the case may be) to a "lockbox" or
other depository whereby payments issued in payment of Annual Base Rent or
additional rent (or both, as the case may be) are initially cashed or deposited
by a person or entity other than Landlord (albeit on Landlord's authority),
then, for any and all purposes under this Lease; (i) Landlord shall not be
deemed to have accepted such payment until ten (10) days after the date on which
Landlord shall have actually received such funds; and (ii) Landlord shall be
deemed to have accepted such payment if (and only if) within said ten (10) day
period, Landlord shall not have returned (or attempted to return) such payment
to Tenant. Nothing contained in the immediately preceding sentence shall be
construed to place Tenant in default of Tenant's obligation to pay Rent if and
for so long as Tenant shall timely pay the Rent required pursuant to this Lease
in the manner designated by Landlord. TENANT HEREBY WAIVES ANY AND ALL RIGHTS OR
REDEMPTION OR RESTORATION OF THE OPERATION OF THIS LEASE CONFERRED BY ANY
PRESENT OR FUTURE LAW, STATUTE OR OTHERWISE UPON THE EXPIRATION OR SOONER
TERMINATION OF THE TERM, THE ENTRY OF FINAL UNAPPEALABLE JUDGMENT FOR RECOVERY
OF POSSESSION THROUGH ANY ACTION OR PROCEEDING, OR LANDLORD'S OBTAINING
POSSESSION OF THE DEMISED PREMISES UNDER THE TERMS OF THIS LEASE.

     (m) The rights of Landlord stated in this Section 19 shall be in addition
to any and all other rights which Landlord has or may hereafter have at law or
in equity; and Tenant stipulates and agrees that the rights herein granted
Landlord are commercially reasonable.

     (n) If under the provisions hereof, Landlord shall institute proceedings
and/or a compromise or settlement thereof shall be made, the same shall not
constitute a waiver of any covenant herein contained nor of any of Landlord's
rights hereunder. No waiver by Landlord of any breach of any covenant, condition
or agreement herein contained shall operate as a waiver of such covenant,
condition, or agreement itself, or of any subsequent breach thereof. No payment
by Tenant or receipt by Landlord of a lesser amount than the monthly
installments of Rent herein stipulated shall be deemed to be other than on
account of the earliest stipulated Rent nor shall any endorsement or statement
on any check or letter accompanying a check for payment of Rent be deemed an
accord and satisfaction and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance of such Rent or to pursue
any other remedy provided in this Lease. No re-entry by Landlord, and no
acceptance by Landlord of keys from Tenant, shall be considered an acceptance of
a surrender of the Lease.

     (o) If Landlord is required to deliver to Tenant more than two (2) written
notices of default pursuant to Subsection 19(a) hereof during the Term, then
Tenant shall pay to Landlord commencing with the third such notice delivered to
Tenant and continuing with each notice delivered to Tenant thereafter, as
additional rent, the sum of $50.00 for each default notice sent, due and payable
by Tenant together with the next due monthly installment of Rent.

     (p) Tenant hereby waives its right to plead any counterclaim unrelated to
this Lease or Tenant's occupancy of the Premises, or to seek an offset, in any
action or proceeding brought by Landlord against Tenant for non-payment of Rent
or default hereunder. This shall not, however, be construed as waiver of
Tenant's right to assert any claim in separate action brought by Tenant.

     20. Fire or Other Casualty. (a) If the Demised Premises, or any part
thereof, shall be damaged or destroyed by fire or other casualty, and if the
Landlord does not elect to terminate this Lease in accordance with the
provisions of Subsection 20(b), then the Landlord shall restore, repair and
replace the Demised Premises, as nearly as possible to its condition immediately
prior to such damage or destruction, and until such repairs have been completed
the Annual Base Rent and all Additional Rent shall be abated in proportion to
the part of the Demised Premises which is rendered

                                       22
<PAGE>

untenantable; provided, however, that the foregoing provisions shall not require
the Landlord to repair, restore or rebuild Tenant's fixtures, equipment,
additions, alterations, improvements, or other appurtenances therein. Such
restoration, repairs and replacement shall be commenced with due diligence and
in good faith as soon as practicable after the occurrence of the casualty (due
allowance being made for the time taken for settlement of the insurance claims,
the time required by Landlord to obtain the permission of governmental
authorities to make such restoration, repair and replacement and other delays
due to causes beyond Landlord's reasonable control), shall be prosecuted with
due diligence and in good faith and, subject to delays caused by circumstances
beyond Landlord's reasonable control, shall be completed within nine (9) months
from the date of occurrence of the casualty.

     (b) If the Demised Premises, or any part thereof, shall be damaged or
destroyed by fire or other casualty, then Landlord shall have the right, by
giving written notice to Tenant within ninety (90) days after the occurrence of
the casualty, to terminate this Lease. If Landlord elects to terminate this
Lease pursuant to this Section, the Term of this Lease shall cease and terminate
as of the date of giving of such notice, any rents paid by Tenant for a period
of time after the occurrence of the casualty shall be refunded by Landlord, and
neither party shall have any further liability under this Lease for any period
of time after the effective date of termination.

     (c) Tenant hereby releases Landlord and its partners, shareholders,
officers, directors, agents and employees, from any and all liability or
responsibility to Tenant (or to anyone claiming through or under Tenant by way
of subrogation to otherwise) for any loss or damage to Tenant's property covered
by a valid and collectible fire insurance policy with extended coverage
endorsement, even if such fire or other casualty shall have been caused by the
fault or negligence of the Landlord or anyone for whom the Landlord may be
responsible.

     (d) Notwithstanding any provisions in this Section 20 to the contrary,
Landlord shall have no obligation whatsoever to repair, reconstruct or restore
the Demised Premises and/or the Building if any of the following occurs:

          (i) the holder of the first deed of trust, security agreement, or
     mortgage encumbering the Building elects not to permit the insurance
     proceeds payable upon damage to or destruction of the Building or Demised
     Premises to be used for such repair, reconstruction or restoration;

          (ii) the damage or destruction occurs during the last twenty-four (24)
     months of the Lease Term or any renewal or extension thereof;

          (iii) a Default, or an event that, with the giving of notice or
     passage of time, would become a Default; or

          (iv) the Tenant has vacated or abandoned the Demised Premises.

     In any such event, Landlord may terminate this Lease by giving written
notice to Tenant within sixty (60) days after the damage or destruction.

     21. Subordination. (a) This Lease and Tenant's interest hereunder is and
shall be subject and subordinate to the lien of any mortgage or mortgages now or
hereafter placed upon the fee of the land and/or Development of which the
Demised Premises is a part and to any ground lease. Tenant agrees that upon not
less than ten (10) days (which 10 day period is not subject to any notice or
cure periods otherwise provided under this Lease) prior written notice from any
mortgagee or ground lessor or from the Landlord, without charge therefor, it
will, from time to time, execute and deliver any further instruments of
subordination in recordable form required by such mortgagee or ground lessor or
by Landlord to subordinate this Lease and Tenant's interest in the Demised
Premises to the lien of any such mortgage or to any such ground lease and to
attorn and recognize such mortgagee or ground lessor as Tenant's landlord under
this Lease in the event of a foreclosure of the mortgage or cancellation of the
ground lease. In the event of the enforcement by the ground lessor or the
mortgage holder of the remedies provided by law or by any mortgage securing
mortgage holder or any foreclosure sale or proceedings in lieu thereof or final
determination for possession in favor of the ground lessor, Tenant will, upon
request of any person succeeding to the interest of Landlord, as the result of
said enforcement, automatically become the Tenant of any successor in interest,
without changing the terms or other provisions of this

                                       23
<PAGE>

Lease; provided, however, that said successor in interest shall not (i) be
liable for any previous act or omission of Landlord under this Lease; (ii) be
subject to any offset which shall theretofore have accrued to Tenant against the
Landlord; (iii) have any obligation with respect to any security deposited under
this Lease unless such security shall have been physically delivered to the
mortgagee or ground lessor or their successors in interest; or (iv) be bound by
any previous modification of this Lease or by any previous payment of Rent for a
period greater than one month, unless such modification or prepayment shall has
been expressly approved in writing by the mortgagee or ground lessor or their
successors in interest. Landlord shall, upon request by any person succeeding to
the interest of Tenant, execute and deliver an instrument or instruments
confirming its attornment.

     (b) Wherever the terms "mortgage" or "mortgagee" are used in this Lease,
they shall be deemed to mean and include, respectively (i) mortgages, deeds of
trust or other similar instruments and modifications, consolidation, extensions,
renewals, replacements and substitutes thereof and all advances thereunder; and
(ii) the holder of such mortgage. Wherever the terms "ground lease" or "ground
lessor" are used in this Lease, they shall be deemed to mean and include
respectively, (i) any lease of the entire fee of the land upon which the
Building is located or a lease of the said land together with any part of the
improvements on said land, and all amendments, modifications, extensions and
substitutes thereof; and (ii) the landlord of any such ground lease. Tenant
hereby irrevocably constitutes and appoints Landlord as Tenant's
attorney-in-fact to execute, acknowledge and deliver any and all such
instruments for an on behalf of Tenant.

     (c) Notwithstanding any other provision to the contrary, Landlord shall use
it's best efforts to obtain from any future lender a non-disturbance agreement
that provides that so long as Tenant is not in default under the Lease beyond
any applicable cure period, the lender will (i) no disaffirm the Lease; (ii) not
disturb Tenant's possession or use of the Premises; (iii) affirmatively
recognize the validity of the Lease; and (iv) assume all of Landlord's
obligations under the Lease.

     22. Condemnation. If the whole or a substantial part of the Demised
Premises shall be taken of condemned by any governmental authority for any
public or quasi-public use of purpose (including sale under threat of such a
taking), then the Term of this Lease shall cease and terminate as of the date
when title vests in such governmental authority, and the Rent shall be abated
for the period after the date when such title vests in such governmental
authority. If less than a substantial part of the Demised Premises is taken or
condemned by any governmental authority for any public or quasi-public use or
purpose, the Rent shall be equitably adjusted on the date when title vests in
such governmental authority and the Lease shall otherwise continue in full force
and effect. Tenant shall have no claim against Landlord (or otherwise) for any
portion of the amount that may be awarded as damages as a result of any
governmental taking or condemnation (or sale under threat of such taking or
condemnation) or for the value of any unexpired Term of the Lease.

     23. Holding Over. It is further understood and agreed by and between the
parties hereto that, in the event Tenant shall not immediately surrender the
Demised Premises on the day after the Expiration Date, then Tenant shall, by
virtue of this Lease, become a tenant by the month at one and one half the
rental per month of the monthly installment of Annual Base Rent and all
Additional Rent due for the last month of the last lease year, commencing said
monthly tenancy with the first day next after the Expiration Date; and Tenant as
a monthly tenant shall be subject to all conditions and covenants of this Lease
insofar as the same are applicable, or as the same shall be adjusted, to a
month-to-month tenancy; and said Landlord shall give Tenant at least thirty (30)
days' written notice to quit said premises, except in the event of non-payment
of rent in advance or of breach of any other covenant by said Tenant, in which
event said Tenant shall hold over after the expiration of the term hereby
created, and if Landlord shall desire to regain possession of said premises
promptly at the expiration date, then at any time prior to Landlord's acceptance
of rent from Tenant as a monthly tenant hereunder; Landlord at its option, may
forthwith re-enter and take possession of said premises without process, or by
any legal process in force in the State, City or County in which subject
property is located.

     24. Landlord Advances. If Landlord shall incur any charge or expense on
behalf of Tenant under the terms of this Lease or through a separate agreement
relating to the Demised Premises, including but not limited to tenant work, such
charge or expense shall be considered additional rent hereunder; in addition to
and not in limitation of any other rights and remedies which Landlord may have

                                       24
<PAGE>

in case of the failure by Tenant to pay such sums when due, such non-payment
shall entitle Landlord the remedies available to it hereunder for non-payment of
rent. All such charges or expenses shall be paid to Agent at the address set
forth in Section 3 hereof or at such other place and to such other person as
Landlord may from time to time designate in writing.

     25. Security Deposit. Simultaneously with the execution of this Lease,
Tenant shall deposit with Landlord the security deposit sum described in
Subsection 1(u) hereof. Such security deposit (which shall not bear interest to
Tenant) shall be considered as security for payment and performance by Tenant of
all of Tenant's obligations, covenants, conditions and agreements under this
Lease. Upon the expiration of the Term hereof, Landlord shall (provided that
Tenant is not in default under the terms hereof) return and pay back such
security deposit to Tenant less such portion thereof as Landlord shall deem
necessary to make good any default by Tenant with respect to any of Tenant's
aforesaid obligations, covenants, conditions or agreements. In the event of any
default by Tenant hereunder, Landlord shall have the right, but shall not be
obligated, to apply all or any portion of the security deposit to cure such
default, in which even Tenant shall be obligated to promptly deposit with
Landlord the amount necessary to restore the security deposit to its original
amount. In the event of the sale or transfer of Landlord's interest in the
Development, Landlord shall have the right to transfer the security deposit to
such purchaser or transferee, in which event Tenant shall be entitled to look to
the new landlord for the return of the security deposit and Landlord shall
thereupon be released from all liability to Tenant for the return of such
security deposit.

     26. No Further Representations. Neither Landlord nor any agent or employee
of Landlord has made any representations or promises with respect to the Demised
Premises or the Development except as herein expressly set forth, and no rights,
privileges, easements or licenses are acquired by Tenant except as herein
expressly set forth.

     27. Force Majeure. Landlord shall not be required to perform any of its
obligations under this Lease, nor be liable for loss or damage for failure so to
do, nor shall Tenant thereby be released from any of its obligations under this
Lease, where such failure arises from or through acts of God, strikes, lockouts,
labor difficulties, material shortages, explosions, sabotage, accidents, energy
crises, riots, civil commotions, acts of war, results of any warfare or warlike
conditions in this or any foreign country, fire and casualty, legal
requirements, or other causes beyond the reasonable control of Landlord. If
Landlord is so delayed or prevented from performing any of its obligations
during the Term of this Lease, the period of such delay or such prevention shall
be deemed added to the time herein provided for the performance of any such
obligation, but the Term hereof shall not thereby be extended. Except as
otherwise set forth in this Section 27, time is of the essence with respect to
the performance of every provision of this Lease in which time or performance is
a factor.

     28. Estoppel Certificates. Tenant shall, without charge therefor, at any
time and from time to time, within ten (10) days (which ten [10] day period is
not subject to any notice or cure periods otherwise provided under this Lease)
after request therefore by Landlord, execute, acknowledge and deliver to
Landlord a written estoppel certificate certifying to Landlord, any mortgagee,
assignee of a mortgagee, or any purchaser, of the Development or portion
thereof, or any other person designated by Landlord, as of the date of such
estoppel certificate, (i) that Tenant is in possession of the Demised Premises,
(ii) that this Lease is unmodified and in full force and effect (of if there has
been a modification, that the same is in full force and effect as modified and
setting forth such modification); (iii) whether or not there are then existing
any set-offs or defenses against the enforcement of any right or remedy of
Landlord, or any duty or obligation of Tenant hereunder (and, if so, specifying
the same in detail); (iv) the dates, if any, to which any Rent or other charges
have been paid in advance; (v) that Tenant has no knowledge of any then uncured
defaults on the part of Landlord under this Lease (or if Tenant has knowledge of
any such uncured defaults, specifying the same in detail); (vi) that Tenant has
no knowledge of any event having occurred that authorizes the termination of
this Lease by Tenant (or if Tenant has such knowledge, specifying the same in
detail); and (vii) the amount of any security deposit held by Landlord. In the
event Tenant should refuse or fail to execute, acknowledge and deliver said
statement and/or certificate within the time set forth above, such failure or
refusal shall constitute a material default and in addition to any other
remedies Landlord may have, Landlord shall have the right to cancel this Lease
by giving Tenant an additional ten (10) days notice in writing whereupon if the
statement or certificate is not executed and delivered within such ten (10) day
period of this Lease shall be terminated and rendered of no further force and
effect. If Tenant fails to execute and deliver any such instrument or statement
within the initial ten (10) day period set forth above, Tenant irrevocably

                                       25
<PAGE>

appoints Landlord as its attorney-in-fact, in Tenant's name, to execute and
deliver such certificate or statement and Tenant shall be deemed to have agreed
with the matters set forth therein.

     29. Real Estate Brokers. Landlord and Tenant each represent and warrant to
the other that, except as specified in Subsection 1(t) hereof, neither of them
has employed any broker in carrying on the negotiations relative to this Lease.
Landlord and Tenant shall each indemnify and hold harmless the other from and
against any claim or claims for brokerage or other commission arising from or
out of any breach of the foregoing representation and warranty.

     30. Common Areas. Landlord hereby grants to Tenant a non-exclusive right,
in common with Landlord and the other tenants of the Development, to use, and to
permit its employees, customers and business invites to use, (1) the entrances,
exits, corridors, elevators, stairways and other public areas of the Building
for access to the Demised Premises from the public streets adjacent to the
Building; (2) the public conveniences, if any, of the Development; and (3) all
other areas in the Development used in common by tenants of the Development,
such public areas, public conveniences and other areas being hereinafter
referred to collectively as the "common area". All common areas shall be and
remain at all times subject to the exclusive control and management of Landlord
and Landlord shall have the right from time to time to establish reasonable
rules and regulations governing the use of the common areas. Landlord reserves
the right to make changes, additions, alterations or improvements in and to the
common areas and to close the same temporarily for such purposes, or to prevent
the acquisition by the public of right in the common areas or to discourage
non-customer use thereof.

     31. Mechanics' Liens. In the event that any mechanic's lien is filed
against the Demised Premises or the Building or the Development as a result of
additions, alterations, repairs, installations or improvements made by or on
behalf of Tenant, or any other work or act of Tenant, its agents or employees,
Tenant shall discharge the same within twenty (20) days from the filing thereof.
If Tenant fails to discharge any such mechanic's lien, Landlord, at its option,
in addition to all other rights or remedies herein provided, may bond or pay
said lien or claim without inquiring into the validity thereof for the account
of Tenant, and all sums so advanced by Landlord shall be paid in full by Tenant
to Landlord as additional rent on demand.

     32. Notices. All notices and demands which may or are to be required or
permitted to be given by either party on the other hereunder shall be in
writing. All notices and demands shall be sent either by (i)United States Mail,
postage prepaid, certified mail/return receipt requested; or (ii) by personal
service to a representative of the receiving party; or (iii) by nationally
recognized overnight air courier service; addressed as set forth in Subsections
1(b) and 1(d) or to such other person or place as may from time to time be
designated in a notice to the applicable party hereto. If Tenant is a
corporation, a notice or demand may be served on its registered agent in lieu of
service on Tenant. Any such notice or demand shall be deemed given on the
earliest of (a) on the date which is two (2) business days after deposit in an
official U.S. Mail receptacle if delivered via the United States Mail; (b)on the
first business day after deposit with an overnight air courier service with
instructions to deliver on the next business day; or (c) on the date of actual
delivery. If a party refuses to accept a notice or demand, the notice or demand
will be deemed to have been delivered on the date tendered, but rejected. If a
notice or demand is sent via U.S. mail or overnight courier service and that
service has a labor strike or work stoppage or catastrophic event during the
period that such notice or demand is in their possession then such notice or
demand shall not be deemed received until actual delivery. Notwithstanding the
foregoing, notices served with respect to emergency matters may be served
personally or by facsimile or e-mail communication.

     33. Quiet Enjoyment. Subject to the provisions of this Lease, Landlord
covenants that Tenant, on paying the Rent and performing the covenants of this
Lease on its part to be performed, shall and may peaceably have, hold and enjoy
the Demised Premises for the Term.

     34. Rights Reserved to Landlord. Landlord reserves and may exercise the
following rights without affecting Tenant's obligations hereunder:

          (a) To change the name or the street address of the Building or the
     Development;

          (b) To install and maintain a sign or signs on the exterior of the
     Building;

                                       26
<PAGE>

          (c) To designate all sources furnishing sign painting and lettering,
     lamps and bulbs used on the Demised Premises;

          (d) To retain at all times pass keys to the Demised Premises;

          (e) To grant to anyone the exclusive right to conduct any particular
     business or undertaking in the Building or the Development;

          (f) To change the arrangement and/or location of entrances and
     corridors in and to the Building and to add, remove, rename or modify
     buildings, roadways, parking areas, walkways, landscaping, lakes, grading
     and other improvements in or to the Development;

          (g) To approve the weight, size and location of heavy equipment of
fixtures of Tenant; or

          (h) To change or alter the size, configuration, partitions or office
     designations of all or any of the offices or stores in the commercial area
     of the Building or of the Development, if any.

     36. Environmental Compliance. (a) Tenant shall not cause or permit to occur
any act or practice, that may cause, either intentionally or unintentionally:

          (i) Any violation or breach of any federal, state, or local law,
     ordinance, rule or regulation, now or hereafter enacted, related to or
     covering (I) public environmental, health, safety and welfare conditions
     on, under, or about the Demised Premises; (II) Tenant's use or occupancy of
     the Demised Premises, including, but not limited to, ambient air, soil,
     surface water and ground water conditions or (III) the use, generation,
     testing, storage, treatment, location, release, transportation, discharge
     or disposal of "Hazardous Substances" (as herein defined) (collectively
     "Environmental Laws"); or

          (ii) The use, generation, testing, treatment, location, release,
     manufacture, refining, production, processing, storage, or disposal of any
     Hazardous Substance on, under, or about the Demised Premises, or the
     transportation to or from the Demised Premises of any Hazardous Substance.

     (b) In this connection, Landlord or Landlord's representatives shall have
the right upon twenty-four (24) hour notice to inspect and to perform testing in
the Demised Premises from time to time to confirm Tenant's compliance with this
Section.

     (c) Notwithstanding anything in this Section to the contrary, the various
representations, warranties and covenants made herein pertaining to Hazardous
Substances shall not apply or extend to occasions in which elements, compounds,
substances or materials, which may technically constitute Hazardous Substances,

                                       27
<PAGE>

may have been or may in the future be present or used on the Demised Premises in
small quantities for incidental but appropriate purposes, (i.e. such as printing
ink contained in a photo-copy machine) but only if the same would not give rise
to enforcement actions under, or constitute a material breach or violation of,
applicable Environmental Laws. Tenant shall promptly notify Landlord of: (i) any
enforcement, cleanup or other regulatory action taken or threatened by any
governmental or regulatory authority with respect to the presence of any
Hazardous Material on the Demised Premises or the mitigation thereof from or to
other property; (ii) any demands or claims made or threatened by any party
against Tenant or the Demised Premises relating to any loss of injury relating
from any Hazardous Material; (iii) any release, discharge or non-routine,
improper or unlawful disposal or transportation of any Hazardous Material on or
from the Demised Premises; and (iv) any matters where Tenant is required by Law
to give a notice to any governmental or regulatory authority respecting any
Hazardous Material on the Demised Premises. Landlord shall have the right (but
not the obligation) to join and participate as a party as a party in any legal
proceedings or actions affecting the Demised Premises initiated in connection
with any environmental, health or safety Law. At such times as Landlord may
reasonably request, Tenant shall provide Landlord with a written list
identifying any Hazardous Material then used, stored, or maintained upon the
Demised Premises, the use and approximate quantity of each such material, a copy
of any material safety data sheet ("MSDS") issued by the manufacturer therefor,
written information concerning the removal, transportation and disposal of same,
and such other information as Landlord may reasonably require or as may be
required by law. The term "Hazardous Substances", as used in this Section shall
include the following elements, compounds, substances and materials, without
limitation: flammables; explosives; radioactive materials; toxins; asbestos;
pollutants; contaminants; hazardous wastes; toxic substances or related
materials; petroleum and petroleum products; polychlorinated biphenyls (PCBs);
or any other elements, compounds, substances or materials known to cause cancer,
reproductive toxicity, other physical harm, risk or potential risk to human
health, safety or welfare or to the environment or which would trigger any
employee or community "right to know" or MSDS requirements; and all other
substances declared to be hazardous or toxic under any Environmental Law. Any
violation or breach of the foregoing covenants in this Section shall be deemed a
material Event of Default under this Lease.

     (d) If any Hazardous Substance is released, discharged or disposed of by
Tenant or any other occupant of the Demised Premises, or their employees, agents
or contractors, on or about the Development in violation of the foregoing
provisions, Tenant shall immediately, properly and in compliance with applicable
Laws clean up and remove the Hazardous Substance from the Development and any
other affected property and clean or replace any affected personal property
(whether or not owned by Landlord), at Tenant's expense. Such clean up and
removal work shall be subject to Landlord's prior written approval (except in
emergencies), and shall include, without limitation, any testing, investigation,
and the preparation and implementation of any remedial action plan required by
any governmental body having jurisdiction or reasonably required by Landlord. If
Tenant shall fail to comply with the provisions of this Section within five (5)
days after written notice by Landlord, or such shorter time as may be required
by Law or in order to minimize any hazard to persons or property, Landlord may
(but shall not be obligated to ) arrange for such compliance directly or as
Tenant's agent through contractors or other parties selected by Landlord, at
Tenant's expense (without limiting Landlord's other remedies under this Lease or
applicable Law). If any Hazardous Substance is released, discharged or disposed
of on or about the Development and such release, discharge or disposal is not
caused by Tenant or other occupants of the Demised Premises, or their employees,
agents or contractors, such release, discharge or disposal shall be deemed
casualty damage under Section 20 to the extent that the Demised Premises or
common areas serving the Demised Premises are affected thereby; in such case,
Landlord and Tenant shall have the obligations and rights respecting such
casualty damage provided under Section 20. Tenant's obligations and liabilities
under this Section 36 shall survive the expiration or earlier termination of
this Lease.

     37. Communications and Computer Equipment. (a) Tenant may install,
maintain, replace, remove or use any communications or computer wires, cables,
equipment and related devices (collectively the "Equipment") in and serving the
Premises, provided: (i) Tenant shall obtain Landlord's prior written consent of
the plans and specifications therefor, use an experienced and qualified
contractor approved in writing by Landlord, and comply with all of the other
provisions of Article 9; (ii) any such installation, maintenance, replacement,
removal or use shall comply with all laws applicable thereto and good work
practices, and shall not interfere with the use of any then existing Equipment
at the Property; (iii) an acceptable amount of space for additional Equipment
shall be maintained for existing and future occupants of the Property, as
determined in Landlord's reasonable opinion; (iv) if Tenant at any time uses any
Equipment that may create an electromagnetic field exceeding the normal
insulation ratings of ordinary twisted pair riser cable or cause radiation
higher than normal background radiation, the lines therefor (including riser

                                       28
<PAGE>

cables) shall be appropriately insulated to prevent such excessive
electromagnetic fields or radiation; (v) as a condition to permitting the
installation of new Equipment, Landlord may require that Tenant remove or
relocate existing Equipment located in or serving the Demised Premises; (vi)
Tenant's rights shall be subject to the rights of any regulated telephone
company; and (vii) Tenant shall use Landlord's appropriate form of documentation
relative to Tenant's use of the Equipment and shall pay all costs in connection
with its installation, maintenance, use and removal of the Equipment. Landlord
reserves the right to require that Tenant remove any Equipment located in and
serving the Demised Premises which are installed in violation of these
provisions, or which are at any time in violation of any laws or represent a
dangerous or potentially dangerous condition, within three (3) days after
written notice.

     (b) Landlord may (but shall not have the obligation to): (i) install new
Equipment at the Property; (ii) create additional space for Equipment at the
Property; and (iii) reasonably direct, monitor and/or supervise the
installation, maintenance, replacement and removal of, the allocation and
periodic reallocation of available space (if any) for, and the allocation of
excess capacity (if any) on, any Equipment now or hereafter installed at the
Property by Landlord, Tenant or any other party. Such rights shall not be in
limitation of other rights that may be available to Landlord by Law or
otherwise. If Landlord exercises any such rights, Landlord may charge Tenant for
the costs attributable to Tenant, or may include those costs and all other costs
in Operating Expenses (including without limitation, costs for acquiring and
installing Equipment and risers to accommodate new Equipment and spare
Equipment, any associated computerized system and software for maintaining
records of Equipment connections, and the fees of any consulting engineers and
other experts); provided, any capital expenditures included in Operating
Expenses hereunder shall be amortized (together with reasonable finance
charges).

     (c) Notwithstanding anything to the contrary contained in Section 35,
Landlord reserves the right to require that Tenant remove any or all Equipment
installed by or for Tenant within or serving the Premises upon the expiration or
earlier termination of this Lease, provided Landlord notifies Tenant prior to or
within thirty (30) days following such expiration or termination. Any Equipment
not required to be removed pursuant to this Article shall, at Landlord's option,
become the property of Landlord (without payment by Landlord). If Tenant fails
to remove such Equipment as required by Landlord, or violates any other
provision of this Article, Landlord may, after twenty (20) days written notice
to Tenant, remove such Equipment or remedy such other violation, at Tenant's
expense (without limiting Landlord's other remedies available under this Lease
or applicable Law). Tenant shall not, without the prior written consent of
Landlord in each instance, grant to any third party a security interest or lien
in or on the Equipment, and any such security interest or lien granted without
Landlord's written consent shall be null and void. Except to the extent arising
from the intentional or negligent acts of Landlord or Landlord's agents or
employees, Landlord shall have no liability for damages arising from, and
Landlord does not warrant that the Tenant's use of any Equipment will be free
from the following (collectively called "Equipment Problems"): (x) any
eavesdropping or wire-tapping by unauthorized parties; (y) any failure of any
Equipment to satisfy Tenant's requirements; or (z) any shortages, failures,
variations, interruptions, disconnections, loss or damage caused by the
installation, maintenance, replacement, use or removal of Equipment by or for
other tenants or occupants at the Property, by any failure of the environmental
conditions or the power supply for the Property to conform to any requirements
for the Equipment or any associated equipment, or any other problems associated
with any Equipment by any other cause. Under no circumstances shall any
Equipment Problems be deemed an actual or constructive eviction of Tenant,
render Landlord liable to Tenant for abatement of Rent, or relieve Tenant from
performance of Tenant's obligations under this Lease. Landlord in no event shall
be liable for damages by reason of loss of profits, business interruption or
other consequential damage arising from any Equipment Problems.

     38. Default by Landlord. Landlord shall not be in default unless Landlord
fails to perform obligations required of Landlord within a reasonable time after
written notice, but in no event later than thirty (30) days after written notice
by Tenant to Landlord, and to the holder of the first mortgage covering the
Demised Premises, or to its successor in interest whose name and address shall
have theretofore been furnished to Tenant in writing, specifying therein that
Landlord has failed to perform such obligation; provided, however, that if the
nature of Landlord's obligation is such that more than thirty (30) days are
required for performance then Landlord shall not be in default if Landlord
commences performance within such thirty (30) day period and thereafter
diligently prosecutes the same to completion. In no event shall Tenant have the
right to terminate this Lease as a result of Landlord's default and Tenant's
remedies shall be limited to damages and/or an injunction.

                                       29
<PAGE>

     39. Miscellaneous. (a) Words of any gender used in this Lease shall be held
or construed to include any other gender, and words in the singular number shall
be held to include the plural, unless the context otherwise requires.

     (b) The terms, covenants and conditions contained in this Lease shall apply
to, inure to the benefit of, and be binding upon, the parties hereto and upon
their respective heirs, legal representatives, successors and permitted assigns,
except as otherwise herein expressly provided. Landlord shall have the right to
assign any of its rights and obligations under this Lease and Landlord's grantee
or Landlord's successor, as the case may be, shall upon such assignment, become
Landlord hereunder, thereby freeing and relieving the grantor or assignor, as
the case may be, of all covenants and obligations of Landlord hereunder. In the
event of any sale or other transfer of the Development, Landlord and its agents
shall be entirely freed and relieved of all agreements, obligations and
liabilities of Landlord hereunder. Tenant agrees to attorn to such grantee or
successor. Nothing herein contained shall give any other tenant in the
Development or the Building any enforceable rights either against Landlord or
Tenant as a result in the Development or the Building any enforceable rights
either against Landlord or Tenant as a result of the covenants and obligations
of either party set forth herein. If there is more than one Tenant, the
obligations of Tenant shall be joint and several. Any indemnification of,
insurance of, or option granted to Landlord shall also include or be exercisable
by Landlord's agents and employees.

     (c) The captions inserted in this Lease are for convenience only and in no
way define, limit or otherwise describe the scope or intent of this Lease, or
any provision hereof, or in any way affect the interpretation of this Lease.

     (d) This Lease, together with the Exhibits and documents listed in the
Table of Contents hereto (which collectively are hereby incorporated where
referred to herein and made a part hereof as though fully set forth), contains
all the terms and provisions between Landlord and Tenant relating to the matters
set forth herein and no prior or contemporaneous agreement or understanding
pertaining to the same shall be of any force or effect, except any such
contemporaneous agreement specifically referring to and modifying this Lease,
signed by both parties. Without limitation as to the generality of the
foregoing, Tenant hereby acknowledges and agrees that Landlord's management,
brokerage and field personnel are only authorized to show the Premises and
negotiate terms and conditions for leases subject to Landlord's final approval,
and are not authorized to make any agreements, representations, understandings
or obligations, binding upon Landlord, respecting the condition of the Demised
Premises or Development, suitability of the same for Tenant's business, or any
other matter, and no such agreements, representations, understandings or
obligations not expressly contained herein or in such contemporaneous agreement
shall be of any force or effect. Neither this Lease, nor any Riders or Exhibits
referred to above may be modified, except in writing signed by both parties. The
Tenant acknowledges that it has not been induced to enter into this Lease by any
representations or warranties not set forth in this Lease. Tenant and its
independent advisors believe that this Lease is the product of all of their
efforts, that it expresses their agreement and therefore they agree that it
should not be interpreted in favor of either Landlord or Tenant or against
either Landlord or Tenant merely because of their efforts in preparing it.

     (e) All obligations of Tenant not fully performed as of the expiration or
earlier termination of the Term of this Lease shall survive the expiration or
earlier termination of the Term, including without limitation, all payment
obligations with respect to Operating Expenses and Taxes and all obligations
concerning the condition of the Demised Premises, pay to Landlord an Additional
Rent Deposit, as estimated by Landlord, of Tenant's obligation hereunder for
Operating Expenses and Taxes. All such amounts shall be used and held by
Landlord for payment of such obligations of Tenant hereunder, with Tenant being
liable for any additional costs therefor upon demand by Landlord, or with an
excess to be returned to Tenant after all such obligations have been determined
and satisfied, as the case may be. Any security deposit held by Landlord shall
be credited against the amount payable by Tenant under this Section. The
vacation of the Building or more into the Building by Tenant shall be governed
by such reasonable rules and regulations adopted by Landlord from time to time,
provided such rules and regulations are uniformly applied to all tenants.

     (f) If any provision of this Lease, or the application thereof to any
person or circumstance, shall be invalid or unenforceable under applicable law,
such event shall not affect, impair or render invalid or unenforceable the
remaining provisions of this Lease nor shall it affect the application of any
provision hereof to other persons or circumstances, and it is also the intention
of the parties to this lease that in lieu of each such provision of this Lease
that is invalid or unenforceable, there be added as a part of this Lease a

                                       30
<PAGE>

provision as similar in terms to such invalid or unenforceable, there be added
as a part of this Lease a provision as similar in terms to such invalid or
unenforceable provision as may be possible and be valid or enforceable.

     (g) Submission and negotiation of this Lease shall not be deemed to be a
reservation of the Demised Premises. Landlord shall not be bound hereby until
its delivery to Tenant of an executed copy hereof signed by Landlord, already
having been signed by Tenant, and until such delivery Landlord reserves the
right to exhibit and lease the Demised Premises to other prospective tenants.
Tenant agrees that its execution of this Lease constitutes a firm offer to enter
the same which may not be withdrawn for a period of thirty (30) days after
delivery to Landlord. Notwithstanding anything contained herein to the contrary
Landlord may withhold delivery of possession of the Demised Premises from Tenant
until such time as Tenant has paid to Landlord the security deposit required
hereunder and the first month's rent as required hereunder, and any other sums
required hereunder.

     (h) If Tenant is a corporation, partnership, limited liability company,
trust or other legal entity, each individual executing this Lease on behalf of
said entity represents and warrants that such entity has been duly formed and
has the power and authority to enter into this lease and that he is duly
authorized to execute and deliver this Lease on behalf of said entity, in
accordance with the organizational and operational documents of said entity, and
that this Lease is valid and binding upon said entity and enforceable in
accordance with its terms. Tenant agrees to furnish to Landlord, promptly upon
demand, a corporate resolution, proof of due authorization by partners, or other
appropriate documentation evidencing the due authorization of Tenant to enter
into this Lease.

     (i) Neither this Lease nor any memorandum of lease or short form lease
shall be recorded by Tenant.

     (j) This Lease does not grant any legal rights to "light and air" outside
the Demised Premises nor any particular view or cityscape visible from the
Demised Premises.

     (k) With respect to any provision of this Lease which provides, in effect,
that Landlord shall not unreasonably withhold or unreasonably delay any consent
or any approval, Tenant, in no event, shall be entitled to make, nor shall
Tenant make, any claim for, and Tenant hereby waives any claim for money
damages; nor shall Tenant claim any money damages by way of setoff, counterclaim
or defense, based upon any claim or assertion by Tenant that Landlord has
unreasonably withheld or unreasonably delayed any consent or approval; but
Tenant's sole remedy shall be an action or proceeding to enforce any such
provision, or for specific performance, injunction or declaratory judgment.

     40. Governing Law. All of the terms, conditions and provisions of this
Lease shall be interpreted in accordance with, and controlled by, the laws of
the State of Maryland (except that the conflicts of laws provisions thereof
shall not apply).

     The parties intending to be bound hereby execute or cause this Lease to be
executed as of the date first above written.

LANDLORD:                               TENANT:

XXI OFFICE PLAZA ASSOCIATES             TEK DIGITEL, INC.

By: SRA/Century XXI-GP, Inc.            By:
    Its General Partner

/s/ Clifford M. Stein                   /s/ Thomas Yang
-------------------------------------   ----------------------------------------
Name: Clifford M. Stein                 Name: Thomas Yang
Title:   President                      Title:    COO

Witnessed by:                           Witnessed by:

/s/                                     /s/
-------------------------------------   ----------------------------------------
Vice President                          Sales Associate

Lease reference date: October 8, 1999

                                       31
<PAGE>

                                      RIDER

     This Rider dated this ______ day of October, 1999 is to that certain lease
agreement of even date herewith ("Lease") by and between XXI OFFICE PLAZA
ASSOCIATES ("Landlord") and TEK DIGITEL, INC., a Maryland corporation
("Tenant").

     R-1. Conflicts. The provisions set forth in this Rider supersede any
contradictory provisions in the Lease and supplements the Lease as the context
requires.

     R-2. Cancellation Option. Tenant shall have the right, notwithstanding the
"Term" of this Lease, to terminate this Lease prior to the expiration of the
Term, such right of termination being effective on as of the last day of the
thirty-sixth (36th) calendar month of the Term hereof ("Cancellation Date"),
subject to and upon satisfaction of the following terms and conditions:

     (a) Tenant provides Landlord with advance notice of its exercise of the
cancellation option at a minimum of six (6) months' prior to the Cancellation
Date accompanied by payment of termination consideration equal to the sum of (i)
Landlord's unamortized leasing costs (assuming a five (5) year amortization
schedule) which costs shall be inclusive of all professional fees, leasing
commissions and tenant improvement costs, incurred in connection with
consummating this lease transaction, (ii) the product of six (6) times the
Monthly Base Rent otherwise due and payable for the thirty-seventh (37th)
calendar month of the Term plus (iii) a reasonable market rate of interest on
the unamortized leasing costs from the Commencement Date to the Cancellation
Date.

     (b) Neither the notice by Tenant of its election to exercise its option to
terminate this Lease, nor the expiration of the six (6) month period following
the notice of election to terminate, nor the payment of the Termination
Consideration shall cure any default of Tenant under this Lease or relieve
Tenant from any of its obligations under this Lease which may have or may accrue
in favor of Landlord prior to the Cancellation Date (including, but not limited
to, the obligations to pay Annual or Monthly Base Rent, or Tax and Operating
Expense Rent Adjustment, other Rent or Adjustments, however described or
occurring, and any other amounts due or to become due to Landlord under this
Lease), or which may accrue upon or by reason of the termination of the Term and
the vacation of (or failure to vacate) the Premises by Tenant; and Tenant
specifically understands and agrees that notwithstanding the termination of this
Lease pursuant to this paragraph, the obligations of Tenant hereunder inclusive
of the Cancellation Date and such rights such as in respect to Tax and Operating
Expense Rent Adjustments as survive the expiration of the Term shall survive
such termination of this Lease.

     (c) On or prior to the Cancellation Date, Tenant shall surrender possession
of the Premises to Landlord in broom clean condition.

     (d) Tenant may only exercise the Cancellation Option, and an exercise
thereof shall only be effective, if at the time of Tenant's exercise of said
option and on the Cancellation Date, this Lease is in full force and effect and
there is no Default by Tenant under this Lease or the giving of notice will
constitute a Default, and (inasmuch as said option is intended only for the
benefit of the original Tenant named in this Lease) the entire Premises are
occupied by the original Tenant named herein and said Tenant has not assigned
this Lease or sublet any portion of the Premises.

     Provided that Tenant shall have complied with all of the requirements of
this Paragraph, upon the Cancellation Date this Lease shall terminate as if the
full Term as otherwise provided bad expired in accordance with the terms of this
Lease, and thereafter Landlord and Tenant shall have no further obligation to
one another, except as provided in Subparagraph (b) above or as may be otherwise
provided in this Lease relative to the expiration of the Term.

     R-3. Communications Equipment License. The Tenant shall be granted a
license to install and operate communications equipment upon the roof of the

                                       32
<PAGE>

Building, pursuant to the terms and covenants and subject to the conditions set
forth in a license agreement to be entered into between Landlord and Tenant
substantially in the form of the agreement attached to this Lease as Exhibit
"C".

     R-4. Extension Option. (a) The Landlord hereby grants to the Tenant an
option to extend the Term of this Lease ("Extension Option") for one (1)
consecutive period of five (5) years commencing immediately after the expiration
of the Term on the same terms, covenants and conditions contained in this Lease,
except as provided herein. Tenant shall exercise the Extension Option on or
before January 1, 2004, time being of the essence.

     (b) Tenant may only exercise its Extension Option, and an exercise thereof
shall only be effective, if at the time of Tenant's exercise and on the
commencement date of the extension period: (i) the Lease is in full force and
effect; (ii) there is no Default by Tenant under any terms, covenants or
conditions of the Lease and no event has occurred which, with the passage of
time or the giving of notice or both would constitute a Default; and (iii)
Tenant has not assigned the Lease or subleased the Premises. If the Extension
Option is not exercised by January 1, 2004, the Extension Option shall thereupon
expire and be of no further force or effect.

     (c) Such Extension Option can only be exercised in respect of the entire
Premises and Tenant shall have no right to exercise the Extension Option as to
less than the entire Premises.

     (d) The Annual Base Rent payable during the extension option period with
respect to the Premises shall be equal to the then "current market rental rate"
(hereinafter defined) for Base Rent per square foot of rentable area, for lease
terms of five (5) year duration commencing on or about the commencement date of
the extension option period, multiplied by the rentable area of the Premises.
For purposes of this Paragraph R-4, the "current market rental rate" shall be
the then prevailing rental rate as determined in good faith by Landlord, for
improved space in the Building or the Development comparable to the Premises in
area, location and degree of improvements (to the extent that quoted rental
rates in the Building or the Development vary with regard to area, location and
degree of improvements). In addition to the Annual Base Rent, additional rent at
the "current market rental rate" shall be payable during the extension option
period, which prevailing rental rate shall include (i) the prevailing provisions
for periodic escalation adjustments to Annual Base Rent; and (iii) the
prevailing provisions in respect of Taxes and Operating Expenses. In no event,
however, shall the Annual Base Rent for the first year of the extension option
period be less than. the adjusted Annual Base Rent payable for the last year of
the original Term with the base rent for subsequent years to be subject to
adjustment as set forth in clause (i) above.

     (e) No additional options to extend the Term shall be construed to be
created by the Extension Option or the exercise thereof and no other
inapplicable provisions such as, but not limited to, any obligation to construct
improvements or make any contribution toward the construction of improvements
shall be construed to govern the extension option period.

     (f) Prior to the commencement date of the extension option period at
Landlord's request Tenant shall enter into a written supplement to the Lease
confirming the terms, covenants and conditions applicable to that extension
option period as determined in accordance herewith, with such revisions to the
rental provisions of this Lease as may be necessary to conform such provisions
to the rental provisions applicable to the extension option period.

     R-5. Landlord's Work. (a) Landlord shall, at its own expense, deliver the
Premises to Tenant with the work completed (the "Work") as depicted on the Space
Plan attached to this Lease as Exhibit "D", all in accordance with Building
Standard specifications.

     (b) Landlord shall, at its own expense, paint the previously painted walls
of the Premises to Building Standard colors. It is expressly understood that
under Building Standard, Tenant shall be limited to one color selection in any
room or area.

     (c) Landlord shall, at its own expense, carpet the Premises to Building
Standard with any carpet selected by Tenant from Landlord's Building Standard
carpets. It is expressly understood that the carpeting shall be deemed to be a

                                       33
<PAGE>

permanent leasehold improvement and shall, accordingly, not be removed from the
Premises upon the termination or expiration of the Lease.

     (d) Landlord has not agreed to perform any other work in the Premises, and
all other work necessary to complete the Premises shall be done at Tenant's sole
cost and expense, in accordance with the terms and conditions of the Lease. If
at Tenant's request, Landlord agrees to do any work in connection with the
completion of the Premises, such other work shall be done at Tenant's sole cost
and expense, as an extra, in accordance with plans, drawings, and specifications
furnished by Tenant, subject to the approval of Landlord. Prior to commencing
any additional work, Landlord shall submit to Tenant written estimates of the
cost thereof and if Tenant shall fail to approve such estimates within seven (7)
days from the receipt thereof, the same shall be deemed to be disapproved and
Landlord shall not be authorized to proceed with such additional work and Tenant
shall be deemed to have abandoned its request therefor. If the estimates are
approved and Landlord proceeds with such additional work, Tenant shall pay
Landlord the cost thereof (including direct costs for rubbish removal, hoisting,
permits, and similar items) plus fifteen percent (15%) of said cost for
Landlord's supervision and construction management services, upon being billed
therefore at any time and from time to time.

     R-6. Parking. Landlord hereby provides to Tenant a license to use during
the Term of this Lease and renewal thereof at no daily or monthly charge
twenty-four (24) non-exclusive and unreserved spaces in the parking garage
facility on a first come, first served basis. Landlord, at its discretion, (i)
may designate the specific space or areas where each vehicle shall be parked;
and (ii) may change such designated areas from time to time. Upon written
request by Landlord, Tenant shall furnish within thirty (30) days to Landlord
the license numbers of all vehicles of Tenant's employees, which Tenant
anticipates will use the parking garage facility. The foregoing license is
subject to any restrictions of record. All employees of Tenant are to park in
the parking garage facility with the front outdoor parking area reserved for
visitors to the Development only.

     R-7. Access to Development. The Tenant shall have access to the garage
parking facility and to its Premises in the Development on a twenty-four (24)
hour, seven (7) day per week basis via electric card access system.

Landlord /s/ Clifford M. Stein
         -----------------------------

Tenant /s/ Thomas Yang
       -------------------------------

                                       34
<PAGE>

                                   EXHIBIT "A"

                                   FLOOR PLAN

   [In the original document, a floor plan of the demised premises appears.]

                                       35
<PAGE>

                                   EXHIBIT "B"

                              RULES AND REGULATIONS

     Tenant shall comply and cause its agents, employees and invitees to comply
with all Rules and Regulations hereinafter set forth or hereafter made by
Landlord, of which Tenant has been given notice, for the care and use of the
Building and Development and their facilities and approaches. Landlord's current
Rules and Regulations are as follows:

     (a)  Any sign installed in the Demised Premises or anywhere within the
          Development shall be installed by Landlord at Tenant's cost and in
          such manner, character and style as Landlord may approve in writing.
          No sign, advertisement or notice shall be inscribe, painted or affixed
          on any part of the outside or inside of Demised Premises or Building,
          except on the directories and doors of office, and then only in such
          size, color and style as Landlord shall approve.

      (b) Tenant shall not advertise the business, profession or
          activities of the Tenant conducted in the Building in any manner which
          violates the letter or spirit of any code of ethics adopted by any
          recognized association or organization pertaining to such business,
          profession or activities, and shall not use the name of the Building
          for any purpose other than that of business address of the Tenant, and
          shall never use any picture or likeness of the Building in any
          circulars, notices, advertisements or correspondence without the
          Landlord's express consent in writing. Landlord shall have the right
          to prohibit any advertisement of any tenant in which the Landlord's
          opinion tends to impair the reputation of the Development or its
          desirability as a Development for offices or for financial, insurance
          or other institutions and businesses of like nature.

     (c)  Tenant shall not obstruct, or use for storage, or for any purpose
          other than ingress and egress, the sidewalks, entrances, passages,
          courts, corridors, vestibules, halls, elevators and stairways of the
          Building. No freight, furniture or other bulky matter of any
          description will be received into the Building or carried in the
          elevators, except as approved by Landlord. All moving of furniture,
          material and equipment shall be under the direct control and
          supervision of Landlord.

     (d)  No bicycle or other vehicle and no dog, other than seeing eye or
          hearing dog, or other animal shall be brought or permitted to be in
          the Development or any part thereof.

     (e)  Tenant shall not make or permit any noise or odor that is
          objectionable to other occupants of the Building to emanate from the
          Demised Premises, and shall not create or maintain a nuisance thereon,
          and shall not disturb, solicit or canvass any occupant of the
          Building, and shall not do any act tending to injure the reputation
          of the Building.

     (f)  Tenant shall not install any musical instrument or any electronic data
          processing equipment, sound system, computer processing facilities and
          business machines in the Building or any antennas, satellite dishes,
          aerial wires or other equipment inside or outside the Building,
          without, in each and every instance, prior approval in writing by the
          Landlord. The use thereof, if permitted, shall be subject to control
          by the Landlord to the end that others shall not be disturbed or
          annoyed by vibrations, noise, electrical interference or other
          disturbance.

     (g)  Tenant shall not waste water by tying, wedging or otherwise fastening
          open any faucet.

     (h)  No additional locks or similar devices shall be attached to any door
          or window. No keys for any door or window other than those provided by
          the Landlord shall be made. If more than two (2) keys for one (1) lock
          are desired by Tenant, Landlord may provide the same upon payment by
          Tenant. Upon termination of this Lease or of the Tenant's possession,
          Tenant shall surrender all keys of the Demised Premises and shall make
          known to Landlord the explanation of all combination locks on safes,
          cabinets, vaults and doors leading to the corridors or main halls

                                       36
<PAGE>
          shall be kept closed during business hours except as they may be used
          for ingress and egress.

     (i)  Tenant shall be responsible for protecting the Demised Premises and
          all property located therein and for the safety of all persons
          therein.

     (j)  If Tenant desires telegraphic, telephonic, burglar alarm or signal
          service, Landlord will, upon request, direct where and how connections
          and all wiring for such service shall be introduced and run. Without
          such directions, no boring, cutting or installation or wires or cables
          is permitted.

     (k)  Tenant shall not install or permit the installation of any awning,
          shades, draperies, blinds and the like other than those approved by
          Landlord in writing. Venetian blinds are to be kept in a down
          position.

     (l)  Unless Landlord gives advance written consent in each and every
          instance, Tenant shall not install or operate any steam or
          internal combustion engine, boiler, machinery, refrigerating or
          heating device or air-conditioning apparatus in or about the Demised
          Premises, or carry on any mechanical business therein, or use the
          Demised Premises for housing accommodations or lodging or sleeping
          purposes, or do any cooking therein or install or permit the
          installation of any vending machines or use any illumination other
          than electric light, or use or permit to be brought into the Building
          any inflammable oils or fluids such as gasoline, kerosene, nephtha and
          benzene, or any explosive or other articles hazardous to persons or
          property.

     (m)  Tenant shall not place or allow anything to be placed against or near
          the glass of partitions, doors or windows of the Demised Premises
          which may diminish the light in, or be unsightly from the exterior of
          the Building, public halls or corridors.

     (n)  Tenant shall not install in the Demised Premises any equipment which
          uses a substantial amount of electricity without the advance written
          consent of the Landlord. Tenant shall ascertain from the Landlord the
          maximum amount of electrical current which can safely be used in the
          Demised Premises, taking into account the capability of the electric
          wiring in the Building and shall not use more than such safe capacity.
          Landlord's consent to the installation of electric equipment shall not
          relieve the Tenant from the obligation not to use more electricity
          than such safe capacity.

     (o)  Landlord shall have the right to prescribe the weight and method of
          installation and position of safes or other heavy fixtures or
          equipment, and all damage done to the Building by taking in or
          removing safes or any other articles of Tenant's office equipment, or
          due to its being in the Demised Premises, shall be repaired at the
          expense of Tenant.

     (p)  Tenant may not install carpet padding or carpet by means of a mastic,
          glue or cement without Landlord's prior written consent. Such
          installation shall be by tackless strip or double-faced tape only.

     (q)  Tenant shall not, without Landlord's prior written consent in each
          instance, do any cooking, baking, heating, preparation, serving or
          selling of any foods or beverages in the Demised Premises, or permit
          the same to occur, except for coffee service and microwave ovens to
          service Tenant.

     (r)  Tenant shall not allow its employees or invitees to loiter in the
          common areas of the Building.

     (s)  The front parking lot is for visitors only. All tenants are to park
          in the parking garage located at the rear of the building.

                                       37
<PAGE>

                                   EXHIBIT "C"

                                LICENSE AGREEMENT

     This Agreement, made and entered into this ______ day of October, 1999, by
and between XXI OFFICE PLAZA ASSOCIATES (the "Licensor") and TEK DIGITEL, INC.,
a Maryland corporation (the "Licensee").

     1. GRANT AND PURPOSE: Commencing on Licensor hereby grants to Licensee, and
Licensee hereby accepts, a license to (a) install, maintain and operate for the
term hereof, a satellite dish antenna more fully described on Appendix "A"
attached hereto ("Antenna") having the size and weight specifications and
frequency ranges described on Appendix "A" attached hereto at the location and
mounted as described on Appendix "B" attached hereto, at the building known as
Century XXI Office Complex, ("Building"), subject to all governmental laws,
rules and regulations, including but not limited to local zoning ordinances and
restrictions of record, in accordance with the following terms, covenants and
conditions.

     2. GENERAL USE RESTRICTIONS. (A) Licensee may install, maintain, or use the
Antenna in accordance with this License provided: (i) an acceptable amount of
spare space for additional facilities shall be maintained for existing and
future occupants, suppliers or utility companies of the Building, as determined
in Licensor's reasonable opinion, (ii) if the use of the Antenna or its related
equipment at any time may create an electromagnetic field exceeding normal
insulation ratings or cause radiation higher than normal, the Antenna facilities
shall be appropriately insulated to prevent such excessive electromagnetic
fields or radiation, and (iii) Licensee's use does not unreasonably interfere
with the use of similar equipment used by other occupants in the Building or the
use of the roof area by Licensor for any purpose whatsoever. Licensor reserves
the right to require that Licensee relocate or remove the Antenna upon any
violation or the occurrence of these provisions, or upon any violation of any
governmental laws, rules or regulations or restrictions of record or if the
Antenna becomes a dangerous or potentially dangerous condition, if Licensee
fails to correct such condition within three (3) days after written notice from
Licensor to Licensee.

     (B) Licensee shall not, without the prior written consent of Licensor in
each instance, grant to any third party a security interest or lien in or on the
Antenna, and any such security interest or lien granted without Licensor's
written consent shall be null and void. Licensor does not warrant that the
Licensee's use or operation of the Antenna will be free from the following
(collectively called "Facilities Problems"): (x) any eavesdropping or
wire-tapping by unauthorized parties, (y) any failure of the Antenna to satisfy
Licensee's requirements, or (z) any shortages, failures, variations,
interruptions, disconnections, loss or damage caused by the installation,
maintenance, replacement, use or removal of communication facilities by or for
other tenants or occupants at the Building, by any failure of the environmental
conditions or the power supply for the Building to conform to any requirements
for the Antenna or any associated equipment, or any other problems associated
with the Antenna by any other cause. Under no circumstances shall any Facilities
Problems, render Licensor or Landlord liable to Licensee for damages by reason
of loss of profits, business interruption or other consequential damage, or
relieve Licensee from performance of Licensee's obligations under this License
or the "Lease" (as herein defined).

     3. TERM: The term of this License shall expire simultaneously with the
expiration or earlier termination of the lease agreement (the "Lease") dated
October ______, 1999 by and between the Licensor, as the landlord and Licensee,
as the tenant, for premises known as Suite 201 located at the 20030 Century
Boulevard, Germantown, Maryland (the "Premises") unless sooner terminated as
provided herein.

     4. PERMITS AND LICENSES: Licensee, at its sole risk, effort and expense,
will install, maintain and operate the Antenna in compliance with all laws,
ordinances or regulations, federal, state or local, applicable thereto
(collectively "Laws"), and secure all licenses or permits which are necessary in
connection with this License or the Antenna. Licensee will give Licensor timely
notice of any requirements, whether governmental or otherwise, with which
Licensor must comply pertaining to the Antenna, and Licensee will bear any cost
attendant to such compliance. Licensee will have the ongoing duty to assure that
the operation of the Antenna continues to be in compliance with all Laws and
that all required permits and licenses are maintained and kept current. Should
the necessary governmental or other approvals, licenses or permits not be
granted or after granted be withdrawn, canceled or terminated, then this License

                                       38
<PAGE>

will immediately terminate, and both parties will be relieved of any further
obligation to the other (except that Licensee's obligations under paragraphs 8
and 10 hereof shall survive any such termination).

     5. TAXES: Licensor hereby acknowledges that the Antenna, irrespective of
the fact that the same may be affixed or attached to the premises and otherwise
by operation of law would become or could be deemed to become a part of the
premises, shall not be nor be deemed to be a part of the premises and shall at
all times remain the sole and exclusive personal property of the Licensee.
Licensee will pay all personal property, excise or other taxes, assessments and
license fees relating to the operation of the Antenna.

     6. INSTALLATION: The parties anticipate that the installation of the
Antenna at the location agreed upon may require alterations or additions and
utility connections (the "Installation"). Licensee will install the Antenna in a
good and workmanlike manner under the supervision of Licensor and pursuant to
plans and specifications approved in advance by Licensor in writing. Licensee
shall not make any alterations or additions to the Antenna without the prior
written consent of Licensor, which consent shall not be unreasonably withheld,
conditioned or delayed. In connection with the Installation, the Licensee shall
secure appropriate final lien waivers executed and notarized by all parties
performing services or providing materials.

     7. MAINTENANCE: Licensee will provide complete maintenance and repair
services (i) for the Antenna, pertaining to appearance, cleaning, parts and
labor (whether or not the defects are covered by manufacturer's warranties),
with the objective of keeping the Antenna in good operating order, condition and
repair; and (ii) for the portions of the Building and roof which Licensee
utilized in respect of the Antenna, pertaining to the condition of the roof and
building structure, with the Licensee being responsible for all damages and
losses resulting from this License or from the acts or omissions of the
Licensee, including but not limited to the invalidation of any roof warranty,
with the objective of keeping the Building structure and roof in good condition
and repair (collectively the "Maintenance") all of which will be performed under
the supervision of Licensor. Licensor shall have the right at all times, and
from time to time, to inspect the Antenna and its location for any purpose
whatsoever. If Licensee ceases to perform its Maintenance obligations in
accordance herewith, and such failure continues for more than ten (10) days
after Licensor's written notice to Licensee, then Licensor may upon reasonable
notice terminate this License, and Licensee shall within fifteen (15) days of
such termination remove the Antenna and perform its Removal and Restoration
obligations outlined in paragraph 8 hereof, immediately after such event. The
foregoing ten (10) day grace period will be extended to thirty (30) days to the
extent the failure cannot reasonably be cured by Licensee within such ten (10)
day period and Licensee has commenced to cure and is diligently prosecuting the
cure to completion during such ten (10) day grace period. Upon the foregoing
termination, the Licensee's obligation to pay the monthly license fee shall
likewise terminate.

     8. REMOVAL: Upon the expiration or earlier termination of the License,
Licensee shall remove the Antenna and all improvements from the premises (the
"Removal") and restore the location to its appearance and condition existing
immediately before the original installation of the Antenna (the "Restoration").
The Removal and Restoration must be performed under the supervision of Licensor
unless otherwise specified herein completed within thirty (30) days after the
expiration or earlier termination of the License.

     9. SUBCONTRACTING AND RELATIONSHIP BETWEEN THE PARTIES: Licensee may
subcontract all or any part of the Installation, Maintenance, Removal, or
Restoration of the Antenna. Should any part of Licensee's responsibilities
hereunder be subcontracted, such subcontractor shall be Licensee's sole
responsibility and shall comply with all the terms, covenants and conditions
herein as if said subcontractor were included in the term "Licensee". Licensee
and its subcontractors shall at all times be independent contractors, and it is
not the intent of Licensee or Licensor to create any type of lease, employment,
agency, partnership or joint venture relationship.

     10. WAIVER, INDEMNIFICATION AND INSURANCE: (A) THE INSTALLATION,
MAINTENANCE, OPERATION, USE, REMOVAL AND RESTORATION OF THE ANTENNA SHALL BE AT
LICENSEE'S SOLE RISK, COST AND EXPENSE.

     (B) Licensee unconditionally remises, releases and forever discharges the
Landlord (both the land trust and the beneficiary of the land trust) and
Licensor, as well as their respective partners, officers, directors,

                                       39
<PAGE>

shareholders, employees successors and assigns from, and waives all claims for,
all losses, liabilities, damages and expenses of whatsoever nature, including
reasonable attorneys' fees and all other costs of investigating, preparing or
defending any threatened, pending or completed action, claim or proceeding of
any kind or nature (collectively "Claims"), arising out of, incurred in
connection with or resulting from, (i) the consequence of granting this License;
(ii) the Installation, Maintenance, Removal, Restoration, operation, existence
or use of the Antenna or Premises, as the case may be; or (iii) any breach or
default on the part of the Licensee hereunder; it being expressly understood and
agreed that this release and waiver shall apply to any Claims asserted by any
party, irrespective of whether or not such party is an employee, agent or
contractor of the Licensee, and also irrespective of whether arising or alleged
to arise from any joint or several act or omission of Landlord (both the land
trust and the beneficiary of the land trust) or Licensor, or their respective
officers, shareholders, directors, partners, employees, successors or assigns,
whether concerning or relating to personal injuries or other harms, or property
damage or loss, whether or not such have been caused directly or indirectly, or
proximately or remotely, and whether such are anticipated or unanticipated.

     (C) Licensee unconditionally agrees to indemnify and hold harmless, and at
the option of Landlord or Licensor or their successors or assigns defend at
Licensee's sole cost (with counsel reasonably acceptable), the Landlord (both
the land trust and the beneficiary of the land trust) and Licensor, as well as
their respective partners, shareholders, officers, directors, employees,
successors and assigns (collectively "Indemnities") from and against any and all
loss, liability, damage and expense of whatsoever nature, including reasonable
attorneys' fees and all other reasonable costs of investigating, preparing or
defending any threatened, pending or completed action, claim or proceeding of
any kind or nature (collectively "Claims"), arising out of, incurred in
connection with or resulting from (i) the consequence of granting this License;
(ii) the Installation, Maintenance, Removal, Restoration, operation, use or
existence of the Antenna or Premises, as the case may be; or (iii) any breach or
default by Licensee hereunder; it being expressly understood and agreed that
this indemnity shall apply to any Claims asserted by any party, irrespective of
whether or not such party is an employee, contractor or agent of the Licensee,
and also irrespective of whether arising or alleged to arise from any joint or
several act or omission of Landlord (both the land trust and the beneficiary of
the land trust) or Licensor, or their respective officers, shareholders,
directors, partners, employees, successors or assigns, whether concerning or
relating to personal injuries or other harms, or property damage or loss,
whether or not such have been caused directly or indirectly or proximately or
remotely, on anticipated or unanticipated. If pursuant to an election,
Licensee's counsel defends any Claim on behalf of the Indemnitees, Licensee's
counsel shall not enter into a settlement of any matter without the prior
written consent of the party (or parties) who made the election.

     (D) Licensee shall purchase and maintain during the Term of this License:
(i) commercial general liability insurance covering property damage or
destruction (including loss of use thereof) and bodily injuries, including
death, along with contractual liability coverage, with a limit of not less than
One Million Dollars ($1,000,000.00) for each occurrence; and (ii) workman's
compensation insurance, with Maryland statutory limits, covering employer's
liability. Such policies shall be secured from an insurance company with a Best
rating or not less than an A 10 which company must be licensed to do business in
the State of Maryland. Such policies shall include Landlord (both the land trust
in which legal title to the premises is held and the beneficiary of said land
trust) and its agent Licensor as additional named insureds. Upon execution
hereof by Licensee, Licensee shall deliver a certificate of insurance to
Landlord evidencing the foregoing coverages, which certificate shall state that
the insurance coverage may not be changed or canceled without at least thirty
(30) days prior written notice to Landlord. Each policy evidencing the insurance
carried by Licensee shall contain a clause indicating that such policy and the
coverage evidenced thereby shall be primary with respect to the policies carried
by Landlord, and that coverage carried by Landlord shall be excess insurance.

     (E) The covenants and agreements contained in this paragraph 10 shall
survive the expiration or earlier termination of this Agreement.

     11. TERMINATION: (A) Notwithstanding any other provision of this License to
the contrary, in the event of a fire or other casualty or other loss and, as a
result thereof Licensee's Antenna is in a state of disrepair or is inoperable,
then and in such event Licensee shall either install a new Antenna or repair the
existing Antenna within thirty (30) days of such event, or the License shall
immediately terminate.

                                       40
<PAGE>

     (B) If Licensee fails in any respect to perform any agreements, covenant or
obligation in the license, then and in such event, the Licensor, after the
continuance of any such failure or default for twenty (20) days after giving
notice ("Default Notice") thereof to the Licensee, may terminate this License or
may (but this shall not be deemed to impose an obligation on the Licensor so to
do) cure such failure or default, on behalf of and at the expense of the
Licensee. A default under this License shall be "ipso facto" a default under the
Lease and a default under the Lease shall be "ipso facto" a default under the
Lease shall be "ipso facto" a default under this License. If such failure or the
default is not reasonably curable within the twenty (20) day time period
allotted, notwithstanding the foregoing, if Licensee has commenced to cure the
default or failure within the aforementioned twenty (20) day period and is
proceeding promptly and diligently to cure such default or failure, then,
provided no property or person is jeopardized thereby, the Licensor will refrain
from pursuing its remedies for a reasonable period of time not to exceed the
date which is sixty (60) days after the Default Notice.

     (C) If Licensee ceases to operate the Antenna, or if the operation of the
Antenna at the location is determined in a judicial or administrative proceeding
to be in violation of any law, rule or regulation, then and in such event, the
license shall be terminated upon reasonable advance notice to the Licensee.

     (D) This License may be terminated by either party hereto upon sixty (60)
days prior written notice to the other party.

     12. NOTICE: Notice hereunder shall be in writing and effected either by
personal delivery, via recognized overnight courier service or by depositing the
same in an official U.S. mail receptacle as certified mail, return receipt
requested, postage prepaid, addressed, if to Licensor or Landlord, to c/o
Licensor, 180 North Michigan Avenue, Suite 200, Chicago, Illinois, and if to
Licensee, at its Premises in the Building, or such other address as either party
may from time to time designate. Any notice given under this Agreement shall be
in writing and deemed received when delivered if personally served or sent via
overnight courier service or if mailed, three (3) days after placing same in an
official U.S. mail receptacle.

     13. WAIVER: The rights and remedies of the parties hereunder and those
provided by law shall be construed as cumulative and no one of them is exclusive
of any other right or remedy hereunder or allowed by law, and shall be
continuing rights, none of which shall be exhausted by being exercised on one or
more occasions. A waiver by either party of any default, breach or failure of
the other shall not be construed as a continuing waiver, or as a waiver of any
subsequent or different default, breach or failure. In case of a breach by
either party of any covenant, agreement or undertaking, the other party may
accept from the party in breach any payment or payments hereunder without
waiving any rights provided for herein with respect to any such breach.

     14. ASSIGNMENT: Licensee may not assign or transfer this License without
the prior written consent of the Licensor. Any assignment or transfer in
violation of this paragraph shall be void and confer no rights upon any third
person.

     15. LIABILITY OF LANDLORD: The Landlord and its managing agent or any
successor in interest shall not be subject to recourse or personal liability in
respect to any of the terms, covenants or conditions of this License. The
Licensee shall look solely to the equity of Landlord or any successor in
interest in the building and the rents, issues, and profits derived therefrom
for the satisfaction of the remedies of Licensee hereunder. It is mutually
agreed that this clause is and shall be considered an integral part of this
License. Such exculpation of personal liability is absolute and without any
exception whatsoever.

     16. LIENS: Licensee covenants not to suffer or permit any lien of mechanics
or materialmen or others to be placed against the building in connection with
the Antenna. In case of any lien so attaching, Licensee shall immediately cause
it to be released and removed of record or shall secure a bond sufficient to
induce Chicago Title Insurance Company to endorse over such lien.

     17. MISCELLANEOUS: (A) This License constitutes the entire understanding of
the parties and supersedes any prior written or oral negotiations or
understandings.

                                       41
<PAGE>

     (B) It is the intention of the parties hereto that this License shall be
construed and enforced in accordance with the laws of the State of Maryland,
without reference to the conflicts of law provisions thereof.

     (C) If any provision of this License is held invalid or unenforceable, the
remainder of this License shall not be affected thereby, and each other
provision of this License shall be valid and enforceable to the fullest extent
permitted by law.

     The parties hereto have caused this Agreement to be executed as of the date
first above written.

LICENSOR:                               LICENSEE:
XXI OFFICE PLAZA ASSOCIATES             TEK DIGITEL, INC.
By: SRA/Century XXI-GP, Inc.
Its General Partner

By:                                     By:
   ---------------------------------       -------------------------------------
   Clifford M. Stein                       Name:
   President                                    --------------------------------
                                           Title:
                                                 -------------------------------

                                       42
<PAGE>

                                   EXHIBIT "D"

                                   WORKLETTER

     This is the Workletter referred to in the lease to which this Exhibit "D"
is attached (the "Lease") wherein the Tenant is leasing certain office space
(the "Demised Premises") from the Landlord at the property known as XXI Century
Office Plaza, Germantown, Maryland (the "Development"). Capitalized terms used
herein, unless otherwise defined in this Workletter, shall have the respective
meanings assigned to them in the Lease.

     1. Work. Landlord, at Landlord's sole cost and expense, shall provide the
construction material, hardware and equipment and the labor to construct and
install improvements (the "Work") to the Demised Premises in accordance with a
Construction Plan to be prepared by Landlord in a manner consistent with the
Space Plan attached hereto as Attachment "I". Landlord shall cause the
Construction Plan to be prepared as soon as practicable following the receipt of
such Space Plan and shall promptly thereafter deliver a copy of the Construction
Plan to Tenant. Tenant shall have three (3) business days to approve the
Construction Plan and returning same to Landlord. Once the Construction Plan is
approved by Tenant, should a conflict arise between the provisions of this
Workletter and the Construction Plan, the Construction Plan shall govern and
control. Subject to the provisions of this Workletter, Landlord shall proceed
diligently to cause the Work to be substantially completed in accordance with
the terms and conditions of the Lease.

     Landlord agrees to pay all fees in connection with the Construction Plan
(the "Plans"), to a maximum allowance of $6.00 per square foot.

     2. Additional Work. If Tenant wishes Landlord, prior to the commencement of
the Term, to employ labor and to use items of material, hardware, equipment or
decorating that exceed Landlord's obligation hereunder as limited to the term
"Work" (such excess items are herein referred to collectively as "Additional
Work"), Tenant shall, at its expense, cause drawings and specifications
("Additional Plans") for the Additional Work to be completed and submit such
Additional Plans to the Landlord for its approval. Landlord shall not withhold
its approval unreasonably if the Additional Work does not affect the structure
or safety or the exterior appearance of the Development or the heating
ventilating, air conditioning, plumbing or other mechanical systems of the
Development. If Landlord approves the Additional Work as reflected in the
Additional Plans, Landlord shall obtain and submit to Tenant estimates of the
cost of the Additional Work. The cost of such Additional Work shall include the
direct costs thereof, plus general conditions (including rubbish removal,
hoisting, permits, field supervision and the like) plus the contractor's charges
for overhead and fees, together with ten percent (10% of all such costs for
overhead and construction management services, which fee shall be paid to
Landlord, or its agent, as Landlord shall direct. Landlord shall not be
obligated to proceed with such Additional Work until the cost set forth in such
estimate is paid by Tenant to Landlord for deposit in Landlord's trust account
for payment of the Additional Work as work progresses. Any deficit shall be paid
to Landlord upon completion of such Additional Work and within seven (7) days
after Landlord shall have furnished Tenant with bills for the complete costs
thereof.

     Any Additional Work or alterations to the Demised Premises desired by
Tenant after the commencement of the Term shall be subject to the provisions of
Section 11 of the Lease.

     3. Delays in Tenant Work. Notwithstanding the date provided in the lease
for the commencement of the Term thereof to the contrary, Tenant's obligations
to pay Rent thereunder shall not commence until Landlord shall have
substantially completed all Work to be performed by Landlord, as set forth in
Paragraph 1 hereof; provided, however, if Landlord shall be delayed in
substantially completing the work for any reason set forth in the following
Subsections (a) through (d) of this Section 3, then the Term of the Lease shall
commence on the date otherwise provided therein and the payment of Rent
thereunder shall not be affected or deferred on account of such delay:

          (a) Tenant's failure to timely furnish any information required for
     the preparation of the Plans as and when requested by Landlord; or

                                       43
<PAGE>

          (b) Any reason relating to the request by Tenant for, or the
     completion by landlord of, the Additional Work; or

          (c) Tenant's changes in the Work or the Plans after initial approval
     by Landlord and Tenant (notwithstanding Landlord's further approval of any
     such changes); or

          (d) Any other act, omission or delay by Tenant, its agencies,
     contractors interior space planner (due to actions or inactions of Tenant)
     or persons employed by any of such persons delaying the substantial
     completion of the Work, including actions by or on behalf of Tenant
     pursuant to Paragraph 4 hereof.

     4. Access by Tenant Prior to Commencement of Term. Landlord will permit
Tenant and Tenant's agents, suppliers, contractors and workmen to enter the
Demised Premises prior to the commencement of the Term to enable Tenant to do
such things as may be required by Tenant to make the Demised Premises ready for
Tenant's occupancy, provided that Tenant and its agents, contractors, workmen
and suppliers and their activities in the Demised Premises and Development will
not interfere with or delay the completion of the Work or Additional Work to be
done by Landlord and will not interfere with other activities of Landlord or
occupants of the Development, and only upon prior notice to Landlord. Such
notice must specifcy the name of the licensed contractor, contact information,
insurance compliance and certificates of insurance as per the Lease Agreement,
and days and times of access desired. The Landlord shall have the right, on
notice to Tenant, to cause Tenant or any such agent, contractor, workman or
supplier to leave the Demised Premises and the Development if Landlord
determines that any such interference or delay has been or may be caused. Tenant
agrees that any such entry into the Demised Premises shall be at Tenant's own
risk and Landlord shall not be liable in any way for any injury, loss or damage,
which may occur to any of Tenant's property or Tenant's installations made in
the Demised Premises and Tenant agrees to protect, defend, indemnify and save
harmless Landlord, its partners and their respective agents from all
liabilities, costs, damages, fees and expenses arising out of or connected with
the activities of Tenant or its agents, contractors, suppliers or workmen in or
about the Demised Premises or Development. In addition, prior to the initial
entry to the Development or the Demised Premises by Tenant and by each
contractor or subcontractor for Tenant, Tenant shall furnish Landlord with
policies of insurance covering Landlord as an insured party with such coverages
and such amounts as Landlord may then require in order to insure Landlord
against liability for injury or death or damage to property of Landlord or its
tenants by reason of such entry and any activity or work carried on, in or about
the Development or the Demised Premises.

     5. Miscellaneous. (a) The Work shall be done by Landlord, or its designees,
contractors or subcontractors, in accordance with the terms, conditions and
provisions herein contained.

     (b) Except as herein expressly set forth or in the Lease, landlord has no
agreement with Tenant and has no obligation to do any other work with respect to
the Demised Premises. Any other work in the Demised Premises which Tenant may be
permitted by Landlord to perform prior to commencement of the Term shall be done
at Tenant's sole cost and expense and in accordance with the terms and
conditions of the Lease, including, without limitation, Section 11, the terms
and provisions of Paragraph 4 of this Workletter and such other requirements as
Landlord deems necessary or desirable. Any additional work or alterations to the
Demised Premises desired by Tenant after the commencement of the Term shall be
subject to the provisions of Section 11 of the Lease.

     (c) Time is of the essence under this Workletter.

     (d) Any person signing this Workletter on behalf of the Landlord or Tenant
warrants and represents he has authority to do so.

     (e) This Workletter shall not be deemed applicable to any additional office
space added to the original Demised Premises at any time or from time to time,
whether by any options under the Lease or otherwise, or to any portion of the
original Demised Premises or any additions thereto in the event of a renewal or
extension of the original Term of this Lease, whether by any options under the
Lease or otherwise, unless expressly so provided in the Lease or any amendment
or supplement thereto.

                                       44
<PAGE>

     (f) With respect to any amounts owed by Tenant hereunder and not paid when
due or Tenant's failure to perform its obligations hereunder, Landlord shall
have all the rights and remedies granted to Landlord under the Lease for
nonpayment of Tenant of any amounts owed thereunder or failure by Tenant to
perform its obligations thereunder.

LANDLORD:                               TENANT:
XXI OFFICE PLAZA ASSOCIATES             TEK DIGITEL, INC.
By:  SRA/Century XXI-GP, Inc.
Its General Partner

By:  /s/ Clifford M. Stein              By: /s/ Thomas Yang
    ----------------------------------     -------------------------------------
    Clifford M. Stein                      Name: Thomas Yang
    President                                    -------------------------------
                                           Title COO
                                                 -------------------------------

                                                                        10/21/99

                                       45
<PAGE>

                                   EXHIBIT "D"

                                   SPACE PLAN

   [In the original document, a space plan for the demised premises appears.]

                                       46
<PAGE>

                                   EXHIBIT "E"

                  CLARIFICATIONS RELATING TO OPERATING EXPENSES

Operating Expense Exclusions

     (1)  original construction costs of the Building;

     (2)  interest and amortization of funds borrowed by Landlord, whether
          secured or unsecured;

     (3)  reserves for repairs, maintenance and replacements;

     (4)  costs or expenses associated with leasing space in the building or the
          sale of any interest in the building, including, without limitation,
          advertising and marketing, commissions or any amounts paid for or on
          behalf of a Tenant such as space planning, moving costs, rental and
          other tenant concessions;

     (5)  ground rents;

     (6)  salaries, wages, or other compensation paid to employees or any
          property management organization whose salaries are deemed covered by
          a management fee (i.e., property manager, accounting or clerical
          personnel).

     (7)  amounts paid to any partners, shareholder, officer or director of
          Landlord, for salary or other compensation;

     (8)  costs of electricity outside normal business hours sold to tenants of
          the Building by Landlord or any other special service to tenants or
          services in excess of that furnished to Tenant whether or not Landlord
          receives reimbursement from such tenants as an additional charge;

     (9)  Expenses for repairs, replacements or improvements arising from the
          initial construction of the Building to the extent such expenses are
          either: (i) reimbursed to Landlord by virtue of warranties from
          contracts or suppliers, or (ii) result by reason of deficiencies in
          design or workmanship except conditions resulting from ordinary wear
          and tear.

     (10) any amounts paid to any person, firm or corporation related or
          otherwise affiliated with Landlord or any general partner, officer or
          director Landlord or any of its general partners, to the extent same
          exceeds arms-length competitive prices paid in the Germantown area for
          the services or goods provided;

     (11) accounting or legal fees incurred in tenant disputes, or in procuring
          tenants, or for fees not related to the operation and maintenance of
          the building but personal to Landlord;

     (12) costs of repairs incurred by reason of fire or other casualty or
          condemnation to the extent Landlord receives compensation therefor
          through proceeds of insurance or condemnation awards;

     (13) cost of renovating or otherwise improving space for new tenants or in
          renovating space vacated by any tenant or any other work, exclusive of
          repairs and maintenance, which landlord performs for any tenant;

     (14) costs relating to maintaining Landlord's existence, either as a
          corporation, partnership, or other entity, such as trustee's fees,
          annual fees, partnership organization or administration expenses, deed
          recordation expenses, legal and accounting fees (other than with
          respect to Building operations);

                                       47
<PAGE>

     (15) costs incurred to remove any hazardous or toxic wastes, materials or
          substances from either the Building or Land;

     (16) capital improvements to the Building except where such items improve
          the operating efficiency of the building, as clarified in subparagraph
          5.(2) of the Lease Agreement; and

     (17) depreciation of the building or any equipment, machinery, fixtures or
          improvements therein.

                                       48
<PAGE>

     Real Estate Taxes

     Any inheritance, estate, succession, transfer, gift tax, or capital levy
     shall not be included in real estate taxes and further, no franchise,
     corporation, income or profit tax calculated upon the Landlord's net income
     be passed through to the Tenant, except to the extent that if at any time
     during the Term of this Lease the methods of taxation prevailing at the
     commencement of the term of this Lease shall be altered so that in lieu of,
     or as a substitute for, the whole or any part of the taxes, assessments,
     levies, impositions or charges now levied, assessed or imposed on real
     estate and the improvements thereon, there shall be levied, assessed or
     imposed a tax, assessment, levy fee or other charge: (I) on or measured by
     the rents received therefrom; (ii) measured by or based in whole or in part
     upon the Building and Imposed upon Landlord; or (iii) measured by the rent
     payable by Tenant under this Lease, then all such taxes, assessments,
     levies, impositions, charges or fees or the part thereof so measured or
     passed, shall be deemed to be included within the term "real estate taxes".

                                       49

<PAGE>

                           SPACE ACCEPTANCE AGREEMENT

    This Memorandum is an Amendment to the Lease Agreement for space in the
office building known as 20030 Century Boulevard of Century XXI Office Complex,
Germantown, Maryland, heretofore executed between XXI OFFICE PLAZA ASSOCIATES,
as Landlord and TEK DIGITEL, INC., as Tenant.

    Landlord and Tenant hereby agree that:

1.  The Leased Premises are tenantable, the Landlord has no further obligation
    for construction, and Tenant acknowledges that both the Building and the
    Leased Premises are satisfactory in all respects.

2.  The Commencement Date of the Lease Agreement is hereby agreed to be the 17th
    day of December, 1999.

3.  The Expiration Date of the Lease Agreement is hereby agreed to be the 16th
    day of December 2004.

    All other terms and conditions of the Lease Agreement are hereby ratified
and acknowledged to be unchanged.

    Agreed and executed on this 27th day of March, 2000.

                                       Landlord: XXI Office Plaza Associates
                                       By: SRA/Century XXI-G.P., Inc.
                                       Its General Partner

                                       /s/ Clifford M. Stein
                                       -------------------------------------
                                       By:     Clifford M. Stein
                                       Title:  President

                                       Tenant: Tek Digitel, Inc.

                                       /s/ Thomas Yang
                                       -------------------------------------
                                       By:     Thomas Yang
                                       Title:  COO<PAGE>

                                                                    EXHIBIT 4(b)

                              AMENDED AND RESTATED
                                CREDIT AGREEMENT

                         Dated as of September 12, 2000

                                      among

                                HUNT CORPORATION,
                          HUNT GRAPHICS EUROPE LIMITED
                                       and
                           HUNT GRAPHICS EUROPE B.V.,
                                  as Borrowers,

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

                               THE SEVERAL LENDERS
                         FROM TIME TO TIME PARTY HERETO

                                       AND

                             BANK OF AMERICA, N.A.,
                                    as Agent

<PAGE>

                                TABLE OF CONTENTS

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

SECTION 2  CREDIT FACILITIES....................................................................................28
    2.1      Revolving Loans....................................................................................28
    2.2      Domestic Letter of Credit Subfacility..............................................................30
    2.3      Competitive Loan Subfacility.......................................................................35
    2.4      Swingline Loan Subfacility.........................................................................38
    2.5      Foreign Currency Loan Subfacility..................................................................40
    2.6      Foreign Letter of Credit Subfacility...............................................................43

SECTION 3  OTHER PROVISIONS RELATING TO CREDIT FACILITIES.......................................................49
    3.1      Default Rate.......................................................................................49
    3.2      Extension and Conversion...........................................................................49
    3.3      Prepayments........................................................................................50
    3.4      Termination and Reduction of Revolving Committed Amount............................................52
    3.5      Fees...............................................................................................53
    3.6      Capital Adequacy...................................................................................54
    3.7      Unavailability.....................................................................................54
    3.8      Illegality.........................................................................................55
    3.9      Requirements of Law................................................................................56
    3.10     Taxes..............................................................................................57
    3.11     Indemnity..........................................................................................60
    3.12     Pro Rata Treatment.................................................................................60
    3.13     Sharing of Payments................................................................................61
    3.14     Payments, Computations, Etc........................................................................62
    3.15     Mandatory Assignment...............................................................................64

SECTION 4  GUARANTY.............................................................................................64
    4.1      The Guarantee......................................................................................64
    4.2      Obligations Unconditional..........................................................................65
    4.3      Reinstatement......................................................................................66
    4.4      Certain Additional Waivers.........................................................................66
    4.5      Remedies...........................................................................................66
    4.6      Rights of Contribution.............................................................................66
    4.7      Continuing Guarantee...............................................................................67

SECTION 5  CONDITIONS...........................................................................................67
    5.1      Closing Conditions.................................................................................67
    5.2      Conditions to all Extensions of Credit.............................................................69

</TABLE>

                                     - i -
<PAGE>

<TABLE>
<CAPTION>
<S>         <C>                                                                                                 <C>
SECTION 6  REPRESENTATIONS AND WARRANTIES........................................................................70
    6.1      Financial Condition.................................................................................70
    6.2      No Change...........................................................................................71
    6.3      Organization; Existence; Compliance with Law........................................................71
    6.4      Power; Authorization; Enforceable Obligations.......................................................71
    6.5      No Legal Bar........................................................................................72
    6.6      No Material Litigation..............................................................................72
    6.7      No Default..........................................................................................72
    6.8      Ownership of Property; Liens........................................................................72
    6.9      Intellectual Property...............................................................................72
    6.10     No Burdensome Restrictions..........................................................................73
    6.11     Taxes...............................................................................................73
    6.12     ERISA...............................................................................................73
    6.13     Governmental Regulations, Etc.......................................................................75
    6.14     Subsidiaries........................................................................................76
    6.15     Purpose of Loans and Letters of Credit..............................................................76
    6.16     Environmental Matters...............................................................................76

SECTION 7  AFFIRMATIVE COVENANTS.................................................................................77
    7.1      Information Covenants...............................................................................77
    7.2      Preservation of Existence and Franchises............................................................80
    7.3      Books and Records...................................................................................80
    7.4      Compliance with Law.................................................................................80
    7.5      Payment of Taxes and Other Indebtedness.............................................................80
    7.6      Insurance...........................................................................................81
    7.7      Maintenance of Property.............................................................................81
    7.8      Performance of Obligations..........................................................................81
    7.9      Use of Proceeds.....................................................................................81
    7.10     Audits/Inspections..................................................................................81
    7.11     Financial Covenants.................................................................................81
    7.12     Additional Credit Parties...........................................................................82
    7.13     Ownership of Subsidiaries...........................................................................82

SECTION 8  NEGATIVE COVENANTS....................................................................................82
    8.1      Indebtedness........................................................................................83
    8.2      Liens...............................................................................................84
    8.3      Nature of Business..................................................................................84
    8.4      Consolidation, Merger, Sale or Purchase of Assets, etc..............................................84
    8.5      Advances, Investments, Loans, etc...................................................................85
    8.6      Restricted Payments.................................................................................85
    8.7      Prepayments of Indebtedness, etc....................................................................86
    8.8      Transactions with Affiliates........................................................................86
    8.9      Fiscal Year.........................................................................................86
    8.10     Limitation on Restrictions on Subsidiary Dividends and Other Distributions, etc.....................86
    8.11     Issuance and Sale of Subsidiary Stock...............................................................87
    8.12     Sale Leasebacks.....................................................................................87
    8.13     No Further Negative Pledges.........................................................................87
    8.14     Operating Lease Obligations.........................................................................87
</TABLE>

                                     - ii -
<PAGE>

<TABLE>
<CAPTION>
<S>         <C>                                                                                                 <C>
SECTION 9  EVENTS OF DEFAULT.....................................................................................88
    9.1      Events of Default...................................................................................88
    9.2      Acceleration; Remedies..............................................................................90

SECTION 10  AGENCY PROVISIONS....................................................................................91
    10.1     Appointment.........................................................................................91
    10.2     Delegation of Duties................................................................................92
    10.3     Exculpatory Provisions..............................................................................92
    10.4     Reliance on Communications..........................................................................93
    10.5     Notice of Default...................................................................................93
    10.6     Non-Reliance on Agent and Other Lenders.............................................................93
    10.7     Indemnification.....................................................................................94
    10.8     Agent in its Individual Capacity....................................................................94
    10.9     Successor Agent.....................................................................................94

SECTION 11  MISCELLANEOUS........................................................................................95
    11.1     Notices.............................................................................................95
    11.2     Right of Set-Off....................................................................................96
    11.3     Benefit of Agreement................................................................................97
    11.4     No Waiver; Remedies Cumulative......................................................................99
    11.5     Payment of Expenses, etc...........................................................................100
    11.6     Amendments, Waivers and Consents...................................................................100
    11.7     Counterparts.......................................................................................101
    11.8     Headings...........................................................................................101
    11.9     Survival of Indemnification........................................................................101
    11.10    Governing Law; Submission to Jurisdiction; Venue; Arbitration......................................101
    11.11    Severability.......................................................................................103
    11.12    Entirety...........................................................................................103
    11.13    Survival of Representations and Warranties.........................................................103
    11.14    Binding Effect; Termination of Credit Agreement; etc...............................................103
    11.15    Judgment Currency..................................................................................103
    11.16    Confidentiality....................................................................................104
    11.17    Source of Funds....................................................................................105

</TABLE>

                                    - iii -
<PAGE>

                                    SCHEDULES

Schedule 1.1A              Existing Letters of Credit
Schedule 1.1B              Calculation of MLA Cost
Schedule 1.1C              Form of Notice of Borrowing
Schedule 1.1D              Form of Notice of Extension/Conversion
Schedule 1.1E              Investments
Schedule 1.1F              Liens
Schedule 2.1(a)            Lenders
Schedule 2.3(b)-1          Form of Competitive Bid Request
Schedule 2.3(b)-2          Form of Notice of Receipt of Competitive Bid Request
Schedule 2.3(c)            Form of Competitive Bid
Schedule 2.3(e)            Form of Competitive Bid Accept/Reject Letter
Schedule 6.9               Intellectual Property
Schedule 6.12              ERISA Disclosures
Schedule 6.14              Subsidiaries
Schedule 6.16              Environmental Disclosures
Schedule 7.1(c)            Form of Officer's Compliance Certificate
Schedule 7.12              Form of Joinder Agreement
Schedule 8.1               Indebtedness
Schedule 11.3              Form of Assignment and Acceptance

                                     - iv -

<PAGE>

                      AMENDED AND RESTATED CREDIT AGREEMENT

         THIS AMENDED AND RESTATED CREDIT AGREEMENT dated as of September 12,
2000 (the "Credit Agreement"), is by and among HUNT CORPORATION, a Pennsylvania
corporation ("Hunt"), HUNT GRAPHICS EUROPE LIMITED, a U.K. corporation ("Hunt
Europe), HUNT GRAPHICS EUROPE B.V., a Netherlands corporation ("Hunt BV"; each
of Hunt, Hunt Europe and Hunt BV hereinafter may be referred to as a "Borrower"
or, collectively, as the "Borrowers"), the subsidiaries of Hunt identified on
the signature pages hereto and such other subsidiaries of Hunt as may from time
to time become a party hereto (the "Guarantors"), the several lenders identified
on the signature pages hereto and such other lenders as may from time to time
become a party hereto (the "Lenders") and BANK OF AMERICA, N.A., as agent for
the Lenders (in such capacity, the "Agent").

                               W I T N E S S E T H

         WHEREAS, the Borrowers have requested that the Lenders provide a
$50,000,000 revolving credit facility for the purposes hereinafter set forth;

         WHEREAS, the Lenders have agreed to make the requested credit facility
available to the Borrowers on the terms and conditions hereinafter set forth;

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

                                    SECTION 1

                                   DEFINITIONS

         1.1  Definitions.

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

                  "Additional Credit Party" means each Person that becomes a
         Guarantor after the Closing Date by execution of a Joinder Agreement.

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

                  "Agent" shall have the meaning assigned to such term in the
         heading hereof.

<PAGE>

                  "Agent's Fee Letter" means that certain letter agreement,
         dated as of August 21, 2000, between the Agent and Hunt, as amended,
         modified, supplemented or replaced from time to time.

                  "Agent's Fees" shall have the meaning assigned to such term in
         Section 3.5(c).

                  "Alternative Assets" means, in connection with any proposed
         Asset Sale pursuant to the terms of Section 8.4(b)(iv)(B), assets
         (including stock or other equity interests acquired in a transaction
         contemplated by and permitted under Section 8.4(c) and whether new,
         additional or replacement assets but exclusive of assets acquired in
         the course of regular upkeep and maintenance) which are similar in
         nature, purpose or business line to other assets owned or leased by
         Hunt and/or its Subsidiaries prior to or at the time of the acquisition
         of such assets and useful in the conduct of the business of Hunt and
         its Subsidiaries as permitted to be conducted pursuant to Section 8.3.

                  "Applicable Margin" means, for purposes of calculating the
         applicable interest rate for any day for any Eurodollar Loan or the
         applicable rate of the Unused Fee for any day for purposes of Section
         3.5(a) or the applicable rate of the Standby Letter of Credit Fee for
         any day for purposes of Section 3.5(b)(i), the appropriate applicable
         margin corresponding to the Consolidated Leverage Ratio in effect as of
         the most recent Calculation Date:
<TABLE>
<CAPTION>

===================================================================================================================
                                               Applicable                                    Applicable
                      Consolidated             Margin for            Applicable              Margin for
  Pricing             Leverage                 Eurodollar            Margin for              Standby Letter
  Level               Ratio                    Loans                 Unused Fee              of Credit Fee
--------------------------------------------------------------------------------------------------------------------
<S>                   <C>                       <C>                  <C>                     <C>
     I                Equal to or less          55.0 bps              15.0 bps                  55.0 bps
                      than 1.75 to 1.00
--------------------------------------------------------------------------------------------------------------------
    II                Greater than 1.75         65.0 bps              20.0 bps                  65.0 bps
                      to 1.00 but equal
                      to or less than
                      2.25 to 1.00
--------------------------------------------------------------------------------------------------------------------
   III                Greater than 2.25         80.0 bps              25.0 bps                  80.0 bps
                      to 1.00 but equal
                      to or less than
                      2.75 to 1.00
--------------------------------------------------------------------------------------------------------------------
    IV                Greater than 2.75         95.0 bps              30.0 bps                  95.0 bps
                      to 1.00
====================================================================================================================
</TABLE>

         Determination of the appropriate Applicable Margins based on the
         Consolidated Leverage Ratio shall be made as of each Calculation Date.
         The Consolidated Leverage Ratio in effect as of a Calculation Date
         shall establish the Applicable Margins that shall be effective as of
         the date designated by the Agent as the Applicable Margin Change Date.
         The Agent shall determine the Applicable Margins as of each Calculation
         Date and shall promptly notify the Borrowers and the Lenders of the
         Applicable Margins so determined and of the Applicable Margin Change
         Date. Such determinations by the Agent of the Applicable Margins shall
         be conclusive absent demonstrable error.

                                       2
<PAGE>

                  "Applicable Margin Change Date" means, with respect to any
         Calculation Date, a date designated by the Agent that is not more than
         five (5) Business Days after the date pursuant to the terms of Section
         7.1(a) or (b), as applicable, that the Required Financial Information
         for such Calculation Date is required to be delivered to the Agent and
         the Lenders.

                  "Application Period" shall have the meaning assigned to such
         term in Section 8.4(b)(iv)(B)(1).

                  "Asset Sale" means any sale, lease, transfer or other
         disposition (including any such transaction effected by way of merger,
         amalgamation or consolidation) by Hunt or any of its Subsidiaries
         subsequent to the Closing Date of any asset (including stock in
         Subsidiaries of Hunt), including without limitation any sale leaseback
         transaction (whether or not involving a Capital Lease), but excluding
         (a) the sale of inventory in the ordinary course of business for fair
         consideration, (b) the sale or disposition of machinery and equipment
         no longer used or useful in the conduct of such Person's business, (c)
         the sale of any asset having a book value of less than $100,000 and (d)
         any Equity Transaction.

                  "Attributed Principal Amount" means, on any day, with respect
         to any Permitted Receivables Financing entered into by Hunt, the
         aggregate amount (with respect to any such transaction, the "Invested
         Amount") paid to, or borrowed by, such Person as of such date under
         such Permitted Receivables Financing, minus the aggregate amount
         received by the applicable Receivables Financier and applied to the
         reduction of the Invested Amount under such Permitted Receivables
         Financing.

                  "Available EMU Currency" means Deutsche Marks, Guilders,
         Italian Lira and French Francs.

                  "Available Foreign Currency" means euro, any National Currency
         Unit, Pounds Sterling, French Francs, Deutsche Marks, Italian Lira and
         Guilders.

                  "Available Reinvestment Amount" means, at any time, the
         aggregate amount of the Excess Sale Proceeds of all asset sales made
         pursuant to Section 8.4(b)(iv) with respect to which the related
         Application Period has not yet expired, provided that such Excess Sale
         Proceeds (i) have not been applied to the purchase, acquisition or
         construction of Alternative Assets as contemplated by Section
         8.4(b)(iv)(B)(1) and (ii) have been applied to prepay the Loans as
         contemplated by Section 8.4(b)(iv)(B)(2) and Section 3.3(b)(iii).

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

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

                                       3
<PAGE>

                  "Bankruptcy Event" means, with respect to any Person, the
         occurrence of any of the following with respect to such Person: (i) a
         court or governmental agency having jurisdiction in the premises shall
         enter a decree or order for relief in respect of such Person in an
         involuntary case under any applicable bankruptcy, insolvency or other
         similar law now or after the Closing Date in effect, or appointing a
         receiver, liquidator, assignee, custodian, trustee, sequestrator (or
         similar official) of such Person or for any substantial part of its
         Property or ordering the winding up or liquidation of its affairs; or
         (ii) there shall be commenced against such Person an involuntary case
         under any applicable bankruptcy, insolvency or other similar law now or
         after the Closing Date in effect, or any case, proceeding or other
         action for the appointment of a receiver, liquidator, assignee,
         custodian, trustee, sequestrator (or similar official) of such Person
         or for any substantial part of its Property or for the winding up or
         liquidation of its affairs, and such involuntary case or other case,
         proceeding or other action shall remain undismissed, undischarged or
         unbonded for a period of sixty (60) consecutive days; or (iii) such
         Person shall commence a voluntary case under any applicable bankruptcy,
         insolvency or other similar law now or after the Closing Date in
         effect, or consent to the entry of an order for relief in an
         involuntary case under any such law, or consent to the appointment or
         taking possession by a receiver, liquidator, assignee, custodian,
         trustee, sequestrator (or similar official) of such Person or for any
         substantial part of its Property or make any general assignment for the
         benefit of creditors; or (iv) such Person shall be unable to, or shall
         admit in writing its inability to, pay its debts generally as they
         become due.

                  "Bartol Family" means the wife, children and descendants of
         such children of the late George E. Bartol III, their respective
         spouses and estates, any trusts primarily for the benefit of any of the
         foregoing and the administrators, executors and trustees of any such
         estates or trusts.

                  "Base Rate" means, for any day, the rate per annum (rounded
         upwards, if necessary, to the nearest whole multiple of 1/100 of 1%)
         equal to the greater of (a) the Federal Funds Rate in effect on such
         day plus 1/2 of 1% or (b) the Prime Rate in effect on such day. If for
         any reason the Agent shall have determined (which determination shall
         be conclusive absent manifest error) that it is unable after due
         inquiry to ascertain the Federal Funds Rate for any reason, including
         the inability or failure of the Agent to obtain sufficient quotations
         in accordance with the terms of the Credit Agreement, the Base Rate
         shall be determined without regard to clause (a) of the first sentence
         of this definition until the circumstances giving rise to such
         inability no longer exist. Any change in the Base Rate due to a change
         in the Prime Rate or the Federal Funds Rate shall be effective on the
         effective date of such change in the Prime Rate or the Federal Funds
         Rate, respectively.

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

                  "Borrower" or "Borrowers" means the Persons identified as such
         in the heading hereof, together with any successors and permitted
         assigns.

                                       4
<PAGE>

                  "Borrowers' Obligations" means, collectively, the Hunt
         Obligations, the Hunt Europe Obligations and the Hunt BV Obligations.

                  "Business Day" means a day other than a Saturday, Sunday or
         other day on which commercial banks in Charlotte, North Carolina are
         authorized or required by law to close, except that, (i) when used in
         connection with a Revolving Loan that is a Eurodollar Loan, such day
         shall also be a day on which dealings between banks are carried on in
         U.S. dollar deposits in London, England and New York, New York and (ii)
         when used in connection with a Foreign Currency Loan or a Foreign
         Letter of Credit, such day shall also be a day on which dealings in the
         applicable Available Foreign Currency are being carried on between
         banks in London, England with respect to Pounds Sterling and the
         interbank eurocurrency market with respect to other Available Foreign
         Currencies.

                  "Calculation Date" means the last day of each fiscal quarter
         of Hunt.

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

                  "Cash Equivalents" means (a) securities issued or directly and
         fully guaranteed or insured by the United States of America or any
         agency or instrumentality thereof (provided that the full faith and
         credit of the United States of America is pledged in support thereof)
         having maturities of not more than twelve months from the date of
         acquisition, (b) U.S. dollar denominated time deposits and certificates
         of deposit of (i) any Lender, (ii) any domestic commercial bank of
         recognized standing having capital and surplus in excess of
         $500,000,000 or (iii) any bank whose short-term commercial paper rating
         from S&P is at least A-1 or the equivalent thereof or from Moody's is
         at least P-1 or the equivalent thereof (any such bank being an
         "Approved Lender"), in each case with maturities of not more than 270
         days from the date of acquisition, (c) commercial paper and variable or
         fixed rate notes issued by any Approved Lender (or by the parent
         company thereof) or any variable rate notes issued by, or guaranteed
         by, any domestic corporation rated A-1 (or the equivalent thereof) or
         better by S&P or P-1 (or the equivalent thereof) or better by Moody's
         and maturing within six months of the date of acquisition, (d)
         repurchase agreements entered into by a Person with a bank or trust
         company (including any of the Lenders) or recognized securities dealer
         having capital and surplus in excess of $500,000,000 for direct
         obligations issued by or fully guaranteed by the United States of
         America in which such Person shall have a perfected first priority
         security interest (subject to no other Liens) and having, on the date
         of purchase thereof, a fair market value of at least 100% of the amount
         of the repurchase obligations, (e) obligations of any State of the
         United States or any political subdivision thereof, the interest with
         respect to which is exempt from federal income taxation under Section
         103 of the Code, having a long term rating of at least AA-3 or AA- by
         Moody's or S&P, respectively, and maturing within three years from the
         date of acquisition thereof, (f) Investments in municipal auction
         preferred stock (i) rated AAA (or the equivalent thereof) or better by
         S&P or AAA (or the equivalent thereof) or better by Moody's and (ii)
         with dividends that reset at least once every 365 days and (g)

                                       5
<PAGE>

         Investments, classified in accordance with GAAP as current assets, in
         money market investment programs registered under the Investment
         Company Act of 1940, as amended, which are administered by reputable
         financial institutions having capital of at least $100,000,000 and the
         portfolios of which are limited to Investments of the character
         described in the foregoing subdivisions (a), (b), (c), (e) and (f).

                  "Change of Control" means the occurrence of any of the
         following events: (i) any Person or two or more Persons acting in
         concert, other than members of the Bartol Family, shall have acquired
         beneficial ownership, directly or indirectly, of, or shall have
         acquired by contract or otherwise, or shall have entered into a
         contract or arrangement that, upon consummation, will result in its or
         their acquisition of, control over, Voting Stock of Hunt (or other
         securities convertible into such Voting Stock) representing 35% or more
         of the combined voting power of all Voting Stock of Hunt, or (ii)
         during any period of up to 24 consecutive months, commencing after the
         Closing Date, individuals who at the beginning of such 24 month period
         were directors of Hunt (together with any new director whose election
         by Hunt's Board of Directors or whose nomination for election by Hunt's
         shareholders was approved by a vote of at least two-thirds of the
         directors then still in office who either were directors at the
         beginning of such period or whose election or nomination for election
         was previously so approved) cease for any reason to constitute a
         majority of the directors of Hunt then in office. As used herein,
         "beneficial ownership" shall have the meaning provided in Rule 13d-3 of
         the Securities and Exchange Commission under the Securities Exchange
         Act of 1934.

                  "Closing Date" means the date hereof.

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

                  "Commitment" means (i) with respect to each Lender, the
         Revolving Commitment of such Lender, (ii) with respect to the Swingline
         Lender, the Swingline Commitment and (iii) with respect to the Issuing
         Lender, the LOC Commitment.

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

                  "Competitive Bid" means an offer by a Lender to make a
         Competitive Loan pursuant to the terms of Section 2.3.

                  "Competitive Bid Rate" means, as to any Competitive Bid made
         by a Lender in accordance with the provisions of Section 2.3, the fixed
         rate of interest offered by the Lender making the Competitive Bid.

                  "Competitive Bid Request" means a request by Hunt for
         Competitive Bids in accordance with the provisions of Section 2.3(b).

                                       6
<PAGE>

                  "Competitive Bid Request Fee" shall have the meaning assigned
         to such term in Section 3.5(d).

                  "Competitive Loan" means a loan made by a Lender in its
         discretion pursuant to the provisions of Section 2.3.

                  "Competitive Loan Lenders" means, at any time, those Lenders
         which have Competitive Loans outstanding.

                  "Competitive Loan Maximum Amount" shall have the meaning
         assigned to such term in Section 2.3(a).

                  "Consolidated Capital Expenditures" means, for any period, all
         capital expenditures (exclusive of expenditures for acquisitions
         permitted pursuant to the terms of Section 8.4(a) or (c)) of Hunt and
         its consolidated Subsidiaries for such period, as determined in
         accordance with GAAP.

                  "Consolidated EBIT" means, for any period, the sum of (i)
         Consolidated Net Income for such period but excluding (A) non-cash
         charges associated with exercise of stock options, (B) unusual items,
         including but not limited to refinancing, restructuring or
         reorganizational charges, (C) effects of changes in accounting
         principles and (D) extraordinary items, plus (ii) an amount which, in
         the determination of Consolidated Net Income for such period, has been
         deducted for (A) Consolidated Interest Expense for such period and (B)
         total Federal, state, local and foreign income taxes of Hunt and its
         consolidated Subsidiaries for such period.

                  "Consolidated EBITDA" means, for any period, the sum of (i)
         Consolidated EBIT for such period, plus (ii) an amount which, in the
         determination of Consolidated Net Income for such period, has been
         deducted for consolidated depreciation and amortization expense of Hunt
         and its consolidated Subsidiaries for such period.

                  "Consolidated Fixed Charge Coverage Ratio" means, as of any
         Calculation Date, the ratio of (i) Consolidated EBITDA for the
         four-quarter period ended as of such Calculation Date minus
         Consolidated Capital Expenditures for the four-quarter period ended as
         of such Calculation Date minus Restricted Payments (other than
         Restricted Payments made pursuant to clause (iv) of Section 8.6) by
         Hunt and its consolidated Subsidiaries for the four-quarter period
         ended as of such Calculation Date, to (ii) Consolidated Interest
         Expense for the four-quarter period ended as of such Calculation Date
         plus Consolidated Scheduled Funded Indebtedness Payments for the
         four-quarter period ended as of such Calculation Date.

                  "Consolidated Funded Indebtedness" means, at any time, the
         outstanding principal amount of all Funded Indebtedness, without
         duplication, of Hunt and its consolidated Subsidiaries at such time.

                                       7
<PAGE>

                  "Consolidated Interest Expense" means, for any period, all
         interest expense of Hunt and its consolidated Subsidiaries for such
         period, as determined in accordance with GAAP but including in any
         event all imputed interest, whether in the form of "yield", "discount"
         or other similar item, that accrues in respect of the Attributed
         Principal Amount of any Permitted Receivables Financing.

                  "Consolidated Leverage Ratio" means, as of any Calculation
         Date, the ratio of (i) Consolidated Funded Indebtedness as of such
         Calculation Date at such time to (ii) Consolidated EBITDA for the four
         fiscal-quarter period ended as of such Calculation Date.

                  "Consolidated Net Income" means, for any period, net income
         after taxes for such period for Hunt and its consolidated Subsidiaries,
         as determined in accordance with GAAP.

                  "Consolidated Net Worth" means, as of any date, total
         shareholders' equity of Hunt and its consolidated Subsidiaries as of
         such date, as determined in accordance with GAAP; provided that the
         effects of Restricted Payments made pursuant to clause (iv) of Section
         8.6 shall be excluded from the calculation of Consolidated Net Worth.

                  "Consolidated Scheduled Funded Indebtedness Payments" means,
         as of any Calculation Date, the scheduled payments of principal on
         Funded Indebtedness for Hunt and its consolidated Subsidiaries for the
         twelve month period ending on such Calculation Date.

                  "Consolidated Total Assets" means, at any time, all items
         which, in accordance with GAAP, would be classified as assets on a
         consolidated balance sheet of Hunt as of such time minus the amount of
         Contingent Liabilities for Receivables at such time as determined in
         accordance with GAAP.

                  "Contingent Liabilities for Receivables" means, at any time,
         the aggregate amount of recourse (solely for defaulted or delinquent
         receivables) against Hunt and all of its Subsidiaries under all
         Permitted Receivables Financings.

                  "Controlled Group" means (i) the controlled group of
         corporations as defined in Section 414(b) of the Code and the
         applicable regulations thereunder, or (ii) the group of trades or
         businesses under common control as defined in Section 414(c) of the
         Code and the applicable regulations thereunder, of which Hunt or any of
         its Subsidiaries is a member.

                  "Credit Documents" means a collective reference to the Credit
         Agreement, the LOC Documents, each Joinder Agreement, the Agent's Fee
         Letter and all other related agreements and documents issued or
         delivered thereunder or pursuant thereto.

                  "Credit Party" means any of the Borrowers and the Guarantors.

                                       8
<PAGE>

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

                  "Determination Date" means each of:

                           (a) (i) the date three Business Days prior to the
                           date that any Foreign Currency Loan denominated in an
                           Available Foreign Currency others than Pounds
                           Sterling is made or any Foreign Letter of Credit
                           denominated in an Available Foreign Currency others
                           than Pounds Sterling is issued;

                               (ii) the date that any Foreign Currency Loan
                           denominated in Pounds Sterling is made or any Foreign
                           Letter of Credit denominated in Pounds Sterling is
                           issued;

                           (b) (i) the date three Business Days prior to the
                           date that any Foreign Currency Loan denominated in an
                           Available Foreign Currency others than Pounds
                           Sterling is continued from the current Interest
                           Period for such Foreign Currency Loan into a
                           subsequent Interest Period;

                               (ii) the date that any Foreign Currency Loan
                           denominated in Pounds Sterling is continued from the
                           current Interest Period for such Foreign Currency
                           Loan into a subsequent Interest Period;

                           (c)  the date of any drawing under any Foreign Letter
                           of Credit;

                           (d)  the last Business Day of each March, June,
                           September and December; and

                           (e)  the date of any reduction of the Revolving
                           Committed Amount pursuant to the terms of Section
                           3.4(a).

                  "Deutsche Marks" means the lawful currency of the Federal
         Republic of Germany.

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

                  "Dollar Amount" means (a) with respect to Dollars or an amount
         denominated in Dollars, such amount and (b) with respect to an amount
         of any Available Foreign Currency or an amount denominated in such
         Available Foreign Currency, the Dollar Equivalent of such amount on the
         applicable date contemplated in this Credit Agreement.

                  "Dollar Equivalent" means, on any date, with respect to an
         amount denominated in an Available Foreign Currency, the amount of
         Dollars into which the Agent could, in accordance with its practice
         from time to time in the interbank foreign exchange market, convert
         such amount of Available Foreign Currency at its spot rate of exchange
         (inclusive of all reasonable related costs of conversion) applicable to
         the relevant transaction at or about 11:00 A.M., London, England time,
         on such date.

                                       9
<PAGE>

                  "Domestic Letter of Credit" means (i) any letter of credit
         issued by the Issuing Lender for the account of Hunt in accordance with
         the terms of Section 2.2 and (ii) each Existing Letter of Credit.

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

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

                  "Domestic Subsidiary" means, with respect to any Person, any
         Subsidiary of such Person which is incorporated or organized under the
         laws of any State of the United States or the District of Columbia.

                  "Eligible Assignees" means (i) any Lender or any Affiliate or
         Subsidiary of a Lender, and (ii) any other commercial bank, financial
         institution or "accredited investor" (as defined in Regulation D of the
         Securities and Exchange Commission) reasonably acceptable to the Agent
         and Hunt.

                  "EMU" means the Economic and Monetary Union as contemplated in
         the Treaty on European Union.

                  "EMU Legislation" means the legislative measures of the
         European Council (including without limitation European Council
         regulations) for the introduction of, changeover to or operation of the
         euro.

                  "Environmental Laws" means any and all lawful and applicable
         Federal, state, local and foreign statutes, laws, regulations,
         ordinances, rules, judgments, orders, decrees, permits, concessions,
         grants, franchises, licenses, agreements or other governmental
         restrictions relating to the environment or to emissions, discharges,
         releases or threatened releases of pollutants, contaminants, chemicals,
         or industrial, toxic or hazardous substances or wastes into the
         environment including, without limitation, ambient air, surface water,
         ground water, or land, or otherwise relating to the manufacture,
         processing, distribution, use, treatment, storage, disposal, transport,
         or handling of pollutants, contaminants, chemicals, or industrial,
         toxic or hazardous substances or wastes.

                  "Equity Transaction" means any issuance by Hunt or any of its
         Subsidiaries of (A) shares of its capital stock, other than the
         issuance to Hunt of the capital stock of any of its Subsidiaries, (B)
         any shares of its capital stock pursuant to the exercise of options or
         warrants or (C) any shares of its capital stock pursuant to the
         conversion of any debt securities to equity.

                                       10
<PAGE>

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

                  "ERISA Affiliate" means an entity, whether or not
         incorporated, which is under common control with any Credit Party
         within the meaning of Section 4001(a)(14) of ERISA, or is a member of a
         group which includes Hunt and which is treated as a single employer
         under Sections 414(b), (c), (m), or (o) of the Code.

                  "euro" means the single currency of Participating Member
         States of the European Community.

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

                  "Eurodollar Rate" means, for the Interest Period for each
         Eurodollar Loan comprising part of the same borrowing (including
         conversions, extensions and renewals), a per annum interest rate
         determined pursuant to the following formula:

                                             Interbank Offered Rate
             Eurodollar Rate  =  -----------------------------------------------
                                        1 - Eurodollar Reserve Percentage

                  "Eurodollar Reserve Percentage" means for any day, that
         percentage (expressed as a decimal) which is in effect from time to
         time under Regulation D of the Board of Governors of the Federal
         Reserve System (or any successor), as such regulation may be amended
         from time to time or any successor regulation, as the maximum reserve
         requirement (including, without limitation, any basic, supplemental,
         emergency, special, or marginal reserves) applicable with respect to
         Eurocurrency liabilities as that term is defined in Regulation D (or
         against any other category of liabilities that includes deposits by
         reference to which the interest rate of Eurodollar Loans is
         determined), whether or not Lender has any Eurocurrency liabilities
         subject to such reserve requirement at that time. Eurodollar Loans
         shall be deemed to constitute Eurocurrency liabilities and as such
         shall be deemed subject to reserve requirements without benefits of
         credits for proration, exceptions or offsets that may be available from
         time to time to a Lender. The Eurodollar Rate shall be adjusted
         automatically on and as of the effective date of any change in the
         Eurodollar Reserve Percentage.

                  "European Community" means those European countries that are
         signatories to the Treaty on European Union.

                  "Event of Default" means such term as defined in Section 9.1.

                                       11
<PAGE>

                  An "Excess Sale Event" shall be deemed to have occurred if
         either (1) the net book value of all assets sold pursuant to the terms
         of Section 8.4(b)(v) during the preceding twelve (12) months exceeds
         15% of Consolidated Total Assets as determined at the end of the
         immediately preceding fiscal year or (2) the net book value of all
         assets sold pursuant to the terms of Section 8.4(b)(v) during the
         preceding thirty-six (36) months exceeds 30% of Consolidated Total
         Assets as determined at the end of the fiscal year nearest to the date
         thirty-six (36) months prior to such sale of assets.

                  "Excess Sale Proceeds" means, with respect to any Excess Sale
         Event, either (1) if an Excess Sale Event is deemed to occur pursuant
         to clause (1) of the definition thereof, the amount by which the Net
         Proceeds of all such asset sales made during the preceding twelve (12)
         months exceeds 15% of Consolidated Total Assets as determined at the
         end of the immediately preceding fiscal year or (2) if an Excess Sale
         Event is deemed to occur pursuant to clause (2) of the definition
         thereof, the amount by which the Net Proceeds of all such asset sales
         made during the preceding thirty-six (36) months exceeds 30% of
         Consolidated Total Assets as determined at the end of the fiscal year
         nearest to the date thirty-six (36) months prior to such sale of
         assets.

                  "Existing Letter of Credit" means any one of the letters of
         credit described by date of issuance, letter of credit number, undrawn
         amount, name of beneficiary and date of expiry on Schedule 1.1A.

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

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

                  "Fiscal Year End" means, for any fiscal year of Hunt and its
         Subsidiaries, the Sunday nearest the last day of November.

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

                  "Foreign Currency Committed Amount" shall have the meaning
         assigned to such term in Section 2.5(a).

                                       12
<PAGE>

                  "Foreign Currency Equivalent" means, on any date, with respect
         to an amount denominated in Dollars, the amount of any applicable
         Available Foreign Currency into which the Agent could, in accordance
         with its practice from time to time in the interbank foreign exchange
         market, convert such amount of Dollars at its spot rate of exchange
         (inclusive of all reasonable related costs of conversion) applicable to
         the relevant transaction at or about 11:00 A.M., London, England time,
         on such date.

                  "Foreign Currency Loans" shall have the meaning assigned to
         such term in Section 2.5(a).

                  "Foreign Letter of Credit" means any letter of credit issued
         by the Issuing Lender for the account of Hunt Europe or Hunt BV in
         accordance with the terms of Section 2.6.

                  "Foreign LOC Committed Amount" shall have the meaning assigned
         to such term in Section 2.6.

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

                  "Foreign Subsidiary" means, with respect to any Person, any
         Subsidiary of such Person which is not a Domestic Subsidiary.

                  "French Francs" means the lawful currency of the Republic of
         France.

                  "Funded Indebtedness" means, with respect to any Person,
         without duplication, (i) all Indebtedness of such Person for borrowed
         money, (ii) all purchase money Indebtedness of such Person, including
         without limitation the principal portion of all obligations of such
         Person under Capital Leases, (iii) all Guaranty Obligations of such
         Person with respect to outstanding Funded Indebtedness of another
         Person, (iv) with respect to Hunt, the outstanding Attributed Principal
         Amount under any Permitted Receivables Financing and (v) all Funded
         Indebtedness of another Person secured by a Lien on any Property of
         such Person, whether or not such Funded Indebtedness has been assumed
         (or, if less, the aggregate net book value of all Property securing
         such Funded Indebtedness of others). The Funded Indebtedness of any
         Person shall include the Funded Indebtedness of any partnership or
         joint venture in which such Person is a general partner or joint
         venturer.

                  "GAAP" means generally accepted accounting principles in the
         United States applied on a consistent basis and subject to the terms of
         Section 1.3.

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

                                       13
<PAGE>

                  "Guilders" means the lawful currency of the Netherlands.

                  "Guarantor" means:

                           (i) with respect to the Hunt Obligations, (A) each of
                  those Persons identified as a "Guarantor" on the signature
                  pages hereto and (B) each Additional Credit Party which may
                  hereafter execute a Joinder Agreement, together with the
                  successors and permitted assigns of any such Person referred
                  to in clause (A) or (B) of this clause (i);

                           (ii) with respect to the Hunt Europe Obligations, (A)
                  Hunt, (B) each of those Persons identified as a "Guarantor" on
                  the signature pages hereto and (C) each Additional Credit
                  Party which may hereafter execute a Joinder Agreement,
                  together with the successors and permitted assigns of any such
                  Person referred to in clause (A), (B) or (C) of this clause
                  (ii); and

                           (iii) with respect to the Hunt BV Obligations, (A)
                  Hunt, (B) each of those Persons identified as a "Guarantor" on
                  the signature pages hereto and (C) each Additional Credit
                  Party which may hereafter execute a Joinder Agreement,
                  together with the successors and permitted assigns of any such
                  Person referred to in clause (A), (B) or (C) of this clause
                  (iii).

                  "Guaranty Obligations" means, with respect to any Person,
         without duplication, any obligations of such Person (other than
         endorsements in the ordinary course of business of negotiable
         instruments for deposit or collection) guaranteeing or intended to
         guarantee any Indebtedness of any other Person in any manner, whether
         direct or indirect, and including without limitation any obligation,
         whether or not contingent, (i) to purchase any such Indebtedness or any
         Property constituting security therefor, (ii) to advance or provide
         funds or other support for the payment or purchase of any such
         Indebtedness or to maintain working capital, solvency or other balance
         sheet condition of such other Person (including without limitation keep
         well agreements, maintenance agreements, comfort letters issued to a
         creditor of any non-Affiliate or similar agreements or arrangements)
         for the benefit of any holder of Indebtedness of such other Person,
         (iii) to lease or purchase Property, securities or services primarily
         for the purpose of assuring the holder of such Indebtedness, or (iv) to
         otherwise assure or hold harmless the holder of such Indebtedness
         against loss in respect thereof. The amount of any Guaranty Obligation
         under the Credit Agreement shall (subject to any limitations set forth
         therein) be deemed to be an amount equal to the outstanding principal
         amount (or maximum principal amount, if larger) of the Indebtedness in
         respect of which such Guaranty Obligation is made.

                  "HGA" means Hunt Graphics Americas Corporation, a Delaware
         corporation and a Wholly Owned Subsidiary of Hunt.

                  "Hunt" shall have the meaning assigned to such term in the
         heading hereof.

                  "Hunt BV" shall have the meaning assigned to such term in the
         heading hereof.

                                       14

<PAGE>

                "Hunt BV Obligations" means, without duplication, all of the
         obligations of Hunt BV to the Lenders (including the Issuing Lender)
         and the Agent, whenever arising, under the Credit Agreement or any of
         the other Credit Documents.

                  "Hunt Europe" shall have the meaning assigned to such term in
         the heading hereof.

                  "Hunt Europe Obligations" means, without duplication, all of
         the obligations of Hunt Europe to the Lenders (including the Issuing
         Lender) and the Agent, whenever arising, under the Credit Agreement or
         any of the other Credit Documents.

                  "Hunt Holdings" means Hunt Holdings, Inc., a Delaware
         corporation and a Wholly Owned Subsidiary of Hunt.

                  "Hunt Obligations" means, without duplication, all (i) of the
         obligations of Hunt to the Lenders (including the Issuing Lender) and
         the Agent, whenever arising, under the Credit Agreement or any of the
         other Credit Documents and (ii) all liabilities and obligations,
         whenever arising, owing from Hunt to any Lender or any affiliate of a
         Lender arising under interest rate protection agreements, foreign
         currency exchange agreements, commodity purchase or option agreements
         or other interest or exchange rate or commodity price hedging
         agreements.

                  "Hunt X-Acto" means Hunt X-Acto, Inc., a Pennsylvania
         corporation and a Wholly Owned Subsidiary of Hunt.

                  "Indebtedness" of any Person means (i) all obligations of such
         Person for borrowed money, (ii) all obligations of such Person
         evidenced by bonds, debentures, notes or similar instruments, or upon
         which interest payments are customarily made, (iii) all obligations of
         such Person under conditional sale or other title retention agreements
         relating to Property purchased by such Person (other than customary
         reservations or retentions of title under agreements with suppliers
         entered into in the ordinary course of business), (iv) all obligations
         of such Person issued or assumed as the deferred purchase price of
         Property or services purchased by such Person (other than trade debt
         incurred in the ordinary course of business and due within twelve (12)
         months of the incurrence thereof) which would appear as liabilities on
         a balance sheet of such Person, (v) all obligations of such Person
         under take-or-pay or similar arrangements or under commodities
         agreements, (vi) all Indebtedness of others secured by (or for which
         the holder of such Indebtedness has an existing right, contingent or
         otherwise, to be secured by) any Lien on, or payable out of the
         proceeds of production from, Property owned or acquired by such Person,
         whether or not the obligations secured thereby have been assumed (or,
         if less, the aggregate net book value of all Property securing such
         Indebtedness of others), (vii) all Guaranty Obligations of such Person,
         (viii) the principal portion of all obligations of such Person under
         Capital Leases, (ix) all obligations of such Person in respect of
         interest rate protection agreements, foreign currency exchange
         agreements, commodity purchase or option agreements or other interest
         or exchange rate or commodity price hedging agreements, (x) the maximum
         amount of all letters of credit issued or bankers' acceptances

                                       15
<PAGE>

         facilities created for the account of such Person and, without
         duplication, all drafts drawn thereunder (to the extent unreimbursed),
         (xi) with respect to Hunt, the outstanding Attributed Principal Amount
         under any Permitted Receivables Financing and (xii) all preferred stock
         issued by such Person and required by the terms thereof to be redeemed,
         or for which mandatory sinking fund payments are due, by a fixed date.
         The Indebtedness of any Person shall include the Indebtedness of any
         partnership or joint venture in which such Person is a general partner
         or a joint venturer.

                  "Interbank Offered Rate" means, for the Interest Period for
         each Eurodollar Loan comprising part of the same borrowing (including
         conversions, extensions and renewals), a per annum interest rate equal
         to (i) with respect to any Revolving Loan that is a Eurodollar Loan,
         for the Interest Period applicable thereto, the per annum rate of
         interest determined by the Agent on the basis of the offered rates for
         deposits in Dollars (for a period of time corresponding to such
         Interest Period and commencing on the first day of such Interest
         Period) which appear on Page 3750 of the Dow Jones Market Service (or
         any successor or equivalent page) as of 11:00 a.m. (London time) two
         Business Days before the first day of such Interest Period (provided
         that if at least two such offered rates appear on Page 3750 of the Dow
         Jones Market Service (or any successor or equivalent page), the rate in
         respect of such Interest Period will be the arithmetic mean of such
         offered rates), and (ii) with respect to any Foreign Currency Loan, for
         the Interest Period applicable thereto, the sum of (a) the per annum
         rate of interest determined by the Agent on the basis of the offered
         rates for deposits in the relevant Available Foreign Currency (for a
         period of time corresponding to such Interest Period and commencing on
         the first day of such Interest Period) which appear on Page 3750 of the
         Dow Jones Market Service (or any successor or equivalent page) as of
         11:00 a.m. (London time) two Business Days before the first day of such
         Interest Period (except in the case of Foreign Currency Loans
         denominated in Pounds Sterling which shall be the per annum rate of
         interest appearing on the first day of such Interest Period) (provided
         that if at least two such offered rates appear on Page 3750 of the Dow
         Jones Market Service (or any successor or equivalent page), the rate in
         respect of such Interest Period will be the arithmetic mean of such
         offered rates) plus (b) in the case of any Foreign Currency Loan
         denominated in Pounds Sterling, the applicable MLA Cost. If for any
         reason the foregoing rates are unavailable from the Dow Jones Market
         Service, then the Interbank Offered Rate shall be a market rate for the
         applicable Loan for the applicable Interest Period as determined by the
         Agent plus, in the case of any Foreign Currency Loan denominated in
         Pounds Sterling, the applicable MLA Cost.

                  "Interest Payment Date" means (i) as to any Base Rate Loan,
         the last day of each March, June, September and December, the date of
         repayment of principal of such Loan and the Termination Date and (ii)
         as to any Eurodollar Loan, the last day of each Interest Period for
         such Loan and on the Termination Date, and in addition where the
         applicable Interest Period is more than 3 months, then also on the date
         3 months from the beginning of the Interest Period, and each 3 months
         thereafter. If an Interest Payment Date falls on a date which is not a
         Business Day, such Interest Payment Date shall be deemed to be the next
         succeeding Business Day, except that in the case of Eurodollar Loans
         where the next succeeding Business Day falls in the next succeeding
         calendar month, then on the next preceding Business Day.

                                       16
<PAGE>

                  "Interest Period" means (i) as to Eurodollar Loans, a period
         of one, two, three or six month's duration, as the applicable Borrower
         may elect, commencing in each case, on the date of the borrowing
         (including conversions, extensions and renewals), (ii) as to
         Competitive Loans, a period commencing in each case on the date of the
         borrowing and ending on the date specified in the applicable
         Competitive Bid whereby the offer to make such Competitive Loan was
         extended (such ending date in any event to be not less than 7 nor more
         than 180 days from the date of the borrowing) and (iii) as to Swingline
         Loans, a period commencing in each case on the date of the borrowing
         and ending on the date agreed to by Hunt and the Swingline Lender in
         accordance with the provisions of Section 2.4(b)(i) (such ending date
         in any event to be not more than seven (7) Business Days from the date
         of borrowing); provided, however, (A) if any Interest Period would end
         on a day which is not a Business Day, such Interest Period shall be
         extended to the next succeeding Business Day (except that in the case
         of Eurodollar Loans where the next succeeding Business Day falls in the
         next succeeding calendar month, then on the next preceding Business
         Day), (B) no Interest Period shall extend beyond the Termination Date,
         and (C) in the case of Eurodollar Loans, where an Interest Period
         begins on a day for which there is no numerically corresponding day in
         the calendar month in which the Interest Period is to end, such
         Interest Period shall end on the last day of such calendar month.

                  "Interim Foreign Currency Rate" means, for any day, with
         respect to any Foreign Currency Loan or any unreimbursed drawing under
         a Foreign Letter of Credit, a rate per annum equal to the sum of (i)
         the average rate at which overnight deposits in the applicable
         Available Foreign Currency and approximately equal in principal amount
         to the applicable Foreign Currency Loan or unreimbursed drawing under a
         Foreign Letter of Credit are obtainable by the Agent (or, in the case
         of any Foreign Letter of Credit, the Issuing Lender) on such day in the
         interbank market, adjusted to reflect any direct or indirect costs of
         obtaining such deposits plus (ii) in the case of any Foreign Currency
         Loan denominated in Pounds Sterling, the applicable MLA Cost. The
         Interim Foreign Currency Rate shall be determined for each day by the
         Agent or Issuing Lender, as appropriate, and such determination shall
         be conclusive absent manifest error.

                  "Investment", in any Person, means any loan or advance to such
         Person, any purchase or other acquisition of any capital stock,
         warrants, rights, options, obligations or other securities of such
         Person, any capital contribution to such Person or any other investment
         in such Person, including, without limitation, any Guaranty Obligation
         incurred for the benefit of such Person.

                  "Irrevocable Conversion Rate" with respect to any Available
         EMU Currency, means the rate adopted and irrevocably fixed by the
         European Council (in accordance with Article 109l(4) of the Treaty on
         European Union) on December 31, 1998 as the official exchange rate at
         which National Currency Units of such Available EMU Currency shall be
         converted into euro, and euro shall be converted into National Currency
         Units of such Available EMU Currency.

                  "Issuing Lender" means Bank of America.

                                       17
<PAGE>

                  "Issuing Lender Fees" shall have the meaning assigned to such
         term in Section 3.5(b)(iii).

                  "Italian Lira" means the lawful currency of the Republic of
         Italy.

                  "Joinder Agreement" means a Joinder Agreement substantially in
         the form of Schedule 7.12, executed and delivered by an Additional
         Credit Party in accordance with the provisions of Section 7.12.

                  "Lenders" means each of the Persons identified as a "Lender"
         on the signature pages hereto, and each Person which may become a
         Lender by way of assignment in accordance with the terms of Section
         11.3(b), together with their successors and permitted assigns.

                  "Letter of Credit" means any Domestic Letter of Credit or any
         Foreign Letter of Credit.

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

                  "Loan" or "Loans" means the Revolving Loans (or a portion of
         any Revolving Loan bearing interest at the Base Rate or the Eurodollar
         Rate and referred to as a Base Rate Loan or a Eurodollar Loan), the
         Competitive Loans, the Swingline Loans (or any Swingline Loan bearing
         interest at the Base Rate or the Quoted Rate and referred to as a Base
         Rate Loan or a Quoted Rate Swingline Loan) and/or the Foreign Currency
         Loans (or any Foreign Currency Loan referred to as a Eurodollar Loan),
         individually or collectively, as appropriate.

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

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

                                       18
<PAGE>

                  "LOC Obligations" means, collectively, the Domestic LOC
         Obligations and the Foreign LOC Obligations.

                  "Material Adverse Effect" means a material adverse effect on
         (i) the condition (financial or otherwise), operations, business,
         assets, liabilities or prospects of Hunt and its Subsidiaries taken as
         a whole, (ii) the ability of any Credit Party to perform any material
         obligation under the Credit Documents or (iii) the material rights and
         remedies of the Lenders under the Credit Documents.

                  "Material Subsidiary" means (i) each of Hunt Holdings, Hunt
         X-Acto and HGA and (ii) any other direct or indirect Domestic
         Subsidiary of Hunt which at any time on or after the Closing Date has
         total assets (as determined in accordance with GAAP) equal to or
         greater than $1,000,000, provided that the aggregate total assets (as
         determined in accordance with GAAP) at any time of all Subsidiaries of
         Hunt excluded from this definition of "Material Subsidiary" shall not
         exceed 10% of Consolidated Total Assets as of the then most recent
         Calculation Date with respect to which the Agent shall have received
         the Required Financial Information.

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

                  "MLA Cost" means, with respect to any Foreign Currency Loan
         denominated in Pounds Sterling made by any Lender, an addition to the
         interest rate on such Loan to compensate such Lender for the cost
         imputed to such Lender resulting from the imposition from time to time
         under or pursuant to the Bank of England Act 1998 (the "Act") and/or by
         the Bank of England and/or the Financial Services Authority ("FSA") (or
         other United Kingdom governmental authorities or agencies) of a
         requirement to place non-interest bearing cash ratio deposits or
         special deposits (whether interest bearing or not) with the Bank of
         England and/or to pay fees to the FSA calculated by reference to
         liabilities used to fund the Loans, expressed as a rate per annum and
         determined in accordance with Schedule 1.1B.

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

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

                  "Multiple Employer Plan" means a Plan of which Hunt, any
         Subsidiary of Hunt or any ERISA Affiliate and at least one employer
         other than Hunt, any Subsidiary of Hunt or any ERISA Affiliate are
         contributing sponsors.

                                       19

<PAGE>

                  "National Currency Unit" means a fraction or multiple of one
         euro expressed in units of an Available EMU Currency. Foreign Currency
         Loans requested to be denominated in National Currency Units shall be
         available only in accordance with Section 2.5(e).

                  "Net Proceeds" means the gross proceeds received by Hunt or
         any of its Subsidiaries from time to time in connection with any Asset
         Sale or Equity Transaction, net of (i) the out-of-pocket costs and
         expenses incurred by such Person in connection with and attributable to
         such Asset Sale or Equity Transaction, as applicable, and (ii) in the
         case of any Asset Sale, the amount used to repay any Indebtedness that
         both (a) was incurred to finance the acquisition or construction by
         Hunt or any of its Subsidiaries of the related asset (or incurred as a
         refinancing of any such acquisition or construction Indebtedness) and
         (b) is secured by a Lien on such related asset.

                  "Non-Excluded Taxes" means such term as is defined in Section
         3.10.

                  "Notice of Borrowing" means a written notice of borrowing in
         substantially the form of Schedule 1.1C, as required by Section
         2.1(b)(i) or Section 2.5(b)(i).

                  "Notice of Extension/Conversion" means the written notice of
         extension or conversion in substantially the form of Schedule 1.1D, as
         required by Section 3.2.

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

                  "Participating Member State" means each country so described
         in any EMU Legislation.

                  "Participation Interest" means, the extension of credit by a
         Lender by way of a purchase of a participation in any Letters of Credit
         or LOC Obligations as provided in Section 2.2(c) or Section 2.6(c), in
         Swingline Loans as provided in Section 2.4(b)(iii) or in any Loans as
         provided in Section 3.13.

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

                  "Permitted Investments" means Investments which are either (i)
         cash and Cash Equivalents; (ii) accounts receivable created, acquired
         or made by Hunt or any of its Subsidiaries in the ordinary course of
         business and payable or dischargeable in accordance with customary
         trade terms; (iii) Investments consisting of stock, obligations,
         securities or other property received by Hunt or any of its
         Subsidiaries in settlement of accounts receivable (created in the
         ordinary course of business) from bankrupt obligors; (iv) Investments
         existing as of the Closing Date and set forth in Schedule 1.1E; (v)
         Investments in Hunt Europe, Hunt BV and any Subsidiary of Hunt which is
         a Guarantor; (vi) Investments in any Subsidiary of Hunt which is not a
         Guarantor, provided that the aggregate outstanding principal amount of
         all such Investments plus all Investments made pursuant to subsection
         (xv) of this definition shall not exceed, as of the date made, 10% of

                                       20
<PAGE>

         Consolidated Net Worth as of the then most recent Calculation Date with
         respect to which the Agent shall have received the Required Financial
         Information; (vii) Guaranty Obligations permitted by Section 8.1;
         (viii) acquisitions permitted by Section 6.15 and Section 8.4(c); (ix)
         transactions permitted by Section 8.8; (x) loans to directors,
         officers, employees, agents, customers or suppliers that do not exceed
         an aggregate principal amount of $1,000,000 at any one time
         outstanding; (xi) Investments received as consideration in connection
         with or arising by virtue of any merger, consolidation, sale or other
         transfer of assets permitted under Section 8.4; (xii) Investments by
         Hunt in a Subsidiary or Affiliate in connection with a Permitted
         Receivables Financing; (xiii) intercompany Indebtedness of HGA, Hunt
         Europe and Hunt BV to Hunt incurred in the ordinary course of business
         and consistent with the past practices of such Persons or for cash
         management purposes and, in the case of Hunt Europe and Hunt BV, not
         exceeding $10,000,000 at any time outstanding; (xiv) in the case of any
         Foreign Subsidiary of Hunt, Investments which may be denominated in a
         currency other than Dollars, having similar liquidity, duration and
         credit quality of issuer as Investments of the types described in the
         definition of "Cash Equivalents" set forth in this Section 1.1; (xv)
         Investments in joint ventures and partnerships, provided that the
         aggregate outstanding principal amount of all such Investments plus all
         Investments made pursuant to subsection (vi) of this definition shall
         not exceed, as of the date made, 10% of Consolidated Net Worth as of
         the then most recent Calculation Date with respect to which the Agent
         shall have received the Required Financial Information; (xvi)
         Investments made pursuant to and in accordance with the Hunt
         Corporation Supplemental Executive Benefits Plan, as in effect on the
         Closing Date and (xvii) other Investments of types not otherwise
         described under subsections (i) - (xvi) of this definition, provided
         that all such Investments made pursuant to this subsection (xvii) shall
         not exceed an aggregate principal amount of $2,000,000 at any one time
         outstanding.

                  "Permitted Liens" means:

                           (i)  Liens in favor of the Agent on behalf of the
                  Lenders;

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

                           (iii) statutory Liens of landlords and Liens of
                  carriers, warehousemen, mechanics, materialmen and suppliers
                  and other liens imposed by law or pursuant to customary
                  reservations or retentions of title arising in the ordinary
                  course of business, provided that such Liens secure only
                  amounts not yet due and payable or, if due and payable, are
                  being contested in good faith by appropriate proceedings for
                  which adequate reserves determined in accordance with GAAP
                  have been established (and as to which the Property subject to
                  any such Lien is not yet subject to foreclosure, sale or loss
                  on account thereof);

                                       21
<PAGE>

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

                           (v) Liens in connection with attachments or judgments
                  (including judgment or appeal bonds) provided that the
                  judgments secured shall, within 60 days after the entry
                  thereof, have been discharged or execution thereof stayed
                  pending appeal, or shall have been discharged within 30 days
                  after the expiration of any such stay;

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

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

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

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

                           (x) Liens created or deemed to exist in connection
                  with a Permitted Receivables Financing (including any related
                  filings of any financing statements), but only to the extent
                  that any such Lien relates to the applicable receivables and
                  related property actually sold, contributed or otherwise
                  conveyed pursuant to such transaction;

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

                           (xii) Liens existing as of the Closing Date and set
                  forth on Schedule 1.1F; provided that (a) no such Lien shall
                  at any time be extended to or cover any property of any Credit
                  Party other than the property subject thereto on the Closing
                  Date and (b) the principal amount of the Indebtedness secured
                  by such Liens shall not be increased; and

                                       22
<PAGE>

                           (xiii) other Liens; provided that the aggregate
                  outstanding principal amount of all Indebtedness secured by
                  such Liens plus the aggregate outstanding principal amount of
                  all Indebtedness of all Subsidiaries of Hunt plus the
                  aggregate outstanding obligations incurred in transactions
                  permitted by Section 8.12 shall not, at any time, exceed 20%
                  of Consolidated Net Worth as of the then most recent
                  Calculation Date with respect to which the Agent shall have
                  received the Required Financial Information.

                  "Permitted Receivables Financing" means any transaction
         involving one or more sales, contributions or other conveyances by Hunt
         of any accounts receivable to a Subsidiary or Affiliate of Hunt (with
         respect to any such transaction, the "Receivables Financing SPC"),
         which Receivables Financing SPC then (x) sells (as determined in
         accordance with GAAP) any such receivables (or an interest therein) to
         any Person that is not a Subsidiary or Affiliate of Hunt (with respect
         to any such transaction, the "Receivables Financier"), (y) borrows from
         such Receivables Financier and secures such borrowings by a pledge of
         such receivables or (z) otherwise finances its acquisition of such
         receivables and, in connection therewith, conveys an interest in such
         receivables to the Receivables Financier, provided that (i) the
         aggregate Attributed Principal Amount for all such receivables
         financings shall not at any time exceed $35,000,000, (ii) such
         receivables financing shall not involve any recourse to Hunt or any of
         its Subsidiaries for any reason other than (A) repurchases of
         non-eligible receivables or (B) indemnifications for losses other than
         credit losses related to the receivables sold in such financing, (iii)
         such receivables financing shall not include any Guaranty Obligations
         of Hunt or any of its Subsidiaries, (iv) the Agent shall be reasonably
         satisfied with the structure of and documentation for any such
         transaction and that the terms of such transaction, including the
         discount at which receivables are sold and any termination events,
         shall be (in the good faith understanding of the Agent) consistent with
         those prevailing in the market for similar transactions involving a
         receivables originator/servicer of similar credit quality and a
         receivables pool of similar characteristics and (v) the documentation
         for such transaction shall not be amended or modified without the prior
         written approval of the Agent.

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

                  "Plan" means any employee benefit plan (as defined in Section
         3(3) of ERISA) which is covered by ERISA and with respect to which
         Hunt, any Subsidiary of Hunt or any ERISA Affiliate is (or, if such
         plan were terminated at such time, would under Section 4069 of ERISA be
         deemed to be) an "employer" within the meaning of Section 3(5) of
         ERISA.

                  "Pounds Sterling" means the lawful currency of the United
         Kingdom.

                  "Prime Rate" means the rate of interest per annum publicly
         announced from time to time by Bank of America as its prime rate in
         effect at its principal office in Charlotte, North Carolina, with each
         change in the Prime Rate being effective on the date such change is

                                       23
<PAGE>

         publicly announced as effective (it being understood and agreed that
         the Prime Rate is a reference rate used by Bank of America in
         determining interest rates on certain loans and is not intended to be
         the lowest rate of interest charged on any extension of credit by Bank
         of America to any debtor).

                  "Pro Forma Basis" means, with respect to any transaction, that
         such transaction shall be deemed to have occurred as of the first day
         of the four fiscal-quarter period ending as of the most recent
         Calculation Date preceding the date of such transaction with respect to
         which the Agent has received the Required Financial Information. As
         used herein, "transaction" means (i) any incurrence, assumption or
         retirement of Indebtedness as referred to in Section 8.1(i)(i), (ii)
         any sale or other disposition of assets as referred to in Section
         8.3(b)(iv) or (iii) any acquisition of capital stock or securities or
         any purchase, lease or other acquisition of Property as referred to in
         Section 8.4(c). With respect to any transaction of the type described
         in clause (i) above regarding Indebtedness which has a floating or
         formula rate, the implied rate of interest for such Indebtedness for
         the applicable period for purposes of this definition shall be
         determined by utilizing the rate which is or would be in effect with
         respect to such Indebtedness as at the relevant date of determination.

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

                  "Quoted Rate" means, with respect to any Quoted Rate Swingline
         Loan, the fixed percentage rate per annum offered by the Swingline
         Lender and accepted by Hunt with respect to such Swingline Loan as
         provided in accordance with the provisions of Section 2.4.

                  "Quoted Rate Swingline Loan" means a Swingline Loan bearing
         interest at a Quoted Rate.

                  "Receivables Financier" shall have the meaning assigned to
         such term in the definition of "Permitted Receivables Financing" set
         forth in this Section 1.1.

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

                  "Reimbursement Date" shall have the meaning assigned to such
         term in Section 2.6(d).

                  "Reportable Event" means any of the events set forth in
         Section 4043(c) of ERISA, other than those events as to which the
         post-event notice requirement is waived under subsections .21 through
         .35 or .62 through .67 of PBGC Reg. ss. 4043.

                  "Required Financial Information" means, with respect to the
         applicable Calculation Date, (i) the financial statements of Hunt
         required to be delivered pursuant to Section 7.1(a) or (b) for the
         fiscal period or quarter ending as of such Calculation Date, and (ii)

                                       24
<PAGE>

         the certificate of the chief financial officer, controller or treasurer
         of Hunt required by Section 7.1(c) to be delivered with the financial
         statements described in clause (i) above.

                  "Required Lenders" means, at any time, Lenders which are then
         in compliance with their obligations under the Credit Agreement (as
         determined by the Agent) and holding in the aggregate more than 50% of
         (i) the Commitments to make Revolving Loans or (ii) if the Commitments
         have been terminated, the outstanding Loans and Participation
         Interests.

                  "Requirement of Law" means, as to any Person, the certificate
         of incorporation and by-laws or other organizational or governing
         documents of such Person, and any law, treaty, rule or regulation or
         determination of an arbitrator or a court or other Governmental
         Authority, in each case applicable to or binding upon such Person or
         any of its material property is subject.

                  "Restricted Payment" means (i) any dividend or other
         distribution, direct or indirect, on account of any shares of any class
         of stock of Hunt or any of its Subsidiaries, now or after the Closing
         Date outstanding, (ii) any redemption, retirement, sinking fund or
         similar payment, purchase or other acquisition for value, direct or
         indirect, of any shares of any class of stock of Hunt or any of its
         Subsidiaries, now or after the Closing Date outstanding and (iii) any
         payment made to retire, or to obtain the surrender of, any outstanding
         warrants, options or other rights to acquire shares of any class of
         stock of Hunt or any of its Subsidiaries, now or after the Closing Date
         outstanding.

                  "Revolving Commitment" means, with respect to each Lender, the
         commitment of such Lender, in an aggregate principal amount at any time
         outstanding of up to such Lender's Revolving Commitment Percentage of
         the Revolving Committed Amount, (A) to make Revolving Loans in
         accordance with the provisions of Section 2.1(a), (B) to purchase
         participation interests in Domestic Letters of Credit in accordance
         with the provisions of Section 2.2(c), (C) to purchase participation
         interests in the Swingline Loans in accordance with the provisions of
         Section 2.4(c), (D) to make Foreign Currency Loans in accordance with
         the provisions of Section 2.5(a) and (E) to purchase participation
         interests in Foreign Letters of Credit in accordance with the
         provisions of Section 2.6(c).

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

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

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

                                       25
<PAGE>

                  "Senior Note" means any of the 7.86% Senior Notes due August
         1, 2011, in an aggregate original principal amount of $50,000,000,
         issued by Hunt in favor of the Senior Noteholders pursuant to the
         Senior Note Agreement, as the same may be amended, modified,
         supplemented or replaced from time to time.

                  "Senior Note Agreement" means that certain Note Purchase
         Agreement, dated as of August 1, 1996, by and between Hunt and the
         Senior Noteholders, as the same may be amended, modified, supplemented
         or replaced from time to time.

                  "Senior Noteholder" means any of the holders from time to time
         of the Senior Notes.

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

                  "Solvent" or "Solvency" means, with respect to any Person as
         of a particular date, that on such date (i) such Person is able to
         realize upon its assets and pay its debts and other liabilities,
         contingent obligations and other commitments as they mature in the
         normal course of business, (ii) such Person does not intend to, and
         does not believe that it will, incur debts or liabilities beyond such
         Person's ability to pay as such debts and liabilities mature in their
         ordinary course, (iii) such Person is not engaged in a business or a
         transaction, and is not about to engage in a business or a transaction,
         for which such Person's Property would constitute unreasonably small
         capital after giving due consideration to the prevailing practice in
         the industry in which such Person is engaged or is to engage, (iv) the
         fair value of the Property of such Person is greater than the total
         amount of liabilities, including, without limitation, contingent
         liabilities, of such Person and (v) the present fair saleable value of
         the assets of such Person is not less than the amount that will be
         required to pay the probable liability of such Person on its debts as
         they become absolute and matured. In computing the amount of contingent
         liabilities at any time, it is intended that such liabilities will be
         computed at the amount which, in light of all the facts and
         circumstances existing at such time, represents the amount that can
         reasonably be expected to become an actual or matured liability.

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

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

                                       26
<PAGE>

                  "Swingline Commitment" means the commitment of the Swingline
         Lender to make Swingline Loans in an aggregate principal amount at any
         time outstanding of up to the Swingline Committed Amount.

                  "Swingline Committed Amount" shall have the meaning assigned
         to such term in Section 2.4(a).

                  "Swingline Lender" means Bank of America.

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

                  "Termination Date" means September 12, 2003.

                  "Termination Event" means (i) with respect to any Plan, the
         occurrence of a Reportable Event or the substantial cessation of
         operations (within the meaning of Section 4062(e) of ERISA); (ii) the
         withdrawal by Hunt, any Subsidiary of Hunt or any ERISA Affiliate from
         a Multiple Employer Plan during a plan year in which it was a
         substantial employer (as such term is defined in Section 4001(a)(2) of
         ERISA), or the termination of a Multiple Employer Plan; (iii) the
         distribution of a notice of intent to terminate or the actual
         termination of a Plan pursuant to Section 4041(a)(2) or 4041A of ERISA;
         (iv) the institution of proceedings to terminate or the actual
         termination of a Plan by the PBGC under Section 4042 of ERISA; (v) any
         event or condition which might constitute grounds under Section 4042 of
         ERISA for the termination of, or the appointment of a trustee to
         administer, any Plan; or (vi) the complete or partial withdrawal of
         Hunt, any Subsidiary of Hunt or any ERISA Affiliate from a
         Multiemployer Plan.

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

                  "Transition Period Cutoff Date" means December 31, 2001, or
         such other date as may be established by EMU Legislation.

                  "Treaty on European Union" means the Treaty of Rome of March
         25, 1957, as amended by the Single European Act 1986 and the Maastricht
         Treaty (which was signed at Maastricht on February 1, 1992 and came
         into force on November 1, 1993), as amended from time to time.

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

                  "Unused Fee Calculation Period" shall have the meaning
         assigned to such term in Section 3.5(a).

                  "Unused Revolving Committed Amount" means, for any period, the
         amount by which (a) the then applicable Revolving Committed Amount
         exceeds (b) the daily average sum for such period of (i) the
         outstanding aggregate principal amount of all Loans plus (ii) the
         outstanding aggregate principal amount of all LOC Obligations.

                                       27
<PAGE>

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

                  "Wholly Owned Subsidiary" of any Person means any Subsidiary
         100% of whose Voting Stock or other equity interests is at the time
         owned by such Person directly or indirectly through other Wholly Owned
         Subsidiaries.

         1.2   Computation of Time Periods.

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

         1.3   Accounting Terms.

         Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
under the Credit Agreement shall be prepared, in accordance with GAAP applied on
a consistent basis. All calculations made for the purposes of determining
compliance with the Credit Agreement shall (except as otherwise expressly
provided in the Credit Agreement) be made by application of GAAP applied on a
basis consistent with the most recent annual or quarterly financial statements
delivered pursuant to Section 7.1 (or, prior to the delivery of the first
financial statements pursuant to Section 7.1, consistent with the financial
statements as at November 28, 1999); provided, however, if (a) Hunt shall object
to determining such compliance on such basis at the time of delivery of such
financial statements due to any change in or application of GAAP or the rules
promulgated with respect thereto or (b) the Agent or the Required Lenders shall
so object in writing within 30 days after delivery of such financial statements,
then such calculations shall be made on a basis consistent with the most recent
financial statements delivered by Hunt to the Lenders as to which no such
objection shall have been made.

                                    SECTION 2

                                CREDIT FACILITIES

         2.1   Revolving Loans.

               (a) Revolving Commitment. Subject to the terms and conditions
         of the Credit Agreement and in reliance upon the representations and
         warranties set forth in the Credit Agreement, each Lender severally
         agrees to make available to Hunt such Lender's Commitment Percentage of
         revolving credit loans in Dollars ("Revolving Loans") from time to time
         from the Closing Date until the Termination Date, or such earlier date

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<PAGE>

         as the Revolving Commitments shall have been terminated as provided in
         the Credit Agreement for the purposes hereinafter set forth; provided
         further, however, that the sum of the aggregate principal amount of
         outstanding Revolving Loans shall not exceed FIFTY MILLION DOLLARS
         ($50,000,000) (as such aggregate maximum amount may be reduced from
         time to time as provided in Section 3.4, the "Revolving Committed
         Amount"); provided, further, (i) with regard to each Lender
         individually, such Lender's outstanding Revolving Loans shall not
         exceed such Lender's Commitment Percentage of the Revolving Committed
         Amount, and (ii) with regard to the Lenders collectively, the aggregate
         principal amount of outstanding Revolving Loans plus Domestic LOC
         Obligations outstanding plus the aggregate principal amount of
         outstanding Competitive Loans plus the aggregate principal amount of
         outstanding Swingline Loans plus the Dollar Amount (as determined as of
         the most recent Determination Date) of the aggregate principal amount
         of outstanding Foreign Currency Loans plus the Dollar Amount (as
         determined as of the most recent Determination Date) of Foreign LOC
         Obligations outstanding shall not exceed the Revolving Committed
         Amount. Revolving Loans may consist of Base Rate Loans or Eurodollar
         Loans, or a combination thereof, as Hunt may request, and may be repaid
         and reborrowed in accordance with the provisions of the Credit
         Agreement; provided, however, that no more than 12 separate Eurodollar
         Loans shall be outstanding at any time. For purposes of the Credit
         Agreement, Eurodollar Loans with different Interest Periods and/or in
         different currencies shall be considered as separate Eurodollar Loans,
         even if they begin on the same date, although borrowings, extensions
         and conversions may, in accordance with the provisions of the Credit
         Agreement, be combined at the end of existing Interest Periods to
         constitute a new Eurodollar Loan with a single Interest Period and in
         the same currency.

                  (b)  Revolving Loan Borrowings.

                           (i) Notice of Borrowing. Hunt shall request a
                  Revolving Loan borrowing by written notice (or telephone
                  notice promptly confirmed in writing) to the Agent not later
                  than 12:00 Noon (Charlotte, North Carolina time) on the
                  Business Day of the requested borrowing in the case of Base
                  Rate Loans, and on the third Business Day prior to the date of
                  the requested borrowing in the case of Eurodollar Loans. Each
                  such request for borrowing shall be irrevocable and shall
                  specify (A) that a Revolving Loan is requested, (B) the date
                  of the requested borrowing (which shall be a Business Day),
                  (C) the aggregate principal amount to be borrowed, and (D)
                  whether the borrowing shall be comprised of Base Rate Loans,
                  Eurodollar Loans or a combination thereof, and if Eurodollar
                  Loans are requested, the Interest Period(s) therefor. If Hunt
                  shall fail to specify in any such Notice of Borrowing (I) an
                  applicable Interest Period in the case of a Eurodollar Loan,
                  then such notice shall be deemed to be a request for an
                  Interest Period of one month, or (II) the type of Revolving
                  Loan requested, then such notice shall be deemed to be a
                  request for a Base Rate Loan. The Agent shall give notice to
                  each Lender promptly upon receipt of each Notice of Borrowing
                  pursuant to this Section 2.1(b)(i), the contents thereof and
                  each such Lender's share of any borrowing to be made pursuant
                  thereto.

                           (ii) Minimum Amounts. Each Eurodollar Loan or Base
                  Rate Loan that is a Revolving Loan shall be in a minimum
                  aggregate amount of $2,000,000 and integral multiples of
                  $1,000,000 in excess thereof (or the remaining amount of the
                  Revolving Committed Amount, if less).

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<PAGE>

                           (iii) Advances. Each Lender will make its Commitment
                  Percentage of each Revolving Loan borrowing available to the
                  Agent for the account of Hunt as specified in Section 3.14(b),
                  or in such other manner as the Agent may specify in writing,
                  by 1:00 P.M. (Charlotte, North Carolina time) on the date
                  specified in the applicable Notice of Borrowing in Dollars and
                  in funds immediately available to the Agent. Such borrowing
                  will then be made available to Hunt by the Agent by crediting
                  the account of Hunt on the books of such office with the
                  aggregate of the amounts made available to the Agent by the
                  Lenders and in like funds as received by the Agent.

                  (c) Repayment. Hunt hereby promises to pay the principal
         amount of all Revolving Loans in full on the Termination Date, unless
         accelerated sooner pursuant to Section 9.2.

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

                           (i) Base Rate Loans. During such periods as Revolving
                  Loans shall be comprised of Base Rate Loans, the Base Rate.

                           (ii) Eurodollar Loans. During such periods as
                  Revolving Loans shall be comprised of Eurodollar Loans, the
                  Eurodollar Rate plus the Applicable Margin.

         Hunt hereby promises to pay interest on Revolving Loans in arrears on
         each Interest Payment Date (or at such other times as may be specified
         herein).

         2.2   Domestic Letter of Credit Subfacility.

                  (a) Issuance. Subject to the terms and conditions of the
         Credit Agreement and of the LOC Documents, if any, and any other terms
         and conditions which the Issuing Lender may reasonably require, the
         Lenders will participate in the issuance by the Issuing Lender, from
         time to time and in Dollars, of such Domestic Letters of Credit from
         the Closing Date until the Termination Date as Hunt may request, in a
         form acceptable to the Issuing Lender; provided, however, that (i) the
         Domestic LOC Obligations outstanding shall not at any time exceed TEN
         MILLION DOLLARS ($10,000,000) (the "Domestic LOC Committed Amount") and
         (ii) the sum of the aggregate principal amount of outstanding Revolving
         Loans plus Domestic LOC Obligations outstanding plus the aggregate
         principal amount of outstanding Competitive Loans plus the aggregate
         principal amount of outstanding Swingline Loans plus the Dollar Amount
         (as determined as of the most recent Determination Date) of the
         aggregate principal amount of outstanding Foreign Currency Loans plus
         the Dollar Amount (as determined as of the most recent Determination

                                       30

<PAGE>

         Date) of Foreign LOC Obligations outstanding shall not at any time
         exceed the aggregate Revolving Committed Amount. No Domestic Letter of
         Credit shall (x) have an original expiry date more than one year from
         the date of issuance or (y) as originally issued or as extended, have
         an expiry date extending beyond the Termination Date. Each Domestic
         Letter of Credit shall comply with the related LOC Documents. The
         issuance and expiry date of each Domestic Letter of Credit shall be a
         Business Day.

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

                  (c) Participation. Each Lender, upon issuance of a Domestic
         Letter of Credit (or, in the case of each Existing Letter of Credit, on
         the Closing Date), shall be deemed to have purchased without recourse a
         risk participation from the Issuing Lender in such Domestic Letter of
         Credit and the obligations arising thereunder, in each case in an
         amount equal to its pro rata share of the obligations under such
         Domestic Letter of Credit (based on the respective Commitment
         Percentages of the Lenders) and shall absolutely, unconditionally and
         irrevocably assume, as primary obligor and not as surety, and be
         obligated to pay in Dollars to the Issuing Lender therefor and
         discharge when due, its pro rata share of the obligations arising under
         such Domestic Letter of Credit. Without limiting the scope and nature
         of each Lender's participation in any Domestic Letter of Credit, to the
         extent that the Issuing Lender has not been reimbursed as required
         under the Credit Agreement or under any such Domestic Letter of Credit,
         each such Lender shall pay to the Issuing Lender in Dollars its pro
         rata share of such unreimbursed drawing in same day funds on the day of
         notification by the Issuing Lender of an unreimbursed drawing pursuant
         to the provisions of subsection (d) below. The obligation of each
         Lender to so reimburse the Issuing Lender shall be absolute and
         unconditional and shall not be affected by the occurrence of a Default,
         an Event of Default or any other occurrence or event. Any such
         reimbursement shall not relieve or otherwise impair the obligation of
         Hunt to reimburse the Issuing Lender under any Domestic Letter of
         Credit, together with interest as hereinafter provided. As of the
         Closing Date, each Existing Letter of Credit shall be deemed for all
         purposes of the Credit Agreement and the other Credit Documents to be a
         Domestic Letter of Credit.

                  (d) Reimbursement. In the event of any drawing under any
         Domestic Letter of Credit, the Issuing Lender will promptly notify
         Hunt. Unless Hunt shall immediately notify the Issuing Lender that Hunt
         intends to otherwise reimburse the Issuing Lender for such drawing,
         Hunt shall be deemed to have requested that the Lenders make a
         Revolving Loan in the amount of the drawing as provided in subsection

                                       31
<PAGE>

         (e) below on the related Domestic Letter of Credit, the proceeds of
         which will be used to satisfy the related reimbursement obligations.
         Hunt promises to reimburse the Issuing Lender (either with the proceeds
         of a Revolving Loan obtained under the Credit Agreement or otherwise)
         on the day of drawing under any Domestic Letter of Credit in an amount
         equal to such drawing in same day funds. If Hunt shall fail to
         reimburse the Issuing Lender as provided hereinabove, the unreimbursed
         amount of such drawing shall bear interest at a per annum rate equal to
         the Base Rate plus two percent (2%). Hunt's reimbursement obligations
         under the Credit Agreement shall be absolute and unconditional under
         all circumstances irrespective of any rights of setoff, counterclaim or
         defense to payment Hunt may claim or have against the Issuing Lender,
         the Agent, the Lenders, the beneficiary of the Domestic Letter of
         Credit drawn upon or any other Person, including without limitation any
         defense based on any failure of Hunt or any other Credit Party to
         receive consideration or the legality, validity, regularity or
         unenforceability of the Domestic Letter of Credit. The Issuing Lender
         will promptly notify the other Lenders of the amount of any
         unreimbursed drawing and each Lender shall promptly pay to the Agent
         for the account of the Issuing Lender in Dollars and in immediately
         available funds, the amount of such Lender's pro rata share of such
         unreimbursed drawing. Such payment shall be made on the day such notice
         is received by such Lender from the Issuing Lender if such notice is
         received at or before 2:00 P.M. (Charlotte, North Carolina time)
         otherwise such payment shall be made at or before 12:00 Noon
         (Charlotte, North Carolina time) on the Business Day next succeeding
         the day such notice is received. If such Lender does not pay such
         amount to the Issuing Lender in full upon such request, such Lender
         shall, on demand, pay to the Agent for the account of the Issuing
         Lender interest on the unpaid amount during the period from the date of
         such drawing until such Lender pays such amount to the Issuing Lender
         in full at a rate per annum equal to, if paid within two (2) Business
         Days of the date of drawing, the Federal Funds Rate and thereafter at a
         rate equal to the Base Rate. Each Lender's obligation to make such
         payment to the Issuing Lender, and the right of the Issuing Lender to
         receive the same, shall be absolute and unconditional, shall not be
         affected by any circumstance whatsoever and without regard to the
         termination of the Credit Agreement or the Commitments, the existence
         of a Default or Event of Default or the acceleration of the obligations
         of Hunt under the Credit Documents and shall be made without any
         offset, abatement, withholding or reduction whatsoever. Simultaneously
         with the making of each such payment by a Lender to the Issuing Lender,
         such Lender shall, automatically and without any further action on the
         part of the Issuing Lender or such Lender, acquire a participation in
         an amount equal to such payment (excluding the portion of such payment
         constituting interest owing to the Issuing Lender) in the related
         unreimbursed drawn portion of the Domestic LOC Obligation and in the
         interest thereon and in the related LOC Documents, and shall have a
         claim against Hunt with respect thereto.

                  (e) Repayment with Revolving Loans. On any day on which Hunt
         shall have requested, or been deemed to have requested, a Revolving
         Loan advance to reimburse a drawing under a Domestic Letter of Credit,

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<PAGE>

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

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

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<PAGE>

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

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

                           (ii) As between Hunt and the Issuing Lender, Hunt
                  shall assume all risks of the acts, omissions or misuse of any
                  Domestic Letter of Credit by the beneficiary thereof. The
                  Issuing Lender shall not be responsible: (A) for the form,
                  validity, sufficiency, accuracy, genuineness or legal effect
                  of any document submitted by any party in connection with the
                  application for and issuance of any Domestic Letter of Credit,
                  even if it should in fact prove to be in any or all respects
                  invalid, insufficient, inaccurate, fraudulent or forged; (B)
                  for the validity or sufficiency of any instrument transferring
                  or assigning or purporting to transfer or assign any Domestic
                  Letter of Credit or the rights or benefits thereunder or
                  proceeds thereof, in whole or in part, that may prove to be
                  invalid or ineffective for any reason; (C) for errors,
                  omissions, interruptions or delays in transmission or delivery
                  of any messages, by mail, cable, telegraph, telex or
                  otherwise, whether or not they be in cipher; (D) for any loss
                  or delay in the transmission or otherwise of any document
                  required in order to make a drawing under a Domestic Letter of
                  Credit or of the proceeds thereof; and (E) for any
                  consequences arising from causes beyond the control of the
                  Issuing Lender, including, without limitation, any Government
                  Acts. None of the above shall affect, impair, or prevent the
                  vesting of the Issuing Lender's rights or powers under the
                  Credit Agreement.

                           (iii) In furtherance and extension and not in
                  limitation of the specific provisions hereinabove set forth,
                  any action taken or omitted by the Issuing Lender, under or in
                  connection with any Domestic Letter of Credit or the related
                  certificates, if taken or omitted in good faith, shall not put
                  such Issuing Lender under any resulting liability to Hunt or
                  any other Credit Party. It is the intention of the parties
                  that the Credit Agreement shall be construed and applied to

                                       34
<PAGE>

                  protect and indemnify the Issuing Lender against any and all
                  risks involved in the issuance of the Domestic Letters of
                  Credit, all of which risks are hereby assumed by Hunt (on
                  behalf of itself and each of the other Credit Parties),
                  including, without limitation, any and all Government Acts.
                  The Issuing Lender shall not, in any way, be liable for any
                  failure by the Issuing Lender or anyone else to pay any
                  drawing under any Domestic Letter of Credit as a result of any
                  Government Acts or any other cause beyond the control of the
                  Issuing Lender.

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

                           (v) Notwithstanding anything to the contrary
                  contained in this subsection (h), Hunt shall have no
                  obligation to indemnify the Issuing Lender in respect of any
                  liability incurred by the Issuing Lender (A) arising solely
                  out of the gross negligence or willful misconduct of the
                  Issuing Lender or (B) caused by the Issuing Lender's unlawful
                  failure to pay under any Domestic Letter of Credit.

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

                  (j) Conflict with LOC Documents. In the event of any conflict
         between the Credit Agreement and any LOC Document, the Credit Agreement
         shall control.

         2.3   Competitive Loan Subfacility.

                  (a) Competitive Loans. Subject to the terms and conditions and
         relying upon the representations and warranties set forth in the Credit
         Agreement, Hunt may, from time to time from the Closing Date until the
         Termination Date, request and each Lender may, in its sole discretion,
         agree to make available to Hunt Competitive Loans in Dollars; provided
         further, however, that (i) the aggregate principal amount of
         outstanding Competitive Loans shall not at any time exceed the lesser
         of (a) FIFTY MILLION DOLLARS ($50,000,000) or (b) the Revolving

                                       35
<PAGE>

         Committed Amount (the "Competitive Loan Maximum Amount"), and (ii) the
         sum of the aggregate principal amount of outstanding Revolving Loans
         plus Domestic LOC Obligations outstanding plus the aggregate principal
         amount of outstanding Competitive Loans plus the aggregate principal
         amount of outstanding Swingline Loans plus the Dollar Amount (as
         determined as of the most recent Determination Date) of the aggregate
         principal amount of outstanding Foreign Currency Loans plus the Dollar
         Amount (as determined as of the most recent Determination Date) of
         Foreign LOC Obligations outstanding shall not at any time exceed the
         Revolving Committed Amount. Each Competitive Loan shall be not less
         than $5,000,000 in the aggregate and integral multiples of $1,000,000
         in excess thereof (or the remaining portion of the Competitive Loan
         Maximum Amount, if less).

                  (b) Competitive Bid Requests. Hunt may solicit Competitive
         Bids by delivery of a Competitive Bid Request substantially in the form
         of Schedule 2.3(b)-1 to the Agent by 12:00 Noon (Charlotte, North
         Carolina time) on a Business Day not less than one (1) nor more than
         four (4) Business Days prior to the date of a requested Competitive
         Loan borrowing. A Competitive Bid Request shall specify (i) the date of
         the requested Competitive Loan borrowing (which shall be a Business
         Day), (ii) the amount of the requested Competitive Loan borrowing and
         (iii) the applicable Interest Periods requested and shall be
         accompanied by payment of the Competitive Bid Request Fee. The Agent
         shall, promptly following its receipt of a Competitive Bid Request
         under this subsection (b), notify the affected Lenders of its receipt
         and the contents thereof and invite the Lenders to submit Competitive
         Bids in response thereto. A form of such notice is provided in Schedule
         2.3(b)-2. No more than three (3) Competitive Bid Requests (e.g., Hunt
         may request Competitive Bids for no more than three (3) different
         Interest Periods at a time) shall be submitted at any one time and
         Competitive Bid Requests may be made no more frequently than once every
         five (5) Business Days.

                  (c) Competitive Bid Procedure. Each Lender may, in its sole
         discretion, make one or more Competitive Bids to Hunt in response to a
         Competitive Bid Request. Each Competitive Bid must be received by the
         Agent not later than 10:00 A.M. (Charlotte, North Carolina time) on the
         Business Day next succeeding the date of receipt by the Agent of the
         related Competitive Bid Request. A Lender may offer to make all or part
         of the requested Competitive Loan borrowing and may submit multiple
         Competitive Bids in response to a Competitive Bid Request. The
         Competitive Bid shall specify (i) the particular Competitive Bid
         Request as to which the Competitive Bid is submitted, (ii) the minimum
         (which shall be not less than $5,000,000 and integral multiples of
         $1,000,000 in excess thereof except as otherwise provided in Section
         2.3(a)) and maximum principal amounts of the requested Competitive Loan
         or Loans as to which the Lender is willing to make, and (iii) the
         applicable interest rate or rates and Interest Period or Periods
         therefor. A form of such Competitive Bid is provided in Schedule
         2.3(c). A Competitive Bid submitted by a Lender in accordance with the
         provisions hereof shall be irrevocable. The Agent shall promptly notify
         Hunt of all Competitive Bids made and the terms thereof.

                  (d) Submission of Competitive Bids by Agent. If the Agent, in
         its capacity as a Lender, elects to submit a Competitive Bid in
         response to any Competitive Bid Request, it shall submit such
         Competitive Bid directly to Hunt one-half of an hour earlier than the

                                       36
<PAGE>

         latest time at which the other Lenders are required to submit their
         Competitive Bids to the Agent in response to such Competitive Bid
         Request pursuant to subsection (c) above.

                  (e) Acceptance of Competitive Bids. Hunt may, in its sole and
         absolute discretion, subject only to the provisions of this subsection
         (e), accept or refuse any Competitive Bid offered to it. To accept a
         Competitive Bid, Hunt shall give written notification (or telephone
         notice promptly confirmed in writing) substantially in the form of
         Schedule 2.3(e) of its acceptance of any or all such Competitive Bids
         to the Agent by 11:00 A.M. (Charlotte, North Carolina time) on the date
         on which notice of the Competitive Bids is given to Hunt by the Agent;
         provided, however, (i) the failure by Hunt to give timely notice of its
         acceptance of a Competitive Bid shall be deemed to be a refusal
         thereof, (ii) Hunt may accept Competitive Bids only in ascending order
         of rates, (iii) the aggregate amount of Competitive Bids accepted by
         Hunt shall not exceed the principal amount specified in the Competitive
         Bid Request, (iv) Hunt may accept a portion of a Competitive Bid in the
         event, and to the extent, acceptance of the entire amount thereof would
         cause Hunt to exceed the principal amount specified in the Competitive
         Bid Request, subject however to the minimum amounts provided herein
         (and provided that where two or more Lenders submit such a Competitive
         Bid at the same Competitive Bid Rate, then pro rata between or among
         such Lenders) and (v) no bid shall be accepted for a Competitive Loan
         unless such Competitive Loan is in a minimum principal amount of
         $5,000,000 and integral multiples of $1,000,000 in excess thereof,
         except that where a portion of a Competitive Bid is accepted in
         accordance with the provisions of clause (iv) above, then in a minimum
         principal amount of $5,000,000 and integral multiples of $1,000,000 in
         excess thereof (but not in any event less than the minimum amount
         specified in the Competitive Bid), and in calculating the pro rata
         allocation of acceptances of portions of multiple bids at a particular
         Competitive Bid Rate pursuant to clause (iv) above, the amounts shall
         be rounded to integral multiples of $1,000,000 in a manner which shall
         be in the discretion of Hunt. A notice of acceptance of a Competitive
         Bid given by Hunt in accordance with the provisions hereof shall be
         irrevocable. The Agent shall, not later than 12:00 Noon (Charlotte,
         North Carolina time) on the date of receipt by the Agent of a
         notification from Hunt of its acceptance and/or refusal of Competitive
         Bids, notify each affected Lender of its receipt and the contents
         thereof. Upon its receipt from the Agent of notification of Hunt's
         acceptance of its Competitive Bid in accordance with the terms of this
         subsection (e), each successful bidding Lender will thereupon become
         bound, subject to the other applicable conditions hereof, to make the
         Competitive Loan in respect of which its bid has been accepted.

                  (f) Funding of Competitive Loans. Each Lender which is to make
         a Competitive Loan shall make its Competitive Loan borrowing available
         to the Agent for the account of Hunt at the office of the Agent
         specified in Section 3.14(b), or at such other office as the Agent may
         designate in writing, by 1:30 P.M. (Charlotte, North Carolina time) on
         the date specified in the Competitive Bid Request in Dollars and in
         funds immediately available to the Agent. Such borrowing will then be
         made available to Hunt by crediting the account of Hunt on the books of
         such office with the aggregate of the amount made available to the
         Agent by the applicable Competitive Loan Lenders and in like funds as
         received by the Agent.

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<PAGE>

                  (g) Maturity of Competitive Loans. Subject to the following
         sentence, Hunt hereby promises to repay in full the principal amount of
         each Competitive Loan on the last day of the Interest Period applicable
         thereto. Unless Hunt shall give notice to the Agent otherwise, Hunt
         shall be deemed to have requested a Revolving Loan borrowing in the
         amount of the maturing Competitive Loan, the proceeds of which will be
         used to repay such Competitive Loan.

                  (h) Interest on Competitive Loans. Subject to the provisions
         of Section 3.1, Competitive Loans shall bear interest in each case at
         the Competitive Bid Rate applicable thereto. Hunt hereby promises to
         pay interest on Competitive Loans in arrears on each Interest Payment
         Date (or at such other times as may be specified herein).

         2.4   Swingline Loan Subfacility.

                  (a) Swingline Commitment. Subject to the terms and conditions
         hereof and in reliance upon the representations and warranties set
         forth in the Credit Agreement, the Swingline Lender, in its individual
         capacity, agrees to make available to Hunt certain revolving credit
         loans in Dollars (each a "Swingline Loan" and, collectively, the
         "Swingline Loans") from time to time from the Closing Date until the
         Termination Date for the purposes hereinafter set forth; provided
         further, however, that (i) the aggregate principal amount of Swingline
         Loans outstanding at any time shall not exceed TWO MILLION DOLLARS
         ($2,000,000.00) (the "Swingline Committed Amount"), and (ii) the
         aggregate principal amount of outstanding Revolving Loans plus Domestic
         LOC Obligations outstanding plus the aggregate principal amount of
         outstanding Competitive Loans plus the aggregate principal amount of
         outstanding Swingline Loans plus the Dollar Amount (as determined as of
         the most recent Determination Date) of the aggregate principal amount
         of outstanding Foreign Currency Loans plus the Dollar Amount (as
         determined as of the most recent Determination Date) of Foreign LOC
         Obligations outstanding shall not exceed the Revolving Committed
         Amount. Swingline Loans shall be made as Base Rate Loans or Quoted Rate
         Swingline Loans as Hunt may request in accordance with the provisions
         of this Section 2.4, and may be repaid and reborrowed in accordance
         with the provisions hereof.

                  (b) Swingline Loan Advances.

                           (i) Notices; Disbursement. Whenever Hunt desires a
                  Swingline Loan advance it shall give written notice (or
                  telephone notice promptly confirmed in writing) to the
                  Swingline Lender not later than 12:00 Noon (Charlotte, North
                  Carolina time) on the Business Day of the requested Swingline
                  Loan advance. Each such notice shall be irrevocable and shall
                  specify (A) that a Swingline Loan advance is requested, (B)
                  the date of the requested Swingline Loan advance (which shall
                  be a Business Day) and (C) the principal amount of the
                  Swingline Loan advance requested. Each Swingline Loan shall be
                  made as a Base Rate Loan or a Quoted Rate Swingline Loan and
                  shall have such maturity date as the Swingline Lender and Hunt
                  shall agree upon receipt by the Swingline Lender of any such
                  notice from Hunt. The Swingline Lender shall initiate the

                                       38
<PAGE>
                  transfer of funds representing the Swingline Loan advance to
                  Hunt by 3:00 P.M. (Charlotte, North Carolina time) on the
                  Business Day of the requested borrowing.

                           (ii) Minimum Amounts. Each Swingline Loan advance
                  shall be in a minimum principal amount of $100,000 and in
                  integral multiples of $50,000 in excess thereof (or the
                  remaining amount of the Swingline Committed Amount, if less).

                           (iii) Repayment of Swingline Loans. Hunt hereby
                  promises to pay the principal amount of all Swingline Loans on
                  the earlier of (A) the maturity date agreed to by the
                  Swingline Lender and Hunt with respect to such Loan (which
                  maturity date shall not be a date more than seven (7) Business
                  Days from the date of advance thereof) or (B) the Termination
                  Date. The Swingline Lender may, at any time, in its sole
                  discretion, by written notice to Hunt and the Lenders, demand
                  repayment of its Swingline Loans by way of a Revolving Loan
                  advance, in which case Hunt shall be deemed to have requested
                  a Revolving Loan advance comprised solely of Base Rate Loans
                  in the amount of such Swingline Loans; provided, however, that
                  any such demand shall be deemed to have been given one
                  Business Day prior to the Termination Date and on the date of
                  the occurrence of any Event of Default described in Section
                  9.1 and upon acceleration of the indebtedness under the Credit
                  Documents and the exercise of remedies in accordance with the
                  provisions of Section 9.2. Each Lender hereby irrevocably
                  agrees to make its pro rata share of each such Revolving Loan
                  in the amount, in the manner and on the date specified in the
                  preceding sentence notwithstanding (I) the amount of such
                  borrowing may not comply with the minimum amount for advances
                  of Revolving Loans otherwise required under the Credit
                  Agreement, (II) whether any conditions specified in Section
                  5.2 are then satisfied, (III) whether a Default or an Event of
                  Default then exists, (IV) failure of any such request or
                  deemed request for Revolving Loan to be made by the time
                  otherwise required under the Credit Agreement, (V) whether the
                  date of such borrowing is a date on which Revolving Loans are
                  otherwise permitted to be made under the Credit Agreement or
                  (VI) any termination of the Commitments relating thereto
                  immediately prior to or contemporaneously with such borrowing.
                  In the event that any Revolving Loan cannot for any reason be
                  made on the date otherwise required above (including, without
                  limitation, as a result of the commencement of a proceeding
                  under the Bankruptcy Code with respect to Hunt or any other
                  Credit Party), then each Lender hereby agrees that it shall
                  forthwith purchase (as of the date such borrowing would
                  otherwise have occurred, but adjusted for any payments
                  received from Hunt on or after such date and prior to such
                  purchase) from the Swingline Lender such participations in the
                  outstanding Swingline Loans as shall be necessary to cause
                  each such Lender to share in such Swingline Loans ratably
                  based upon its Commitment Percentage of the Revolving
                  Committed Amount (determined before giving effect to any
                  termination of the Commitments pursuant to Section 3.4),
                  provided that (A) all interest payable on the Swingline Loans
                  shall be for the account of the Swingline Lender until the
                  date as of which the respective participation is purchased and
                  (B) at the time any purchase of participations pursuant to
                  this sentence is actually made, the purchasing Lender shall be
                  required to pay to the Swingline Lender, to the extent not

                                       39
<PAGE>

                  paid to the Swingline Lender by Hunt in accordance with the
                  terms of subsection (c)(ii) hereof, interest on the principal
                  amount of participation purchased for each day from and
                  including the day upon which such borrowing would otherwise
                  have occurred to but excluding the date of payment for such
                  participation, at the rate equal to the Federal Funds Rate.

                  (c) Interest on Swingline Loans. (i) Subject to the provisions
         of Section 3.1, each Swingline Loan shall bear interest at a per annum
         rate (computed on the basis of the actual number of days elapsed over a
         year of 360 days) equal to:

                           (A) Base Rate Loans. If such Swingline Loan is a Base
                  Rate Loan, the Base Rate.

                           (B) Quoted Rate Swingline Loans. If such Swingline
                  Loan is a Quoted Rate Swingline Loan, Quoted Rate applicable
                  thereto.

         Notwithstanding any other provision to the contrary set forth in the
         Credit Agreement, in the event that the principal amount of any Quoted
         Rate Swingline Loan is not repaid on the last day of the Interest
         Period for such Loan, then such Loan shall be automatically converted
         into a Base Rate Loan at the end of such Interest Period.

                  (ii) Payment of Interest. Hunt hereby promises to pay interest
         on Swingline Loans in arrears on each applicable Interest Payment Date
         (or at such other times as may be specified herein).

         2.5   Foreign Currency Loan Subfacility.

                  (a) Foreign Currency Commitment. Subject to the terms and
         conditions hereof and in reliance upon the representations and
         warranties set forth in the Credit Agreement, each Lender severally
         agrees to make available to Hunt Europe and Hunt BV such Lender's
         Foreign Currency Commitment Percentage of revolving credit loans in the
         Available Foreign Currency requested by Hunt Europe or Hunt BV, as
         applicable, ("Foreign Currency Loans") from time to time from the date
         five (5) Business Days subsequent to the Closing Date until the date
         five (5) Business Days prior to the Termination Date, or such earlier
         date as the Revolving Commitments shall have been terminated as
         provided in the Credit Agreement for the purposes hereinafter set
         forth; provided, however, that the Dollar Amount (as determined as of
         the most recent Determination Date) of the aggregate amount of Foreign
         Currency Loans outstanding at any time shall not exceed FIFTEEN MILLION
         DOLLARS ($15,000,000.00) (the "Foreign Currency Committed Amount");
         provided, further, (i) with regard to each Lender individually, such
         Lender's outstanding Foreign Currency Loans shall not exceed such
         Lender's Foreign Commitment Percentage of the Foreign Currency
         Committed Amount, (ii) with regard to the Lenders collectively, the sum
         of the Dollar Amount (as determined as of the most recent Determination
         Date) of the aggregate principal amount of outstanding Foreign Currency
         Loans plus the Dollar Amount (as determined as of the most recent
         Determination Date) of Foreign LOC Obligations outstanding shall not at
         any time exceed the aggregate Foreign Currency Committed Amount and

                                       40
<PAGE>
         (iii) with regard to the Lenders collectively, the aggregate principal
         amount of outstanding Revolving Loans plus Domestic LOC Obligations
         outstanding plus the aggregate principal amount of outstanding
         Competitive Loans plus the aggregate principal amount of outstanding
         Swingline Loans plus the Dollar Amount (as determined as of the most
         recent Determination Date) of the aggregate principal amount of
         outstanding Foreign Currency Loans plus the Dollar Amount (as
         determined as of the most recent Determination Date) of Foreign LOC
         Obligations outstanding shall not exceed the Revolving Committed
         Amount. Foreign Currency Loans shall consist solely of Eurodollar Loans
         and may be repaid and reborrowed in accordance with the provisions
         hereof; provided, however, that no more than 12 separate Eurodollar
         Loans shall be outstanding at any time. For purposes hereof, Eurodollar
         Loans with different Interest Periods and/or in different currencies
         shall be considered as separate Eurodollar Loans, even if they begin on
         the same date, although borrowings, extensions and conversions may, in
         accordance with the provisions hereof, be combined at the end of
         existing Interest Periods to constitute a new Eurodollar Loan with a
         single Interest Period and in the same currency.

                  (b) Foreign Currency Loan Borrowings.

                           (i) Notice of Borrowing. Hunt Europe or Hunt BV, as
                  applicable, shall request a Foreign Currency Loan borrowing by
                  written notice (or telephone notice promptly confirmed in
                  writing) to each office of the Agent specified in Section
                  3.14(b) not later than 11:00 A.M., local time in the place
                  where such borrowing is to be made, on the third Business Day
                  prior to the date of the requested borrowing. Each such
                  request for borrowing shall be irrevocable and shall specify
                  (A) that a Foreign Currency Loan is requested, (B) the
                  requested Available Foreign Currency, (C) the date of the
                  requested borrowing (which shall be a Business Day), (D) the
                  aggregate principal amount to be borrowed, and (E) the
                  Interest Period(s) therefor. If such Borrower shall fail to
                  specify in any such Notice of Borrowing an applicable Interest
                  Period, then such notice shall be deemed to be a request for
                  an Interest Period of one month. The Agent shall give notice
                  to each Lender promptly upon receipt of each Notice of
                  Borrowing pursuant to this Section 2.5(b)(i), the contents
                  thereof and each such Lender's share of any borrowing to be
                  made pursuant thereto.

                           (ii) Minimum Amounts. Each Foreign Currency Loan
                  shall be in a minimum aggregate amount equal to the Foreign
                  Currency Equivalent of $500,000 and integral multiples of
                  $250,000 in excess thereof (or the remaining amount of the
                  Foreign Currency Committed Amount, if less).

                           (iii) Advances. Each Lender will make its Foreign
                  Currency Commitment Percentage of each Foreign Currency Loan
                  borrowing available to the Agent as specified in Section
                  3.14(b), or in such other manner as the Agent may specify in
                  writing, by 1:00 P.M., local time in the place where such
                  deposit is required to be made, on the date specified in the
                  applicable Notice of Borrowing in the applicable Available
                  Foreign Currency and in funds immediately available to the
                  Agent. Such borrowing will then be made available to the

                                       41
<PAGE>

                  applicable Borrower by the Agent by crediting the account of
                  such Borrower on the books of such office with the aggregate
                  of the amounts made available to the Agent by the Lenders and
                  in like funds as received by the Agent.

                  (c) Repayment. Each of Hunt Europe and Hunt BV hereby promises
         to pay the principal amount of all Foreign Currency Loans made to such
         Borrower in full in the applicable Available Foreign Currency on the
         Termination Date, unless accelerated sooner pursuant to Section 9.2.

                  (d) Interest. Subject to the provisions of Section 3.1,
         Foreign Currency Loans shall bear interest at a per annum rate equal to
         the Eurodollar Rate plus the Applicable Margin. Each of Hunt Europe and
         Hunt BV hereby promises to pay interest on such Borrower's Foreign
         Currency Loans (in the applicable Available Foreign Currency) in
         arrears on each Interest Payment Date.

                  (e) Introduction of Euro; National Currency Unit Advances,
         Etc.

                  (i) National Currency Unit Advances. Prior to the Transition
         Period Cutoff Date, Foreign Currency Loans may be funded and maintained
         in National Currency Units of the Available EMU Currency designated by
         the applicable Borrower in its Notice of Borrowing. Repayments of
         Foreign Currency Loans that were funded in National Currency Units
         pursuant to this Section shall be made in such National Currency Units;
         provided, however, that any Foreign Currency Loan that is (A)
         denominated in National Currency Units and (B) outstanding as of the
         Transition Period Cutoff Date shall be automatically redenominated into
         euro as of the close of business on such date at the applicable
         Irrevocable Conversion Rate; and provided further that repayments of
         all such Foreign Currency Loans made after the Transition Period Cutoff
         Date shall be denominated in euro. After the Transition Period Cutoff
         Date, Foreign Currency Loans shall no longer be funded in National
         Currency Units.

                  (ii) Conversions to Euro. For the avoidance of doubt, the
         parties hereto affirm and agree that neither the fixation of the
         conversion rate of an Available EMU Currency against the euro as a
         single currency, in accordance with the Treaty on European Union, nor
         the conversion of any Borrowers' Obligations under the Credit Documents
         from an Available EMU Currency, or National Currency Units, into euro,
         shall require the early termination of this Credit Agreement or the
         prepayment of any amount due under the Credit Documents or create any
         liability of one party to another party for any direct or consequential
         loss arising from any of such events.

                  (iii) Currency Translations; Rounding. Any translation from
         one currency or currency unit to another shall be at the rate specified
         herein or, if not so specified, then at the official rate of exchange
         legally recognized by the central bank of the country issuing such
         currency for the conversion of that currency or currency unit into the
         other. Any such translation shall be rounded up or down by the Agent
         acting in accordance with any applicable law on rounding or, if there
         is no such law, acting reasonably in accordance with its market
         practice.

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<PAGE>

                  (iv) Changes in Currency. If a change in any currency of a
         country occurs, this Agreement will be amended to the extent the Agent
         (acting reasonably) specifies to be necessary to reflect the change in
         currency and to put the parties hereto in the same position, as far as
         possible, that they would have been in if no change in currency had
         occurred; provided that any such amendments will not adversely affect
         the Lenders.

         2.6   Foreign Letter of Credit Subfacility.

                  (a) Issuance. Subject to the terms and conditions hereof and
         of the LOC Documents, if any, and any other terms and conditions which
         the Issuing Lender may reasonably require, the Lenders will participate
         in the issuance by the Issuing Lender, from time to time and in any
         Available Foreign Currency, of such Foreign Letters of Credit from the
         date five (5) Business Days subsequent to the Closing Date until the
         date five (5) Business Days prior to the Termination Date as Hunt
         Europe or Hunt BV may request, in a form acceptable to the Issuing
         Lender; provided, however, that (i) the Dollar Amount (as determined as
         of the most recent Determination Date) of the Foreign LOC Obligations
         outstanding shall not at any time exceed TEN MILLION DOLLARS
         ($10,000,000) (the "Foreign LOC Committed Amount"), (ii) the sum of the
         Dollar Amount (as determined as of the most recent Determination Date)
         of the aggregate principal amount of outstanding Foreign Currency Loans
         plus the Dollar Amount (as determined as of the most recent
         Determination Date) of Foreign LOC Obligations outstanding shall not at
         any time exceed the aggregate Foreign Currency Committed Amount and
         (iii) the sum of the aggregate principal amount of outstanding
         Revolving Loans plus Domestic LOC Obligations outstanding plus the
         aggregate principal amount of outstanding Competitive Loans plus the
         aggregate principal amount of outstanding Swingline Loans plus the
         Dollar Amount (as determined as of the most recent Determination Date)
         of the aggregate principal amount of outstanding Foreign Currency Loans
         plus the Dollar Amount (as determined as of the most recent
         Determination Date) of Foreign LOC Obligations outstanding shall not at
         any time exceed the aggregate Revolving Committed Amount. No Foreign
         Letter of Credit shall (x) have an original expiry date more than one
         year from the date of issuance or (y) as originally issued or as
         extended, have an expiry date extending beyond the Termination Date.
         Each Foreign Letter of Credit shall comply with the related LOC
         Documents. The issuance and expiry date of each Foreign Letter of
         Credit shall be a Business Day.

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

                                       43

<PAGE>

                  (c) Participation. Each Lender, upon issuance of a Foreign
         Letter of Credit, shall be deemed to have purchased without recourse a
         risk participation from the Issuing Lender in such Foreign Letter of
         Credit and the obligations arising thereunder, in each case in an
         amount equal to its pro rata share of the obligations under such
         Foreign Letter of Credit (based on the respective Commitment
         Percentages of the Lenders) and shall absolutely, unconditionally and
         irrevocably assume, as primary obligor and not as surety, and be
         obligated to pay in the same Available Foreign Currency as such Foreign
         Letter of Credit to the Issuing Lender therefor and discharge when due,
         its pro rata share of the obligations arising under such Foreign Letter
         of Credit. Without limiting the scope and nature of each Lender's
         participation in any Foreign Letter of Credit, to the extent that the
         Issuing Lender has not been reimbursed as required under the Credit
         Agreement or under any such Foreign Letter of Credit, each such Lender
         shall pay to the Issuing Lender in the same Available Foreign Currency
         as such Foreign Letter of Credit its pro rata share of such
         unreimbursed drawing in same day funds on the date five (5) Business
         Days after notification by the Issuing Lender of an unreimbursed
         drawing pursuant to the provisions of subsection (d) hereof. The
         obligation of each Lender to so reimburse the Issuing Lender shall be
         absolute and unconditional and shall not be affected by the occurrence
         of a Default, an Event of Default or any other occurrence or event. Any
         such reimbursement shall not relieve or otherwise impair the obligation
         of Hunt Europe or Hunt BV to reimburse the Issuing Lender under any
         applicable Foreign Letter of Credit, together with interest as
         hereinafter provided.

                  (d) Reimbursement. In the event of any drawing under any
         Foreign Letter of Credit, the Issuing Lender will promptly notify the
         applicable Borrower. Each of Hunt Europe and Hunt BV promises to
         reimburse the Issuing Lender on or prior to the date that is three (3)
         Business Days after the day of any drawing under any applicable Foreign
         Letter of Credit (the "Reimbursement Date") an amount equal to such
         drawing in same day funds. Unless the applicable Borrower shall
         immediately notify the Issuing Lender that such Borrower intends to
         otherwise reimburse the Issuing Lender for such drawing, such Borrower
         shall be deemed to have requested that the Lenders make a Foreign
         Currency Loan in the amount of the drawing as provided in subsection
         (f) hereof on the related Foreign Letter of Credit on the applicable
         Reimbursement Date, the proceeds of which will be used to satisfy the
         related reimbursement obligations. The unreimbursed amount of any
         drawing under a Foreign Letter of Credit shall, subject to the terms of
         Section 3.1, bear interest from and including the date of drawing until
         but excluding the date of reimbursement at a per annum rate equal to
         the Interim Foreign Currency Rate plus the Applicable Margin applicable
         to Eurodollar Loans. Hunt Europe's and Hunt BV's reimbursement
         obligations under the Credit Agreement shall be absolute and
         unconditional under all circumstances irrespective of any rights of
         setoff, counterclaim or defense to payment such Borrower may claim or
         have against the Issuing Lender, the Agent, the Lenders, the

                                       44
<PAGE>

         beneficiary of the Foreign Letter of Credit drawn upon or any other
         Person, including without limitation any defense based on any failure
         of such Borrower or any other Credit Party to receive consideration or
         the legality, validity, regularity or unenforceability of the Foreign
         Letter of Credit. The Issuing Lender will promptly notify the other
         Lenders of the amount of any unreimbursed drawing and each Lender shall
         promptly pay, on the Reimbursement Date, to the Agent for the account
         of the Issuing Lender in the same Available Foreign Currency as such
         Foreign Letter of Credit and in immediately available funds, the amount
         of such Lender's pro rata share of such unreimbursed drawing. If such
         Lender does not pay such amount to the Issuing Lender in full upon such
         request, such Lender shall, on demand, pay to the Agent for the account
         of the Issuing Lender interest on the unpaid amount during the period
         from the Reimbursement Date until such Lender pays such amount to the
         Issuing Lender in full at a rate per annum equal to the Interim Foreign
         Currency Rate. Each Lender's obligation to make such payment to the
         Issuing Lender, and the right of the Issuing Lender to receive the
         same, shall be absolute and unconditional, shall not be affected by any
         circumstance whatsoever and without regard to the termination of the
         Credit Agreement or the Commitments, the existence of a Default or
         Event of Default or the acceleration of the obligations of Hunt Europe
         or Hunt BV, as the case may be, under the Credit Documents and shall be
         made without any offset, abatement, withholding or reduction
         whatsoever. Simultaneously with the making of each such payment by a
         Lender to the Issuing Lender, such Lender shall, automatically and
         without any further action on the part of the Issuing Lender or such
         Lender, acquire a participation in an amount equal to such payment
         (excluding the portion of such payment constituting interest owing to
         the Issuing Lender) in the related unreimbursed drawn portion of the
         Foreign LOC Obligation and in the interest thereon and in the related
         LOC Documents, and shall have a claim against Hunt Europe or Hunt BV,
         as applicable, with respect thereto.

                  (e) Interim Interest. In the event of any drawing under any
         Foreign Letter of Credit, unless Hunt Europe or Hunt BV, as applicable,
         shall reimburse the Issuing Lender for such drawing in full on such
         date, the unpaid amount of such drawing shall bear interest for the
         account of the Issuing Lender at the Interim Foreign Currency Rate plus
         the Applicable Margin applicable to Eurodollar Loans. Interest shall
         accrue for each day from and including the date of any drawing under
         any Foreign Letter of Credit to, but excluding, the date of payment in
         full of such drawing (including by way of a Foreign Currency Loan
         pursuant to subsection (f) hereof).

                  (f) Repayment with Foreign Currency Loans. On any day on which
         Hunt Europe or Hunt BV, as the case may be, shall have requested, or
         been deemed to have requested, a Foreign Currency Loan advance to
         reimburse a drawing under a Foreign Letter of Credit, the Agent shall
         give notice to the Lenders that a Foreign Currency Loan has been
         requested or deemed requested by such Borrower to be made in connection
         with a drawing under a Foreign Letter of Credit, in which case a
         Foreign Currency Loan advance shall be made to such Borrower by all
         Lenders on the respective Reimbursement Date (notwithstanding any

                                       45
<PAGE>

         termination of the Commitments pursuant to Section 9.2) pro rata based
         on the respective Commitment Percentages of the Lenders (determined
         before giving effect to any termination of the Commitments pursuant to
         Section 9.2) and the proceeds thereof shall be paid directly to the
         Issuing Lender for application to the respective Foreign LOC
         Obligations. Each such Lender hereby irrevocably agrees to make its pro
         rata share of each such Foreign Currency Loan immediately upon any such
         request or deemed request in the amount, in the manner and on the date
         specified in the preceding sentence notwithstanding (i) the amount of
         such borrowing may not comply with the minimum amount for advances of
         Foreign Currency Loans otherwise required under the Credit Agreement,
         (ii) whether any conditions specified in Section 5.2 are then
         satisfied, (iii) whether a Default or an Event of Default then exists,
         (iv) failure for any such request or deemed request for Foreign
         Currency Loans to be made by the time otherwise required under the
         Credit Agreement, (v) whether the date of such borrowing is a date on
         which Foreign Currency Loans are otherwise permitted to be made under
         the Credit Agreement, (vi) any rights that such Lender may have in
         respect of such Foreign Currency Loans under Section 3.7, or (vii) any
         termination of the Commitments relating thereto immediately prior to or
         contemporaneously with such borrowing. In the event that any Foreign
         Currency Loan cannot for any reason be made on the date otherwise
         required above (including, without limitation, as a result of the
         commencement of a proceeding under the Bankruptcy Code with respect to
         the applicable Borrower or any other Credit Party), then each such
         Lender hereby agrees that it shall forthwith purchase (as of the date
         such borrowing would otherwise have occurred, but adjusted for any
         payments received from Hunt Europe or Hunt BV, as applicable, on or
         after such date and prior to such purchase) from the Issuing Lender in
         the same Available Foreign Currency as such Foreign Letter of Credit
         such participation in the outstanding Foreign LOC Obligations as shall
         be necessary to cause each such Lender to share in such Foreign LOC
         Obligations ratably (based upon the respective Commitment Percentages
         of the Lenders (determined before giving effect to any termination of
         the Commitments pursuant to Section 9.2)), provided that at the time
         any purchase of participation pursuant to this sentence is actually
         made, the purchasing Lender shall be required to pay to the Issuing
         Lender, to the extent not paid to the Issuer by the applicable Borrower
         in accordance with the terms of subsection (d) hereof, interest on the
         principal amount of participation purchased for each day from and
         including the day upon which such borrowing would otherwise have
         occurred to but excluding the date of payment for such participation,
         at the rate equal to the Interim Foreign Currency Rate.

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

                  (h) Uniform Customs and Practices. The Issuing Lender may have
         the Foreign Letters of Credit be subject to the UCP or the ISP98, in
         either case as published as of the date of issue by the International
         Chamber of Commerce, in which case the UCP or ISP98, as applicable, may
         be incorporated therein and deemed in all respects to be a part
         thereof.

                                       46

<PAGE>

                  (i) Indemnification; Nature of Issuing Lender's Duties. (i) In
         addition to its other obligations under this Section 2.6, each of Hunt
         Europe and Hunt BV hereby agrees to protect, indemnify, pay and save
         the Issuing Lender harmless from and against any and all claims,
         demands, liabilities, damages, losses, costs, charges and expenses
         (including reasonable attorneys' fees) that the Issuing Lender may
         incur or be subject to as a consequence, direct or indirect, of (A) the
         issuance of any Foreign Letter of Credit requested by such Borrower or
         (B) the failure of the Issuing Lender to honor a drawing under a
         Foreign Letter of Credit issued by such Borrower as a result of any act
         or omission, whether rightful or wrongful, of any present or future de
         jure or de facto government or governmental authority (all such acts or
         omissions, herein called "Government Acts").

                  (ii) As between Hunt Europe, Hunt BV and the Issuing Lender,
         each of Hunt Europe and Hunt BV shall assume all risks of the acts,
         omissions or misuse of any applicable Foreign Letter of Credit by the
         beneficiary thereof. The Issuing Lender shall not be responsible: (A)
         for the form, validity, sufficiency, accuracy, genuineness or legal
         effect of any document submitted by any party in connection with the
         application for and issuance of any Foreign Letter of Credit, even if
         it should in fact prove to be in any or all respects invalid,
         insufficient, inaccurate, fraudulent or forged; (B) for the validity or
         sufficiency of any instrument transferring or assigning or purporting
         to transfer or assign any Foreign Letter of Credit or the rights or
         benefits thereunder or proceeds thereof, in whole or in part, that may
         prove to be invalid or ineffective for any reason; (C) for errors,
         omissions, interruptions or delays in transmission or delivery of any
         messages, by mail, cable, telegraph, telex or otherwise, whether or not
         they be in cipher; (D) for any loss or delay in the transmission or
         otherwise of any document required in order to make a drawing under a
         Foreign Letter of Credit or of the proceeds thereof; and (E) for any
         consequences arising from causes beyond the control of the Issuing
         Lender, including, without limitation, any Government Acts. None of the
         above shall affect, impair, or prevent the vesting of the Issuing
         Lender's rights or powers under Credit Agreement.

                  (iii) In furtherance and extension and not in limitation of
         the specific provisions hereinabove set forth, any action taken or
         omitted by the Issuing Lender, under or in connection with any Foreign
         Letter of Credit or the related certificates, if taken or omitted in
         good faith, shall not put such Issuing Lender under any resulting
         liability to Hunt Europe, Hunt BV or any other Credit Party. It is the
         intention of the parties that the Credit Agreement shall be construed
         and applied to protect and indemnify the Issuing Lender against any and
         all risks involved in the issuance of the Foreign Letters of Credit,
         all of which risks are hereby assumed by Hunt Europe or Hunt BV, as
         applicable, (on behalf of itself and each of the other Credit Parties),
         including, without limitation, any and all Government Acts. The Issuing
         Lender shall not, in any way, be liable for any failure by the Issuing
         Lender or anyone else to pay any drawing under any Foreign Letter of
         Credit as a result of any Government Acts or any other cause beyond the
         control of the Issuing Lender.

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<PAGE>

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

                  (v) Notwithstanding anything to the contrary contained in this
         subsection (i), neither Hunt Europe nor Hunt BV shall have no
         obligation to indemnify the Issuing Lender in respect of any liability
         incurred by the Issuing Lender (A) arising solely out of the gross
         negligence or willful misconduct of the Issuing Lender or (B) caused by
         the Issuing Lender's unlawful failure to pay under any Foreign Letter
         of Credit.

                  (j) Responsibility of Issuing Lender. It is expressly
         understood and agreed that the obligations of the Issuing Lender under
         the Credit Agreement to the Lenders are only those expressly set forth
         in the Credit Agreement and that the Issuing Lender shall be entitled
         to assume that the conditions precedent set forth in Section 5.2 have
         been satisfied unless it shall have acquired actual knowledge that any
         such condition precedent has not been satisfied; provided, however,
         that nothing set forth in this Section 2.6 shall be deemed to prejudice
         the right of any Lender to recover from the Issuing Lender any amounts
         made available by such Lender to the Issuing Lender pursuant to this
         Section 2.6 in the event that it is determined by a court of competent
         jurisdiction that the payment with respect to a Foreign Letter of
         Credit constituted gross negligence or willful misconduct on the part
         of the Issuing Lender.

                  (k) Conflict with LOC Documents. In the event of any conflict
         between the Credit Agreement and any LOC Document, the Credit Agreement
         shall control.

                  (l) Introduction of Euro.

                  (i) Foreign Letters of Credit Issued in National Currency
         Units. Prior to the Transition Period Cutoff Date, Foreign Letters of
         Credit may be issued in National Currency Units of the Available EMU
         Currency designated by the applicable Borrower in its request for
         issuance of a Foreign Letter of Credit pursuant to Section 2.6(b).
         Reimbursements of drawings under Foreign Letters of Credit that were
         issued in National Currency Units pursuant to this Section shall be
         made in such National Currency Units; provided, however, that any
         Foreign Letter of Credit that is (A) denominated in National Currency
         Units and (B) outstanding as of the Transition Period Cutoff Date shall
         be automatically redenominated into euro as of the close of business on
         such date at the applicable Irrevocable Conversion Rate; and provided
         further that the reimbursement of all drawings under such Foreign
         Letters of Credit made after the Transition Period Cutoff Date shall be
         denominated in euro. After the Transition Period Cutoff Date, Foreign
         Letters of Credit shall no longer be issued in National Currency Units.

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<PAGE>

                  (ii) Conversions to Euro. For the avoidance of doubt, the
         parties hereto affirm and agree that neither the fixation of the
         conversion rate of an Available EMU Currency against the euro as a
         single currency, in accordance with the Treaty on European Union, nor
         the conversion of any Borrowers' Obligations under the Credit Documents
         from an Available EMU Currency, or National Currency Units, into euro,
         shall require the early termination of this Credit Agreement or the
         prepayment of any amount due under the Credit Documents or create any
         liability of one party to another party for any direct or consequential
         loss arising from any of such events.

                  (iii) Currency Translations; Rounding. Any translation from
         one currency or currency unit to another shall be at the rate specified
         herein or, if not so specified, then at the official rate of exchange
         legally recognized by the central bank of the country issuing such
         currency for the conversion of that currency or currency unit into the
         other. Any such translation shall be rounded up or down by the Agent
         acting in accordance with any applicable law on rounding or, if there
         is no such law, acting reasonably in accordance with its market
         practice.

                  (iv) Changes in Currency. If a change in any currency of a
         country occurs, this Agreement will be amended to the extent the Agent
         (acting reasonably) specifies to be necessary to reflect the change in
         currency and to put the parties hereto in the same position, as far as
         possible, that they would have been in if no change in currency had
         occurred; provided that any such amendments will not adversely affect
         the Lenders.

                                    SECTION 3

                 OTHER PROVISIONS RELATING TO CREDIT FACILITIES

         3.1   Default Rate.

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

         3.2   Extension and Conversion.

         Subject to the terms of Section 5.2, the Borrowers shall have the
option, on any Business Day, to extend existing Loans into a subsequent
permissible Interest Period or to convert Loans into Loans of another type;
provided, however, that (i) except as provided in Section 3.8, Revolving Loans
that are Eurodollar Loans may be converted into Base Rate Loans only on the last
day of the Interest Period applicable thereto, (ii) Eurodollar Loans may be
extended, and Revolving Loans that are Base Rate Loans may be converted into
Eurodollar Loans, only if no Default or Event of Default is in existence on the

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<PAGE>

date of extension or conversion, (iii) Loans extended as, or Revolving Loans
converted into, Eurodollar Loans shall be subject to the terms of the definition
of "Interest Period" set forth in Section 1.1 and shall be in such minimum
amounts as provided in Section 2.1(b)(ii), (iv) no more than 12 separate
Eurodollar Loans shall be outstanding under the Credit Agreement at any time;
provided, that for purposes hereof, Eurodollar Loans with different Interest
Periods and/or in different currencies shall be considered as separate
Eurodollar Loans, even if they begin on the same date, although borrowings,
extensions and conversions may, in accordance with the provisions hereof, be
combined at the end of existing Interest Periods to constitute a new Eurodollar
Loan with a single Interest Period and in the same currency, (v) any request for
extension or conversion of a Eurodollar Loan which shall fail to specify an
Interest Period shall be deemed to be a request for an Interest Period of one
month and (vi) Competitive Loans and Swingline Loans may not be extended or
converted pursuant to this Section 3.2. Each such extension or conversion shall
be effected by the appropriate Borrower by giving a Notice of
Extension/Conversion (or telephone notice promptly confirmed in writing) to the
Agent prior to 11:00 A.M., local time in the place where such Loan was initially
advanced, on the Business Day of, in the case of the conversion of a Revolving
Loan that is a Eurodollar Loan into a Base Rate Loan, and on the third Business
Day prior to, in the case of the extension of a Eurodollar Loan as, or
conversion of a Revolving Loan that is a Base Rate Loan into, a Eurodollar Loan,
the date of the proposed extension or conversion, specifying the date of the
proposed extension or conversion, the Loans to be so extended or converted, the
types of Loans into which such Loans are to be converted and, if appropriate,
the applicable Interest Periods with respect thereto. Each request for extension
or conversion shall constitute a representation and warranty by the requesting
Borrower of the matters specified in subsections (ii), (iii), (iv) and (v) of
Section 5.2(a). In the event a Borrower fails to request extension or conversion
of any Eurodollar Loan in accordance with this Section, or any such conversion
or extension is not permitted or required by this Section, then (i) in the case
of any Eurodollar Loan that is a Revolving Loan, such Loan shall be
automatically converted into a Base Rate Loan at the end of the Interest Period
applicable thereto and (ii) in the case of any Eurodollar Loan which is a
Foreign Currency Loan, such Loan shall be automatically continued as a
Eurodollar Loan for an Interest Period of one month. The Agent shall give each
Lender notice as promptly as practicable of any such proposed extension or
conversion affecting any Loan. A Foreign Currency Loan in one Available Foreign
Currency may not be converted to a Foreign Currency Loan in another Available
Foreign Currency pursuant to this Section 3.2.

         3.3   Prepayments.

                  (a) Voluntary Prepayments. The Borrowers shall have the right
         to prepay Loans in whole or in part from time to time without premium
         or penalty; provided, however, that (i) Eurodollar Loans may only be
         prepaid on three Business Days' prior written notice to the Agent and
         specifying the applicable Loans to be prepaid; (ii) any prepayment of
         Eurodollar Loans, Competitive Loans or Quoted Rate Swingline Loans will
         be subject to Section 3.11; and (iii) each such partial prepayment of
         Loans shall be in a minimum principal amount of (A) in the case of
         Revolving Loans, Competitive Loans and Foreign Currency Loans,
         $2,000,000 (or the Foreign Currency Equivalent thereof) and integral
         multiples of $1,000,000 (or the Foreign Currency Equivalent thereof) in
         excess thereof and (B) in the case of Swingline Loans, $100,000 and
         integral multiples of $50,000 in excess thereof. Subject to the

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<PAGE>

         foregoing terms, amounts prepaid under the Credit Agreement shall be
         applied as the prepaying Borrower may elect; provided that, with
         respect to Revolving Loans, if Hunt fails to specify a voluntary
         prepayment then such prepayment shall be applied first to Base Rate
         Loans and then to Eurodollar Loans in direct order of Interest Period
         maturities.

                  (b) Mandatory Prepayments.

                        (i) If at any time (including, without limitation, on
         any Determination Date), (A) the sum of the aggregate amount of
         outstanding Revolving Loans plus Domestic LOC Obligations outstanding
         plus the aggregate principal amount of outstanding Competitive Loans
         plus the aggregate principal amount of outstanding Swingline Loans plus
         the Dollar Amount (as determined as of the most recent Determination
         Date) of the aggregate principal amount of outstanding Foreign Currency
         Loans plus the Dollar Amount (as determined as of the most recent
         Determination Date) of Foreign LOC Obligations outstanding shall exceed
         the Revolving Committed Amount or (B) the aggregate principal amount of
         outstanding Competitive Loans shall exceed the Competitive Loan Maximum
         Amount, Hunt promises to prepay, or cause Hunt Europe or Hunt BV to
         prepay, immediately the outstanding principal balance on the Revolving
         Loans, Foreign Currency Loans, Swingline Loans and/or Competitive Loans
         in an amount sufficient to eliminate such excess.

                    (ii) If on any Determination Date, the sum of the Dollar
         Amount of the aggregate Foreign Currency Loans outstanding plus the
         Dollar Amount of Foreign LOC Obligations outstanding exceeds (as the
         result of fluctuations in applicable foreign exchange rates or
         otherwise) then Foreign Currency Committed Amount, Hunt Europe or Hunt
         BV, as applicable, promises to make a mandatory prepayment of the
         applicable Foreign Currency Loans to the Agent in an aggregate Dollar
         Amount equal to the excess of

                           (x) the amount equal to the sum of the Dollar Amount
                  of the aggregate Foreign Currency Loans outstanding plus the
                  Dollar Amount of Foreign LOC Obligations outstanding

                  over

                           (y) the Foreign Currency Committed Amount.

                    (iii) Upon the occurrence of any Excess Sale Event, Hunt
         shall, immediately following the related Application Period, prepay the
         Loans in an amount equal to the Excess Sale Proceeds not applied (or
         caused to be applied) by Hunt during the related Application Period to
         the purchase, acquisition or construction of Alternative Assets as
         contemplated by the terms of Section 8.4(b)(iv)(B)(1) multiplied by the
         percentage determined by dividing (1) the then current Revolving
         Committed Amount by (2) the sum of (I) the then current Revolving
         Committed Amount plus (II) if the Senior Noteholders shall require Hunt
         to prepay the Senior Notes with any such Excess Sale Proceeds, the
         aggregate then outstanding principal amount of all Senior Notes.

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<PAGE>

                    (iv) To the extent that the aggregate cumulative amount of
         cash (including cash received in respect of non-cash consideration) Net
         Proceeds from Equity Transactions received by Hunt or any of its
         Subsidiaries during any fiscal year exceeds $500,000, Hunt shall,
         within 60 days of receipt of any such Net Proceeds at any time that the
         Consolidated Leverage Ratio as of the most recent fiscal quarter end
         with respect to which the Agent shall have received the Required
         Financial Information is greater than 2.50 to 1.00, prepay the Loans in
         an amount equal to 50% of the portion of such cash Net Proceeds
         exceeding $500,000 not applied by Hunt within such 60 day period to pay
         the purchase price in connection with any acquisition permitted by the
         terms of Section 8.4(c).

              (c) General. All prepayments made pursuant to this Section 3.3
         shall be subject to Section 3.11, shall be applied first to Base Rate
         Loans and then to Eurodollar Loans in direct order, shortest to
         longest, of Interest Period maturities and shall be accompanied by
         accrued interest on the principal amount being prepaid to the date of
         prepayment and all other amounts due and payable under the Credit
         Agreement with respect to such Loans. Amounts prepaid may be reborrowed
         in accordance with the provisions hereof.

         3.4   Termination and Reduction of Revolving Committed Amount.

               (a) Voluntary Reductions. Hunt may from time to time permanently
         reduce or terminate the Revolving Committed Amount in whole or in part
         (in minimum aggregate amounts of $5,000,000 or in integral multiples of
         $1,000,000 in excess thereof (or, if less, the full remaining amount of
         the then applicable Revolving Committed Amount)) upon three Business
         Days' prior written notice to the Agent; provided, however, no such
         termination or reduction shall be made which would reduce the Revolving
         Committed Amount to an amount less than the aggregate principal amount
         of outstanding Revolving Loans plus Domestic LOC Obligations
         outstanding plus the aggregate principal amount of outstanding
         Competitive Loans plus the aggregate principal amount of outstanding
         Swingline Loans plus the Dollar Amount (as determined as of the most
         recent Determination Date) of the aggregate principal amount of
         outstanding Foreign Currency Loans plus the Dollar Amount (as
         determined as of the most recent Determination Date) of Foreign LOC
         Obligations outstanding. The Agent shall promptly notify each of the
         Lenders of receipt by the Agent of any notice from Hunt pursuant to
         this Section 3.4(a).

               (b) Mandatory Reductions.

                  (i) On any date that the Revolving Loans are required to be
               prepaid or the Revolving Commitments are required to be reduced
               pursuant to the terms of Section 3.3(b)(iii) or (iv), the
               Revolving Committed Amount automatically shall be permanently
               reduced by the amount of such required prepayment.

                  (ii) On any date that Hunt shall enter into a Permitted
               Receivables Financing, the Revolving Committed Amount
               automatically shall be permanently reduced by the facility
               commitment amount of such Permitted Receivables Financing.

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<PAGE>

               (c) Termination Date. The Commitments of the Lenders and the
         Issuing Lender shall automatically terminate on the Termination Date.

         3.5   Fees.

               (a) Unused Fee. In consideration of the Revolving Commitments of
         the Lenders, Hunt agrees to pay to the Agent for the account of each
         Lender a fee (the "Unused Fee") on such Lender's Commitment Percentage
         of the Unused Revolving Committed Amount computed at a per annum rate
         for each day during the applicable Unused Fee Calculation Period
         (hereinafter defined) at a rate equal to the Applicable Margin in
         effect from time to time. The Unused Fee shall commence to accrue on
         the Closing Date and shall be due and payable in arrears on the
         fifteenth (15th) day of each January, April, July and October (and the
         Termination Date) for the immediately preceding fiscal quarter (or
         portion thereof) (each such fiscal quarter or portion thereof for which
         the Unused Fee is payable under the Credit Agreement being referred to
         as an "Unused Fee Calculation Period"), beginning with the first of
         such dates to occur after the Closing Date.

               (b)  Letter of Credit Fees.

                    (i) Issuance Fee. In consideration of the issuance of
               standby Letters of Credit, each Borrower promises to pay to the
               Agent for the account of the Lenders a fee (the "Standby Letter
               of Credit Fee") on the average daily maximum amount available to
               be drawn under each such standby Letter of Credit computed at a
               per annum rate for each day from the date of issuance to the date
               of expiration equal to the Applicable Margin for the Standby
               Letter of Credit Fee. The Standby Letter of Credit Fee will be
               payable quarterly in arrears on the last day of each March, June,
               September and December for the immediately preceding fiscal
               quarter (or a portion thereof).

                    (ii) Trade Letter of Credit Drawing Fee. In consideration of
               the issuance of trade Letters of Credit, each Borrower promises
               to pay to the Agent for the account of the Lenders a fee (the
               "Trade Letter of Credit Fee") of 15 basis points on the amount of
               each drawing under any such trade Letter of Credit. The Trade
               Letter of Credit Fee will be payable on each date of drawing
               under a trade Letter of Credit.

                    (iii) Issuing Lender Fees. In addition to the Standby Letter
               of Credit Fee payable pursuant to clause (i) above and the Trade
               Letter of Credit Fee payable pursuant to clause (ii) above, each
               Borrower promises to pay to the Issuing Lender for its own
               account without sharing by the other Lenders (A) a letter of
               credit fronting fee of 12.5 basis points on the average daily
               maximum amount available to be drawn under each Letter of Credit
               computed at a per annum rate for each day from the date of

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<PAGE>

               issuance to the date of expiration payable quarterly in arrears
               on the last day of each March, June, September and December for
               the immediately preceding fiscal quarter (or a portion thereof)
               and (B) the customary charges from time to time of the Issuing
               Lender with respect to the issuance, amendment, transfer,
               administration, cancellation and conversion of, and drawings
               under, such Letters of Credit (collectively, the "Issuing Lender
               Fees").

               (c) Administrative Fees. Hunt agrees to pay to the Agent, for its
         own account and for the account of Banc of America Securities LLC, as
         applicable, the fees referred to in the Agent's Fee Letter
         (collectively, the "Agent's Fees").

               (d) Competitive Bid Request Fee. Hunt shall make payment to the
         Agent for each Competitive Bid Request of a Competitive Bid
         administrative fee (the "Competitive Bid Request Fee") of $1500
         concurrently with delivery of any Competitive Bid Request (whether or
         not any Competitive Bid is offered by a Lender or accepted by Hunt and
         whether or not any Competitive Loan is extended by any Lender in
         connection with such Competitive Bid Request).

         3.6   Capital Adequacy.

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

         3.7   Unavailability.

               (a) If prior to the first day of any Interest Period, the Agent
         shall have determined (which determination shall be conclusive and
         binding upon the Borrowers) that, by reason of circumstances affecting
         the relevant market, adequate and reasonable means do not exist for
         ascertaining the Eurodollar Rate for such Interest Period, the Agent
         shall give telecopy or telephonic notice thereof to the Borrowers and
         the Lenders as soon as practicable thereafter. If such notice is given
         (i) in respect of any Eurodollar Loans which are Revolving Loans, (A)
         such Loans requested to be made on the first day of such Interest
         Period shall be made as Base Rate Loans, (B) any such Loans that were
         to have been converted on the first day of such Interest Period to or

                                       54
<PAGE>

         continued as Eurodollar Loans shall be converted to or continued as
         Base Rate Loans and (C) any such Loans which are Revolving Loans shall
         be converted, on the first day of such Interest Period, to Base Rate
         Loans and (ii) in respect of any Eurodollar Loans which are Foreign
         Currency Loans, (A) any such Loans requested to be made on the first
         day of such Interest Period shall be deemed rescinded and (B) any such
         Loans shall be repaid in full by Hunt Europe or Hunt BV, as applicable,
         on the first day of such Interest Period. Until such notice has been
         withdrawn by the Agent, no further Eurodollar Loans shall be made or
         continued as such, nor shall Hunt have the right to convert Base Rate
         Loans to Eurodollar Loans.

               (b) If prior to the first day of any Interest Period, the Agent
         shall have determined (which determination shall be conclusive and
         binding upon the Borrowers) that deposits in any Available Foreign
         Currency are not available in the relevant market to any Lender, the
         Agent shall give telecopy or telephonic notice thereof to Hunt Europe,
         Hunt BV and the Lenders as soon as practicable thereafter. If such
         notice is given, (i) any Foreign Currency Loans denominated in such
         Available Foreign Currency requested to be made on the first day of
         such Interest Period shall be deemed rescinded and (ii) any outstanding
         Foreign Currency Loans denominated in such Available Foreign Currency
         shall be repaid in full by Hunt Europe or Hunt BV, as applicable, on
         the first day of such Interest Period. Until such notice has been
         withdrawn by the Agent, no further Foreign Currency Loans denominated
         in such Available Foreign Currency shall be made or continued, and no
         Foreign Letters of Credit denominated in such Available Foreign
         Currency shall be issued or extended.

               (c) If prior to the issuance of any Foreign Letter of Credit, the
         Agent shall have determined (which determination shall be conclusive
         and binding upon Hunt Europe and Hunt BV) that, with respect to the
         requested Foreign Letter of Credit, the applicable Available Foreign
         Currency in the amount of any Lender's participation interest in such
         Foreign Letter of Credit is not, and/or during the term of such Foreign
         Letter of Credit will not be, available to any such Lender, then (i)
         the Agent shall notify Hunt Europe, Hunt BV and the Lenders of such
         circumstances and (ii) the Issuing Lender shall have no obligation to
         issue, and the Lenders shall have no obligation to participate in, such
         Foreign Letter of Credit.

         3.8   Illegality.

               (a) Notwithstanding any other provision in the Credit Agreement,
         if (i) the adoption of or any change in any Requirement of Law or in
         the interpretation or application thereof occurring after the Closing
         Date shall make it unlawful for any Lender to make or maintain
         Eurodollar Loans or Foreign Currency Loans or issue or extend Foreign
         Letters of Credit or (ii) there shall have occurred any change in
         national or international financial, political or economic conditions
         (including the imposition of or any change in exchange controls) or
         currency exchange rates which would make it impracticable for any
         Lender to make Loans or issue Foreign Letters of Credit denominated in
         any Available Foreign Currency to Hunt Europe or Hunt BV, as
         contemplated by the Credit Agreement, then, by written notice to the
         Borrowers and the Agent (which notice shall be withdrawn whenever such
         circumstances no longer exist):

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<PAGE>

                           (A) such Lender may declare that Eurodollar Loans,
                  Foreign Currency Loans or Foreign Letters of Credit in the
                  affected currency or currencies, as the case may be, will not
                  thereafter (for the duration of such unlawfulness or
                  impracticability) be made or issued by such Lender under the
                  Credit Agreement, whereupon any request for a Eurodollar Loan,
                  Foreign Currency Loan or Foreign Letter of Credit in the
                  affected currency or currencies, as the case may be, shall, as
                  to such Lender only, (1) if such Loan is not a Foreign
                  Currency Loan, be deemed a request for a Base Rate Loan,
                  unless such declaration shall be subsequently withdrawn, (2)
                  if such Loan is a Foreign Currency Loan, be deemed to have
                  been withdrawn, unless such declaration shall be subsequently
                  withdrawn and (3) in the case of a Foreign Letter of Credit,
                  be deemed to have been withdrawn, unless such declaration
                  shall be subsequently withdrawn; and

                           (B) such Lender may require that all outstanding
                  Eurodollar Loans or Foreign Currency Loans in the affected
                  currency or currencies, as the case may be, made by it be (1)
                  if such Loans are not Foreign Currency Loans, converted to
                  Base Rate Loans, in which event all such Eurodollar Loans
                  shall be automatically converted to Base Rate Loans as of the
                  effective date of such notice as provided in paragraph (b)
                  below or (2) if such Loans are Foreign Currency Loans, repaid
                  immediately, in which event all such Foreign Currency Loans in
                  the affected currency or currencies shall be required to be
                  repaid in full by Hunt Europe or Hunt BV, as applicable, as of
                  the effective date of such notice as provided in paragraph (b)
                  below.

               (b) If any such conversion of a Eurodollar Loan occurs on a day
         which is not the last day of the then current Interest Period with
         respect thereto, the affected Borrower(s) shall pay to such Lender such
         amounts, if any, as may be required pursuant to Section 3.11.

         3.9   Requirements of Law.

         If the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof applicable to any Lender, or compliance by
any Lender with any request or directive (whether or not having the force of
law) from any central bank or other Governmental Authority, in each case made
subsequent to the Closing Date (or, if later, the date on which such Lender
becomes a Lender):

               (a) shall subject such Lender to any tax of any kind whatsoever
         with respect to any Letter of Credit, any Eurodollar Loans made by it
         or its obligation to make Eurodollar Loans, or change the basis of
         taxation of payments to such Lender in respect thereof (except for
         Non-Excluded Taxes covered by Section 3.10 (including Non-Excluded
         Taxes imposed solely by reason of any failure of such Lender to comply
         with its obligations under Section 3.10(b)) and changes in taxes
         measured by or imposed upon the overall net income, or franchise tax
         (imposed in lieu of such net income tax), of such Lender or its
         applicable lending office, branch, or any affiliate thereof);

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

               (c) shall impose on such Lender any other condition (excluding
         any tax of any kind whatsoever);

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans or issuing or participating in
Letters of Credit or to reduce any amount receivable under the Credit Agreement
in respect thereof, then, in any such case, upon notice to the applicable
Borrower from such Lender, through the Agent, in accordance therewith, the
applicable Borrower shall be obligated to promptly pay such Lender, upon its
demand, any additional amounts necessary to compensate such Lender for such
increased cost or reduced amount receivable, provided that, in any such case,
Hunt may elect to convert the Revolving Loans which are Eurodollar Loans and
made by such Lender under the Credit Agreement to Base Rate Loans by giving the
Agent at least one Business Day's notice of such election, in which case Hunt
shall promptly pay to such Lender, upon demand, without duplication, such
amounts, if any, as may be required pursuant to Section 3.11. If any Lender
becomes entitled to claim any additional amounts pursuant to this subsection, it
shall provide prompt notice thereof to the applicable Borrower, through the
Agent, certifying (x) that one of the events described in this paragraph (a) has
occurred and describing in reasonable detail the nature of such event, (y) as to
the increased cost or reduced amount resulting from such event and (z) as to the
additional amount demanded by such Lender and a reasonably detailed explanation
of the calculation thereof. Such a certificate as to any additional amounts
payable pursuant to this subsection submitted by such Lender, through the Agent,
to a Borrower shall be conclusive and binding on the parties hereto in the
absence of manifest error. This covenant shall survive the termination of the
Credit Agreement and the payment of the Loans and all other amounts payable
under the Credit Agreement.

         3.10  Taxes.

               (a) Except as provided below in this subsection, all payments
         made by a Borrower under the Credit Agreement shall be made free and
         clear of, and without deduction or withholding for or on account of,
         any present or future income, stamp or other taxes, levies, imposts,
         duties, charges, fees, deductions or withholdings, now or after the
         Closing Date imposed, levied, collected, withheld or assessed by any
         court, or governmental body, agency or other official, excluding taxes
         measured by or imposed upon the overall net income of any Lender or its
         applicable lending office, or any branch or affiliate thereof, and all
         franchise taxes, branch taxes, taxes on doing business or taxes on the
         overall capital or net worth of any Lender or its applicable lending
         office, or any branch or affiliate thereof, in each case imposed in
         lieu of net income taxes, imposed: (i) by the jurisdiction under the
         laws of which such Lender, applicable lending office, branch or
         affiliate is organized or is located, or in which its principal
         executive office is located, or any nation within which such
         jurisdiction is located or any political subdivision thereof; or (ii)

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         by reason of any connection between the jurisdiction imposing such tax
         and such Lender, applicable lending office, branch or affiliate other
         than a connection arising solely from such Lender having executed,
         delivered or performed its obligations, or received payment under or
         enforced, the Credit Agreement. If any such non-excluded taxes, levies,
         imposts, duties, charges, fees, deductions or withholdings
         ("Non-Excluded Taxes") are required to be withheld from any amounts
         payable to the Agent or any Lender under the Credit Agreement, (A) the
         amounts so payable to the Agent or such Lender shall be increased to
         the extent necessary to yield to the Agent or such Lender (after
         payment of all Non-Excluded Taxes) interest or any such other amounts
         payable under the Credit Agreement at the rates or in the amounts
         specified in the Credit Agreement, provided, however, that each
         Borrower shall be entitled to deduct and withhold any Non-Excluded
         Taxes and shall not be required to increase any such amounts payable to
         any Lender that is not organized under the laws of the United States of
         America or a state thereof if such Lender fails to comply with the
         requirements of paragraph (b) of this subsection whenever any
         Non-Excluded Taxes are payable by a Borrower, and (B) as promptly as
         possible thereafter the applicable Borrower shall send to the Agent for
         its own account or for the account of such Lender, as the case may be,
         a certified copy of an original official receipt received by such
         Borrower showing payment thereof. If a Borrower fails to pay any
         Non-Excluded Taxes when due to the appropriate taxing authority or
         fails to remit to the Agent the required receipts or other required
         documentary evidence, such Borrower shall indemnify the Agent and the
         Lenders for any incremental taxes, interest or penalties that may
         become payable by the Agent or any Lender as a result of any such
         failure. The agreements in this subsection shall survive the
         termination of the Credit Agreement and the payment of the Loans and
         all other amounts payable under the Credit Agreement.

               (b) Each Lender that is not incorporated under the laws of the
         United States of America or a state thereof shall:

                           (X)(i) on or before the date of any payment by a
                  Borrower under the Credit Agreement to such Lender, deliver to
                  Hunt and the Agent (A) two (2) duly completed copies of United
                  States Internal Revenue Service Form 1001 or 4224, or
                  successor applicable form, as the case may be, certifying that
                  it is entitled to receive payments under the Credit Agreement
                  without deduction or withholding of any United States federal
                  income taxes and (B) an Internal Revenue Service Form W-8 or
                  W-9, or successor applicable form, as the case may be,
                  certifying that it is entitled to an exemption from United
                  States backup withholding tax;

                              (ii) deliver to Hunt and the Agent two (2) further
                  copies of any such form or certification on or before the date
                  that any such form or certification expires or becomes
                  obsolete and after the occurrence of any event requiring a
                  change in the most recent form previously delivered by it to
                  Hunt; and

                              (iii) obtain such extensions of time for filing
                  and complete such forms or certifications as may reasonably be
                  requested by Hunt or the Agent; or

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               (Y) in the case of any such Lender that is not a "bank" within
         the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (i)
         represent to Hunt (for the benefit of Hunt and the Agent) that it is
         not a bank within the meaning of Section 881(c)(3)(A) of the Internal
         Revenue Code, (ii) agree to furnish to Hunt on or before the date of
         any payment by Hunt, with a copy to the Agent two (2) accurate and
         complete original signed copies of Internal Revenue Service Form W-8,
         or successor applicable form certifying to such Lender's legal
         entitlement at the date of such certificate to an exemption from U.S.
         withholding tax under the provisions of Section 881(c) of the Internal
         Revenue Code with respect to payments to be made under the Credit
         Agreement (and to deliver to Hunt and the Agent two (2) further copies
         of such form on or before the date it expires or becomes obsolete and
         after the occurrence of any event requiring a change in the most
         recently provided form and, if necessary, obtain any extensions of time
         reasonably requested by Hunt or the Agent for filing and completing
         such forms), and (iii) agree, to the extent legally entitled to do so,
         upon reasonable request by Hunt, to provide to Hunt (for the benefit of
         Hunt and the Agent) such other forms as may be reasonably required in
         order to establish the legal entitlement of such Lender to an exemption
         from withholding with respect to payments under the Credit Agreement;

         unless in any such case any change in treaty, law or regulation has
         occurred after the date such Person becomes a Lender under the Credit
         Agreement which renders all such forms inapplicable or which would
         prevent such Lender from duly completing and delivering any such form
         with respect to it and such Lender so advises Hunt and the Agent.

               (c) Each Lender shall, as soon as is reasonably practicable after
         the Closing Date, file a form FD 13 with the United States Internal
         Revenue Service in relation to payments made or to be made by Hunt
         Europe or Hunt BV under this Credit Agreement. If the United States
         Internal Revenue Service determines that the form FD 13 filed by such
         Lender does not establish that the Lender is entitled to receive
         payments made by Hunt Europe or Hunt BV under this Credit Agreement as
         at the date of delivery thereof without deduction or withholding of
         United Kingdom withholding taxes or, if the UK Inland Revenue requires
         proof of such entitlement, such Lender shall, within forty-five (45)
         days after a written request from Hunt Europe or Hunt BV, offer such
         reasonable assistance as Hunt Europe or Hunt BV may request in order to
         establish such Lender's entitlement (if any) to receive payments made
         by Hunt Europe or Hunt BV under this Credit Agreement without deduction
         or withholding of United Kingdom withholding taxes. Neither Hunt Europe
         nor Hunt BV shall be required to pay any amounts to any Lender in
         respect of any deduction or withholding of United Kingdom withholding
         taxes otherwise payable under this Section 3.10 (and Hunt Europe and
         Hunt BV, if required by law to do so, shall be entitled to withhold
         such amounts and pay such amounts to the government of the United
         Kingdom) if the obligation to pay such additional amounts would not
         have arisen but for a failure by such Lender to provide Hunt Europe or
         Hunt BV with the requested forms or other reasonable assistance.

               (d) Each Lender agrees to make a good faith effort to minimize
         any Non-Excluded Taxes by making, funding or maintaining its Foreign
         Currency Loans through another lending office located in another
         jurisdiction so long as the making, funding or maintenance of such
         Foreign Currency Loans through such other office does not, in the
         reasonable judgment of such Lender, materially affect such Lender;

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<PAGE>

         provided that any Lender which is unable or unwilling to fund its
         Foreign Currency Loans through a branch of such Lender in the United
         Kingdom will so notify the Borrowers.

               (e) Each Person that shall become a Lender or a participant of a
         Lender pursuant to subsection 11.3 shall, upon the effectiveness of the
         related transfer, be required to provide all of the forms,
         certifications and statements required pursuant to this subsection,
         provided that in the case of a participant of a Lender the obligations
         of such participant of a Lender pursuant to subsection (b) shall be
         determined as if the participant of a Lender were a Lender except that
         such participant of a Lender shall furnish all such required forms,
         certifications and statements to the Lender from which the related
         participation shall have been purchased.

         3.11  Indemnity.

         Hunt promises to indemnify each Lender and to hold each Lender harmless
from any loss or expense which such Lender may sustain or incur (other than
through such Lender's gross negligence or willful misconduct) as a consequence
of (a) default by a Borrower in making a borrowing of, conversion into or
continuation of Eurodollar Loans or Quoted Rate Swingline Loans after such
Borrower has given a notice requesting the same in accordance with the
provisions of the Credit Agreement, (b) default by a Borrower in making any
prepayment of a Eurodollar Loan or Quoted Rate Swingline Loan after such
Borrower has given a notice thereof in accordance with the provisions of the
Credit Agreement or (c) the making by a Borrower of a prepayment of Eurodollar
Loans or Quoted Rate Swingline Loans on a day which is not the last day of an
Interest Period with respect thereto. With respect to Eurodollar Loans, such
indemnification may include an amount equal to the excess, if any, of (i) the
amount of interest which would have accrued on the amount so prepaid, or not so
borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of
the applicable Interest Period (or, in the case of a failure to borrow, convert
or continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Eurodollar
Loans provided for in the Credit Agreement(excluding, however, the Applicable
Margin included therein, if any) over (ii) the amount of interest (as reasonably
determined by such Lender) which would have accrued to such Lender on such
amount by placing such amount on deposit for a comparable period with leading
banks in the interbank Eurodollar market. The covenants of Hunt set forth in
this Section 3.11 shall survive the termination of the Credit Agreement and the
payment of the Loans and all other amounts payable under the Credit Agreement.

         3.12  Pro Rata Treatment.

         Except to the extent otherwise provided in the Credit Agreement:

               (a) Loans. Each Loan, each payment or prepayment of principal of
         any Loan or reimbursement obligations arising from drawings under
         Letters of Credit, each payment of interest on the Loans or
         reimbursement obligations arising from drawings under Letters of
         Credit, each payment of Unused Fees, each payment of the Standby Letter
         of Credit Fee, each payment of the Trade Letter of Credit Fee, each
         reduction of the Revolving Committed Amount and each conversion or

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         extension of any Loan, shall be allocated pro rata among the Lenders in
         accordance with the respective principal amounts of their outstanding
         Loans and Participation Interests. With respect to Competitive Loans,
         if Hunt fails to specify the particular Competitive Loan or Loans as to
         which any payment or other amount should be applied and it is not
         otherwise clear as to the particular Competitive Loan or Loans to which
         such payment or other amounts relate, or any such payment or other
         amount is to be applied to Competitive Loans without regard to any such
         direction by Hunt, then each payment or prepayment of principal on
         Competitive Loans and each payment of interest or other amount on or in
         respect of Competitive Loans, shall be allocated pro rata among the
         relevant Competitive Loan Lenders in accordance with the then
         outstanding amounts of their respective Competitive Loans.

               (b) Advances. Unless the Agent shall have been notified in
         writing by any Lender prior to a borrowing that such Lender will not
         make the amount that would constitute its Commitment Percentage of such
         borrowing available to the Agent, the Agent may assume that such Lender
         is making such amount available to the Agent, and the Agent may, in
         reliance upon such assumption, make available to the appropriate
         Borrower a corresponding amount. If such amount is not made available
         to the Agent by such Lender within the time period specified therefor
         under the Credit Agreement, such Lender shall pay to the Agent, on
         demand, such amount with interest thereon at a rate equal to the
         Federal Funds Rate (or, in the case of a Foreign Currency Loan, the
         Interim Foreign Currency Rate) for the period until such Lender makes
         such amount immediately available to the Agent. A certificate of the
         Agent submitted to any Lender with respect to any amounts owing under
         this subsection shall be conclusive in the absence of manifest error.
         If such Lender's Commitment Percentage of such borrowing is not made
         available to the Agent by such Lender within two Business Days of the
         date of the related borrowing, (i) the Agent shall notify the
         appropriate Borrower of the failure of such Lender to make such amount
         available to the Agent and the Agent shall also be entitled to recover
         such amount with interest thereon at the rate per annum applicable to
         Base Rate Loans under the Credit Agreement (except in the case of any
         Foreign Currency Loan, in which case, at the rate per annum applicable
         to Foreign Currency Loans), on demand, from the appropriate Borrower
         and (ii) then the applicable Borrower may, without waiving any rights
         it may have against such Lender, borrow a like amount on an unsecured
         basis from any commercial bank for a period ending on the date upon
         which such Lender does in fact make such borrowing available, provided
         that at the time such borrowing is made and at all times while such
         amount is outstanding the applicable Borrower would be permitted to
         borrow such amount pursuant to Section 2.1 or Section 2.5, as
         applicable.

         3.13  Sharing of Payments.

         The Lenders agree among themselves that, in the event that any Lender
shall obtain payment in respect of any Loan, LOC Obligations or any other
obligation owing to such Lender under the Credit Agreement through the exercise
of a right of setoff, banker's lien or counterclaim, or pursuant to a secured
claim under Section 506 of Title 11 of the United States Code or other security
or interest arising from, or in lieu of, such secured claim, received by such

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Lender under any applicable bankruptcy, insolvency or other similar law or
otherwise, or by any other means, in excess of its pro rata share of such
payment as provided for in the Credit Agreement, such Lender shall promptly
purchase from the other Lenders a participation in such Loans, LOC Obligations
and other obligations in such amounts, and make such other adjustments from time
to time, as shall be equitable to the end that all Lenders share such payment in
accordance with their respective ratable shares as provided for in the Credit
Agreement. The Lenders further agree among themselves that if payment to a
Lender obtained by such Lender through the exercise of a right of setoff,
banker's lien, counterclaim or other event as aforesaid shall be rescinded or
must otherwise be restored, each Lender which shall have shared the benefit of
such payment shall, by repurchase of a participation theretofore sold, return
its share of that benefit (together with its share of any accrued interest
payable with respect thereto) to each Lender whose payment shall have been
rescinded or otherwise restored. The Borrowers agree that any Lender so
purchasing such a participation may, to the fullest extent permitted by law,
exercise all rights of payment, including setoff, banker's lien or counterclaim,
with respect to such participation as fully as if such Lender were a holder of
such Loan, LOC Obligations or other obligation in the amount of such
participation. Except as otherwise expressly provided in the Credit Agreement,
if any Lender or the Agent shall fail to remit to the Agent or any other Lender
an amount payable by such Lender or the Agent to the Agent or such other Lender
pursuant to the Credit Agreement on the date when such amount is due, such
payments shall be made together with interest thereon for each date from the
date such amount is due until the date such amount is paid to the Agent or such
other Lender at a rate per annum equal to the Federal Funds Rate (or, in the
case of an Available Foreign Currency, the Interim Foreign Currency Rate). If
under any applicable bankruptcy, insolvency or other similar law, any Lender
receives a secured claim in lieu of a setoff to which this Section 3.13 applies,
such Lender shall, to the extent practicable, exercise its rights in respect of
such secured claim in a manner consistent with the rights of the Lenders under
this Section 3.13 to share in the benefits of any recovery on such secured
claim.

         3.14  Payments, Computations, Etc.

               (a) Currency of Payments. Each payment on account of an amount
         due from any Credit Party under the Credit Agreement or under any other
         Credit Document shall be made by such Credit Party to the Agent for the
         pro rata account of the Lenders entitled to receive such payment as
         provided in the Credit Agreement in the currency in which such amount
         is denominated. Without limiting the terms of the preceding sentence,
         accrued interest on any Foreign Currency Loans and all fees owing with
         respect to Foreign Letters of Credit shall be payable in the same
         Available Foreign Currency as such Loans or Foreign Letters of Credit.
         Upon request, the Agent will give the Credit Parties a statement
         showing the computation used in calculating such amount, which
         statement shall be conclusive in the absence of manifest error. The
         obligation of each Credit Party to make each payment on account of such
         amount in the currency in which such amount is denominated shall not be
         discharged or satisfied by any tender, or any recovery pursuant to any
         judgment, which is expressed in or converted into any other currency,
         except to the extent such tender or recovery shall result in the actual
         receipt by the Agent of the full amount in the appropriate currency
         payable under the Credit Agreement. Each Credit Party agrees that its
         obligation to make each payment on account of such amount in the

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         currency in which such amount is denominated shall be enforceable as an
         additional or alternative claim for recovery in such currency of the
         amount (if any) by which such actual receipt shall fall short of the
         full amount of such currency payable under the Credit Agreement, and
         shall not be affected by judgment being obtained for such amount.

               (b) Place and Manner of Payments. Except as otherwise
         specifically provided in the Credit Agreement, all payments under the
         Credit Agreement shall be made to the Agent in immediately available
         funds, without offset, deduction, counterclaim or withholding of any
         kind, prior to 2:00 P.M., local time in the place where such payment is
         required to be made pursuant to this subsection (b), on the date due at
         the office of the Agent: at 101 N. Tryon Street, Independence Center,
         15th Floor, NC1-001-15-01, Charlotte, North Carolina 28255 with respect
         to payments in Dollars; at Bank of America, N.A., Account No.
         600890661010 - Swift code BOFAGB22 with respect to payments in British
         Pounds Sterling; at Bank of America, N.A., Account No. 601090661024 -
         Swift code BOFAFRPP with respect to payments in French Francs; at Bank
         of America, N.A., Account No. 601990661059 - Swift code BOFADEFX, with
         respect to payments in Deutsche Marks; at Bank of America, N.A.,
         Account No. 954942/01/87 - Swift code BCITITMM, with respect to
         payments in Italian Lira; at Bank of America, N.A., Account No.
         3007504500 - Swift code DABADKKK, with respect to payments in Dutch
         Guilders; at Bank of America, N.A., Account No. 600896283016 - Swift
         code BOFAGB22, with respect to payments in euros, or at such other
         place as may be designated by the Agent to the Borrowers in writing.
         Payments received after such time shall be deemed to have been received
         on the next succeeding Business Day. The Agent may (but shall not be
         obligated to) debit the amount of any such payment which is not made by
         such time to any ordinary deposit account of the Borrowers maintained
         with the Agent (with notice to the Borrowers). Each Borrower shall, at
         the time it makes any payment under the Credit Agreement, specify to
         the Agent the Loans, LOC Obligations, Fees, interest or other amounts
         payable by such Borrower under the Credit Agreement to which such
         payment is to be applied (and in the event that it fails so to specify,
         or if such application would be inconsistent with the terms of the
         Credit Agreement, the Agent shall distribute such payment to the
         Lenders in such manner as the Agent may determine to be appropriate in
         respect of obligations owing by such Borrower under the Credit
         Agreement, subject to the terms of Section 3.12(a)). The Agent will
         distribute such payments to such Lenders, if any such payment is
         received prior to 12:00 Noon (Charlotte, North Carolina time) on a
         Business Day in like funds as received prior to the end of such
         Business Day and otherwise the Agent will distribute such payment to
         such Lenders on the next succeeding Business Day. Whenever any payment
         under the Credit Agreement shall be stated to be due on a day which is
         not a Business Day, the due date thereof shall be extended to the next
         succeeding Business Day (subject to accrual of interest and Fees for
         the period of such extension), except that in the case of Eurodollar
         Loans, if the extension would cause the payment to be made in the next
         following calendar month, then such payment shall instead be made on
         the next preceding Business Day. Except as expressly provided otherwise
         in the Credit Agreement, all computations of interest and fees shall be
         made on the basis of actual number of days elapsed over a year of 360
         days, except with respect to computation of interest on Foreign
         Currency Loans denominated in Pounds Sterling and Base Rate Loans which
         (unless the Base Rate is determined by reference to the Federal Funds
         Rate) shall be calculated based on a year of 365 or 366 days, as
         appropriate. Interest shall accrue from and include the date of
         borrowing, but exclude the date of payment.

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         3.15  Mandatory Assignment.

         In the event any Lender delivers to either Borrower any notice in
accordance with Section 3.6 or any Lender requests payment by any Borrower of
any additional amounts pursuant to Section 3.10, then, provided that no Default
or Event of Default has occurred and is continuing at such time, Hunt may, at
its own expense (such expense to include any transfer fee payable to the Agent
under Section 11.3(b)), and in its sole discretion require such Lender to
transfer and assign in whole or in part, without recourse (in accordance with
and subject to the terms and conditions of Section 11.3(b)), all or part of its
interests, rights and obligations under the Credit Agreement to an Eligible
Assignee which shall assume such assigned obligations, provided that (i) such
assignment shall not conflict with any law, rule or regulation or order of any
court or other Governmental Authority and (ii) the Borrowers or such assignee
shall have paid to the assigning Lender in immediately available funds the
principal of and interest accrued to the date of such payment on the Loans made
by it under the Credit Agreement and all other amounts owed to it under the
Credit Agreement.

                                    SECTION 4

                                    GUARANTY

         4.1   The Guarantee.

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

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

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         4.2   Obligations Unconditional.

         The obligations of the Guarantors under Section 4.1 are joint and
several, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Credit Documents, or any
other agreement or instrument referred to therein, or any substitution, release
or exchange of any other guarantee of or security for any of the Borrowers'
Obligations, and, to the fullest extent permitted by applicable law,
irrespective of any other circumstance whatsoever which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor,
it being the intent of this Section 4.2 that the obligations of the Guarantors
under the Credit Agreement shall be absolute and unconditional under any and all
circumstances. Each Guarantor agrees that such Guarantor shall have no right of
subrogation, indemnity, reimbursement or contribution against either Borrower or
any other Guarantor of the Borrowers' Obligations for amounts paid under this
Guaranty until such time as the Lenders have been paid in full, all Commitments
under the Credit Agreement have been terminated and no Person or Governmental
Authority shall have any right to request any return or reimbursement of funds
from the Lenders in connection with monies received under the Credit Documents.
Without limiting the generality of the foregoing, it is agreed that, to the
fullest extent permitted by law, the occurrence of any one or more of the
following shall not alter or impair the liability of any Guarantor under the
Credit Agreement which shall remain absolute and unconditional as described
above:

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

               (ii) any of the acts mentioned in any of the provisions of any of
         the Credit Documents or any other agreement or instrument referred to
         therein shall be done or omitted;

               (iii) the maturity of any of the Borrowers' Obligations shall be
         accelerated, or any of the Borrowers' Obligations shall be modified,
         supplemented or amended in any respect, or any right under any of the
         Credit Documents or any other agreement or instrument referred to
         therein shall be waived or any other guarantee of any of the Borrowers'
         Obligations or any security therefor shall be released or exchanged in
         whole or in part or otherwise dealt with;

               (iv) any Lien granted to, or in favor of, the Agent or any Lender
         or Lenders as security for any of the Borrowers' Obligations shall fail
         to attach or be perfected; or

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

With respect to its obligations under the Credit Agreement, each Guarantor
hereby expressly waives diligence, presentment, demand of payment, protest and
all notices whatsoever, and any requirement that the Agent or any Lender exhaust
any right, power or remedy or proceed against any Person under any of the Credit

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Documents or any other agreement or instrument referred to therein, or against
any other Person under any other guarantee of, or security for, any of the
Borrowers' Obligations.

         4.3   Reinstatement.

         The obligations of the Guarantors under this Section 4 shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Borrowers' Obligations is rescinded
or must be otherwise restored by any holder of any of the Borrowers'
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Guarantor agrees that it will indemnify
the Agent and each Lender on demand for all reasonable costs and expenses
(including, without limitation, fees and expenses of counsel) incurred by the
Agent or such Lender in connection with such rescission or restoration,
including any such costs and expenses incurred in defending against any claim
alleging that such payment constituted a preference, fraudulent transfer or
similar payment under any bankruptcy, insolvency or similar law.

         4.4   Certain Additional Waivers.

         Without limiting the generality of the provisions of this Section 4,
each Guarantor hereby specifically waives the benefits of N.C. Gen.
Stat.ss.ss.26-7 through 26-9, inclusive. Each Guarantor further agrees that such
Guarantor shall have no right of recourse to security for the Borrowers'
Obligations.

         4.5   Remedies.

         The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Agent and the Lenders, on the
other hand, the Borrowers' Obligations may be declared to be forthwith due and
payable as provided in Section 9.2 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section 9.2)
for purposes of Section 4.1 notwithstanding any stay, injunction or other
prohibition preventing such declaration (or preventing the Borrowers'
Obligations from becoming automatically due and payable) as against any other
Person and that, in the event of such declaration (or the Borrowers' Obligations
being deemed to have become automatically due and payable), the Borrowers'
Obligations (whether or not due and payable by any other Person) shall forthwith
become due and payable by the Guarantors for purposes of said Section 4.1.

         4.6   Rights of Contribution.

         The Guarantors hereby agree, as among themselves, that if any Guarantor
shall become an Excess Funding Guarantor (as defined below), each other
Guarantor shall, on demand of such Excess Funding Guarantor (but subject to the
next sentence hereof and to subsection (b) below), pay to such Excess Funding
Guarantor an amount equal to such Guarantor's Pro Rata Share (as defined below
and determined, for this purpose, without reference to the properties, assets,
liabilities and debts of such Excess Funding Guarantor) of such Excess Payment
(as defined below). The payment obligation of any Guarantor to any Excess
Funding Guarantor under this Section 4.6 shall be subordinate and subject in
right of payment to the prior payment in full of the obligations of such

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Guarantor under the other provisions of this Section 4, and such Excess Funding
Guarantor shall not exercise any right or remedy with respect to such excess
until payment and satisfaction in full of all of such obligations. For purposes
hereof, (i) "Excess Funding Guarantor" shall mean, in respect of any obligations
arising under the other provisions of this Section 4 (hereafter, the "Guaranteed
Obligations"), a Guarantor that has paid an amount in excess of its Pro Rata
Share of the Guaranteed Obligations; (ii) "Excess Payment" shall mean, in
respect of any Guaranteed Obligations, the amount paid by an Excess Funding
Guarantor in excess of its Pro Rata Share of such Guaranteed Obligations; and
(iii) "Pro Rata Share", for the purposes of this Section 4.6, shall mean, for
any Guarantor, the ratio (expressed as a percentage) of (a) the amount by which
the aggregate present fair saleable value of all of its assets and properties
exceeds the amount of all debts and liabilities of such Guarantor (including
contingent, subordinated, unmatured, and unliquidated liabilities, but excluding
the obligations of such Guarantor under the Credit Agreement) to (b) the amount
by which the aggregate present fair saleable value of all assets and other
properties of the applicable Borrower and all of the applicable Guarantors
exceeds the amount of all of the debts and liabilities (including contingent,
subordinated, unmatured, and unliquidated liabilities, but excluding the
obligations of such Borrower and Guarantors under the Credit Agreement) of such
Borrower and Guarantors, all as of the Closing Date (if any Guarantor becomes a
party hereto subsequent to the Closing Date, then for the purposes of this
Section 4.6 such subsequent Guarantor shall be deemed to have been a Guarantor
as of the Closing Date and the information pertaining to, and only pertaining
to, such Guarantor as of the date such Guarantor became a Guarantor shall be
deemed true as of the Closing Date).

         4.7   Continuing Guarantee.

         The guarantee in this Section 4 is a continuing guarantee, and shall
apply to all Borrowers' Obligations whenever arising.

                                    SECTION 5

                                   CONDITIONS

         5.1   Closing Conditions.

         The obligation of the Lenders to enter into this Credit Agreement and
to make the initial Loans or the Issuing Lender to issue the initial Letter of
Credit, whichever shall occur first, shall be subject to satisfaction of the
following conditions (in form and substance acceptable to the Lenders):

               (a) The Agent shall have received original counterparts of this
         Credit Agreement executed by each of the parties hereto;

               (b) The Agent shall have received all documents it may reasonably
         request relating to the existence and good standing of each of the
         Credit Parties, the corporate or other necessary authority for and the
         validity of the Credit Documents, and any other matters relevant
         thereto, all in form and substance reasonably satisfactory to the
         Agent;

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               (c) The Agent shall have received a certificate executed by the
         chief financial officer of Hunt as of the Closing Date stating that
         immediately after giving effect to this Credit Agreement and the other
         Credit Documents, (i) Hunt on a consolidated basis is Solvent, (ii) no
         Default or Event of Default exists and (iii) the representations and
         warranties set forth in Section 6 are true and correct in all material
         respects;

               (d) (i) The Agent shall have received a legal opinion of Drinker
               Biddle & Reath LLP, counsel for the Credit Parties, dated as of
               the Closing Date and in form and substance reasonably
               satisfactory to the Agent;

                   (ii) The Agent shall have received a legal opinion of special
               United Kingdom counsel for Hunt Europe, dated as of the Closing
               Date and in form and substance reasonably satisfactory to the
               Agent;

                   (iii) The Agent shall have received a legal opinion of
               special Netherlands counsel for Hunt BV, dated as of the Closing
               Date and in form and substance reasonably satisfactory to the
               Agent.

               (e) The Agent shall have received a certificate in form and
         substance satisfactory to the Agent executed by the chief financial
         officer of Hunt as of the Closing Date stating that (i) there does not
         exist any action, suit or proceeding, pending or, to the best knowledge
         of such Person, threatened, in which there is a reasonable possibility
         of an adverse decision, which would materially adversely affect the
         ability of the Credit Parties taken as a whole to perform their
         obligations under the Credit Documents or the ability of the Lenders to
         exercise their rights thereunder; (ii) none of the Domestic
         Subsidiaries of Hunt has any assets or liabilities as of November 28,
         1999 or any cash flows for the 12 month period ended as of November 28,
         1999 other than as set forth on a schedule attached to such
         certificate, except for (A) assets and cash flows of HGA, Hunt X-Acto
         and Hunt Holdings, (B) liabilities of HGA to trade creditors in an
         aggregate amount not exceeding $7,000,000, (C) liabilities of HGA to
         the Borrower in respect of intercompany loans and advances and (D)
         liabilities of Hunt Europe and Hunt BV to the Borrower in respect of
         intercompany loans and advances in an aggregate principal amount not to
         exceed $5,000,000; and (iii) immediately after giving effect to this
         Credit Agreement, the other Credit Documents and all other transactions
         contemplated by this Credit Agreement to occur on such date, (A) each
         of the Credit Parties is Solvent, (B) no Default or Event of Default
         exists and (C) the representations and warranties set forth in Section
         6 are true and correct in all material respects;

               (f) The Agent shall have received, for its own account and for
         the accounts of the Lenders, all fees and expenses required by this
         Credit Agreement or any other Credit Document to be paid on or before
         the Closing Date; and

               (g) The Agent shall have received such other documents,
         agreements or information which may be reasonably requested by the
         Agent.

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         5.2   Conditions to all Extensions of Credit.

         The obligations of each Lender to make, convert or extend any Loan and
of the Issuing Lender to issue or extend Letters of are subject to satisfaction
of the following conditions in addition to satisfaction of the conditions set
forth in Section 5.1:

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

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

                   (iii) There shall not have been commenced against either
               Borrower or any Guarantor an involuntary case under any
               applicable bankruptcy, insolvency or other similar law now or
               after the Closing Date in effect, or any case, proceeding or
               other action for the appointment of a receiver, liquidator,
               assignee, custodian, trustee, sequestrator (or similar official)
               of such Person or for any substantial part of its Property or for
               the winding up or liquidation of its affairs, and such
               involuntary case or other case, proceeding or other action shall
               remain undismissed, undischarged or unbonded;

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

                   (v) No material adverse change shall have occurred since
               November 28, 1999 in the condition (financial or otherwise),
               business, management or prospects of Hunt and its Subsidiaries
               taken as a whole; and

                   (vi) Immediately after giving effect to the making of such
               Loan (and the application of the proceeds thereof) or to the
               issuance of such Letter of Credit, as the case may be, (A) the
               sum of the aggregate principal amount of outstanding Revolving
               Loans plus Domestic LOC Obligations outstanding plus the
               aggregate principal amount of outstanding Competitive Loans plus
               the aggregate principal amount of outstanding Swingline Loans
               plus the Dollar Amount (as determined as of the most recent
               Determination Date) of the aggregate principal amount of
               outstanding Foreign Currency Loans plus the Dollar Amount (as
               determined as of the most recent Determination Date) of Foreign
               LOC Obligations outstanding shall not exceed the aggregate
               Revolving Committed Amount, (B) the sum of the Dollar Amount (as
               determined as of the most recent Determination Date) of the
               aggregate principal amount of outstanding Foreign Currency Loans
               plus the Dollar Amount (as determined as of the most recent
               Determination Date) of Foreign LOC Obligations outstanding shall
               not exceed the aggregate Foreign Currency Committed Amount and
               (C) the Domestic LOC Obligations shall not exceed the Domestic
               LOC Committed Amount.

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The delivery of each Notice of Borrowing, each Notice of Extension/Conversion
and each request for a Letter of Credit pursuant to Section 2.2(b) or Section
2.6(b) shall constitute a representation and warranty by the requesting Borrower
of the correctness of the matters specified in subsections (ii), (iii), (iv),
(v) and (vi) above.

                                    SECTION 6

                         REPRESENTATIONS AND WARRANTIES

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

         6.1   Financial Condition.

               (a) The audited consolidated balance sheet of Hunt and its
         consolidated Subsidiaries as of November 28, 1999 and the audited
         consolidated statements of earnings and statements of cash flows for
         the years ended November 27, 1998 and November 28, 1999 have heretofore
         been furnished to each Lender. Such financial statements (including the
         notes thereto) (i) have been audited by PricewaterhouseCoopers, (ii)
         have been prepared in accordance with GAAP consistently, applied
         throughout the periods covered thereby and (iii) present fairly in all
         material respects (on the basis disclosed in the footnotes to such
         financial statements) the consolidated financial position, results of
         operations and cash flows of Hunt and its consolidated Subsidiaries as
         of such date and for such periods. The unaudited interim balance sheets
         of Hunt and its consolidated Subsidiaries as at the end of, and the
         related unaudited interim statements of earnings and of cash flows for,
         each fiscal quarterly period ended after November 28, 1999 and prior to
         the Closing Date have heretofore been furnished to each Lender. Such
         interim financial statements for each such quarterly period, (i) have
         been prepared in accordance with the requirements of the Securities and
         Exchange Commission for Form 10-Q and (ii) present fairly in all
         material respects (on the basis disclosed in the footnotes to such
         financial statements) the consolidated financial position, results of
         operations and cash flows of Hunt and its consolidated Subsidiaries as
         of such date and for such periods. During the period from November 28,
         1999 to and including the Closing Date, there has been no sale,
         transfer or other disposition by Hunt or any of its Subsidiaries of any
         material part of the business or property of Hunt and its consolidated
         Subsidiaries, taken as a whole, and no purchase or other acquisition by
         any of them of any business or property (including any capital stock of
         any other person) material in relation to the consolidated financial
         condition of Hunt and its consolidated Subsidiaries, taken as a whole,
         in each case, which, is not reflected in the foregoing financial
         statements or in the notes thereto and has not otherwise been disclosed
         in writing to the Lenders on or prior to the Closing Date.

               (b) The projected balance sheets and income statements of Hunt
         and its consolidated Subsidiaries delivered to each Lender pursuant to
         Section 7.1(d), are based upon reasonable assumptions made known to the
         Lenders and upon information not known to be incorrect or misleading in
         any material respect.

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         6.2   No Change.

         Since November 28, 1999, (a) there has been no development or event
relating to or affecting Hunt or any of its Subsidiaries which has had or would
be reasonably expected to have a Material Adverse Effect and (b) except as
permitted under the Credit Agreement, no dividends or other distributions have
been declared, paid or made upon the capital stock or other equity interest in
Hunt or any of its Subsidiaries nor, except as otherwise permitted under the
Credit Agreement, has any of the capital stock or other equity interest in Hunt
or any of its Subsidiaries been redeemed, retired, purchased or otherwise
acquired for value by such Person.

         6.3   Organization; Existence; Compliance with Law.

         Hunt and each of its Subsidiaries (a) is a corporation duly organized,
validly existing and is in good standing under the laws of the jurisdiction of
its incorporation or organization, (b) has the corporate or other necessary
power and authority, and the legal right, to own and operate its property, to
lease the property it operates as lessee and to conduct the business in which it
is currently engaged, except to the extent that the failure to have such legal
right would not be reasonably expected to have a Material Adverse Effect, (c) is
duly qualified as a foreign entity and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of property or the conduct
of its business requires such qualification, other than in such jurisdictions
where the failure to be so qualified and in good standing would not be
reasonably expected to have a Material Adverse Effect, and (d) is in compliance
with all material Requirements of Law, except to the extent that the failure to
comply therewith would not, in the aggregate, be reasonably expected to have a
Material Adverse Effect.

         6.4   Power; Authorization; Enforceable Obligations.

         Each of the Credit Parties has the corporate or other necessary power
and authority, and the legal right, to make, deliver and perform the Credit
Documents to which it is a party, and, in the case of the Borrowers, to borrow
under the Credit Agreement, and has taken all necessary corporate action to
authorize the borrowings on the terms and conditions of the Credit Agreement and
to authorize the execution, delivery and performance of the Credit Documents to
which it is a party. As of the Closing Date, no consent or authorization of,
filing with, notice to or other similar act by or in respect of, any
Governmental Authority or any other Person is required to be obtained or made by
or on behalf of any Credit Party in connection with the borrowings under the
Credit Agreement or with the execution, delivery, performance, validity or
enforceability of the Credit Documents to which such Credit Party is a party.
This Credit Agreement and each other Credit Document to which any Credit Party
is a party have been duly executed and delivered on behalf of the Credit
Parties. Each of this Credit Agreement and the other Credit Document to which
any Credit Party is a party constitutes a legal, valid and binding obligation of
such Credit Party enforceable against such party in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

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<PAGE>

         6.5   No Legal Bar.

         The execution, delivery and performance of the Credit Documents by the
Credit Parties, the borrowings under the Credit Agreement and the use of the
proceeds thereof (a) will not violate any Requirement of Law or contractual
obligation of Hunt or any of its Subsidiaries in any respect that would
reasonably be expected to have a Material Adverse Effect, (b) will not result
in, or require, the creation or imposition of any Lien on any of the properties
or revenues of Hunt or any of its Subsidiaries pursuant to any such Requirement
of Law or contractual obligation and (c) will not violate or conflict with any
provision of any Credit Party's articles of incorporation or by-laws.

         6.6   No Material Litigation.

         No litigation, investigation or proceeding of or before any arbitrator
or Governmental Authority is pending or, to the best knowledge of the Credit
Parties, threatened by or against Hunt or any of its Subsidiaries or against any
of their respective properties or revenues which (a) relates to any of the
Credit Documents or any of the transactions contemplated thereby or (b) would be
reasonably expected to have a Material Adverse Effect.

         6.7   No Default.

         Neither Hunt nor any of its Subsidiaries is in default under or with
respect to any of its contractual obligations in any respect which would be
reasonably expected to have a Material Adverse Effect. No Default or Event of
Default has occurred and is continuing.

         6.8   Ownership of Property; Liens.

         Each of Hunt and its Subsidiaries has good record and marketable title
in fee simple to, or a valid leasehold interest in, all its material real
property, and good title to, or a valid leasehold interest in, all its other
material property, and none of such property is subject to any Lien, except for
Permitted Liens.

         6.9   Intellectual Property.

         Each of Hunt and its Subsidiaries owns, or has the legal right to use,
all United States trademarks, tradenames, copyrights, technology, know-how and
processes necessary for each of them to conduct its business as currently
conducted (the "Intellectual Property") except for those the failure to own or
have such legal right to use would not be reasonably expected to have a Material
Adverse Effect. Except as provided on Schedule 6.9 (which was provided by Hunt
on and as of the Closing Date), no claim has been asserted and is pending by any
Person challenging or questioning the use of any such Intellectual Property or
the validity or effectiveness of any such Intellectual Property, nor does any
Credit Party know of any such claim, and the use of such Intellectual Property
by Hunt or any of its Subsidiaries does not infringe on the rights of any
Person, except for such claims and infringements that in the aggregate, would
not be reasonably expected to have a Material Adverse Effect.

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         6.10  No Burdensome Restrictions.

         Except as previously disclosed in writing to the Lenders on or prior to
the Closing Date, no Requirement of Law or contractual obligation of Hunt or any
of its Subsidiaries would be reasonably expected to have a Material Adverse
Effect.

         6.11  Taxes.

               (a) Each of Hunt and its Subsidiaries has filed or caused to be
         filed all United States federal income tax returns and all other
         material tax returns which, to the best knowledge of the Credit
         Parties, are required to be filed and has paid (a) all taxes shown to
         be due and payable on said returns or (b) all taxes shown to be due and
         payable on any assessments of which it has received notice made against
         it or any of its property and all other taxes, fees or other charges
         imposed on it or any of its property by any Governmental Authority
         (other than any (i) taxes, fees or other charges with respect to which
         the failure to pay, in the aggregate, would not have a Material Adverse
         Effect or (ii) taxes, fees or other charges the amount or validity of
         which are currently being contested and with respect to which reserves
         in conformity with GAAP have been provided on the books of such
         Person), and no tax Lien has been filed, and, to the best knowledge of
         the Credit Parties, no claim is being asserted, with respect to any
         such tax, fee or other charge.

               (b) There are no income, stamp or other taxes, levies, imposts,
         duties, charges, fees, deductions or withholdings, imposed, levied,
         collected, withheld or assessed by any English court, or governmental
         body, agency or other official either (i) on or by virtue of the
         execution or delivery of the Credit Agreement or any other Credit
         Document or (ii) on any payment to be made by the Borrowers under the
         Credit Agreement or any other Credit Document.

         6.12  ERISA.

         Except as set forth in Schedule 6.12 (which was provided by Hunt on and
as of the Closing Date) or as could not reasonably be expected to have a
Material Adverse Effect:

               (a) During the five-year period prior to the date on which this
         representation is made or deemed made: (i) no Termination Event has
         occurred, and, to the best knowledge of the Credit Parties, no event or
         condition has occurred or exists as a result of which any Termination
         Event could reasonably be expected to occur, with respect to any Plan
         which is subject to Title IV of ERISA; (ii) no "accumulated funding
         deficiency," as such term is defined in Section 302 of ERISA and
         Section 412 of the Code, whether or not waived, has occurred with
         respect to any Plan; (iii) each Plan has been maintained, operated, and
         funded in material compliance with its own terms and with the
         applicable provisions of ERISA, the Code, and any other applicable
         federal or state laws; and (iv) no lien in favor of the PBGC or a Plan
         has arisen or is reasonably likely to arise on account of any Plan.

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               (b) The actuarial present value of all "benefit liabilities"
         under each Single Employer Plan (determined within the meaning of
         Section 401(a)(2) of the Code, utilizing the actuarial assumptions used
         to fund such Plans), whether or not vested, did not, as of the last
         annual valuation date prior to the date on which this representation is
         made or deemed made, exceed the current value of the assets of such
         Plan allocable to such accrued liabilities.

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

               (d) No prohibited transaction (within the meaning of Section 406
         of ERISA or Section 4975 of the Code) or breach of fiduciary
         responsibility has occurred with respect to a Plan which has subjected
         or may subject Hunt, any of the Subsidiaries of Hunt or any ERISA
         Affiliate to any liability under Sections 406, 409, 502(i), or 502(l)
         of ERISA or Section 4975 of the Code, or under any agreement or other
         instrument pursuant to which Hunt, any of the Subsidiaries of Hunt or
         any ERISA Affiliate has agreed or is required to indemnify any person
         against any such liability.

               (e) Each Plan which is a welfare plan (as defined in Section 3(1)
         of ERISA) to which Sections 601-609 of ERISA and Section 4980B of the
         Code apply has been administered in compliance in all material respects
         with such sections.

               (f) Neither the execution and delivery of this Agreement nor the
         consummation of the financing transactions contemplated thereunder will
         involve any transaction which is subject to the prohibitions of Section
         406 of ERISA or in connection with which a tax could be imposed
         pursuant to Section 4975 of the Code. The representation by the Credit
         Parties in the preceding sentence is made in reliance upon and subject
         to the accuracy of the Lenders' representation in Section 11.17 with
         respect to their source of funds and is subject, in the event that the
         source of the funds used by the Lenders in connection with this
         transaction is an insurance company's general asset account, to the
         continued validity of Department of Labor Interpretative Bulletin 75-2,
         29 C.F.R. ss. 2509.75-2(b) (November 13, 1986) or the issuance of any
         other similar relief or prohibited transaction exemption, to the effect
         that assets in an insurance company's general asset account do not
         constitute assets of an "employee benefit plan" within the meaning of
         Section 3(3) of ERISA or a "plan" within the meaning of Section
         4975(e)(1) of the Code.

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         6.13  Governmental Regulations, Etc.

               (a) No part of the proceeds of the Loans will be used, directly
         or indirectly, for the purpose of purchasing or carrying any "margin
         stock" within the meaning of Regulation U, or for the purpose of
         purchasing or carrying or trading in any securities. If requested by
         any Lender or the Agent, each of the Borrowers will furnish to the
         Agent and each Lender a statement to the foregoing effect in conformity
         with the requirements of FR Form U-1 referred to in said Regulation U.
         No indebtedness being reduced or retired out of the proceeds of the
         Loans was or will be incurred for the purpose of purchasing or carrying
         any margin stock within the meaning of Regulation U or any "margin
         security" within the meaning of Regulation T. "Margin stock" within the
         meanings of Regulation U does not constitute more than 25% of the value
         of the consolidated assets of Hunt and its Subsidiaries, more than 25%
         of the value of the consolidated assets of Hunt Europe and its
         Subsidiaries or more than 25% of the value of the consolidated assets
         of Hunt BV and its Subsidiaries. None of the transactions contemplated
         by the Credit Agreement (including, without limitation, the direct or
         indirect use of the proceeds of the Loans) will violate or result in a
         violation of the Securities Act of 1933, as amended, or the Securities
         Exchange Act of 1934, as amended, or regulations issued pursuant
         thereto, or Regulation T, U or X.

               (b) Neither Hunt nor any of its Subsidiaries is subject to
         regulation under the Public Utility Holding Company Act of 1935, the
         Federal Power Act or the Investment Company Act of 1940, each as
         amended. In addition, neither Hunt nor any of its Subsidiaries is (i)
         an "investment company" registered or required to be registered under
         the Investment Company Act of 1940, as amended, and is not controlled
         by such a company, or (ii) a "holding company", or a "subsidiary
         company" of a "holding company", or an "affiliate" of a "holding
         company" or of a "subsidiary" of a "holding company", within the
         meaning of the Public Utility Holding Company Act of 1935, as amended.

               (c) As of the Closing Date, no director, executive officer or
         principal shareholder of Hunt or any of its Subsidiaries is a director,
         executive officer or principal shareholder of any Lender. For the
         purposes hereof the terms "director", "executive officer" and
         "principal shareholder" (when used with reference to any Lender) have
         the respective meanings assigned thereto in Regulation O issued by the
         Board of Governors of the Federal Reserve System.

               (d) Each of Hunt and its Subsidiaries has obtained all material
         licenses, permits, franchises or other governmental authorizations
         necessary to the ownership of its respective Property and to the
         conduct of its business.

               (e) Neither Hunt nor any of its Subsidiaries is in violation of
         any applicable statute, regulation or ordinance of the United States of
         America, or of any state, city, town, municipality, county or any other
         jurisdiction, or of any agency thereof (including without limitation,
         environmental laws and regulations), which violation could reasonably
         be expected to have a Material Adverse Effect.

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               (f) Each of Hunt and its Subsidiaries is current with all
         material reports and documents, if any, required to be filed with any
         state or federal securities commission or similar agency and is in full
         compliance in all material respects with all applicable rules and
         regulations of such commissions.

         6.14  Subsidiaries.

         Schedule 6.14 sets forth all the Subsidiaries of Hunt at the Closing
Date, the jurisdiction of their incorporation and the direct or indirect
ownership interest of Hunt therein.

         6.15  Purpose of Loans and Letters of Credit.

         The proceeds of the Loans (other than the Foreign Currency Loans) shall
be used solely by Hunt (i) to refinance certain existing Indebtedness of Hunt,
(ii) for the working capital and general corporate purposes of Hunt and its
Domestic Subsidiaries and (iii) to finance acquisitions by Hunt. The proceeds of
the Foreign Currency Loans requested by Hunt Europe shall be used solely by Hunt
Europe (i) to refinance certain existing Indebtedness of Hunt Europe, (ii) for
working capital and general corporate purposes of Hunt Europe and (iii) to
finance acquisitions by Hunt Europe. The proceeds of the Foreign Currency Loans
requested by Hunt BV shall be used solely by Hunt BV (i) to refinance certain
existing Indebtedness of Hunt BV, (ii) for working capital and general corporate
purposes of Hunt BV and (iii) to finance acquisitions by Hunt BV. The Letters of
Credit shall be used only for or in connection with appeal bonds, reimbursement
obligations arising in connection with surety and reclamation bonds,
reinsurance, domestic or international trade transactions and obligations not
otherwise aforementioned relating to transactions entered into by the Borrowers
in the ordinary course of business.

         6.16  Environmental Matters.

         Except as set forth in Schedule 6.16 (which was provided by Hunt on and
as of the Closing Date) or as could not reasonably be expected to have a
Material Adverse Effect:

         (a) Each of the facilities and properties owned, leased or operated by
Hunt or any of its Domestic Subsidiaries (the "Properties") and all operations
at the Properties are in compliance with all applicable Environmental Laws, and
there is no violation of any Environmental Law with respect to the Properties or
the businesses operated by Hunt or any of its Domestic Subsidiaries (the
"Businesses"), and there are no conditions relating to the Businesses or
Properties that could give rise to liability under any applicable Environmental
Laws.

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

         (c) Neither Hunt nor any of its Domestic Subsidiaries has received any
written notice of, or inquiry from any Governmental Authority regarding, any
violation, alleged violation, non-compliance, liability or potential liability

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regarding environmental matters or compliance with Environmental Laws with
regard to any of the Properties or the Businesses that remains unresolved, nor
does Hunt or any of its Domestic Subsidiaries have knowledge or reason to
believe that any such notice will be received or is being threatened.

         (d) Materials of Environmental Concern have not been transported or
disposed of from the Properties, or generated, treated, stored or disposed of
at, on or under any of the Properties or, to the best knowledge of the Credit
Parties, any other location, in each case by or on behalf of Hunt or any of its
Domestic Subsidiaries in violation of, or in a manner that would be reasonably
likely to give rise to liability under, any applicable Environmental Law.

         (e) No judicial proceeding or governmental or administrative action is
pending or, to the best knowledge of any Credit Party, threatened, under any
Environmental Law to which Hunt or any of its Domestic Subsidiaries is or will
be named as a party, nor are there any consent decrees or other decrees, consent
orders, administrative orders or other orders, or other administrative or
judicial requirements outstanding under any Environmental Law with respect to
Hunt or any of its Domestic Subsidiaries, the Properties or the Businesses.

         (f) There has been no release or, threat of release of Materials of
Environmental Concern at or from the Properties, or arising from or related to
the operations (including, without limitation, disposal) of Hunt or any of its
Domestic Subsidiaries in connection with the Properties or otherwise in
connection with the Businesses, in violation of Environmental Laws.

                                    SECTION 7

                              AFFIRMATIVE COVENANTS

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

         7.1   Information Covenants.

         Hunt will furnish, or cause to be furnished, to the Agent:

               (a) Annual Financial Statements. As soon as available, and in any
         event within 90 days after the close of each fiscal year of Hunt and
         its Subsidiaries, a consolidated balance sheet and income statement of
         Hunt and its Subsidiaries, as of the end of such fiscal year, together
         with related consolidated statements of operations and retained
         earnings and of cash flows for such fiscal year, setting forth in
         comparative form consolidated figures for the preceding fiscal year,
         all such financial information described above to be in reasonable form
         and detail and audited by independent certified public accountants of
         recognized national standing reasonably acceptable to the Agent and
         whose opinion shall be to the effect that such financial statements
         have been prepared in accordance with GAAP (except for changes with
         which such accountants concur) and shall not be limited as to the scope
         of the audit or qualified as to the status of Hunt and its Subsidiaries

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         as a going concern; provided that, the delivery within the time period
         specified above of Hunt's Annual Report on Form 10-K for any fiscal
         year prepared in compliance with the requirements therefor and filed
         with the Securities and Exchange Commission shall be deemed to satisfy
         the requirements of this subsection (a) for such period.

               (b) Quarterly Financial Statements. As soon as available, and in
         any event within 45 days after the close of each fiscal quarter of Hunt
         and its Subsidiaries (other than the fourth fiscal quarter, in which
         case 90 days after the end thereof) a consolidated balance sheet and
         income statement of Hunt and its Subsidiaries, as of the end of such
         fiscal quarter, together with related consolidated statements of
         operations and retained earnings and of cash flows for such fiscal
         quarter in each case setting forth in comparative form consolidated
         figures for the corresponding period of the preceding fiscal year, all
         such financial information described above to be in reasonable form and
         detail and reasonably acceptable to the Agent, and accompanied by a
         certificate of the chief financial officer of Hunt to the effect that
         such quarterly financial statements fairly present in all material
         respects the financial position of Hunt and its Subsidiaries and have
         been prepared in accordance with GAAP, subject to changes resulting
         from audit and normal year-end audit adjustments; provided that, the
         delivery within the time period specified above of Hunt's Annual Report
         on Form 10-Q for any fiscal quarter prepared in compliance with the
         requirements therefor and filed with the Securities and Exchange
         Commission shall be deemed to satisfy the requirements of this
         subsection (a) for such period.

               (c) Officer's Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of the chief financial officer of Hunt; substantially in
         the form of Schedule 7.1(c), (i) demonstrating compliance with the
         financial covenants contained in Section 7.11 by calculation thereof as
         of the end of each such fiscal period and (ii) stating that no Default
         or Event of Default exists, or if any Default or Event of Default does
         exist, specifying the nature and extent thereof and what action Hunt
         proposes to take with respect thereto.

               (d) Annual Business Plan and Budgets. At least 90 days after the
         end of each fiscal year of Hunt, beginning with the fiscal year ending
         December 3, 2000, an annual business plan and budget of Hunt
         containing, among other things, projected financial statements for the
         next fiscal year.

               (e) Accountant's Certificate. Within the period for delivery of
         the annual financial statements provided in Section 7.1(a), a
         certificate of the accountants conducting the annual audit stating that
         they have reviewed Section 7.11 of the Credit Agreement and stating
         further whether, in the course of their audit, they have become aware
         of any Default or Event of Default under such Section 7.11 and, if any
         such Default or Event of Default exists, specifying the nature and
         extent thereof.

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

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

               (h) Notices. Upon a Credit Party obtaining knowledge thereof,
         Hunt will give written notice to the Agent immediately of (a) the
         occurrence of an event or condition consisting of a Default or Event of
         Default, specifying the nature and existence thereof and what action
         the Credit Parties propose to take with respect thereto, and (b) the
         occurrence of any of the following with respect to Hunt or any of its
         Subsidiaries (i) the pendency or commencement of any litigation,
         arbitral or governmental proceeding against such Person which if
         adversely determined is likely to have a Material Adverse Effect, (ii)
         the institution of any proceedings against such Person with respect to,
         or the receipt of notice by such Person of potential liability or
         responsibility for violation, or alleged violation of any federal,
         state or local law, rule or regulation, including but not limited to,
         Environmental Laws, the violation of which would likely have a Material
         Adverse Effect, or (iii) any notice or determination concerning the
         imposition of any withdrawal liability by a multiemployer Plan against
         such Person or any ERISA Affiliate, the determination that a
         Multiemployer Plan is, or is expected to be, in reorganization within
         the meaning of Title IV of ERISA or the termination of any Plan.

               (i) ERISA. Upon any of the Credit Parties obtaining knowledge
         thereof, Hunt will give written notice to the Agent promptly (and in
         any event within five business days) of: (i) of any event or condition,
         including, but not limited to, any Reportable Event, that constitutes,
         or might reasonably lead to, a Termination Event; (ii) with respect to
         any Multiemployer Plan, the receipt of notice as prescribed in ERISA or
         otherwise of any withdrawal liability assessed against Hunt or any of
         its ERISA Affiliates, or of a determination that any Multiemployer Plan
         is in reorganization or insolvent (both within the meaning of Title IV
         of ERISA); (iii) the failure to make full payment on or before the due
         date (including extensions) thereof of all amounts which Hunt, any of
         the Subsidiaries of Hunt or any ERISA Affiliate is required to
         contribute to each Plan pursuant to its terms and as required to meet
         the minimum funding standard set forth in ERISA and the Code with
         respect thereto; or (iv) any change in the funding status of any Plan
         that reasonably could be expected to have a Material Adverse Effect;
         together, with a description of any such event or condition or a copy
         of any such notice and a statement by the principal financial officer
         of Hunt briefly setting forth the details regarding such event,
         condition, or notice, and the action, if any, which has been or is

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         being taken or is proposed to be taken by the Credit Parties with
         respect thereto. Promptly upon request, Hunt shall furnish the Agent
         and the Lenders with such additional information concerning any Plan as
         may be reasonably requested, including, but not limited to, copies of
         each annual report/return (Form 5500 series), as well as all schedules
         and attachments thereto required to be filed with the Department of
         Labor and/or the Internal Revenue Service pursuant to ERISA and the
         Code, respectively, for each "plan year" (within the meaning of Section
         3(39) of ERISA).

               (j) Other Information. With reasonable promptness upon any such
         request, such other information regarding the business, properties or
         financial condition of Hunt or any of its Subsidiaries as the Agent or
         the Required Lenders may reasonably request.

         7.2   Preservation of Existence and Franchises.

         Except as otherwise permitted pursuant to the terms of Section 8.4,
Hunt will, and will cause each of its Subsidiaries to, do all things necessary
to preserve and keep in full force and effect its existence, material rights and
franchises and authority.

         7.3   Books and Records.

         Hunt will, and will cause each of its Subsidiaries to, keep complete
and accurate books and records of its transactions in accordance with GAAP.

         7.4   Compliance with Law.

         Hunt will, and will cause each of its Subsidiaries to, comply with all
laws, rules, regulations and orders, and all applicable restrictions imposed by
all Governmental Authorities, applicable to it and its property if noncompliance
with any such law, rule, regulation, order or restriction would have a Material
Adverse Effect.

         7.5   Payment of Taxes and Other Indebtedness.

         Hunt will, and will cause each of its Subsidiaries to, pay and
discharge (i) all taxes, assessments and governmental charges or levies imposed
upon it, or upon its income or profits, or upon any of its properties, before
they shall become delinquent, (ii) all lawful claims (including claims for
labor, materials and supplies) which, if unpaid, might give rise to a Lien upon
any of its properties, and (iii) except as prohibited under the Credit
Agreement, all of its other Indebtedness as it shall become due; provided,
however, that Hunt and its Subsidiaries shall not be required to pay any such
tax, assessment, charge, levy, claim or Indebtedness which is being contested in
good faith by appropriate proceedings and as to which adequate accruals therefor
have been established in accordance with GAAP, unless the failure to make any
such payment (i) would give rise to an immediate right to foreclose on a Lien
securing such amounts or (ii) would have a Material Adverse Effect.

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         7.6   Insurance.

         Hunt will, and will cause each of its Subsidiaries to, at all times
maintain in full force and effect insurance (including worker's compensation
insurance, liability insurance, casualty insurance and business interruption
insurance) in such amounts, covering such risks and liabilities and with such
deductibles or self-insurance retentions as are in accordance with normal
industry practice.

         7.7   Maintenance of Property.

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

         7.8   Performance of Obligations.

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

         7.9   Use of Proceeds.

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

         7.10  Audits/Inspections.

         Upon reasonable notice and during normal business hours, Hunt will, and
will cause each of its Subsidiaries to, permit representatives appointed by the
Agent, including, without limitation, independent accountants, agents,
attorneys, and appraisers to visit and inspect its property, including its books
and records, its accounts receivable and inventory, its facilities and its other
business assets, and to make photocopies or photographs thereof and to write
down and record any information such representative obtains and shall permit the
Agent or its representatives to investigate and verify the accuracy of
information provided to the Lenders and to discuss all such matters with the
officers, employees and representatives of such Person.

         7.11  Financial Covenants.

               (a) Consolidated Net Worth. Consolidated Net Worth at all times
         shall be no less than $60,000,000, increased on a cumulative basis as
         of the end of each fiscal quarter commencing with the fiscal quarter
         ending February 27, 2000 by an amount equal to 30% of Consolidated Net
         Income (to the extent positive) for the fiscal quarter then ended.

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               (b) Consolidated Leverage Ratio. The Consolidated Leverage Ratio
         at each Calculation Date shall be no greater than 3.00 to 1.00

               (c) Consolidated Fixed Charge Coverage Ratio. The Consolidated
         Fixed Charge Coverage Ratio at each Calculation Date shall be no less
         than 1.30 to 1.00.

         7.12  Additional Credit Parties.

         Within thirty (30) days of any Person becoming a Material Subsidiary of
Hunt or in the event that Hunt elects to cause any other present or future
direct or indirect Subsidiary of Hunt to become a Guarantor under the Credit
Agreement, Hunt shall so notify the Agent and shall cause such Person to (a)
execute a Joinder Agreement in substantially the same form as Schedule 7.12 and
(b) deliver such other documentation as the Agent may reasonably request in
connection with the foregoing, including, without limitation, certified
corporate resolutions and other corporate documents of such Person and favorable
opinions of counsel to such Person (which shall cover, among other things, the
legality, validity, binding effect and enforceability of the documentation
referred to above), all in form, content and scope reasonably satisfactory to
the Agent.

         Notwithstanding any provision of the Credit Agreement to the contrary,
in the event that any Guarantor shall not be or that any Guarantor shall cease
to be a Material Subsidiary in accordance with the terms of the Credit
Agreement, then, upon written request of Hunt to the Agent and provided that no
Default or Event of Default shall exist at such time (1) such Guarantor,
automatically and without further act on the part of the Agent or the Lenders,
shall cease to be a Guarantor and shall be released from its obligations under
the Credit Agreement and (2) the Agent (on behalf of the Lenders) shall
thereupon execute such documents and take such other action reasonably requested
by Hunt to cause such Guarantor to be released from its obligations arising
under the Credit Agreement.

         7.13  Ownership of Subsidiaries.

         Except to the extent otherwise provided in Section 8.4(b), Section 8.5
and clause (xv) of the definition of "Permitted Investments" set forth in
Section 1.1 and Section 8.11, Hunt shall, directly or indirectly, own at all
times 100% of the capital stock of each of its Subsidiaries.

                                    SECTION 8

                               NEGATIVE COVENANTS

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

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         8.1   Indebtedness.

         Hunt will not, nor will it permit any of its Subsidiaries to, contract,
create, incur, assume or permit to exist any Indebtedness, except:

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

               (b) Indebtedness of Hunt and any of its Subsidiaries existing as
         of the Closing Date and set forth in Schedule 8.1 (which was provided
         by Hunt on and as of the Closing Date), and renewals, refinancings and
         extensions thereof on terms and conditions no less favorable to such
         Person than such existing Indebtedness;

               (c) purchase money Indebtedness (including Capital Leases)
         incurred after the Closing Date by Hunt or any of its Foreign
         Subsidiaries to finance the purchase of fixed assets provided that (i)
         the aggregate principal amount of such Indebtedness plus the aggregate
         outstanding principal amount of Indebtedness permitted pursuant to
         clause (b) above and clause (i)(i) below shall not exceed $10,000,000
         at any time, (ii) such Indebtedness when incurred shall not exceed the
         purchase price of the asset(s) financed and (iii) no such Indebtedness
         shall be refinanced for a principal amount in excess of the principal
         balance outstanding thereon at the time of such refinancing;

               (d) unsecured Indebtedness of Hunt or any of its Foreign
         Subsidiaries with respect to letters of credit (other than Letters of
         Credit issued under the Credit Agreement) provided that the aggregate
         maximum amount available to be drawn under all such letters of credit,
         together with all unreimbursed drawings with respect thereto, shall not
         exceed $10,000,000 at any time outstanding;

               (e) obligations of Hunt in respect of interest rate protection
         agreements, foreign currency exchange, commodity purchase or option
         agreements or other interest or exchange rate or commodity price
         hedging agreements entered into in order to manage existing or
         anticipated interest rate, exchange rate or commodity price risks and
         not for speculative purposes;

               (f) obligations in connection with any Permitted Receivables
         Financing;

               (g) intercompany Indebtedness of HGA, Hunt Europe and Hunt BV
         owing to Hunt to the extent permitted by the definition of "Permitted
         Investments" set forth in Section 1.1;

               (h) Indebtedness arising under the Senior Note Agreement and the
         Senior Notes in an aggregate principal amount of up to $50,000,000; and

               (i) in addition to the Indebtedness otherwise permitted by this
         Section 8.1,

               (i) other Indebtedness incurred after the Closing Date by Hunt or
               any of its Foreign Subsidiaries provided that (A) in the case of
               any such Indebtedness incurred by the Borrowers, the loan

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               documentation with respect to such Indebtedness shall not contain
               covenants or default provisions relating to Hunt and its
               Subsidiaries that are more restrictive than the covenants and
               default provisions contained in the Credit Documents, (B) on the
               date of incurrence of such Indebtedness after giving effect on a
               Pro Forma Basis to the incurrence of such Indebtedness and to the
               concurrent retirement of any other Indebtedness of Hunt or any of
               its Subsidiaries, no Default or Event of Default would exist
               under the Credit Agreement and (C) the aggregate principal amount
               of such Indebtedness plus the aggregate outstanding principal
               amount of Indebtedness permitted pursuant to clauses (b) and (c)
               above shall not exceed $10,000,000 at any time; and

               (ii) (A) Guaranty Obligations of Hunt with respect to any
               Indebtedness of a Foreign Subsidiary permitted under this Section
               8.1 and (B) Guaranty Obligations of any Subsidiary of Hunt that
               is a Guarantor with respect to any Indebtedness of Hunt permitted
               under this Section 8.1.

         Notwithstanding the foregoing of this Section 8.1, the aggregate
         outstanding principal amount of all Indebtedness incurred after the
         Closing Date by any Subsidiaries of Hunt (other than Indebtedness
         permitted under subsection (a), (b) or (g) hereof) plus the aggregate
         outstanding principal amount of all Indebtedness secured by Liens
         permitted under subsection (xiii) of the definition of "Permitted
         Liens" plus the aggregate outstanding obligations incurred in
         transactions permitted by Section 8.12 shall not exceed, at any time,
         20% of Consolidated Net Worth as of the then most recent Calculation
         Date with respect to which the Agent shall have received the Required
         Financial Information.

         8.2   Liens.

         Hunt will not, nor will it permit any of its Subsidiaries to, contract,
create, incur, assume or permit to exist any Lien with respect to any of their
Property, whether now owned or after acquired, except for Permitted Liens.

         8.3   Nature of Business.

         Neither Hunt nor any of its Subsidiaries will substantively alter the
character or conduct of the business conducted by any such Person as of the
Closing Date.

         8.4   Consolidation, Merger, Sale or Purchase of Assets, etc.

         Hunt will not, nor will it permit any of its Subsidiaries to:

               (a) dissolve, liquidate or wind up their affairs, or enter into
         any transaction of merger or consolidation; provided, however, that, so
         long as no Default or Event of Default would be directly or indirectly
         caused as a result thereof, (i) Hunt may merge or consolidate with any
         of its Subsidiaries provided that Hunt is the surviving corporation;
         (ii) any Domestic Subsidiary of Hunt may merge or consolidate with any

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         other Domestic Subsidiary of Hunt; (iii) any Domestic Subsidiary of
         Hunt may merge or consolidate with any Foreign Subsidiary of Hunt
         provided that such Domestic Subsidiary is the surviving corporation;
         (iv) any Foreign Subsidiary of Hunt may merge or consolidate with any
         other Foreign Subsidiary of Hunt; and (v) any Wholly-Owned Subsidiary
         of Hunt may dissolve, liquidate or wind up its affairs at any time;

               (b) sell, lease, transfer or otherwise dispose of any Property
         (including without limitation pursuant to any sale and leaseback
         transaction) other than (i) the sale of inventory in the ordinary
         course of business for fair consideration, (ii) the sale or disposition
         of machinery and equipment no longer used or useful in the conduct of
         such Person's business, (iii) in a Permitted Receivables Financing and
         (iv) other sales of assets, provided that (A) after giving effect on a
         Pro Forma Basis to such sale or other disposition, no Default or Event
         of Default would exist under the Credit Agreement and (B) Hunt shall
         give notice to the Agent and each of the Lenders specifying the
         anticipated or actual date of such asset sale, briefly describing the
         assets sold or to be sold and setting forth the net book value of such
         assets and the aggregate consideration and Net Proceeds to be received
         for such assets in connection with such asset sale, and thereafter Hunt
         shall (1) within the period of twelve months following the consummation
         of such asset sale (with respect to any such asset sale, the
         "Application Period"), apply (or cause an applicable Subsidiary to
         apply) an amount equal to the Excess Sale Proceeds of such asset sale
         to the purchase, acquisition or, in the case of real property,
         construction of Alternative Assets in a transaction complying with all
         of the terms and conditions of the Credit Agreement or (2) prepay the
         Loans in connection with such asset sale to the extent required by
         Section 3.3(b)(iii); or

               (c) acquire all or any portion of the capital stock or securities
         of any other Person or purchase, lease or otherwise acquire (in a
         single transaction or a series of related transactions) all or any
         substantial part of the Property of any other Person unless (i) such
         Property or Person represents operations similar to those Hunt and its
         Subsidiaries, (ii) no Default or Event of Default exists, and (iii)
         after giving effect to such transaction, no Default or Event of Default
         would exist.

         8.5   Advances, Investments, Loans, etc.

         Hunt will not, nor will it permit any of its Subsidiaries to, make
Investments in or to any Person, except for Permitted Investments.

         8.6   Restricted Payments.

         Hunt will not, nor will it permit any of its Subsidiaries to, directly
or indirectly declare, order, make or set apart any sum for or pay any
Restricted Payment, except (i) to make (A) dividends payable solely in the same
class of capital stock of such Person and (B) other Restricted Payments payable
solely in common stock of such Person, (ii) to make dividends or other
distributions payable to Hunt (directly or indirectly through Subsidiaries of
Hunt), (iii) as permitted by Section 8.7, (iv) the repurchase by Hunt of
outstanding shares of its capital stock, provided that (A) no proceeds of any
Loans shall be used to finance any such repurchase, (B) no Indebtedness is
incurred by the Borrowers to finance any such repurchase and (C) the aggregate

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cash consideration paid for all such repurchases occurring after July 1, 1998
shall not exceed $25,000,000 and (v) so long as no Default or Event of Default
exists, other Restricted Payments made by Hunt.

         8.7   Prepayments of Indebtedness, etc.

         Hunt will not, nor will it permit any of its Subsidiaries to, (i) if
any Default or Event of Default has occurred and is continuing or would be
directly or indirectly caused as a result thereof, make (or give any notice with
respect thereto) any voluntary or optional payment or prepayment or redemption
or acquisition for value of (including without limitation, by way of depositing
money or securities with the trustee with respect thereto before due for the
purpose of paying when due), refund, refinance or exchange of any other
Indebtedness (other than Subordinated Indebtedness) or (ii) make (or give any
notice with respect thereto) any voluntary or optional payment or prepayment or
redemption or acquisition for value of (including without limitation, by way of
depositing money or securities with the trustee with respect thereto before due
for the purpose of paying when due), refund, refinance or exchange of any
Indebtedness subordinated to the obligations of the Borrowers or the Guarantors
under the Credit Agreement or (iii) amend, modify or change its articles of
incorporation (or corporate charter or other similar organizational document) or
bylaws (or other similar document) where such change would have a Material
Adverse Effect.

         8.8   Transactions with Affiliates.

         Hunt will not, nor will it permit any of its Subsidiaries to, enter
into or permit to exist any transaction or series of transactions with any
officer, director, shareholder, Subsidiary or Affiliate of such Person other
than (a) advances of working capital to Hunt, (b) transfers of cash and assets
to Hunt, (c) transactions permitted by Section 8.1(g), Section 8.4(a), Section
8.5 or Section 8.6, (d) normal compensation and reimbursement of expenses of
officers and directors and (e) except as otherwise specifically limited in the
Credit Agreement, other transactions which are entered into in the ordinary
course of such Person's business on terms and conditions substantially as
favorable to such Person as would be obtainable by it in a comparable
arms-length transactions with a Person other than an officer, director,
shareholder, Subsidiary or Affiliate.

         8.9   Fiscal Year.

         Without the prior written approval of the Agent, Hunt will not, nor
will it permit any of its Subsidiaries to, change its fiscal year.

         8.10  Limitation on Restrictions on Subsidiary Dividends and Other
Distributions, etc.

         Hunt will not, nor will it permit any of its Subsidiaries to, directly
or indirectly, create or otherwise cause, incur, assume, suffer or permit to
exist or become effective any consensual encumbrance or restriction of any kind
on the ability of any such Person to (a) pay dividends or make any other
distribution on any of such Person's capital stock, (b) subject to subordination
provisions, pay any Indebtedness owed to the Borrowers or any other Credit
Party, (c) make loans or advances to any other Credit Party or (d) transfer any

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of its Property to any other Credit Party, except for encumbrances or
restrictions existing under or by reason of (i) customary non-assignment
provisions in any lease governing a leasehold interest and (ii) the Credit
Agreement and the other Credit Documents.

         8.11  Issuance and Sale of Subsidiary Stock.

         Hunt will not, nor will it permit any of its Subsidiaries to, except to
qualify directors where required by applicable law and except as otherwise
permitted under the terms of Section 8.4(b), sell, transfer or otherwise dispose
of, any shares of capital stock of any of its Subsidiaries or permit any of its
Subsidiaries to issue, sell or otherwise dispose of, any shares of capital stock
of any of its Subsidiary.

         8.12  Sale Leasebacks.

         Hunt will not, nor will it permit any of its Subsidiaries to, directly
or indirectly, become or remain liable as lessee or as guarantor or other surety
with respect to any lease, whether an Operating Lease or a Capital Lease, of any
Property (whether real or personal or mixed), whether now owned or acquired
after the Closing Date, (i) which such Person has sold or transferred or is to
sell or transfer to any other Person other than Hunt or (ii) which such Person
intends to use for substantially the same purpose as any other Property which
has been sold or is to be sold or transferred by such Person to any other Person
in connection with such lease that would cause the aggregate outstanding
obligations of Hunt and its Subsidiaries in respect of all such transactions
plus the aggregate outstanding principal amount of all Indebtedness secured by
Liens permitted under subsection (xiii) of the definition of "Permitted Liens"
plus the aggregate outstanding principal amount of all Indebtedness of all
Subsidiaries of Hunt to exceed, at any time, 20% of Consolidated Net Worth as of
the then most recent Calculation Date with respect to which the Agent shall have
received the Required Financial Information.

         8.13  No Further Negative Pledges.

         Hunt will not, nor will it permit any of its Subsidiaries to, enter
into, assume or become subject to any agreement prohibiting or otherwise
restricting the creation or assumption of any Lien upon its properties or
assets, whether now owned or acquired after the Closing Date, or requiring the
grant of any security for such obligation if security is given for some other
obligation, other than (i) pursuant to the Senior Note Agreement and the Senior
Notes, in each case as in effect as of August 1, 1996, and (ii) prohibitions
against other encumbrances on specific Property encumbered to secure payment of
particular Indebtedness (which Indebtedness relates solely to such specific
Property, and improvements and accretions thereto, and is otherwise permitted
hereby).

         8.14  Operating Lease Obligations.

         Hunt will not, nor will it permit any of its Subsidiaries to, enter
into, assume or permit to exist any obligations for the payment of rental under
Operating Leases which in the aggregate for all such Persons would exceed
$10,000,000 in any fiscal year.

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                                    SECTION 9

                                EVENTS OF DEFAULT

         9.1   Events of Default.

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

               (a)  Payment. Any Credit Party shall

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

                    (ii) default, and such defaults shall continue for five (5)
               or more days, in the payment when due of any interest on the
               Loans or on any reimbursement obligations arising from drawings
               under Letters of Credit, or of any Fees or other amounts owing
               under the Credit Agreement, under any of the other Credit
               Documents or in connection therewith; or

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

               (c)  Covenants. Any Credit Party shall

                    (i) default in the due performance or observance of any
               term, covenant or agreement contained in Sections 7.2, 7.9, 7.11,
               7.12, 7.13 or 8.1 through 8.14, inclusive, or

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

               (d) Other Credit Documents. (i) Any Credit Party shall default in
         the due performance or observance of any term, covenant or agreement in
         any of the other Credit Documents (subject to applicable grace or cure
         periods, if any), or (ii) any Credit Document shall fail to be in full
         force and effect or to give the Agent and/or the Lenders the liens,
         rights, powers and privileges purported to be created thereby; or

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               (e) Guaranties. The guaranty given by any Guarantor under the
         Credit Agreement(including any Additional Credit Party) or any
         provision thereof shall cease to be in full force and effect, or any
         Guarantor (including any Additional Credit Party) under the Credit
         Agreement or any Person acting by or on behalf of such Guarantor shall
         deny or disaffirm such Guarantor's obligations under such guaranty, or
         any Guarantor shall default in the due performance or observance of any
         term, covenant or agreement on its part to be performed or observed
         pursuant to any guaranty; or

               (f) Bankruptcy Event. Any Bankruptcy Event shall occur with
         respect to Hunt or any of its Subsidiaries; or

               (g) Defaults under Other Agreements. With respect to any
         Indebtedness (other than Indebtedness outstanding under the Credit
         Agreement) in excess of $10,000,000 in the aggregate for Hunt and its
         Subsidiaries taken as a whole, (i) Hunt or any of its Subsidiaries
         shall (A) default in any payment (beyond the applicable grace period
         with respect thereto, if any) with respect to any such Indebtedness, or
         (B) default in the observance or performance relating to such
         Indebtedness or contained in any instrument or agreement evidencing,
         securing or relating thereto, or any other event or condition shall
         occur or condition exist, the effect of which default or other event or
         condition is to cause, or permit, the holder or holders of such
         Indebtedness (or trustee or agent on behalf of such holders) to cause
         (determined without regard to whether any notice or lapse of time is
         required), any such Indebtedness to become due prior to its stated
         maturity; or (ii) any such Indebtedness shall be declared due and
         payable, or required to be prepaid other than by a regularly scheduled
         required prepayment, prior to the stated maturity thereof; or

               (h) Judgments. One or more judgments or decrees shall be entered
         against Hunt or any of its Subsidiaries involving a liability of
         $10,000,000 or more in the aggregate (to the extent not paid or fully
         covered by insurance provided by a carrier who has acknowledged
         coverage) and any such judgments or decrees shall not have been
         vacated, discharged or stayed or bonded pending appeal within 30 days
         from the entry thereof; or

               (i) ERISA. Any of the following events or conditions, if such
         event or condition could have a Material Adverse Effect: (1) any
         "accumulated funding deficiency," as such term is defined in Section
         302 of ERISA and Section 412 of the Code, whether or not waived, shall
         exist with respect to any Plan, or any lien shall arise on the assets
         of Hunt, any Subsidiary of Hunt or any ERISA Affiliate in favor of the
         PBGC or a Plan; (2) a Termination Event shall occur with respect to a
         Single Employer Plan, which is, in the reasonable opinion of the Agent,
         likely to result in the termination of such Plan for purposes of Title
         IV of ERISA; (3) a Termination Event shall occur with respect to a
         Multiemployer Plan or Multiple Employer Plan, which is, in the
         reasonable opinion of the Agent, likely to result in (i) the
         termination of such Plan for purposes of Title IV of ERISA, or (ii)

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<PAGE>

         Hunt, any Subsidiary of Hunt or any ERISA Affiliate incurring any
         liability in connection with a withdrawal from, reorganization of
         (within the meaning of Section 4241 of ERISA), or insolvency or (within
         the meaning of Section 4245 of ERISA) such Plan; or (4) any prohibited
         transaction (within the meaning of Section 406 of ERISA or Section 4975
         of the Code) or breach of fiduciary responsibility shall occur which
         may subject Hunt, any Subsidiary of Hunt or any ERISA Affiliate to any
         liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the Code, or under any agreement or other instrument
         pursuant to which Hunt, any Subsidiary of Hunt or any ERISA Affiliate
         has agreed or is required to indemnify any person against any such
         liability; or

               (j) Ownership. There shall occur a Change of Control; or

               (k) Senior Note Agreement. There shall occur and be continuing
         any Event of Default under and as defined in the Senior Note Agreement.

         9.2   Acceleration; Remedies.

         Upon the occurrence of an Event of Default, and at any time thereafter
unless and until such Event of Default has been waived by the Required Lenders
or cured to the satisfaction of the Required Lenders (pursuant to the voting
procedures in Section 11.6), the Agent shall, upon the request and direction of
the Required Lenders, by written notice to the Credit Parties take any of the
following actions without prejudice to the rights of the Agent or any Lender to
enforce its claims against the Credit Parties, except as otherwise specifically
provided for in the Credit Agreement:

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

         (ii) Acceleration. Declare the unpaid principal of and any accrued
         interest in respect of all Loans, any reimbursement obligations arising
         from drawings under Letters of Credit and any and all other
         indebtedness or obligations of any and every kind owing by the
         Borrowers to any of the Lenders under the Credit Agreement to be due
         whereupon the same shall be immediately due and payable without
         presentment, demand, protest or other notice of any kind, all of which
         are hereby waived by each of the Borrowers.

         (iii) Cash Collateral. Direct (A) Hunt to pay (and Hunt agrees that
         upon receipt of such notice, or upon the occurrence of an Event of
         Default under Section 9.1(f), it will immediately pay) to the Agent
         additional cash, to be held by the Agent, for the benefit of the
         Lenders, in a cash collateral account as additional security for the
         Domestic LOC Obligations in respect of subsequent drawings under all
         then outstanding Domestic Letters of Credit in an amount equal to the
         maximum aggregate amount which may be drawn under all Domestic Letters
         of Credits then outstanding, (B) Hunt Europe to pay (and Hunt Europe
         agrees that upon receipt of such notice, or upon the occurrence of an
         Event of Default under Section 9.1(f), it will immediately pay) to the
         Agent additional cash, to be held by the Agent, for the benefit of the

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         Lenders, in a cash collateral account as additional security for the
         Foreign LOC Obligations in respect of subsequent drawings under all
         applicable then outstanding Foreign Letters of Credit in an amount
         equal to the maximum aggregate amount which may be drawn under all such
         Foreign Letters of Credits then outstanding and/or (C) Hunt BV to pay
         (and Hunt BV agrees that upon receipt of such notice, or upon the
         occurrence of an Event of Default under Section 9.1(f), it will
         immediately pay) to the Agent additional cash, to be held by the Agent,
         for the benefit of the Lenders, in a cash collateral account as
         additional security for the Foreign LOC Obligations in respect of
         subsequent drawings under all applicable then outstanding Foreign
         Letters of Credit in an amount equal to the maximum aggregate amount
         which may be drawn under all such Foreign Letters of Credits then
         outstanding.

         (iv) Enforcement of Rights. Enforce any and all rights and interests
         created and existing under the Credit Documents and all rights of
         set-off.

         Notwithstanding the foregoing, if an Event of Default specified in
Section 9.1(f) shall occur, then the Commitments shall automatically terminate
and all Loans, all reimbursement obligations arising from drawings under Letters
of Credit, all accrued interest in respect thereof, all accrued and unpaid Fees
and other indebtedness or obligations owing to the Lenders under the Credit
Agreement automatically shall immediately become due and payable without the
giving of any notice or other action by the Agent.

                                   SECTION 10

                                AGENCY PROVISIONS

         10.1  Appointment.

         Each Lender hereby designates and appoints Bank of America as
administrative agent (in such capacity as Agent under the Credit Agreement, the
"Agent") of such Lender to act as specified in the Credit Documents, and each
such Lender hereby authorizes the Agent as the agent for such Lender, to take
such action on its behalf under the provisions of the Credit Agreement and the
other Credit Documents and to exercise such powers and perform such duties as
are expressly delegated by the terms of the Credit Agreement and of the other
Credit Documents, together with such other powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary elsewhere in the Credit
Agreement and in the other Credit Documents, the Agent shall not have any duties
or responsibilities, except those expressly set forth in the Credit Agreement
and therein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into the Credit Agreement or any of the other Credit Documents, or shall
otherwise exist against the Agent. Except as otherwise expressly provided in the
Credit Agreement, the provisions of this Section are solely for the benefit of
the Agent and the Lenders and none of the Credit Parties shall have any rights
as a third party beneficiary of the provisions of the Credit Agreement. In
performing its functions and duties under the Credit Agreement and the other
Credit Documents, the Agent shall not act solely as agent of the Lenders and
does not assume and shall not be deemed to have assumed any obligation or
relationship of agency or trust with or for any Credit Party.

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<PAGE>

         10.2  Delegation of Duties.

         The Agent may execute any of their respective duties under the Credit
Agreement or under the other Credit Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

         10.3  Exculpatory Provisions.

         Neither the Agent nor any of its officers, directors, employees,
agents, attorneys-in-fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with the Credit Agreement or in connection with any of the other
Credit Documents (except for its or such Person's own gross negligence or
willful misconduct), or (ii) responsible in any manner to any of the Lenders for
any recitals, statements, representations or warranties made by any of the
Credit Parties contained in the Credit Agreement or in any of the other Credit
Documents or in any certificate, report, document, financial statement or other
written or oral statement referred to or provided for in, or received by the
Agent under or in connection with the Credit Agreement or in connection with the
other Credit Documents, or enforceability or sufficiency therefor of any of the
other Credit Documents, or for any failure of any Credit Party to perform its
obligations thereunder. The Agent shall not be responsible to any Lender for the
effectiveness, genuineness, validity, enforceability, collectibility or
sufficiency of the Credit Agreement, or any of the other Credit Documents or for
any representations, warranties, recitals or statements made therein or made by
either Borrower or any Credit Party in any written or oral statement or in any
financial or other statements, instruments, reports, certificates or any other
documents in connection therewith furnished or made by the Agent to the Lenders
or by or on behalf of the Credit Parties to the Agent or any Lender or be
required to ascertain or inquire as to the performance or observance of any of
the terms, conditions, provisions, covenants or agreements contained therein or
as to the use of the proceeds of the Loans or the use of the Letters of Credit
or of the existence or possible existence of any Default or Event of Default or
to inspect the properties, books or records of the Credit Parties.

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         10.4  Reliance on Communications.

         The Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, consent, certificate,
affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or
Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to any of the Credit Parties, independent accountants and
other experts selected by the Agent with reasonable care). The Agent may deem
and treat the Lenders as the owner of their respective interests under the
Credit Agreement for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Agent in
accordance with Section 11.3(b). The Agent shall be fully justified in failing
or refusing to take any action under the Credit Agreement or under any of the
other Credit Documents unless it shall first receive such advice or concurrence
of the Required Lenders as it deems appropriate or it shall first be indemnified
to its satisfaction by the Lenders against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such
action. The Agent shall in all cases be fully protected in acting, or in
refraining from acting, under any of the Credit Documents in accordance with a
request of the Required Lenders (or to the extent specifically provided in
Section 11.6, all the Lenders) and such request and any action taken or failure
to act pursuant thereto shall be binding upon all the Lenders (including their
successors and assigns).

         10.5  Notice of Default.

         The Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default unless the Agent has received
notice from a Lender or a Credit Party referring to the Credit Document,
describing such Default or Event of Default and stating that such notice is a
"notice of default." In the event that the Agent receives such a notice, the
Agent shall give prompt notice thereof to the Lenders. The Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders.

         10.6  Non-Reliance on Agent and Other Lenders.

         Each Lender expressly acknowledges that neither the Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates has
made any representations or warranties to it and that no act by the Agent or any
affiliate thereof taken after the Closing Date, including any review of the
affairs of any Credit Party, shall be deemed to constitute any representation or
warranty by the Agent to any Lender. Each Lender represents to the Agent that it
has, independently and without reliance upon the Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, assets, operations,
property, financial and other conditions, prospects and creditworthiness of the
Borrowers and the other Credit Parties and made its own decision to make its
Loans and enter into the Credit Agreement. Each Lender also represents that it
will, independently and without reliance upon the Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under the Credit Agreement, and to make such
investigation as it deems necessary to inform itself as to the business, assets,
operations, property, financial and other conditions, prospects and

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<PAGE>

creditworthiness of the Borrowers and the other Credit Parties. Except for
notices, reports and other documents expressly required to be furnished to the
Lenders by the Agent under the Credit Agreement, the Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, assets, property, financial or
other conditions, prospects or creditworthiness of the Borrowers and the other
Credit Parties which may come into the possession of the Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates.

         10.7  Indemnification.

         The Lenders agree to indemnify the Agent in its capacity as such (to
the extent not reimbursed by the Borrowers and without limiting the obligation
of the Borrowers to do so), ratably according to their respective Commitments
(or if the Commitments have expired or been terminated, in accordance with the
respective principal amounts of outstanding Loans and Participation Interests of
the Lenders), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time (including without limitation at
any time following the final payment of all of the obligations of the Borrowers
under the Credit Documents) be imposed on, incurred by or asserted against the
Agent in its capacity as such in any way relating to or arising out of the
Credit Agreement or the other Credit Documents or any documents contemplated by
or referred to therein or the transactions contemplated thereby or any action
taken or omitted by the Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from the gross negligence or willful
misconduct of the Agent. If any indemnity furnished to the Agent for any purpose
shall, in the opinion of the Agent, be insufficient or become impaired, the
Agent may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished. The
agreements in this Section shall survive the repayment of the Loans, LOC
Obligations and other obligations under the Credit Documents and the termination
of the Commitments.

         10.8  Agent in its Individual Capacity.

         The Agent and its affiliates may make loans to, accept deposits from
and generally engage in any kind of business with any Credit Party as though the
Agent were not Agent under the Credit Agreement. With respect to the Loans made
by and all obligations of the Borrowers under the Credit Documents owing to it,
the Agent shall have the same rights and powers under the Credit Agreement as
any Lender and may exercise the same as though they were not Agent, and the
terms "Lender" and "Lenders" shall include the Agent in its individual capacity.

         10.9  Successor Agent.

         The Agent may, at any time, resign upon 20 days' written notice to the
Lenders and Hunt, and be removed with or without cause by the Required Lenders
upon 30 days' written notice to the Agent. Upon any such resignation or removal,
the Required Lenders shall have the right, with the prior consent of Hunt, to
appoint a successor Agent. If no successor Agent shall have been so appointed by
the Required Lenders, and shall have accepted such appointment, within 30 days

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after the notice of resignation or notice of removal, as appropriate, then the
retiring Agent, with the prior consent of Hunt, shall select a successor Agent
provided such successor is a Lender under the Credit Agreement or a commercial
bank organized under the laws of the United States of America or of any State
thereof and has a combined capital and surplus of at least $400,000,000. Upon
the acceptance of any appointment as Agent under the Credit Agreement by a
successor, such successor Agent shall thereupon succeed to and become vested
with all the rights, powers, privileges and duties of the retiring Agent, and
the retiring Agent shall be discharged from its duties and obligations as Agent,
as appropriate, under the Credit Agreement and the other Credit Documents and
the provisions of this Section 10.9 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under the Credit
Agreement.

                                   SECTION 11

                                  MISCELLANEOUS

         11.1  Notices.

         Except as otherwise expressly provided in the Credit Agreement, all
notices and other communications shall have been duly given and shall be
effective (i) when delivered, (ii) when transmitted via telecopy (or other
facsimile device) to the number set out below, (iii) the day following the day
on which the same has been delivered prepaid to a reputable national overnight
air courier service, or (iv) the third Business Day following the day on which
the same is sent by certified or registered mail, postage prepaid, in each case
to the respective parties at the address, in the case of the Borrowers,
Guarantors and the Agent, set forth below, and, in the case of the Lenders, set
forth on Schedule 2.1(a), or at such other address as such party may specify by
written notice to the other parties to the Credit Agreement:

                  if to Hunt or the Guarantors:

                           Hunt Corporation
                           One Commerce Square
                           2005 Market Street
                           Philadelphia, PA  19103-7085
                           Attn:  Mr. William E. Chandler
                                  Chief Financial Officer
                           Telephone:  (215) 841-2300
                           Telecopy:   (215) 656-3711

                  if to Hunt Europe:

                           Hunt Graphics Europe Limited
                           Chester Hall Lane
                           Basildon, Essex, England  SS143BG
                           Attn:  Mr. Derek Wotton
                           Telephone:  011-44-1268-530-331
                           Telecopy: 011-44-1268-527-211

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<PAGE>

                  if to Hunt BV:

                           Hunt Graphics Europe B.V.
                           Kanaaldijk O.Z. 3, P.O.B. 29
                           8100 AA Raalte
                           Netherlands
                           Attn:  Ton DeWinter
                           Telephone: 011-31572 345 500
                           Telecopy:  011-31572 345 501

                  if to the Agent:

                           Bank of America, N.A.
                           Independence Center, 15th Floor
                           NC1-001-15-04
                           101 N. Tryon Street
                           Charlotte, North Carolina 28255
                           Attn:  Agency Services
                           Telephone:  (704) 386-8388
                           Telecopy:   (704) 386-9923

                  with a copy to:

                           Bank of America, N.A.
                           10 Light Street
                           20th Floor
                           Baltimore, Maryland  21202-1499
                           Attn:  Robert M. Searson
                           Telephone:  (410) 605-8038
                           Telecopy:   (410) 539-7508

         11.2  Right of Set-Off.

         In addition to any rights now or after the Closing Date granted under
applicable law or otherwise, and not by way of limitation of any such rights,
upon the occurrence of an Event of Default, each Lender is authorized at any
time and from time to time, without presentment, demand, protest or other notice
of any kind (all of which rights being hereby expressly waived), to set-off and
to appropriate and apply any and all deposits (general or special) and any other
indebtedness at any time held or owing by such Lender (including, without
limitation branches, agencies or Affiliates of such Lender wherever located) to
or for the credit or the account of any Credit Party against obligations and
liabilities of such Credit Party to such Lender under the Credit Agreement, the
other Credit Documents or otherwise, irrespective of whether such Lender shall
have made any demand under the Credit Agreement and although such obligations,
liabilities or claims of such Lender to such Credit Party, or any of them, may
be contingent or unmatured, and any such set-off shall be deemed to have been

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made immediately upon the occurrence of an Event of Default even though such
charge is made or entered on the books of such Lender subsequent thereto. Each
of the Credit Parties hereby agrees that any Person purchasing a participation
in the Loans and Commitments pursuant to Section 11.3(c) or Section 3.13 may
exercise all rights of set-off with respect to its participation interest as
fully as if such Person were a Lender under the Credit Agreement.

         11.3  Benefit of Agreement.

               (a) Generally. The Credit Agreement shall be binding upon and
         inure to the benefit of and be enforceable by the respective successors
         and assigns of the parties to the Credit Agreement; provided that none
         of the Credit Parties may assign and transfer any of its interests
         without prior written consent of the Lenders and Hunt; provided further
         that the rights of each Lender to transfer, assign or grant
         participations in its rights and/or obligations under the Credit
         Agreement shall be limited as set forth in this Section 11.3, provided
         however that nothing in the Credit Agreement shall prevent or prohibit
         any Lender from (i) pledging its Loans to a Federal Reserve Bank in
         support of borrowings made by such Lender from such Federal Reserve
         Bank, or (ii) granting assignments or participation in such Lender's
         Loans and/or Commitments to its parent company and/or to any affiliate
         of such Lender which is at least 50% owned by such Lender or its parent
         company.

               (b) Assignments. Each Lender may assign all or a portion of its
         rights and obligations under the Credit Agreement pursuant to an
         assignment agreement substantially in the form of Schedule 11.3(b) to
         one or more Eligible Assignees, provided that any such assignment shall
         be in a minimum aggregate amount of $5,000,000 of the Commitments and
         in integral multiples of $1,000,000 above such amount. Any assignment
         under this Section 11.3(b) shall be effective upon delivery to the
         Agent of written notice of the assignment together with a transfer fee
         of $3,500 payable to the Agent for its own account. The assigning
         Lender will give prompt notice to the Agent and Hunt of any such
         assignment. Upon the effectiveness of any such assignment (and after
         notice to Hunt as provided in the Credit Agreement), the assignee shall
         become a "Lender" for all purposes of the Credit Agreement and the
         other Credit Documents and, to the extent of such assignment, the
         assigning Lender shall be relieved of its obligations under the Credit
         Agreement to the extent of the Loans and Commitment components being
         assigned. By executing and delivering an assignment agreement in
         accordance with this Section 11.3(b), the assigning Lender thereunder
         and the assignee thereunder shall be deemed to confirm to and agree
         with each other and the other parties to the Credit Agreement as
         follows: (i) such assigning Lender warrants that it is the legal and
         beneficial owner of the interest being assigned thereby free and clear
         of any adverse claim; (ii) except as set forth in clause (i) above,
         such assigning Lender makes no representation or warranty and assumes
         no responsibility with respect to any statements, warranties or
         representations made in or in connection with the Credit Agreement, any
         of the other Credit Documents or any other instrument or document
         furnished pursuant thereto, or the execution, legality, validity,
         enforceability, genuineness, sufficiency or value of the Credit

                                       97

<PAGE>

         Agreement, any of the other Credit Documents or any other instrument or
         document furnished pursuant thereto or the financial condition of any
         Credit Party or the performance or observance by any Credit Party of
         any of its obligations under the Credit Agreement, any of the other
         Credit Documents or any other instrument or document furnished pursuant
         thereto; (iii) such assignee represents and warrants that it is legally
         authorized to enter into such assignment agreement; (iv) such assignee
         confirms that it has received a copy of the Credit Agreement, the other
         Credit Documents and such other documents and information as it has
         deemed appropriate to make its own credit analysis and decision to
         enter into such assignment agreement; (v) such assignee will
         independently and without reliance upon the Agent, such assigning
         Lender or any other Lender, and based on such documents and information
         as it shall deem appropriate at the time, continue to make its own
         credit decisions in taking or not taking action under the Credit
         Agreement and the other Credit Documents; (vi) such assignee appoints
         and authorizes the Agent to take such action on its behalf and to
         exercise such powers under the Credit Agreement or any other Credit
         Document as are delegated to the Agent by the terms thereof, together
         with such powers as are reasonably incidental thereto; and (vii) such
         assignee agrees that it will perform in accordance with their terms all
         the obligations which by the terms of the Credit Agreement and the
         other Credit Documents are required to be performed by it as a Lender.

               (c) Participations. Each Lender may sell, transfer, grant or
         assign participations in all or any part of such Lender's interests and
         obligations under the Credit Agreement; provided that (i) such selling
         Lender shall remain a "Lender" for all purposes under the Credit
         Agreement (such selling Lender's obligations under the Credit Documents
         remaining unchanged) and the participant shall not constitute a Lender
         under the Credit Agreement, (ii) no such participant shall have, or be
         granted, rights to approve any amendment or waiver relating to the
         Credit Agreement or the other Credit Documents except to the extent any
         such amendment or waiver would (A) reduce the principal of or rate of
         interest on or Fees in respect of any Loans in which the participant is
         participating, (B) postpone the date fixed for any payment of principal
         (including extension of the Termination Date or the date of any
         mandatory prepayment), interest or Fees in which the participant is
         participating, or (C) release any Guarantor from its guaranty
         obligations under the Credit Agreement(except as expressly provided in
         the Credit Documents), (iii) sub-participations by the participant
         (except to an affiliate, parent company or affiliate of a parent
         company of the participant) shall be prohibited and (iv) any such
         participations shall be in a minimum aggregate amount of $5,000,000 of
         the Commitments and in integral multiples of $1,000,000 in excess
         thereof. In the case of any such participation, the participant shall
         not have any rights under the Credit Agreement or the other Credit
         Documents (the participant's rights against the selling Lender in
         respect of such participation to be those set forth in the
         participation agreement with such Lender creating such participation)
         and all amounts payable by the Borrowers under the Credit Agreement
         shall be determined as if such Lender had not sold such participation,
         provided, however, that such participant shall be entitled to receive

                                       98
<PAGE>

         additional amounts under Sections 3.6, 3.9, 3.10 and 3.11 on the same
         basis as if it were a Lender, except that all claims and petitions for
         payment and all payments made pursuant to such sections shall be made
         through such selling Lender and except that a participant shall not be
         entitled to receive pursuant to such provisions an amount larger than
         its share of the amount of which the selling Lender would have been
         entitled.

         11.4  No Waiver; Remedies Cumulative.

         No failure or delay on the part of the Agent or any Lender in
exercising any right, power or privilege under any Credit Document and no course
of dealing between any of the Credit Parties shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege under
any Credit Document preclude any other or further exercise thereof or the
exercise of any other right, power or privilege thereunder. The rights and
remedies provided in the Credit Agreement are cumulative and not exclusive of
any rights or remedies which the Agent or any Lender would otherwise have. No
notice to or demand on any Credit Party in any case shall entitle the Borrowers
or any other Credit Party to any other or further notice or demand in similar or
other circumstances or constitute a waiver of the rights of the Agent or the
Lenders to any other or further action in any circumstances without notice or
demand.

                                       99
<PAGE>

         11.5  Payment of Expenses, etc.

         Hunt agrees to: (i) pay all reasonable out-of-pocket costs and expenses
of the Agent in connection with the negotiation, preparation, execution and
delivery and administration of the Credit Documents and the documents and
instruments referred to therein (including, without limitation, the reasonable
fees and expenses of Moore & Van Allen, special counsel to the Agent) and any
amendment, waiver or consent relating thereto including, but not limited to, any
such amendments, waivers or consents resulting from or related to any work-out,
renegotiation or restructure relating to the performance by the Credit Parties
under the Credit Agreement and of the Agent and the Lenders in connection with
enforcement of the Credit Documents and the documents and instruments referred
to therein (including, without limitation, in connection with any such
enforcement, the reasonable fees and disbursements of counsel for the Agent and
each of the Lenders); (ii) pay and hold each of the Lenders harmless from and
against any and all present and future stamp and other similar taxes with
respect to the foregoing matters and save each of the Lenders harmless from and
against any and all liabilities with respect to or resulting from any delay or
omission (other than to the extent attributable to such Lender) to pay such
taxes; and (iii) indemnify each Lender, its officers, directors, employees,
representatives and agents from and hold each of them harmless against any and
all losses, liabilities, claims, damages or expenses incurred by any of them as
a result of, or arising out of, or in any way related to, or by reason of, any
investigation, litigation or other proceeding (whether or not any Lender is a
party thereto) related to the entering into and/or performance of any Credit
Document or the use of proceeds of any Loans (including other extensions of
credit) or the consummation of any other transactions contemplated in any Credit
Document, including, without limitation, the reasonable fees and disbursements
of counsel incurred in connection with any such investigation, litigation or
other proceeding (but excluding any such losses, liabilities, claims, damages or
expenses to the extent incurred by reason of gross negligence or willful
misconduct on the part of the Person to be indemnified).

         11.6  Amendments, Waivers and Consents.

         Neither the Credit Agreement nor any other Credit Document nor any of
the terms thereof may be amended, changed, waived, discharged or terminated
unless such amendment, change, waiver, discharge or termination is in writing
entered into by, or approved in writing by, the Required Lenders, provided that
no such amendment, change, waiver, discharge or termination shall, without the
consent of each affected Lender, (i) extend the scheduled maturities (including
the final maturity and any mandatory prepayments) of any Loan, or any portion
thereof, or reduce the rate or extend the time of payment of interest (other
than as a result of waiving the applicability of any post-default increase in
interest rates) thereon or fees under the Credit Agreement or reduce the
principal amount thereof, or increase the Commitments of the Lenders over the
amount thereof in effect (it being understood and agreed that a waiver of any
Default or Event of Default or of a mandatory reduction in the total commitments
shall not constitute a change in the terms of any Commitment of any Lender),
(ii) release any Guarantor from its guaranty obligations under the Credit
Agreement (except as expressly provided in the Credit Documents), (iii) amend,
modify or waive any provision of this Section 11.5, (iv) reduce any percentage
specified in, or otherwise modify, the definition of "Required Lenders" or (v)
consent to the assignment or transfer by any Borrower (or Guarantor) of any of
its rights and obligations under (or in respect of) the Credit Agreement. No

                                      100
<PAGE>

provision of Section 2.2 or Section 2.6 may be amended without the consent of
the Issuing Lender, no provision of Section 2.4 may be amended without the
consent of the Swingline Lender and no provision of Section 10 may be amended
without the consent of the Agent.

         11.7  Counterparts.

         This Credit Agreement may be executed in any number of counterparts,
each of which where so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument. It shall not be necessary in
making proof of the Credit Agreement to produce or account for more than one
such counterpart.

         11.8  Headings.

         The headings of the sections and subsections hereof are provided for
convenience only and shall not in any way affect the meaning or construction of
any provision of hereof.

         11.9  Survival of Indemnification.

         All indemnities set forth in the Credit Agreement, including, without
limitation, in Section 2.2(h), 2.6(i), 3.9, 3.11, 10.7 or 11.5 shall survive the
making of the Loans, the issuance of the Letters of Credit, the repayment of the
Loans, LOC Obligations and other obligations under the Credit Documents and the
termination of the Commitments under.

         11.10  Governing Law; Submission to Jurisdiction; Venue; Arbitration.

                (a) THE CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE
         PARTIES THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
         IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA. Any legal
         action or proceeding with respect to the Credit Agreement or any other
         Credit Document may be brought in the courts of the State of North
         Carolina in Mecklenburg County, or of the United States for the Western
         District of North Carolina, and, by execution and delivery of the
         Credit Agreement, each of the Credit Parties hereby irrevocably accepts
         for itself and in respect of its property, generally and
         unconditionally, the jurisdiction of such courts. Each of the Credit
         Parties further irrevocably consents to the service of process out of
         any of the aforementioned courts in any such action or proceeding by
         the mailing of copies thereof by registered or certified mail, postage
         prepaid, to it at the address set out notices pursuant to Section 11.1,
         such service to become effective 30 days after such mailing. Nothing in
         the Credit Agreement shall affect the right of the Agent to serve
         process in any other manner permitted by law or to commence legal
         proceedings or to otherwise proceed against any Credit Party in any
         other jurisdiction.

                (b) Each of the Credit Parties hereby irrevocably waives any
         objection which it may now or after the Closing Date have to the laying
         of venue of any of the aforesaid actions or proceedings arising out of
         or in connection with the Credit Agreement or any other Credit Document

                                      101
<PAGE>

         brought in the courts referred to in subsection (a) hereof and hereby
         further irrevocably waives and agrees not to plead or claim in any such
         court that any such action or proceeding brought in any such court has
         been brought in an inconvenient forum.

                (c) EACH OF THE AGENTS, EACH OF THE LENDERS AND EACH OF THE
         CREDIT PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN
         ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
         THE CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY.

                (d) (i) Without limiting the generality of subsections (a), (b)
         and (c) of this Section 11.10, Hunt Europe and Hunt BV each agree that
         any controversy or claim with respect to it arising out of or relating
         to the Credit Agreement or any of the other Credit Documents may, at
         the option of the Agent and the Lenders, be settled immediately by
         submitting the same to binding arbitration in the City of Charlotte,
         North Carolina (or such other place as the parties may agree) in
         accordance with the Commercial Arbitration Rules then obtaining of the
         American Arbitration Association. Upon the request and submission of
         any controversy or claim for arbitration under the Credit Agreement,
         the Agent shall give Hunt Europe or Hunt BV, as applicable, not less
         than 45 days written notice of the request for arbitration, the nature
         of the controversy or claim, and the time and place set for
         arbitration. Hunt Europe and Hunt BV each agree that such notice is
         reasonable to enable it sufficient time to prepare and present its case
         before the arbitration panel. Judgment on the award rendered by the
         arbitration panel may be entered in any court in which any action could
         have been brought or maintained, including without limitation any court
         of the State of North Carolina or any Federal court sitting in the
         State of North Carolina. The expenses of arbitration shall be paid by
         Hunt Europe or Hunt BV, as applicable.

                (ii) The provisions of subsection (d)(i) above are intended to
         comply with the requirements of the Convention on the Recognition and
         Enforcement of Foreign Arbitral Awards (the "Convention"). To the
         extent that any provisions of such subsection (d)(i) are not consistent
         with or fail to conform to the requirements set out in the Convention,
         such subsection (d)(i) shall be deemed amended to conform to the
         requirements of the Convention.

                (iii) Hunt Europe and Hunt BV each hereby specifically consent
         and submit to the jurisdiction of the courts of the State of North
         Carolina and courts of the United States located in the State of North
         Carolina for purposes of entry of a judgment or arbitration award
         entered by the arbitration panel.

                (iv) Hunt Europe and Hunt BV each hereby irrevocably appoint
         Hunt as process agent in its name, place and stead (the "North Carolina
         Process Agent") to receive and forward service of any and all writs,
         summonses and other legal process in any suit, action or proceeding
         brought in the State of North Carolina, agrees that such service in any
         such suit, action or proceeding may be made upon the North Carolina
         Process Agent and agrees to take all such action as may be necessary to

                                      102
<PAGE>

         continue said appointment in full force and effect or to appoint
         another agent so that Hunt Europe and Hunt BV will at all times have an
         agent in the State of North Carolina for service of process for the
         above purposes.

         11.11  Severability.

         If any provision of any of the Credit Documents is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and
the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

         11.12  Entirety.

         The Credit Documents represent the entire agreement of the parties
thereto, and supersede all prior agreements and understandings, oral or written,
if any, including any commitment letters or correspondence relating to the
Credit Documents or the transactions contemplated therein.

         11.13  Survival of Representations and Warranties.

         All representations and warranties made by the Credit Parties in the
Credit Agreement shall survive the execution and delivery of the Credit
Agreement and the making of the Loans and the issuance of the Letters of Credit.

         11.14  Binding Effect; Termination of Credit Agreement; etc.

                (a) The Credit Agreement shall be deemed to have become
         effective at such time on or after the Closing Date when it shall have
         been executed by the Borrowers, the Guarantors and the Agent, and the
         Agent shall have received copies thereof (telefaxed or otherwise)
         which, when taken together, bear the signatures of each Lender, and
         thereafter the Credit Agreement shall be binding upon and inure to the
         benefit of the Borrowers, the Guarantors, the Agent and each Lender and
         their respective successors and assigns.

                (b) The term of the Credit Agreement shall be until no Loans,
         LOC Obligations or any other amounts payable under any of the Credit
         Documents shall remain outstanding and until all of the Commitments
         shall have expired or been terminated.

         11.15  Judgment Currency.

                (a) Each Credit Party's obligations under the Credit Agreement
         to make payments in Dollars or in any available Available Foreign
         Currency (the "Obligation Currency") shall not be discharged or
         satisfied by any tender or recovery pursuant to any judgment expressed
         in or converted into any currency other than the Obligation Currency,
         except to the extent that such tender or recovery results in the
         effective receipt by the Agent or a Lender of the full amount of the
         Obligation Currency expressed to be payable to the Agent or such Lender
         under the Credit Agreement. If, for the purpose of obtaining or

                                      103
<PAGE>

         enforcing judgment against any Credit Party in any court or in any
         jurisdiction, it becomes necessary to convert into or from any currency
         other than the Obligation Currency (such other currency being
         hereinafter referred to as the "Judgment Currency") an amount due in
         the Obligation Currency, the conversion shall be made, at the Dollar
         Equivalent or the Foreign Currency Equivalent, as applicable,
         determined in each case as of the Business Day immediately preceding
         the day on which the judgment is given (such Business Day being
         hereinafter referred to as the "Judgment Currency Conversion Date").

                (b) If there is a change in the rate of exchange prevailing
         between the Judgment Currency Conversion Date and the date of actual
         payment of the amount due, such amount payable by the applicable Credit
         Party shall be reduced or increased, as applicable, such that the
         amount paid in the Judgment Currency, when converted at the rate of
         exchange prevailing on the date of payment, will produce the amount of
         the Obligation Currency which could have been purchased with the amount
         of Judgment Currency stipulated in the judgment or judicial award at
         the rate of exchange prevailing on the Judgment Currency Conversion
         Date.

         11.16  Confidentiality.

         The Agent and the Lenders agree to keep confidential (and to cause
their respective affiliates, officers, directors, employees, agents and
representatives to keep confidential) all information, materials and documents
furnished to the Agent or any such Lender by or on behalf of Hunt or any of its
Subsidiaries (whether before or after the Closing Date) which relates to Hunt or
any of its Subsidiaries (the "Information"). Notwithstanding the foregoing, the
Agent and each Lender shall be permitted to disclose Information (i) to its
affiliates, officers, directors, employees, agents and representatives who have
a need to know such Information in connection with their work on any of the
transactions evidenced by the Credit Agreement or any other Credit Documents or
the administration of the Credit Agreement or any other Credit Documents; (ii)
to the extent required by applicable laws and regulations or by any subpoena or
similar legal process, or requested by any Governmental Authority; (iii) to the
extent such Information (A) becomes publicly available other than as a result of
a breach of the Credit Agreement or any agreement entered into pursuant to
clause (iv) below, (B) becomes available to the Agent or such Lender on a
non-confidential basis from a source other than Hunt or any of its Subsidiaries
or (C) was available to the Agent or such Lender on a non-confidential basis
prior to its disclosure to the Agent or such Lender by Hunt or any of its
Subsidiaries; (iv) to any assignee or participant (or prospective assignee or
participant) so long as such assignee or participant (or prospective assignee or
participant) first specifically agrees in a writing furnished to and for the
benefit of Hunt and its Subsidiaries to be bound by the terms of this Section
11.16; or (v) to the extent that Hunt shall have consented in writing to such
disclosure. Nothing set forth in this Section 11.16 shall obligate the Agent or
any Lender to return any materials furnished by Hunt or any of its Subsidiaries.

                                      104
<PAGE>

         11.17  Source of Funds.

         Each of the Lenders hereby represents and warrants to the Borrowers
that at least one of the following statements is an accurate representation as
to the source of funds to be used by such Lender in connection with the
financing under the Credit Agreement:

               (a)  no part of such funds constitutes assets allocated to any
               separate account maintained by such Lender in which any employee
               benefit plan (or its related trust) has any interest;

               (b)  to the extent that any part of such funds constitutes assets
               allocated to any separate account maintained by such Lender, such
               Lender has disclosed to the Borrowers the name of each employee
               benefit plan whose assets in such account exceed 10% of the total
               assets of such account as of the date of such purchase (and, for
               purposes of this subsection (b), all employee benefit plans
               maintained by the same employee or employee organization are
               deemed to be a single plan); or

               (c)  such funds constitute assets of one or more specific benefit
               plans which such Lender has identified in writing to the
               Borrowers.

As used in this Section 11.17, the terms "employee benefit plan" and "separate
account" shall have the respective meanings assigned to such terms in Section 3
of ERISA.

                           [Signature Page to Follow]

                                      105
<PAGE>

         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Credit Agreement to be duly executed and delivered as of the date first
above written.

BORROWERS:                                 HUNT CORPORATION

                                           By  /s/ William E. Chandler
                                               ---------------------------------
                                           Name   William E. Chandler
                                                  ------------------------------
                                           Title  Senior Vice President, Finance
                                                  ------------------------------

                                           HUNT GRAPHICS EUROPE LIMITED

                                           By  /s/ William E. Chandler
                                               ---------------------------------
                                           Name   William E. Chandler
                                                  ------------------------------
                                           Title  Director
                                                  ------------------------------

                                           HUNT GRAPHICS EUROPE B.V.

                                           By  /s/ William E. Chandler
                                               ---------------------------------
                                           Name   William E. Chandler
                                                  ------------------------------
                                           Title  Director
                                                  ------------------------------

GUARANTORS:                                HUNT HOLDINGS, INC.

                                           By  /s/ William E. Chandler
                                               ---------------------------------
                                           Name   William E. Chandler
                                                  ------------------------------
                                           Title  Vice President, Treasurer
                                                  ------------------------------

                                           HUNT X-ACTO, INC.

                                           By  /s/ William E. Chandler
                                               ---------------------------------
                                           Name   William E. Chandler
                                                  ------------------------------
                                           Title  Senior Vice President
                                                  ------------------------------

                                           HUNT GRAPHICS AMERICAS
                                           CORPORATION

                                           By  /s/ William E. Chandler
                                               ---------------------------------
                                           Name   William E. Chandler
                                                  ------------------------------
                                           Title  Senior Vice President
                                                  ------------------------------

                                      S-1

<PAGE>

LENDERS:                                   BANK OF AMERICA, N.A.,
                                           individually in its capacity as a
                                           Lender and in its capacity as Agent

                                           By  /s/ Robert M. Searson
                                               ---------------------------------
                                           Name   Robert M. Searson
                                                  ------------------------------
                                           Title  Senior Vice President
                                                  ------------------------------

                              [Signatures Continue]

                                      S-2

<PAGE>

                                        FIRST UNION NATIONAL BANK

                                        By   /s/ Thomas C. Woodward
                                             -----------------------------------
                                        Name   Thomas C. Woodward
                                               ---------------------------------
                                        Title  Senior Vice President
                                               ---------------------------------

                              [Signatures Continue]

                                      S-3
<PAGE>

                                        NATIONAL CITY BANK

                                        By   /s/ Marissa Mignogna
                                             -----------------------------------
                                        Name   Marissa Mignogna
                                               ---------------------------------
                                        Title  Assistant Vice President
                                               ---------------------------------

                              [Signatures Continue]

                                      S-4

<PAGE>

                                          MELLON BANK, N.A.

                                          By   /s/ Jonathan H. Sprogell
                                               ---------------------------------
                                          Name   Jonathan H. Sprogell
                                                 -------------------------------
                                          Title  First Vice President
                                                 -------------------------------

                                      S-5

<PAGE>

                                  Schedule 1.1A
                                  --------------

                           EXISTING LETTERS OF CREDIT

<PAGE>

                                  Schedule 1.1B
                                  -------------

                            CALCULATION OF MLA COSTS

         The MLA Cost for any Foreign Currency Loan made by any Lender is
calculated by each Lender (and rounded upward, if necessary, to four decimal
places) (such calculation then to be notified to the Agent by each Lender) as
the rate resulting from the application of the following formula:

         XL + S(L - D) + F x 0.01 % per annum = MLA Cost
         ------------------------
              100 - (X+S)

         where on the day of application of the formula:

         X        is the percentage of Eligible Liabilities (in excess of any
                  stated minimum) by reference to which the relevant Lender is
                  required under or pursuant to the Act to maintain cash ratio
                  deposits with the Bank of England;

         L        is the percentage rate per annum at which sterling deposits
                  for the relevant period are offered by the relevant Lender to
                  leading banks in the London Interbank Market at or about 11:00
                  a.m. (London time) on that day.

         F        is the rate of charge payable by the relevant Lender to the
                  FSA pursuant to paragraph 2.02 or 2.03 (as the case may be) of
                  the Fees Regulations (but where for this purpose, the figure
                  at paragraph 2.02 b and 2.03 b shall be deemed to be zero) and
                  expressed in pounds per (pound)1 million of the Fee Base of
                  the relevant Lender.

         S        is the level of interest-bearing Special Deposits, expressed
                  as a percentage of Eligible Liabilities, which the relevant
                  Lender is required to maintain by the Bank of England (or
                  other United Kingdom governmental authorities or agencies);
                  and

         D        is the percentage rate per annum payable by the Bank of
                  England to the relevant Lender on Special Deposits.

         (X, L, S and D are to be expressed in the formula as numbers and not as
         percentages. A negative result obtained from subtracting D from L shall
         be counted as zero.)

         The MLA Cost attributable to any Loan or other sum for any period shall
         be calculated at or about 11:00 a.m. (London time) on the first day of
         such period for the duration of such period by reference to the
         circumstances existing on the first day of the relevant period and for
         the duration of such period.

         The determination of the MLA Cost in relation to any period shall in
         the absence of manifest error, be conclusive and binding on the parties
         hereto.

<PAGE>

         If there is any change in circumstance (including the imposition of
         alternative or additional requirements) which in the reasonable opinion
         of the Agent renders or will render the above formula (or any element
         thereof, or any defined term used therein) inappropriate or
         inapplicable or the Agent otherwise determines that the above formula
         is inappropriate, the Agent, following notice to Hunt Europe and Hunt
         BV, shall be entitled to vary the same. Any such variation shall, in
         the absence of manifest error, be conclusive and binding on the parties
         and shall apply from the date specified in such notice.

         For the purposes of this Schedule:

                  The terms Eligible Liabilities and Special Deposits shall bear
                  the meanings ascribed to them under or pursuant to the Act or
                  by the Bank of England (as may be appropriate), on the day of
                  the application of the formula.

                  Fee Base has the meaning ascribed to it for the purposes of,
                  and shall be calculated in accordance with, the Fees
                  Regulations.

                  Fees Regulations means, as appropriate, either:

                  (a)   the Banking Supervision (Fees) Regulations 1998; or

                  (b)   such regulations as from time to time may be in force,
                        relating to the payment of fees for banking supervision
                        in respect of periods subsequent to 31 March 1999.

Any reference to a provision of any statute, directive, order or regulation
herein is a reference to that provision as amended or reenacted from time to
time.

<PAGE>

                                  Schedule 1.1C
                                  -------------

                           FORM OF NOTICE OF BORROWING

Bank of America, N.A.,
  as Agent for the Lenders
101 N. Tryon Street
Independence Center, 15th Floor
NC1-001-15-04
Charlotte, North Carolina  28255*
Attention:  Agency Services

Ladies and Gentlemen:

         The undersigned, [Hunt Corporation][Hunt Graphics Europe Limited] [Hunt
Graphics Europe B.V.] refers to the Amended and Restated of Credit Agreement
dated as of September 12, 2000 (as it may be amended, modified, extended or
restated from time to time, the "Credit Agreement"), among the Borrowers, the
other Credit Parties party thereto, the Lenders party thereto and Bank of
America, N.A., as Agent.

         Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement.

         The undersigned hereby gives you notice that it requests a [Revolving
Loan advance in accordance with the provisions of Section 2.1 of the Credit
Agreement][Foreign Currency Loan advance in accordance with the provisions of
Section 2.5 of the Credit Agreement] and in connection therewith sets forth
below the terms on which such Loan advance is requested to be made:

(A)   Date of Borrowing
      (which is a Business Day)  _______________________

(B)   Principal Amount of
      Borrowing                  _______________________

----------------
   * All original notices with respect to Foreign Currency Loans shall be sent
to the address set forth in Section 3.14(b) of the Credit Agreement for payments
in an Available Foreign Currency with a copy to the address set forth in Section
3.14(b) of the Credit Agreement for payments in Dollars.

<PAGE>

(C)   Interest Period and the
      last day thereof                   _______________________

(D)   Interest rate basis**              _______________________

[(E)  Available Foreign Currency         _______________________]

         The delivery of this Notice of Borrowing shall constitute a
representation and warranty by the undersigned of the correctness of the matters
specified in subsections (ii), (iii), (iv), (v) and (vi) of Sections 5.2.

                                        Very truly yours,

                                        [HUNT CORPORATION]
                                        [HUNT GRAPHICS EUROPE LIMITED]
                                        [HUNT GRAPHICS EUROPE B.V.]

                                        By _____________________________________
                                        Title:

------------------------
   ** All Foreign Currency Loans will bear interest on the basis of the
Eurodollar Rate.

<PAGE>

                                  Schedule 1.1D
                                  -------------

                     FORM OF NOTICE OF EXTENSION/CONVERSION

Bank of America, N.A.,
  as Agent for the Lenders
101 N. Tryon Street
Independence Center, 15th Floor
NC1-001-15-04
Charlotte, North Carolina  28255*
Attention:  Agency Services

Ladies and Gentlemen:

         The undersigned, [Hunt Corporation][Hunt Graphics Europe Limited] [Hunt
Graphics Europe B.V.], refers to the Amended and Restated Credit Agreement dated
as of September 12, 2000 (as amended, modified, extended or restated from time
to time, the "Credit Agreement"), among the Borrowers, the other Credit Parties
party thereto, the Lenders and Bank of America, N.A., as Agent.

         Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement.

         The undersigned hereby gives notice pursuant to Section 3.2 of the
Credit Agreement that it requests an extension or conversion of a Loan
outstanding under the Credit Agreement, and in connection herewith sets forth
below the terms on which such extension or conversion is requested to be made:

(A)   Type of Loan                            ______________________

(B)   Date of Extension or Conversion
      (which is the last day of the
      the applicable Interest Period)         _______________________

(C)   Principal Amount of
      Extension or Conversion                 _______________________

-------------------
     * All original notices with respect to Foreign Currency Loans shall be sent
to the address set forth in Section 3.14(b) of the Credit Agreement for payments
in an Available Foreign Currency with a copy to the address set forth in Section
3.14(b) of the Credit Agreement for payments in Dollars.

<PAGE>

(D)   Interest Period and the
      last day thereof                   _______________________

(E)   Interest rate basis**              _______________________

         The delivery of this Notice of Extension/Conversion shall constitute a
representation and warranty by the undersigned of the correctness of the matters
specified in subsections (ii), (iii), (iv), (v) and (vi) of Sections 5.2.

                                         Very truly yours,

                                         [HUNT CORPORATION]
                                         [HUNT GRAPHICS EUROPE LIMITED]
                                         [HUNT GRAPHICS EUROPE B.V.]

                                         By:____________________________________
                                         Title:

----------------
     ** All Foreign Currency Loans will bear interest on the basis of the
Eurodollar Rate.

<PAGE>

                                  Schedule 1.1E
                                  -------------

                                   INVESTMENTS

<PAGE>

                                  Schedule 1.1F
                                  -------------

                                      LIENS

<PAGE>

                                 Schedule 2.1(a)
                                 --------------

                                     LENDERS

================================================================================
                                           Revolving            Commitment
      Name and Address of Lender           Commitment           Percentage
--------------------------------------------------------------------------------
Bank of America, N.A.
Independence Center, 15th Floor
101 North Tryon Street
Charlotte, North Carolina  28255
Attn:  Agency Services                     $25,000,000              50%
--------------------------------------------------------------------------------
National City Bank
One South Broad Street
13th Floor Loc 01-5997
Philadelphia, PA  19107
Attn:  Marissa Mignogna                    $7,500,000               15%
--------------------------------------------------------------------------------
First Union National Bank
123 South Broad Street
Philadelphia, Pennsylvania  19109
Attn: Wynelle Farlow                       $10,000,000              20%
--------------------------------------------------------------------------------
Mellon Bank, N.A.
Plymouth Meeting Executive Campus
610 West Germanton Pike, Suite 200
Plymouth Meeting, Pennsylvania  19462
Attn:  Jonathan Sprogell                   $7,500,000               15%
================================================================================

<PAGE>

                                Schedule 2.3(b)-1
                                -----------------

                         FORM OF COMPETITIVE BID REQUEST

Bank of America, N.A.,
  as Agent for the Lenders
101 N. Tryon Street
Independence Center, 15th Floor
NC1-001-15-04
Charlotte, North Carolina  28255
Attention:  Agency Services

Ladies and Gentlemen:

        The undersigned, Hunt Corporation (the "Borrower") refers to the Amended
and Restated Credit Agreement dated as of September 12, 2000 (as it may be
amended, modified, extended or restated from time to time, the "Credit
Agreement"), among the Borrower, Hunt Graphics Europe Limited, the other Credit
Parties party thereto, the Lenders party thereto and Bank of America, N.A., as
Agent. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Credit Agreement. The Borrower hereby
gives you notice pursuant to Section 2.3(b) of the Credit Agreement it requests
solicitation of Competitive Bids under the Credit Agreement, and in connection
therewith sets forth below the terms on which the related Competitive Loan
borrowing is requested to be made:

(A)   Date of Competitive Loan borrowing
      (which is a Business Day)                 __________________

(B)   Principal amount of
      Competitive Loan borrowing                __________________

(C)   Interest Period and the last
      day thereof                               __________________

         The delivery of this Competitive Bid Request shall constitute a
representation and warranty by the Borrower of the correctness of the matters
specified in subsections (ii), (iii), (iv), (v) and (vi) of Sections 5.2.

                                        Very truly yours,

                                        HUNT CORPORATION

                                        By:_____________________________________
                                        Title:__________________________________

<PAGE>

                                Schedule 2.3(b)-2
                                -----------------

              FORM OF NOTICE OF RECEIPT OF COMPETITIVE BID REQUEST

[Name of Lender]
[Address]

Attention:

Dear Sirs:

         Reference is made to the Amended and Restated Credit Agreement dated as
of September 12, 2000 (as it may be amended, modified, extended or restated from
time to time, the "Credit Agreement"), among Hunt Corporation (the "Borrower"),
Hunt Graphics Europe Limited, the other Credit Parties party thereto, the
Lenders party thereto and Bank of America, N.A., as Agent. Capitalized terms
used herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Credit Agreement. The Borrower made a Competitive Bid Request
on _____________, 20__, pursuant to Section 2.3(b) of the Credit Agreement, and
in that connection you are invited to submit a Competitive Bid by 10:00 A.M.
(Charlotte, North Carolina time) ______________, 20__ [Date of Proposed
Competitive Loan Borrowing]. Your Competitive Bid must comply with Section
2.3(c) of the Credit Agreement and the terms set forth below on which the
Competitive Bid Request was made:

(A)   Date of Competitive Borrowing         __________________

(B)   Principal amount of
      Competitive Borrowing                 __________________

(C)   Interest Period and the last
      day thereof                           __________________

                                       Very truly yours,

                                       BANK OF AMERICA, N.A., as Agent

                                       By________________________________

                                       Title:____________________________

<PAGE>

                                 Schedule 2.3(c)
                                 ---------------

                             FORM OF COMPETITIVE BID

Bank of America, N.A.,
    as Agent for the Lenders
101 N. Tryon Street
Independence Center, 15th Floor
NC1-005-15-04
Charlotte, North Carolina  28255
Attn:  Agency Services

Ladies and Gentlemen:

         The undersigned, [Name of Lender], refers to the Amended and Restated
Credit Agreement dated as of September 12, 2000 (as it may be amended, modified,
extended or restated from time to time, the "Credit Agreement"), among Hunt
Corporation (the "Borrower"), Hunt Graphics Europe Limited, the other Credit
Parties party thereto, the Lenders party thereto and Bank of America, N.A., as
Agent. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Credit Agreement. The undersigned
hereby makes a Competitive Bid pursuant to Section 2.3(c) of the Credit
Agreement, in response to the Competitive Bid Request made by the Borrower on
________________, 20__, and in that connection sets forth below the terms on
which such Competitive Bid is made:

(A)   Principal Amount              ____________________

(B)   Competitive Bid Rate          ____________________

(C)   Interest Period and last
      day thereof                   ____________________

         The undersigned hereby confirms that it is prepared, subject to the
conditions set forth in the Credit Agreement, to extend credit to the Borrower
upon acceptance by the Borrower of this bid in accordance with Section 2.3(e) of
the Credit Agreement.

                                    Very truly yours,

                                    [NAME OF LENDER]

                                    By:______________________________

                                    Title:___________________________

<PAGE>

                                 Schedule 2.3(e)
                                 ---------------

                  FORM OF COMPETITIVE BID ACCEPT/REJECT LETTER

Bank of America, N.A.,
     as Agent for the Lenders
101 N. Tryon Street
Independence Center, 15th Floor
NC1-005-15-04
Charlotte, North Carolina  28255
Attn:  Agency Services

Ladies and Gentlemen:

         The undersigned, Hunt Corporation (the "Borrower") refers to the
Amended and Restated Credit Agreement dated as of September 12, 2000 (as it may
be amended, modified, extended or restated from time to time, the "Credit
Agreement"), among the Borrower, Hunt Graphics Europe Limited, the other Credit
Parties party thereto, the Lenders party thereto and Bank of America, N.A., as
Agent.

         In accordance with Section 2.3(e) of the Credit Agreement, in
connection with our Competitive Bid Request dated ______________ and in
accordance with Section 2.3(e) of the Credit Agreement, we hereby accept the
following bids for maturity on [date]:

Principal Amount           Competitive Bid Rate                   Lender
----------------           --------------------                   ------

$                                  [%]
$                                  [%]

We hereby reject the following bids:

Principal Amount           Competitive Bid Rate                    Lender
----------------           --------------------                    ------

$                                  [%]
$                                  [%]

                                          Very truly yours,

                                          HUNT CORPORATION

                                          By:_____________________________
                                          Title:__________________________

<PAGE>

                                  Schedule 6.9
                                  ------------

                              INTELLECTUAL PROPERTY

<PAGE>

                                  Schedule 6.12
                                  -------------

                                ERISA DISCLOSURES

<PAGE>

                                  Schedule 6.14
                                  -------------

                                  SUBSIDIARIES

<PAGE>

                                  Schedule 6.16
                                  -------------

                            ENVIRONMENTAL DISCLOSURES

<PAGE>

                                 Schedule 7.1(c)
                                 ---------------
                    FORM OF OFFICER'S COMPLIANCE CERTIFICATE

        For the fiscal quarter ended _________________, 20___.

        I, ____________________, Chief Financial Officer, of Hunt Corporation
(the "Borrower") hereby certify that, to the best of my knowledge and belief,
with respect to that certain Amended and Restated Credit Agreement dated as of
September 12, 2000 (as amended, modified, extended or restated from time to
time, the "Credit Agreement"; all of the defined terms in the Credit Agreement
are incorporated herein by reference) among the Borrower, Hunt Graphics Europe
Limited, the other Credit Parties party thereto, the Lenders party thereto and
Bank of America, N.A., as Agent:

        a.   The company-prepared financial statements which accompany this
             certificate are true and correct in all material respects and have
             been prepared in accordance with generally accepted accounting
             principles applied on a consistent basis, subject to changes
             resulting from normal year-end audit adjustments.

        b.   Since ___________ (the date of the last similar certification, or,
             if none, the Closing Date) no Default or Event of Default has
             occurred under the Credit Agreement; and

Delivered herewith are detailed calculations demonstrating compliance by the
Credit Parties with the financial covenants contained in Section 7.11 of the
Credit Agreement as of the end of the fiscal period referred to above.

        This ______ day of ___________, 20__.

                                     HUNT CORPORATION

                                     --------------------------------
                                     Title:

<PAGE>

                       Attachment to Officer's Certificate
                       -----------------------------------

                       Computation of Financial Covenants

<PAGE>

                                  Schedule 7.12
                                  -------------

                            FORM OF JOINDER AGREEMENT

        THIS JOINDER AGREEMENT (the "Agreement"), dated as of _____________,
20__, is by and between _____________________, a ___________________ (the
"Subsidiary"), and BANK OF AMERICA, N.A., in its capacity as Agent under that
certain Amended and Restated Credit Agreement (as it may be amended, modified,
extended or restated from time to time, the "Credit Agreement"), dated as of
September 12, 2000, by and among HUNT CORPORATION, a Pennsylvania corporation
(the "Borrower"), the other Credit Parties party thereto, the Lenders party
thereto and Bank of America, N.A., as Agent. All of the defined terms in the
Credit Agreement are incorporated herein by reference.

        The Borrower is required by, or has otherwise elected pursuant to,
Section 7.12 of the Credit Agreement to cause the Subsidiary to become a
"Guarantor".

        Accordingly, the Subsidiary hereby agrees as follows with the Agent, for
the benefit of the Lenders:

        1. The Subsidiary hereby acknowledges, agrees and confirms that, by its
execution of this Agreement, the Subsidiary will be deemed to be a party to the
Credit Agreement and a "Guarantor" for all purposes of the Credit Agreement, and
shall have all of the obligations of a Guarantor thereunder as if it had
executed the Credit Agreement. The Subsidiary hereby ratifies, as of the date
hereof, and agrees to be bound by, all of the terms, provisions and conditions
contained in the Credit Agreement, including without limitation (i) all of the
representations and warranties set forth in Section 6 of the Credit Agreement as
they relate to such Subsidiary, (ii) all of the affirmative and negative
covenants set forth in Sections 7 and 8 of the Credit Agreement and (iii) all of
the undertakings and waivers set forth in Section 3 of the Credit Agreement
(subject to the limitations set forth therein). Without limiting the generality
of the foregoing terms of this paragraph 1, the Subsidiary hereby (i) subject to
the limitation set forth in Section 4.1 of the Credit Agreement, jointly and
severally together with the other Guarantors, guarantees to each Lender and the
Agent, as provided in Section 4 of the Credit Agreement, the prompt payment and
performance of the Borrowers' Obligations in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in
accordance with the terms thereof and (ii) agrees that if any of the Borrowers'
Obligations are not paid or performed in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration or otherwise), the
Subsidiary will, jointly and severally together with the other Guarantors,
promptly pay and perform the same, without any demand or notice whatsoever, and
that in the case of any extension of time of payment or renewal of any of the
Borrowers' Obligations, the same will be promptly paid in full when due (whether
at extended maturity, as a mandatory prepayment, by acceleration or otherwise)
in accordance with the terms of such extension or renewal.

<PAGE>

        2. This Agreement may be executed in two or more counterparts, each of
which shall constitute an original but all of which when taken together shall
constitute one contract.

        IN WITNESS WHEREOF, the Subsidiary has caused this Joinder Agreement to
be duly executed by its authorized officers, and the Agent, for the benefit of
the Lenders, has caused the same to be accepted by its authorized officer, as of
the day and year first above written.

                                     [SUBSIDIARY]

                                     By____________________________

                                     Title_________________________

                                     Acknowledged and accepted:

                                     BANK OF AMERICA, N.A., as Agent

                                     By______________________________

                                     Title___________________________

<PAGE>

                                  Schedule 8.1
                                  ------------

                                  INDEBTEDNESS

<PAGE>

                                Schedule 11.3(b)
                                ----------------

                        FORM OF ASSIGNMENT AND ACCEPTANCE

        THIS ASSIGNMENT AND ACCEPTANCE dated as of ________, 200_ is entered
into between ________________ ("Assignor") and ____________________
("Assignee").

        Reference is made to the Amended and Restated Credit Agreement dated as
of September 12, 2000, as amended and modified from time to time thereafter (the
"Credit Agreement") among Hunt Corporation, Hunt Graphics Europe Limited, Hunt
Graphics Europe B.V., the other Credit Parties party thereto, the Lenders party
thereto and Bank of America, N.A., as Agent. Terms defined in the Credit
Agreement are used herein with the same meanings.

        1. The Assignor hereby sells and assigns, without recourse, to the
Assignee, and the Assignee hereby purchases and assumes, without recourse, from
the Assignor, effective as of the Effective Date set forth below, the interests
set forth below (the "Assigned Interest") in the Assignor's rights and
obligations under the Credit Agreement, including, without limitation, the
interests set forth below in the Commitments of the Assignor on the effective
date of the assignment designated below (the "Effective Date") and the Revolving
Loans owing to the Assignor which are outstanding on the Effective Date,
together with unpaid interest accrued on the assigned Loans to the Effective
Date and the amount, if any, set forth below of the Fees accrued to the
Effective Date for the account of the Assignor. Each of the Assignor and the
Assignee hereby makes and agrees to be bound by all the representations,
warranties and agreements set forth in Section 11.3(b) of the Credit Agreement,
a copy of which has been received by each such party. From and after the
Effective Date (i) the Assignee, if it is not already a Lender under the Credit
Agreement, shall be a party to and be bound by the provisions of the Credit
Agreement and, to the extent of the interests assigned by this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the
Assignor shall, to the extent of the interests assigned by this Assignment and
Acceptance, relinquish its rights and be released from its obligations under the
Credit Agreement.

         2. This Assignment and Acceptance shall be governed by and construed in
accordance with the laws of the State of North Carolina.

         3. Terms of Assignment

           (a)  Date of Assignment:

           (b)  Legal Name of Assignor:

           (c)  Legal Name of Assignee:

           (d)  Effective Date of Assignment:

<PAGE>

         (e)  Revolving Loan Commitment
              Percentage Assigned (expressed
              as a percentage set forth
              to at least 8 decimals)                                       %

         (f)  Revolving Loan Commitment
              Percentage of Assignor after
              Assignment (set forth to at
              least 8 decimals)                                             %

         (g)  Total Revolving Loans outstanding
              as of Effective Date                             $_____________

         (h)  Principal Amount of Revolving
              Loans assigned on Effective
              Date (the amount set forth
              in (g) multiplied by the
              percentage set forth in (e))                     $_____________

         (i)  Total Foreign Currency Loans
              outstanding as of Effective Date                 $_____________

         (j)  Principal Amount of Foreign
              Currency Loans assigned on
              Effective Date (the amount
              set forth in (i) multiplied
              by the percentage set forth in (e))              $_____________

The terms set forth above are hereby agreed to:

____________________, as Assignor

By:______________________________
Title:

_____________________, as Assignee

By:______________________________
Title:

<PAGE>

CONSENTED TO:

BANK OF AMERICA, N.A., as Agent

By:_____________________________
Title:

HUNT CORPORATION

By:_____________________________
Title:

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