Document:

<PAGE>

Exhibit 10.25

July 8, 1999

Bob Barbiere
Vice President
Arbinet
226 E. 54th Street
New York, New York  10022

Re: IT Assessment

Dear Bob:

Thank you for selecting Breakaway, as a provider of business and technology
services to your company. Breakaway, provides quality services using
professional methods, procedures and personnel to help you and your company
accomplish your business objectives in a timely manner.

In order to begin this relationship between Arbinet and Breakaway, we recognize
the importance of having a clear definition of the goals and objectives of this
engagement. A successful relationship requires active and informed involvement
on the part of both organizations. Clearly defined ground rules reduce
misunderstandings that could impact the expected results and help maintain an
optimum delivery environment.

The following represents the consulting agreement and understanding between
Breakaway and Arbinet:

1.       UNDERSTANDING AND SCOPE OF SERVICES

The scope of this project is to:

         1.       Assess the current state of Arbinet online exchange
                  initiative.

         2.       Provide the recommended solution as required.

The design of the IT Assessment is the following:

          Balances business and technical perspectives
          Evolved from architectural and organizational research funded by DARPA
          Leverages Breakaway's insight and experiences into the venture space
<PAGE>

         Packages consulting services into fixed price, tangible deliverable (8
         to 10 page report)
         Productize service to maximize the value, minimize the costs, and
         ensure quality
         Focus on rapid turn around to support deal cycle

The approach for the IT assessment is the following:

         Review Business Plan
         Construct detail Evaluation Workbook prior to visit based upon
         industry, enabling technologies, and business plan review
         One day visit to venture's facility
         Conduct 1 hr structured interviews with a cross-section of the
         venture's management & technical team: CEO, VP Marketing, VP of
         Technology, and 2-3 developers
         Post-visit research on key issues and competitors
         Development of 8 to 10 page report by 7/19/99

The deliverable (report) format is the following:

         Introduction
         Findings
         People
         Business Model
         Enabling Technology
         Competitive Forces
         Evaluation Steps

The overall benefits of this approach constitutes the following:

         Proven approach that has been used on more than 30 engagements
         Senior evaluators who have thrived in both the Fortune 500 and start-up
         worlds
         Objective and detailed review of business model and enabling technology
         Frank assessment of management teams' experience and capacity
         Identification of competitive forces
         Rapid turn around with minimal impact on venture
         Detailed/Actionable 8-10 page report

                                        2
<PAGE>

2.       ASSUMPTIONS

The following assumptions have been made in setting the pricing specified above.
Any deviation from these assumptions may increase the cost of the project.

         The named resources from Arbinet must be available on a full time basis
         during the one day IT Assessment session (i.e., Bob Barbiere, Tony
         Craig, and members of the technical staff).
         Breakaway must have access to the business plan prior to the beginning
         of the assessment period.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
ARBINET RESOURCE          PREP (DAYS)      IT ASSESSMENT           ASSESSMENT
                                           SESSION (DAYS)          REVIEW (DAYS)
--------------------------------------------------------------------------------
<S>                       <C>              <C>                     <C>
Bob Barbiere, VP          0.25             1                       0.25
--------------------------------------------------------------------------------
Tony Craig, CEO           0                1                       0.25
--------------------------------------------------------------------------------
Ken Amron, VP
Development
--------------------------------------------------------------------------------
Alex Mashinsky
Founder, Acting CTO
--------------------------------------------------------------------------------
</TABLE>

NOTE: THE TIME NECESSARY FOR THESE RESOURCES MAY INCREASE AND/OR DECREASE
DEPENDING ON THE LEVEL OF SPECIFICITY REQUIRED BY THE CLIENT TEAM. WE ANTICIPATE
THAT EACH FULL DAY OF CLIENT TEAM EFFORT WILL CONSTITUTE 6 HOURS/DAY.

3.       TIME FRAME

We will make every effort to begin this project as soon as possible, after
contract signing. Projects can generally begin, 2 weeks from receiving a signed
agreement based on staffing requirements. We will work with you to reach an
agreeable time frame. Our resource availability is highly dependent upon when
the services contract is signed by our client. We have schedule d a July 15th
date for this initiative.

Upon completion of the IT Assessment process Breakaway will assume that the
client (Arbinet) will proceed with the 360 Workshop and the development phase of
the project lifecycle.

                                        3
<PAGE>

The first stage of our development process is termed an AIM (Accelerated
Implementation Model).

4.       RESOURCES

Breakaway will provide resources for the project to be assigned on an as needed
basis. Project resources are described below:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
        BREAKAWAY RESOURCE           PREP      SITE VISIT       DELIVERABLE
                                    (DAYS)    SESSION (DAYS)    PREPARATION
                                                                 & REVIEW
--------------------------------------------------------------------------------
<S>                                  <C>          <C>              <C>
Internet Solutions VP                  0            1                .5
--------------------------------------------------------------------------------
Internet Solutions Managing            0            1               1.5
Director
--------------------------------------------------------------------------------
Senior Consultant                      1            1               1
--------------------------------------------------------------------------------
</TABLE>

5.       COST AND PAYMENT TERMS

Professional service fees stated below constitute a fixed price bid.

The fixed price bid is INCLUSIVE of out-of-pocket expenses. Out-of-pocket
expenses will include and not be limited to travel, hotel and meal per diems. In
building a business partnership with Arbinet, Breakaway is confident that this
will be a long-term and mutually beneficial one, and so expense payment is
waived at this time.

Professional service fees for the IT Assessment is listed below. We require a
50% deposit prior to beginning work. This bid is effective through July 14, 1999
and is subject to change.

ARBINET DISCOUNTED COST:

<TABLE>
<CAPTION>
---------------------------------------
  PROJECT PHASE             FIXED PRICE
---------------------------------------
<S>                          <C>
ITT Assessment               $10,000
---------------------------------------
Total                        $10,000
---------------------------------------
</TABLE>

                                        4
<PAGE>

The contents of the attached Standard Terms and Conditions of Breakaway are
hereby incorporated by reference, as fully stated herein.

We look forward to the opportunity to provide these services to you. Should you
have any questions, please call me at your convenience.

Very truly yours,

Thomas D. Berger
Regional Account Manager
Breakaway Solutions

                                        5
<PAGE>

AGREEMENT

By evidence of their signature below, both parties agree to the terms and
conditions as set forth in this Engagement Letter.

Arbinet                              Breakaway Solutions, Inc.

By: /s/ Robert Barbierie             By:
   -------------------------            -------------------------

Title:  VP Bus & Mrkt. Dev.          Title:
      ----------------------               ----------------------

Date: 7/11/99                        Date:
     -----------------------              -----------------------

STANDARD TERMS AND CONDITIONS

Professional Fees & Expenses

Except for work within the scope of a fixed price engagement, we determine our
fees by actual time spent, based upon our standard rates, as stated in an
Engagement Letter. Our standard workday is normally 10 hours, but there are no
additional charges or fee premiums for "over-time." If during the course of the
engagement, we determine circumstances are such that substantially greater work
is required than is estimated we will not move forward without prior written
approval.

Reasonable out-of-pocket expenses are billed in addition to consulting time.
Out-of-pocket expenses are not normally included in estimates, but remain the
responsibility of the client.

DEPOSIT AND PAYMENT TERMS

Unless otherwise specified in an Engagement Letter, a deposit on account of 50%
of the Engagement Letter's _____ is payable upon execution of the Engagement
Letter. The deposit will be applied against the open balance at the conclusion
of the project. Invoices will be sent semi-monthly, and all invoices are payable
upon receipt.

                                        6
<PAGE>

INTELLECTUAL PROPERTY RIGHTS

In the course of the consulting engagement, Breakaway Solutions Inc., may use
enhancements, discoveries, processes, methods, designs and know-how, whether or
not they may be copyrighted or patented, which Breakaway Solutions Inc.
conceived during the course of other consulting engagements. In addition,
Breakaway Solutions Inc. may independently develop enhancements, processes,
methods, designs or know-how during the term of this consulting engagement and
The Client acknowledges that Breakaway Solutions Inc. may use such enhancements,
processes, methods, designs and know-how in its business operations with other
clients.

LIMITATION LIABILITY

The entire liability of Breakaway Solutions Inc. to The Client, or any other
party for any loss or damage resulting from any claims, demands or actions
arising out of an Engagement Letter or the performance of or failure to perform
specific consulting services shall not exceed the fees paid to Breakaway
Solutions Inc. for the software and services rendered, except in the case of
gross negligence or intentional misconduct on the part of The Counsel Group, in
which case Breakaway Solutions Inc. will bear the cost of remedying the damage
caused by its gross negligence or intentional misconduct within 30 days of the
occurrence.

In no event will Breakaway Solutions Inc. be liable for any indirect,
incidental, consequential, special or exemplary damages whatsoever (including
without limitation damages for loss of business profits, business interruption,
loss of business information, or other pecuniary loss) arising out of this
Engagement Letter for the performance of specific consulting services or for
acts of negligence that are not reckless or intentional in nature, even if the
party has been advised of the possibility of such damages.

CONFIDENTIALITY

During the course of performing services, Breakaway Solutions Inc. and The
Client may have access to information that is confidential to one another
("Confidential Information"), including without limitation, source code,
documentation, specifications, data bases, system design, file layouts, tool
combinations, development methods. Confidential Information also includes
business or financial affairs, which may incorporate business methods, marketing
strategies, pricing, competitor information, product development strategies and
methods, costumer lists and financial results. Confidential Information also
includes information received from others, both written and oral, that each
party is obligated to treat as confidential. Confidential Information shall

                                        7
<PAGE>

not include any information that (1) is already known by the recipient party or
its affiliates, free of any obligation to keep it confidential, (2) is or
becomes publicly known through no wrongful act of the receiving party or its
affiliates, (3) is received by the receiving party from a third party without
any restriction on confidentiality, (4) is independently developed by the
receiving party or its affiliates, (5) is disclosed to third parties by the
disclosing party without any obligation of confidentiality, or (6) is approved
for release by prior written authorization of the disclosing party.

The parties agree to maintain the confidentiality of the Confidential
Information and to protect as a trade secret any portion of the other party's
Confidential Information by preventing any unauthorized copying, use,
distribution, installation or transfer of possession of such information. Each
party agrees to maintain at least the same procedures regarding Confidential
Information that it maintains with respect to its own Confidential Information.
Each party may use the Confidential Information received from the other party
only in connection with fulfilling its obligations under a consulting
engagement.

INDEPENDENT CONTRACTOR

Breakaway Solutions Inc. is an independent contractor. Neither Breakaway
Solutions Inc. nor The Client are, or shall be deemed for any purpose to be,
employees or agents of the other and neither party shall have the power or
authority to bind the other party to any contract or obligation. Breakaway
Solutions Inc. shall retain the right to perform work for others during the term
of a consulting engagement.

REGARDING BREAKAWAY SOLUTIONS INC. EMPLOYEES

Whereas Breakaway Solutions Inc. regards its employees as valuable assets, it is
expected that The Client will in no way solicit for hire or for consulting
services outside of a consulting engagement with Breakaway Solutions Inc.
without written authorization from the President of Breakaway Solutions Inc. for
a period of at least one year following termination of such employee from
Breakaway Solutions Inc. If authorization is given to client to hire any
Breakaway Solutions Inc. employee, it is expected that satisfactory compensation
will be given to Breakaway Solutions Inc. for such privilege, which will be
agreed upon by both parties.

                                        8
<PAGE>

INSURANCE

Breakaway Solutions Inc. warrants that it maintains all normal business
insurance required for a Delaware corporation doing business in the Commonwealth
of Massachusetts.

WARRANTIES

Breakaway Solutions Inc. warrants that it has full power and authority to enter
into a Consulting Engagement with The Client. Breakaway Solutions Inc. warrants
that all services will be performed consistent with generally accepted industry
standards and in a workmanlike manner by qualified personnel. Breakaway
Solutions Inc. disclaims all other warranties, either express or implied,
including but not limited to implied warranties of merchantability and fitness
for a particular purpose, with respect to products and services that may be
provided herein.

Third-party commercial software vendors offer warranties for software licenses
purchased by The Client. Breakaway Solutions Inc. DOES NOT warrant in any way
software manufactured by any third-party.

TERMINATION

Either party may terminate services performed under this agreement with 10 days
notice to the other party without cause, or immediately with reasonable cause.
Work not performed to the reasonable satisfaction of The Client, or failure
reasonably to pay invoices for services rendered shall be considered reasonable
cause. Upon termination for any reason, Breakaway Solutions Inc. shall be paid
all hourly fees earned to the point of termination.

Arbitration and Litigation

Any controversy or claim arising out of or relating to this Agreement or the
breach thereof will be settled by arbitration by a single arbitrator in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association (AAA) then in effect, and judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction. Any such arbitration
will be conducted in or near Boston, Massachusetts. The prevailing party shall
be entitled to receive from the other party its attorney's fees and costs
incurred in connection with any action, proceeding or arbitration hereunder.

                                        9
<PAGE>

Either party, before or during any arbitration, may apply to a court having
jurisdiction for a temporary restraining order or preliminary injunction, where
such relief is necessary to protect its interest pending completion of the
arbitration proceedings.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of
the Commonwealth of Massachusetts.

SEVERABILITY

In the event any one or more of the provisions of this Agreement is held to be
invalid or otherwise unenforceable, the enforceability of the remaining
provisions shall be unimpaired.

ASSIGNMENT

This Agreement, and any right or obligation under this Agreement, may not be
assigned, transferred or delegated by either party without the express written
consent of the other party, which consent may be withheld by either party at its
sole discretion.

FORCE MAJEURE

Breakaway Solutions Inc. shall not be responsible for failure to perform in a
timely manner under a Consulting Engagement when its failure results from any of
the following causes: acts of God or public enemies, civil war, insurrection or
riot, fire, flood, explosion, earthquake or serious accident, strike, labor
trouble or work interruption or any cause beyond its reasonable control.

ENTIRE AGREEMENT

In conjunction with a fully executed Engagement Letter, these Terms & Conditions
constitutes the entire Agreement between the parties. Each party agrees that the
Engagement Letter and Terms & Conditions are the complete and exclusive
statement of the parties regarding the specific subject matter hereof and
supersedes and merges all prior proposals, understandings and agreements, oral
or written, between the parties

                                       10
<PAGE>

relating to the subject matter hereof, including without limitation, the terms
of any request for proposal issued to The Client or the standard printed terms
on any purchase order issued by The Client. No modification, amendment,
supplements to or waiver of this Agreement shall be binding upon the parties
unless made in writing and duly signed by both parties.

                                       11<PAGE>

                                                                   Exhibit 10.48

                                                                  EXECUTION COPY

                     AMENDMENT NO. 7 TO CREDIT AGREEMENT AND
                              FORBEARANCE AGREEMENT

         AMENDMENT dated as of March 10, 2000 (the "AMENDMENT") to the Amended
and Restated Credit Agreement dated as of February 28, 1999 and amended as of
May 31, 1999, September 14, 1999, November 15, 1999, December 10, 1999, January
10, 2000 and January 20, 2000 (as amended, the "CREDIT AGREEMENT") among LAROCHE
INDUSTRIES INC. (the "BORROWER"), the LENDERS party thereto (the "LENDERS") and
THE CHASE MANHATTAN BANK, as Administrative Agent (the "ADMINISTRATIVE AGENT"),
and FORBEARANCE AGREEMENT among the parties to the Credit Agreement (the
"FORBEARANCE AGREEMENT").

                                   WITNESSETH:

         A. WHEREAS, the Borrower, the Administrative Agent and the
Lenders are parties to the Credit Agreement;

         B. WHEREAS, as of March 10, 2000, certain Events of Default (as defined
below, the "SPECIFIED DEFAULTS") have occurred or are expected to occur under
the Credit Agreement; and

         C. WHEREAS, the Administrative Agent and the Lenders have agreed to
forbear from exercising certain default-related remedies against the Borrower
under the Loan Documents on account of the Specified Defaults for a limited
period of time and upon the terms and conditions set forth herein;

         NOW, THEREFORE, in consideration of the foregoing, the covenants and
conditions contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

         SECTION 1. DEFINED TERMS; REFERENCES. Unless otherwise specifically
defined herein, each term used herein that is defined in the Credit Agreement
has the meaning assigned to such term in the Credit Agreement. Each reference to
"hereof", "hereunder", "herein" and "hereby" and each other similar reference
and each reference to "this Agreement" and each other similar reference
contained in the Credit Agreement shall, from and after Amendment No. 7
Effective Date (defined below), refer to the Credit Agreement as amended hereby.

<PAGE>

         SECTION 2.  SECTION 1.01.  Section 1.01 of the Credit Agreement is
amended:

          (a) by amending the definition of "APPLICABLE RATE" by replacing the
table set forth therein in its entirety with the following table:

<TABLE>
<CAPTION>
==========================================================================================================================
                                                                       ABR       EUROCURRENCY  LETTER OF CREDIT COMMITMENT
     APPLICABLE LEVERAGE RATIO:                                       SPREAD         SPREAD        FEE RATE       FEE RATE
--------------------------------------------------------------------------------------------------------------------------
<S>                                                                   <C>            <C>            <C>            <C>
Less than or equal to 2.00 TO 1                                       3.00%          4.50%          1.25%          .750%
--------------------------------------------------------------------------------------------------------------------------
Greater than 2.00 TO 1 AND Less than or equal to 2.50 TO 1            3.00%          4.50%          1.50%         .8125%
--------------------------------------------------------------------------------------------------------------------------
Greater than 2.50 TO 1 AND Less than or equal to 3.00 TO 1            3.00%          4.50%          1.75%          .875%
--------------------------------------------------------------------------------------------------------------------------
Greater than 3.00 TO 1 AND Less than or equal to 3.50 TO 1            3.00%          4.50%          2.00%         .9375%
--------------------------------------------------------------------------------------------------------------------------
Greater than 3.50 TO 1                                                3.00%          4.50%          3.25%          1.00%
==========================================================================================================================
</TABLE>

          (b) by amending the definition of "INTEREST PAYMENT DATE" to read in
full as follows:

                  "INTEREST PAYMENT DATE" means (a) with respect to any ABR
         Loan, the last Business Day of each week and (b) with respect to any
         Eurocurrency Loan, the last day of the Interest Period applicable to
         the Borrowing of which such Loan is a part and, in the case of a
         Eurocurrency Borrowing with an Interest Period of more than three
         months' duration, each day prior to the last day of such Interest
         Period that occurs at intervals of three months' duration after the
         first day of such Interest Period.

and

          (c) by inserting therein in appropriate alphabetical order the
following defined terms:

                  "AMENDMENT NO. 7" means Amendment No. 7 to the
         Credit Agreement and Forbearance Agreement dated March 10,
         2000, providing, among other things, for amendments to this
         Agreement.

                  "AMENDMENT NO. 7 EFFECTIVE DATE" means the date of
         effectiveness of Amendment No. 7.

         SECTION 3. SECTION 2.03. Section 2.03 of the Credit Agreement is hereby
amended by inserting the following paragraph at the conclusion thereof:

                                        2

<PAGE>

                  Notwithstanding the foregoing paragraph, from and after the
         Amendment No. 7 Effective Date, the Borrower may only request an ABR
         Revolving Borrowing. Each Borrowing Request shall be deemed to be for
         an ABR Revolving Borrowing and such Borrowing Request need only specify
         the information required by clauses (i), (ii) and (vi) of the foregoing
         paragraph.

         SECTION 4. SECTION 2.06. Section 2.06 of the Credit Agreement is
amended by adding the following paragraph (f) at the end thereof.

                  (f) Notwithstanding the foregoing paragraphs, from and after
         the Amendment No. 7 Effective Date, all Borrowings that are not ABR
         Borrowings shall be converted automatically to ABR Borrowings at the
         end of the Interest Period for each such Borrowing in effect on the
         Amendment No. 7 Effective Date.

         SECTION 5. SECTION 2.11. Paragraphs (a) and (b) of Section 2.11 are
hereby amended to delete the phrase "the last day of March, June, September and
December of each year" in the second sentence of each such subsection and to
substitute therefor the phrase "each Interest Payment Date".

         SECTION 6.  SECTION 2.12.  (a) Section 2.12(c) of the Credit Agreement
is hereby restated to read in full as follows:

                  Notwithstanding the foregoing, except as expressly provided in
         Amendment No. 7, if a Default occurs and is continuing, then, so long
         as it is continuing, the principal of and interest on all Loans, and
         all other amounts owing hereunder, shall bear interest, payable daily,
         each day until paid at a rate per annum equal to the sum of 2% plus the
         rate otherwise applicable to ABR Loans for such day, compounded daily.

         (b) Section 2.12(d) of the Credit Agreement is amended (i) by deleting
the phrase "for such loan" in the first sentence thereof and (ii) by amending
subsection (iii) thereof to read in its entirety as follows: "(iii) in the event
of any conversion of any Eurocurrency Loan, accrued interest on such Loan shall
also be payable on the effective date of such conversion."

         SECTION 7.  SECTION 5.01.  Section 5.01 of the Credit Agreement is
hereby amended to:

          (i)   delete the word "and" at the end of clause (o) thereof;

                                        3

<PAGE>

         (ii)   delete the period at the end of clause (p) thereof and
                substitute therefor "; and"; and

        (iii)   add a new subsection (q) at the end thereof to read in full as
                follows:

                           (q) on or prior to the tenth day after the end of
                  each calendar month, a certificate of a Financial Officer
                  setting forth the Borrower Consolidated EBITDA for such month.

         SECTION 8. SECTION 6.15. The Credit Agreement is hereby amended to add
a new Section 6.15 to read in full as follows:

                  Section 6.15. BORROWER CONSOLIDATED EBITDA. Borrower
         Consolidated EBITDA for any calendar month shall not be less than the
         amount set forth opposite such month below:

                           March 2000                $2,000,000
                           April 2000                $2,000,000
                           May 2000                  $2,000,000
                           June 2000                 $1,500,000

         SECTION 9. SECTION 9.03. Section 9.03(a) of the Credit Agreement is
hereby amended to add the following sentence at the end thereof:

         Without limiting the generality of the foregoing, if the Administrative
         Agent, directly or through counsel, engages a financial advisor, the
         Borrower will advance to the Administrative Agent or such financial
         advisor a reasonable retainer in respect of such engagement, pay the
         fees and expenses of such financial advisor when due, and agree to
         indemnify such financial advisor on usual and customary terms.

         SECTION 10.  CONFIRMATION BY BORROWER OF OBLIGATIONS AND SPECIFIED
DEFAULTS.

          (a) The Borrower acknowledges and agrees that the aggregate principal
amount of the outstanding Loans and the LC Exposure under the Credit Agreement
as of the date hereof, and the aggregate accrued and unpaid interest on the
Loans through March 10, 2000 (after giving effect to the payments made on, but
prior to any borrowings on, such date) are as follows:

                                        4

<PAGE>

<TABLE>
<CAPTION>
<S>                                                           <C>
         Revolving Loans                                      $79,500,000

         Term Loans                                           $26,979,166.66

         LC Exposure                                          $5,279,617.86

         Accrued and unpaid interest on the Loans through
         March 10, 2000 (after giving effect to the
         interest payment received from the Borrower
         on March 10, 2000)                                   $1,444,961.34
</TABLE>

The foregoing amounts do not include unpaid interest, fees, expenses and other
amounts (other than accrued and unpaid interest on the Loans through March 10,
2000) that are chargeable or otherwise reimbursable under the Loan Documents.
The Borrower agrees and acknowledges that it has no right of offset, defense or
counterclaim with respect to any of the foregoing obligations.

          (b) The Borrower agrees and acknowledges that Events of Default under
clauses (a), (d) and (f) of Article VII of the Credit Agreement, including,
without limitation, (i) the failure to pay principal of Loans on March 10, 2000
pursuant to Section 2.09(b)(iii)(y) of the Credit Agreement as a result of the
reduction of the Borrowing Base on such date, (ii) the failure of the Borrower
to comply with the financial covenants set forth in Sections 6.12, 6.13 and 6.14
at the last day of the fiscal quarter ended February 29, 2000 and (iii) the
failure of the Borrower to make a payment of interest in respect of Material
Indebtedness that is due on March 15, 2000 (collectively, the "SPECIFIED
DEFAULTS") constitute material Events of Default that have occurred and are
continuing or are expected to occur on or before March 15, 2000.

         SECTION 11.  FORBEARANCE.

          (a) The Administrative Agent and the Lenders agree that until the
expiration of the Forbearance Period (as hereinafter defined), the
Administrative Agent and the Lenders will temporarily forbear from the exercise
of their default-related remedies against the Borrower solely to the extent the
availability of such remedies arises exclusively from the Specified Defaults;
PROVIDED that the Borrower shall comply during the Forbearance Period with all
limitations, restrictions or prohibitions that would otherwise be effective or
applicable under any of the Loan Documents during the continuance of any Default
or Event of Default.

                                        5

<PAGE>

          (b) As used herein, "FORBEARANCE PERIOD" means the period beginning on
the date hereof and ending on the earliest to occur of (any such occurrence
being a "TERMINATION EVENT"):

          (i) April 10, 2000, unless by such date the Borrower shall have (A)
         secured a withdrawal of the lien notice dated as of August 17, 1999
         submitted to the Administrative Agent by IMC Global on or about such
         date and (B) granted to the Administrative Agent a valid and perfected
         pledge of the "SUBSIDIARY NOTES" as part of the Collateral. For
         purposes of this subsection, Subsidiary Notes shall mean promissory
         notes from each of LII Europe GmbH and LII Europe S.A.R.L. payable to
         and delivered to the Borrower evidencing the amounts owed by such
         Subsidiaries to the Borrower and, to the extent permitted by the law of
         the jurisdictions of such Subsidiaries, secured by material assets
         owned by such Subsidiaries;

         (ii)   June 9, 2000;

        (iii) the occurrence of any Default other than a Specified Default;

         (iv) the failure of the Borrower to perform the covenants and
         agreements contained in this Amendment and Forbearance Agreement in
         accordance with their terms;

          (v) the commencement by any holder of Indebtedness of the Borrower (or
         by any indenture trustee or agent therefor) of the exercise of any
         remedy or the taking by any such party of any other action in
         furtherance of collection or enforcement of any claim or Lien against
         the Borrower or any of its assets; or

         (vi) the time as of which the Borrower receives a Forbearance
         Termination Notice (as defined below).

As used herein, "FORBEARANCE TERMINATION NOTICE" means a written notice from the
Required Lenders (in their sole discretion), advising the Borrower that the
forbearance granted in this Agreement has been rescinded.

          (c) Upon a Termination Event, the agreement of the Administrative
Agent and the Lenders hereunder to forbear from exercising their default-related
remedies shall immediately terminate without the requirement of any demand,
presentment, protest or notice of any kind, all of which the Borrower waives.
The Borrower agrees that the Administrative Agent and the Lenders may at any
time thereafter proceed to

                                        6

<PAGE>

exercise any and all of their respective rights and remedies under any or all of
the Loan Documents and/or applicable law, including, without limitation, their
respective rights and remedies in connection with any or all of the Defaults,
including, without limitation, the Specified Defaults.

          (d) Any agreement to extend the Forbearance Period must be set forth
in writing and signed by the Administrative Agent and the Required Lenders.

          (e) Execution of this Agreement constitutes a request by the Required
Lenders that the Administrative Agent act in accordance with its terms.

          (f) THE BORROWER ACKNOWLEDGES AND AGREES THAT THE AGREEMENT OF THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREUNDER (I) TO FORBEAR FROM EXERCISING
THEIR DEFAULT-RELATED REMEDIES WITH RESPECT TO THE SPECIFIED DEFAULTS AND (II)
TO PERMIT ADDITIONAL BORROWINGS UNDER SECTION 12 HEREOF, SHALL NOT CONSTITUTE A
WAIVER OF SUCH SPECIFIED DEFAULTS AND THAT THE ADMINISTRATIVE AGENT AND THE
LENDERS EXPRESSLY RESERVE ALL RIGHTS AND REMEDIES THAT THE ADMINISTRATIVE AGENT
AND THE LENDERS NOW OR MAY IN THE FUTURE HAVE UNDER ANY OR ALL OF THE LOAN
DOCUMENTS AND/OR APPLICABLE LAW IN CONNECTION WITH ALL DEFAULTS AND EVENTS OF
DEFAULT (INCLUDING WITHOUT LIMITATION THE SPECIFIED DEFAULTS). THE BORROWER
FURTHER ACKNOWLEDGES THAT AS A RESULT OF THE OCCURRENCE, AND DURING THE
CONTINUATION, OF THE SPECIFIED DEFAULT DESCRIBED IN CLAUSE (I) OF THE DEFINITION
OF "SPECIFIED DEFAULTS", THE BORROWER MAY NOT MAKE ANY PAYMENT OR DISTRIBUTION
OF ANY KIND UPON OR IN RESPECT OF THE REFINANCING SUBORDINATED NOTES, ALL AS SET
FORTH IN SECTION 10.4 OF THE INDENTURE DATED AS OF SEPTEMBER 23, 1997 BETWEEN
THE BORROWER AND STATE STREET BANK AND TRUST COMPANY, AS TRUSTEE (THE
"REFINANCING INDENTURE").

         SECTION 12. ADDITIONAL BORROWINGS DURING FORBEARANCE PERIOD. (a)
Notwithstanding the occurrence and continuation of the Specified Defaults and
the consequent failure to satisfy certain conditions to ABR Revolving Borrowings
under the Credit Agreement, the Borrower shall be permitted, subject to the
other terms and conditions of the Credit Agreement and this Amendment No. 7, to
continue to make ABR Revolving Borrowings during the Forbearance Period,
PROVIDED that, after giving effect to such Borrowings, the Revolving Credit
Exposure does not exceed the lesser of (i) $90,000,000 and (ii) the Available
Amount PLUS the Deemed Foreign Asset Amount.

          (b) The agreement to permit ABR Revolving Borrowings to the extent set
forth in paragraph (a) of this Section 12 shall not constitute a waiver of any
failure to

                                        7

<PAGE>

satisfy any condition to Borrowing resulting from a Default other than a
Specified Default.

          (c) The Borrower acknowledges and agrees that, notwithstanding any
Borrowing permitted under paragraph (a) of this Section 12, repayment of the
Loans is overdue in the amount by which the Revolving Credit Exposure exceeds
the Available Amount (the "OVERDUE AMOUNT").

         SECTION 13.  APPLICABILITY OF DEFAULT INTEREST RATE DURING FORBEARANCE
PERIOD.  Notwithstanding (a) the increase in the interest rate and (b) the
requirement of daily payment of interest on the Loans pursuant to
Section 2.12(c) of the Credit Agreement resulting from the Specified Defaults,
during the Forbearance Period (x) the increase in interest rate and the daily
compounding provided for in such subsection shall apply solely to the Overdue
Amount and (y) interest on the Overdue Amount shall be payable on each Interest
Payment Date for ABR Loans.

         SECTION 14. REPAYMENTS FROM CASH BALANCES. (a) The Borrower shall from
time to time prepay (subject to paragraph (b) below) an aggregate principal
amount of Revolving Loans in an amount equal to the excess (such excess, as of
any date of determination, being the "EXCESS CASH AMOUNT"), if any, of (i) the
amount of the Cash Balances of the Borrower outstanding over (ii) the sum of (x)
the aggregate anticipated cash funding needs of the Borrower on such date of
determination and the succeeding Business Day and (y) the lesser of $500,000 and
the aggregate amount of cash required to be maintained on deposit as a minimum
balance by the applicable financial institutions for the Borrower's disbursement
accounts, payroll accounts, depository accounts, concentration accounts and
sub-concentration accounts. For purposes hereof, "CASH BALANCES" means, as at
any time of determination, the sum of the dollar amount of all money, currency,
Permitted Investments and credit balances held or maintained by the Borrower and
its affiliates.

          (b) Each prepayment required by paragraph (a) shall be made on the
Business Day on which any excess Cash Balance that is required to be prepaid
under such paragraph is outstanding. Notwithstanding the foregoing, if the
aggregate principal amount of the Loans required to be prepaid on any date
pursuant to this Section is less than $500,000, such prepayment shall be
deferred until the aggregate principal amount of the Loans required to be
prepaid pursuant to this Section (including such deferred amounts) is not less
than $500,000.

         SECTION 15. GENERAL RELEASE. In consideration of, among other things,
the forbearance provided for herein, the Borrower, on behalf of itself and its
Subsidiaries and its and their successors and assigns (collectively,
"RELEASORS"), hereby forever

                                        8

<PAGE>

waives, releases and discharges to the fullest extent permitted by law any and
all claims (including, without limitation, crossclaims, counterclaims, rights of
set-off and recoupment), causes of action, demands, suits, costs, expenses and
damages (collectively, the "CLAIMS"), that any Releasor now has or hereafter may
have, of whatsoever nature and kind, whether known or unknown, whether now
existing or hereafter arising, whether arising at law or in equity, against any
or all of the Administrative Agent and any Lender and their respective
affiliates, shareholders and "controlling persons" (within the meaning of the
federal securities laws), and their respective successors and assigns and each
and all of the officers, directors, employees, agents, attorneys and other
representatives of each of the foregoing (collectively, the "RELEASEES"), based
in whole or in part on facts, whether or not now known, existing on or before
the execution of this Agreement. Acceptance by the Borrower of any Loans or
other financial accommodations made by the Administrative Agent or any Lender
after the date hereof (including, without limitation, the accommodations
contained in this Amendment No. 7 to Credit Agreement and Forbearance Agreement)
shall constitute a ratification, adoption and confirmation by Releasors of the
foregoing general release of all Claims against any Releasee which are based in
whole or in part on facts, whether or not now known or unknown, existing on or
prior to the date of receipt of any such Loans or other financial
accommodations. In entering into this Agreement, the Borrower has consulted with
and been represented by counsel and expressly disclaims any reliance on any
representations, acts or omissions by any of the Releasees and hereby agrees and
acknowledges that the validity and effectiveness of the release set forth above
do not depend in any way on any such representations, acts and/or omissions or
the accuracy, completeness or validity thereof. The provisions of this Section
shall survive the termination of the Credit Agreement and the other Loan
Documents and payment in full of all amounts owing thereunder.

         SECTION 16.  REFERENCE TO AND EFFECT UPON THE CREDIT AGREEMENT.

          (a) Except as expressly set forth herein, all terms, conditions,
covenants, representations and warranties contained in the Credit Agreement or
any other Loan Document, and all rights of the Administrative Agent and the
Lenders and all obligations of the Borrower thereunder, shall remain in full
force and effect. The Borrower hereby confirms that the Credit Agreement and the
other Loan Documents are in full force and effect.

          (b) Except as expressly provided herein, nothing contained in this
Amendment and Forbearance Agreement and no action by, or inaction on the part
of, any Lender or the Administrative Agent shall, or shall be deemed to,
directly or indirectly (i) constitute a consent to or waiver of any past,
present or future violations of any provisions of the Credit Agreement or any
other Loan Document, (ii) amend,

                                        9

<PAGE>

modify or operate as a waiver of any provision of the Credit Agreement or any
other Loan Document or, except as expressly set forth herein, of any right,
power or remedy of the Administrative Agent or any Lender thereunder or (iii)
constitute a course of dealing or other basis for altering any obligations of
the Borrower under the Loan Documents or any other contract or instrument.

          (c) This Agreement shall constitute a Loan Document.

         SECTION 17. REPRESENTATIONS AND WARRANTIES. To induce the
Administrative Agent and the Lenders to execute and deliver this Amendment and
Forbearance Agreement, the Borrower represents and warrants that:

          (a) This Amendment and Forbearance Agreement is within the Borrower's
corporate powers and has been duly authorized by all necessary corporate and, if
required, stockholder action. All documents and instruments in connection with
this Agreement have been duly executed and delivered by the Borrower and
constitute legal, valid and binding obligations of the Borrower, enforceable in
accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights
generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.

          (b) This Amendment and Forbearance Agreement (i) does not require any
consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in
full force and effect, (ii) will not violate in any material respect any
applicable law or regulation or the charter, bylaws or other organizational
documents of the Borrower or any of its Subsidiaries or any order of any
Governmental Authority, (iii) will not violate or result in a default under the
Refinancing Indenture, or any other agreement or other instrument binding upon
the Borrower or any of its Subsidiaries or any of their respective assets and
(iv) will not result in the creation or imposition of any Lien on any asset of
the Borrower or any of its Subsidiaries.

          (c) On and as of the Amendment No. 7 Effective Date and after giving
effect to this Amendment, (i) the representations and warranties of the Obligors
set forth in the Loan Documents, including but not limited to the representation
and warranty contained in Section 3.12 of the Credit Agreement but excluding the
representation and warranty contained in Section 3.04(c) of the Credit
Agreement, are true and correct and (ii) other than the Specified Defaults, no
Default has occurred and is continuing.

                                       10

<PAGE>

         SECTION 18.  GOVERNING LAW.   This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York.

         SECTION 19. COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument. Any party
hereto may execute and deliver a counterpart of this Agreement by delivering by
facsimile transmission a signature page of this Agreement signed by such party,
and any such facsimile signature shall be treated in all respects as having the
same effect as an original signature.

         SECTION 20.  SEVERABILITY.  The invalidity, illegality or
unenforceability of any provision in or obligation under this Agreement in any
jurisdiction shall not affect or impair the validity, legality or enforceability
of the remaining provisions or obligations under this Agreement or of such
provision or obligation in any other jurisdiction.

         SECTION 21. FURTHER ASSURANCES. The Borrower agrees to take all further
actions and execute all further documents as the Administrative Agent may from
time to time reasonably request to carry out the transactions contemplated by
this Agreement.

         SECTION 22.  NOTICES.  All notices, requests and demands to or upon the
respective parties hereto shall be given in accordance with Section 9.01 of the
Credit Agreement.

         SECTION 23.  EFFECTIVENESS.  This Amendment and Forbearance Agreement
shall become effective on the date (the "AMENDMENT NO. 7 EFFECTIVE DATE") on
which the Administrative Agent shall have received:

          (a) from each of the Borrower and the Required Lenders, a counterpart
hereof signed by such party or facsimile or other written confirmation (in form
satisfactory to the Administrative Agent) that such party has signed a
counterpart hereof;

          (b) a certificate of the chief financial officer of the Borrower
certifying that the representations and warranties made by the Borrower pursuant
to Section 17 of this Amendment and Forbearance Agreement are true and correct
on and as of the date of this Agreement;

          (c) evidence satisfactory to it that the Borrower has paid in full all
fees and expenses of the Administrative Agent payable pursuant to Section
9.03(a) of the Credit Agreement with respect to which the Borrower shall have
received any invoice

                                       11

<PAGE>

delivered to the Borrower at least one Business Day prior to the Amendment No. 7
Effective Date, it being understood that the failure of the Administrative Agent
to have provided invoices with respect to such fees and expenses prior to the
Amendment No. 7 Effective Date does not constitute a waiver of, or otherwise
affect, the Administrative Agent's right to reimbursement for such fees and
expenses;

          (d) payment in full of the amendment fee referred to in Section
2.11(f) of the Credit Agreement, in an amount equal to $150,000.00; and

          (e) payment in full of all interest and fees accrued under the Credit
Agreement on or prior to March 10, 2000 other than interest accrued but not yet
payable in respect of Eurodollar Loans.

         SECTION 24. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

         SECTION 25. NO THIRD PARTY BENEFICIARIES. This Agreement shall be
binding upon and inure to the benefit of the Borrower, the Administrative Agent
and the Lenders and their respective successors and assigns. No Person other
than the parties hereto and any other Lender, and, in the case of Section 15
hereof, the Releasees, shall have any rights hereunder or be entitled to rely on
this Agreement, and all third-party beneficiary rights (other than the rights of
the Releasees under Section 15 hereof and any other Lender) are hereby expressly
disclaimed.

                                       12

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Seventh
Amendment and Forbearance Agreement to be duly executed as of the date first
above written.

                                      LAROCHE INDUSTRIES INC.

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

                                      THE CHASE MANHATTAN BANK

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

                                      HIBERNIA NATIONAL BANK

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

                                      WACHOVIA BANK, N.A.

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

                                       13

<PAGE>

                                      THE BANK OF NOVA SCOTIA

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

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

                                      PNC BANK, NATIONAL ASSOCIATION

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

                                      AMSOUTH BANK

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

                                      BHF (USA) CAPITAL CORPORATION

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

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

                                       14

<PAGE>

                                      COMERICA BANK

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

                                      NATIONAL BANK OF CANADA

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

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

                                      PARIBAS

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

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

                                       15

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