Document:

<PAGE>

                                                                  EXHIBIT 10.49
                                                                  EXECUTION COPY

                                $2,050,000,000

                               CREDIT AGREEMENT

                           Dated as of June 11, 1999

                                     Among

                             ACE INA HOLDINGS INC.

                                  as Borrower
                                  -- --------

                                      and

                                  ACE LIMITED

                                   as Parent
                                   -- ------

                                      and

                    THE SUBSIDIARY GUARANTORS NAMED HEREIN

                           as Subsidiary Guarantors
                            -- ---------- ----------

                                      and

                       THE INITIAL LENDERS NAMED HEREIN

                              as Initial Lenders
                               -- ------- -------

                                      and

              MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

                    as Lead Arranger and Syndication Agent
                    --------------------------------------

                                      and

                   MORGAN GUARANTY TRUST COMPANY OF NEW YORK

                            as Administrative Agent
                            -- -------------- -----

                                      and

                          J.P. MORGAN SECURITIES INC.

                                as Co-Arranger
                                -- -----------

                                      and

             BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION

                             CHASE MANHATTAN BANK

                          as Co-Documentation Agents
                          -- ---------------- ------
<PAGE>

                       T A B L E   O F   C O N T E N T S

Section  Page

                  ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
<TABLE>
<S>                                                                            <C>
SECTION 1.01.  Certain Defined Terms.........................................   1
SECTION 1.02.  Computation of Time Periods; Other Definitional Provisions....  19
SECTION 1.03.  Accounting Terms and Determinations...........................  19

</TABLE>
            ARTICLE II AMOUNTS AND TERMS OF THE COMMITTED ADVANCES
<TABLE>
<S>                                                                            <C>
SECTION 2.01.  The Committed Advances........................................  20
SECTION 2.02.  Making the Committed Advances.................................  20
SECTION 2.03.  The Competitive Bid Advances..................................  22
SECTION 2.04.  Repayment of Committed Advances...............................  25
SECTION 2.05.  Termination or Reduction of the Commitments...................  25
SECTION 2.06.  Prepayments...................................................  25
SECTION 2.07.  Interest......................................................  26
SECTION 2.08.  Fees..........................................................  27
SECTION 2.09.  Conversion of Advances........................................  28
SECTION 2.10.  Increased Costs, Etc..........................................  28
SECTION 2.11.  Payments and Computations.....................................  30
SECTION 2.12.  Taxes.........................................................  31
SECTION 2.13.  Sharing of Payments, Etc......................................  33
SECTION 2.14.  Use of Proceeds...............................................  34
SECTION 2.15.  Defaulting Lenders............................................  34
SECTION 2.16.  Extension of Final Maturity Date..............................  36
SECTION 2.17.  Replacement of Affected Lender................................  36

</TABLE>
                       ARTICLE III CONDITIONS OF LENDING
<TABLE>
<S>                                                                            <C>
SECTION 3.01.  Conditions Precedent to All Committed Borrowings in
                  Respect of the Acquisition.................................  37
SECTION 3.02.  Conditions Precedent to Each Committed Borrowing..............  41
SECTION 3.03.  Conditions Precedent to Each Competitive Bid Borrowing........  42
SECTION 3.04.  Determinations Under Section 3.01.............................  42

</TABLE>
                   ARTICLE IV REPRESENTATIONS AND WARRANTIES
<TABLE>
<S>                                                                            <C>
SECTION 4.01.  Representations and Warranties of the Parent and the Borrower.. 42
</TABLE>
<PAGE>

              ARTICLE V COVENANTS OF THE PARENT AND THE BORROWER
<TABLE>
<S>                                                                             <C>
SECTION 5.01.  Affirmative Covenants..........................................  47
SECTION 5.02.  Negative Covenants.............................................  48
SECTION 5.03.  Reporting Requirements.........................................  54
SECTION 5.04.  Financial Covenants............................................  56

</TABLE>
                         ARTICLE VI EVENTS OF DEFAULT
<TABLE>
<S>                                                                             <C>
SECTION 6.01.  Events of Default..............................................  57
</TABLE>

                             ARTICLE VII GUARANTY
<TABLE>
<S>                                                                             <C>
SECTION 7.01.  The Guaranty...................................................  60
SECTION 7.02.  Guaranty Unconditional.........................................  60
SECTION 7.03.  Discharge Only Upon Payment In Full; Reinstatement In Certain
                   Circumstances..............................................  61
SECTION 7.04.  Waiver by the Guarantors.......................................  61
SECTION 7.05.  Subrogation....................................................  61
SECTION 7.06.  Stay of Acceleration...........................................  62
SECTION 7.07.  Continuing Guaranty; Assignments...............................  62

</TABLE>

                            ARTICLE VIII THE AGENTS
<TABLE>
<S>                                                                             <C>
SECTION 8.01.  Authorization and Action.......................................  62
SECTION 8.02.  Agents' Reliance, Etc..........................................  63
SECTION 8.03.  MGT and Affiliates.............................................  63
SECTION 8.04.  Lender Credit Decision.........................................  63
SECTION 8.05.  Indemnification................................................  63
SECTION 8.06.  Successor Agents...............................................  64

</TABLE>
                           ARTICLE IX MISCELLANEOUS
<TABLE>
<S>                                                                             <C>
SECTION 9.01.  Amendments, Etc................................................  65
SECTION 9.02.  Notices, Etc...................................................  65
SECTION 9.03.  No Waiver; Remedies............................................  66
SECTION 9.04.  Costs and Expenses.............................................  66
SECTION 9.05.  Right of Set-off...............................................  67
SECTION 9.06.  Binding Effect.................................................  67
SECTION 9.07.  Assignments and Participations.................................  68
SECTION 9.08.  Execution in Counterparts......................................  72

</TABLE>
<PAGE>
<TABLE>
<S>                                                                            <C>
SECTION 9.09.  Confidentiality...............................................  72
SECTION 9.10.  Jurisdiction, Etc.............................................  72
SECTION 9.11.  Governing Law.................................................  73
SECTION 9.12.  Waiver of Jury Trial..........................................  73
</TABLE>

<PAGE>

SCHEDULES

Schedule I         -  Commitments and Applicable Lending Offices
Schedule 4.01(b)   -  Subsidiaries
Schedule 5.02 (a)  -  Liens
Schedule 5.02 (b)  -  Surviving Debt

EXHIBITS

Exhibit A-1  -  Form of Committed Note
Exhibit A-2  -  Form of Competitive Bid Note
Exhibit B-1  -  Form of Notice of Committed Borrowing
Exhibit B-2  -  Form of Notice of Competitive Bid Borrowing
Exhibit C    -  Form of Assignment and Acceptance
Exhibit D    -  Form of Solvency Certificate
Exhibit E-1  -  Form of Opinion of Cayman Islands Counsel to the Parent
Exhibit E-2  -  Form of Opinion of New York Counsel to the Loan Parties
Exhibit E-3  -  Form of Opinion of Bermuda Counsel to the Subsidiary Guarantors
Exhibit F    -  Form of Designation Agreement
<PAGE>

                               CREDIT AGREEMENT

     CREDIT AGREEMENT dated as of June 11, 1999 among ACE INA Holdings Inc., a
Delaware corporation (the "Borrower"), ACE Limited, a Cayman Islands company
(the "Parent"), the Subsidiary Guarantors (as hereinafter defined), the banks,
financial institutions and other institutional lenders listed on the signature
pages hereof as the Initial Lenders (the "Initial Lenders"), Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("ML&Co."), as syndication agent (together
with any successor syndication agent appointed pursuant to Article VIII, the
"Syndication Agent") and lead arranger (the "Lead Arranger"), Morgan Guaranty
Trust Company of New York ("MGT"), as administrative agent (together with any
successor administrative agent appointed pursuant to Article VIII, the
"Administrative Agent" and, together with the Syndication Agent, the "Agents")
for the Lenders (as hereinafter defined), and J.P. Morgan Securities Inc. ("J.P.
Morgan"), as co-arranger (the "Co-Arranger").

PRELIMINARY STATEMENTS:

     (1) The Parent or one of its Affiliates (as hereinafter defined) intends to
acquire (the "Acquisition") the domestic and international property and casualty
businesses ("CIGNAP&C") of Cigna Corporation (the "Seller").  Currently,
CIGNAP&C is a division of the Seller.

     (2) The Borrower has requested that, concurrently with the consummation of
the Acquisition (or any portion thereof), the Lenders lend to the Borrower up to
$2,050,000,000 to pay to the Seller a portion of the cash consideration for the
Acquisition and to pay transaction fees and expenses and for other general
corporate purposes.  The Lenders have indicated their willingness to agree to
lend such amounts on the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto hereby agree as
follows:

                                   ARTICLE I

                       DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.01.  Certain Defined Terms.  As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

          "Acquisition" has the meaning specified in the Preliminary Statements.

          "Adjusted Consolidated Debt" means, at any time, an amount equal to
(i) the then outstanding Consolidated Debt of the Parent and its Subsidiaries
plus (ii) 50% of the then issued and outstanding amount of Preferred Securities
(other than any Mandatorily Convertible Preferred Securities).
<PAGE>

                                       2

          "Administrative Agent" has the meaning specified in the recital of
     parties to this Agreement.

          "Administrative Agent's Account" means the account of the
     Administrative Agent maintained by the Administrative Agent with Morgan
     Guaranty Trust Company at its office at 60 Wall Street, New York, New York
     10260, Account No 999-99-090, Attention: Bill Wood, or such other account
     as the Administrative Agent shall specify in writing to the Lenders.

          "Advance" means a Committed Advance or a Competitive Bid Advance.

          "Affected Lender" means any Lender that (i) has made, or notified the
     Borrower that an event or circumstance has occurred which may give rise to,
     a demand for compensation under Section 2.10 (a) or (b) or Section 2.12
     (but only so long as the event or circumstance giving rise to such demand
     or notice is continuing) or (ii) has notified the Borrower (which notice
     has not been withdrawn) of any event or circumstance of a type described in
     Section 2.10 (c) or (d).

          "Affiliate" means, as to any Person, any other Person that, directly
     or indirectly, controls, is controlled by or is under common control with
     such Person or is a director or officer of such Person.  For purposes of
     this definition, the term "control" (including the terms "controlling",
     "controlled by" and "under common control with") of a Person means the
     possession, direct or indirect, of the power to vote 5% or more of the
     Voting Interests of such Person or to direct or cause the direction of the
     management and policies of such Person, whether through the ownership of
     Voting Interests, by contract or otherwise.

          "Agents" has the meaning specified in the recital of parties to this
     Agreement.

          "Applicable Facility Fee Percentage" means, as of any date, a
     percentage per annum determined by reference to the Public Debt Rating in
     effect on such date as set forth below:

<TABLE>
<CAPTION>
----------------------------------------------
Public Debt Rating    Applicable Facility Fee
S&P/Moody's                  Percentage
----------------------------------------------
<S>                   <C>
Level 1                                 0.100%
-------
A-/A3 and above
----------------------------------------------
Level 2                                 0.125%
-------
BBB+/Baa1
----------------------------------------------
Level 3                                 0.150%
-------
BBB/Baa2
----------------------------------------------
Level 4                                 0.200%
-------
BBB-/Baa3
----------------------------------------------
Level 5                                 0.300%
-------
Lower than Level 4
----------------------------------------------
</TABLE>
<PAGE>

                                       3

          "Applicable Lending Office" means, with respect to each Lender, such
     Lender's Domestic Lending Office in the case of a Base Rate Advance and
     such Lender's Eurodollar Lending Office in the case of a Eurodollar Rate
     Advance and, in the case of a Competitive Bid Advance, the office of such
     Lender notified by such Lender to the Administrative Agent as its
     Applicable Lending Office with respect to such Competitive Bid Advance.

          "Applicable Margin" means, as of any date, a percentage per annum
     determined by reference to the Public Debt Rating in effect on such date as
     set forth below:

<TABLE>
<CAPTION>
-------------------------------------------------------------
 Public Debt Rating    Applicable Margin   Applicable Margin
    S&P/Moody's               for                 for
                      Base Rate Advances    Eurodollar Rate
                                                Advances
-------------------------------------------------------------
<S>                   <C>                  <C>
Level 1                             0.00%              0.400%
-------
A-/A3 and above
-------------------------------------------------------------
Level 2                             0.00%              0.500%
-------
BBB+/Baa1
-------------------------------------------------------------
Level 3                             0.00%              0.600%
-------
BBB/Baa2
-------------------------------------------------------------
Level 4                             0.00%              0.675%
-------
BBB-/Baa3
-------------------------------------------------------------
Level 5                             0.00%              1.325%
-------
Lower than Level 4
-------------------------------------------------------------
</TABLE>

     provided, however, that, if as of any date of determination the aggregate
     outstanding principal amount of Committed Advances on such day exceeds 33%
     of the aggregate Commitments on such day, the Applicable Margin for such
     date shall be the percentage per annum determined above plus 0.125%;
     provided further that, if the Final Maturity Date is extended pursuant to
     the provisions of Section 2.16, the Applicable Margin for Eurodollar Rate
     Advances shall be increased by 0.250% and the Applicable Margin for Base
     Rate Advances shall be a percentage (not less than 0%) equal to Applicable
     Margin for Eurodollar Rate Loans less 1.00%.

          "Approved Fund" means, with respect to any Lender that is a fund that
     invests in bank loans, any other fund that invests in bank loans and is
     advised or managed by the same investment advisor as such Lender or by an
     Affiliate of such investment advisor.

          "Approved Investment" means any Investment that was made by the Parent
     or any of its Subsidiaries pursuant to investment guidelines set forth by
     the board of directors of the Parent which are consistent with past
     practices.

          "Arrangers" means each of the Lead Arranger and the Co-Arranger.
<PAGE>

                                       4

          "Assignment and Acceptance" means an assignment and acceptance entered
     into by a Lender and an Eligible Assignee, and accepted by the
     Administrative Agent, in accordance with Section 9.07 and in substantially
     the form of Exhibit C hereto.

          "Bankruptcy Law" means any proceeding of the type referred to in
     Section 6.01(f) or Title 11, U.S. Code, or any similar foreign, federal or
     state law for the relief of debtors.

          "Base Rate" means a fluctuating interest rate per annum in effect from
     time to time, which rate per annum shall at all times be equal to the
     higher of:

               (a) the rate of interest announced publicly by MGT in New York,
     New York, from time to time, as MGT's prime rate; and

               (b) 1/2 of 1% per annum above the Federal Funds Rate.

          "Base Rate Advance" means a Committed Advance that bears interest as
     provided in Section 2.07(a)(i).

          "Borrower" has the meaning specified in the recital of parties to this
     Agreement.

          "Borrower's Account" means the account maintained by the Borrower with
     Mellon PSFS at its office at 701 Market Street, Philadelphia, Pennsylvania
     19106 Account No. 2-959-286, Attention: Cindy Scully, or such other account
     as the Borrower shall specify in writing to the Administrative Agent.

          "Borrowing" means a Committed Borrowing or a Competitive Bid
     Borrowing.

          "Business Day" means a day of the year on which banks are not required
     or authorized by law to close in New York City and, if the applicable
     Business Day relates to any Eurodollar Rate Advances or LIBO Rate Advances,
     on which dealings are carried on in the London interbank market.

          "Capitalized Leases" means all leases that have been or should be, in
     accordance with GAAP, recorded as capitalized leases.

          "Change of Control" means the occurrence of any of the following: (a)
     any Person or two or more Persons acting in concert shall have acquired
     beneficial ownership (within the meaning of Rule 13d-3 of the Securities
     and Exchange Commission under the Securities Exchange Act of 1934),
     directly or indirectly, of Voting Interests of the Parent (or other
     securities convertible into such Voting Interests) representing 30% or more
     of the combined voting power of all Voting Interests of the Parent; or (b)
     a majority of the board of directors of the Parent shall not be Continuing
     Members; or (c) any Person or two or more Persons acting in concert shall
     have acquired by contract or otherwise, or shall have entered into a
     contract or arrangement that results in its or their acquisition of the
     power to exercise, directly or indirectly, a controlling influence over the
     management or policies of the Parent; or (d) the Parent shall
<PAGE>

                                       5

     cease to own, directly or indirectly, 100% of the Equity Interests in the
     Borrower (other than any Preferred Securities); or (e) the Parent, or any
     other Person controlled by the Parent, shall create, incur, assume or
     suffer to exist any Lien on the Equity Interests in the Borrower owned by
     it.

          "CIGNAP&C" has the meaning specified in the Preliminary Statements.

          "Co-Arranger" has the meaning specified in the recital of parties to
     this Agreement.

          "Commitment" means, with respect to any Lender at any time, the amount
     set forth opposite such Lender's name on Schedule I hereto under the
     caption "Commitment" or, if such Lender has entered into one or more
     Assignment and Acceptances, set forth for such Lender in the Register
     maintained by the Administrative Agent pursuant to Section 9.07(d) as such
     Lender's "Commitment", as such amount may be reduced at or prior to such
     time pursuant to Section 2.05.

          "Committed Advance" has the meaning specified in Section 2.01.

          "Committed Borrowing" means a borrowing consisting of simultaneous
     Committed Advances of the same Type made by the Lenders.

          "Committed Facility" means, at any time, the aggregate amount of the
     Lenders' Commitments at such time.

          "Committed Note" means a promissory note of the Borrower payable to
     the order of any Lender, in substantially the form of Exhibit A-1 hereto,
     evidencing the aggregate indebtedness of the Borrower to such Lender
     resulting from the Committed Advances made by such Lender, as amended.

          "Competitive Bid Advance" means an advance by a Lender to the Borrower
     as part of a Competitive Bid Borrowing resulting from the competitive
     bidding procedure described in Section 2.03 and refers to a Fixed Rate
     Advance or a LIBO Rate Advance.

          "Competitive Bid Borrowing" means a borrowing consisting of
     simultaneous Competitive Bid Advances from each of the Lenders whose offer
     to make one or more Competitive Bid Advances as part of such borrowing has
     been accepted under the competitive bidding procedure described in Section
     2.03.

          "Competitive Bid Note" means a promissory note of the Borrower payable
     to the order of any Lender, in substantially the form of Exhibit A-2
     hereto, evidencing the indebtedness of the Borrower to such Lender
     resulting from Competitive Bid Advances made by such Lender.

          "Confidential Information" means information that any Loan Party
     furnishes to any Agent or any Lender but does not include any such
     information that is or becomes generally available to the public other than
     as a result of a breach by such Agent or any Lender of its obligations
     hereunder or that is or becomes available to such Agent or such Lender from
     a source
<PAGE>

                                       6

     other than the Loan Parties that is not, to the best of such Agent's or
     such Lender's knowledge, acting in violation of a confidentiality agreement
     with a Loan Party.

          "Consolidated" refers to the consolidation of accounts in accordance
     with GAAP.

          "Consolidated Net Income" means, for any period, the net income of the
     Parent and its Consolidated Subsidiaries, determined on a Consolidated
     basis for such period.

          "Consolidated Tangible Net Worth" means at any date the Consolidated
     stockholder's equity of the Parent and its Consolidated Subsidiaries (plus,
     to the extent not included in such Consolidated stockholder's equity, the
     outstanding amount of all Mandatorily Convertible Preferred Securities)
     less their Consolidated Intangible Assets, all determined as of such date,
     provided that such determination for purposes of Section 5.04 shall be made
     without giving effect to adjustments pursuant to Statement No. 115 of the
     Financial Accounting Standards Board of the United States of America.  For
     purposes of this definition, "Intangible Assets" means the amount (to the
     extent reflected in determining such Consolidated stockholder's equity) of
     (i) all write-ups (other than write-ups resulting from foreign currency
     translations and write-ups of assets of a going concern business made
     within twelve months after the acquisition of such business) subsequent to
     March 31, 1999 in the book value of any asset owned by the Parent or a
     Consolidated Subsidiary and (ii) all unamortized debt discount and expense,
     unamortized deferred charges, deferred acquisition cost relating to the
     acquisition of the stock or assets of any other Person, goodwill, patents,
     trademarks, service marks, trade names, anticipated future benefit of tax
     loss carry-forwards, copyrights, organization or developmental expense and
     other intangible assets.

          "Contingent Obligation" means, with respect to any Person, any
     obligation or arrangement of such Person to guarantee or intended to
     guarantee any Debt, leases, dividends or other payment obligations
     ("primary obligations") of any other Person (the "primary obligor") in any
     manner, whether directly or indirectly, including, without limitation, (a)
     the direct or indirect guarantee, endorsement (other than for collection or
     deposit in the ordinary course of business), co-making, discounting with
     recourse or sale with recourse by such Person of the obligation of a
     primary obligor, (b) the obligation to make take-or-pay or similar
     payments, if required, regardless of nonperformance by any other party or
     parties to an agreement or (c) any obligation of such Person, whether or
     not contingent, (i) to purchase any such primary obligation or any property
     constituting direct or indirect security therefor, (ii) to advance or
     supply funds (A) for the purchase or payment of any such primary obligation
     or (B) to maintain working capital or equity capital of the primary obligor
     or otherwise to maintain the net worth or solvency of the primary obligor,
     (iii) to purchase property, assets, securities or services primarily for
     the purpose of assuring the owner of any such primary obligation of the
     ability of the primary obligor to make payment of such primary obligation
     or (iv) otherwise to assure or hold harmless the holder of such primary
     obligation against loss in respect thereof; provided, however, that
     Contingent Obligations shall not include any obligations of any such Person
     arising under insurance contracts entered into in the ordinary course of
     business.  The amount of any Contingent Obligation shall be deemed to be an
     amount equal to the stated or determinable amount of the primary obligation
     in respect of which such Contingent Obligation is made (or, if
<PAGE>

                                       7

     less, the maximum amount of such primary obligation for which such Person
     may be liable pursuant to the terms of the instrument evidencing such
     Contingent Obligation) or, if not stated or determinable, the maximum
     reasonably anticipated liability in respect thereof (assuming such Person
     is required to perform thereunder), as determined by such Person in good
     faith.

          "Continuing Member" means a member of the Board of Directors of the
     Parent who either (i) was a member of the Parent's Board of Directors on
     the date of execution and delivery of this Agreement by the Parent and has
     been such continuously thereafter or (ii) became a member of such Board of
     Directors after such date and whose election or nomination for election was
     approved by a vote of the majority of the Continuing Members then members
     of the Parent's Board of Directors.

          "Conversion", "Convert" and "Converted" each refer to a conversion of
     Committed Advances of one Type into Committed Advances of the other Type
     pursuant to Section 2.09 or 2.10.

          "Debenture" means debt securities issued by the Parent or the Borrower
     to the Special Purpose Trust in exchange for proceeds of Preferred
     Securities.

          "Debt" of any Person means, without duplication for purposes of
     calculating financial ratios, (a) all indebtedness of such Person for
     borrowed money, (b) all obligations of such Person for the deferred
     purchase price of property or services (other than trade payables incurred
     in the ordinary course of such Person's business), (c) all obligations of
     such Person evidenced by notes, bonds, debentures or other similar
     instruments, (d) all obligations of such Person created or arising under
     any conditional sale or other title retention agreement with respect to
     property acquired by such Person (even though the rights and remedies of
     the seller or lender under such agreement in the event of default are
     limited to repossession or sale of such property), (e) all obligations of
     such Person as lessee under Capitalized Leases (excluding imputed
     interest), (f) all obligations of such Person under acceptance, letter of
     credit or similar facilities, (g) all obligations of such Person to
     purchase, redeem, retire, defease or otherwise make any payment in respect
     of any Equity Interests in such Person or any other Person or any warrants,
     rights or options to acquire such capital stock (excluding payments under a
     contract for the forward sale of ordinary shares of such Person issued in a
     public offering), valued, in the case of Redeemable Preferred Interests, at
     the greater of its voluntary or involuntary liquidation preference plus
     accrued and unpaid dividends, (h) all Contingent Obligations of such Person
     in respect of Debt (of the types described above) of any other Person and
     (i) all indebtedness and other payment obligations referred to in clauses
     (a) through (h) above of another Person secured by (or for which the holder
     of such Debt has an existing right, contingent or otherwise, to be secured
     by) any Lien on property (including, without limitation, accounts and
     contract rights) owned by such Person, even though such Person has not
     assumed or become liable for the payment of such indebtedness or other
     payment obligations; provided, however, that the amount of Debt of such
     Person under clause (i) above shall, if such Person has not assumed or
     otherwise become liable for any such Debt, be limited to the lesser of the
     principal amount of such Debt or the fair market value of all property of
     such Person securing such Debt; provided further that "Debt" shall not
     include obligations in respect of insurance or reinsurance contracts
     entered into in the ordinary
<PAGE>

                                       8

     course of business; provided further that, solely for purposes of Section
     5.04 and the definitions of "Adjusted Consolidated Debt" and "Total
     Capitalization", "Debt" shall not include (x) any contingent obligations of
     any Person under or in connection with acceptance, letter of credit or
     similar facilities or (y) obligations of the Parent or the Borrower under
     any Debentures or under any subordinated guaranty of any Preferred
     Securities or obligations of the Special Purpose Trust under any Preferred
     Securities.

          "Default" means any Event of Default or any event that would
     constitute an Event of Default but for the requirement that notice be given
     or time elapse or both.

          "Defaulted Advance" means, with respect to any Lender at any time, the
     portion of any Committed Advance required to be made by such Lender to the
     Borrower pursuant to Section 2.01 or 2.02 at or prior to such time that has
     not been made by such Lender or by the Administrative Agent for the account
     of such Lender pursuant to Section 2.02(d) as of such time.

          "Defaulted Amount" means, with respect to any Lender at any time, any
     amount required to be paid by such Lender to any Agent or any other Lender
     hereunder or under any other Loan Document at or prior to such time that
     has not been so paid as of such time, including, without limitation, any
     amount required to be paid by such Lender to (a) the Administrative Agent
     pursuant to Section 2.02(d) to reimburse the Administrative Agent for the
     amount of any Committed Advance made by the Administrative Agent for the
     account of such Lender, (b) any other Lender pursuant to Section 2.13 to
     purchase any participation in Committed Advances owing to such other Lender
     and (c) any Agent pursuant to Section 8.05 to reimburse such Agent for such
     Lender's ratable share of any amount required to be paid by the Lenders to
     such Agent as provided therein.

          "Defaulting Lender" means, at any time, any Lender that, at such time,
     (a) owes a Defaulted Advance or a Defaulted Amount or (b) shall take any
     action or be the subject of any action or proceeding of a type described in
     Section 6.01(f).

          "Designated Bidder" means (a) an Eligible Assignee or (b) a special
     purpose corporation that is engaged in making, purchasing or otherwise
     investing in commercial loans in the ordinary course of its business and
     that issues (or the parent of which issues) commercial paper rated at least
     "Prime-1" (or the then equivalent grade) by Moody's or "A-1" (or the then
     equivalent grade) by S&P that, in the case of either clause (a) or (b), (i)
     is organized under the laws of the United States or any State thereof, (ii)
     shall have become a party hereto pursuant to Section 9.07(f), (g) and (h)
     and (iii) is not otherwise a Lender.

          "Designation Agreement" means a designation agreement entered into by
     a Lender (other than a Designated Bidder) and a Designated Bidder, and
     accepted by the Administrative Agent and the Borrower (such acceptance, in
     the case of the Borrower, not to be unreasonably withheld), in
     substantially the form of Exhibit I hereto.

          "Domestic Lending Office" means, with respect to any Lender, the
     office of such Lender specified as its "Domestic Lending Office" opposite
     its name on Schedule I hereto or in the
<PAGE>

                                       9

     Assignment and Acceptance pursuant to which it became a Lender, as the case
     may be, or such other office of such Lender as such Lender may from time to
     time specify to the Borrower and the Administrative Agent.

          "Effective Date" means the first date on which the conditions set
     forth in Article III shall have been satisfied.

          "Eligible Assignee" means (i) a Lender, (ii) an Affiliate of a Lender,
     or (iii) a commercial bank, a savings bank or other financial institution
     that is approved by the Administrative Agent and, unless an Event of a
     Default has occurred and is continuing at the time any assignment is
     effected pursuant to Section 9.07, the Borrower (such approval of the
     Borrower not to be unreasonably withheld or delayed); provided, however,
     that neither any Loan Party nor any Affiliate of a Loan Party shall qualify
     as an Eligible Assignee under this definition.

          "Environmental Action" means any action, suit, demand, demand letter,
     claim, notice of non-compliance or violation, notice of liability or
     potential liability, investigation, proceeding, consent order or consent
     agreement relating in any way to any Environmental Law, any Environmental
     Permit or Hazardous Material or arising from alleged injury or threat to
     health, safety or the environment, including, without limitation, (a) by
     any governmental or regulatory authority for enforcement, cleanup, removal,
     response, remedial or other actions or damages and (b) by any governmental
     or regulatory authority or third party for damages, contribution,
     indemnification, cost recovery, compensation or injunctive relief.

          "Environmental Law" means any Federal, state, local or foreign
     statute, law, ordinance, rule, regulation, code, order, writ, judgment,
     injunction, decree or judicial or agency interpretation, policy or guidance
     relating to pollution or protection of the environment, health, safety or
     natural resources, including, without limitation, those relating to the
     use, handling, transportation, treatment, storage, disposal, release or
     discharge of Hazardous Materials.

          "Environmental Permit" means any permit, approval, identification
     number, license or other authorization required under any Environmental
     Law.

          "Equity Interests" means, with respect to any Person, shares of
     capital stock of (or other ownership or profit interests in) such Person,
     warrants, options or other rights for the purchase or other acquisition
     from such Person of shares of capital stock of (or other ownership or
     profit interests in) such Person, securities convertible into or
     exchangeable for shares of capital stock of (or other ownership or profit
     interests in) such Person or warrants, rights or options for the purchase
     or other acquisition from such Person of such shares (or such other
     interests), and other ownership or profit interests in such Person
     (including, without limitation, partnership, member or trust interests
     therein), whether voting or nonvoting, and whether or not such shares,
     warrants, options, rights or other interests are authorized or otherwise
     existing on any date of determination.
<PAGE>

                                      10

          "Equity Issuance" means one or more  issuances by the Parent and/or
     the Borrower of Equity Interests and/or equity-linked securities, the Net
     Cash Proceeds of which shall be at least $500,000,000.

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

          "ERISA Affiliate" means any Person that for purposes of Title IV of
     ERISA is a member of the controlled group of any Loan Party, or under
     common control with any Loan Party, within the meaning of Section 414 of
     the Internal Revenue Code or Section 4001 of ERISA.

          "Eurocurrency Liabilities" has the meaning specified in Regulation D
     of the Board of Governors of the Federal Reserve System, as in effect from
     time to time.

          "Eurodollar Lending Office" means, with respect to any Lender, the
     office of such Lender specified as its "Eurodollar Lending Office" opposite
     its name on Schedule I hereto or in the Assignment and Acceptance pursuant
     to which it became a Lender (or, if no such office is specified, its
     Domestic Lending Office), or such other office of such Lender as such
     Lender may from time to time specify to the Borrower and the Administrative
     Agent.

          "Eurodollar Rate" means, for any Interest Period for all Eurodollar
     Rate Advances comprising part of the same Committed Borrowing, an interest
     rate per annum equal to the rate per annum (rounded upwards, if not an
     integral multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%)
     appearing on Dow Jones Markets (Telerate) Page 3750 (or any successor page)
     as the London interbank offered rate for deposits in U.S. dollars at 11:00
     A.M. (London time) two Business Days before the first day of such Interest
     Period for a period equal to such Interest Period (provided that, if for
     any reason such rate is not available, the term "Eurodollar Rate" shall
     mean, for any Interest Period for all Eurodollar Rate Advances comprising
     part of the same Committed Borrowing, the rate per annum (rounded upwards,
     if not an integral multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of
     1%) appearing on Reuters Screen LIBO Page as the London interbank offered
     rate for deposits in Dollars at approximately 11:00 A.M. (London time) two
     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period; provided, however, if more than one
     rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
     the arithmetic mean of all such rates).

          "Eurodollar Rate Advance" means an Advance that bears interest as
     provided in Section 2.07(a)(ii).

          "Eurodollar Rate Reserve Percentage" for any Interest Period for all
     Eurodollar Rate Advances comprising part of the same Committed Borrowing
     means the reserve percentage applicable two Business Days before the first
     day of such Interest Period under regulations issued from time to time by
     the Board of Governors of the Federal Reserve System (or any successor) for
     determining the maximum reserve requirement (including, without limitation,
     any emergency, supplemental or other marginal reserve requirement) for a
     member bank of the Federal Reserve System in New York City with respect to
     liabilities or assets consisting of or
<PAGE>

                                      11

     including Eurocurrency Liabilities (or with respect to any other category
     of liabilities that includes deposits by reference to which the interest
     rate on Eurodollar Rate Advances is determined) having a term equal to such
     Interest Period.

          "Events of Default" has the meaning specified in Section 6.01.

          "Existing Debt" means Debt of each Loan Party and its Subsidiaries
     outstanding immediately before giving effect to the Acquisition.

          "Federal Funds Rate" means, for any period, a fluctuating interest
     rate per annum equal for each day during such period to the weighted
     average of the rates on overnight Federal funds transactions with members
     of the Federal Reserve System arranged by Federal funds brokers, as
     published for such day (or, if such day is not a Business Day, for the next
     preceding Business Day) by the Federal Reserve Bank of New York, or, if
     such rate is not so published for any day that is a Business Day, the
     average of the quotations for such day for such transactions received by
     the Administrative Agent from three Federal funds brokers of recognized
     standing selected by it.

          "Fee Letter" means the fee letter dated January 11, 1999 among the
     Parent, the Arrangers, the Administrative Agent and Merrill Lynch, as
     amended.

          "Final Maturity Date" means (a) the Termination Date or (b) if
     extended pursuant to Section 2.16, the date requested by the Borrower
     pursuant to Section 2.16, but in no event shall such date be later than the
     first anniversary of the Termination Date.

          "Fiscal Year" means a fiscal year of the Parent and its Consolidated
     Subsidiaries ending on September 30 in any calendar year.

          "Fixed Rate Advances" has the meaning specified in Section 2.03(a)(i).

          "Foreign Government Scheme or Arrangement" has the meaning specified
     in Section 4.01(n) (iv).

          "Foreign Plan" has the meaning specified in Section 4.01 (n) (iv).

          "GAAP" has the meaning specified in Section 1.03.

          "Granting Lender" has the meaning specified in Section 9.07(l).

          "Guarantors" means the Parent and the Subsidiary Guarantors.

          "Guaranty" means the undertaking by each of the Guarantors under
     Article VII.

          "Hazardous Materials" means (a) petroleum or petroleum products, by-
     products or breakdown products, radioactive materials, asbestos-containing
     materials, polychlorinated
<PAGE>

                                      12

     biphenyls and radon gas and (b) any other chemicals, materials or
     substances designated, classified or regulated as hazardous or toxic or as
     a pollutant or contaminant under any Environmental Law.

          "Hedge Agreements" means interest rate swap, cap or collar agreements,
     interest rate future or option contracts, currency swap agreements,
     currency future or option contracts and other hedging agreements.

          "Indemnified Party" has the meaning specified in Section 9.04(b).

          "Information Memorandum" means the information memorandum dated
     February 1999, used by the Arrangers in connection with the syndication of
     the Commitments.

          "Initial Extension of Credit" means the initial Committed Borrowing
     hereunder.

          "Initial Lenders" has the meaning specified in the recital of parties
     to this Agreement.

          "Interest Period" means, for each Eurodollar Rate Advance comprising
     part of the same Committed Borrowing and each LIBO Rate Advance comprising
     part of the same Competitive Bid Borrowing, the period commencing on the
     date of such Eurodollar Rate Advance or LIBO Rate Advance or the date of
     the Conversion of any Base Rate Advance into such Eurodollar Rate Advance,
     and ending on the last day of the period selected by the Borrower pursuant
     to the provisions below and, thereafter, each subsequent period commencing
     on the last day of the immediately preceding Interest Period and ending on
     the last day of the period selected by the Borrower pursuant to the
     provisions below.  The duration of each such Interest Period shall be one
     or two weeks or one, two, three or six months, as the Borrower may, upon
     notice received by the Administrative Agent not later than 11:00 A.M. (New
     York City time) on the third Business Day prior to the first day of such
     Interest Period, select; provided, however, that:

               (a) the Borrower may not select any Interest Period with respect
          to any Eurodollar Rate Advance that ends after the Final Maturity
          Date;

               (b) Interest Periods commencing on the same date for Eurodollar
          Rate Advances comprising part of the same Committed Borrowing or for
          LIBO Rate Advances comprising part of the same Competitive Bid
          Borrowing shall be of the same duration;

               (c) whenever the last day of any Interest Period would otherwise
          occur on a day other than a Business Day, the last day of such
          Interest Period shall be extended to occur on the next succeeding
          Business Day, provided, however, that, if such extension would cause
          the last day of such Interest Period to occur in the next following
          calendar month, the last day of such Interest Period shall occur on
          the next preceding Business Day; and
<PAGE>

                                      13

               (d) whenever the first day of any Interest Period (other than a
          one or two week Interest Period) occurs on a day of an initial
          calendar month for which there is no numerically corresponding day in
          the calendar month that succeeds such initial calendar month by the
          number of months equal to the number of months in such Interest
          Period, such Interest Period shall end on the last Business Day of
          such succeeding calendar month.

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

          "Investment" in any Person means any loan or advance to such Person,
     any purchase or other acquisition of any Equity Interests or Debt or the
     assets comprising a division or business unit or a substantial part or all
     of the business of such Person, any capital contribution to such Person or
     any other direct or indirect investment in such Person, including, without
     limitation, any acquisition by way of a merger or consolidation and any
     arrangement pursuant to which the investor incurs Debt of the types
     referred to in clause (h) or (i) of the definition of "Debt" in respect of
     such Person; provided, however, that any purchase by any Loan Party or any
     Subsidiary of any catastrophe-linked instruments which are (x) issued for
     the purpose of transferring traditional reinsurance risk to the capital
     markets and (y) purchased by such Loan Party or Subsidiary in accordance
     with its customary reinsurance underwriting procedures, or the entry by any
     Loan Party or any Subsidiary into swap transactions relating to such
     instruments in accordance with such procedures, shall be deemed to be the
     entry by such Person into a reinsurance contract and shall not be deemed to
     be an Investment by such Person.

          "J.P. Morgan" has the meaning specified in the recital of parties to
     this Agreement.

          "Lead Arranger" has the meaning specified in the recital of parties to
     this Agreement.

          "Lenders" means the Initial Lenders and each Person that shall become
     a Lender hereunder pursuant to Section 9.07(a), (b) and (c) for so long as
     such Initial Lender or Person, as the case may be, shall be a party to this
     Agreement and, solely when used in reference to a Competitive Bid Advance,
     a Competitive Bid Borrowing, a Competitive Bid Note, or a related term,
     each Designated Bidder.

          "LIBO Rate" means, for any Interest Period for all LIBO Rate Advances
     comprising part of the same Competitive Bid Borrowing, an interest rate per
     annum equal to the rate per annum (rounded upwards, if not an integral
     multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%) appearing on
     Dow Jones Markets (Telerate) Page 3750 (or any successor page) as the
     London interbank offered rate for deposits in U.S. dollars at 11:00 A.M.
     (London time) two Business Days before the first day of such Interest
     Period for a period equal to such Interest Period (provided that, if for
     any reason such rate is not available, the term "LIBO Rate" shall mean for
     any Interest Period for all LIBO Rate Advances comprising part of the same
     Competitive Bid Borrowing, the rate per annum (rounded upwards, if not an
     integral multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%)
     appearing on Reuters Screen LIBO Page as the London interbank offered rate
     for deposits in Dollars at approximately 11:00 A.M. (London time) two
<PAGE>

                                      14

     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period; provided, however, if more than one
     rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
     the arithmetic mean of all such rates).

          "LIBO Rate Advances" has the meaning specified in Section 2.03(a)(i).

          "Lien" means any lien, security interest or other charge or
     encumbrance of any kind, or any other type of preferential arrangement,
     including, without limitation, the lien or retained security title of a
     conditional vendor and any easement, right of way or other encumbrance on
     title to real property.

          "Loan Documents" means (i) this Agreement, (ii) the Notes, and (iii)
     the Fee Letter, in each case as amended.

          "Loan Parties" means the Borrower and the Guarantors.

          "Mandatorily Convertible Preferred Securities" means units comprised
     of Preferred Securities and a contract for the sale of ordinary shares of
     the Parent (including "Feline Prides(TM)" or any substantially similar
     securities).

          "Margin Stock" has the meaning specified in Regulation U.

          "Material Adverse Change" means any material adverse change in the
     business, financial condition, operations or properties of the Parent and
     its Subsidiaries, taken as a whole.

          "Material Adverse Effect" means a material adverse effect on (a) the
     business, condition, operations or properties of (i) the Parent and its
     Subsidiaries, taken as a whole, or (ii) the Borrower and its Subsidiaries,
     taken as a whole,  (b) the rights and remedies of any Agent or any Lender
     under any Transaction Document or (c) the ability of the Loan Parties,
     taken as a whole, to perform their obligations under the Transaction
     Documents.

          "Material Financial Obligation" means a principal amount of Debt
     and/or payment obligations in respect of any Hedge Agreement of the Parent
     and/or one or more of its Subsidiaries arising in one or more related or
     unrelated transactions exceeding in the aggregate $25,000,000.

          "Merrill Lynch" means Merrill Lynch Capital Corporation.

          "MGT" has the meaning specified in the recital of parties to this
     Agreement.

          "ML&Co." has the meaning specified in the recital of parties to this
     Agreement.

          "Moody's" means Moody's Investors Service, Inc.
<PAGE>

                                      15

          "Multiemployer Plan" means a Multiemployer plan, as defined in Section
     4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is
     making or accruing an obligation to make contributions, or has within any
     of the preceding five plan years made or accrued an obligation to make
     contributions.

          "Net Cash Proceeds" means, with respect to any sale, lease, transfer
     or other disposition of any asset or the incurrence or issuance of any Debt
     or the sale or issuance of any Equity Interests or Preferred Securities by
     any Person, the aggregate amount of cash received from time to time
     (whether as initial consideration or through payment or disposition of
     deferred consideration) by or on behalf of such Person in connection with
     such transaction after deducting therefrom only (without duplication) (a)
     reasonable and customary brokerage commissions, underwriting fees and
     discounts, legal fees, finder's fees and other similar fees and
     commissions, (b) the amount of taxes payable in connection with or as a
     result of such transaction and (c) the amount of any Debt secured by a Lien
     on such asset that, by the terms of the agreement or instrument governing
     such Debt, is required to be repaid upon such disposition, in each case to
     the extent, but only to the extent, that the amounts so deducted are, at
     the time of receipt of such cash, actually paid to a Person that is not an
     Affiliate of such Person or any Loan Party or any Affiliate of any Loan
     Party and are properly attributable to such transaction or to the asset
     that is the subject thereof; provided, however, that in the case of taxes
     that are deductible under clause (b) above but for the fact that, at the
     time of receipt of such cash, such taxes have not been actually paid or are
     not then payable, such Loan Party or such Subsidiary may deduct an amount
     (the "Reserved Amount") equal to the amount reserved in accordance with
     GAAP for such Loan Party's or such Subsidiary's reasonable estimate of such
     taxes, other than taxes for which such Loan Party or such Subsidiary is
     indemnified; provided further that, at the time such taxes are paid, an
     amount equal to the amount, if any, by which the Reserved Amount for such
     taxes exceeds the amount of such taxes actually paid shall constitute "Net
     Cash Proceeds" of the type for which such taxes were reserved for all
     purposes hereunder; provided further that, prior to the date on which the
     Public Debt Rating of the Parent falls to BBB/Baa2 or below, Net Cash
     Proceeds from the sale, lease, transfer or other disposition of any asset
     or Equity Interests shall not include any amount of cash proceeds received
     in connection with such transaction to the extent such cash proceeds are
     reinvested in the same or related line of business as the business of the
     Parent.

          "Note" means a Committed Note or a Competitive Bid Note.

          "Notice of Committed Borrowing" has the meaning specified in Section
     2.02(a).

          "Notice of Competitive Bid Borrowing" has the meaning specified in
     Section 2.03(a).

          "OECD" means the Organization for Economic Cooperation and
     Development.

          "Other Taxes" has the meaning specified in Section 2.12(b).

          "Parent" has the meaning specified in the recital of parties to this
     Agreement.
<PAGE>

                                      16

          "Parent Five-Year Revolving Credit Facility" means the Five-Year
     Revolving Credit Agreement dated as of the date hereof among the Parent,
     the subsidiary guarantors referred to therein, the lenders party thereto,
     ML&Co. as lead arranger and syndication agent, MGT as administrative agent
     and J.P. Morgan as co-arranger, as the same may be amended, modified or
     otherwise supplemented from time to time.

          "Parent 364-Day Revolving Credit Facility" means the 364-Day Revolving
     Credit Agreement dated as of the date hereof among the Parent, the
     subsidiary guarantors referred to therein, the lenders party thereto,
     ML&Co. as lead arranger and syndication agent, MGT as administrative agent
     and J.P. Morgan as co-arranger, as the same may be amended, modified or
     otherwise supplemented from time to time.

          "PBGC" means the Pension Benefit Guaranty Corporation (or any
     successor).

          "Pension Plan" means a "pension plan", as such term is defined in
     section 3(2) of ERISA, which is subject to title IV of ERISA (other than
     any "multiemployer plan" as such term is defined in section 4001(a)(3) of
     ERISA), and to which any Loan Party or any ERISA Affiliate may have any
     liability, including any liability by reason of having been a substantial
     employer within the meaning of section 4063 of ERISA at any time during the
     preceding five years, or by reason of being deemed to be a contributing
     sponsor under section 4069 of ERISA.

          "Permitted Liens" means such of the following as to which no
     enforcement, collection, execution, levy or foreclosure proceeding shall
     have been commenced or which are being contested in good faith by
     appropriate proceedings:  (a) Liens for taxes, assessments and governmental
     charges or levies not yet due and payable; (b) Liens imposed by law, such
     as materialmen's, mechanics', carriers', workmen's and repairmen's Liens
     and other similar Liens arising in the ordinary course of business securing
     obligations that are not overdue for a period of more than 90 days; (c)
     pledges or deposits to secure obligations under workers' compensation laws
     or similar legislation or to secure public or statutory obligations; and
     (d) easements, rights of way and other encumbrances on title to real
     property that do not render title to the property encumbered thereby
     unmarketable or materially adversely affect the use of such property for
     its present purposes.

          "Person" means an individual, partnership, corporation (including a
     business trust), limited liability company, joint stock company, trust,
     unincorporated association, joint venture or other entity, or a government
     or any political subdivision or agency thereof.

          "Pre-Commitment Information" means all of the written information in
     the Information Memorandum provided by or on behalf of the Parent to the
     Administrative Agent and the Lenders (other than any information therein
     provided by ML&Co. and its Affiliates).

          "Preferred Interests" means, with respect to any Person, Equity
     Interests issued by such Person that are entitled to a preference or
     priority over any other Equity Interests issued by such Person upon any
     distribution of such Person's property and assets, whether by dividend or
     upon liquidation.
<PAGE>

                                      17

          "Preferred Securities" means (i) preferred securities issued by the
     Special Purpose Trust which shall provide, among other things, that
     dividends shall be payable only out of proceeds of interest payments on the
     Debentures, or (ii) other instruments that may be treated in whole or in
     part as equity for rating agency purposes while being treated as debt for
     tax purposes.

          "Prepayment Percentage" mean (x) until such time as the Commitments
     hereunder are reduced to $750,000,000, 100% and (y) thereafter, 50%.

          "Pro Rata Share" of any amount means, with respect to any Lender at
     any time, the product of such amount times a fraction, the numerator of
     which is the amount of such Lender's Commitment at such time (or, if the
     Commitments shall have been terminated pursuant to Section 2.05 or 6.01,
     such Lender's Commitment as in effect immediately prior to such
     termination) and the denominator of which is the Committed Facility at such
     time (or, if the Commitments shall have been terminated pursuant to Section
     2.05 or 6.01, the Committed Facility as in effect immediately prior to such
     termination).

          "Public Debt Rating" means, as of any date, the lower rating that has
     been most recently announced by either S&P or Moody's, as the case may be,
     for any class of non-credit enhanced long-term senior unsecured debt issued
     by the Parent.  For purposes of the foregoing, (a) if only one of S&P and
     Moody's shall have in effect a Public Debt Rating, the Applicable Margin or
     the Applicable Facility Fee Percentage, as the case may be, shall be
     determined by reference to the available rating; (b) if (i) from and after
     January 11, 1999, the Parent and its Subsidiaries shall not have sold or
     issued Equity Interests and/or equity-linked securities or sold, leased,
     transferred or otherwise disposed of (including through liquidation)
     material assets generating, in the aggregate, $500,000,000 of Net Cash
     Proceeds which are used to permanently reduce the Parent 364-Day Revolving
     Credit Facility and the Committed Facility in accordance with their
     respective terms and (ii) neither S&P nor Moody's shall have in effect a
     Public Debt Rating, the Applicable Margin and the Applicable Facility Fee
     Percentage will be set in accordance with Level 3 under the definition of
     "Applicable Margin" and "Applicable Facility Fee Percentage" as the case
     may be; (c) if neither S&P nor Moody's shall have in effect a Public Debt
     Rating (other than under the circumstances described in clause (b) above),
     the Applicable Margin and the Applicable Facility Fee Percentage shall be
     set in accordance with the level which is three rating levels below the
     Parent's S&P financial strength rating at such time, provided that, in the
     event that the Parent's S&P financial strength rating is affirmed at (i)
     A+, the applicable Level will be Level 2 and (ii) A+ and on credit
     watch/review with negative implications, the applicable Level will be Level
     3; (d) if any rating established by S&P or Moody's shall be changed, such
     change shall be effective as of the date on which such change is first
     announced publicly by the rating agency making such change; and (e) if S&P
     or Moody's shall change the basis on which ratings are established, each
     reference to the Public Debt Rating announced by S&P or Moody's, as the
     case may be, shall refer to the then equivalent rating by S&P or Moody's,
     as the case may be.

          "Purchase Agreement" means the Purchase Agreement dated as of January
     11, 1999 among the Seller, Cigna Holdings, Inc. and the Parent.
<PAGE>

                                      18

          "Redeemable" means, with respect to any Equity Interest, any Debt or
     any other right or obligation, any such Equity Interest, Debt, right or
     obligation that (a) the issuer has undertaken to redeem at a fixed or
     determinable date or dates, whether by operation of a sinking fund or
     otherwise, or upon the occurrence of a condition not solely within the
     control of the issuer or (b) is redeemable at the option of the holder.

          "Register" has the meaning specified in Section 9.07(d).

          "Regulation U" means Regulation U of the Board of Governors of the
     Federal Reserve System, as in effect from time to time.

          "Required Lenders" means, at any time, Lenders owed or holding at
     least a majority in interest of the aggregate principal amount of the
     Committed Advances outstanding at such time, or, if no such principal
     amount is outstanding at such time, Lenders holding at least a majority in
     interest of the aggregate of the Commitments; provided, however, that if
     any Lender shall be a Defaulting Lender at such time, there shall be
     excluded from the determination of Required Lenders at such time (A) the
     aggregate principal amount of the Committed Advances owing to such Lender
     (in its capacity as a Lender) and outstanding at such time and (B) the
     Unused Commitment of such Lender at such time.

          "Responsible Officer" means the Chairman, Chief Executive Officer,
     President, Chief Financial Officer, Treasurer or Chief Investment Officer
     of the Parent.

          "S&P" means Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

          "Seller" has the meaning specified in the Preliminary Statements to
     this Agreement.

          "Solvent" and "Solvency" mean, with respect to any Person on a
     particular date, that on such date (a) 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, (b) the present
     fair salable 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, (c) such Person does not intend
     to, and does not believe that it will, incur debts or liabilities beyond
     such Person's ability to pay such debts and liabilities as they mature and
     (d) such Person is not engaged in business or a transaction, and is not
     about to engage in business or a transaction, for which such Person's
     property would constitute an unreasonably small capital. The amount of
     contingent liabilities at any time shall be computed as the amount that, in
     the 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.

          "SPC" has the meaning specified in Section 9.07(l).

          "Special Purpose Trust" means a special purpose business trust
     established by the Parent or the Borrower of which the Parent or the
     Borrower will hold all the common interests,
<PAGE>

                                      19

     which will be the issuer of the Preferred Securities, and which will loan
     to Parent or the Borrower (such loan being evidenced by the Debentures) the
     net proceeds of the issuance and sale of the Preferred Securities.

          "Subsidiary" of any Person means any corporation, partnership, joint
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of (a) the issued and outstanding capital stock having
     ordinary voting power to elect a majority of the Board of Directors of such
     corporation (irrespective of whether at the time capital stock of any other
     class or classes of such corporation shall or might have voting power upon
     the occurrence of any contingency), (b) the interest in the capital or
     profits of such partnership, joint venture or limited liability company or
     (c) the beneficial interest in such trust or estate is at the time directly
     or indirectly owned or controlled by such Person, by such Person and one or
     more of its other Subsidiaries or by one or more of such Person's other
     Subsidiaries.

          "Subsidiary Guarantors" means ACE Bermuda Insurance Ltd. and Tempest
     Reinsurance Company Limited.

          "Surviving Debt" means Debt of each Loan Party and its Subsidiaries
     outstanding immediately before and after giving effect to the transactions
     contemplated by the Transaction Documents.

          "Syndication Agent" has the meaning specified in the recital of
     parties to this Agreement.

          "Taxes" has the meaning specified in Section 2.12(a).

          "Termination Date" means the earlier of June 9, 2000 and the date of
     termination in whole of the Commitments.

          "Total Capitalization" means, at any time, an amount (without
     duplication) equal to (i) the then outstanding Consolidated Debt of the
     Parent and its Subsidiaries plus (ii) Consolidated stockholders equity of
     the Parent and its Subsidiaries plus (iii) the then issued and outstanding
     amount of Preferred Securities and  (without duplication) Debentures.

          "Transaction Documents" means, collectively, the Loan Documents and
     the Purchase Agreement.

          "Type" refers to the distinction between Committed Advances bearing
     interest at the Base Rate and Committed Advances bearing interest at the
     Eurodollar Rate.

          "Unused Commitment" means, with respect to any Lender at any time, (a)
     such Lender's Commitment at such time minus (b) the sum of (i) the
     aggregate principal amount of all Committed Advances made by such Lender
     (in its capacity as a Lender) hereunder plus (ii) such Lender's Pro Rata
     Share of the aggregate principal amount of all Competitive Bid Advances
     hereunder.
<PAGE>

                                      20

          "Voting Interests" means shares of capital stock issued by a
     corporation, or equivalent Equity Interests in any other 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 if the right so to vote has been suspended
     by the happening of such a contingency.

          "Welfare Plan" means a welfare plan, as defined in Section 3(1) of
     ERISA, that is maintained for employees of any Loan Party or in respect of
     which any Loan Party could have liability.

          "Withdrawal Liability" has the meaning specified in Part I of Subtitle
     E of Title IV of ERISA.

          SECTION 1.02.  Computation of Time Periods; Other Definitional
Provisions.  In this Agreement and the other Loan Documents in the computation
of periods of time from a specified date to a later specified date, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding".  References in the Loan Documents to any agreement or contract
"as amended" shall mean and be a reference to such agreement or contract as
amended, amended and restated, supplemented or otherwise modified from time to
time in accordance with its terms.

          SECTION 1.03.  Accounting Terms and Determinations.  Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with
generally accepted accounting principles as in effect from time to time
("GAAP"), applied on a basis consistent (except for changes concurred in by the
Parent's independent public accountants) with the most recent audited
consolidated financial statements of the Parent and its Subsidiaries delivered
to the Lenders; provided that, if the Parent notifies the Administrative Agent
that the Parent wishes to amend any covenant in Article V to eliminate the
effect of any change in generally accepted accounting principles on the
operation of such covenant (or if the Administrative Agent notifies the Parent
that the Required Lenders wish to amend Article V for such purpose), then the
Parent's compliance with such covenant shall be determined on the basis of
generally accepted accounting principles in effect immediately before the
relevant change in generally accepted accounting principles became effective
(and, concurrently with the delivery of any financial statements required to be
delivered hereunder, the Parent shall provide a statement of reconciliation
conforming such financial information to such generally accepted accounting
principles as previously in effect), until either such notice is withdrawn or
such covenant is amended in a manner satisfactory to the Parent and the Required
Lenders.

                                  ARTICLE II

                  AMOUNTS AND TERMS OF THE COMMITTED ADVANCES

          SECTION 2.01.  The Committed Advances.  Each Lender severally agrees,
on the terms and conditions hereinafter set forth, to make advances (each a
"Committed Advance") to the Borrower from time to time on any Business Day
during the period from the date hereof until the Termination Date
<PAGE>

                                      21

in an amount for each such Committed Advance not to exceed such Lender's Unused
Commitment at such time; provided, however, that at any time until the
Acquisition has been fully consummated the sum of (i) the aggregate amount of
Committed Advances outstanding at such time plus (ii) the aggregate amount of
"Committed Advances" under the Parent 364-Day Revolving Credit Facility
outstanding at such time shall not exceed a percentage of the sum of (i) the
Commitments hereunder at the time immediately prior to the first Borrowing
hereunder plus the "Commitments" under the Parent 364-Day Revolving Credit
Facility at the time prior to the first Borrowing thereunder equal to the
percentage that the portion of the purchase price allocable (in the reasonable
judgment of the Administrative Agent) to the assets acquired at or prior to such
time in connection with the Acquisition bears to the aggregate purchase price
for all assets to be acquired in connection with the Acquisition. Each Committed
Borrowing shall be in an aggregate amount of $10,000,000 or an integral multiple
of $1,000,000 in excess thereof and shall consist of Committed Advances made
simultaneously by the Lenders ratably according to their Commitments. Within the
limits of each Lender's Unused Commitment in effect from time to time, the
Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.06(a)
and reborrow under this Section 2.01.

          SECTION 2.02.  Making the Committed Advances. (a) Except as
otherwise provided in Section 2.03, each Committed Borrowing shall be made on
notice, given not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the date of the proposed Committed Borrowing in the case
of a Committed Borrowing consisting of Eurodollar Rate Advances, or the first
Business Day prior to the date of the proposed Committed Borrowing in the case
of a Committed Borrowing consisting of Base Rate Advances, by the Borrower to
the Administrative Agent, which shall give to each Lender prompt notice thereof
by telecopier. Each such notice of a Committed Borrowing (a "Notice of Committed
Borrowing") shall be by telephone, confirmed immediately in writing, or
telecopier, in substantially the form of Exhibit B-1 hereto, specifying therein
the requested (i) date of such Committed Borrowing, (ii) Type of Advances
comprising such Committed Borrowing, (iii) aggregate amount of such Committed
Borrowing and (iv) in the case of a Committed Borrowing consisting of Eurodollar
Rate Advances, initial Interest Period for such Committed Advances. Each Lender
shall, before 11:00 A.M. (New York City time) on the date of such Committed
Borrowing, make available for the account of its Applicable Lending Office to
the Administrative Agent at the Administrative Agent's Account, in same day
funds, such Lender's ratable portion of such Committed Borrowing in accordance
with the respective Commitments of such Lender and the other Lenders. After the
Administrative Agent's receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent will
make such funds available to the Borrower by crediting the Borrower's Account.

          (b) Anything in subsection (a) above to the contrary notwithstanding,
(i) the Borrower may not select Eurodollar Rate Advances if the obligation of
the Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to
Section 2.09 or 2.10 and (ii) the Committed Advances may not be outstanding as
part of more than ten (10) separate Committed Borrowings.

          (c) Each Notice of Committed Borrowing shall be irrevocable and
binding on the Borrower.  In the case of any Committed Borrowing that the
related Notice of Committed Borrowing specifies is to be comprised of Eurodollar
Rate Advances, the Borrower shall indemnify each Lender against any loss, cost
or expense incurred by such Lender as a result of any failure to fulfill on or
before the date specified in such Notice of Committed Borrowing for such
Committed Borrowing the applicable
<PAGE>

                                      22

conditions set forth in Article III, including, without limitation, any loss
(excluding loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such
Lender to fund the Committed Advance to be made by such Lender as part of such
Committed Borrowing when such Committed Advance, as a result of such failure, is
not made on such date.

          (d) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Committed Borrowing that such Lender will not
make available to the Administrative Agent such Lender's ratable portion of such
Committed Borrowing, the Administrative Agent may assume that such Lender has
made such portion available to the Administrative Agent on the date of such
Committed Borrowing in accordance with subsection (a) of this Section 2.02 and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower on such date a corresponding amount. If and to the extent that
such Lender shall not have so made such ratable portion available to the
Administrative Agent, such Lender and the Borrower severally agree to repay or
pay to the Administrative Agent forthwith on demand such corresponding amount
and to pay interest thereon, for each day from the date such amount is made
available to the Borrower until the date such amount is repaid or paid to the
Administrative Agent, at (i) in the case of the Borrower, the interest rate
applicable at such time under Section 2.07 to Advances comprising such Committed
Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such
Lender shall pay to the Administrative Agent such corresponding amount, such
amount so paid shall constitute such Lender's Committed Advance as part of such
Committed Borrowing for all purposes.

          (e) The failure of any Lender to make the Committed Advance to be made
by it as part of any Committed Borrowing shall not relieve any other Lender of
its obligation, if any, hereunder to make its Committed Advance on the date of
such Committed Borrowing, but no Lender shall be responsible for the failure of
any other Lender to make the Committed Advance to be made by such other Lender
on the date of any Committed Borrowing.

          SECTION 2.03.  The Competitive Bid Advances. (a) Each Lender
severally agrees that the Borrower may make Competitive Bid Borrowings under
this Section 2.03 from time to time on any Business Day during the period from
the date hereof until the date occurring 7 days prior to the Termination Date in
the manner set forth below; provided that, following the making of each
Competitive Bid Borrowing, the aggregate amount of the Advances then outstanding
shall not exceed the aggregate amount of the Commitments of the Lenders.

          (i) The Borrower may request a Competitive Bid Borrowing under this
     Section 2.03 by delivering to the Administrative Agent, by telecopier, a
     notice of a Competitive Bid Borrowing (a "Notice of Competitive Bid
     Borrowing"), in substantially the form of Exhibit B-2 hereto, specifying
     therein the requested (v) date of such proposed Competitive Bid Borrowing,
     (w) aggregate amount of such proposed Competitive Bid Borrowing, (x) in the
     case of a Competitive Bid Borrowing consisting of LIBO Rate Advances,
     Interest Period, or in the case of a Competitive Bid Borrowing consisting
     of Fixed Rate Advances, maturity date for repayment of each Fixed Rate
     Advance to be made as part of such Competitive Bid Borrowing (which
     maturity date may not be earlier than the date occurring 7 days after the
     date of such Competitive Bid Borrowing or later than the earlier of (I) 180
     days after the date of such Competitive Bid
<PAGE>

                                      23

     Borrowing and (II) the Termination Date), (y) interest payment date or
     dates relating thereto, and (z) other terms (if any) to be applicable to
     such Competitive Bid Borrowing, not later than 10:00 A.M. (New York City
     time) (A) at least one Business Day prior to the date of the proposed
     Competitive Bid Borrowing, if the Borrower shall specify in the Notice of
     Competitive Bid Borrowing that the rates of interest to be offered by the
     Lenders shall be fixed rates per annum (the Advances comprising any such
     Competitive Bid Borrowing being referred to herein as "Fixed Rate
     Advances") and (B) at least four Business Days prior to the date of the
     proposed Competitive Bid Borrowing, if the Borrower shall instead specify
     in the Notice of Competitive Bid Borrowing that the rates of interest to be
     offered by the Lenders are to be based on a margin above or below the LIBO
     Rate (the Advances comprising such Competitive Bid Borrowing being referred
     to herein as "LIBO Rate Advances"). Each Notice of Competitive Bid
     Borrowing shall be irrevocable and binding on the Borrower. The
     Administrative Agent shall in turn promptly notify each Lender of each
     request for a Competitive Bid Borrowing received by it from the Borrower by
     sending such Lender a copy of the related Notice of Competitive Bid
     Borrowing.

          (ii) Each Lender may, if, in its sole discretion, it elects to do so,
     irrevocably offer to make one or more Competitive Bid Advances to the
     Borrower as part of such proposed Competitive Bid Borrowing at a rate or
     rates of interest specified by such Lender in its sole discretion, by
     notifying the Administrative Agent (which shall give prompt notice thereof
     to the Borrower), before 9:30 A.M. (New York City time) on the date of such
     proposed Competitive Bid Borrowing, in the case of a Competitive Bid
     Borrowing consisting of Fixed Rate Advances and before 10:00 A.M. (New York
     City time) three Business Days before the date of such proposed Competitive
     Bid Borrowing, in the case of a Competitive Bid Borrowing consisting of
     LIBO Rate Advances, of the minimum amount and maximum amount of each
     Competitive Bid Advance which such Lender would be willing to make as part
     of such proposed Competitive Bid Borrowing (which amounts may, subject to
     the proviso to the first sentence of this Section 2.03(a), exceed such
     Lender's Commitment, if any), the rate or rates of interest therefor and
     such Lender's Applicable Lending Office with respect to such Competitive
     Bid Advance; provided that if the Administrative Agent in its capacity as a
     Lender shall, in its sole discretion, elect to make any such offer, it
     shall notify the Borrower of such offer at least 30 minutes before the time
     and on the date on which notice of such election is to be given to the
     Administrative Agent by the other Lenders.  If any Lender shall elect not
     to make such an offer, such Lender shall so notify the Administrative
     Agent, before 10:00 A.M. (New York City time) on the date on which notice
     of such election is to be given to the Administrative Agent by the other
     Lenders, and such Lender shall not be obligated to, and shall not, make any
     Competitive Bid Advance as part of such Competitive Bid Borrowing; provided
     that the failure by any Lender to give such notice shall not cause such
     Lender to be obligated to make any Competitive Bid Advance as part of such
     proposed Competitive Bid Borrowing.

          (iii)  The Borrower shall, in turn, before 10:30 A.M. (New York City
     time) on the date of such proposed Competitive Bid Borrowing, in the case
     of a Competitive Bid Borrowing  consisting of Fixed Rate Advances, and
     before 11:00 A.M. (New York City time) three Business Days before the date
     of such proposed Competitive Bid Borrowing, in the case of a Competitive
     Bid Borrowing consisting of LIBO Rate Advances, either:
<PAGE>

                                      24

               (x) cancel such Competitive Bid Borrowing by giving the
          Administrative Agent notice to that effect, or

               (y) accept one or more of the offers made by any Lender or
          Lenders pursuant to paragraph (ii) above, in its sole discretion, by
          giving notice to the Administrative Agent of the amount of each
          Competitive Bid Advance (which amount shall be equal to or greater
          than the minimum amount, and equal to or less than the maximum amount,
          notified to the Borrower by the Administrative Agent on behalf of such
          Lender for such Competitive Bid Advance pursuant to paragraph (ii)
          above) to be made by each such Lender as part of such Competitive Bid
          Borrowing, and reject any remaining offers made by Lenders pursuant to
          paragraph (ii) above by giving the Administrative Agent notice to that
          effect. The Borrower shall accept the offers made by any Lender or
          Lenders to make Competitive Bid Advances in order of the lowest to the
          highest rates of interest offered by such Lenders. If two or more
          Lenders have offered the same interest rate, the amount to be borrowed
          at such interest rate will be allocated among such Lenders in
          proportion to the amount that each such Lender offered at such
          interest rate.

          (iv) If the Borrower notifies the Administrative Agent that such
     Competitive Bid Borrowing is cancelled pursuant to paragraph (iii)(x)
     above, the Administrative Agent shall give prompt notice thereof to the
     Lenders and such Competitive Bid Borrowing shall not be made.

          (v) If the Borrower accepts one or more of the offers made by any
     Lender or Lenders pursuant to paragraph (iii)(y) above, the Administrative
     Agent shall in turn promptly notify (A) each Lender that has made an offer
     as described in paragraph (ii) above, of the date and aggregate amount of
     such Competitive Bid Borrowing and whether or not any offer or offers made
     by such Lender pursuant to paragraph (ii) above have been accepted by the
     Borrower, (B) each Lender that is to make a Competitive Bid Advance as part
     of such Competitive Bid Borrowing, of the amount of each Competitive Bid
     Advance to be made by such Lender as part of such Competitive Bid
     Borrowing, and (C) each Lender that is to make a Competitive Bid Advance as
     part of such Competitive Bid Borrowing, upon receipt, that the
     Administrative Agent has received forms of documents appearing to fulfill
     the applicable conditions set forth in Article III.  Each Lender that is to
     make a Competitive Bid Advance as part of such Competitive Bid Borrowing
     shall, before 12:00 noon (New York City time) on the date of such
     Competitive Bid Borrowing specified in the notice received from the
     Administrative Agent pursuant to clause (A) of the preceding sentence or
     any later time when such Lender shall have received notice from the
     Administrative Agent pursuant to clause (C) of the preceding sentence, make
     available for the account of its Applicable Lending Office to the
     Administrative Agent at the Administrative Agent's Account, in same day
     funds, such Lender's portion of such Competitive Bid Borrowing.  Upon
     fulfillment of the applicable conditions set forth in Article III and after
     receipt by the Administrative Agent of such funds, the Administrative Agent
     will make such funds available to the Borrower at the Administrative
     Agent's address referred to in Section 8.02.  Promptly after each
     Competitive Bid Borrowing, the Administrative Agent will notify each Lender
     of the amount of the Competitive Bid Borrowing.
<PAGE>

                                       25

          (vi) If the Borrower notifies the Administrative Agent that it accepts
     one or more of the offers made by any Lender or Lenders pursuant to
     paragraph (iii)(y) above, such notice of acceptance shall be irrevocable
     and binding on the Borrower.  The Borrower shall indemnify each Lender
     against any loss, cost or expense incurred by such Lender as a result of
     any failure to fulfill on or before the date specified in the related
     Notice of Competitive Bid Borrowing for such Competitive Bid Borrowing the
     applicable conditions set forth in Article III, including, without
     limitation, any loss (excluding loss of anticipated profits), cost or
     expense incurred by reason of the liquidation or reemployment of deposits
     or other funds acquired by such Lender to fund the Competitive Bid Advance
     to be made by such Lender as part of such Competitive Bid Borrowing when
     such Competitive Bid Advance, as a result of such failure, is not made on
     such date.

          (b) Each Competitive Bid Borrowing shall be in an aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and,
following the making of each Competitive Bid Borrowing, the Borrower shall be in
compliance with the limitation set forth in the proviso to the first sentence of
subsection (a) above.

          (c) Within the limits and on the conditions set forth in this Section
2.03, the Borrower may from time to time borrow under this Section 2.03, repay
or prepay pursuant to subsection (d) below, and reborrow under this Section
2.03, provided that a Competitive Bid Borrowing shall not be made within three
Business Days of the date of any other Competitive Bid Borrowing.

          (d) The Borrower shall repay to the Administrative Agent for the
account of each Lender that has made a Competitive Bid Advance, on the maturity
date of each Competitive Bid Advance (such maturity date being that specified by
the Borrower for repayment of such Competitive Bid Advance in the related Notice
of Competitive Bid Borrowing delivered pursuant to subsection (a)(i) above), the
then unpaid principal amount of such Competitive Bid Advance. The Borrower shall
have no right to prepay any principal amount of any Competitive Bid Advance
unless, and then only on the terms, specified by the Borrower for such
Competitive Bid Advance in the related Notice of Competitive Bid Borrowing
delivered pursuant to subsection (a)(i) above.

          (e) The Borrower shall pay interest on the unpaid principal amount of
each Competitive Bid Advance from the date of such Competitive Bid Advance to
the date the principal amount of such Competitive Bid Advance is repaid in full,
at the rate of interest for such Competitive Bid Advance specified by the Lender
making such Competitive Bid Advance in its notice with respect thereto delivered
pursuant to subsection (a)(ii) above, payable on the interest payment date or
dates specified by the Borrower for such Competitive Bid Advance in the related
Notice of Competitive Bid Borrowing delivered pursuant to subsection (a)(i)
above. Upon the occurrence and during the continuance of an Event of Default
under Section 6.01(a) or 6.01(f) or at the request of the Required Lenders
during the existence of any other Event of Default, the Borrower shall pay
interest on the amount of unpaid principal of and interest on each Competitive
Bid Advance owing to a Lender, payable in arrears on the date or dates interest
is payable thereon, at a rate per annum equal at all times to 2% per annum above
the rate per annum otherwise required to be paid on such Competitive Bid
Advance.
<PAGE>

                                      26

          (f) The indebtedness of the Borrower resulting from each Competitive
Bid Advance made to the Borrower as part of a Competitive Bid Borrowing shall be
evidenced by the Competitive Bid Note of the Borrower payable to the order of
the Lender making such Competitive Bid Advance.

          (g) Upon delivery of each Notice of Competitive Bid Borrowing, the
Borrower shall pay a non-refundable fee of $1,500 to the Administrative Agent
for its own account.

          SECTION 2.04.  Repayment of Committed Advances.  The Borrower shall
repay to the Administrative Agent for the ratable account of the Lenders on the
Final Maturity Date the aggregate outstanding principal amount of the Committed
Advances then outstanding.

          SECTION 2.05.  Termination or Reduction of the Commitments. (a)
Optional. The Borrower may, upon at least three Business Days' notice to the
Administrative Agent, terminate in whole or reduce in part the Unused
Commitments; provided, however, that each partial reduction (i) shall be in an
aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in excess
thereof and (ii) shall be made ratably among the Lenders in accordance with
their Commitments.

          (b) Mandatory.  The Committed Facility shall be automatically and
permanently reduced on each date on which prepayment thereof would be required
to be made pursuant to Section 2.06(b) in an amount equal to the amount of such
prepayment (irrespective of whether any Committed Advances are outstanding or
not), provided that each such reduction of the Committed Facility shall be made
ratably among the Lenders in accordance with their Commitments.

          SECTION 2.06.  Prepayments.  (a)  Optional.  The Borrower may, upon at
least one Business Day's notice in the case of Base Rate Advances and three
Business Days' notice in the case of Eurodollar Rate Advances, in each case to
the Administrative Agent stating the proposed date and aggregate principal
amount of the prepayment, and if such notice is given the Borrower shall, prepay
the outstanding aggregate principal amount of the Committed Advances comprising
part of the same Committed Borrowing in whole or ratably in part, together with
accrued interest to the date of such prepayment on the aggregate principal
amount prepaid; provided, however, that (x) each partial prepayment shall be in
an aggregate principal amount of $10,000,000 or an integral multiple of
$1,000,000 in excess thereof and (y) if any prepayment of
a Eurodollar Rate Advance is made on a date other than the last day of an
Interest Period for such Committed Advance, the Borrower shall also pay any
amounts owing pursuant to Section 9.04(c).

          (b) Mandatory.  (i) The Borrower shall, on the date of receipt of the
Net Cash Proceeds by the Borrower or any of its Subsidiaries from (A) the sale,
lease, transfer or other disposition of any assets of the Borrower or any of its
Subsidiaries (other than any sale, lease, transfer or other disposition of
assets pursuant to clause (i), (ii), (iii) or (v) of Section 5.02(e)), (B) the
incurrence or issuance by the Borrower or any of its Subsidiaries of any Debt
for borrowed money (other than under this Agreement or Debt issued pursuant to
Section 5.02 (b) (vi)) and (C) the sale or issuance by the Borrower or any of
its Subsidiaries of any Equity Interests (including Preferred Securities) to
Persons that are not Affiliates of the Loan Parties, prepay an aggregate
principal amount of the Committed Advances comprising part of the same Committed
Borrowings in an amount equal to the Prepayment Percentage of the amount of such
Net Cash Proceeds; provided that no prepayment shall be required to
<PAGE>

                                      27

the extent of the first $25,000,000 of Net Cash Proceeds generated by any of the
events described under (A), (B) or (C) of this Section 2.06, provided that no
more than an aggregate amount of Net Cash Proceeds equal to $75,000,000 shall be
excluded from the requirements of this Section 2.06(b)(i)); provided further
that any portion of such prepayment that would be applied to any Eurodollar Rate
Advance and would be made on a date other than the last day of an Interest
Period for such Committed Advance shall be so paid and applied, at the option of
the Borrower, within two weeks upon receipt.

          (ii) All prepayments under this subsection (b) in respect of
Eurodollar Rate Advances shall be made together with accrued interest to the
date of such prepayment on the principal amount prepaid.

          SECTION 2.07.  Interest. (a) Scheduled Interest.  The Borrower shall
pay interest on the unpaid principal amount of each Committed Advance owing to
each Lender from the date of such Committed Advance until such principal amount
shall be paid in full, at the following rates per annum:

          (i) Base Rate Advances.  During such periods as such Committed Advance
     is a Base Rate Advance, a rate per annum equal at all times to the sum of
     (A) the Base Rate in effect from time to time plus (B) the Applicable
     Margin in effect from time to time, payable in arrears quarterly on the
     last day of each March, June, September and December during such periods
     and on the Final Maturity Date.

          (ii) Eurodollar Rate Advances.  During such periods as such Committed
     Advance is a Eurodollar Rate Advance, a rate per annum equal at all times
     during each Interest Period for such Committed Advance to the sum of (A)
     the Eurodollar Rate for such Interest Period for such Committed Advance
     plus (B) the Applicable Margin in effect from time to time, payable in
     arrears on the last day of such Interest Period and, if such Interest
     Period has a duration of more than three months, on each day that occurs
     during such Interest Period every three months from the first day of such
     Interest Period and on the date such Eurodollar Rate Advance shall be
     Converted or paid in full.

          (iii)  Regulation D Compensation.  Each Lender that is subject to
     reserve requirements of the Board of Governors of the Federal Reserve
     System (or any successor) may require the Borrower to pay,
     contemporaneously with each payment of interest on Eurodollar Rate
     Advances, additional interest on the related Eurodollar Rate Advances of
     such Lender at the rate per annum equal to the excess of (i)(A) the
     applicable Eurodollar Rate, divided by (B) one minus the Eurodollar Rate
     Reserve Requirement over (ii) the rate specified in clause (i)(A).  Any
     Lender wishing to require payment of such additional interest shall so
     notify the Borrower directly, in which case such additional interest on the
     Eurodollar Rate Advances of such Lender shall be payable to such Lender at
     the place indicated in such notice with respect to each Interest Period
     commencing after the giving of such notice.

          (b) Default Interest.  Upon the occurrence and during the existence of
an Event of Default under Section 6.01(a) or 6.01(f) or at the request of the
Required Lenders during the existence of any other Event of Default, the
Borrower shall pay interest on (i) the unpaid principal amount of each Committed
Advance owing to each Lender, payable in arrears on the dates referred to in
clause (a)(i) or (a)(ii) above, at a rate per annum equal at all times to 2% per
annum above the rate per annum required to be paid on such Committed Advance
pursuant to clause (a)(i) or
<PAGE>

                                      28

(a)(ii) above and (ii) to the fullest extent permitted by law, the amount of any
interest, fee or other amount payable under the Loan Documents that is not paid
when due, from the date such amount shall be due until such amount shall be paid
in full, payable in arrears on the date such amount shall be paid in full and on
demand, at a rate per annum equal at all times to 2% per annum above the rate
per annum required to be paid, in the case of interest, on the Type of Committed
Advance on which such interest has accrued pursuant to clause (a)(i) or (a)(ii)
above and, in all other cases, on Base Rate Advances pursuant to clause (a)(i)
above.

          (c) Notice of Interest Period and Interest Rate.  Promptly after
receipt of a Notice of  Committed Borrowing pursuant to Section 2.02(a), a
notice of Conversion pursuant to Section 2.09 or a notice of selection of an
Interest Period pursuant to the terms of the definition of "Interest Period",
the Administrative Agent shall give notice to the Borrower and each Lender of
the applicable Interest Period and the applicable interest rate determined by
the Administrative Agent for purposes of clause (a)(i) or (a)(ii) above.

          SECTION 2.08.  Fees.  (a)  Ticking Fee.  In respect of any portion of
the Commitments, the Borrower shall pay to the Administrative Agent for the
account of the Lenders a ticking fee, from April 6, 1999 in the case of each
Initial Lender and from the effective date specified in the Assignment and
Acceptance pursuant to which it became a Lender in the case of
each other Lender until the date on which such portion of the Commitments is
available to be borrowed pursuant to the provisions of Section 3.01, payable in
arrears on the date of the initial Committed Borrowing hereunder, thereafter
quarterly on the last day of each March, June, September and December,
commencing June 30, 1999, and on the Termination Date, at the rate of 1/10 of 1%
per annum on the average daily unavailable Commitment of each Lender during such
quarter; provided, however, that no ticking fee shall accrue on the Commitment
of a Defaulting Lender so long as such Lender shall be a Defaulting Lender; and
provided further that no ticking fee shall accrue on the portion of the
Commitments on which the facility fee is accruing pursuant to Section 2.08(b).

          (b) Facility Fee.  The Borrower shall pay to the Administrative Agent
for the account of the Lenders a facility fee, from the Effective Date in the
case of each Initial Lender and from the effective date specified in the
Assignment and Acceptance pursuant to which it became a Lender in the case of
each other Lender until the Termination Date, payable in arrears quarterly on
the last day of each March, June, September and December, commencing June 30,
1999, and on the Final Maturity Date, at the rate of the Applicable Facility Fee
Percentage on the average daily available Commitment of each Lender during such
quarter; provided, however, that no facility fee shall accrue on any of the
Commitments of a Defaulting Lender so long as such Lender shall be a Defaulting
Lender.

          (c) Agents' Fees.  The Borrower shall pay to each Agent for its own
account such fees as may from time to time be agreed between the Borrower and
such Agent.

          SECTION 2.09.  Conversion of Advances.  (a)  Optional.  The Borrower
may on any Business Day, upon notice given to the Administrative Agent not later
than 11:00 A.M. (New York City time) on the third Business Day prior to the date
of the proposed Conversion and subject to the provisions of Section 2.10,
Convert all or any portion of the Committed Advances of one Type
<PAGE>

                                      29

comprising the same Committed Borrowing into Committed Advances of the other
Type; provided, however, that any Conversion of Eurodollar Rate Advances into
Base Rate Advances shall be made only on the last day of an Interest Period for
such Eurodollar Rate Advances, any Conversion of Base Rate Advances into
Eurodollar Rate Advances shall be in an amount not less than the minimum amount
specified for a Committed Borrowing in Section 2.01, no Conversion of any
Committed Advances shall result in more separate Committed Borrowings than
permitted under Section 2.02(b) and each Conversion of Committed Advances
comprising part of the same Committed Borrowing shall be made ratably among the
Lenders in accordance with their Commitments. Each such notice of Conversion
shall, within the restrictions specified above, specify (i) the date of such
Conversion, (ii) the Advances to be Converted and (iii) if such Conversion is
into Eurodollar Rate Advances, the duration of the initial Interest Period for
such Committed Advances. Each notice of Conversion shall be irrevocable and
binding on the Borrower.

          (b) Mandatory. (i) On the date on which the aggregate unpaid
principal amount of Eurodollar Rate Advances comprising any Committed Borrowing
shall be reduced, by payment or prepayment or otherwise, to less than
$10,000,000, such Committed Advances shall automatically Convert into Base Rate
Advances at the end of the applicable Interest Period.

          (ii) If the Borrower shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, the
Administrative Agent will forthwith so notify the Borrower and the Lenders,
whereupon each such Eurodollar Rate Advance will automatically, on the last day
of the then existing Interest Period therefor, Convert into a Base Rate Advance.

          (iii) Upon the occurrence and during the existence of an Event of
Default under Section 6.01(a) or 6.01(f) or at the request of the Required
Lenders during the existence of any other Event of Default, (x) each Eurodollar
Rate Advance will automatically, on the last day of the then existing Interest
Period therefor, Convert into a Base Rate Advance and (y) the obligation of the
Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be
suspended.

          SECTION 2.10.  Increased Costs, Etc. (a) If, due to either (i) the
introduction of or any change in or in the interpretation of, in each case after
the date hereof, any law or regulation or (ii) the compliance with any guideline
or request issued after the date hereof from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or of making, funding
or maintaining Eurodollar Rate Advances or LIBO Rate Advances (excluding, for
purposes of this Section 2.10, any such increased costs resulting from (x) Taxes
or Other Taxes (as to which Section 2.12 shall govern) and (y) changes in the
basis of taxation of overall net income or overall gross income by the United
States or by the foreign jurisdiction or state under the laws of which such
Lender is organized or has its Applicable Lending Office or any political
subdivision thereof), then the Borrower shall from time to time, within 5 days
after demand by such Lender (with a copy of such demand to the Administrative
Agent), which demand shall include a statement of the basis for such demand and
a calculation in reasonable detail of the amount demanded, pay to the
Administrative Agent for the account of such Lender additional amounts
sufficient to compensate such Lender for such increased cost.  A certificate as
to the amount of such increased cost,
<PAGE>

                                      30

submitted to the Borrower by such Lender, shall be conclusive and binding for
all purposes, absent manifest error.

          (b) If, due to either (i) the introduction of or any change in or in
the interpretation of any law or regulation, in each case after the date hereof,
or (ii) the compliance with any guideline or request issued after the date
hereof from any central bank or other governmental authority (whether or not
having the force of law), there shall be any increase in the amount of capital
required or expected to be maintained by any Lender or any corporation
controlling such Lender as a result of or based upon the existence of such
Lender's commitment to lend hereunder and other commitments of such type, then,
within 5 days after demand by such Lender or such corporation (with a copy of
such demand to the Administrative Agent), which demand shall include a statement
of the basis for such demand and a calculation in reasonable detail of the
amount demanded, the Borrower shall pay to the Administrative Agent for the
account of such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender in the light of such
circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender's commitment
to lend hereunder. A certificate as to such amounts submitted to the Borrower by
such Lender shall be conclusive and binding for all purposes, absent manifest
error.

          (c) If, prior to the first day of any Interest Period with respect to
any Eurodollar Rate Advances, the Required Lenders notify the Administrative
Agent that the Eurodollar Rate for such Interest Period for such Committed
Advances will not adequately reflect the cost to such Lenders of making, funding
or maintaining their Eurodollar Rate Advances for such Interest Period, the
Administrative Agent shall forthwith so notify the Borrower and the Lenders,
whereupon each such Eurodollar Rate Advance will (i) in the case of requested
new Eurodollar Rate Advances, be made as or remain Base Rate Advances or as a
Eurodollar Rate Advance with a different Interest Period as to which the
Required Lenders have not given such a notice and (ii) in the case of existing
Eurodollar Rate Advances, automatically, on the last day of the then existing
Interest Period therefor, Convert into Base Rate Advances or be continued as a
Eurodollar Rate Advance with a different Interest Period as  to which the
Required Lenders have not given such a notice.

          (d) Notwithstanding any other provision of this Agreement, if the
introduction of or any change in or in the interpretation of any law or
regulation in each case after the date hereof, shall make it unlawful, or any
central bank or other governmental authority shall assert that it is unlawful,
for any Lender or its Eurodollar Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or LIBO Rate Advances or to continue
to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
then, on notice thereof and demand therefor by such Lender to the Borrower
through the Administrative Agent, (i) each Eurodollar Rate Advance or LIBO Rate
Advance, as the case may be, of such Lender will automatically, upon such
demand, Convert into a Base Rate Advance or an Advance that bears interest at
the rate set forth in Section 2.07(a)(i), as the case may be, and (ii) the
obligation of such Lender to make Eurodollar Rate Advances or LIBO Rate Advances
or to Convert Committed Advances into Eurodollar Rate Advances shall be
suspended until the Administrative Agent shall notify the Borrower that such
Lender has determined that the circumstances causing such suspension no longer
exist (it being understood that such Lender shall make and maintain Base Rate
Advances in the amount that would otherwise be made and maintained by such
Lender as Eurodollar Advances absent the circumstances described above).
<PAGE>

                                      31

          (e) Each Lender shall promptly notify the Borrower and the
Administrative Agent of any event of which it has actual knowledge which will
result in, and will use reasonable commercial efforts available to it (and not,
in such Lender's good faith judgment, otherwise disadvantageous to such Lender)
to mitigate or avoid, (i) any obligation by the Borrower to pay any amount
pursuant to subsection (a) or (b) above or pursuant to Section 2.12 or (ii) the
occurrence of any circumstances of the nature described in subsection (c) or (d)
above (and, if any Lender has given notice of any event described in clause (i)
or (ii) above and thereafter such event ceases to exist, such Lender shall
promptly so notify the Borrower and the Administrative Agent). Without limiting
the foregoing, each Lender will designate a different Applicable Lending Office
if such designation will avoid (or reduce the cost to the Borrower of) any event
described in clause (i) or (ii) of the preceding sentence and such designation
will not, in such Lender's good faith judgment, be otherwise disadvantageous to
such Lender.

          (f) Notwithstanding the provisions of subsections (a) and (b) above or
Section 2.12 (and without limiting subsection (e) above), if any Lender fails to
notify the Borrower of any event or circumstance that will entitle such Lender
to compensation pursuant subsection (a) or (b) above or Section 2.12 within 120
days after such Lender obtains actual knowledge of such event or circumstance,
then such Lender shall not be entitled to compensation, from the Borrower for
any amount arising prior to the date which is 120 days before the date on which
such Lender notifies the Borrower of such event or circumstance.

          SECTION 2.11.  Payments and Computations.  (a)  The Borrower shall
make each payment hereunder and under the Notes, irrespective of any right of
counterclaim or set-off (except as otherwise provided in Section 2.15), not
later than 11:00 A.M. (New York City time) on the day when due in U.S. dollars
to the Administrative Agent at the Administrative Agent's Account in same day
funds, with payments being received by the Administrative Agent after such time
being deemed to have been received on the next succeeding Business Day.  The
Administrative Agent will promptly thereafter cause like funds to be distributed
(i) if such payment by the Borrower is in respect of principal, interest,
ticking fees, facility fees or any other amount then payable hereunder and under
the Notes to more than one Lender, to such Lenders for the account of their
respective Applicable Lending Offices ratably in accordance with the amounts of
such respective amount then payable to such Lenders and (ii) if such payment by
the Borrower is in respect of any amount  then payable hereunder to one Lender,
to such Lender for the account of its Applicable Lending Office, in each case to
be applied in accordance with the terms of this Agreement.  Upon its acceptance
of an Assignment and Acceptance and recording of the information contained
therein in the Register pursuant to Section 9.07(d), from and after the
effective date of such Assignment and Acceptance, the Administrative Agent shall
make all payments hereunder and under the Notes in respect of the interest
assigned thereby to the Lender assignee thereunder, and the parties to such
Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves.

          (b) The Borrower hereby authorizes each Lender, if an Event of Default
under Section 6.01(a) has occurred and is continuing to charge from time to time
against any or all of the Borrower's accounts with such Lender any amount that
resulted in such Event of Default.

          (c) All computations of interest on Base Rate Advances (and any other
amount payable by reference to the Base Rate) when the Base Rate is determined
by reference to MGT's prime
<PAGE>

                                      32

rate shall be made by the Administrative Agent on the basis of a year of 365 or,
if applicable, 366 days; all other computations of interest and fees shall be
made by the Administrative Agent on the basis of a year of 360 days. All such
computations shall be made for the actual number of days (including the first
day but excluding the last day) occurring in the period for which such interest
or fees are payable. Each determination by the Administrative Agent of an
interest rate or fee hereunder shall be conclusive and binding for all purposes,
absent manifest error.

          (d) Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or fee, as the case may be;
provided, however, that, if such extension would cause payment of interest on or
principal of Eurodollar Rate Advances or LIBO Rate Advances to be made in the
next following calendar month, such payment shall be made on the next preceding
Business Day.

          (e) Unless the Administrative Agent shall have received notice from
the Borrower prior to the date on which any payment is due to any Lender
hereunder that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each such Lender on
such due date an amount equal to the amount then due such Lender.  If and to the
extent the Borrower shall not have so made such payment in full to the
Administrative Agent, each such Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at the Federal Funds Rate.

          SECTION 2.12.  Taxes.  (a)  Any and all payments by any Loan Party
hereunder or under the Notes shall be made, in accordance with Section 2.11,
free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender and each Agent, taxes
that are imposed on its overall net income by the United States and taxes that
are imposed on its overall net income (and franchise taxes imposed in lieu
thereof) by the state or foreign jurisdiction under the laws of which such
Lender or such Agent, as the case may be, is organized or any political
subdivision thereof and, in the case of each Lender, taxes that are
imposed on its overall net income (and franchise taxes imposed in lieu thereof)
by the state or foreign jurisdiction of such Lender's Applicable Lending Office
or any political subdivision thereof (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities in respect of
payments hereunder or under the Notes being herein referred to as "Taxes").  If
any Loan Party shall be required by law to deduct any Taxes from or in respect
of any sum payable hereunder or under any Note to any Lender or any Agent, (i)
the sum payable by such Loan Party shall be increased as may be necessary so
that after such Loan Party and the Administrative Agent have made all required
deductions (including deductions applicable to additional sums payable under
this Section 2.12) such Lender or such Agent, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) such Loan Party shall make all such deductions and (iii) such Loan Party
shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law.
<PAGE>

                                      33

          (b) In addition, each Loan Party shall pay any present or future
stamp, documentary, excise, property or similar taxes, charges or levies that
arise from any payment made hereunder or under the Notes or from the execution,
delivery or registration of, performance under, or otherwise with respect to,
this Agreement or the Notes (herein referred to as "Other Taxes").

          (c) Each Loan Party shall indemnify each Lender and each Agent for and
hold them harmless against the full amount of Taxes and Other Taxes, and for the
full amount of taxes of any kind imposed by any jurisdiction on amounts payable
under this Section 2.12, imposed on or paid by such Lender or such Agent (as the
case may be) and any liability (including penalties, additions to tax, interest
and expenses) arising therefrom or with respect thereto.  This indemnification
payment shall be made within 30 days from the date such Lender or such Agent (as
the case may be) makes written demand therefor.

          (d) Within 30 days after the date of any payment of Taxes, each Loan
Party shall furnish to the Administrative Agent, at its address referred to in
Section 9.02, the original or a certified copy of a receipt evidencing such
payment.  In the case of any payment hereunder or under the Notes by or on
behalf of a Loan Party through an account or branch outside the United States or
by or on behalf of a Loan Party by a payor that is not a United States person,
if such Loan Party determines that no Taxes are payable in respect thereof, such
Loan Party shall furnish, or shall cause such payor to furnish, to the
Administrative Agent, at such address, an opinion of counsel acceptable to the
Administrative Agent stating that such payment is exempt from Taxes. For
purposes of subsections (d) and (e) of this Section 2.12, the terms "United
States" and "United States person" shall have the meanings specified in Section
7701(a)(9) and 7701(a)(10) of the Internal Revenue Code, respectively.

          (e) Each Lender organized under the laws of a jurisdiction outside the
United States shall, on or prior to the date of its execution and delivery of
this Agreement in the case of each Initial Lender, and on the date of the
Assignment and Acceptance pursuant to which it becomes a Lender in the case of
each other Lender, and from time to time thereafter as requested in writing by
the Borrower (but only so long thereafter as such Lender remains lawfully able
to do so), provide each of the Administrative Agent and the Borrower with two
original Internal Revenue Service forms W-8BEN (or, if delivered on or before
December 31, 1999, form 1001) or W-8ECI (or, if delivered on or before December
31, 1999, form 4224) or (in the case of a Lender that has certified in writing
to the Administrative Agent that it is not a "bank" as defined in Section
881(c)(3)(A) of the Internal Revenue Code) form W-8 (and, if such Lender
delivers a form W-8, a certificate representing that such Lender is not a "bank"
for purposes of Section 881(c)(3)(A) of the Internal Revenue Code, is not a 10-
percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal
Revenue Code) of the Borrower and is not a controlled foreign corporation
related to the Borrower (within the meaning of Section 864(d)(4) of the Internal
Revenue Code)), as appropriate, or any successor or other form prescribed by the
Internal Revenue Service, certifying that such Lender is exempt from or entitled
to a reduced rate of United States withholding tax on payments pursuant to this
Agreement or the Notes or, in the case of a Lender providing a form W-8,
certifying that such Lender is a foreign corporation, partnership, estate or
trust. If the forms provided by a Lender at the time such Lender first becomes a
party to this Agreement indicate a United States interest withholding tax rate
in excess of zero, withholding tax at such rate shall be considered excluded
from Taxes unless and until such Lender provides the appropriate forms
certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate only shall be
<PAGE>

                                      34

considered excluded from Taxes for periods governed by such forms; provided,
however, that if, at the effective date of the Assignment and Acceptance
pursuant to which a Lender becomes a party to this Agreement, the Lender
assignor was entitled to payments under subsection (a) of this Section 2.12 in
respect of United States withholding tax with respect to interest paid at such
date, then, to such extent, the term Taxes shall include (in addition to
withholding taxes that may be imposed in the future or other amounts otherwise
includable in Taxes) United States withholding tax, if any, applicable with
respect to the Lender assignee on such date.  If any form or document referred
to in this subsection (e) requires the disclosure of information, other than
information necessary to compute the tax payable and information required on the
date hereof by Internal Revenue Service form W-8BEN, 1001, W-8ECI, 4224 or W-8
(and the related certificate described above), that the Lender reasonably
considers to be confidential, the Lender shall give notice thereof to the
Borrower and shall not be obligated to include in such form or document such
confidential information.

          (f) For any period with respect to which a Lender which may lawfully
do so has failed to provide the Borrower with the appropriate form described in
subsection (e) above (other than if such failure is due to a change in law
occurring after the date on which a form originally was required to be provided
or if such form otherwise is not required under subsection (e) above), such
Lender shall not be entitled to indemnification under subsection (a) or (c) of
this Section 2.12 with respect to Taxes imposed by the United States by reason
of such failure; provided, however, that should a Lender become subject to Taxes
because of its failure to deliver a form required hereunder, the Borrower shall
take such steps as such Lender shall reasonably request to assist such Lender to
recover such Taxes.

          (g) Each Lender represents and warrants to the Borrower and the
Guarantors that, as of the date such Lender becomes a party to this Agreement,
such Lender is entitled to receive payments hereunder from the Borrower and the
Guarantors without deduction or withholding for or on account of any Taxes.

          SECTION 2.13.  Sharing of Payments, Etc.  If any Lender shall obtain
at any time any payment (whether voluntary, involuntary, through the exercise of
any right of set-off, or otherwise, other than as a result of an assignment
pursuant to Section 9.07) (a) on account of obligations due and payable to such
Lender hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such obligations due and
payable to such Lender at such time to (ii) the aggregate amount of the
obligations due and payable to all Lenders hereunder and under the Notes at such
time) of payments on account of the obligations due and payable to all Lenders
hereunder and under the Notes at such time obtained by all the Lenders at such
time or (b) on account of obligations owing (but not due and payable) to such
Lender hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such obligations owing to such
Lender at such time to (ii) the aggregate amount of the obligations owing (but
not due and payable) to all Lenders hereunder and under the Notes at such time)
of payments on account of the obligations owing (but not due and payable) to all
Lenders hereunder and under the Notes at such time obtained by all of the
Lenders at such time, such Lender shall forthwith purchase from the other
Lenders such interests or participating interests in the obligations due and
payable or owing to them, as the case may be, as shall be necessary to cause
such purchasing Lender to share the excess payment ratably with each of them;
provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each other
Lender shall be rescinded and such other Lender shall
<PAGE>

                                      35

repay to the purchasing Lender the purchase price to the extent of such Lender's
ratable share (according to the proportion of (i) the purchase price paid to
such Lender to (ii) the aggregate purchase price paid to all Lenders) of such
recovery together with an amount equal to such Lender's ratable share (according
to the proportion of (i) the amount of such other Lender's required repayment to
(ii) the total amount so recovered from the purchasing Lender) of any interest
or other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered. The Borrower agrees that any Lender so purchasing an
interest or participating interest from another Lender pursuant to this Section
2.13 may, to the fullest extent permitted by law, exercise all its rights of
payment (including the right of set-off) with respect to such interest or
participating interest, as the case may be, as fully as if such Lender were the
direct creditor of the Borrower in the amount of such interest or participating
interest, as the case may be.

          SECTION 2.14.  Use of Proceeds.  The proceeds of the Committed
Advances shall be available (and the Borrower agrees that it shall use such
proceeds) solely to pay to the Seller a portion of the cash consideration in
respect of the Acquisition, pay transaction fees and expenses, provide working
capital for such Borrower and its Subsidiaries and for other general corporate
purposes.

          SECTION 2.15.  Defaulting Lenders.  (a)  In the event that, at any one
time, (i) any Lender shall be a Defaulting Lender, (ii) such Defaulting Lender
shall owe a Defaulted Advance to the Borrower and (iii) the Borrower shall be
required to make any payment hereunder or under any other Loan Document to or
for the account of such Defaulting Lender, then the Borrower may, to the fullest
extent permitted by applicable law, set off and otherwise apply the obligation
of the Borrower to make such payment to or for the account of such Defaulting
Lender against the obligation of such Defaulting Lender to make such Defaulted
Advance.  In the event that, on any date, the Borrower shall so set off and
otherwise apply its obligation to make any such payment against the obligation
of such Defaulting Lender to make any such Defaulted Advance on or prior to such
date, the amount so set off and otherwise applied by the Borrower shall
constitute for all purposes of this Agreement and the other Loan Documents an
Advance by such Defaulting Lender made on the date of such setoff.  Such
Committed Advance shall be considered, for all purposes of this Agreement, to
comprise part of the Committed Borrowing in connection with which such Defaulted
Advance was originally required to have been made pursuant to Section 2.01, even
if the other Committed Advances comprising such Committed Borrowing shall be
Eurodollar Rate Advances on the date such Committed Advance is deemed to be made
pursuant to this subsection (a).  The Borrower shall notify the Administrative
Agent at any time the Borrower exercises its right of set-off pursuant to this
subsection (a) and shall set forth in such notice (A) the name of the Defaulting
Lender and the Defaulted Advance required to be made by such Defaulting Lender
and (B) the amount set off and otherwise applied in respect of such Defaulted
Advance pursuant to this subsection (a).  Any portion of such payment otherwise
required to be made by the Borrower to or for the account of such Defaulting
Lender which is paid by the Borrower, after giving effect to the amount set off
and otherwise applied by the Borrower pursuant to this subsection (a), shall be
applied by the Administrative Agent as specified in subsection (b) or (c) of
this Section 2.15.

          (b) In the event that, at any one time, (i) any Lender shall be a
Defaulting Lender, (ii) such Defaulting Lender shall owe a Defaulted Amount to
any Agent or any of the other Lenders and (iii) the Borrower shall make any
payment hereunder or under any other Loan Document to the Administrative Agent
for the account of such Defaulting Lender, then the Administrative Agent may, on
its behalf or on behalf of such other Agents or such other Lenders and to the
fullest extent permitted by
<PAGE>

                                      36

applicable law, apply at such time the amount so paid by the Borrower to or for
the account of such Defaulting Lender to the payment of each such Defaulted
Amount to the extent required to pay such Defaulted Amount. In the event that
the Administrative Agent shall so apply any such amount to the payment of any
such Defaulted Amount on any date, the amount so applied by the Administrative
Agent shall constitute for all purposes of this Agreement and the other Loan
Documents payment, to such extent, of such Defaulted Amount on such date. Any
such amount so applied by the Administrative Agent shall be retained by the
Administrative Agent or distributed by the Administrative Agent to such other
Agents or such other Lenders, ratably in accordance with the respective portions
of such Defaulted Amounts payable at such time to the Administrative Agent, such
other Agents and such other Lenders and, if the amount of such payment made by
the Borrower shall at such time be insufficient to pay all Defaulted Amounts
owing at such time to the Administrative Agent, such other Agents and such other
Lenders, in the following order of priority:

          (i) first, to the Agents for any Defaulted Amounts then owing to the
     Agents, ratably in accordance with such respective Defaulted Amounts then
     owing to the Agents; and

          (ii) second, to any other Lenders for any Defaulted Amounts then owing
     to such other Lenders, ratably in accordance with such respective Defaulted
     Amounts then owing to such other Lenders.

Any portion of such amount paid by the Borrower for the account of such
Defaulting Lender remaining, after giving effect to the amount applied by the
Administrative Agent pursuant to this subsection (b), shall be applied by the
Administrative Agent as specified in subsection (c) of this Section 2.15.

          (c) In the event that, at any one time, (i) any Lender shall be a
Defaulting Lender, (ii) such Defaulting Lender shall not owe a Defaulted Advance
or a Defaulted Amount and (iii) the Borrower, any Agent or any other Lender
shall be required to pay or distribute any amount hereunder or under any other
Loan Document to or for the account of such Defaulting Lender, then the Borrower
or such Agent or such other Lender shall pay such amount to the Administrative
Agent to be held by the Administrative Agent, to the fullest extent permitted by
applicable law, in escrow or the Administrative Agent shall, to the fullest
extent permitted by applicable law, hold in escrow such amount otherwise held by
it.  Any funds held by the Administrative Agent in escrow under this subsection
(c) shall be deposited by the Administrative Agent in an account with MGT, in
the name and under the control of the Administrative Agent, but subject to the
provisions of this subsection (c).  The terms applicable to such account,
including the rate of interest payable with respect to the credit balance of
such account from time to time, shall be MGT's standard terms applicable to
escrow accounts maintained with it.  Any interest credited to such account from
time to time shall be held by the Administrative Agent in escrow under, and
applied by the Administrative Agent from time to time in accordance with the
provisions of, this subsection (c).  The Administrative Agent shall, to the
fullest extent permitted by applicable law, apply all funds so held in escrow
from time to time to the extent necessary to make any Committed Advances
required to be made by such Defaulting Lender and to pay any amount payable by
such Defaulting Lender hereunder and under the other Loan Documents to the
Administrative Agent or any other Lender, as and when such Committed Advances or
amounts are required to be made or paid and, if the amount so held
in escrow shall at any time be insufficient to make and pay all such Committed
Advances and amounts required to be made or paid at such time, in the following
order of priority:
<PAGE>

                                      37

          (i) first, to the Agents for any amounts then due and payable by such
     Defaulting Lender to the Agents hereunder, ratably in accordance with such
     amounts then due and payable to the Agents;

          (ii) second, to any other Lenders for any amount then due and payable
     by such Defaulting Lender to such other Lenders hereunder, ratably in
     accordance with such respective amounts then due and payable to such other
     Lenders; and

          (iii)  third, to the Borrower for any Committed Advance then required
     to be made by such Defaulting Lender pursuant to the Commitment of such
     Defaulting Lender.

In the event that any Lender that is a Defaulting Lender shall, at any time,
cease to be a Defaulting Lender, any funds held by the Administrative Agent in
escrow at such time with respect to such Lender shall be distributed by the
Administrative Agent to such Lender and applied by such Lender to the
obligations owing to such Lender at such time under this Agreement and the other
Loan Documents ratably in accordance with the respective amounts of such
obligations outstanding at such time.

          (d) The rights and remedies against a Defaulting Lender under this
Section 2.15 are in addition to other rights and remedies that the Borrower may
have against such Defaulting Lender with respect to any Defaulted Advance and
that any Agent or any Lender may have against such Defaulting Lender with
respect to any Defaulted Amount.

          SECTION 2.16.  Extension of Final Maturity Date.  At least 30 days
prior to the Termination Date but in no event earlier than 60 days prior to the
Termination Date, the Borrower may, by written notice to the Administrative
Agent, request that the Final Maturity Date be a date occurring up to the first
anniversary of the then scheduled Termination Date. Such request shall be
irrevocable and binding upon the Borrower.  The Administrative Agent shall
promptly notify each Lender of such request.  Subject to the satisfaction of the
applicable conditions set forth in Section 3.02 as of such Termination Date, the
Final Maturity Date shall be, effective as of such Termination Date, such date
as the Borrower shall request pursuant to this Section 2.16.  Notwithstanding
the foregoing, the Borrower may not request an extension of the Final Maturity
Date unless the ratio of Adjusted Consolidated Debt to Total Capitalization was
0.40 to 1 or less as of the last day of the most recent fiscal quarter of the
Parent.

          SECTION 2.17.  Replacement of Affected Lender.  At any time any Lender
is an Affected Lender, the Borrower may replace such Affected Lender as a party
to this Agreement with one or more other Lenders and/or, with the consent of the
Administrative Agent (which shall not be unreasonably withheld) Eligible
Assignees, and upon notice from the Borrower such Affected Lender shall assign
pursuant to an Assignment and Acceptance, and without recourse or warranty, its
Commitment, its Committed Advances, its Committed Note and all of its other
rights and obligations hereunder to such other Lenders and/or Eligible Assignees
for a purchase price equal to the sum of the principal amount of the Committed
Advances so assigned, all accrued and unpaid interest thereon, such Affected
Lender's ratable share of all accrued and unpaid fees payable pursuant to
Section 2.08, any amounts payable pursuant to Section 9.04(c) as a result of
such Affected Lender receiving payment of any Eurodollar Rate Advance prior to
the end of an Interest Period therefor (assuming for such purpose
<PAGE>

                                      38

that receipt of payment pursuant to such Assignment and Acceptance constitutes
payment of such Eurodollar Rate Advances) and all other obligations owed to such
Affected Lender hereunder.

                                  ARTICLE III

                             CONDITIONS OF LENDING

          SECTION 3.01.  Conditions Precedent to All Committed Borrowings in
Respect of the Acquisition.  (a)   Conditions Precedent to Initial Extension of
Credit.  The obligation of each Lender to make a Committed Advance on the
occasion of the Initial Extension of Credit hereunder is subject to the
satisfaction of the following conditions precedent before or concurrently with
the Initial Extension of Credit:

          (i) The Administrative Agent shall have received on or before the day
     of the Initial Extension of Credit the following, each dated such day
     (unless otherwise specified), in form and substance reasonably satisfactory
     to the Administrative Agent (unless otherwise specified) and (except for
     the Committed Notes) in sufficient copies for each Lender:

               (A) The Committed Notes payable to the order of the Lenders.

               (B) Certified copies of the resolutions of the Board of Directors
          of each Loan Party approving the Acquisition and the other
          transactions contemplated by the Transaction Documents and each
          Transaction Document to which it is or is to be a party, and of all
          documents evidencing other necessary corporate action and governmental
          and other third party approvals and consents, if any, with respect to
          the Acquisition and the other transactions contemplated by the
          Transaction Documents and each Transaction Document to which it is or
          is to be a party.

               (C) A copy of a certificate or certificates of the Secretary of
          State or other appropriate official of the jurisdiction of
          incorporation of (x) the Borrower, dated reasonably near the date of
          the Initial Extension of Credit, certifying (A) as to a true and
          correct copy of the charter of the Borrower and each amendment thereto
          on file in such Secretary's office and (B) that (1) such amendments
          are the only amendments to the Borrower's charter on file in such
          Secretary's office, (2) the Borrower has paid all franchise taxes to
          the date of such certificate and (C) the Borrower is duly incorporated
          and in good standing or presently subsisting under the laws of the
          State of the jurisdiction of its incorporation and (y) each other Loan
          Party, dated reasonably near the Initial Extension of Credit,
          certifying as to the good standing (or existence) of such Loan Party.

               (D) A certificate of each Loan Party, signed on behalf of such
          Loan Party by its President or a Vice President and its Secretary or
          any Assistant Secretary, dated the date of the Initial Extension of
          Credit (the statements made in which certificate shall be true on and
          as of the date of the Initial Extension of Credit), certifying as to
          (1) in the
<PAGE>

                                      39

     case of the Borrower, the absence of any amendments to the charter of such
     Loan Party since the date of the Secretary of State's certificate referred
     to in Section 3.01(a)(i)(C), (2) a true and correct copy of the bylaws (in
     the case of the Borrower) or the constitutional documents (in the case of
     each Guarantor) of such Loan Party as in effect on the date on which the
     resolutions referred to in Section 3.01(a)(i)(B) were adopted and on the
     date of the Initial Extension of Credit, (3) the due incorporation and good
     standing or valid existence of such Loan Party as a corporation organized
     under the laws of the jurisdiction of its incorporation, and the absence of
     any proceeding for the dissolution or liquidation of such Loan Party, (4)
     the truth of the representations and warranties contained in the Loan
     Documents as though made on and as of the date of the Initial Extension of
     Credit and (5) the absence of any event occurring and continuing, or
     resulting from the Initial Extension of Credit, that constitutes a Default.

               (E) A certificate of the Secretary or an Assistant Secretary of
     each Loan Party certifying the names and true signatures of the officers of
     such Loan Party authorized to sign each Transaction Document to which it is
     or is to be a party and the other documents to be delivered hereunder and
     thereunder.

               (F) Certified copy of  the Purchase Agreement, duly executed by
     the parties thereto, together with all agreements, instruments and other
     documents delivered in connection therewith as the Administrative Agent
     shall reasonably request.

               (G) Certificates, in substantially the form of Exhibit D hereto,
     attesting to the Solvency of each Loan Party before and after giving effect
     to the Acquisition and the other transactions contemplated by the
     Transaction Documents, from its Chief Financial Officer.

               (H) A favorable opinion of (1) Maples and Calder, Cayman Islands
     counsel for the Parent, in substantially the form of Exhibit E-1 hereto and
     as to such other matters as any Lender through the Administrative Agent may
     reasonably request ,  (2) Mayer, Brown & Platt, New York counsel for the
     Loan Parties, in substantially the form of Exhibit E-2 hereto and as to
     such other matters as any Lender through the Administrative Agent may
     reasonably request and (3) Conyers Dill & Pearman, Bermuda counsel for the
     Subsidiary Guarantors, in substantially the form of Exhibit E-3 hereto and
     as to such other matters as any Lender through the Administrative Agent may
     reasonably request.

               (I) A certificate of the Parent, signed by its President or Chief
     Financial Officer, dated the date of the Initial Extension of Credit,
     certifying as to (1) a description (in reasonable detail) of the portion of
     the Acquisition occurring on the date of the Initial Extension of Credit
     and (2) the percentage that the portion of the purchase price allocable to
     the assets acquired at such time in connection with the Acquisition bears
     to the aggregate purchase price for all assets to be acquired in connection
     with the Acquisition..
<PAGE>

                                      40

          (ii) (x) No development or change occurring after January 11, 1999,
     and no information becoming known after such date, that results in a
     material change in the post-Acquisition corporate and capitalization
     structure of the Parent or in the capitalization structure of the Parent's
     subsidiaries contemplated in the Pre-Commitment Information and (y) the
     Lenders shall be reasonably satisfied with the corporate and legal
     structure and capitalization of the Borrower and each other Loan Party
     (other than the Parent), including the terms and conditions of the
     constitutional documents of each such Person and of each material agreement
     or instrument relating to such structure.

          (iii)  The Lenders shall be reasonably satisfied that all Existing
     Debt, other than Surviving Debt, has been (or concurrently will be)
     prepaid, redeemed or defeased in full or otherwise satisfied and
     extinguished and that all Surviving Debt shall be on terms and conditions
     reasonably satisfactory to the Lenders.

          (iv) Before giving effect to the Acquisition and the other
     transactions contemplated by the Transaction Documents, there shall have
     occurred no material adverse change since September 30, 1998 in the
     business, financial condition, operations or properties of (i) CIGNAP&C or
     (ii) the Parent and its Subsidiaries, taken as a whole.

          (v) There shall exist no action, suit, investigation, litigation or
     proceeding affecting any Loan Party or any of its Subsidiaries pending or
     threatened before any court, governmental agency or arbitrator that (x)
     could be reasonably expected to have a Material Adverse Effect or a
     material adverse effect on the business, financial condition, operations or
     properties of CIGNAP&C or (y) would reasonably be expected to materially
     adversely affect the legality, validity or enforceability of any
     Transaction Document or the consummation of the Acquisition or the other
     transactions contemplated by the Transaction Documents.

          (vi) All governmental and third party consents and approvals necessary
     in connection with the portion of the Acquisition occurring on the date of
     the Initial Extension of Credit and the other transactions contemplated by
     the Transaction Documents to occur on such date shall have been obtained
     (without the imposition of any conditions that are not reasonably
     acceptable to the Lenders and that would reasonably be expected to have a
     Material Adverse Effect) and shall remain in effect, except for any such
     consents and approvals, the absence of which, either individually or in the
     aggregate, would not reasonably be likely to have a Material Adverse
     Effect; all applicable waiting periods in connection with the portion of
     the Acquisition occurring on the date of the Initial Extension of Credit
     and the other transactions contemplated by the Transaction Documents to
     occur on such date shall have expired without any negative action being
     taken by any competent authority; and no law or regulation shall be
     applicable in the reasonable judgment of the Lenders that restrains,
     prevents or imposes materially adverse conditions upon the portion of the
     Acquisition occurring on the date of the Initial Extension of Credit or the
     other transactions contemplated by the Transaction Documents to occur on
     such date.

          (vii)  The Pre-Commitment Information shall be true and correct in all
     material aspects, and no additional information shall have come to the
     attention of the Administrative
<PAGE>

                                      41

     Agent or the Lenders that is inconsistent in any material respect with the
     Pre-Commitment Information or that could reasonably be expected to have a
     Material Adverse Effect.

          (viii)  No development or change occurring after January 11, 1999, and
     no information becoming known after such date, that (x) results in or could
     reasonably be expected to result in a material change in, or material
     deviation from, the Pre-Commitment Information that is or could reasonably
     be expected to be materially adverse to the Parent or any of its
     Subsidiaries or materially adverse to the Lenders or (y) has had or could
     reasonably be expected to have a Material Adverse Effect.

          (ix) The Borrower shall have paid all accrued fees of the Agents and
     the Lenders and all accrued expenses of the Agents (including the accrued
     fees and expenses of counsel to the Administrative Agent and local counsel
     on behalf of all of the Lenders), in each case to the extent then due and
     payable.

          (x) The portion of the Acquisition occurring on the date of the
     Initial Extension of Credit shall have been consummated (or shall be
     concurrently consummated) in accordance with the terms of the Purchase
     Agreement, without any waiver or amendment not consented to by the Lenders
     of any material term, provision or condition set forth therein that would
     reasonably be expected to have a Material Adverse Effect, and in compliance
     with all material applicable laws.

          (xi) The Purchase Agreement shall be in full force and effect.

          (b) Conditions Precedent to All Other Committed Borrowings in Respect
of the Acquisition.  The obligation of each Lender to make a Committed  Advance
on the occasion of each Committed Borrowing (other than in respect of the
Initial Extension of Credit) the proceeds of which shall be used to fund a
portion of the purchase price in respect of the Acquisition shall be subject to
the reasonable satisfaction of the following conditions precedent before or
concurrently with such Committed Borrowing:

          (i) The Administrative Agent shall have received on or before the day
     of such Committed Borrowing a certificate of the Parent,  in form and
     substance reasonably satisfactory to the Administrative Agent (unless
     otherwise specified) and in sufficient copies for each Lender, signed by
     its President or Chief Financial Officer, dated the date of such Committed
     Borrowing, certifying as to (1) a description (in reasonable detail) of the
     portion of the Acquisition occurring on the date of such Committed
     Borrowing and (2)  the percentage that the portion of the purchase price
     allocable to the assets acquired at such time in connection with the
     Acquisition bears to the aggregate purchase price for all assets to be
     acquired in connection with the Acquisition.

          (ii) All governmental and third party consents and approvals necessary
     in connection with the portion of the Acquisition occurring on the date of
     such Committed Borrowing and the other transactions contemplated by the
     Transaction Documents to occur on such date shall have been obtained
     (without the imposition of any conditions that are not reasonably
     acceptable to the Lenders and that would reasonably be expected to have a
     Material Adverse Effect) and shall
<PAGE>

                                      42

     remain in effect, except for any such consents and approvals, the absence
     of which, either individually or in the aggregate, would not reasonably be
     likely to have a Material Adverse Effect; all applicable waiting periods in
     connection with the portion of the Acquisition occurring on the date of
     such Committed Borrowing and the other transactions contemplated by the
     Transaction Documents to occur on such date shall have expired without any
     negative action being taken by any competent authority, and no law or
     regulation shall be applicable in the reasonable judgment of the Lenders,
     that restrains, prevents or imposes materially adverse conditions upon the
     portion of the Acquisition occurring on the date of such Committed
     Borrowing or the other transactions contemplated by the Transaction
     Documents to occur on such date.

          (iii)  The portion of the Acquisition occurring on the date of such
     Committed Borrowing shall have been consummated (or shall be concurrently
     consummated) in accordance with the terms of the Purchase Agreement,
     without any waiver or amendment not consented to by the Lenders of any
     material term, provision or condition set forth therein that would
     reasonably be expected to have a Material Adverse Effect and in compliance
     with all material applicable laws.

          (iv) The Purchase Agreement shall be in full force and effect.

          SECTION 3.02.  Conditions Precedent to Each Committed Borrowing.  The
obligation of each Lender to make a Committed Advance on the occasion of each
Committed Borrowing (including the initial Committed Borrowing) shall be subject
to the further conditions precedent that on the date of such Committed Borrowing
(a) the following statements shall be true (and each of the giving of the
applicable Notice of Committed Borrowing and the acceptance by the Borrower of
the proceeds of such Committed Borrowing shall constitute a representation and
warranty by the Borrower that both on the date of such notice and on the date of
such Committed Borrowing such statements are true):

          (i) the representations and warranties contained in each Loan Document
     are correct in all material respects on and as of such date, before and
     after giving effect to such Committed Borrowing and to the application of
     the proceeds therefrom, as though made on and as of such date, other than
     any such representations or warranties that, by their terms, refer to a
     specific date other than the date of such Committed Borrowing, in which
     case as of such specific date; and

          (ii) no Default has occurred and is continuing, or would result from
     such Committed Borrowing or from the application of the proceeds therefrom;

and (b) the Administrative Agent shall have received such other approvals,
opinions or documents as any Lender through the Administrative Agent may
reasonably request.

          SECTION 3.03.  Conditions Precedent to Each Competitive Bid Borrowing.
The obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (i) the Administrative Agent shall have received the written
<PAGE>

                                      43

confirmatory Notice of Competitive Bid Borrowing with respect thereto and (ii)
on the date of such Competitive Bid Borrowing the following statements shall be
true (and each of the giving of the applicable Notice of Competitive Bid
Borrowing and the acceptance by the Borrower of the proceeds of such Competitive
Bid Borrowing shall constitute a representation and warranty by the Borrower
that on the date of such Competitive Bid Borrowing such statements are true):

          (a) the representations and warranties contained in Section 4.01 are
     correct in all material respects on and as of the date of such Competitive
     Bid Borrowing, before and after giving effect to such Competitive Bid
     Borrowing and to the application of the proceeds therefrom, as though made
     on and as of such date, other than any such representations or warranties
     that, by their terms, refer to a specific date other than the date of such
     Competitive Bid Borrowing, in which case as of such specific date, and

          (b) no Default has occurred and is continuing, or would result from
     such Competitive Bid Borrowing or from the application of the proceeds
     therefrom.

          SECTION 3.04.  Determinations Under Section 3.01.  For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Administrative Agent responsible for the transactions contemplated by the
Loan Documents shall have received notice from such Lender prior to the Initial
Extension of Credit specifying its objection thereto and such Lender shall not
have made available to the Administrative Agent such Lender's ratable portion of
such Committed Borrowing.

                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES

          SECTION 4.01.  Representations and Warranties of the Parent and the
Borrower. Each of the Parent and the Borrower represents and warrants as
follows:

          (a) Each Loan Party and each of its Subsidiaries (i) is duly organized
     or formed, validly existing and, to the extent such concept applies,  in
     good standing under the laws of the jurisdiction of its incorporation or
     formation, (ii) is duly qualified and in good standing as a foreign
     corporation or other entity in each other jurisdiction in which it owns or
     leases property or in which the conduct of its business requires it to so
     qualify or be licensed except where the failure to so qualify or be
     licensed would not be reasonably likely to have a Material Adverse Effect
     and (iii) has all requisite power and authority (including, without
     limitation, all governmental licenses, permits and other approvals) to own
     or lease and operate its properties and to carry on its business as now
     conducted and as proposed to be conducted, except where the failure to have
     any license, permit or other approval would not be reasonably likely to
     have a Material Adverse Effect.  All of the outstanding Equity Interests in
     the Borrower have been validly issued, are fully paid and non-assessable
     and (except for any Preferred Securities issued
<PAGE>

                                      44

     after the date of this Agreement) are owned, directly or indirectly, by the
     Parent free and clear of all Liens.

          (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate
     list of all Subsidiaries of each Loan Party.

          (c) The execution, delivery and performance by each Loan Party of each
     Transaction Document to which it is or is to be a party, and the
     consummation of the Acquisition and the other transactions contemplated by
     the Transaction Documents (to the extent applicable), are within such Loan
     Party's corporate powers, have been duly authorized by all necessary
     corporate action, and do not (i) contravene such Loan Party's
     constitutional documents, (ii) violate any law, rule, regulation
     (including, without limitation, Regulation X of the Board of Governors of
     the Federal Reserve System), order, writ, judgment, injunction, decree,
     determination or award, (iii) conflict with or result in the breach of, or
     constitute a default under, any contract, loan agreement, indenture,
     mortgage, deed of trust, lease or other instrument binding on or affecting
     any Loan Party, any of its Subsidiaries or any of their properties or (iv)
     except for the Liens created under the Loan Documents, result in or require
     the creation or imposition of any Lien upon or with respect to any of the
     properties of any Loan Party or any of its Subsidiaries. No Loan Party or
     any of its Subsidiaries is in violation of any such law, rule, regulation,
     order, writ, judgment, injunction, decree, determination or award or in
     breach of any such contract, loan agreement, indenture, mortgage, deed of
     trust, lease or other instrument, the violation or breach of which could be
     reasonably likely to have a Material Adverse Effect.

          (d) No authorization or approval or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or any other
     third party is required for (i) the due execution, delivery, recordation,
     filing or performance by any Loan Party of any Transaction Document to
     which it is or is to be a party, or for the consummation of the Acquisition
     or the other transactions contemplated by the Transaction Documents, or
     (ii) the exercise by any Agent or any Lender of its rights under the Loan
     Documents, except for the authorizations, approvals, actions, notices and
     filings which have been duly obtained, taken, given or made and are in full
     force and effect.  All applicable waiting periods in connection with the
     Acquisition and the other transactions contemplated by the Transaction
     Documents have expired without any action having been taken by any
     competent authority restraining, preventing or imposing materially adverse
     conditions upon the Acquisition or the rights of the Loan Parties or their
     Subsidiaries freely to transfer or otherwise dispose of, or to create any
     Lien on, any properties now owned or hereafter acquired by any of them.

          (e) This Agreement has been, and each other Transaction Document when
     delivered hereunder will have been, duly executed and delivered by each
     Loan Party party thereto.  This Agreement is, and each other Transaction
     Document when delivered hereunder will be, the legal, valid and binding
     obligation of each Loan Party party thereto, enforceable against such Loan
     Party in accordance with its terms.

          (f) There is no action, suit, investigation, litigation or proceeding
     affecting any Loan Party or any of its Subsidiaries, including any
     Environmental Action, pending or threatened
<PAGE>

                                      45

     before any court, governmental agency or arbitrator that (i) could be
     reasonably likely to have a Material Adverse Effect or (ii) would
     reasonably be expected to affect the legality, validity or enforceability
     of any Transaction Document or the consummation of the Acquisition or the
     other transactions contemplated by the Transaction Documents.

          (g) The Consolidated balance sheets of the Parent and its Subsidiaries
     as at September 30, 1998, and the related Consolidated statements of income
     and cash flows of the Parent and its Subsidiaries for the fiscal year then
     ended, accompanied by an unqualified opinion of PricewaterhouseCoopers LLP,
     independent public accountants, and the Consolidated balance sheets of the
     Parent and its Subsidiaries as at December 31, 1998, and the related
     Consolidated statements of income and cash flows of the Parent and its
     Subsidiaries for the three months then ended, duly certified by the Chief
     Financial Officer of the Parent, copies of which have been furnished to
     each Lender, fairly present, subject, in the case of said balance sheet as
     at December 31, 1998, and said statements of income and cash flows for the
     three months then ended, to year-end audit adjustments, the Consolidated
     financial condition of the Parent and its Subsidiaries as at such dates and
     the Consolidated results of operations of the Parent and its Subsidiaries
     for the periods ended on such dates, all in accordance with generally
     accepted accounting principles applied on a consistent basis (subject, in
     the case of the December 31, 1998 balance sheet and statements, to the
     absence of footnotes), and since December 31, 1998, there has been no
     Material Adverse Change.

          (h) The Consolidated forecasted balance sheet, statements of income
     and statements of cash flows of the Borrower and its Subsidiaries contained
     in the Information Memorandum were prepared in good faith on the basis of
     the assumptions stated therein, which assumptions were fair in light of the
     conditions existing at the time of delivery of such forecasts, and
     represented, at the time of delivery, the Borrower's best estimate of its
     future financial performance.

          (i) Neither the Information Memorandum nor any other written
     information, exhibit or report furnished by or on behalf of any Loan Party
     to any Agent or any Lender in connection with the negotiation and
     syndication of the Loan Documents or pursuant to the terms of the Loan
     Documents contained any untrue statement of a material fact or omitted to
     state a material fact necessary to make the statements made therein not
     misleading as at the date it was dated (or if not dated, so delivered).

          (j) The Borrower is not engaged in the business of extending credit
     for the purpose of purchasing or carrying Margin Stock, and no proceeds of
     any Advance will be used to purchase or carry any Margin Stock or to extend
     credit to others for the purpose of purchasing or carrying any Margin
     Stock.

          (k) Neither any Loan Party nor any of its Subsidiaries is an
     "investment company", or an "affiliated person" of, or "promoter" or
     "principal underwriter" for, an "investment company", as such terms are
     defined in the Investment Company Act of 1940, as amended.  Neither the
     making of any Advances nor the application of the proceeds or repayment
     thereof by the Borrower, nor the consummation of the other transactions
     contemplated by the Transaction
<PAGE>

                                      46

     Documents, will violate any provision of
     such Act or any rule, regulation or order of the Securities and Exchange
     Commission thereunder.

          (l) Neither any Loan Party nor any of its Subsidiaries is a party to
     any indenture, loan or credit agreement or any lease or other agreement or
     instrument or subject to any charter or corporate restriction that is
     reasonably likely to have a Material Adverse Effect.

          (m) Each Loan Party is, individually and together with its
     Subsidiaries, Solvent.

          (n) Except to the extent that any and all events and conditions under
     clauses (i) through (vi) below of this paragraph (n) in the aggregate are
     not reasonably expected to have a Material Adverse Effect: (i)  Schedule B
     (Actuarial Information) to the most recent annual report (Form 5500 Series)
     for each Pension Plan, copies of which have been filed with the Internal
     Revenue Service, is complete and accurate and fairly presents the funding
     status of such Pension  Plan, and since the date of such Schedule B there
     has been no material adverse change in such funding status.

          (ii) Neither any Loan Party nor any ERISA Affiliate has incurred or is
     reasonably expected to incur any Withdrawal Liability to any Multiemployer
     Plan.

          (iii)  Neither any Loan Party nor any ERISA Affiliate has been
     notified by the sponsor of a Multiemployer Plan that such Multiemployer
     Plan is in reorganization or has been terminated, within the meaning of
     Title IV of ERISA, and no such Multiemployer Plan is reasonably expected to
     be in reorganization or to be terminated, within the meaning of Title IV of
     ERISA.

          (iv) With respect to each scheme or arrangement mandated by a
     government other than the United States (a "Foreign Government Scheme or
     Arrangement") and with respect to each employee benefit plan that is not
     subject to United States law maintained or contributed to by any Loan Party
     or with respect to which any Subsidiary of any Loan Party may have
     liability under applicable local law (a "Foreign Plan"):

               (x) Any employer and employee contributions required by law or by
          the terms of any Foreign Government Scheme or Arrangement or any
          Foreign Plan have been made, or, if applicable, accrued, in accordance
          with normal accounting practices.

               (y) The fair market value of the assets of each funded Foreign
          Plan, the liability of each insurer for any Foreign Plan funded
          through insurance or the book reserve established for any Foreign
          Plan, together with any accrued contributions, is sufficient to
          procure or provide for the accrued benefit obligations, as of the date
          hereof, with respect to all current and former participants in such
          Foreign Plan according to the actuarial assumptions and valuations
          most recently used to account for such obligations in accordance with
          applicable generally accepted accounting principles.
<PAGE>

                                      47

               (z) Each Foreign Plan required to be registered has been
          registered and has been maintained in good standing with applicable
          regulatory authorities.

          (v) To the extent the assets of any Loan Party are or are deemed under
     applicable law to be "plan assets" within the meaning of Department of
     Labor Regulation (S) 2510.3-101, the execution, delivery and performance of
     the Loan Documents and the consummation of the transactions contemplated
     therein will not result in a non-exempt prohibited transaction within the
     meaning of Section 406 of ERISA or Section 4975 of the Internal Revenue
     Code.

          (vi) During the twelve-consecutive-month period to the date of the
     execution and delivery of this Agreement and prior to any Borrowing
     hereunder, no steps have been taken to terminate any Pension Plan, no
     contribution failure has occurred with respect to any Pension Plan
     sufficient to give rise to a lien under section 302(f) of ERISA and no
     minimum funding waiver has been applied for or is in effect with respect to
     any Pension Plan.  No condition exists or event or transaction has occurred
     or is reasonably expected to occur with respect to any Pension Plan which
     could result in any Loan Party or any ERISA Affiliate incurring any
     liability, fine or penalty.

          (o) (i)  In the ordinary course of its business, the Parent reviews
     the effect of Environmental Laws on the operations and properties of the
     Parent and its Subsidiaries, in the course of which it identifies and
     evaluates associated liabilities and costs (including, without limitation,
     any capital or operating expenditures required for clean-up or closure of
     properties presently or previously owned, any capital or operating
     expenditures required to achieve or maintain compliance with environmental
     protection standards imposed by law or as a condition of any license,
     permit or contract, any related constraints on operating activities,
     including any periodic or permanent shutdown of any facility or reduction
     in the level of or change in the nature of operations conducted
     thereat, and any actual or potential liabilities to third parties and any
     related costs and expenses).  On the basis of this review, the Parent has
     reasonably concluded that such associated liabilities and costs, including
     the costs of compliance with Environmental Laws, are unlikely to have a
     Material Adverse Effect.

          (ii) The operations and properties of each Loan Party and each of its
     Subsidiaries comply in all material respects with all applicable
     Environmental Laws and Environmental Permits, except for non-compliances
     which would not, individually or in the aggregate, reasonably be expected
     to have a Material Adverse Effect; Hazardous Materials have not been
     released, discharged or disposed of on any property currently or formerly
     owned or operated by any Loan Party or any of its Subsidiaries that would
     reasonably be expected to have a Material Adverse Effect; and there are no
     Environmental Actions pending or threatened against any Loan Party or its
     Subsidiaries, and no circumstances exist that could be reasonably likely to
     form the basis of any such Environmental Action, which (in either case),
     individually or in the aggregate with all other such pending or threatened
     actions and circumstances would reasonably be expected to have a Material
     Adverse Effect.

          (p) Each Loan Party and each of its Subsidiaries has filed, has caused
     to be filed or has been included in all material Federal tax returns and
     all other material tax returns required to
<PAGE>

                                      48

     be filed and has paid all taxes shown thereon to be due, together with
     applicable interest and penalties, except to the extent contested in good
     faith and by appropriate proceedings (in which case adequate reserves have
     been established therefor in accordance with GAAP).

          (q) The Borrower has (i) initiated a review and assessment of all
     areas within its and each of its Subsidiaries' business and operations
     (including those affected by material suppliers, vendors and customers)
     that could be adversely affected by the risk that computer applications
     used by the Borrower or any of its Subsidiaries (or material suppliers,
     vendors and customers other than those affecting customers that may give
     rise to claims under insurance policies issued by the Borrower or a
     Subsidiary) may be unable to recognize and perform properly date-sensitive
     functions involving certain dates prior to and any date after December 31,
     1999 (the "Year 2000 Problem"), (ii) developed a plan and timetable for
     addressing the Year 2000 Problem on a timely basis and (iii) to date,
     implemented that plan substantially in accordance with such timetable.
     Based on the foregoing, the Borrower believes that all computer
     applications of the Borrower and its Subsidiaries that are material to its
     or any of its Subsidiaries' business and operations are reasonably expected
     on a timely basis to be able to perform properly date-sensitive functions
     for all dates before and after January 1, 2000 ("Year 2000 Compliant"),
     except to the extent that a failure to do so could not reasonably be
     expected to have a Material Adverse Effect.

                                   ARTICLE V

                   COVENANTS OF THE PARENT AND THE BORROWER

          SECTION 5.01.  Affirmative Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, each of the Parent and the
Borrower will:

          (a) Compliance with Laws, Etc.  Comply, and cause each of its
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules, regulations and orders, such compliance to include, without
     limitation, compliance with Environmental Laws, Environmental Permits,
     ERISA and the Racketeer Influenced and Corrupt Organizations Chapter of the
     Organized Crime Control Act of 1970.

          (b) Payment of Taxes, Etc.  Pay and discharge, and cause each of its
     Subsidiaries to pay and discharge, before the same shall become delinquent,
     (i) all material taxes, assessments and governmental charges or levies
     imposed upon it or upon its property and (ii) all lawful material claims
     that, if unpaid, might by law become a Lien upon its property; provided,
     however, that neither the Borrower nor any of its Subsidiaries shall be
     required to pay or discharge any such tax, assessment, charge or claim that
     is being contested in good faith and by proper proceedings and as to which
     appropriate reserves are being maintained.

          (c) Maintenance of Insurance.  Maintain, and cause each of its
     Subsidiaries to maintain, insurance with responsible and reputable
     insurance companies or associations in such amounts and covering such risks
     as is usually carried by companies engaged in similar
<PAGE>

                                      49

     businesses and owning similar properties in the same general areas in which
     the Parent or such Subsidiary operates (it being understood that the
     foregoing shall not apply to maintenance of reinsurance or similar matters
     which shall be solely within the reasonable business judgment of the Parent
     and its Subsidiaries).

          (d) Preservation of Corporate Existence, Etc.  Preserve and maintain,
     and cause each of its Subsidiaries to preserve and maintain, its existence,
     legal structure, legal name, rights (charter and statutory), permits,
     licenses, approvals, privileges and franchises; provided, however, that the
     Parent and its Subsidiaries may consummate any merger or consolidation
     permitted under Section 5.02(d); and provided further that neither the
     Parent nor any of its Subsidiaries shall be required to preserve any right,
     permit, license, approval, privilege or franchise if the Board of Directors
     of the Parent or such Subsidiary shall determine that the preservation
     thereof is no longer desirable in the conduct of the business of the Parent
     or such Subsidiary, as the case may be, and that the loss thereof is not
     disadvantageous in any material respect to the Parent, such Subsidiary or
     the Lenders.

          (e) Visitation Rights.  At any reasonable time and from time to time
     upon prior notice, permit the Agents (upon request made by any Agent or any
     Lender), or any agents or representatives thereof, at the expense (so long
     as no Default has occurred and is continuing) of such Agents (or such
     Lender, as the case may be), to examine and make copies of and abstracts
     from the records and books of account of, and visit the properties of, the
     Parent and any of its Subsidiaries, and to discuss the affairs, finances
     and accounts of the Parent and any of its Subsidiaries with any of their
     officers or directors and with their, so long as a representative of Parent
     is present, independent certified public accountants.

          (f) Keeping of Books.  Keep, and cause each of its Subsidiaries to
     keep, proper books of record and account, in which full and correct entries
     shall be made of all financial transactions and the assets and business of
     the Parent and each such Subsidiary sufficient to permit the preparation of
     financial statements in accordance with GAAP.

          (g) Maintenance of Properties, Etc.  Maintain and preserve, and cause
     each of its Subsidiaries to maintain and preserve, all of its properties
     that are used or useful in the conduct of its business in good working
     order and condition, ordinary wear and tear excepted.

          (h) Transactions with Affiliates.  Conduct, and cause each of its
     Subsidiaries to conduct, all transactions otherwise permitted under the
     Loan Documents with any of their Affiliates (other than any such
     transactions between Loan Parties) on terms that are fair and reasonable
     and no less favorable than it would obtain in a comparable arm's-length
     transaction with a Person not an Affiliate.

          (i) Pari Passu ranking.  The Borrower shall procure that its
     obligations under the Loan Documents will rank at least pari passu with all
     its other present and future unsecured and unsubordinated obligations,
     except for obligations which are mandatorily preferred by law applying to
     companies generally.
<PAGE>

                                      50

          SECTION 5.02.  Negative Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid,
or any Lender shall have any Commitment hereunder, neither the Parent nor the
Borrower will, at any time:

          (a) Liens, Etc.  Create, incur, assume or suffer to exist, or permit
     any of its Subsidiaries to create, incur, assume or suffer to exist, any
     Lien on or with respect to any of its properties of any character
     (including, without limitation, accounts) whether now owned or hereafter
     acquired, or assign, or permit any of its Subsidiaries to assign, any
     accounts or other right to receive income, except:

               (i) Liens created under the Loan Documents or in respect of the
          Parent Five-Year Revolving Credit Facility or the Parent 364-Day
          Revolving Credit Facility;

               (ii) Permitted Liens;

               (iii) Liens described on Schedule 5.02(a) hereto and other
          Liens arising in the ordinary course of business of CIGNAP&C;

               (iv) purchase money Liens upon or in real property or equipment
          acquired or held by the Parent or any of its Subsidiaries in the
          ordinary course of business to secure the purchase price of such
          property or equipment or to secure Debt incurred solely for the
          purpose of financing the acquisition, construction or improvement of
          any such property or equipment to be subject to such Liens, or Liens
          existing on any such property or equipment at the time of acquisition
          or within 180 days following such acquisition (other than any such
          Liens created in contemplation of such acquisition that do not secure
          the purchase price), or extensions, renewals or replacements of any of
          the foregoing for the same or a lesser amount; provided, however, that
          no such Lien shall extend to or cover any property other than the
          property or equipment being acquired, constructed or improved, and no
          such extension, renewal or replacement shall extend to or cover any
          property not theretofore subject to the Lien being extended, renewed
          or replaced; and provided further that the aggregate principal amount
          of the Debt secured by Liens permitted by this clause (iv) shall not
          exceed the amount permitted under Section 5.02(b)(ii) at any time
          outstanding;

               (v) Liens arising in connection with Capitalized Leases permitted
          under Section 5.02(b)(iii); provided that no such Lien shall extend to
          or cover any assets other than the assets subject to such Capitalized
          Leases;

               (vi) (A) any Lien existing on any asset of any Person at the time
          such Person becomes a Subsidiary and not created in contemplation of
          such event, (B) any Lien on any asset of any Person existing at the
          time such Person is merged or consolidated with or into the Parent or
          any of it Subsidiaries in accordance with Section 5.02(d) and not
          created in contemplation of such event and (C) any Lien existing on
          any asset prior to the acquisition thereof by the Parent or any of its
          Subsidiaries and not created in contemplation of such acquisition;
<PAGE>

                                      51

               (vii)  Liens securing obligations under credit default swap
          transactions determined by reference to, or Contingent Obligations in
          respect of,  Debt issued by the Parent or one of its Subsidiaries;
          such Debt not to exceed an aggregate principal amount of $550,000,000;

               (viii)  Liens arising in the ordinary course of its business
          which (A) do not secure Debt and (B) do not in the aggregate
          materially detract from the value of its assets or materially impair
          the use thereof in the operation of its business;

               (ix) Liens on cash and Approved Investments securing Hedge
          Agreements arising in the ordinary course of business;

               (x) other Liens securing Debt or other obligations outstanding in
          an aggregate principal or face amount not to exceed at any time 10% of
          Consolidated Tangible Net Worth;

               (xi) Liens consisting of deposits made by the Parent or any
          insurance Subsidiary with any insurance regulatory authority or other
          statutory Liens or Liens or claims imposed or required by applicable
          insurance law or regulation against the assets of the Parent or any
          insurance Subsidiary, in each case in favor of policyholders of the
          Parent or such insurance Subsidiary or an insurance regulatory
          authority and in the ordinary course of the Parent's or such insurance
          Subsidiary's business;

               (xii) Liens on Investments and cash balances of the Parent or any
          insurance Subsidiary (other than capital stock of any Subsidiary)
          securing obligations of the Parent or any insurance Subsidiary in
          respect of (i) letters of credit obtained in the ordinary course of
          business and/or (ii) trust arrangements formed in the ordinary course
          of business for the benefit of cedents to secure reinsurance
          recoverables owed to them by the Parent or any insurance Subsidiary;

               (xiii) the replacement, extension or renewal of any Lien
          permitted by clause (iii) or (vi) above upon or in the same property
          theretofore subject thereto or the replacement, extension or renewal
          (without increase in the amount (other than in respect of fees,
          expenses and premiums, if any) or change in any direct or contingent
          obligor) of the Debt secured thereby;

               (xiv)  Liens securing obligations owed by any Loan Party to any
          other Loan Party or owed by any Subsidiary of the Parent (other than a
          Loan Party) to the Parent or any other Subsidiary;

               (xv) Liens incurred in the ordinary course of business in favor
          of financial intermediaries and clearing agents pending clearance of
          payments for investment or in the nature of set-off, banker's lien or
          similar rights as to deposit accounts or other funds; and
<PAGE>

                                      52

               (xvi)  judgment or judicial attachment Liens, provided that the
          enforcement of such Liens is effectively stayed.

          (b) Debt.  Until such time as the Commitments hereunder are reduced to
     $1,400,000,000, permit the Borrower or any of its Subsidiaries to create,
     incur, assume or suffer to exist, any Debt, except:

               (i) Debt under the Loan Documents, Debt under the Parent Five-
          Year Revolving Credit Facility and Debt under the Parent 364-Day
          Revolving Credit Facility;

               (ii) Debt secured by Liens permitted by Section 5.02(a)(iv) not
          to exceed in the aggregate $ 200,000,000 at any time outstanding,

               (iii)  Capitalized Leases not to exceed in the aggregate
          $100,000,000 at any time outstanding,

               (iv) the Surviving Debt described on Schedule 5.02 (b) hereto,
          and any Debt extending the maturity of, or refunding or refinancing,
          in whole or in part, any Surviving Debt, provided that the terms of
          any such extending, refunding or refinancing Debt, and of any
          agreement entered into and of any instrument issued in connection
          therewith, are otherwise permitted by the Loan Documents, provided
          further that the principal amount of such Surviving Debt shall not be
          increased above the principal amount thereof outstanding immediately
          prior to such extension, refunding or refinancing, and the direct and
          contingent obligors therefor shall not be changed, as a result of or
          in connection with such extension, refunding or refinancing, provided
          still further that the terms relating to principal amount,
          amortization, maturity, collateral (if any) and subordination (if
          any), and other material terms taken as a whole, of any such
          extending, refunding or refinancing Debt, and of any agreement entered
          into and of any instrument issued in connection therewith, are no less
          favorable in any material respect to the Loan Parties or the Lenders
          than the terms of any agreement or instrument governing the Surviving
          Debt being extended, refunded or refinanced and the interest rate
          applicable to any such extending, refunding or refinancing Debt does
          not exceed the then applicable market interest rate,

               (v) unsecured Debt in respect of acceptance, letter of credit or
          similar facilities issued in the ordinary of credit in an aggregate
          amount not to exceed $250,000,000 at any time outstanding,

               (vi) unsecured Debt in the ordinary course of business for
          borrowed money, maturing within one year from the date incurred,
          evidenced by commercial paper,

               (vii) other Debt in an aggregate principal amount not to
          exceed $500,000,000 at any time outstanding,
<PAGE>

                                      53

               (viii) Debt in respect of the exercise of overdraft privileges
          on a basis not more frequent than once each calendar month for not
          more than five Business Days in an aggregate amount not to exceed
          $50,000,000 at any time outstanding,

               (ix) Debt the Net Cash Proceeds of which are used solely to
          prepay Debt under this Agreement or to prepay commercial paper; and

               (x) in the case of any Subsidiary of the Parent, Debt owed to the
          Parent or to a wholly owned Subsidiary of the Parent, provided that,
          if the obligor under such Debt is a Loan Party, then such Debt shall
          be subordinated in right of payment to the obligations of such Loan
          Party under the Loan Documents upon terms acceptable to the
          Administrative Agent.

          (c) Change in Nature of Business.  Make any material change in the
     nature of the business of the Parent and its Subsidiaries, taken as a
     whole, as carried on at the date hereof (and giving effect to the
     Acquisition).

          (d) Mergers, Etc.  Merge into or consolidate with any Person or permit
     any Person to merge into it, or permit any of its Subsidiaries to do so,
     except that:

               (i) any Subsidiary of the Parent may merge into or consolidate
          with any other Subsidiary of the Parent, provided that, in the case of
          any such merger or consolidation, the Person formed by such merger or
          consolidation shall be a wholly owned Subsidiary of the Parent,
          provided further that, in the case of any such merger or consolidation
          to which (x) the Borrower is a party, the Person formed by such merger
          or consolidation shall be the Borrower or (y) a Subsidiary Guarantor
          is a party, the Person formed by such merger or consolidation shall be
          the Borrower or a Subsidiary Guarantor;

               (ii) any Subsidiary of the Borrower may merge into or
          consolidate with any other Person or permit any other Person to merge
          into or consolidate with it; provided that the Person surviving  such
          merger shall be a wholly owned Subsidiary of the Borrower;

               (iii) in connection with any sale or other disposition permitted
          under Section 5.02(e) (other than clause (ii) thereof), any Subsidiary
          of the Parent may merge into or consolidate with any other Person or
          permit any other Person to merge into or consolidate with it; and

               (iv) the Parent or the Borrower may merge into or consolidate
          with any other Person ; provided that, in the case of any such merger
          or consolidation, the Person formed by such merger or consolidation
          shall be the Parent or the Borrower, as the case may be;
<PAGE>

                                      54

     provided, however, that in each case, immediately after giving effect
     thereto, no event shall occur and be continuing that constitutes a Default.

          (e) Sales, Etc., of Assets.  Sell, lease, transfer or otherwise
     dispose of, or permit any of its Subsidiaries to sell, lease, transfer or
     otherwise dispose of, any assets, or grant any option or other right to
     purchase, lease or otherwise acquire any assets, except:

               (i) sales of inventory in the ordinary course of its business;

               (ii) in a transaction authorized by Section 5.02(d);

               (iii) sales of Approved Investments in the ordinary course of
          business on a basis consistent with past practices;

               (iv) sales of assets for fair value; provided that, the Borrower
          shall, on the date of receipt by any Loan Party or any of its
          Subsidiaries of the Net Cash Proceeds from such sale, prepay the
          Committed Advances pursuant to, and in the amount and order of
          priority set forth in, Section 2.05(b)(ii), as specified therein;

               (v) sales, leases, transfers or other dispositions of any assets
          by the Parent or a Subsidiary to the Parent or another Subsidiary; and

               (vi) so long as no Default shall occur and be continuing, the
          grant of any option or other right to purchase any asset in a
          transaction that would be permitted under the provisions of clauses
          (i) through (iv) above;

          (f) Restricted Payments.  In the case of the Parent, declare or pay
     any dividends, purchase, redeem, retire, defease or otherwise acquire for
     value any of its Equity Interests now or hereafter outstanding, return any
     capital to its stockholders, partners or members (or the equivalent Persons
     thereof) as such, make any distribution of assets, Equity Interests,
     obligations or securities to its stockholders, partners or members
     (or the equivalent Persons thereof) as such or issue or sell any Equity
     Interests or accept any capital contributions, or permit any of its
     Subsidiaries to do any of the foregoing, or permit any of its Subsidiaries
     to purchase, redeem, retire, defease or otherwise acquire for value any
     Equity Interests in the Parent or to issue or sell any Equity Interests
     therein, except that, so long as no Default shall have occurred and be
     continuing at the time of any action described in clause (i) or (ii) below
     or would result therefrom:

               (i) the Parent may (A) declare and pay dividends and
          distributions payable only in common stock of the Parent, (B) issue
          and sell shares of its capital stock so long as the Net Cash Proceeds
          thereof shall be applied in the manner set forth in Section 2.06(b)(i)
          of the Parent 364-Day Revolving Credit Facility, (C) purchase, redeem,
          retire, defease or otherwise acquire for value any of its Equity
          Interests in an aggregate amount during the term of this Agreement not
          exceeding $300,000,000 and (D) declare and pay cash dividends to its
          stockholders,
<PAGE>

                                      55

               (ii) (A) any Loan Party (other than the Parent) may declare and
          pay cash dividends to another Loan Party and (B) any Subsidiary of the
          Parent (other than any Loan Party) may (x) declare and pay cash
          dividends to the Parent or any other wholly owned Subsidiary of the
          Parent of which it is a Subsidiary and (y) accept capital
          contributions from its parent, and

               (iii) the Special Purpose Trust may issue Preferred Securities
     and pay dividends thereon with the proceeds of payments of interest on the
     Debentures.

          (g) Accounting Changes.  Make or permit, or permit any of its
     Subsidiaries to make or permit, any change in accounting policies or
     reporting practices, except as permitted by GAAP.

          (h) Prepayments, Etc., of Debt.  Until such time as the Commitments
     hereunder are reduced to $1,400,000,000, permit the Borrower or any of its
     Subsidiaries to prepay, redeem, purchase, defease or otherwise satisfy
     prior to the scheduled maturity thereof in any manner, or make any payment
     in violation of any subordination terms of, any Debt, except (i) the
     prepayment of the Advances in accordance with the terms of this Agreement,
     (ii) the prepayment of Debt under the Parent Five-Year Revolving Credit
     Facility and under the Parent 364-Day Revolving Credit Facility and (iii)
     regularly scheduled or required repayments or redemptions of Surviving
     Debt, or amend, modify or change in any manner any term or condition of any
     Surviving Debt, or permit any of its Subsidiaries to do any of the
     foregoing other than to prepay any Debt payable to any Loan Party.

          (i) Amendment, Etc., of Purchase Agreement.  (i) Cancel or terminate
     the Purchase Agreement or consent to or accept any cancellation or
     termination thereof or (ii) amend, modify or change in any manner any term
     or condition of the Purchase Agreement or give any consent, waiver or
     approval thereunder, waive any default under or any breach of any term or
     condition of the Purchase Agreement, agree in any manner to any other
     amendment, modification or change of any term or condition of the Purchase
     Agreement or take any other action in connection with the Purchase
     Agreement that, in any case described in this clause (ii), would reasonably
     be expected to have a Material Adverse Effect, or permit any of its
     Subsidiaries to do any of the foregoing.

          SECTION 5.03.  Reporting Requirements.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, the Parent will furnish to
the Agents and the Lenders:

          (a) Default Notice.  As soon as possible and in any event within two
     days after the occurrence of each Default or any event, development or
     occurrence reasonably likely to have a Material Adverse Effect continuing
     on the date of such statement, a statement of the chief financial officer
     of the Parent setting forth details of such Default, event, development or
     occurrence and the action that the Parent or the applicable Subsidiary has
     taken and proposes to take with respect thereto.
<PAGE>

                                      56

          (b) Annual Financials.  (i)  As soon as available and in any event
     within 90 days after the end of each Fiscal Year, a copy of the annual
     Consolidated audit report for such year for the Parent and its
     Subsidiaries, including therein a Consolidated balance sheet of the Parent
     and its Subsidiaries as of the end of such Fiscal Year and Consolidated
     statements of income and cash flows of the Parent and its Subsidiaries for
     such Fiscal Year, all reported on in a manner reasonably acceptable to the
     Securities and Exchange Commission in each case and accompanied by an
     opinion of PricewaterhouseCoopers LLP or other independent public
     accountants of recognized standing reasonably acceptable to the Required
     Lenders, together with (i) a certificate of the Chief Financial Officer of
     the Parent stating that no Default has occurred and is continuing, or if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Parent has taken a proposes to take with
     respect thereto, and (ii) a schedule in form reasonably satisfactory to the
     Administrative Agent of the computations used by the Parent in determining,
     as of the end of such Fiscal Year, compliance with the covenants contained
     in Section 5.04.

          (ii) As soon as available and in any event within 120 days after the
     end of each Fiscal Year, a copy of the annual Consolidated audit report for
     such year for each Subsidiary Guarantor and its Subsidiaries, including
     therein a Consolidated balance sheet of such Subsidiary Guarantor and its
     Subsidiaries as of the end of such Fiscal Year and a Consolidated statement
     of income and a Consolidated statement of cash flows of such Subsidiary
     Guarantor and its Subsidiaries for such Fiscal Year, in each case
     accompanied by an opinion acceptable to the Required Lenders of
     PricewaterhouseCoopers LLP or other independent public accountants of
     recognized standing acceptable to the Required Lenders.

          (c) Quarterly Financials.  As soon as available and in any event
     within 45 days after the end of each of the first three quarters of each
     Fiscal Year, Consolidated balance sheets of the Parent and its Subsidiaries
     as of the end of such quarter and Consolidated statements of income and a
     Consolidated statement of cash flows of the Parent and its Subsidiaries for
     the period commencing at the end of the previous fiscal quarter and ending
     with the end of such fiscal quarter and Consolidated statements of income
     and a Consolidated statement of cash flows of the Parent and its
     Subsidiaries for the period commencing at the end of the previous Fiscal
     Year and ending with the end of such quarter, setting forth in each case in
     comparative form the corresponding figures for the corresponding date or
     period of the preceding Fiscal Year, all in reasonable detail and duly
     certified (subject to the absence of footnotes and normal year-end audit
     adjustments) by the Chief Financial Officer of the Parent as having been
     prepared in accordance with GAAP, together with (i) a certificate of said
     officer stating that no Default has occurred and is continuing or, if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Parent has taken and proposes to take with
     respect thereto and (ii) a schedule in form reasonably satisfactory to the
     Administrative Agent of the computations used by the Parent in determining
     compliance with the covenants contained in Section 5.04.

          (d) Litigation.  Promptly after the commencement thereof, notice of
     all actions, suits, investigations, litigation and proceedings before any
     court or governmental department,
<PAGE>

                                      57

     commission, board, bureau, agency or instrumentality, domestic or foreign,
     affecting any Loan Party or any of its Subsidiaries of the type described
     in Section 4.01(f).

          (e) Securities Reports.  Promptly after the sending or filing thereof,
     copies of all proxy statements, financial statements and reports that the
     Parent sends to its stockholders generally, and copies of all regular,
     periodic and special reports, and all registration statements, that any
     Loan Party or any of its Subsidiaries files with the Securities and
     Exchange Commission or any governmental authority that may be substituted
     therefor, or with any national securities exchange.

          (f) ERISA  (i)  ERISA Events.  Promptly and in any event within 10
     days after any Loan Party or any ERISA Affiliate institutes any steps to
     terminate any Pension Plan or becomes aware of the institution of any steps
     or any threat by the PBGC to terminate any Pension Plan, or the failure to
     make a required contribution to any Pension Plan if such failure is
     sufficient to give rise to a lien under section 302(f) of ERISA, or the
     taking of any action with respect to a Pension Plan which could result in
     the requirement that any Loan Party or any ERISA Affiliate furnish a bond
     or other security to the PBGC or such Pension Plan, or the occurrence of
     any event with respect to any Pension Plan which could result in any Loan
     Party or any ERISA Affiliate incurring any material liability, fine or
     penalty, or any material increase in the contingent liability of any Loan
     Party or any ERISA Affiliate with respect to any post-retirement Welfare
     Plan benefit, notice thereof and copies of all documentation relating
     thereto.

          (ii) Plan Annual Reports.  Promptly upon request of any Agent or any
     Lender, copies of each Schedule B (Actuarial Information) to the annual
     report (Form 5500 Series) with respect to each Pension Plan.

          (iii) Multiemployer Plan Notices.  Promptly and in any event within
     15 Business Days after receipt thereof by any Loan Party or any ERISA
     Affiliate from the sponsor of a Multiemployer Plan, copies of each notice
     concerning (A) the imposition of Withdrawal Liability by any such
     Multiemployer Plan, (B) the reorganization or termination, within the
     meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the
     amount of liability incurred, or that may be incurred, by such Loan Party
     or any ERISA Affiliate in connection with any event described in clause (A)
     or (B); provided, however, that such notice and documentation shall not be
     required to be provided (except at the specific request of any Agent or
     Lender, in which case such notice and documentation shall be promptly
     provided following such request) if such condition or event is not
     reasonably expected to result in any Loan Party or any ERISA Affiliate
     incurring any material liability, fine, or penalty.

          (g) Year 2000 Compliance.  Promptly after the Parent's discovery or
     determination thereof, notice (in reasonable detail) that any computer
     application that is material to its or any of its Subsidiaries' business
     and operations will not be Year 2000 Compliant (as defined in Section
     4.01(q)), except to the extent that such failure could not reasonably be
     expected to have a Material Adverse Effect.
<PAGE>

                                      58

          (h) Statutory Statements.  As soon as available and in any event
     within 20 days after submission, each statutory statement of the Loan
     Parties (or any of them) in the form submitted to The Insurance Division of
     the Office of Registrar of Companies of Bermuda.

          (i) Regulatory Notices, Etc.  Promptly after any Responsible Officer
     of the Parent obtains knowledge thereof, (i) a copy of any notice from the
     Bermuda Minister of Finance or the Registrar of Companies or any other
     person of the revocation, the suspension or the placing of any restriction
     or condition on the registration as an insurer of any Subsidiary Guarantor
     under the Bermuda Insurance Act 1978 (and related regulations) or of the
     institution of any proceeding or investigation which could result in any
     such revocation, suspension or placing of such a restriction or condition,
     (ii) copies of any correspondence by, to or concerning any Loan Party
     relating to an investigation conducted by the Bermuda Minister of Finance,
     whether pursuant to Section 132 of the Bermuda Companies Act 1981 (and
     related regulations) or otherwise and (iii) a copy of any notice of or
     requesting or otherwise relating to the winding-up or any similar
     proceeding of or with respect to any Loan Party.

          (j) Other Information.  Such other information respecting the
     business, condition (financial or otherwise), operations, performance,
     properties or prospects of any Loan Party or any of its Subsidiaries as any
     Agent, or any Lender through the Administrative Agent, may from time to
     time reasonably request.

          SECTION 5.04.  Financial Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, the Parent will:

          (a) Adjusted Consolidated Debt to Total Capitalization Ratio.
     Maintain at all times a ratio of Adjusted Consolidated Debt to Total
     Capitalization of not more than the lesser of (a) 0.50 to 1 or (b) the
     Specified Ratio.  For purposes of the foregoing, the Specified Ratio shall
     be the greater of 0.35 to 1 or the ratio determined by multiplying 1.25
     times the numerator of the lowest ratio of Adjusted Consolidated Debt to
     Total Capitalization as of the last day of any fiscal quarter of the Parent
     after completion of the Acquisition.

          (b) Tangible Net Worth.  Maintain at all times Consolidated Tangible
     Net Worth in an amount equal to the sum of (i) $1,000,000,000 plus (ii) 25%
     of Consolidated Net Income for each fiscal quarter of the Parent ending on
     and after June 30, 1999 for which such Consolidated Net Income is positive
     plus (iii) 75% (or, after the Equity Issuance (so long as the Net Cash
     Proceeds received by the Parent and its Subsidiaries are at least
     $500,000,000), 50%) of the aggregate amount by which Consolidated Tangible
     Net Worth shall have been increased by reason of the issuance and sale of
     any Equity Interests or Mandatorily Convertible Preferred Securities or,
     without duplication, the conversion or exchange of any Debt of the Parent
     into or with Equity Interests of the Parent.
<PAGE>

                                      59

                                  ARTICLE VI

                               EVENTS OF DEFAULT

           SECTION 6.01. Events of Default. If any of the following events
("Events of Default") shall occur and be continuing:

          (a) (i) the Borrower shall fail to pay any principal of any Advance
     when the same shall become due and payable or (ii) the Borrower shall fail
     to pay any interest on any Advance, or any Loan Party shall fail to make
     any other payment under any Loan Document, in each case under this clause
     (ii) within five Business Days after the same becomes due and payable; or

          (b) any representation or warranty made by any Loan Party (or any of
     its officers) under or in connection with any Loan Document shall prove to
     have been incorrect in any material respect when made; or

          (c) the Borrower shall fail to perform or observe any term, covenant
     or agreement contained in Section 2.14, 5.01(d) (with respect to the Parent
     or the Borrower) or (e), 5.02 or 5.04; or

          (d) any Loan Party shall fail to perform or observe any other term,
     covenant or agreement contained in any Loan Document on its part to be
     performed or observed if such failure shall remain unremedied for 30 days
     after the earlier of the date on which (i) a Responsible Officer becomes
     aware of such failure or (ii) written notice thereof shall have been given
     to the Borrower by any Agent or any Lender; or

          (e) the Parent or any of its Subsidiaries shall fail to pay any
     Material Financial Obligation (but excluding Debt outstanding hereunder) of
     the Parent or such Subsidiary (as the case may be), when the same becomes
     due and payable (whether by scheduled maturity, required prepayment,
     acceleration, demand or otherwise), and such failure shall continue after
     the applicable grace period, if any, specified in the agreement or
     instrument relating to such Material Financial Obligation; or any other
     event shall occur or condition shall exist under any agreement or
     instrument relating to any Material Financial Obligation and shall continue
     after the applicable grace period, if any, specified in such agreement or
     instrument, if the effect of such event or condition is to accelerate, or
     to permit the acceleration of, the maturity of such Material Financial
     Obligation or otherwise to cause, or to permit the holder thereof to cause,
     such Material Financial Obligation to mature; or any Material Financial
     Obligation shall be declared to be due and payable or required to be
     prepaid or redeemed (other than by a regularly scheduled required
     prepayment or redemption), purchased or defeased, or an offer to prepay,
     redeem, purchase or defease such Material Financial Obligation shall be
     required to be made, in each case prior to the stated maturity thereof; or

          (f) any Loan Party or any of its Subsidiaries shall generally not pay
     its debts as such debts become due, or shall admit in writing its inability
     to pay its debts generally, or shall make a general assignment for the
     benefit of creditors; or any proceeding shall be instituted by or against
<PAGE>

                                      60

     any Loan Party or any of its Subsidiaries seeking to adjudicate it a
     bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
     arrangement, adjustment, protection, relief, or composition of it or its
     debts under any law relating to bankruptcy, insolvency or reorganization or
     relief of debtors, or seeking the entry of an order for relief or the
     appointment of a receiver, trustee, or other similar official for it or for
     any substantial part of its property and, in the case of any such
     proceeding instituted against it (but not instituted by it) that is being
     diligently contested by it in good faith, either such proceeding shall
     remain undismissed or unstayed for a period of 60 days or any of the
     actions sought in such proceeding (including, without limitation, the entry
     of an order for relief against, or the appointment of a receiver, trustee,
     custodian or other similar official for, it or any substantial part of its
     property) shall occur; or any Loan Party or any of its Subsidiaries shall
     take any corporate action to authorize any of the actions set forth above
     in this subsection (f); or

          (g) any judgment or order for the payment of money in excess of
     $100,000,000 shall be rendered against any Loan Party or any of its
     Subsidiaries and either (i) enforcement proceedings shall have been
     commenced by any creditor upon such judgment or order or (ii) there shall
     be any period of 30 consecutive days during which a stay of enforcement of
     such judgment or order, by reason of a pending appeal or otherwise, shall
     not be in effect; or

          (h) any non-monetary judgment or order shall be rendered against any
     Loan Party or any of its Subsidiaries that could be reasonably likely to
     have a Material Adverse Effect, and there shall be any period of 30
     consecutive days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise, shall not be in effect;
     or

          (i) any provision of any Loan Document after delivery thereof pursuant
     to Section 3.01 shall for any reason cease to be valid and binding on or
     enforceable against any Loan Party party to it (other than as a result of a
     transaction permitted hereunder), or any such Loan Party shall so state in
     writing; or

          (j) a Change of Control shall occur; or

          (k) Any Loan Party or any ERISA Affiliate shall incur or shall be
     reasonably expected to incur liability in excess of $25,000,000 in the
     aggregate with respect to any Pension Plan or any Multiemployer Plan in
     connection with the occurrence of any of the following events or existence
     of any of the following conditions:

               (i) Institution of any steps by any Loan Party, any ERISA
          Affiliate or any other Person, including, without limitation, the PBGC
          to terminate a Pension Plan if as a result of such termination a Loan
          Party or any ERISA Affiliate could be required to make a contribution
          to such Pension Plan, or could incur a liability or obligation;

               (ii) A contribution failure occurs with respect to any Pension
          Plan sufficient to give rise to a lien under section 302(f) of ERISA;
          or
<PAGE>

                                      61

               (iii) Any condition shall exist or event shall occur with
          respect to a Pension Plan that is reasonably expected to result in any
          Loan Party or any ERISA Affiliate being required to furnish a bond or
          security to the PBGC or such Pension Plan, or incurring a liability or
          obligation.

               (iv) any Loan Party or any ERISA Affiliate shall have been
          notified by the sponsor of a Multiemployer Plan that it has incurred
          Withdrawal Liability to such Multiemployer Plan; or

               (v) any Loan Party or any ERISA Affiliate shall have been
          notified by the sponsor of a Multiemployer Plan that such
          Multiemployer Plan is in reorganization or is being terminated, within
          the meaning of Title IV of ERISA, and as a result of such
          reorganization or termination the aggregate annual contributions of
          the Loan Parties and the ERISA Affiliates to all Multiemployer Plans
          that are then in reorganization or being terminated have been or will
          be increased over the amounts contributed to such Multiemployer Plans
          for the plan years of such Multiemployer Plans immediately preceding
          the plan year in which such reorganization or termination occurs;

then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Required Lenders, by notice to the Borrower,
declare the Commitment of each Lender and the obligation of each Lender to make
Advances to be terminated, whereupon the same shall forthwith terminate, and/or
(ii) shall at the request, or may with the consent, of the Required Lenders, by
notice to the Borrower, declare the Notes, all interest thereon and all other
amounts payable under this Agreement and the other Loan Documents to be
forthwith due and payable, whereupon the Notes, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower; provided, however, that in the event of an actual or
deemed entry of an order for relief with respect to the Borrower under the
Federal Bankruptcy Code, (x) the Commitments of each Lender and the obligation
of each Lender to make Advances shall automatically be terminated and (y) the
Notes, all such interest and all such amounts shall automatically become and be
due and payable, without presentment, demand, protest or any notice of any kind,
all of which are hereby expressly waived by the Borrower.

                                  ARTICLE VII

                                   GUARANTY

          SECTION 7.01.  The Guaranty.  (a)  Each Guarantor jointly and
severally, hereby unconditionally, absolutely and irrevocably guarantees the
full and punctual payment (whether at stated maturity, upon acceleration or
otherwise) of all amounts payable by the Borrower under the Loan Documents
including, without limitation, the principal of and interest on each Note issued
by the Borrower pursuant to this Agreement.  Upon failure by the Borrower to pay
punctually any such amount, each Guarantor agrees to pay forthwith on demand the
amount not so paid at the place and in the manner specified in this Agreement.
<PAGE>

                                      62

          (b) Each Guarantor (other than the Parent), and by its acceptance of
this Guaranty, the Administrative Agent and each other Lender, hereby confirms
that it is the intention of all such Persons that this Guaranty and the
obligations of each Guarantor hereunder not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or
state law to the extent applicable to this Guaranty and the obligations of each
Guarantor (other than the Parent) hereunder.  To effectuate the foregoing
intention, the Administrative Agent, the other Lenders and the Guarantors hereby
irrevocably agree that the obligations of each Subsidiary Guarantor under this
Article VII at any time shall be limited to the maximum amount as will result in
the obligations of such Subsidiary Guarantor under this Guaranty not
constituting a fraudulent transfer or conveyance.

          SECTION 7.02.  Guaranty Unconditional.  The obligations of each
Guarantor hereunder shall be unconditional, absolute and irrevocable and,
without limiting the generality of the foregoing, shall not be released,
discharged or otherwise affected by:

          (i) any extension, renewal, settlement, compromise, waiver or release
     in respect of any obligation of any other obligor under any of the Loan
     Documents, by operation of law or otherwise;

          (ii) any modification or amendment of or supplement to any of the Loan
     Documents;

          (iii) any release, non-perfection or invalidity of any direct or
     indirect security for any obligation of any other obligor under any of the
     Loan Documents;

          (iv) any change in the corporate existence, structure or ownership of
     any obligor, or any insolvency, bankruptcy, reorganization or other similar
     proceeding affecting any other obligor or its assets or any resulting
     release or discharge of any obligation of any other obligor contained in
     any of the Loan Documents;

          (v) the existence of any claim, set-off or other rights which any
     obligor may have at any time against any other obligor, the Administrative
     Agent, any Lender or any other corporation or person, whether in connection
     with any of the Loan Documents or any unrelated transactions, provided that
     nothing herein shall prevent the assertion of any such claim by separate
     suit or compulsory counterclaim;

          (vi) any invalidity or unenforceability relating to or against any
     other obligor for any reason of any of the Loan Documents, or any provision
     of applicable law or regulation purporting to prohibit the payment by any
     other obligor of the principal of or interest on any Note or any other
     amount payable under any of the Loan Documents; or

          (vii) any other act or omission to act or delay of any kind by any
     obligor, the Administrative Agent, any Lender or any other corporation or
     person or any other circumstance whatsoever which might, but for the
     provisions of this paragraph, constitute a legal or equitable discharge of
     or defense to a Guarantor's obligations hereunder.
<PAGE>

                                      63

          SECTION 7.03.  Discharge Only Upon Payment In Full; Reinstatement In
Certain Circumstances.  Each Guarantor's obligations hereunder shall remain in
full force and effect until the Commitments shall have terminated and the
principal of and interest on the Notes and all other amounts payable by the
Borrower under the Loan Documents shall have been paid in full. If at any time
any payment of the principal of or interest on any Note or any other amount
payable by the Borrower under the Loan Documents is rescinded or must be
otherwise restored or returned upon the insolvency, bankruptcy or reorganization
of the Borrower or otherwise, each Guarantor's obligations hereunder with
respect to such payment shall be reinstated as though such payment had been due
but not made at such time.

          SECTION 7.04.  Waiver by the Guarantors.  Each Guarantor irrevocably
waives acceptance hereof, presentment, demand, protest and any notice not
provided for herein, as well as any requirement that at any time any action be
taken by any corporation or person against any other obligor or any other
corporation or person.

          SECTION 7.05. Subrogation. Each Guarantor hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or hereafter
acquire against the Borrower, any other Loan Party or any other insider
guarantor that arise from the existence, payment, performance or enforcement of
such Guarantor's obligations under or in respect of this Guaranty or any other
Loan Document, including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of any Lender against the Borrower, any other
Loan Party or any other insider guarantor or any collateral, whether or not such
claim, remedy or right arises in equity or under contract, statute or common
law, including, without limitation, the right to take or receive from the
Borrower, any other Loan Party or any other insider guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim, remedy or right, unless and until
all amounts payable under this Guaranty shall have been paid in full in cash,
and the Commitments shall have expired or been terminated. If any amount shall
be paid to any Guarantor in violation of the immediately preceding sentence at
any time prior to the latest of (a) the payment in full in cash of all amounts
payable under this Guaranty, and (b) the Termination Date, such amount shall be
received and held in trust for the benefit of the Lenders, shall be segregated
from other property and funds of such Guarantor and shall forthwith be paid or
delivered to the Administrative Agent in the same form as so received (with any
necessary endorsement or assignment) to be credited and applied to all amounts
payable under this Guaranty, whether matured or unmatured, in accordance with
the terms of the Loan Documents, or to be held as collateral for any amounts
payable under this Guaranty thereafter arising. If (i) any Guarantor shall make
payment to any Lender of all or any amounts payable under this Guaranty, (ii)
all amounts payable under this Guaranty shall have been paid in full in cash,
and (iii) the Termination Date shall have occurred, the Lenders will, at such
Guarantor's request and expense, execute and deliver to such Guarantor
appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to such Guarantor of an
interest in the obligations resulting from such payment made by such Guarantor
pursuant to this Guaranty.

          SECTION 7.06.  Stay of Acceleration.  If acceleration of the time for
payment of any amount payable by the Borrower under any of the Loan Documents is
stayed upon the insolvency,
<PAGE>

                                      64

bankruptcy or reorganization of the Borrower, all such amounts otherwise subject
to acceleration under the terms of this Agreement shall nonetheless by payable
by any Guarantor hereunder forthwith on demand by the Administrative Agent made
at the request of the requisite proportion of the Lenders.

          SECTION 7.07. Continuing Guaranty; Assignments. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
latest of (i) the payment in full in cash of all amounts payable under this
Guaranty and (ii) the Termination Date, (b) be binding upon the Guarantor, its
successors and assigns and (c) inure to the benefit of and be enforceable by the
Lenders and their successors, transferees and assigns. Without limiting the
generality of clause (c) of the immediately preceding sentence, any Lender may
assign or otherwise transfer all or any portion of its rights and obligations
under this Agreement (including, without limitation, all or any portion of its
Commitments, the Advances owing to it and the Committed Note or Notes held by
it) to any other Person, and such other Person shall thereupon become vested
with all the benefits in respect thereof granted to such Lender herein or
otherwise, in each case as and to the extent provided in Section 9.07. No
Guarantor shall have the right to assign its rights hereunder or any interest
herein without the prior written consent of the Required Lenders.

                                 ARTICLE VIII

                                  THE AGENTS

          SECTION 8.01.  Authorization and Action.  Each Lender (in its capacity
as a Lender) hereby appoints and authorizes each Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this
Agreement and the other Loan Documents as are delegated to such Agent by the
terms hereof and thereof, together with such powers and discretion as are
reasonably incidental thereto.  As to any matters not expressly provided for by
the Loan Documents (including, without limitation, enforcement or collection of
the Notes), no Agent shall be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders or all the Lenders where unanimity is required, and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided, however, that no Agent shall be required to take any action that
exposes such Agent to personal liability or that is contrary to this Agreement
or applicable law.  Each Agent agrees to give to each Lender prompt notice of
each notice given to it by the Parent or the Borrower pursuant to the terms of
this Agreement.

          SECTION 8.02.  Agents' Reliance, Etc.  Neither any Agent nor any of
their respective directors, officers, agents or employees shall be liable for
any action taken or omitted to be taken by it or them under or in connection
with the Loan Documents, except for its or their own gross negligence or willful
misconduct.  Without limitation of the generality of the foregoing, each Agent:
(a) may treat the payee of any Note as the holder thereof until, in the case of
the Administrative Agent, the Administrative Agent receives and accepts an
Assignment and Acceptance entered into by the Lender that is the payee of such
Note, as assignor, and an Eligible Assignee, as assignee, or, in the case of any
other Agent, such Agent has received notice from the Administrative Agent that
it has received and accepted such Assignment and Acceptance, in each case as
provided in Section 9.07; (b) may consult with legal counsel
<PAGE>

                                      65

(including counsel for any Loan Party), independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (c) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with the Loan
Documents; (d) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of any
Loan Document on the part of any Loan Party or to inspect the property
(including the books and records) of any Loan Party; (e) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant thereto; and (f) shall incur no liability under or
in respect of any Loan Document by acting upon any notice, consent, certificate
or other instrument or writing (which may be by telegram or telecopy) reasonably
believed by it to be genuine and signed or sent by the proper party or parties.

          SECTION 8.03. MGT and Affiliates. With respect to its Commitments, the
Committed Advances made by it and the Committed Notes issued to it, MGT shall
have the same rights and powers under the Loan Documents as any other Lender and
may exercise the same as though it were not an Agent; and the term "Lender" or
"Lenders" shall, unless otherwise expressly indicated, include MGT in its
individual capacity. MGT and its affiliates may accept deposits from, lend money
to, act as trustee under indentures of, accept investment banking engagements
from and generally engage in any kind of business with, any Loan Party, any of
its Subsidiaries and any Person that may do business with or own securities of
any Loan Party or any such Subsidiary, all as if MGT were not Agent and without
any duty to account therefor to the Lenders.

          SECTION 8.04. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon any Agent or any other Lender and
based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon any 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 decisions in taking or
not taking action under this Agreement.

          SECTION 8.05. Indemnification. (a) Each Lender severally agrees to
indemnify each Agent (to the extent not promptly reimbursed by the Borrower)
from and against such Lender's ratable share (determined as provided below) of
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against such Agent
in any way relating to or arising out of the Loan Documents or any action taken
or omitted by such Agent under the Loan Documents; provided, however, that no
Lender shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Agent's gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse each Agent promptly
upon demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by the Borrower under Section
9.04, to the extent that such Agent is not promptly reimbursed for such costs
and expenses by the Borrower.
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                                      66

          (b) For purposes of this Section 8.05, the Lenders' respective ratable
shares of any amount shall be determined, at any time, according to the sum of
(i) the aggregate principal amount of the Advances outstanding at such time and
owing to the respective Lenders and (ii) their respective Unused Commitments at
such time. The failure of any Lender to reimburse any Agent promptly upon demand
for its ratable share of any amount required to be paid by the Lenders to such
Agent as provided herein shall not relieve any other Lender of its obligation
hereunder to reimburse such Agent for its ratable share of such amount, but no
Lender shall be responsible for the failure of any other Lender to reimburse
such Agent for such other Lender's ratable share of such amount. Without
prejudice to the survival of any other agreement of any Lender hereunder, the
agreement and obligations of each Lender contained in this Section 8.05 shall
survive the payment in full of principal, interest and all other amounts payable
hereunder and under the other Loan Documents.

          SECTION 8.06. Successor Agents. Any Agent may resign at any time by
giving written notice thereof to the Lenders and the Borrower and may be removed
at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right, subject (so
long as no Event of Default exists) to the consent of the Parent (which consent
shall not be unreasonably withheld), 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 after the retiring Agent's giving
of notice of resignation or the Required Lenders' removal of the retiring Agent,
then the retiring Agent may, on behalf of the Lenders, appoint a successor
Agent, which shall be a commercial bank organized under the laws of the United
States or of any State thereof and having a combined capital and surplus of at
least $250,000,000. Upon the acceptance of any appointment as Agent hereunder by
a successor Agent such successor Agent shall succeed to and become vested with
all the rights, powers, discretion, privileges and duties of the retiring Agent,
and the retiring Agent shall be discharged from its duties and obligations under
the Loan Documents. If within 45 days after written notice is given of the
retiring Agent's resignation or removal under this Section 8.06 no successor
Agent shall have been appointed and shall have accepted such appointment, then
on such 45th day (i) the retiring Agent's resignation or removal shall become
effective, (ii) the retiring Agent shall thereupon be discharged from its duties
and obligations under the Loan Documents and (iii) the Required Lenders shall
thereafter perform all duties of the retiring Agent under the Loan Documents
until such time, if any, as the Required Lenders appoint a successor Agent as
provided above. After any retiring Agent's resignation or removal hereunder as
Agent shall have become effective, the provisions of this Article VIII shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under this Agreement.

                                  ARTICLE IX

                                 MISCELLANEOUS

          SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement or the Notes or any other Loan Document, nor consent to any
departure by any Loan Party therefrom, shall in any event be effective unless
the same shall be in writing and signed by the Required Lenders (and, in the
case of an amendment, the Parent and the Borrower), and then any such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given;
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                                      67

provided, however, that no amendment, waiver or consent shall, unless in writing
and signed by all of the Lenders (other than any Lender that is, at such time, a
Defaulting Lender), do any of the following at any time: (i) waive any of the
conditions specified in Section 3.01 or, in the case of the Initial Extension of
Credit, Section 3.02, (ii) change the number of Lenders or the percentage of (x)
the Commitments, or (y) the aggregate unpaid principal amount of the Advances
that, in each case, shall be required for the Lenders or any of them to take any
action hereunder, (iii) reduce or limit the obligations of any Guarantor under
Section 7.01 or release such Guarantor or otherwise limit such Guarantor's
liability with respect to the obligations owing to the Agents and the Lenders,
(iv) amend this Section 9.01, (v) increase the Commitments of the Lenders or
subject the Lenders to any additional obligations, (vi) reduce the principal of,
or interest on, the Notes or any fees or other amounts payable hereunder (other
than under Section 2.06(b)), (vii) postpone any date fixed for any payment of
principal of, or interest on, the Notes or any fees or other amounts payable
hereunder (other than under Section 2.06(b)), or (viii) limit the liability of
any Loan Party under any of the Loan Documents; provided further that no
amendment, waiver or consent shall, unless in writing and signed by an Agent in
addition to the Lenders required above to take such action, affect the rights or
duties of such Agent under this Agreement or the other Loan Documents.

          SECTION 9.02.  Notices, Etc.  All notices and other communications
provided for hereunder shall be in writing (including telegraphic telecopy
communication) and mailed, telegraphed, telecopied or delivered, if to the
Parent, at its address at The Ace Building, 30 Woodbourne Avenue, Hamilton HM08,
Bermuda, Attention:  Stephen Kicinski; if to the Borrower, at its address at Six
Concourse Parkway, Suite 2500, Atlanta, Georgia  30328 with a copy to The Ace
Building, 30 Woodbourne Avenue, Hamilton HM08, Bermuda, Attention: Stephen
Kicinski; if to any Initial Lender, at its Domestic Lending Office specified
opposite its name on Schedule I hereto; if to any other Lender, at its Domestic
Lending Office specified in the Assignment and Acceptance pursuant to which it
became a Lender; if to the Syndication Agent, at its address at World Financial
Center, North Tower, 250 Vesey Street, New York, New York 10281, Attention:
Carol Feley; and if to the Administrative Agent, at its address at 500 Stanton
Christiana Road, Newark, Delaware 19713, Attention: Bill Wood; or, as to any
party, at such other address as shall be designated by such party in a written
notice to the other parties.  All such notices and communications shall, when
mailed, telegraphed or telecopied, be effective when deposited in the mails,
delivered to the telegraph company or transmitted by telecopier, respectively,
except that notices and communications to any Agent pursuant to Article II, III
or VIII shall not be effective until received by such Agent.  Manual delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit hereto to be executed
and delivered hereunder shall be effective as delivery of an original executed
counterpart thereof.

          SECTION 9.03.  No Waiver; Remedies.  No failure on the part of any
Lender or any Agent to exercise, and no delay in exercising, any right hereunder
or under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

          SECTION 9.04.  Costs and Expenses.  (a)  The Borrower agrees to pay on
demand (i) all reasonable costs and expenses of the Agents in connection with
the preparation, execution, delivery,
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                                      68

administration, modification and amendment of the Loan Documents (including,
without limitation, (A) all due diligence, collateral review, syndication,
transportation, computer, duplication, appraisal, audit, insurance, consultant,
search, filing and recording fees and expenses and (B) the reasonable fees and
expenses of a single counsel for the Agents with respect thereto, with respect
to advising the Agents as to its rights and responsibilities, or the perfection,
protection or preservation of rights or interests, under the Loan Documents,
with respect to negotiations with any Loan Party or with other creditors of any
Loan Party or any of its Subsidiaries arising out of any Default or any events
or circumstances that may give rise to a Default and with respect to presenting
claims in or otherwise participating in or monitoring any bankruptcy, insolvency
or other similar proceeding involving creditors' rights generally and any
proceeding ancillary thereto) and (ii) all reasonable costs and expenses of each
Agent and each Lender in connection with the enforcement of the Loan Documents,
whether in any action, suit or litigation, or any bankruptcy, insolvency or
other similar proceeding affecting creditors' rights generally (including,
without limitation, the reasonable fees and expenses of counsel for the
Administrative Agent and each Lender with respect thereto).

          (b) The Borrower agrees to indemnify and hold harmless each Agent,
each Lender and each of their Affiliates and their respective officers,
directors, employees, agents and advisors (each, an "Indemnified Party") from
and against any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in each
case arising out of or in connection with or by reason of (including, without
limitation, in connection with any investigation, litigation or proceeding or
preparation of a defense in connection therewith) this Agreement, the actual or
proposed use of the proceeds of the Advances, the Transaction Documents or any
of the transactions contemplated thereby, including, without limitation, any
acquisition or proposed acquisition (including, without limitation, the
Acquisition and any of the other transactions contemplated by the Transaction
Documents) by the Parent or any of its Subsidiaries or Affiliates of all or any
portion of the Equity Interests in or Debt securities or substantially all of
the assets of CIGNAP&C, except to the extent such claim, damage, loss, liability
or expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party's gross negligence or
willful misconduct.  In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section 9.04(b) applies, such
indemnity shall be effective whether or not such investigation, litigation or
proceeding is brought by any Loan Party, its directors, shareholders or
creditors or an Indemnified Party or any Indemnified Party is otherwise a party
thereto and whether or not the transactions contemplated by the Transaction
Documents are consummated. The Borrower also agrees not to assert any claim
against any Agent, any Lender or any of their Affiliates, or any of their
respective officers, directors, employees, attorneys and agents, on any theory
of liability, for special, indirect, consequential or punitive damages arising
out of or otherwise relating to the credit facilities provided hereunder, the
actual or proposed use of the proceeds of the Advances, the Transaction
Documents or any of the transactions contemplated by the Transaction Documents.

          (c) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance or LIBO Rate Advance is made by the Borrower to or for the account
of a Lender other than on the last day of the Interest Period for such Advance,
as a result of a payment or Conversion pursuant to Section 2.06, 2.09(b)(i) or
2.10(d), acceleration of the maturity of the Notes pursuant to Section 6.01 or
for any other reason, or if the Borrower fails to make any payment or prepayment
of an Advance for
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                                      69

which a notice of prepayment has been given or that is otherwise required to be
made, whether pursuant to Section 2.04, 2.06 or 6.01 or otherwise, the Borrower
shall, within 10 days after demand by such Lender (with a copy of such demand to
the Administrative Agent), which demand shall include a calculation in
reasonable detail of the amount demanded, to pay to the Administrative Agent for
the account of such Lender any amounts required to compensate such Lender for
any additional losses, costs or expenses that it may reasonably incur as a
result of such payment or Conversion or such failure to pay or prepay, as the
case may be, including, without limitation, any loss (excluding loss of
anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance.

          (d) Without prejudice to the survival of any other agreement of any
Loan Party hereunder or under any other Loan Document, the agreements and
obligations of the Borrower contained in Sections 2.10 and 2.12 and this Section
9.04 shall survive the payment in full of principal, interest and all other
amounts payable hereunder and under any of the other Loan Documents.

          SECTION 9.05. Right of Set-off. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, each Agent and each Lender and each of their
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and otherwise apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Agent, such Lender or such
Affiliate to or for the credit or the account of the Borrower against any and
all of the obligations of the Borrower now or hereafter existing under the Loan
Documents, irrespective of whether such Agent or such Lender shall have made any
demand under this Agreement or such Note or Notes and although such obligations
may be unmatured. Each Agent and each Lender agrees promptly to notify the
Borrower after any such set-off and application; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Agent and each Lender and their respective
Affiliates under this Section are in addition to other rights and remedies
(including, without limitation, other rights of set-off) that such Agent, such
Lender and their respective Affiliates may have.

          SECTION 9.06. Binding Effect. This Agreement shall become effective
when it shall have been executed by the Parent, the Borrower, the Subsidiary
Guarantors and each Agent and the Administrative Agent shall have been notified
by each Initial Lender that such Initial Lender has executed it and thereafter
shall be binding upon and inure to the benefit of the Borrower, each Agent and
each Lender and their respective successors and assigns, except that no Loan
Party shall have the right to assign its rights hereunder or any interest herein
without the prior written consent of the Lenders.

          SECTION 9.07. Assignments and Participations. (a) Each Lender may and,
so long as no Default shall have occurred and be continuing, if demanded by the
Borrower (following a demand by such Lender pursuant to Section 2.17), upon at
least five Business Days' notice to such Lender and the Administrative Agent,
will assign to one or more Eligible Assignee, all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Committed Advances owing to it and the Note or
Notes held by it); provided, however, that (i) each such assignment shall be of
a uniform, and not a varying, percentage of all rights and obligations under and
in
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                                      70

respect of the Committed Facility, the "Committed Facility" under the Parent
Five-Year Revolving Credit Facility and the "Committed Facility" under the
Parent 364-Day Revolving Credit Facility, except for any non-pro rata assignment
by a "Downgraded Lender" under the Parent Five-Year Revolving Credit Facility of
its commitment thereunder pursuant to Sections 2.17 and 2.19 thereof and any
non-pro rata assignments to a SPC pursuant to Section 9.07(l) and any other non-
pro rata assignment approved by the Administrative Agent and the Borrower, (ii)
except in the case of an assignment to a Person that, immediately prior to such
assignment, was a Lender, an Affiliate of any Lender or an Approved Fund of any
Lender or an assignment of all of a Lender's rights and obligations under this
Agreement, the aggregate amount of the Commitments being assigned to such
Eligible Assignee pursuant to such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be
less than $10,000,000, (iii) each such assignment shall be to an Eligible
Assignee, (iv) each assignment made as a result of a demand by the Borrower
pursuant to Section 2.17 shall be arranged by the Borrower after consultation
with the Administrative Agent and shall be either an assignment of all of the
rights and obligations of the assigning Lender under this Agreement or an
assignment of a portion of such rights and obligations made concurrently with
another such assignment or other such assignments that together cover all of the
rights and obligations of the assigning Lender under this Agreement, (v) no
Lender shall be obligated to make any such assignment as a result of a demand by
the Borrower pursuant to Section 2.17 unless and until such Lender shall have
received one or more payments from either the Borrower or other Eligible
Assignees in an aggregate amount at least equal to the aggregate outstanding
principal amount of the Committed Advances owing to such Lender, together with
accrued interest thereon to the date of payment of such principal amount and all
other amounts payable to such Lender under this Agreement, (vi) as a result of
such assignment, the Borrower shall not be subject to additional amounts under
Section 2.10 or 2.12, (vii) no such assignment shall be permitted without the
consent of the Administrative Agent and, so long as no Default shall have
occurred and be continuing, the Borrower (which consents shall not be
unreasonably withheld) and (viii) the parties to each such assignment shall
execute and deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with any Note
or Notes subject to such assignment and a processing and recordation fee of
$2,500.00.

          (b) Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in such Assignment and Acceptance, (i) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (ii) the
Lender or assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Sections 2.10, 2.12 and 9.04
to the extent any claim thereunder relates to an event arising prior to such
assignment) and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all of the remaining portion
of an assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto).

          (c) By executing and delivering an Assignment and Acceptance, each
Lender assignor thereunder and each assignee thereunder confirm to and agree
with each other and the other parties thereto and hereto as follows: (i) other
than as provided in such Assignment and Acceptance, 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 any Loan
Document or the
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                                       71

execution, legality, validity, enforceability, genuineness, sufficiency or value
of, or the perfection or priority of any lien or security interest created or
purported to be created under or in connection with, any Loan Document or any
other instrument or document furnished pursuant thereto; (ii) such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of any Loan Party or the performance or
observance by any Loan Party of any of its obligations under any Loan Document
or any other instrument or document furnished pursuant thereto; (iii) such
assignee confirms that it has received a copy of this Agreement, together with
copies of the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon any 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 this Agreement; (v) such assignee confirms
that it is an Eligible Assignee; (vi) such assignee appoints and authorizes each
Agent to take such action as agent on its behalf and to exercise such powers and
discretion under the Loan Documents as are delegated to such Agent by the terms
hereof and thereof, together with such powers and discretion as are reasonably
incidental thereto; and (vii) such assignee agrees that it will perform in
accordance with their terms all of the obligations that by the terms of this
Agreement are required to be performed by it as a Lender.

          (d) The Administrative Agent, acting for this purpose (but only for
this purpose) as the agent of the Borrower, shall maintain at its address
referred to in Section 9.02 a copy of each Assignment and Acceptance and each
Designation Agreement delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and, with respect to
Lenders other than Designated Bidders, the Commitment of, and principal amount
of the Advances owing to, each Lender from time to time (the "Register"). The
entries in the Register shall be conclusive and binding for all purposes, absent
manifest error, and the Borrower, the Agents and the Lenders shall treat each
Person whose name is recorded in the Register as a Lender hereunder for all
purposes of this Agreement. The Register shall be available for inspection by
the Borrower or any Agent or any Lender at any reasonable time and from time to
time upon reasonable prior notice.

          (e) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee, together with any Note or Notes subject to
such assignment, the Administrative Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of Exhibit C
hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the
Borrower and each other Agent. No Assignment and Acceptance shall be effective
unless and until it shall have been recorded in the Register. In the case of any
assignment by a Lender, within five Business Days after its receipt of such
notice, the Borrower, at its own expense, shall execute and deliver to the
Administrative Agent in exchange for the surrendered Note or Notes a new Note to
the order of such Eligible Assignee in an amount equal to the Commitment assumed
by it pursuant to such Assignment and Acceptance and, if any assigning Lender
has retained a Commitment hereunder, a new Note to the order of such assigning
Lender in an amount equal to the Commitment retained by it hereunder. Such new
Note or Notes shall be in an aggregate principal amount equal to the aggregate
principal amount of such surrendered Note or Notes, shall be dated the effective
date of such Assignment and Acceptance and shall otherwise be in substantially
the form of Exhibit A-1 hereto.
<PAGE>

                                      72

          (f) Each Lender (other than the Designated Bidders) may designate one
or more banks or other entities to have a right to make Competitive Bid Advances
as a Lender pursuant to Section 2.03; provided, however, that (i) no such Lender
shall be entitled to make more than 3 such designations, (ii) each such Lender
making one or more such designations shall retain the right to make Competitive
Bid Advances as a Lender pursuant to Section 2.03, (iii) each such designation
shall be to a Designated Bidder and (iv) the parties to each such designation
shall execute and deliver to the Agent, for its acceptance and recording in the
Register, a Designation Agreement. Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Designation
Agreement, the designee thereunder shall be a party hereto with a right to make
Competitive Bid Advances as a Lender pursuant to Section 2.03 and the
obligations related thereto.

          (g) By executing and delivering a Designation Agreement, the Lender
making the designation thereunder and its designee thereunder confirm and agree
with each other and the other parties hereto as follows: (i) such Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; (ii) such Lender makes no representation or warranty
and assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such designee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Designation Agreement; (iv) such designee will, independently and without
reliance upon the Agent, such designating 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
this Agreement; (v) such designee confirms that it is a Designated Bidder; (vi)
such designee appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement as
are delegated to the Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such designee agrees
that it will perform in accordance with their terms all of the obligations which
by the terms of this Agreement are required to be performed by it as a Lender.

          (h) Upon its receipt of a Designation Agreement executed by a
designating Lender and a designee representing that it is a Designated Bidder,
the Administrative Agent shall, if such Designation Agreement has been completed
and is substantially in the form of Exhibit I hereto, (i) accept such
Designation Agreement, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Borrower.

          (i) Each Lender may sell participations to one or more Persons (other
than any Loan Party or any of its Affiliates) in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitment, the Committed Advances owing to it and the Note
or Notes (if any) held by it); provided, however, that (i) such Lender's
obligations under this Agreement (including, without limitation, its Commitment)
shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) such Lender
shall remain the holder of any such Committed Note for all purposes of this
Agreement,
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                                      73

(iv) the Borrower, the Agents and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any
provision of any Loan Document, or any consent to any departure by any Loan
Party therefrom, except to the extent that such amendment, waiver or consent
would reduce the principal of, or interest on, the Committed Notes or any fees
or other amounts payable hereunder, in each case to the extent subject to such
participation, postpone any date fixed for any payment of principal of, or
interest on, the Committed Notes or any fees or other amounts payable hereunder,
in each case to the extent subject to such participation. Each Lender shall, as
agent of the Borrower solely for the purposes of this Section, record in book
entries maintained by such Lender, the name and amount of the participating
interest of each Person entitled to receive payments in respect of any
participating interests sold pursuant to this Section.

          (j) Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 9.07, disclose
to the assignee or participant or proposed assignee or participant any
information relating to the Borrower furnished to such Lender by or on behalf of
the Borrower; provided, however, that, prior to any such disclosure, the
assignee or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any Confidential Information received by it from
such Lender.

          (k) Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time create a security interest in all or any portion of
its rights under this Agreement (including, without limitation, the Advances
owing to it and the Note or Notes held by it) in favor of any Federal Reserve
Bank in accordance with Regulation A of the Board of Governors of the Federal
Reserve System.

          (l) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Lender") may grant to a special purpose funding vehicle (an
"SPC"), identified as such in writing from time to time by the Granting Lender
to the Administrative Agent and the Borrower, the option to provide to the
Borrower all or any part of any Committed Advance that such Granting Lender
would otherwise be obligated to make to the Borrower pursuant to this Agreement;
provided that (i) nothing herein shall constitute a commitment by any SPC to
make any Committed Advance, (ii) if an SPC elects not to exercise such option or
otherwise fails to provide all or any part of such Committed Advance, the
Granting Lender shall be obligated to make such Committed Advance pursuant to
the terms hereof. The making of a Committed Advance by an SPC hereunder shall
utilize the Commitment of the Granting Lender to the same extent, and as if,
such Committed Advance were made by such Granting Lender. Each party hereto
hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
Granting Lender). In furtherance of the foregoing, each party hereto hereby
agrees (which agreement shall survive the termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior indebtedness of any SPC, it will
not institute against, or join any other person in instituting against, such SPC
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any State thereof. In
addition, notwithstanding anything to the contrary contained in this Section
9.07(l), any SPC may (i) with notice to, but without the prior written consent
of, the Borrower and the Administrative Agent and without paying any processing
fee therefor, assign all or a portion of its interests in any Committed Advances
to the Granting Lender or to any financial institutions (consented to by the
Borrower and Administrative Agent) providing liquidity and/or credit support to
or for the account of
<PAGE>

                                      74

such SPC to support the funding or maintenance of Committed Advances and (ii)
disclose on a confidential basis any non-public information relating to its
Committed Advances to any rating agency, commercial paper dealer or provider of
any surety, guarantee or credit or liquidity enhancement to such SPC. This
section may not be amended without the written consent of each SPC.

          SECTION 9.08.  Execution in Counterparts.  This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.

          SECTION 9.09.  Confidentiality. Neither any Agent nor any Lender shall
disclose any Confidential Information to any Person without the consent of the
Borrower, other than (a) to such Agent's or such Lender's Affiliates and their
officers, directors, employees, agents and advisors and to actual or prospective
Eligible Assignees and participants, and then only on a confidential basis, (b)
as required by any law, rule or regulation or judicial process, (c) as requested
or required by any state, Federal or foreign authority or examiner regulating
such Lender and (d) to any rating agency when required by it, provided that,
prior to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Loan Parties
received by it from such Lender.

          SECTION 9.10.  Jurisdiction, Etc. (a) Each of the parties hereto
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any New York State court or Federal court of
the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement or any of the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such Federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement or any of the other Loan Documents in the
courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any of the other Loan
Documents to which it is a party in any New York State or Federal court. Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

          SECTION 9.11. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.

          SECTION 9.12. Waiver of Jury Trial. Each of the Borrower, the Parent,
the Subsidiary Guarantors, the Agents and the Lenders irrevocably waives all
right to trial by jury in any action, proceeding or counterclaim (whether based
on contract, tort or otherwise) arising out of or relating to any
<PAGE>

                                      75

of the Loan Documents, the Advances or the actions of any Agent or any Lender in
the negotiation, administration, performance or enforcement thereof.
<PAGE>

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

                                       ACE INA HOLDINGS INC

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

                                       ACE LIMITED

The Common Seal of ACE Limited was
hereunto affixed in the presence of:

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

------------------------------
Secretary

                                       ACE BERMUDA INSURANCE LTD.

The Common Seal of ACE Bermuda
Insurance Ltd. was hereunto affixed
in the presence of:

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

------------------------------
Secretary

                                       TEMPEST REINSURANCE COMPANY LIMITED

The Common Seal of Tempest Reinsurance
Company Limited was hereunto affixed in
the presence of:

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

------------------------------
Secretary
<PAGE>

                                       MERRILL LYNCH, PIERCE, FENNER & SMITH
                                        INCORPORATED,
                                        as Lead Arranger and Syndication Agent

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

                                       MORGAN GUARANTY TRUST COMPANY
                                         OF NEW YORK,
                                         as Administrative Agent

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

                                       BANK OF AMERICA NATIONAL TRUST &
                                        SAVINGS ASSOCIATION,
                                        as Documentation Agent

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                   Initial Lenders

                                       MERRILL LYNCH CAPITAL CORPORATION

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       MORGAN GUARANTY TRUST COMPANY OF
                                        NEW YORK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       BANK OF AMERICA NATIONAL TRUST &
                                        SAVINGS ASSOCIATION

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CHASE MANHATTAN BANK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       MELLON BANK, N.A.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       ABN-AMRO BANK N.V.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       BANCO SANTANDER CENTRAL HISPANO, S.A.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       THE BANK OF NEW YORK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       THE BANK OF NOVA SCOTIA

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       THE FIRST NATIONAL BANK OF CHICAGO

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       BARCLAYS BANK PLC

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       BANQUE NATIONALE DE PARIS

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

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       THE BANK OF TOKYO-MITSUBISHI, LTD.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CIBC INC.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CITIBANK, N.A.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       COMERICA BANK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       COMMERZBANK AKTIENGESELLSCHAFT
                                         NEW YORK BRANCH

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

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CREDIT LYONNAIS NEW YORK BRANCH

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CREDIT SUISSE FIRST BOSTON

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

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       DEUTSCHE BANK AG, NEW YORK AND/OR
                                         CAYMAN ISLANDS BRANCHES

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

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       FIRST UNION NATIONAL BANK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       FLEET NATIONAL BANK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       ING BANK N.V., LONDON BRANCH

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

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       KBC BANK

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

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       LLOYDS BANK PLC

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

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       ROYAL BANK OF CANADA

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       SOCIETE GENERALE

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       STATE STREET BANK AND TRUST COMPANY

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       STANDARD CHARTERED BANK

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

                                       By:
                                           ------------------------------------
                                           Title:<PAGE>

                                                                  EXHIBIT 10.50
                                                                  EXECUTION COPY

                                 $250,000,000

                               CREDIT AGREEMENT

                           Dated as of June 11, 1999

                                     Among

                                  ACE LIMITED

                          ACE BERMUDA INSURANCE LTD.

                      TEMPEST REINSURANCE COMPANY LIMITED

                             ACE INA HOLDINGS INC.

                                 as Borrowers
                                 -- --------

                                      and

                       THE INITIAL LENDERS NAMED HEREIN

                              as Initial Lenders
                              -- ------- -------

                                      and

                               MELLON BANK, N.A.

                                as Issuing Bank
                                -- ------- ----

                                      and

              MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

                    as Lead Arranger and Syndication Agent
                    --------------------------------------

                                      and

                   MORGAN GUARANTY TRUST COMPANY OF NEW YORK

                            as Administrative Agent
                            -- --------------------

                                      and

                          J.P. MORGAN SECURITIES INC.

                                as Co-Arranger
                                -- -----------

                                      and

             BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION

                             CHASE MANHATTAN BANK

                          as Co-Documentation Agents
                          -- ---------------- ------

<PAGE>

                       T A B L E   O F   C O N T E N T S

<TABLE>
<S>                                                                                       <C>
Section                                                                                   Page
</TABLE>

                                   ARTICLE I

                       DEFINITIONS AND ACCOUNTING TERMS

<TABLE>
<S>                                                                                       <C>
1.01.  Certain Defined Terms                                                               1
1.02.  Computation of Time Periods; Other Definitional Provisions                         21
1.03.  Accounting Terms and Determinations                                                21
</TABLE>

                                  ARTICLE II

          AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT

<TABLE>
<S>                                                                                       <C>
SECTION 2.01.  The Committed Advances and the Letters of Credit                           21
SECTION 2.02.  Making the Committed Advances                                              22
SECTION 2.03.  The Competitive Bid Advances                                               23
SECTION 2.04.  Issuance and Renewals and Drawings, Participations and
                    Reimbursement with Respect to Letters of Credit                       27
SECTION 2.05.  Repayment of Advances                                                      30
SECTION 2.06.  Termination or Reduction of the WC Commitments.                            31
SECTION 2.07.  Prepayments                                                                31
SECTION 2.08.  Interest                                                                   32
SECTION 2.09.  Fees                                                                       33
SECTION 2.10.  Conversion of Advances                                                     33
SECTION 2.11.  Increased Costs, Etc.                                                      34
SECTION 2.12.  Payments and Computations                                                  36
SECTION 2.13.  Taxes                                                                      37
SECTION 2.14.  Sharing of Payments, Etc.                                                  39
SECTION 2.15.  Use of Proceeds                                                            40
SECTION 2.16.  Defaulting Lenders                                                         40
SECTION 2.17.  Replacement of Affected Lender                                             42
SECTION 2.18.  Certain Provisions Relating to the Issuing Bank and Letters of Credit      42
SECTION 2.19.  Downgrade Event with Respect to a Lender                                   44
SECTION 2.20.  Downgrade Event or Other Event with Respect to the Issuing Bank            46
SECTION 2.21.  Non-Dollar Letters of Credit                                               46

</TABLE>
<PAGE>
                                      ii
<TABLE>
<S>                                                                             <C>
Section                                                                         Page
</TABLE>
                                  ARTICLE III

           CONDITIONS OF LENDING AND ISSUANCES OF LETTERS OF CREDIT
<TABLE>
<S>                                                                             <C>
SECTION 3.01.  Conditions Precedent to Initial Extension of Credit              48
SECTION 3.02.  Conditions Precedent to Each Committed Borrowing and Issuance,
                    Extension or Increase of a Letter of Credit                 50
SECTION 3.03.  Conditions Precedent to Each Competitive Bid Borrowing           51
SECTION 3.04.  Determinations Under Section 3.01                                51
</TABLE>

                                  ARTICLE IV
                        REPRESENTATIONS AND WARRANTIES
<TABLE>
<S>                                                                             <C>
SECTION 4.01.  Representations and Warranties of the Borrowers                  52
</TABLE>

                                   ARTICLE V
                          COVENANTS OF THE BORROWERS
<TABLE>
<S>                                                                             <C>
SECTION 5.01.  Affirmative Covenants                                            56
SECTION 5.02.  Negative Covenants                                               58
SECTION 5.03.  Reporting Requirements                                           62
SECTION 5.04.  Financial Covenants                                              64
</TABLE>
                                  ARTICLE VI
                               EVENTS OF DEFAULT

<TABLE>
<S>                                                                             <C>
SECTION 6.01.  Events of Default                                                65
SECTION 6.02.  Actions in Respect of the Letters of Credit upon Default         67
</TABLE>
                                 ARTICLE VII
                                 THE GUARANTY

<TABLE>
<S>                                                                             <C>
SECTION 7.01.  The Guaranty                                                     68
SECTION 7.02.  Guaranty Unconditional                                           68
SECTION 7.03.  Discharge Only upon Payment in Full; Reinstatement in Certain
                    Circumstances                                               69
</TABLE>

<PAGE>
                                      iii
<TABLE>
<S>                                                                             <C>
SECTION 7.04.  Waiver by the Borrowers                                          69
SECTION 7.05.  Subrogation                                                      69
SECTION 7.06.  Stay of Acceleration                                             70
SECTION 7.07.  Continuing Guaranty; Assignments                                 70
</TABLE>
                                 ARTICLE VIII
                                  THE AGENTS
<TABLE>
<S>                                                                             <C>
SECTION 8.01.  Authorization and Action                                         70
SECTION 8.02.  Agents' Reliance, Etc                                            71
SECTION 8.03.  MGT and Affiliates                                               71
SECTION 8.04.  Lender Credit Decision                                           71
SECTION 8.05.  Indemnification                                                  72
SECTION 8.06.  Successor Agents                                                 72
</TABLE>
                                  ARTICLE IX
                                 MISCELLANEOUS
<TABLE>
<S>                                                                             <C>
SECTION 9.01.  Amendments, Etc                                                  73
SECTION 9.02.  Notices, Etc                                                     73
SECTION 9.03.  No Waiver; Remedies                                              74
SECTION 9.04.  Costs and Expenses                                               74
SECTION 9.05.  Right of Set-off.                                                75
SECTION 9.06.  Binding Effect                                                   75
SECTION 9.07.  Assignments and Participations                                   76
SECTION 9.08.  Execution in Counterparts                                        80
SECTION 9.09.  No Liability of the Issuing Bank                                 80
SECTION 9.10.  Confidentiality                                                  80
SECTION 9.11.  Jurisdiction, Etc                                                81
SECTION 9.12.  Governing Law                                                    81
SECTION 9.14.  Waiver of Jury Trial                                             81
</TABLE>
<PAGE>
                                      iv
<TABLE>
<S>                                                                        <C>
Section                                                                    Page

SCHEDULES

Schedule I          -  Commitments and Applicable Lending Offices
Schedule 4.01(b)    -  Subsidiaries

EXHIBITS

Exhibit A-1         -  Form of Committed Note
Exhibit A-2         -  Form of Competitive Bid Note
Exhibit B-1         -  Form of Notice of Committed Borrowing
Exhibit B-2         -  Form of Notice of Competitive Bid Borrowing
Exhibit C           -  Form of Assignment and Acceptance
Exhibit D-1         -  Form of Opinion of Cayman Islands Counsel to the
                         Parent
Exhibit D-2         -  Form of Opinion of New York Counsel to the Loan Parties
Exhibit D-3         -  Form of Opinion of Bermuda Counsel to the Ace Bermuda
                         and Tempest
Exhibit E           -  Form of Designation Agreement
</TABLE>
<PAGE>

                               CREDIT AGREEMENT

     CREDIT AGREEMENT dated as of June 11, 1999 among ACE Limited, a Cayman
Islands company (the "Parent"), ACE Bermuda Insurance Ltd ( "ACE Bermuda"),
Tempest Reinsurance Company Limited ("Tempest") and ACE INA Holdings Inc. ("ACE
INA") (Ace Bermuda, Tempest, ACE INA together with the Parent, the "Borrowers"),
the banks, financial institutions and other institutional lenders listed on the
signature pages hereof as the Initial Lenders (the "Initial Lenders"), Mellon
Bank, N.A. as issuing bank (the "Issuing Bank"), Merrill Lynch, Pierce, Fenner &
Smith Incorporated ("ML&Co."), as syndication agent (together with any successor
syndication agent appointed pursuant to Article VII, the "Syndication Agent")
and as lead arranger (the "Lead Arranger"), Morgan Guaranty Trust Company of New
York ("MGT"), as administrative agent (together with any successor
administrative agent appointed pursuant to Article VII, the "Administrative
Agent" and, together with the Syndication Agent, the "Agents") for the Lenders
(as hereinafter defined), and J.P. Morgan Securities Inc. ("J.P. Morgan"), as
co-arranger (the "Co-Arranger").

PRELIMINARY STATEMENTS:

     The Borrowers have requested that the Lenders make available to the
Borrowers a credit facility in an amount up to $250,000,000 to provide working
capital for the Borrowers and their Subsidiaries and for other general corporate
purposes.  The Lenders have indicated their willingness to agree to make such
amount available on the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto hereby agree as
follows:

                                   ARTICLE I

                       DEFINITIONS AND ACCOUNTING TERMS

     SECTION  1.01.  Certain Defined Terms.  As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

          "Account Party" with respect to any outstanding or proposed Letter
     of Credit means the Borrower for the account of which such Letter of Credit
     was or is proposed to be issued.

          "ACE Bermuda" has the meaning specified in the recital of parties to
     this Agreement.

          "ACE INA" has the meaning specified in the recital of parties to this
     Agreement.

          "ACE INA 364-Day Revolving Credit Facility" means the 364-Day
     Revolving Credit Agreement dated as of the date hereof among the Parent,
     ACE INA, as borrower, the subsidiary
<PAGE>

                                       2

     guarantors referred to therein, the lenders party thereto, ML&Co. as
     syndication agent and lead arranger, MGT as administrative agent, and J.P.
     Morgan as co-arranger, as the same may be amended, modified or otherwise
     supplemented from time to time.

          "Acquisition" means the acquisition by the Parent or one of its
     Affiliates from the Seller of CIGNAP&C, which currently is a division of
     the Seller.

          "Adjusted Consolidated Debt" means, at any time, an amount equal to
     (i) the then outstanding Consolidated Debt of the Parent and its
     Subsidiaries plus (ii) 50% of the then issued and outstanding amount of
     Preferred Securities (other than any Mandatorily Convertible Securities).

          "Administrative Agent" has the meaning specified in the recital of
     parties to this Agreement.

          "Administrative Agent's Account" means the account of the
     Administrative Agent maintained by the Administrative Agent with Morgan
     Guaranty Trust Company of New York, at its office at 60 Wall Street, New
     York, New York 10260, Account No. 999 99 090, Attention:  Bill Wood, or
     such other account as the Administrative Agent shall specify in writing to
     the Lenders.

          "Advance" means a Committed Advance, a Competitive Bid Advance or a
     Letter of Credit Advance.

          "Affected Lender" means any Lender that (i) has made, or notified any
     Borrower that an event or circumstance has occurred which may give rise to,
     a demand for compensation under Section 2.11(a) or (b) or Section 2.13 (but
     only so long as the event or circumstance giving rise to such demand or
     notice is continuing), (ii) has notified any  Borrower (which notice has
     not been withdrawn) of any event or circumstance of a type described in
     Section 2.11(c) or (d) or (iii) is a Downgraded Lender.

          "Affiliate" means, as to any Person, any other Person that, directly
     or indirectly, controls, is controlled by or is under common control with
     such Person or is a director or officer of such Person.  For purposes of
     this definition, the term "control" (including the terms "controlling",
     "controlled by" and "under common control with") of a Person means the
     possession, direct or indirect, of the power to vote 5% or more of the
     Voting Interests of such Person or to direct or cause the direction of the
     management and policies of such Person, whether through the ownership of
     Voting Interests, by contract or otherwise.

          "Agents" has the meaning specified in the recital of parties to this
     Agreement.

          "Agreement Currency" has the meaning specified in Section 2.21(g).

          "Applicable Facility Fee Percentage" means, as of any date, a
     percentage per annum determined by reference to the Public Debt Rating in
     effect on such date as set forth below:
<PAGE>
                                       3

<TABLE>
<CAPTION>
----------------------------------------------
Public Debt Rating    Applicable Facility Fee
S&P/Moody's                  Percentage
----------------------------------------------
<S>                   <C>
Level 1                                 0.125%
-------
A-/A3 and above
----------------------------------------------
Level 2                                 0.150%
-------
BBB+/Baa1
----------------------------------------------
Level 3                                 0.175%
-------
BBB/Baa2
----------------------------------------------
Level 4                                 0.225%
-------
BBB-/Baa3
----------------------------------------------
Level 5                                 0.350%
-------
Lower than Level 4
----------------------------------------------
</TABLE>

          "Applicable Lending Office" means, with respect to each Lender, such
     Lender's Domestic Lending Office in the case of a Base Rate Advance and
     such Lender's Eurodollar Lending Office in the case of a Eurodollar Rate
     Advance and, in the case of a Competitive Bid Advance, the office of such
     Lender notified by such Lender to the Administrative Agent as its
     Applicable Lending Office with respect to such Competitive Bid Advance.

          "Applicable Margin" means, as of any date, a percentage per annum
     determined by reference to the Public Debt Rating in effect on such date as
     set forth below:

<TABLE>
<CAPTION>
-------------------------------------------------------------
 Public Debt Rating    Applicable Margin   Applicable Margin
    S&P/Moody's               for                 for
                      Base Rate Advances    Eurodollar Rate
                                                Advances
-------------------------------------------------------------
<S>                   <C>                  <C>
Level 1                             0.00%              0.375%
-------
A-/A3 and above
-------------------------------------------------------------
Level 2                             0.00%              0.475%
-------
BBB+/Baa1
-------------------------------------------------------------
Level 3                             0.00%              0.575%
-------
BBB/Baa2
-------------------------------------------------------------
Level 4                             0.00%              0.650%
-------
BBB-/Baa3
-------------------------------------------------------------
Level 5                             0.00%              1.275%
-------
Lower than Level 4
-------------------------------------------------------------
</TABLE>

     provided, however, that, if as of any date of determination the aggregate
     outstanding principal amount of Committed Advances on such day exceeds 33%
     of the aggregate WC Commitments on such day, the Applicable Margin for such
     date shall be the percentage per annum determined above plus 0.125%.
<PAGE>

                                       4

          "Approved Fund" means, with respect to any Lender that is a fund that
     invests in bank loans, any other fund that invests in bank loans and is
     advised or managed by the same investment advisor as such Lender or by an
     Affiliate of such investment advisor.

          "Approved Investment" means any Investment that was made by the Parent
     or any of its Subsidiaries pursuant to investment guidelines set forth by
     the board of directors of the Parent which are consistent with past
     practices.

          "Arrangers" means each of the Lead Arranger and the Co-Arranger.

          "Assignment and Acceptance" means an assignment and acceptance entered
     into by a Lender and an Eligible Assignee, and accepted by the
     Administrative Agent, in accordance with Section 9.07 and in substantially
     the form of Exhibit C hereto.

          "Available Amount" of any Letter of Credit means, at any time, the
     maximum amount available to be drawn under such Letter of Credit at such
     time or at any future time (assuming compliance at such time or such future
     time with all conditions to drawing).

          "Bankruptcy Law" means any proceeding of the type referred to in
     Section 6.01(f) or Title 11, U.S. Code, or any similar foreign, federal or
     state law for the relief of debtors.

          "Base Rate" means a fluctuating interest rate per annum in effect from
     time to time, which rate per annum shall at all times be equal to the
     higher of:

               (a) the rate of interest announced publicly by MGT in New York,
     New York, from time to time, as MGT's prime rate; and

               (b) 1/2 of 1% per annum above the Federal Funds Rate.

          "Base Rate Advance" means an Advance that bears interest as provided
     in Section 2.08(a)(i).

          "Borrowers" has the meaning specified in the recital of parties to
     this Agreement.

          "Borrowers' 364-Day Revolving Credit Facility" means the 364-Day
     Revolving Credit Agreement dated as of the date hereof among the Borrowers,
     the lenders party thereto, ML&Co. as syndication agent and lead arranger,
     MGT as administrative agent and J.P. Morgan as co-arranger, as the same may
     be amended, modified or otherwise supplemented from time to time.

          "Borrowers' Account" means the account of one or more  Borrowers
     maintained by such Borrower(s) with The Bank of Bermuda Limited at its
     office at 6 Front Street, Hamilton, Bermuda HM12 Account No.18000035,
     Attention: Maria Aguiar, or such other account as the Parent shall specify
     in writing to the Administrative Agent or such other account as the
     Borrowers (or any one of them) shall specify in writing to the
     Administrative Agent.
<PAGE>

                                       5

          "Borrowing" means a Committed Borrowing or a Competitive Bid
     Borrowing.

          "Business Day" means a day of the year on which banks are not required
     or authorized by law to close in New York City and, if the applicable
     Business Day relates to any Eurodollar Rate Advances or LIBO Rate Advances,
     on which dealings are carried on in the London interbank market.

          "Capitalized Leases" means all leases that have been or should be, in
     accordance with GAAP, recorded as capitalized leases.

          "Change of Control" means the occurrence of any of the following: (a)
     any Person or two or more Persons acting in concert shall have acquired
     beneficial ownership (within the meaning of Rule 13d-3 of the Securities
     and Exchange Commission under the Securities Exchange Act of 1934),
     directly or indirectly, of Voting Interests of the Parent (or other
     securities convertible into such Voting Interests) representing 30% or more
     of the combined voting power of all Voting Interests of the Parent; or (b)
     a majority of the board of directors of the Parent shall not be Continuing
     Members; or (c) any Person or two or more Persons acting in concert shall
     have acquired by contract or otherwise, or shall have entered into a
     contract or arrangement that results in its or their acquisition of the
     power to exercise, directly or indirectly, a controlling influence over the
     management or policies of the Parent.

          "CIGNAP&C" means the domestic and international property and casualty
     business of the Seller.

          "Co-Arranger" has the meaning specified in the recital of parties to
     this Agreement.

          "Commitment" means a WC Commitment or the Letter of Credit Commitment.

          "Committed Advance" has the meaning specified in Section 2.01(a).

          "Committed Borrowing" means a borrowing consisting of simultaneous
     Committed Advances of the same Type made by the Lenders to the same
     Borrower.

          "Committed Facility" means, at any time, the aggregate amount of the
     Lenders' WC Commitments at such time.

          "Committed Note" means a promissory note of any Borrower payable to
     the order of any Lender, in substantially the form of Exhibit A-1 hereto,
     evidencing the aggregate indebtedness of such Borrower to such Lender
     resulting from the Committed Advances made by such Lender, as amended.

          "Competitive Bid Advance" means an advance by a Lender to any Borrower
     as part of a Competitive Bid Borrowing resulting from the competitive
     bidding procedure described in Section 2.03 and refers to a Fixed Rate
     Advance or a LIBO Rate Advance.
<PAGE>

                                       6

          "Competitive Bid Borrowing" means a borrowing consisting of
     simultaneous Competitive Bid Advances from each of the Lenders whose offer
     to make one or more Competitive Bid Advances as part of such borrowing has
     been accepted under the competitive bidding procedure described in Section
     2.03.

          "Competitive Bid Note" means a promissory note of any Borrower payable
     to the order of any Lender, in substantially the form of Exhibit A-2
     hereto, evidencing the indebtedness of such Borrower to such Lender
     resulting from Competitive Bid Advances made by such Lender.

          "Confidential Information" means information that any Loan Party
     furnishes to any Agent or any Lender, but does not include any such
     information that is or becomes generally available to the public other than
     as a result of a breach by such Agent or any Lender of its obligations
     hereunder or that is or becomes available to such Agent or such Lender from
     a source other than the Loan Parties that is not, to the best of such
     Agent's or such Lender's knowledge, acting in violation of a
     confidentiality agreement with a Loan Party.

          "Consolidated" refers to the consolidation of accounts in accordance
     with GAAP.

          "Consolidated Net Income" means, for any period, the net income of the
     Parent and its Consolidated Subsidiaries, determined on a Consolidated
     basis for such period.

          "Consolidated Tangible Net Worth" means at any date the Consolidated
     stockholder's equity of the Parent and its Consolidated Subsidiaries (plus,
     to the extent not included in such Consolidated stockholder's equity, the
     outstanding amount of all Mandatorily Convertible Preferred Securities)
     less their Consolidated Intangible Assets, all determined as of such date,
     provided that such determination for purposes of Section 5.04 shall be made
     without giving effect to adjustments pursuant to Statement No. 115 of the
     Financial Accounting Standards Board of the United States of America.  For
     purposes of this definition, "Intangible Assets" means the amount (to the
     extent reflected in determining such Consolidated stockholder's equity) of
     (i) all write-ups (other than write-ups resulting from foreign currency
     translations and write-ups of assets of a going concern business made
     within twelve months after the acquisition of such business) subsequent to
     March 31, 1999 in the book value of any asset owned by the Parent or a
     Consolidated Subsidiary and (ii) all unamortized debt discount and expense,
     unamortized deferred charges, deferred acquisition cost relating to the
     acquisition of the stock or assets of any other Person, goodwill, patents,
     trademarks, service marks, trade names, anticipated future benefit of tax
     loss carry-forwards, copyrights, organization or developmental expense and
     other intangible assets.

          "Contingent Obligation" means, with respect to any Person, any
     obligation or arrangement of such Person to guarantee or intended to
     guarantee any Debt, leases, dividends or other payment obligations
     ("primary obligations") of any other Person (the "primary obligor") in any
     manner, whether directly or indirectly, including, without limitation, (a)
     the direct or indirect guarantee, endorsement (other than for collection or
     deposit in the ordinary course of business), co-making, discounting with
     recourse or sale with recourse by such Person of the obligation of a
     primary obligor, (b) the obligation to make take-or-pay or similar
     payments, if
<PAGE>

                                       7

     required, regardless of nonperformance by any other party or parties to an
     agreement or (c) any obligation of such Person, whether or not contingent,
     (i) to purchase any such primary obligation or any property constituting
     direct or indirect security therefor, (ii) to advance or supply funds (A)
     for the purchase or payment of any such primary obligation or (B) to
     maintain working capital or equity capital of the primary obligor or
     otherwise to maintain the net worth or solvency of the primary obligor,
     (iii) to purchase property, assets, securities or services primarily for
     the purpose of assuring the owner of any such primary obligation of the
     ability of the primary obligor to make payment of such primary obligation
     or (iv) otherwise to assure or hold harmless the holder of such primary
     obligation against loss in respect thereof; provided, however, that
     Contingent Obligations shall not include any obligations of any such Person
     arising under insurance contracts entered into in the ordinary course of
     business. The amount of any Contingent Obligation shall be deemed to be an
     amount equal to the stated or determinable amount of the primary obligation
     in respect of which such Contingent Obligation is made (or, if less, the
     maximum amount of such primary obligation for which such Person may be
     liable pursuant to the terms of the instrument evidencing such Contingent
     Obligation) or, if not stated or determinable, the maximum reasonably
     anticipated liability in respect thereof (assuming such Person is required
     to perform thereunder), as determined by such Person in good faith.

          "Continuing Member" means a member of the Board of Directors of the
     Parent who either (i) was a member of the Parent's Board of Directors on
     the date of execution and delivery of this Agreement by the Parent and has
     been such continuously thereafter or (ii) became a member of such Board of
     Directors after such date and whose election or nomination for election was
     approved by a vote of the majority of the Continuing Members then members
     of the Parent's Board of Directors.

          "Conversion", "Convert" and "Converted" each refer to a conversion of
     Advances of one Type into Advances of the other Type pursuant to Section
     2.10 or 2.11.

          "Debenture" means debt securities issued by ACE INA or the Parent to
     the Special Purpose Trust in exchange for proceeds of Preferred Securities.

          "Debt" of any Person means, without duplication for purposes of
     calculating financial ratios, (a) all indebtedness of such Person for
     borrowed money, (b) all obligations of such Person for the deferred
     purchase price of property or services (other than trade payables incurred
     in the ordinary course of such Person's business), (c) all obligations of
     such Person evidenced by notes, bonds, debentures or other similar
     instruments, (d) all obligations of such Person created or arising under
     any conditional sale or other title retention agreement with respect to
     property acquired by such Person (even though the rights and remedies of
     the seller or lender under such agreement in the event of default are
     limited to repossession or sale of such property), (e) all obligations of
     such Person as lessee under Capitalized Leases (excluding imputed
     interest), (f) all obligations of such Person under acceptance, letter of
     credit or similar facilities, (g) all obligations of such Person to
     purchase, redeem, retire, defease or otherwise make any payment in respect
     of any Equity Interests in such Person or any other Person or any warrants,
     rights or options to acquire such capital stock (excluding payments under a
     contract for the forward sale of ordinary shares of such Person issued in a
     public offering), valued, in the case of Redeemable
<PAGE>

                                       8

     Preferred Interests, at the greater of its voluntary or involuntary
     liquidation preference plus accrued and unpaid dividends, (h) all
     Contingent Obligations of such Person in respect of Debt (of the types
     described above) of any other Person and (i) all indebtedness and other
     payment obligations referred to in clauses (a) through (h) above of another
     Person secured by (or for which the holder of such Debt has an existing
     right, contingent or otherwise, to be secured by) any Lien on property
     (including, without limitation, accounts and contract rights) owned by such
     Person, even though such Person has not assumed or become liable for the
     payment of such indebtedness or other payment obligations; provided,
     however, that the amount of Debt of such Person under clause (i) above
     shall, if such Person has not assumed or otherwise become liable for any
     such Debt, be limited to the lesser of the principal amount of such Debt or
     the fair market value of all property of such Person securing such Debt;
     provided further that "Debt" shall not include obligations in respect of
     insurance or reinsurance contracts entered into in the ordinary course of
     business; provided further that, solely for purposes of Section 5.04 and
     the definitions of "Adjusted Consolidated Debt" and "Total Capitalization",
     __Debt__ shall not include (x) any contingent obligations of any Person
     under or in connection with acceptance, letter of credit or similar
     facilities or (y) obligations of the Parent or ACE INA under any Debentures
     or under any subordinated guaranty of any Preferred Securities or
     obligations of the Special Purpose Trust under any Preferred Securities.

          "Default" means any Event of Default or any event that would
     constitute an Event of Default but for the requirement that notice be given
     or time elapse or both.

          "Defaulted Advance" means, with respect to any Lender at any time, the
     portion of any Advance required to be made by such Lender to any Borrower
     pursuant to Section 2.01 or 2.02 at or prior to such time that has not been
     made by such Lender or by the Administrative Agent for the account of such
     Lender pursuant to Section 2.02(d) as of such time.

          "Defaulted Amount" means, with respect to any Lender at any time, any
     amount required to be paid by such Lender to any Agent or any other Lender
     hereunder or under any other Loan Document at or prior to such time that
     has not been so paid as of such time, including, without limitation, any
     amount required to be paid by such Lender to (a) the Administrative Agent
     pursuant to Section 2.02(d) to reimburse the Administrative Agent for the
     amount of any Committed Advance made by the Administrative Agent for the
     account of such Lender, (b) the Issuing Bank pursuant to Section 2.04(c) to
     purchase a portion of a Letter of Credit Advance made by the Issuing Bank,
     (c) any other Lender pursuant to Section 2.14 to purchase any participation
     in Committed Advances owing to such other Lender and (d) any Agent or the
     Issuing Bank pursuant to Section 8.05 to reimburse such Agent or the
     Issuing Bank for such Lender's ratable share of any amount required to be
     paid by the Lenders to such Agent or the Issuing Bank as provided therein.

          "Defaulting Lender" means, at any time, any Lender that, at such time,
     (a) owes a Defaulted Advance or a Defaulted Amount or (b) shall take any
     action or be the subject of any action or proceeding of a type described in
     Section 6.01(f).
<PAGE>

                                       9

          "Designated Bidder" means (a) an Eligible Assignee or (b) a special
     purpose corporation that is engaged in making, purchasing or otherwise
     investing in commercial loans in the ordinary course of its business and
     that issues (or the parent of which issues) commercial paper rated at least
     "Prime-1" (or the then equivalent grade) by Moody's or "A-1" (or the then
     equivalent grade) by S&P that, in the case of either clause (a) or (b), (i)
     is organized under the laws of the United States or any State thereof, (ii)
     shall have become a party hereto pursuant to Section 9.07(f), (g) and (h)
     and (iii) is not otherwise a Lender.

          "Designation Agreement" means a designation agreement entered into by
     a Lender (other than a Designated Bidder) and a Designated Bidder, and
     accepted by the Administrative Agent and the Parent (such acceptance, in
     the case of the Parent, not to be unreasonably withheld), in substantially
     the form of Exhibit E hereto.

          "Dollar Equivalent" has the meaning specified in Section 2.21(h).

          "Domestic Lending Office" means, with respect to any Lender, the
     office of such Lender specified as its "Domestic Lending Office" opposite
     its name on Schedule I hereto or in the Assignment and Acceptance pursuant
     to which it became a Lender, as the case may be, or such other office of
     such Lender as such Lender may from time to time specify to any  Borrower
     and the Administrative Agent.

          "Downgrade Account" has the meaning specified in Section 2.19(a).

          "Downgrade Event" means, with respect to any Lender, a reduction of
     the credit rating for the senior unsecured unsupported long-term debt of
     such Lender by S&P or Moody's.

          "Downgraded Lender" means any Lender which has a credit rating of less
     than A- (in the case of S&P) or A3 (in the case of Moody's) for its senior
     unsecured unsupported long-term debt or which does not have any credit
     rating on such debt from one of S&P or Moody's.

          "Downgrade Notice" has the meaning specified in Section 2.19(a).

          "Effective Date" means the first date on which the conditions set
     forth in Article III shall have been satisfied.

          "Eligible Assignee" means (i) a Lender, (ii) an Affiliate of a Lender,
     or (iii) a commercial bank, a savings bank or other financial institution
     that is approved by the Administrative Agent and the Issuing Bank and,
     unless an Event of a Default has occurred and is continuing at the time any
     assignment is effected pursuant to Section 9.07, the Borrower (such
     approval of the Borrower not to be unreasonably withheld or delayed);
     provided, however, that neither any Loan Party nor any Affiliate of a Loan
     Party shall qualify as an Eligible Assignee under this definition.

          "Environmental Action" means any action, suit, demand, demand letter,
     claim, notice of non-compliance or violation, notice of liability or
     potential liability, investigation, proceeding,
<PAGE>

                                      10

     consent order or consent agreement relating in any way to any Environmental
     Law, any Environmental Permit or Hazardous Material or arising from alleged
     injury or threat to health, safety or the environment, including, without
     limitation, (a) by any governmental or regulatory authority for
     enforcement, cleanup, removal, response, remedial or other actions or
     damages and (b) by any governmental or regulatory authority or third party
     for damages, contribution, indemnification, cost recovery, compensation or
     injunctive relief.

          "Environmental Law" means any Federal, state, local or foreign
     statute, law, ordinance, rule, regulation, code, order, writ, judgment,
     injunction, decree or judicial or agency interpretation, policy or guidance
     relating to pollution or protection of the environment, health, safety or
     natural resources, including, without limitation, those relating to the
     use, handling, transportation, treatment, storage, disposal, release or
     discharge of Hazardous Materials.

          "Environmental Permit" means any permit, approval, identification
     number, license or other authorization required under any Environmental
     Law.

          "Equity Interests" means, with respect to any Person, shares of
     capital stock of (or other ownership or profit interests in) such Person,
     warrants, options or other rights for the purchase or other acquisition
     from such Person of shares of capital stock of (or other ownership or
     profit interests in) such Person, securities convertible into or
     exchangeable for shares of capital stock of (or other ownership or profit
     interests in) such Person or warrants, rights or options for the purchase
     or other acquisition from such Person of such shares (or such other
     interests), and other ownership or profit interests in such Person
     (including, without limitation, partnership, member or trust interests
     therein), whether voting or nonvoting, and whether or not such shares,
     warrants, options, rights or other interests are authorized or otherwise
     existing on any date of determination.

          "Equity Issuance" means one or more issuances by the Parent and/or ACE
     INA of Equity Interests and/or equity-linked securities, the Net Cash
     Proceeds of which shall be at least $500,000,000.

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

          "ERISA Affiliate" means any Person that for purposes of Title IV of
     ERISA is a member of the controlled group of any Loan Party, or under
     common control with any Loan Party, within the meaning of Section 414 of
     the Internal Revenue Code or Section 4001 of ERISA.

          "Eurocurrency Liabilities" has the meaning specified in Regulation D
     of the Board of Governors of the Federal Reserve System, as in effect from
     time to time.

          "Eurodollar Lending Office" means, with respect to any Lender, the
     office of such Lender specified as its "Eurodollar Lending Office" opposite
     its name on Schedule I hereto or in the Assignment and Acceptance pursuant
     to which it became a Lender (or, if no such office is
<PAGE>

                                      11

     specified, its Domestic Lending Office), or such other office of such
     Lender as such Lender may from time to time specify to the Parent and the
     Administrative Agent.

          "Eurodollar Rate" means, for any Interest Period for all Eurodollar
     Rate Advances comprising part of the same Committed Borrowing, an interest
     rate per annum equal to the rate per annum (rounded upwards, if not an
     integral multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%)
     appearing on Dow Jones Markets (Telerate) Page 3750 (or any successor page)
     as the London interbank offered rate for deposits in U.S. dollars at 11:00
     A.M. (London time) two Business Days before the first day of such Interest
     Period for a period equal to such Interest Period (provided that, if for
     any reason such rate is not available, the term "Eurodollar Rate" shall
     mean, for any Interest Period for all Eurodollar Rate Advances comprising
     part of the same Committed Borrowing, the rate per annum (rounded upwards,
     if not an integral multiple of 1/32 or 1/100 of 1% to the nearest 1/100 of
     1%) appearing on Reuters Screen LIBO Page as the London interbank offered
     rate for deposits in Dollars at approximately 11:00 A.M. (London time) two
     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period; provided, however, if more than one
     rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
     the arithmetic mean of all such rates).

          "Eurodollar Rate Advance" means an Advance that bears interest as
     provided in Section 2.08(a)(ii).

          "Eurodollar Rate Reserve Percentage" for any Interest Period for all
     Eurodollar Rate Advances comprising part of the same Committed Borrowing
     means the reserve percentage applicable two Business Days before the first
     day of such Interest Period under regulations issued from time to time by
     the Board of Governors of the Federal Reserve System (or any successor) for
     determining the maximum reserve requirement (including, without limitation,
     any emergency, supplemental or other marginal reserve requirement) for a
     member bank of the Federal Reserve System in New York City with respect to
     liabilities or assets consisting of or including Eurocurrency Liabilities
     (or with respect to any other category of liabilities that includes
     deposits by reference to which the interest rate on Eurodollar Rate
     Advances is determined) having a term equal to such Interest Period.

          "Events of Default" has the meaning specified in Section 6.01.

          "Existing Credit Agreement" means the Five-Year Credit Agreement dated
     as of December 11, 1997 among the Parent, the guarantors listed therein,
     the lenders party thereto, J.P. Morgan Securities Inc. and Mellon Bank,
     N.A., as co-syndication agents, MGT as administrative agent, as amended,
     modified or otherwise supplemented from time to time

          "Federal Funds Rate" means, for any period, a fluctuating interest
     rate per annum equal for each day during such period to the weighted
     average of the rates on overnight Federal funds transactions with members
     of the Federal Reserve System arranged by Federal funds brokers, as
     published for such day (or, if such day is not a Business Day, for the next
     preceding Business Day) by the Federal Reserve Bank of New York, or, if
     such rate is not so published for any day

<PAGE>

                                      12

     that is a Business Day, the average of the quotations for such day for such
     transactions received by the Administrative Agent from three Federal funds
     brokers of recognized standing selected by it.

          "Fee Letter" means the fee letter dated January 11, 1999 among the
     Parent, the Arrangers, the Administrative Agent and Merrill Lynch, as
     amended.

          "Fiscal Year" means a fiscal year of the Parent and its Consolidated
     Subsidiaries ending on September 30 in any calendar year.

          "Fixed Rate Advances" has the meaning specified in Section 2.03(a)(i).

          "Foreign Government Scheme or Arrangement" has the meaning specified
     in Section 4.01 (n) (iv).

          "Foreign Plan" has the meaning specified in Section 4.01 (n) (iv).

          "GAAP" has the meaning specified in Section 1.03.

          "Granting Lender" has the meaning specified in Section 9.07(l).

          "Guaranty" means the undertaking by each of the Borrowers under
     Article VII.

          "Hazardous Materials" means (a) petroleum or petroleum products, by-
     products or breakdown products, radioactive materials, asbestos-containing
     materials, polychlorinated biphenyls and radon gas and (b) any other
     chemicals, materials or substances designated, classified or regulated as
     hazardous or toxic or as a pollutant or contaminant under any Environmental
     Law.

          "Hedge Agreements" means interest rate swap, cap or collar agreements,
     interest rate future or option contracts, currency swap agreements,
     currency future or option contracts and other hedging agreements.

          "Indemnified Party" has the meaning specified in Section 9.04(b).

          "Information Memorandum" means the information memorandum dated
     February, 1999 used by the Arrangers in connection with the syndication of
     the Commitments.

          "Initial Extension of Credit" means the earlier to occur of the
     initial Committed Borrowing and the initial issuance of a Letter of Credit
     hereunder.

          "Initial Lenders" has the meaning specified in the recital of parties
     to this Agreement.

          "Interest Period" means, for each Eurodollar Rate Advance comprising
     part of the same Committed Borrowing and each LIBO Rate Advance comprising
     part of the same Competitive

<PAGE>

                                      13

     Bid Borrowing, the period commencing on the date of such Eurodollar Rate
     Advance or LIBO Rate Advance or the date of the Conversion of any Base Rate
     Advance into such Eurodollar Rate Advance, and ending on the last day of
     the period selected by the Borrower requesting such Borrowing or Conversion
     pursuant to the provisions below and, thereafter, each subsequent period
     commencing on the last day of the immediately preceding Interest Period and
     ending on the last day of the period selected by the applicable Borrower
     pursuant to the provisions below. The duration of each such Interest Period
     shall be one or two weeks or one, two, three or six months, as the Borrower
     requesting such Borrowing or Conversion may, upon notice received by the
     Administrative Agent not later than 11:00 A.M. (New York City time) on the
     third Business Day prior to the first day of such Interest Period, select;
     provided, however, that:

               (a) such Borrower may not select any Interest Period with respect
     to any Eurodollar Rate Advance that ends after the Termination Date;

               (b) Interest Periods commencing on the same date for Eurodollar
     Rate Advances comprising part of the same Committed Borrowing or for LIBO
     Rate Advances comprising part of the same Competitive Bid Borrowing shall
     be of the same duration;

               (c) whenever the last day of any Interest Period would otherwise
     occur on a day other than a Business Day, the last day of such Interest
     Period shall be extended to occur on the next succeeding Business Day,
     provided, however, that, if such extension would cause the last day of such
     Interest Period to occur in the next following calendar month, the last day
     of such Interest Period shall occur on the next preceding Business Day; and

               (d) whenever the first day of any Interest Period (other than a
     one or two week Interest Period) occurs on a day of an initial calendar
     month for which there is no numerically corresponding day in the calendar
     month that succeeds such initial calendar month by the number of months
     equal to the number of months in such Interest Period, such Interest Period
     shall end on the last Business Day of such succeeding calendar month.

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

          "Investment" in any Person means any loan or advance to such Person,
     any purchase or other acquisition of any Equity Interests or Debt or the
     assets comprising a division or business unit or a substantial part or all
     of the business of such Person, any capital contribution to such Person or
     any other direct or indirect investment in such Person, including, without
     limitation, any acquisition by way of a merger or consolidation and any
     arrangement pursuant to which the investor incurs Debt of the types
     referred to in clause (h) or (i) of the definition of "Debt" in respect of
     such Person; provided, however, that any purchase by any Loan Party or any
     Subsidiary of any catastrophe-linked instruments which are (x) issued for
     the purpose of transferring traditional reinsurance risk to the capital
     markets and (y) purchased by such Loan

<PAGE>

                                      14

     Party or Subsidiary in accordance with its customary reinsurance
     underwriting procedures, or the entry by any Loan Party or any Subsidiary
     into swap instruments relating to such instruments in accordance with such
     procedures, shall be deemed to be the entry by such Person into a
     reinsurance contract and shall not be deemed to be an Investment by such
     Person.

          "Issuing Bank" means Mellon Bank, N.A. and any "New Issuing Bank"
     appointed in accordance with Section 2.20.

          "J.P. Morgan" has the meaning specified in the recital of parties to
     this Agreement.

          "Judgment Currency" has the meaning specified in Section 2.21(g).

          "LC Participation Obligations" has the meaning specified in Section
     2.19(a).

          "L/C Related Documents" has the meaning specified in Section
     2.05(b)(ii).

          "Lead Arranger" has the meaning specified in the recital of parties to
     this Agreement.

          "Lenders" means the Initial Lenders and each Person that shall become
     a Lender hereunder pursuant to Section 9.07(a), (b) and (c) for so long as
     such Initial Lender or Person, as the case may be, shall be a party to this
     Agreement and, solely when used in reference to a Competitive Bid Advance,
     a Competitive Bid Borrowing, a Competitive Bid Note, or a related term,
     each Designated Bidder.

          "Letter of Credit Advance" has the meaning specified in Section
     2.04(f).

          "Letter of Credit Agreement" has the meaning specified in Section
     2.04(a).

          "Letter of Credit Business Day" means a day of the year on which banks
     are not required or authorized by law to close in New York City and on
     which banks are not required or authorized by law to close in Pittsburgh,
     Pennsylvania (or, if Mellon Bank, N.A. is no longer the Issuing Bank, in
     the city in which the principal letter of credit operations of the Issuing
     Bank are located).

          "Letter of Credit Commitment" means at any time the lesser of (a)
     $250,000,000(or such other amount as may be agreed in writing among the
     Borrowers, the Agents and the Issuing Bank) and (b) the aggregate amount of
     the WC Commitments.

          "Letters of Credit" has the meaning specified in Section 2.01(b).

          "Letter of Credit Exposure" at any time means the sum at such time of
     (a) the aggregate outstanding amount of Letter of Credit Advances, (b) the
     aggregate Available Amounts of all outstanding Letters of Credit and (c)
     the aggregate Available Amounts of all Letters of Credit which have been
     requested by a Borrower to be issued hereunder but have not yet been so
     issued.

<PAGE>

                                      15

          "Letter of Credit Participating Interest" has the meaning specified in
     Section 2.04(d).

          "Letter of Credit Participating Interest Commitment" has the meaning
     specified in Section 2.04(d).

          "LIBO Rate" means, for any Interest Period for all LIBO Rate Advances
     comprising part of the same Competitive Bid Borrowing, an interest rate per
     annum equal to the rate per annum (rounded upwards, if not an integral
     multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%) appearing on
     Dow Jones Markets (Telerate) Page 3750 (or any successor page) as the
     London interbank offered rate for deposits in U.S. dollars at 11:00 A.M.
     (London time) two Business Days before the first day of such Interest
     Period for a period equal to such Interest Period (provided that, if for
     any reason such rate is not available, the term "LIBO Rate" shall mean for
     any Interest Period for all LIBO Rate Advances comprising part of the same
     Competitive Bid Borrowing, the rate per annum (rounded upwards, if not an
     integral multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%)
     appearing on Reuters Screen LIBO Page as the London interbank offered rate
     for deposits in Dollars at approximately 11:00 A.M. (London time) two
     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period; provided, however, if more than one
     rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
     the arithmetic mean of all such rates).

          "LIBO Rate Advances" has the meaning specified in Section 2.03(a)(i).

          "Lien" means any lien, security interest or other charge or
     encumbrance of any kind, or any other type of preferential arrangement,
     including, without limitation, the lien or retained security title of a
     conditional vendor and any easement, right of way or other encumbrance on
     title to real property.

          "Loan Documents" means (i) this Agreement, (ii) the Notes, (iii) the
     Fee Letter and (iv) each Letter of Credit Agreement, in each case as
     amended.

          "Loan Parties" means the Borrowers.

          "Mandatorily Convertible Preferred Securities" means units comprised
     of Preferred Securities and a contract for the sale of ordinary shares of
     the Parent (including "Feline Prides" or any substantially similar
     securities).

          "Margin Stock" has the meaning specified in Regulation U.

          "Material Adverse Change" means any material adverse change in the
     business, financial condition, operations or properties of the Parent and
     its Subsidiaries, taken as a whole.

          "Material Adverse Effect" means a material adverse effect on (a) the
     business, condition, operations or properties of the Parent and its
     Subsidiaries, taken as a whole, (b) the

<PAGE>

                                      16

     rights and remedies of any Agent or any Lender under any Loan Document or
     (c) the ability of the Loan Parties, taken as a whole, to perform their
     obligations under the Loan Documents.

          "Material Financial Obligation" means a principal amount of Debt
     and/or payment obligations in respect of any Hedge Agreement of the Parent
     and/or one or more of its Subsidiaries arising in one or more related or
     unrelated transactions exceeding in the aggregate $25,000,000.

          "Merrill Lynch" means Merrill Lynch Capital Corporation.

          "MGT" has the meaning specified in the recital of parties to this
     Agreement.

          "ML&Co." has the meaning specified in the recital of parties to this
     Agreement.

          "Moody's" means Moody's Investors Service, Inc.

          "Multiemployer Plan" means a multiemployer plan, as defined in Section
     4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is
     making or accruing an obligation to make contributions, or has within any
     of the preceding five plan years made or accrued an obligation to make
     contributions.

          "Net Cash Proceeds" means, with respect to any sale, lease, transfer
     or other disposition of any asset or the incurrence or issuance of any Debt
     or the sale or issuance of any Equity Interests or Preferred Securities by
     any Person, the aggregate amount of cash received from time to time
     (whether as initial consideration or through payment or disposition of
     deferred consideration) by or on behalf of such Person in connection with
     such transaction after deducting therefrom only (without duplication) (a)
     reasonable and customary brokerage commissions, underwriting fees and
     discounts, legal fees, finder's fees and other similar fees and
     commissions, (b) the amount of taxes payable in connection with or as a
     result of such transaction and (c) the amount of any Debt secured by a Lien
     on such asset that, by the terms of the agreement or instrument governing
     such Debt, is required to be repaid upon such disposition, in each case to
     the extent, but only to the extent, that the amounts so deducted are, at
     the time of receipt of such cash, actually paid to a Person that is not an
     Affiliate of such Person or any Loan Party or any Affiliate of any Loan
     Party and are properly attributable to such transaction or to the asset
     that is the subject thereof; provided, however, that in the case of taxes
     that are deductible under clause (b) above but for the fact that, at the
     time of receipt of such cash, such taxes have not been actually paid or are
     not then payable, such Loan Party or such Subsidiary may deduct an amount
     (the "Reserved Amount") equal to the amount reserved in accordance with
     GAAP for such Loan Party's or such Subsidiary's reasonable estimate of such
     taxes, other than taxes for which such Loan Party or such Subsidiary is
     indemnified; provided further that, at the time such taxes are paid, an
     amount equal to the amount, if any, by which the Reserved Amount for such
     taxes exceeds the amount of such taxes actually paid shall constitute "Net
     Cash Proceeds" of the type for which such taxes were reserved for all
     purposes hereunder; provided further that, prior to the date on which the
     Public Debt Rating of the Parent falls to BBB/Baa2 or below, Net Cash
     Proceeds from the sale, lease, transfer or other disposition of any asset
     or Equity Interests shall

<PAGE>

                                      17

     not include any amount of cash proceeds received in connection with such
     transaction to the extent such cash proceeds are reinvested in the same or
     related line of business as the business of the Parent.

          "Non-Dollar Letters of Credit" has the meaning specified in Section
     2.21(a).

          "Note" means a Committed Note or a Competitive Bid Note.

          "Notice of Committed Borrowing" has the meaning specified in Section
     2.02(a).

          "Notice of Competitive Bid Borrowing" has the meaning specified in
     Section 2.03(a).

          "OECD" means the Organization for Economic Cooperation and
     Development.

          "Other Taxes" has the meaning specified in Section 2.13(b).

          "Overnight Rate" has the meaning specified in Section 2.21(h).

          "Parent" has the meaning specified in the recital of parties to this
     Agreement.

          "PBGC" means the Pension Benefit Guaranty Corporation (or any
     successor).

          "Pension Plan" means a "pension plan", as such term is defined in
     section 3(2) of ERISA, which is subject to title IV of ERISA (other than
     any "multiemployer plan" as such term is defined in section 4001(a)(3) of
     ERISA), and to which any Loan Party or any ERISA Affiliate may have any
     liability, including any liability by reason of having been a substantial
     employer within the meaning of section 4063 of ERISA at any time during the
     preceding five years, or by reason of being deemed to be a contributing
     sponsor under section 4069 of ERISA.

          "Permitted Liens" means such of the following as to which no
     enforcement, collection, execution, levy or foreclosure proceeding shall
     have been commenced or which are being contested in good faith by
     appropriate proceedings: (a) Liens for taxes, assessments and governmental
     charges or levies not yet due and payable; (b) Liens imposed by law, such
     as materialmen's, mechanics', carriers', workmen's and repairmen's Liens
     and other similar Liens arising in the ordinary course of business securing
     obligations that are not overdue for a period of more than 90 days; (c)
     pledges or deposits to secure obligations under workers' compensation laws
     or similar legislation or to secure public or statutory obligations; and
     (d) easements, rights of way and other encumbrances on title to real
     property that do not render title to the property encumbered thereby
     unmarketable or materially adversely affect the use of such property for
     its present purposes.

          "Person" means an individual, partnership, corporation (including a
     business trust), limited liability company, joint stock company, trust,
     unincorporated association, joint venture or other entity, or a government
     or any political subdivision or agency thereof.

<PAGE>

                                      18

          "Pre-Commitment Information" means all of the written information in
     the Information Memorandum provided by or on behalf of the Parent to the
     Administrative Agent and the Lenders (other than any information provided
     by ML&Co. and its Affiliates).

          "Preferred Interests" means, with respect to any Person, Equity
     Interests issued by such Person that are entitled to a preference or
     priority over any other Equity Interests issued by such Person upon any
     distribution of such Person's property and assets, whether by dividend or
     upon liquidation.

          "Preferred Securities" means (i) preferred securities issued by the
     Special Purpose Trust which shall provide, among other things, that
     dividends shall be payable only out of proceeds of interest payments on the
     Debentures, or (ii) other instruments that may be treated in whole or in
     part as equity for rating agency purposes while being treated as debt for
     tax purposes.

          "Pro Rata Share" of any amount means, with respect to any Lender at
     any time, the product of such amount times a fraction the numerator of
     which is the amount of such Lender's WC Commitment at such time (or, if the
     WC Commitments shall have been terminated pursuant to Section 2.06 or 6.01,
     such Lender's WC Commitment as in effect immediately prior to such
     termination) and the denominator of which is the Committed Facility at such
     time (or, if the WC Commitments shall have been terminated pursuant to
     Section 2.05 or 6.01, the Committed Facility as in effect immediately prior
     to such termination).

          "Public Debt Rating" means, as of any date, the lower rating that has
     been most recently announced by either S&P or Moody's, as the case may be,
     for any class of non-credit enhanced long-term senior unsecured debt issued
     by the Parent. For purposes of the foregoing, (a) if only one of S&P and
     Moody's shall have in effect a Public Debt Rating, the Applicable Margin or
     the Applicable Facility Fee Percentage, as the case may be, shall be
     determined by reference to the available rating; (b) if (i) from and after
     January 11, 1999, the Parent and its Subsidiaries shall not have sold or
     issued Equity Interests and/or equity linked securities or sold, leased,
     transferred or otherwise disposed of (including through liquidation)
     material assets generating, in the aggregate, $500,000,000 of Net Cash
     Proceeds which are used to permanently reduce the Borrowers' 364-Day
     Revolving Credit Facility and the ACE INA 364-Day Revolving Credit Facility
     in accordance with their respective terms and (ii) neither S&P nor Moody's
     shall have in effect a Public Debt Rating, the Applicable Margin and the
     Applicable Facility Fee Percentage will be set in accordance with Level 3
     under the definition of "Applicable Margin" and "Applicable Facility Fee
     Percentage" as the case may be; (c) if neither S&P nor Moody's shall have
     in effect a Public Debt Rating (other than under the circumstances
     described in clause (b) above), the Applicable Margin and the Applicable
     Facility Fee Percentage shall be set in accordance with the level which is
     three rating levels below the Parent's S&P financial strength rating at
     such time, provided that, in the event that the Parent's S&P financial
     strength rating is affirmed at (i) A+, the applicable Level will be Level 2
     and (ii) A+ and on credit watch/review with negative implications, the
     applicable Level will be Level 3; (d) if any rating established by S&P or
     Moody's shall be changed, such change shall be effective as of the date on
     which such change is first announced publicly by the rating agency making
     such change; and (e) if S&P or Moody's shall change the basis on which
     ratings are established, each reference to the Public

<PAGE>

                                      19

     Debt Rating announced by S&P or Moody's, as the case may be, shall refer to
     the then equivalent rating by S&P or Moody's, as the case may be.

          "Purchase Agreement" means the Purchase Agreement dated as of January
     11, 1999 among the Seller, Cigna Holdings, Inc. and the Parent.

          "Redeemable" means, with respect to any Equity Interest, any Debt or
     any other right or obligation, any such Equity Interest, Debt, right or
     obligation that (a) the issuer has undertaken to redeem at a fixed or
     determinable date or dates, whether by operation of a sinking fund or
     otherwise, or upon the occurrence of a condition not solely within the
     control of the issuer or (b) is redeemable at the option of the holder.

          "Register" has the meaning specified in Section 9.07(d).

          "Regulation U" means Regulation U of the Board of Governors of the
     Federal Reserve System, as in effect from time to time.

          "Required Lenders" means, at any time, Lenders owed or holding at
     least a majority in interest of the sum of (a) aggregate principal amount
     of the Committed Advances outstanding at such time and (b) the aggregate
     Available Amount of all Letters of Credit outstanding at such time, or, if
     no such principal amount and no Letters of Credit are outstanding at such
     time, Lenders holding at least a majority in interest of the aggregate of
     the WC Commitments; provided, however, that if any Lender shall be a
     Defaulting Lender at such time, there shall be excluded from the
     determination of Required Lenders at such time (A) the aggregate principal
     amount of the Committed Advances owing to such Lender (in its capacity as a
     Lender) and outstanding at such time, (B) such Lender's Pro Rata Share of
     the aggregate Available Amount of all Letters of Credit outstanding at such
     time and (C) the Unused WC Commitment of such Lender at such time.

          "Responsible Officer" means the Chairman, Chief Executive Officer,
     President, Chief Financial Officer, Treasurer or Chief Investment Officer
     of the Parent.

          "S&P" means Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

          "Seller" means Cigna Corporation.

          "Solvent" and "Solvency" mean, with respect to any Person on a
     particular date, that on such date (a) 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, (b) the present
     fair salable 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, (c) such Person does not intend
     to, and does not believe that it will, incur debts or liabilities beyond
     such Person's ability to pay such debts and liabilities as they mature and
     (d) such Person is not engaged in business or a transaction, and is not
     about to engage in business or a transaction, for

<PAGE>

                                      20

     which such Person's property would constitute an unreasonably small
     capital. The amount of contingent liabilities at any time shall be computed
     as the amount that, in the 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.

          "SPC" has the meaning specified in Section 9.07(l).

          "Special Purpose Trust" means a special purpose business trust
     established by the Parent or ACE INA of which the Parent or ACE INA will
     hold all the common securities, which will be the issuer of the Preferred
     Securities, and which will loan to the Parent or ACE INA (such loan being
     evidenced by the Debentures) the net proceeds of the issuance and sale of
     the Preferred Securities.

          "Subsidiary" of any Person means any corporation, partnership, joint
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of (a) the issued and outstanding capital stock having
     ordinary voting power to elect a majority of the Board of Directors of such
     corporation (irrespective of whether at the time capital stock of any other
     class or classes of such corporation shall or might have voting power upon
     the occurrence of any contingency), (b) the interest in the capital or
     profits of such partnership, joint venture or limited liability company or
     (c) the beneficial interest in such trust or estate is at the time directly
     or indirectly owned or controlled by such Person, by such Person and one or
     more of its other Subsidiaries or by one or more of such Person's other
     Subsidiaries.

          "Syndication Agent" has the meaning specified in the recital of
     parties to this Agreement.

          "Taxes" has the meaning specified in Section 2.13(a).

          "Tempest" has the meaning specified in the recital of parties to this
     Agreement.

          "Termination Date" means the earlier of June 10, 2004 and the date of
     termination in whole of the WC Commitments and the Letter of Credit
     Commitment.

          "Total Capitalization" means, at any time, an amount (without
     duplication) equal to (i) the then outstanding Consolidated Debt of the
     Parent and its Subsidiaries plus (ii) Consolidated stockholders equity of
     the Parent and its Subsidiaries plus (without duplication) (iii) the then
     issued and outstanding amount of Preferred Securities and (without
     duplication) Debentures.

          "Type" refers to the distinction between Advances bearing interest at
     the Base Rate and Advances bearing interest at the Eurodollar Rate.

          "Unused WC Commitment" means, with respect to any Lender at any time,
     (a) such Lender's WC Commitment at such time minus (b) the sum of (i) the
     aggregate principal amount of all Committed Advances made by such Lender
     hereunder plus (ii) such Lender's Pro Rata Share of (A) the aggregate
     Available Amount of all Letters of Credit hereunder and (B) the

<PAGE>

                                      21

     aggregate principal amount of all Letter of Credit Advances made by the
     Issuing Bank pursuant to Section 2.04(c) and outstanding at such time
     (whether held by the Issuing Bank or the Lenders) and (C) the aggregate
     principal amount of all Competitive Bid Advances hereunder.

          "Voting Interests" means shares of capital stock issued by a
     corporation, or equivalent Equity Interests in any other 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 if the right so to vote has been suspended
     by the happening of such a contingency.

          "WC Commitment" means, with respect to any Lender at any time, the
     amount set forth opposite such Lender's name on Schedule I hereto under the
     caption "WC Commitment" or, if such Lender has entered into one or more
     Assignment and Acceptances, set forth for such Lender in the Register
     maintained by the Administrative Agent pursuant to Section 9.07(d) as such
     Lender's "WC Commitment", as such amount may be reduced at or prior to such
     time pursuant to Section 2.06.

          "Welfare Plan" means a welfare plan, as defined in Section 3(1) of
     ERISA, that is maintained for employees of any Loan Party or in respect of
     which any Loan Party could have liability.

          "Withdrawal Liability" has the meaning specified in Part I of Subtitle
     E of Title IV of ERISA.

          SECTION 1.02. Computation of Time Periods; Other Definitional
Provisions. In this Agreement and the other Loan Documents in the computation of
periods of time from a specified date to a later specified date, the word "from"
means "from and including" and the words "to" and "until" each mean "to but
excluding". References in the Loan Documents to any agreement or contract "as
amended" shall mean and be a reference to such agreement or contract as amended,
amended and restated, supplemented or otherwise modified from time to time in
accordance with its terms.

          SECTION 1.03. Accounting Terms and Determinations. Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with
generally accepted accounting principles as in effect from time to time
("GAAP"), applied on a basis consistent (except for changes concurred in by the
Parent's independent public accountants) with the most recent audited
consolidated financial statements of the Parent and its Subsidiaries delivered
to the Lenders; provided that, if the Parent notifies the Administrative Agent
that the Parent wishes to amend any covenant in Article V to eliminate the
effect of any change in generally accepted accounting principles on the
operation of such covenant (or if the Administrative Agent notifies the Parent
that the Required Lenders wish to amend Article V for such purpose), then the
Parent's compliance with such covenant shall be determined on the basis of
generally accepted accounting principles in effect immediately before the
relevant change in generally accepted accounting principles became effective
(and, concurrently with the delivery of any financial statements required to be
delivered hereunder, the Parent shall provide a statement of reconciliation
conforming such financial information

<PAGE>

                                      22

to such generally accepted accounting principles as previously in effect), until
either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Parent and the Required Lenders.

                                  ARTICLE II

                       AMOUNTS AND TERMS OF THE ADVANCES
                           AND THE LETTERS OF CREDIT

          SECTION 2.01. The Committed Advances and the Letters of Credit. (a)
The Committed Advances. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make advances (each a "Committed Advance")
to any Borrower from time to time on any Business Day during the period from the
date hereof until the Termination Date in an amount for each such Committed
Advance not to exceed such Lender's Unused WC Commitment at such time. Each
Committed Borrowing shall be in an aggregate amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof and shall consist of Committed
Advances made simultaneously by the Lenders ratably according to their WC
Commitments. Within the limits of each Lender's Unused WC Commitment in effect
from time to time, the Borrower may borrow under this Section 2.01, prepay
pursuant to Section 2.07 and reborrow under this Section 2.01.

          (b) Letters of Credit. The Issuing Bank agrees, on the terms and
subject to the conditions herein set forth, to issue letters of credit (the
"Letters of Credit") for the account of any Borrower on any Letter of Credit
Business Day from time to time during the period from the date hereof until May
1, 2004. The Issuing Bank shall have no obligation to issue, and no Borrower
will request the issuance of, any Letter of Credit hereunder if, at the time of
issuance of such Letter of Credit and after giving effect thereto, the Letter of
Credit Exposure would exceed the Issuing Bank's Letter of Credit Commitment. The
Issuing Bank shall have no obligation to issue, and no Borrower shall request
the issuance of, any Letter of Credit hereunder if the Available Amount of such
Letter of Credit exceeds, immediately before the time of such issuance, an
amount equal to the total Unused WC Commitments of the Lenders at such time (as
such amount shall be advised by the Administrative Agent to the Issuing Bank as
contemplated by Section 2.04). The Issuing Bank shall have no obligation to
issue, and no Borrower shall request the issuance of, any Letter of Credit
except within the following limitations: (i) each Letter of Credit shall be
denominated in U.S. dollars, (ii) each Letter of Credit shall be payable only
against sight drafts (and not time drafts) and (iii) no Letter of Credit shall
have an expiration date (including all rights of the applicable Borrower or the
beneficiary to require renewal) later than the earlier of June 1, 2004 and one
year after the date of issuance thereof, but a Letter of Credit may by its terms
be automatically renewable annually unless the Issuing Bank notifies the
beneficiary thereof of its election not to renew such Letter of Credit; provided
that the terms of each Letter of Credit that is automatically renewable annually
shall not permit the expiration date (after giving effect to any renewal) of
such Letter of Credit in any event to be extended to a date later than June 1,
2004. The Issuing Bank shall have no obligation to issue any letter of credit
which is unsatisfactory in form, substance or beneficiary to the Issuing Bank in
the exercise of its reasonable judgment consistent with its customary practice.

<PAGE>

                                      23

          SECTION 2.02. Making the Committed Advances. (a) Except as otherwise
provided in Section 2.03, each Committed Borrowing shall be made on notice,
given not later than 11:00 A.M. (New York City time) on the third Business Day
prior to the date of the proposed Committed Borrowing in the case of a Committed
Borrowing consisting of Eurodollar Rate Advances, or the first Business Day
prior to the date of the proposed Committed Borrowing in the case of a Committed
Borrowing consisting of Base Rate Advances, by any Borrower to the
Administrative Agent, which shall give to each Lender prompt notice thereof by
telecopier. Each such notice of a Committed Borrowing (a "Notice of Committed
Borrowing") shall be by telephone, confirmed immediately in writing, or
telecopier, in substantially the form of Exhibit B-1 hereto, specifying therein
the requested (i) date of such Committed Borrowing, (ii) Type of Advances
comprising such Committed Borrowing, (iii) aggregate amount of such Committed
Borrowing and (iv) in the case of a Committed Borrowing consisting of Eurodollar
Rate Advances, initial Interest Period for such Committed Advances. Each Lender
shall, before 11:00 A.M. (New York City time) on the date of such Committed
Borrowing, make available for the account of its Applicable Lending Office to
the Administrative Agent at the Administrative Agent's Account, in same day
funds, such Lender's ratable portion of such Committed Borrowing in accordance
with the respective WC Commitments of such Lender and the other Lenders. After
the Administrative Agent's receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent will
make such funds available to the Borrower requesting such Committed Borrowing by
crediting the applicable Borrower's Account.

          (b) Anything in subsection (a) above to the contrary notwithstanding,
(i) no Borrower may select Eurodollar Rate Advances if the obligation of the
Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to
Section 2.10 or 2.11 and (ii) the Committed Advances may not be outstanding as
part of more than ten(10) separate Committed Borrowings.

          (c) Each Notice of Committed Borrowing shall be irrevocable and
binding on the Borrower that requested such Committed Borrowing. In the case of
any Committed Borrowing that the related Notice of Committed Borrowing specifies
is to be comprised of Eurodollar Rate Advances, the Borrower that requested such
Committed Borrowing shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or
before the date specified in such Notice of Committed Borrowing for such
Committed Borrowing the applicable conditions set forth in Article III,
including, without limitation, any loss (excluding loss of anticipated profits),
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund the Committed Advance to
be made by such Lender as part of such Committed Borrowing when such Committed
Advance, as a result of such failure, is not made on such date.

          (d) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Committed Borrowing that such Lender will not
make available to the Administrative Agent such Lender's ratable portion of such
Committed Borrowing, the Administrative Agent may assume that such Lender has
made such portion available to the Administrative Agent on the date of such
Committed Borrowing in accordance with subsection (a) of this Section 2.02 and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower requesting such Committed Borrowing on such date a corresponding
amount. If and to the extent that such Lender shall not have so made such
ratable portion available to the Administrative Agent, such Lender and such
Borrower severally agree to repay or pay to the Administrative Agent forthwith
on demand such

<PAGE>

                                      24

corresponding amount and to pay interest thereon, for each day from the date
such amount is made available to such Borrower until the date such amount is
repaid or paid to the Administrative Agent, at (i) in the case of such Borrower,
the interest rate applicable at such time under Section 2.08 to Advances
comprising such Committed Borrowing and (ii) in the case of such Lender, the
Federal Funds Rate. If such Lender shall pay to the Administrative Agent such
corresponding amount, such amount so paid shall constitute such Lender's
Committed Advance as part of such Borrowing for all purposes.

          (e) The failure of any Lender to make the Committed Advance to be made
by it as part of any Committed Borrowing shall not relieve any other Lender of
its obligation, if any, hereunder to make its Committed Advance on the date of
such Committed Borrowing, but no Lender shall be responsible for the failure of
any other Lender to make the Committed Advance to be made by such other Lender
on the date of any Committed Borrowing.

          SECTION 2.03. The Competitive Bid Advances. (a) Each Lender severally
agrees that any Borrower may make Competitive Bid Borrowings under this Section
2.03 from time to time on any Business Day during the period from the date
hereof until the date occurring 7 days prior to the Termination Date in the
manner set forth below; provided that, following the making of each Competitive
Bid Borrowing, the aggregate amount of the Advances then outstanding plus the
then Available Amount of all Letters of Credit shall not exceed the aggregate
amount of the WC Commitments of the Lenders.

          (i) Any Borrower may request a Competitive Bid Borrowing under this
     Section 2.03 by delivering to the Administrative Agent, by telecopier, a
     notice of a Competitive Bid Borrowing (a "Notice of Competitive Bid
     Borrowing"), in substantially the form of Exhibit B-2 hereto, specifying
     therein the requested (v) date of such proposed Competitive Bid Borrowing,
     (w) aggregate amount of such proposed Competitive Bid Borrowing, (x) in the
     case of a Competitive Bid Borrowing consisting of LIBO Rate Advances,
     Interest Period, or in the case of a Competitive Bid Borrowing consisting
     of Fixed Rate Advances, maturity date for repayment of each Fixed Rate
     Advance to be made as part of such Competitive Bid Borrowing (which
     maturity date may not be earlier than the date occurring 7 days after the
     date of such Competitive Bid Borrowing or later than the earlier of (I) 180
     days after the date of such Competitive Bid Borrowing and (II) the
     Termination Date), (y) interest payment date or dates relating thereto, and
     (z) other terms (if any) to be applicable to such Competitive Bid
     Borrowing, not later than 10:00 A.M. (New York City time) (A) at least one
     Business Day prior to the date of the proposed Competitive Bid Borrowing,
     if such Borrower shall specify in the Notice of Competitive Bid Borrowing
     that the rates of interest to be offered by the Lenders shall be fixed
     rates per annum (the Advances comprising any such Competitive Bid Borrowing
     being referred to herein as "Fixed Rate Advances") and (B) at least four
     Business Days prior to the date of the proposed Competitive Bid Borrowing,
     if such Borrower shall instead specify in the Notice of Competitive Bid
     Borrowing that the rates of interest to be offered by the Lenders are to be
     based on a margin above or below the LIBO Rate (the Advances comprising
     such Competitive Bid Borrowing being referred to herein as "LIBO Rate
     Advances"). Each Notice of Competitive Bid Borrowing shall be irrevocable
     and binding on such Borrower. The Administrative Agent shall in turn
     promptly notify each Lender of each request for a Competitive Bid Borrowing
     received

<PAGE>

                                      25

     by it from such Borrower by sending such Lender a copy of the related
     Notice of Competitive Bid Borrowing.

          (ii) Each Lender may, if, in its sole discretion, it elects to do so,
     irrevocably offer to make one or more Competitive Bid Advances to the
     Borrower requesting the Competitive Bid Advances as part of such proposed
     Competitive Bid Borrowing at a rate or rates of interest specified by such
     Lender in its sole discretion, by notifying the Administrative Agent (which
     shall give prompt notice thereof to the Borrower requesting the Competitive
     Bid Borrowing), before 9:30 A.M. (New York City time) on the date of such
     proposed Competitive Bid Borrowing, in the case of a Competitive Bid
     Borrowing consisting of Fixed Rate Advances and before 10:00 A.M. (New York
     City time) three Business Days before the date of such proposed Competitive
     Bid Borrowing, in the case of a Competitive Bid Borrowing consisting of
     LIBO Rate Advances, of the minimum amount and maximum amount of each
     Competitive Bid Advance which such Lender would be willing to make as part
     of such proposed Competitive Bid Borrowing (which amounts may, subject to
     the proviso to the first sentence of this Section 2.03(a), exceed such
     Lender's WC Commitment, if any), the rate or rates of interest therefor and
     such Lender's Applicable Lending Office with respect to such Competitive
     Bid Advance; provided that if the Administrative Agent in its capacity as a
     Lender shall, in its sole discretion, elect to make any such offer, it
     shall notify the Borrower requesting such Competitive Bid Borrowing of such
     offer at least 30 minutes before the time and on the date on which notice
     of such election is to be given to the Administrative Agent by the other
     Lenders. If any Lender shall elect not to make such an offer, such Lender
     shall so notify the Administrative Agent, before 10:00 A.M. (New York City
     time) on the date on which notice of such election is to be given to the
     Administrative Agent by the other Lenders, and such Lender shall not be
     obligated to, and shall not, make any Competitive Bid Advance as part of
     such Competitive Bid Borrowing; provided that the failure by any Lender to
     give such notice shall not cause such Lender to be obligated to make any
     Competitive Bid Advance as part of such proposed Competitive Bid Borrowing.

          (iii) The Borrower requesting any particular Competitive Bid Borrowing
     shall, in turn, before 10:30 A.M. (New York City time) on the date of such
     proposed Competitive Bid Borrowing, in the case of a Competitive Bid
     Borrowing consisting of Fixed Rate Advances and before 11:00 A.M. (New York
     City time) three Business Days before the date of such proposed Competitive
     Bid Borrowing, in the case of a Competitive Bid Borrowing consisting of
     LIBO Rate Advances, either:

               (x) cancel such Competitive Bid Borrowing by giving the
          Administrative Agent notice to that effect, or

               (y) accept one or more of the offers made by any Lender or
          Lenders pursuant to paragraph (ii) above, in its sole discretion, by
          giving notice to the Administrative Agent of the amount of each
          Competitive Bid Advance (which amount shall be equal to or greater
          than the minimum amount, and equal to or less than the maximum amount,
          notified to such Borrower by the Administrative Agent on behalf of
          such Lender for such Competitive Bid Advance pursuant to paragraph
          (ii) above) to be

<PAGE>

                                       26

          made by each such Lender as part of such Competitive Bid Borrowing,
          and reject any remaining offers made by Lenders pursuant to paragraph
          (ii) above by giving the Administrative Agent notice to that effect.
          The Borrower that requested such Competitive Bid Borrowing shall
          accept the offers made by any Lender or Lenders to make Competitive
          Bid Advances in order of the lowest to the highest rates of interest
          offered by such Lenders. If two or more Lenders have offered the same
          interest rate, the amount to be borrowed at such interest rate will be
          allocated among such Lenders in proportion to the amount that each
          such Lender offered at such interest rate.

          (iv) If the Borrower that requested any particular Competitive Bid
     Borrowing notifies the Administrative Agent that such Competitive Bid
     Borrowing is canceled pursuant to paragraph (iii)(x) above, the
     Administrative Agent shall give prompt notice thereof to the Lenders and
     such Competitive Bid Borrowing shall not be made.

          (v) If the Borrower that requested any particular Competitive Bid
     Borrowing accepts one or more of the offers made by any Lender or Lenders
     pursuant to paragraph (iii)(y) above, the Administrative Agent shall in
     turn promptly notify (A) each Lender that has made an offer as described in
     paragraph (ii) above, of the date and aggregate amount of such Competitive
     Bid Borrowing and whether or not any offer or offers made by such Lender
     pursuant to paragraph (ii) above have been accepted by such Borrower, (B)
     each Lender that is to make a Competitive Bid Advance as part of such
     Competitive Bid Borrowing, of the amount of each Competitive Bid Advance to
     be made by such Lender as part of such Competitive Bid Borrowing, and (C)
     each Lender that is to make a Competitive Bid Advance as part of such
     Competitive Bid Borrowing, upon receipt, that the Administrative Agent has
     received forms of documents appearing to fulfill the applicable conditions
     set forth in Article III. Each Lender that is to make a Competitive Bid
     Advance as part of such Competitive Bid Borrowing shall, before 12:00 noon
     (New York City time) on the date of such Competitive Bid Borrowing
     specified in the notice received from the Administrative Agent pursuant to
     clause (A) of the preceding sentence or any later time when such Lender
     shall have received notice from the Administrative Agent pursuant to clause
     (C) of the preceding sentence, make available for the account of its
     Applicable Lending Office to the Administrative Agent at the Administrative
     Agent's Account, in same day funds, such Lender's portion of such
     Competitive Bid Borrowing. Upon fulfillment of the applicable conditions
     set forth in Article III and after receipt by the Administrative Agent of
     such funds, the Administrative Agent will make such funds available to the
     Borrower that requested such Borrowing at the Administrative Agent's
     address referred to in Section 8.02. Promptly after each Competitive Bid
     Borrowing the Administrative Agent will notify each Lender of the amount of
     the Competitive Bid Borrowing.

          (vi) If the Borrower that requested any particular Competitive Bid
     Borrowing notifies the Administrative Agent that it accepts one or more of
     the offers made by any Lender or Lenders pursuant to paragraph (iii)(y)
     above, such notice of acceptance shall be irrevocable and binding on such
     Borrower. Such Borrower shall indemnify each Lender against any loss, cost
     or expense incurred by such Lender as a result of any failure to fulfill on
     or before the date specified in the related Notice of Competitive Bid
     Borrowing for such Competitive Bid Borrowing the applicable conditions set
     forth in Article III, including, without limitation, any

<PAGE>

                                      27

     loss (excluding loss of anticipated profits), cost or expense incurred by
     reason of the liquidation or reemployment of deposits or other funds
     acquired by such Lender to fund the Competitive Bid Advance to be made by
     such Lender as part of such Competitive Bid Borrowing when such Competitive
     Bid Advance, as a result of such failure, is not made on such date.

          (b) Each Competitive Bid Borrowing shall be in an aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and,
following the making of each Competitive Bid Borrowing, the Borrowers shall be
in compliance with the limitations set forth in the proviso to the first
sentence of subsection (a) above.

          (c) Within the limits and on the conditions set forth in this Section
2.03, any Borrower may from time to time borrow under this Section 2.03, repay
or prepay pursuant to subsection (d) below, and reborrow under this Section
2.03, provided that a Competitive Bid Borrowing shall not be made within three
Business Days of the date of any other Competitive Bid Borrowing.

          (d) The Borrower to which any particular Competitive Bid Borrowing is
made shall repay to the Administrative Agent for the account of each Lender that
has made a Competitive Bid Advance, on the maturity date of each Competitive Bid
Advance (such maturity date being that specified by such Borrower for repayment
of such Competitive Bid Advance in the related Notice of Competitive Bid
Borrowing delivered pursuant to subsection (a)(i) above, the then unpaid
principal amount of such Competitive Bid Advance. No Borrower shall have any
right to prepay any principal amount of any Competitive Bid Advance unless, and
then only on the terms, specified by such Borrower for such Competitive Bid
Advance in the related Notice of Competitive Bid Borrowing delivered pursuant to
subsection (a)(i) above.

          (e) The Borrower to which any particular Competitive Bid Borrowing is
made shall pay interest on the unpaid principal amount of each Competitive Bid
Advance from the date of such Competitive Bid Advance to the date the principal
amount of such Competitive Bid Advance is repaid in full, at the rate of
interest for such Competitive Bid Advance specified by the Lender making such
Competitive Bid Advance in its notice with respect thereto delivered pursuant to
subsection (a)(ii) above, payable on the interest payment date or dates
specified by such Borrower for such Competitive Bid Advance in the related
Notice of Competitive Bid Borrowing delivered pursuant to subsection (a)(i)
above. Upon the occurrence and during the continuance of an Event of Default
under Section 6.01(a) or 6.01(f) or at the request of the Required Lenders
during the existence of any other Event of Default, such Borrower shall pay
interest on the amount of unpaid principal of and interest on each Competitive
Bid Advance owing to a Lender, payable in arrears on the date or dates interest
is payable thereon, at a rate per annum equal at all times to 2% per annum above
the rate per annum otherwise required to be paid on such Competitive Bid
Advance.

          (f) The indebtedness of any Borrower resulting from any Competitive
Bid Advance made to such Borrower as part of a Competitive Bid Borrowing shall
be evidenced by the Competitive Bid Note of such Borrower payable to the order
of the Lender making such Competitive Bid Advance.

<PAGE>

                                      28

          (g) Upon delivery of each Notice of Competitive Bid Borrowing, the
Borrower that requested the applicable Competitive Bid Borrowing shall pay a
non-refundable fee of $1,500 to the Administrative Agent for its own account.

          SECTION 2.04. Issuance and Renewals and Drawings, Participations and
Reimbursement with Respect to Letters of Credit. (a) Request for Issuance. A
Borrower may from time to time request, upon at least three Letter of Credit
Business Days' written notice (given not later than 11:00 A.M. New York City
time on the last day permitted therefor), the Issuing Bank to issue or renew
(other than any automatic renewal thereof) a Letter of Credit by:

          (i) delivering to the Issuing Bank and the Administrative Agent a
     written request to such effect, specifying the date on which such Letter of
     Credit is to be issued (which shall be a Letter of Credit Business Day),
     the expiration date thereof, the Available Amount thereof, the name and
     address of the beneficiary thereof and the form thereof, and

          (ii) in the case of the issuance of a Letter of Credit, delivering to
     the Issuing Bank a completed agreement and application with respect to such
     Letter of Credit as the Issuing Bank may specify for use in connection with
     such requested Letter of Credit (a "Letter of Credit Agreement"), together
     with such other certificates, documents and other papers as are specified
     in such Letter of Credit Agreement.

The Administrative Agent shall, promptly upon receiving such notice, notify the
Lenders of such proposed Letter of Credit (which notice shall specify the
Available Amount and term of such proposed Letter of Credit) or such proposed
renewal of a Letter of Credit (which notice shall specify the term of such
renewal), and shall determine, as of 11:00 A.M. (New York City time) on the
Business Day immediately preceding such proposed issuance, whether such proposed
Letter of Credit complies with the limitations set forth in Section 2.01 hereof.
If such limitations set forth in Section 2.01 are not satisfied or if the
Required Lenders have given notice to the Administrative Agent to cease issuing
or renewing Letters of Credit as contemplated by this Agreement, the
Administrative Agent shall immediately notify the Issuing Bank (in writing or by
telephone immediately confirmed in writing) that the Issuing Bank is not
authorized to issue or renew, as the case may be, such Letter of Credit. If the
Issuing Bank issues or renews a Letter of Credit, it shall deliver the original
of such Letter of Credit to the beneficiary thereof or as the Account Party
shall otherwise direct, and shall promptly notify the Administrative Agent
thereof and furnish a copy thereof to the Administrative Agent.

          (b) Request for Extension or Increase. An Account Party may from time
to time request the Issuing Bank to extend the expiration date of an outstanding
Letter of Credit or increase (or, with the consent of the beneficiary, decrease)
the Available Amount of or the amount available to be drawn on such Letter of
Credit. Such extension or increase shall for all purposes hereunder be treated
as though such Account Party had requested issuance of a replacement Letter of
Credit (except only that the Issuing Bank may, if it elects, issue a notice of
extension or increase in lieu of issuing a new Letter of Credit in substitution
for the outstanding Letter of Credit).

          (c) Limitations on Issuance, Extension, Renewal and Amendment. As
between the Issuing Bank, on the one hand, and the Agents and the Lenders, on
the other hand, the Issuing Bank shall

<PAGE>

                                      29

be justified and fully protected in issuing or renewing a proposed Letter of
Credit unless it shall have received notice from the Administrative Agent as
provided in Section 2.04(a) hereof that it is not authorized to do so (and, in
the case of automatic renewals, ten days shall have passed following the date of
the Issuing Bank's receipt of such notice), notwithstanding any subsequent
notices to the Issuing Bank, any knowledge of a Default, any knowledge of
failure of any condition specified in Article III hereof to be satisfied, any
other knowledge of the Issuing Bank, or any other event, condition or
circumstance whatsoever. The Issuing Bank may amend, modify or supplement
Letters of Credit or Letter of Credit Agreements, or waive compliance with any
condition of issuance, renewal or payment, without the consent of, and without
liability to, any Agent or any Lender, provided that any such amendment,
modification or supplement that extends the expiration date or increases the
Available Amount of or the amount available to be drawn on an outstanding Letter
of Credit shall be subject to Section 2.01.

          (d) Letter of Credit Participating Interests. Concurrently with the
issuance of each Letter of Credit, the Issuing Bank automatically shall be
deemed, irrevocably and unconditionally, to have sold, assigned, transferred and
conveyed to each other Lender, and each other Lender automatically shall be
deemed, irrevocably and unconditionally, severally to have purchased, acquired,
accepted and assumed from the Issuing Bank, without recourse to, or
representation or warranty by, the Issuing Bank, an undivided interest, in a
proportion equal to such Lender's Pro Rata Share, in all of the Issuing Bank's
rights and obligations in, to or under such Letter of Credit, the related Letter
of Credit Agreement, all reimbursement obligations with respect to such Letter
of Credit, and all collateral, guarantees and other rights from time to time
directly or indirectly securing the foregoing (such interest of each Lender
being referred to herein as a "Letter of Credit Participating Interest", it
being understood that the Letter of Credit Participating Interest of the Issuing
Bank is the interest not otherwise attributable to the Letter of Credit
Participating Interests of the other Lenders). Each Lender irrevocably and
unconditionally agrees to the immediately preceding sentence, such agreement
being herein referred to as such Bank's "Letter of Credit Participating Interest
Commitment". Amounts, other than Letter of Credit Advances made by a Lender
other than the Issuing Bank and other than Letter of Credit commissions under
Section 2.09(d)(i), payable from time to time under or in connection with a
Letter of Credit or Letter of Credit Agreement shall be for the sole account of
the Issuing Bank. On the date that any assignee becomes a party to this
Agreement in accordance with Section 9.07 hereof, Letter of Credit Participating
Interests in all outstanding Letters of Credit held by the Lender from which
such assignee acquired its interest hereunder shall be proportionately
reallocated between such assignee and such assignor Lender (and, to the extent
such assignor Lender is the Issuing Bank, the assignee Bank shall be deemed to
have acquired a Letter of Credit Participating Interest from the Issuing Bank to
such extent). Notwithstanding any other provision hereof, each Lender hereby
agrees that its obligation to participate in each Letter of Credit, its
obligation to make the payments specified in Section 2.04(e), and the right of
the Issuing Bank to receive such payments in the manner specified therein, are
each absolute, irrevocable and unconditional and shall not be affected by any
event, condition or circumstance whatever. The failure of any Lender to make any
such payment shall not relieve any other Lender of its funding obligation
hereunder on the date due, but no Lender shall be responsible for the failure of
any other Lender to meet its funding obligations hereunder.

          (e) Payment by Lenders on Account of Unreimbursed Draws. If the
Issuing Bank makes a payment under any Letter of Credit and is not reimbursed in
full therefor on such payment date

<PAGE>

                                       30

in accordance with Section 2.05(b), the Issuing Bank may notify the
Administrative Agent thereof (which notice may be by telephone), and the
Administrative Agent shall forthwith notify each Lender (which notice may be by
telephone promptly confirmed in writing) thereof. No later than the
Administrative Agent's close of business on the date such notice is given (if
notice is given by 2:00 P.M. New York City time) or 10:00 A.M. New York City
time the following day (if notice is given after 2:00 P.M. New York City time or
in the case of any Lender whose Applicable Lending Office is located in Europe),
each Lender will pay to the Administrative Agent, for the account of the Issuing
Bank, in immediately available funds, an amount equal to such Lender's Pro Rata
Share of the unreimbursed portion of such payment by the Issuing Bank. Amounts
received by the Administrative Agent for the account of the Issuing Bank shall
be forthwith transferred, in immediately available funds, to the Issuing Bank.
If and to the extent that any Lender fails to make such payment to the
Administrative Agent for the account of the Issuing Bank on such date, such
Lender shall pay such amount on demand, together with interest, for the Issuing
Bank's own account, for each day from and including the date of the Issuing
Bank's payment to but not including the date of repayment to the Issuing Bank
(before and after judgment) at a rate per annum for each day (i) from and
including the date of such payment by the Issuing Bank to and including the
second Business Day thereafter equal to the Federal Funds Rate and (ii)
thereafter equal to the Base Rate.

          (f) Letter of Credit Advances. The term "Letter of Credit Advance" is
used in this Agreement in accordance with the meanings set forth in this
paragraph 2.04(f). The making of any payment by the Issuing Bank under a Letter
of Credit is sometimes referred to herein as the making of a Letter of Credit
Advance by the Issuing Bank in the amount of such payment. The making of any
payment by a Lender for the account of the Issuing Bank under Section 2.04(e) on
account of an unreimbursed drawing on a Letter of Credit is sometimes referred
to herein as the making of a Letter of Credit Advance to the applicable Borrower
by such Lender. The making of such a Letter of Credit Advance by a Lender with
respect to an unreimbursed drawing on a Letter of Credit shall reduce, by a like
amount, the outstanding Letter of Credit Advance of the Issuing Bank with
respect to such unreimbursed drawing.

          (g) Letter of Credit Reports.  The Issuing Bank will furnish to the
Administrative Agent prompt written notice of each issuance of a Letter of
Credit (including the Available Amount and expiration date thereof), amendment
to a Letter of Credit, cancellation of a Letter of Credit and payment on a
Letter of Credit.  The Administrative Agent will furnish (A) to each Lender
prior to the tenth Business Day of each month a written report summarizing
issuance and expiration dates of Letters of Credit issued during the preceding
month and payments and reductions in Available Amount during such month on all
Letters of Credit and (B) to each Lender prior to the tenth Business Day of each
calendar quarter a written report setting forth the average daily aggregate
Available Amount during the preceding calendar quarter of all Letters of Credit.

          SECTION 2.05.  Repayment of Advances.  (a)  Committed Advances.  Each
Borrower shall repay to the Administrative Agent for the ratable account of the
Lenders on the Termination Date the aggregate outstanding principal amount of
the Committed Advances then outstanding.

          (b) Account Party's Reimbursement Obligation.  (i) Each Account Party
hereby agrees to reimburse the Issuing Bank (by making payment to the
Administrative Agent for the account of
<PAGE>

                                       31

the Issuing Bank in accordance with Section 2.12) in the amount of each payment
made by the Issuing Bank under any Letter of Credit issued for such Account
Party's account, such reimbursement to be made on the date such payment under
such Letter of Credit is made by the Issuing Bank (but not earlier than the date
which is one Business Day after notice of such payment under such Letter of
Credit or of the drawing giving rise to such payment under such Letter of Credit
is given to such Account Party). Such reimbursement obligation shall be payable
without further notice, protest or demand, all of which are hereby waived, and
an action therefor shall immediately accrue. To the extent such payment by such
Account Party is not timely made, such Account Party hereby agrees to pay to the
Administrative Agent, for the respective accounts of the Issuing Bank and the
Lenders which have funded their respective shares of such amount remaining
unpaid by such Account Party, on demand, interest thereon at the rate then
applicable to Base Rate Advances under Section 2.08. Each Letter of Credit
Advance shall be a Base Rate Advance.

          (ii) The obligation of each Account Party to reimburse the Issuing
     Bank for any payment made by the Issuing Bank under any Letter of Credit,
     and the obligation of each Lender under Section 2.04(e) with respect
     thereto, shall be unconditional and irrevocable, and shall be paid strictly
     in accordance with the terms of this Agreement, the applicable Letter of
     Credit Agreement and any other applicable agreement or instrument under all
     circumstances, including, without limitation, the following circumstances:

          (A) any lack of validity or enforceability of any Loan Document, any
     Letter of Credit Agreement, any Letter of Credit or any other agreement or
     instrument relating thereto (all of the foregoing being, collectively, the
     "L/C Related Documents");

          (B) any change in the time, manner or place of payment of, or in any
     other term of, all or any of the obligations of any Borrower or any other
     Person in respect of any L/C Related Document or any other amendment or
     waiver of or any consent to departure from all or any of the L/C Related
     Documents;

          (C) the existence of any claim, set-off, defense or other right that
     any Borrower or any other Person may have at any time against any
     beneficiary or any transferee of a Letter of Credit (or any Persons for
     which any such beneficiary or any such transferee may be acting), the
     Issuing Bank or any other Person, whether in connection with the
     transactions contemplated by the L/C Related Documents or any unrelated
     transaction;

          (D) any statement or any other document presented under a Letter of
     Credit proving to be forged, fraudulent, invalid or insufficient in any
     respect or any statement therein being untrue or inaccurate in any respect;

          (E) payment by the Issuing Bank under a Letter of Credit against
     presentation of a draft or certificate that does not strictly comply with
     the terms of such Letter of Credit;

          (F) any exchange, release or non-perfection of any collateral, or any
     release or amendment or waiver of or consent to departure from the Guaranty
     or any other guarantee, for
<PAGE>

                                       32

     all or any of the obligations of any Borrower or any other Person in
     respect of the L/C Related Documents; or

          (G) any other circumstance or happening whatsoever, whether or not
     similar to any of the foregoing, including, without limitation, any other
     circumstance that might otherwise constitute a defense available to, or a
     discharge of, any Borrower or a guarantor.

          (c) Rescission.  If any amount received by the Issuing Bank on account
of any Letter of Credit Advance shall be avoided, rescinded or otherwise
returned or paid over by the Issuing Bank for any reason at any time, whether
before or after the termination of this Agreement (or the Issuing Bank believes
in good faith that such avoidance, rescission, return or payment is required,
whether or not such matter has been adjudicated), each Lender will (except to
the extent a corresponding amount received by such Lender on account of its
Letter of Credit Advance relating to the same payment on a Letter of Credit has
been avoided, rescinded or otherwise returned or paid over by such Lender),
promptly upon notice from the Administrative Agent or the Issuing Bank, pay over
to the Administrative Agent for the account of the Issuing Bank its Pro Rata
Share of such amount, together with its Pro Rata Share of any interest or
penalties payable with respect thereto.

          SECTION 2.06.  Termination or Reduction of the WC Commitments.  The
Parent may, upon at least three Business Days' notice to the Administrative
Agent, terminate in whole or reduce in part the unused portion of the WC
Commitments; provided, however, that each partial reduction (i) shall be in an
aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in excess
thereof and (ii) shall be made ratably among the Lenders in accordance with
their WC Commitments.

          SECTION 2.07.  Prepayments.  Each Borrower may, upon at least one
Business Day's notice in the case of Base Rate Advances and three Business Days'
notice in the case of Eurodollar Rate Advances, in each case to the
Administrative Agent stating the proposed date and aggregate principal amount of
the prepayment, and if such notice is given such Borrower shall, prepay the
outstanding aggregate principal amount of the Committed Advances comprising part
of the same Committed Borrowing in whole or ratably in part, together with
accrued interest to the date of such prepayment on the aggregate principal
amount prepaid; provided, however, that (x) each partial prepayment shall be in
an aggregate principal amount of $10,000,000 or an integral multiple of
$1,000,000 in excess thereof (except that prepayment of any Letter of Credit
Advance may be made in any amount so long as such Letter of Credit Advance is
paid in full or, after giving effect to such prepayment, the aggregate principal
amount of all Letter of Credit Advances is an integral multiple of $1,000,000)
and (y) if any prepayment of a Eurodollar Rate Advance is made on a date other
than the last day of an Interest Period for such Committed Advance, such
Borrower shall also pay any amounts owing pursuant to Section 9.04(c).  All
prepayments in respect of Eurodollar Rate Advances shall be made together with
accrued interest to the date of such prepayment on the principal amount prepaid.

          SECTION 2.08.  Interest.  (a)  Scheduled Interest.  Each Borrower
shall pay interest on the unpaid principal amount of each Advance owing to each
Lender from the date of such Advance until such principal amount shall be paid
in full, at the following rates per annum:
<PAGE>

                                       33

          (i) Base Rate Advances.  During such periods as such Advance is a Base
     Rate Advance, a rate per annum equal at all times to the sum of (A) the
     Base Rate in effect from time to time plus (B) the Applicable Margin in
     effect from time to time, payable in arrears quarterly on the last day of
     each March, June, September and December during such periods and on the
     Termination Date.

          (ii) Eurodollar Rate Advances.  During such periods as such Advance is
     a Eurodollar Rate Advance, a rate per annum equal at all times during each
     Interest Period for such Advance to the sum of (A) the Eurodollar Rate for
     such Interest Period for such Advance plus (B) the Applicable Margin in
     effect from time to time, payable in arrears on the last day of such
     Interest Period and, if such Interest Period has a duration of more than
     three months, on each day that occurs during such Interest Period every
     three months from the first day of such Interest Period and on the date
     such Eurodollar Rate Advance shall be Converted or paid in full.

          (iii)  Regulation D Compensation. Each Lender that is subject to
     reserve requirements of the Board of Governors of the Federal Reserve
     System (or any successor) may require any Borrower to pay,
     contemporaneously with each payment of interest on Eurodollar Rate
     Advances, additional interest on the related Eurodollar Rate Advances of
     such Lender at the rate per annum equal to the excess of (i)(A) the
     applicable Eurodollar Rate, divided by (B) one minus the Eurodollar Rate
     Reserve Requirement over (ii) the rate specified in clause (i)(A). Any
     Lender wishing to require payment of such additional interest shall so
     notify such Borrower directly, in which case such additional interest on
     the Eurodollar Rate Advances of such Lender shall be payable to such Lender
     at the place indicated in such notice with respect to each Interest Period
     commencing after the giving of such notice.

          (b) Default Interest.  Upon the occurrence and during the existence of
an Event of Default under Section 6.01(a) or 6.01(f) or at the request of the
Required Lenders during the existence of any other Event of Default, each
Borrower shall pay interest on (i) the unpaid principal amount of each Advance
owing to each Lender, payable in arrears on the dates referred to in clause
(a)(i) or (a)(ii) above and at a rate per annum equal at all times to 2% per
annum above the rate per annum required to be paid on such Advance pursuant to
clause (a)(i) or (a)(ii) above and (ii) to the fullest extent permitted by law,
the amount of any interest, fee or other amount payable under the Loan Documents
that is not paid when due, from the date such amount shall be due until such
amount shall be paid in full, payable in arrears on the date such amount shall
be paid in full and on demand, at a rate per annum equal at all times to 2% per
annum above the rate per annum required to be paid, in the case of interest, on
the Type of Advance on which such interest has accrued pursuant to clause (a)(i)
or (a)(ii) above and, in all other cases, on Base Rate Advances pursuant to
clause (a)(i) above.

          (c) Notice of Interest Period and Interest Rate.  Promptly after
receipt of a Notice of  Borrowing pursuant to Section 2.02(a), a notice of
Conversion pursuant to Section 2.10 or a notice of selection of an Interest
Period pursuant to the terms of the definition of "Interest Period", the
Administrative Agent shall give notice to the Borrowers and each Lender of the
applicable Interest Period and the applicable interest rate determined by the
Administrative Agent for purposes of clause (a)(i) or (a)(ii) above.
<PAGE>

                                       34

          SECTION 2.09.  Fees.  (a)  Ticking Fee.  In respect of any portion of
the WC Commitments, each Borrower jointly and severally agrees that it shall pay
to the Administrative Agent for the account of the Lenders a ticking fee, from
April 6, 1999 in the case of each Initial Lender and from the effective date
specified in the Assignment and Acceptance pursuant to which it became a Lender
in the case of each other Lender until the date on which such portion of the WC
Commitments is available to be borrowed pursuant to the provisions of Section
3.01, payable in arrears on the Effective Date, thereafter quarterly on the last
day of each March, June, September and December, commencing June 30, 1999, and
on the Termination Date, at the rate of 1/10 of 1% per annum on the average
daily unavailable WC Commitment of each Lender during such quarter; provided,
however, that no ticking fee shall accrue on the WC Commitment of a Defaulting
Lender so long as such Lender shall be a Defaulting Lender and provided further
that no ticking fee shall accrue on the portion of the WC Commitment on which
the facility fee is accruing pursuant to Section 2.09(b).

          (b) Facility Fee.  Each Borrower jointly and severally agrees to pay
to the Administrative Agent for the account of the Lenders a facility fee, from
the Effective Date in the case of each Initial Lender and from the effective
date specified in the Assignment and Acceptance pursuant to which it became a
Lender in the case of each other Lender until the Termination Date, payable in
arrears quarterly on the last day of each March, June, September and December,
commencing on June 30, 1999, and on the Termination Date, at the rate of the
Applicable Facility Fee Percentage on the average daily available WC Commitment
of each Lender during such quarter; provided, however, that no facility fee
shall accrue on the WC Commitment of a Defaulting Lender so long as such Lender
shall be a Defaulting Lender.

          (c) Agents' Fees.  Each Borrower jointly and severally agrees that it
shall pay to each Agent for its own account such fees as may from time to time
be agreed between such Borrower and such Agent.

          (d) Letter of Credit Fees, Etc.  (i)  Each Borrower jointly and
severally agrees that it shall pay to the Administrative Agent for the account
of each Lender a commission, payable in arrears quarterly on the last day of
each calendar quarter commencing June 30, 1999, and on the earliest to occur of
the full drawing, expiration, termination or cancellation of any Letter of
Credit and on the Termination Date, on such Lender's Pro Rata Share of the
average daily aggregate Available Amount during such quarter of all Letters of
Credit outstanding from time to time at the rate equal to the then Applicable
Margin

          (ii) Each Borrower jointly and severally agrees that it shall pay to
the Issuing Bank, for its own account, such commissions, issuance fees, fronting
fees, transfer fees and other fees and charges in connection with the issuance
or administration of each Letter of Credit as such Borrower and the Issuing Bank
shall agree in a side letter.

          SECTION 2.10.  Conversion of Advances.  (a)  Optional.  Each Borrower
may on any Business Day, upon notice given to the Administrative Agent not later
than 11:00 A.M. (New York City time) on the third Business Day prior to the date
of the proposed Conversion and subject to the provisions of Section 2.11,
Convert all or any portion of the Committed Advances of one Type comprising the
same Committed Borrowing into Committed Advances of the other Type; provided,
<PAGE>

                                       35

however, that any Conversion of Eurodollar Rate Advances into Base Rate Advances
shall be made only on the last day of an Interest Period for such Eurodollar
Rate Advances, any Conversion of Base Rate Advances into Eurodollar Rate
Advances shall be in an amount not less than the minimum amount specified in
Section 2.01, no Conversion of any Committed Advances shall result in more
separate Committed Borrowings than permitted under Section 2.02(b) and each
Conversion of Committed Advances comprising part of the same Borrowing shall be
made ratably among the Lenders in accordance with their respective WC
Commitments.  Each such notice of Conversion shall, within the restrictions
specified above, specify (i) the date of such Conversion, (ii) the Advances to
be Converted and (iii) if such Conversion is into Eurodollar Rate Advances, the
duration of the initial Interest Period for such Advances.  Each notice of
Conversion shall be irrevocable and binding on such Borrower.

          (b) Mandatory.  (i)  On the date on which the aggregate unpaid
principal amount of Eurodollar Rate Advances comprising any Committed Borrowing
shall be reduced, by payment or prepayment or otherwise, to less than
$10,000,000, such Committed Advances shall automatically Convert into Base Rate
Advances at the end of the applicable Interest Period.

          (ii)  If the Borrowers shall fail to select the duration of any
Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.01, the
Administrative Agent will forthwith so notify the Borrowers and the Lenders,
whereupon each such Eurodollar Rate Advance will automatically, on the last day
of the then existing Interest Period therefor, Convert into a Base Rate Advance.

          (iii)  Upon the occurrence and during the existence of an Event of
Default under Section 6.01(a) or 6.01(f) or at the request of the Required
Lenders during the existence of any other Event of Default, (x) each Eurodollar
Rate Advance will automatically, on the last day of the then existing Interest
Period therefor, Convert into a Base Rate Advance and (y) the obligation of the
Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be
suspended.

          SECTION 2.11.  Increased Costs, Etc.  (a)  If, due to either (i) the
introduction of or any change in or in the interpretation of, in each case after
the date hereof, any law or regulation or (ii) the compliance with any guideline
or request issued after the date hereof from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or of making, funding
or maintaining Eurodollar Rate Advances or LIBO Rate Advances or of agreeing to
issue or of issuing or maintaining or participating in Letters of Credit
(excluding, for purposes of this Section 2.11, any such increased costs
resulting from (x) Taxes or Other Taxes (as to which Section 2.13 shall govern)
and (y) changes in the basis of taxation of overall net income or overall gross
income by the United States or by the foreign jurisdiction or state under the
laws of which such Lender is organized or has its Applicable Lending Office or
any political subdivision thereof), then the Borrowers jointly and severally
agree to pay, from time to time, within five days after demand by such Lender
(with a copy of such demand to the Administrative Agent), which demand shall
include a statement of the basis for such demand and a calculation in reasonable
detail of the amount demanded, to the Administrative Agent for the account of
such Lender additional amounts sufficient to compensate such Lender for such
increased cost. A certificate as to the amount of such increased cost, submitted
to the Borrowers by such Lender, shall be conclusive and binding for all
purposes, absent manifest error.
<PAGE>

                                       36

          (b) If, due to either (i) the introduction of or any change in or in
the interpretation of any law or regulation, in each case after the date hereof,
or (ii) the compliance with any guideline or request issued after the date
hereof from any central bank or other governmental authority (whether or not
having the force of law), there shall be any increase in the amount of capital
required or expected to be maintained by any Lender or any corporation
controlling such Lender as a result of or based upon the existence of such
Lender's commitment to lend hereunder and other commitments of such type, then,
within five days after demand by such Lender or such corporation (with a copy of
such demand to the Administrative Agent), which demand shall include a statement
of the basis for such demand and a calculation in reasonable detail of the
amount demanded, the Borrowers jointly and severally agree to pay to the
Administrative Agent for the account of such Lender, from time to time as
specified by such Lender, additional amounts sufficient to compensate such
Lender in the light of such circumstances, to the extent that such Lender
reasonably determines such increase in capital to be allocable to the existence
of such Lender's commitment to lend or to issue or participate in Letters of
Credit hereunder or to the issuance or maintenance of or participation in any
Letters of Credit.  A certificate as to such amounts submitted to the Borrowers
by such Lender shall be conclusive and binding for all purposes, absent manifest
error.

          (c) If, prior to the first day of any Interest Period with respect to
any Eurodollar Rate Advances, the Required Lenders notify the Administrative
Agent that the Eurodollar Rate for such Interest Period for such Committed
Advances will not adequately reflect the cost to such Lenders of making, funding
or maintaining their Eurodollar Rate Advances for such Interest Period, the
Administrative Agent shall forthwith so notify the Borrower and the Lenders,
whereupon each such Eurodollar Rate Advance will (i) in the case of requested
new Eurodollar Rate Advances, be made as or remain Base Rate Advances or as a
Eurodollar Rate Advance with a different Interest Period as to which the
Required Lenders have not given such a notice and (ii) in the case of existing
Eurodollar Rate Advances, automatically, on the last day of the then existing
Interest Period therefor, Convert into Base Rate Advances or be continued as a
Eurodollar Rate Advance with a different Interest Period as to which the
Required Lenders have not given such notice.

          (d) Notwithstanding any other provision of this Agreement, if the
introduction of or any change in or in the interpretation of any law or
regulation, in each case after the date hereof, shall make it unlawful, or any
central bank or other governmental authority shall assert that it is unlawful,
for any Lender or its Eurodollar Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or LIBO Rate Advances or to continue
to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
then, on notice thereof and demand therefor by such Lender to the Borrowers
through the Administrative Agent, (i) each Eurodollar Rate Advance or LIBO Rate
Advance, as the case may be, of such Lender will automatically, upon such
demand, Convert into a Base Rate Advance or an Advance that bears interest at
the rate set forth in Section 2.08(a)(i), as the case may be, and (ii) the
obligation of such Lender to make Eurodollar Rate Advances or LIBO Rate Advances
or to Convert Committed Advances into Eurodollar Rate Advances shall be
suspended until the Administrative Agent shall notify the Borrowers that such
Lender has determined that the circumstances causing such suspension no longer
exist (it being understood that such Lender shall make and maintain Base Rate
Advances in the amount that would otherwise be made and maintained by such
Lender as Eurodollar Advances absent the circumstances described above).
<PAGE>

                                       37

          (e) Each Lender shall promptly notify the Borrowers and the
Administrative Agent of any event of which it has actual knowledge which will
result in, and will use reasonable commercial efforts available to it (and not,
in such Lender's good faith judgment, otherwise disadvantageous to such Lender)
to mitigate or avoid, (i) any obligation by the Borrowers to pay any amount
pursuant to subsection (a) or (b) above or pursuant to Section 2.13 or (ii) the
occurrence of any circumstances of the nature described in subsection (c) or (d)
above (and, if any Lender has given notice of any event described in clause (i)
or (ii) above and thereafter such event ceases to exist, such Lender shall
promptly so notify the Borrowers and the Administrative Agent).  Without
limiting the foregoing, each Lender will designate a different Applicable
Lending Office if such designation will avoid (or reduce the cost to the
Borrowers of) any event described in clause (i) or (ii) of the preceding
sentence and such designation will not, in such Lender's good faith judgment, be
otherwise disadvantageous to such Lender.

          (f) Notwithstanding the provisions of subsections (a) and (b) above or
Section 2.13 (and without limiting subsection (e) above), if any Lender fails to
notify the Borrowers of any event or circumstance that will entitle such Lender
to compensation pursuant subsection (a) or (b) above or Section 2.13 within 120
days after such Lender obtains actual knowledge of such event or circumstance,
then such Lender shall not be entitled to compensation, from the Borrowers for
any amount arising prior to the date which is 120 days before the date on which
such Lender notifies the Borrowers of such event or circumstance.

          SECTION 2.12.  Payments and Computations.  (a)  The applicable
Borrower shall make each payment hereunder and under the applicable Notes,
irrespective of any right of counterclaim or set-off (except as otherwise
provided in Section 2.16), not later than 11:00 A.M. (New York City time) on the
day when due in U.S. dollars to the Administrative Agent at the Administrative
Agent's Account in same day funds, with payments being received by the
Administrative Agent after such time being deemed to have been received on the
next succeeding Business Day.  The Administrative Agent will promptly thereafter
cause like funds to be distributed (i) if such payment by such Borrower is in
respect of principal, interest, ticking fees, facility fees or any other amount
then payable hereunder and under the Notes to more than one Lender, to such
Lenders for the account of their respective Applicable Lending Offices ratably
in accordance with the amounts of such respective amount then payable to such
Lenders and (ii) if such payment by such Borrower is in respect of any amount
then payable hereunder to one Lender, to such Lender for the account of its
Applicable Lending Office, in each case to be applied in accordance with the
terms of this Agreement.  Upon its acceptance of an Assignment and Acceptance
and recording of the information contained therein in the Register pursuant to
Section 9.07(d), from and after the effective date of such Assignment and
Acceptance, the Administrative Agent shall make all payments hereunder and under
the Notes in respect of the interest assigned thereby to the Lender assignee
thereunder, and the parties to such Assignment and Acceptance shall make all
appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.

          (b) Each Borrower hereby authorizes each Lender, if an Event of
Default under Section 6.01(a) has occurred and is continuing, to charge from
time to time against any or all of such Borrower's accounts with such Lender any
amount that resulted in such Event of Default.

          (c) All computations of interest on Base Rate Advances (and any other
amount payable by reference to the Base Rate) when the Base Rate is determined
by reference to MGT's prime
<PAGE>

                                       38

rate shall be made by the Administrative Agent on the basis of a year of 365 or,
if applicable, 366 days; all other computations of interest, fees and Letter of
Credit commissions shall be made by the Administrative Agent on the basis of a
year of 360 days. All such computations shall be made for the actual number of
days (including the first day but excluding the last day) occurring in the
period for which such interest, fees or commissions are payable. Each
determination by the Administrative Agent of an interest rate, fee or commission
hereunder shall be conclusive and binding for all purposes, absent manifest
error.

          (d) Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or fee, as the case may be;
provided, however, that, if such extension would cause payment of interest on or
principal of Eurodollar Rate Advances or LIBO Rate Advances to be made in the
next following calendar month, such payment shall be made on the next preceding
Business Day.

          (e) Unless the Administrative Agent shall have received notice from
any Borrower required to make any payment prior to the date on which any payment
is due to any Lender hereunder that such Borrower will not make such payment in
full, the Administrative Agent may assume that such Borrower has made such
payment in full to the Administrative Agent on such date and the Administrative
Agent may, in reliance upon such assumption, cause to be distributed to each
such Lender on such due date an amount equal to the amount then due such Lender.
If and to the extent such Borrower shall not have so made such payment in full
to the Administrative Agent, each such Lender shall repay to the Administrative
Agent forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at the Federal Funds Rate.

          SECTION 2.13.  Taxes.  (a)  Any and all payments by any Loan Party
hereunder or under the Notes shall be made, in accordance with Section 2.12,
free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender and each Agent, taxes
that are imposed on its overall net income by the United States and taxes that
are imposed on its overall net income (and franchise taxes imposed in lieu
thereof) by the state or foreign jurisdiction under the laws of which such
Lender or such Agent, as the case may be, is organized or any political
subdivision thereof and, in the case of each Lender, taxes that are imposed on
its overall net income (and franchise taxes imposed in lieu thereof) by the
state or foreign jurisdiction of such Lender's Applicable Lending Office or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes being herein referred to as "Taxes").  If any Loan
Party shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder or under any Note to any Lender or any Agent, (i) the sum
payable by such Loan Party shall be increased as may be necessary so that after
such Loan Party and the Administrative Agent have made all required deductions
(including deductions applicable to additional sums payable under this Section
2.13) such Lender or such Agent, as the case may be, receives an amount equal to
the sum it would have received had no such deductions been made, (ii) such Loan
Party shall make all such deductions and (iii) such Loan Party shall pay the
full amount deducted to the relevant taxation authority or other authority in
accordance with applicable law.
<PAGE>

                                       39

          (b) In addition, each Loan Party shall pay any present or future
stamp, documentary, excise, property or similar taxes, charges or levies that
arise from any payment made hereunder or under the Notes or from the execution,
delivery or registration of, performance under, or otherwise with respect to,
this Agreement or the Notes (herein referred to as "Other Taxes").

          (c) Each Loan Party shall indemnify each Lender and each Agent for and
hold them harmless against the full amount of Taxes and Other Taxes, and for the
full amount of taxes of any kind imposed by any jurisdiction on amounts payable
under this Section 2.13, imposed on or paid by such Lender or such Agent (as the
case may be) and any liability (including penalties, additions to tax, interest
and expenses) arising therefrom or with respect thereto.  This indemnification
payment shall be made within 30 days from the date such Lender or such Agent (as
the case may be) makes written demand therefor.

          (d) Within 30 days after the date of any payment of Taxes, each Loan
Party shall furnish to the Administrative Agent, at its address referred to in
Section 9.02, the original or a certified copy of a receipt evidencing such
payment.  In the case of any payment hereunder or under the Notes by or on
behalf of a Loan Party through an account or branch outside the United States or
by or on behalf of a Loan Party by a payor that is not a United States person,
if such Loan Party determines that no Taxes are payable in respect thereof, such
Loan Party shall furnish, or shall cause such payor to furnish, to the
Administrative Agent, at such address, an opinion of counsel acceptable to the
Administrative Agent stating that such payment is exempt from Taxes. For
purposes of subsections (d) and (e) of this Section 2.13, the terms "United
States" and "United States person" shall have the meanings specified in Section
7701(a)(9) and 7701(a)(10) of the Internal Revenue Code, respectively.

          (e) Each Lender organized under the laws of a jurisdiction outside the
United States shall, on or prior to the date of its execution and delivery of
this Agreement in the case of each Initial Lender or the initial Issuing Bank,
as the case may be, and on the date of the Assignment and Acceptance pursuant to
which it becomes a Lender in the case of each other Lender, and from time to
time thereafter as requested in writing by the Parent (but only so long
thereafter as such Lender remains lawfully able to do so), provide each of the
]Administrative Agent and the Parent with two original Internal Revenue Service
forms W-8BEN (or if delivered on or before December 31, 1999, form 1001) or
W-8ECI (or if delivered on or before December 31, 1999, form 4224) or (in the
case of a Lender that has certified in writing to the Administrative Agent that
it is not a "bank" as defined in Section 881(c)(3)(A) of the Internal Revenue
Code) form W-8 (and, if such Lender delivers a form W-8, a certificate
representing that such Lender is not a "bank" for purposes of Section
881(c)(3)(A) of the Internal Revenue Code, is not a 10-percent shareholder
(within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the
Parent and is not a controlled foreign corporation related to the Parent (within
the meaning of Section 864(d)(4) of the Internal Revenue Code)), as appropriate,
or any successor or other form prescribed by the Internal Revenue Service,
certifying that such Lender is exempt from or entitled to a reduced rate of
United States withholding tax on payments pursuant to this Agreement or the
Notes or, in the case of a Lender providing a form W-8, certifying that such
Lender is a foreign corporation, partnership, estate or trust. If the forms
provided by a Lender at the time such Lender first becomes a party to this
Agreement indicate a United States interest withholding tax rate in excess of
zero, withholding tax at such rate shall be considered excluded from Taxes
unless and until such Lender provides the appropriate forms certifying that a
lesser rate applies, whereupon withholding tax at such
<PAGE>

                                       40

lesser rate only shall be considered excluded from Taxes for periods governed by
such forms; provided, however, that if, at the effective date of the Assignment
and Acceptance pursuant to which a Lender becomes a party to this Agreement, the
Lender assignor was entitled to payments under subsection (a) of this Section
2.13 in respect of United States withholding tax with respect to interest paid
at such date, then, to such extent, the term Taxes shall include (in addition to
withholding taxes that may be imposed in the future or other amounts otherwise
includable in Taxes) United States withholding tax, if any, applicable with
respect to the Lender assignee on such date. If any form or document referred to
in this subsection (e) requires the disclosure of information, other than
information necessary to compute the tax payable and information required on the
date hereof by Internal Revenue Service form W-8BEN, 1001, W-8ECI, 4224 or W-8
(and the related certificate described above), that the Lender reasonably
considers to be confidential, the Lender shall give notice thereof to the Parent
and shall not be obligated to include in such form or document such confidential
information.

          (f) For any period with respect to which a Lender which may lawfully
do so has failed to provide the Parent with the appropriate form described in
subsection (e) above (other than if such failure is due to a change in law
occurring after the date on which a form originally was required to be provided
or if such form otherwise is not required under subsection (e) above), such
Lender shall not be entitled to indemnification under subsection (a) or (c) of
this Section 2.13 with respect to Taxes imposed by the United States by reason
of such failure; provided, however, that should a Lender become subject to Taxes
because of its failure to deliver a form required hereunder, the Parent shall
take such steps as such Lender shall reasonably request to assist such Lender to
recover such Taxes.

          (g) Each Lender represents and warrants to the Borrowers that, as of
the date such Lender becomes a party to this Agreement, such Lender is entitled
to receive payments hereunder from the Borrowers without deduction or
withholding for or on account of any Taxes.

          SECTION 2.14. Sharing of Payments, Etc. If any Lender shall obtain at
any time any payment (whether voluntary, involuntary, through the exercise of
any right of set-off, or otherwise, other than as a result of an assignment
pursuant to Section 9.07) (a) on account of obligations due and payable to such
Lender hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such obligations due and
payable to such Lender at such time to (ii) the aggregate amount of the
obligations due and payable to all Lenders hereunder and under the Notes at such
time) of payments on account of the obligations due and payable to all Lenders
hereunder and under the Notes at such time obtained by all the Lenders at such
time or (b) on account of obligations owing (but not due and payable) to such
Lender hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such obligations owing to such
Lender at such time to (ii) the aggregate amount of the obligations owing (but
not due and payable) to all Lenders hereunder and under the Notes at such time)
of payments on account of the obligations owing (but not due and payable) to all
Lenders hereunder and under the Notes at such time obtained by all of the
Lenders at such time, such Lender shall forthwith purchase from the other
Lenders such interests or participating interests in the obligations due and
payable or owing to them, as the case may be, as shall be necessary to cause
such purchasing Lender to share the excess payment ratably with each of them;
provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each other
Lender shall be rescinded and such other Lender shall repay to the purchasing
Lender the purchase price to the extent of such Lender's ratable share
(according
<PAGE>

                                      41

to the proportion of (i) the purchase price paid to such Lender to (ii) the
aggregate purchase price paid to all Lenders) of such recovery together with an
amount equal to such Lender's ratable share (according to the proportion of (i)
the amount of such other Lender's required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.
Each Borrower agrees that any Lender so purchasing an interest or participating
interest from another Lender pursuant to this Section 2.14 may, to the fullest
extent permitted by law, exercise all its rights of payment (including the right
of set-off) with respect to such interest or participating interest, as the case
may be, as fully as if such Lender were the direct creditor of such Borrower in
the amount of such interest or participating interest, as the case may be.

          SECTION 2.15. Use of Proceeds. The proceeds of the Advances shall be
available (and each Borrower agrees that it shall use such proceeds) to provide
working capital, and for other general corporate purposes of the Borrowers and
their respective Subsidiaries.

          SECTION 2.16. Defaulting Lenders. (a) In the event that, at any one
time, (i) any Lender shall be a Defaulting Lender, (ii) such Defaulting Lender
shall owe a Defaulted Advance to any Borrower and (iii) such Borrower shall be
required to make any payment hereunder or under any other Loan Document to or
for the account of such Defaulting Lender, then such Borrower may, to the
fullest extent permitted by applicable law, set off and otherwise apply the
obligation of such Borrower to make such payment to or for the account of such
Defaulting Lender against the obligation of such Defaulting Lender to make such
Defaulted Advance. In the event that, on any date, any Borrower shall so set off
and otherwise apply its obligation to make any such payment against the
obligation of such Defaulting Lender to make any such Defaulted Advance on or
prior to such date, the amount so set off and otherwise applied by such Borrower
shall constitute for all purposes of this Agreement and the other Loan Documents
an Advance by such Defaulting Lender made on the date of such setoff. Such
Committed Advance shall be considered, for all purposes of this Agreement, to
comprise part of the Committed Borrowing in connection with which such Defaulted
Advance was originally required to have been made pursuant to Section 2.01, even
if the other Committed Advances comprising such Borrowing shall be Eurodollar
Rate Advances on the date such Committed Advance is deemed to be made pursuant
to this subsection (a). Each Borrower shall notify the Administrative Agent at
any time such Borrower exercises its right of set-off pursuant to this
subsection (a) and shall set forth in such notice (A) the name of the Defaulting
Lender and the Defaulted Advance required to be made by such Defaulting Lender
and (B) the amount set off and otherwise applied in respect of such Defaulted
Advance pursuant to this subsection (a). Any portion of such payment otherwise
required to be made by such Borrower to or for the account of such Defaulting
Lender which is paid by such Borrower, after giving effect to the amount set off
and otherwise applied by such Borrower pursuant to this subsection (a), shall be
applied by the Administrative Agent as specified in subsection (b) or (c) of
this Section 2.16.

          (b) In the event that, at any one time, (i) any Lender shall be a
Defaulting Lender, (ii) such Defaulting Lender shall owe a Defaulted Amount to
any Agent or any of the other Lenders and (iii) any Borrower shall make any
payment hereunder or under any other Loan Document to the Administrative Agent
for the account of such Defaulting Lender, then the Administrative Agent may, on
its behalf or on behalf of such other Agents or such other Lenders and to the
fullest extent permitted by applicable law, apply at such time the amount so
paid by such Borrower to or for the account of such Defaulting Lender to the
payment of each such Defaulted Amount to the extent required to pay such
<PAGE>

                                      42

Defaulted Amount. In the event that the Administrative Agent shall so apply any
such amount to the payment of any such Defaulted Amount on any date, the amount
so applied by the Administrative Agent shall constitute for all purposes of this
Agreement and the other Loan Documents payment, to such extent, of such
Defaulted Amount on such date. Any such amount so applied by the Administrative
Agent shall be retained by the Administrative Agent or distributed by the
Administrative Agent to such other Agents or such other Lenders, ratably in
accordance with the respective portions of such Defaulted Amounts payable at
such time to the Administrative Agent, such other Agents and such other Lenders
and, if the amount of such payment made by such Borrower shall at such time be
insufficient to pay all Defaulted Amounts owing at such time to the
Administrative Agent, such other Agents and such other Lenders, in the following
order of priority:

          (i) first, to the Agents for any Defaulted Amounts then owing to the
     Agents, ratably in accordance with such respective Defaulted Amounts then
     owing to the Agents;

          (ii) second, to the Issuing Bank for any amount then due and payable
     to it, in its capacity as such, by such Defaulting Lender, ratably in
     accordance with such amounts then due and payable to such Issuing Bank; and

          (iii) third, to any other Lenders for any Defaulted Amounts then
     owing to such other Lenders, ratably in accordance with such respective
     Defaulted Amounts then owing to such other Lenders.

Any portion of such amount paid by such Borrower for the account of such
Defaulting Lender remaining, after giving effect to the amount applied by the
Administrative Agent pursuant to this subsection (b), shall be applied by the
Administrative Agent as specified in subsection (c) of this Section 2.16.

          (c) In the event that, at any one time, (i) any Lender shall be a
Defaulting Lender, (ii) such Defaulting Lender shall not owe a Defaulted Advance
or a Defaulted Amount and (iii) any Borrower, any Agent or any other Lender
shall be required to pay or distribute any amount hereunder or under any other
Loan Document to or for the account of such Defaulting Lender, then such
Borrower or such Agent or such other Lender shall pay such amount to the
Administrative Agent to be held by the Administrative Agent, to the fullest
extent permitted by applicable law, in escrow or the Administrative Agent shall,
to the fullest extent permitted by applicable law, hold in escrow such amount
otherwise held by it. Any funds held by the Administrative Agent in escrow under
this subsection (c) shall be deposited by the Administrative Agent in an account
with MGT, in the name and under the control of the Administrative Agent, but
subject to the provisions of this subsection (c). The terms applicable to such
account, including the rate of interest payable with respect to the credit
balance of such account from time to time, shall be MGT's standard terms
applicable to escrow accounts maintained with it. Any interest credited to such
account from time to time shall be held by the Administrative Agent in escrow
under, and applied by the Administrative Agent from time to time in accordance
with the provisions of, this subsection (c). The Administrative Agent shall, to
the fullest extent permitted by applicable law, apply all funds so held in
escrow from time to time to the extent necessary to make any Advances required
to be made by such Defaulting Lender and to pay any amount payable by such
Defaulting Lender hereunder and under the other Loan Documents to the
Administrative Agent or any other Lender, as and when such Advances or amounts
are required to be made or paid and, if the amount so held in
<PAGE>

                                      43

escrow shall at any time be insufficient to make and pay all such Advances and
amounts required to be made or paid at such time, in the following order of
priority:

          (i) first, to the Agents for any amounts then due and payable by such
     Defaulting Lender to the Agents hereunder, ratably in accordance with such
     amounts then due and payable to the Agents;

          (ii) second, to the Issuing Bank for any amount then due and payable
     to it, in its capacity as such, by such Defaulting Lender, ratably in
     accordance with such amounts then due and payable to such Issuing Bank;

          (iii) third, to any other Lenders for any amount then due and payable
     by such Defaulting Lender to such other Lenders hereunder, ratably in
     accordance with such respective amounts then due and payable to such other
     Lenders; and

          (iv) fourth, to such Borrower for any Advance then required to be made
     by such Defaulting Lender pursuant to the Commitment of such Defaulting
     Lender.

In the event that any Lender that is a Defaulting Lender shall, at any time,
cease to be a Defaulting Lender, any funds held by the Administrative Agent in
escrow at such time with respect to such Lender shall be distributed by the
Administrative Agent to such Lender and applied by such Lender to the
obligations owing to such Lender at such time under this Agreement and the other
Loan Documents ratably in accordance with the respective amounts of such
obligations outstanding at such time.

          (d) The rights and remedies against a Defaulting Lender under this
Section 2.16 are in addition to other rights and remedies that such Borrower may
have against such Defaulting Lender with respect to any Defaulted Advance and
that any Agent or any Lender may have against such Defaulting Lender with
respect to any Defaulted Amount.

          SECTION 2.17. Replacement of Affected Lender. At any time any Lender
is an Affected Lender, the Borrowers may replace such Affected Lender as a party
to this Agreement with one or more other Lenders and/or Eligible Assignees, and
upon notice from the Borrowers such Affected Lender shall assign pursuant to an
Assignment and Acceptance, and without recourse or warranty, its WC Commitment,
its Committed Advances, its Committed Note, its Letter of Credit Advances, its
obligations to fund Letter of Credit payments, its participation in, and its
rights and obligations with respect to, Letters of Credit, and all of its other
rights and obligations hereunder to such other Lenders and/or Eligible Assignees
for a purchase price equal to the sum of the principal amount of the Committed
Advances so assigned, all accrued and unpaid interest thereon, such Affected
Lender's ratable share of all accrued and unpaid fees payable pursuant to
Section 2.09, any amounts payable pursuant to Section 9.04(c) as a result of
such Affected Lender receiving payment of any Eurodollar Rate Advance prior to
the end of an Interest Period therefor (assuming for such purpose that receipt
of payment pursuant to such Assignment and Acceptance constitutes payment of
such Eurodollar Rate Advances) and all other obligations owed to such Affected
Lender hereunder.

           SECTION 2.18. Certain Provisions Relating to the Issuing Bank and
Letters of Credit.

<PAGE>

                                      44

          (a) Letter of Credit Agreements. The representations, warranties and
covenants by the Borrowers under, and the rights and remedies of the Issuing
Bank under, any Letter of Credit Agreement relating to any Letter of Credit are
in addition to, and not in limitation or derogation of, representations,
warranties and covenants by the Borrowers under, and rights and remedies of the
Issuing Bank and the Lenders under, this Agreement and applicable law. Each
Account Party acknowledges and agrees that all rights of the Issuing Bank under
any Letter of Credit Agreement shall inure to the benefit of each Lender to the
extent of its Letter of Credit Participating Interest Commitment as fully as if
such Lender was a party to such Letter of Credit Agreement. In the event of any
inconsistency between the terms of this Agreement and any Letter of Credit
Agreement, this Agreement shall prevail.

          (b) Certain Provisions. The Issuing Bank shall have no duties or
responsibilities to any Agent or any Lender except those expressly set forth in
this Agreement, and no implied duties or responsibilities on the part of the
Issuing Bank shall be read into this Agreement or shall otherwise exist. The
duties and responsibilities of the Issuing Bank to the Lenders and the Agents
under this Agreement and the other Loan Documents shall be mechanical and
administrative in nature, and the Issuing Bank shall not have a fiduciary
relationship in respect of any Agent, any Lender or any other Person. The
Issuing Bank shall not be liable for any action taken or omitted to be taken by
it under or in connection with this Agreement or any Loan Document or Letter of
Credit, except as specifically set forth in Section 9.09. The Issuing Bank shall
not be under any obligation to ascertain, inquire or give any notice to any
Agent or any Lender relating to (i) the performance or observance of any of the
terms or conditions of this Agreement or any other Loan Document on the part of
any Borrower, (ii) the business, operations, condition (financial or otherwise)
or prospects of the Borrowers or any other Person, or (iii) the existence of any
Default. The Issuing Bank shall not be under any obligation, either initially or
on a continuing basis, to provide any Agent or any Lender with any notices,
reports or information of any nature, whether in its possession presently or
hereafter, except for such notices, reports and other information expressly
required by this Agreement to be so furnished. The Issuing Bank shall not be
responsible for the execution, delivery, effectiveness, enforceability,
genuineness, validity or adequacy of this Agreement or any Loan Document.

          (c) Administration. The Issuing Bank may rely upon any notice or other
communication of any nature (written or oral, including but not limited to
telephone conversations, whether or not such notice or other communication is
made in a manner permitted or required by this Agreement or any other Loan
Document) purportedly made by or on behalf of the proper party or parties, and
the Issuing Bank shall not have any duty to verify the identity or authority of
any Person giving such notice or other communication. The Issuing Bank may
consult with legal counsel (including, without limitation, in-house counsel for
the Issuing Bank or in-house or other counsel for the Borrowers), independent
public accountants and any other experts selected by it from time to time, and
the Issuing Bank shall not be liable for any action taken or omitted to be taken
in good faith in accordance with the advice of such counsel, accountants or
experts. Whenever the Issuing Bank shall deem it necessary or desirable that a
matter be proved or established with respect to any Borrower, Agent or Lender,
such matter may be established by a certificate of such Borrower, Agent or
Lender, as the case may be, and the Issuing Bank may conclusively rely upon such
certificate. The Issuing Bank shall not be deemed to have any knowledge or
notice of the occurrence of any Default unless the Issuing Bank has received
<PAGE>

                                      45

notice from a Lender, an Agent or a Borrower referring to this Agreement,
describing such Default, and stating that such notice is a "notice of default".

          (d) Indemnification of Issuing Bank by Lenders. Each Lender hereby
agrees to reimburse and indemnify the Issuing Bank and each of its directors,
officers, employees and agents (to the extent not reimbursed by the Borrowers
and without limitation of the obligations of the Borrowers to do so), in
accordance with its Pro Rata Share, from and against any and all amounts,
losses, liabilities, claims, damages, expenses, obligations, penalties, actions,
judgments, suits, costs or disbursements of any kind or nature (including,
without limitation, the reasonable fees and disbursements of counsel (other than
in-house counsel) for the Issuing Bank or such other Person in connection with
any investigative, administrative or judicial proceeding commenced or
threatened, whether or not the Issuing Bank or such other Person shall be
designated a party thereto) that may at any time be imposed on, incurred by or
asserted against the Issuing Bank, in its capacity as such, or such other
Person, as a result of, or arising out of, or in any way related to or by reason
of, this Agreement, any other Loan Document or any Letter of Credit, any
transaction from time to time contemplated hereby or thereby, or any transaction
financed in whole or in part or directly or indirectly with the proceeds of any
Letter of Credit, provided, that no Lender shall be liable for any portion of
such amounts, losses, liabilities, claims, damages, expenses, obligations,
penalties, actions, judgments, suits, costs or disbursements to the extent
resulting from the gross negligence or willful misconduct of the Issuing Bank or
such other Person, as finally determined by a court of competent jurisdiction.

          (e) Issuing Bank in its Individual Capacity. With respect to its
Commitments and the obligations owing to it, the Issuing Bank shall have the
same rights and powers under this Agreement and each other Loan Document as any
other Lender and may exercise the same as though it were not the Issuing Bank,
and the term "Lenders" and like terms shall include the Issuing Bank in its
individual capacity as such. The Issuing Bank and its affiliates may, without
liability to account to any Person, make loans to, accept deposits from, acquire
debt or equity interests in, act as trustee under indentures of, act as agent
under other credit facilities for, and engage in any other business with, any
Borrower and any stockholder, subsidiary or affiliate of any Borrower, as though
the Issuing Bank were not the Issuing Bank hereunder.

          SECTION 2.19. Downgrade Event with Respect to a Lender. (a) If a
Downgrade Event shall occur with respect to (i) any Downgraded Lender or (ii)
any other Lender and, as a result thereof, such other Lender becomes a
Downgraded Lender, then the Issuing Bank may, by notice to such Downgraded
Lender, the Administrative Agent and the Parent within 45 days after such
Downgrade Event (any such notice, a "Downgrade Notice"), request that the
Borrowers use reasonable efforts to replace such Lender as a party to this
Agreement pursuant to Section 2.17. If such Lender is not so replaced within 45
days after receipt by the Borrowers of such Downgrade Notice, then: (x) if no
Default exists and such Downgraded Lender has not exercised its right to remain
a Lender hereunder pursuant to clause (y) below, the following shall occur
concurrently:

          (A) the Committed Facility shall be reduced by the amount of the WC
     Commitment of such Downgraded Lender,
<PAGE>

                                      46

          (B) the Borrowers shall prepay all amounts owed to such Downgraded
     Lender hereunder or in connection herewith (including any amount payable
     pursuant to Section 9.04(c) as a result of such Downgraded Lender receiving
     payment of any Eurodollar Rate Advance prior to the end of an Interest
     Period therefor),

          (C) if, upon the reduction of the Committed Facility under clause (A)
     above and the payment under clause (B) above, the sum of the principal
     amount of all Advances plus the Available Amount of all Letters of Credit
     (valuing the Available Amount of, and Letter of Credit Advances of the
     Issuing Bank in respect of, any Non-Dollar Letter of Credit at the Dollar
     Equivalent thereof as of the time of such calculation) would exceed the
     amount of the Committed Facility, then the Borrowers will immediately
     eliminate such excess by prepaying Committed Advances and/or causing the
     Available Amount of one or more Letters of Credit to be reduced, and

          (D) upon completion of the events described in clauses (A), (B) and
     (C) above, such Downgraded Lender shall cease to be a party to this
     Agreement;

or (y) if a Default exists or, not later than 30 days after receipt of such
Downgrade Notice, such Downgraded Lender notifies the Borrowers, the Issuing
Bank and the Administrative Agent that such Downgraded Lender elects to provide
(in a manner reasonably satisfactory to the Issuing Bank) cash collateral to the
Issuing Bank for (or if such Downgraded Lender is unable, without regulatory
approval, to provide cash collateral, a letter of credit reasonably satisfactory
to the Issuing Bank covering) its contingent obligations to reimburse the
Issuing Bank for any payment under any Letter of Credit as provided in Section
2.04(e) (its "LC Participation Obligations"), such Downgraded Lender shall be
obligated to (and each Lender agrees that in such circumstances it will) deliver
to the Issuing Bank (I) immediately, cash collateral (or, as aforesaid, a letter
of credit) in an amount equal to its LC Participation Obligations and (II) from
time to time thereafter (so long as it is a Downgraded Lender), cash collateral
(or, as aforesaid, a letter of credit) sufficient to cover any increase in its
LC Participation Obligations as a result of any proposed issuance of or increase
in a Letter of Credit. Any funds provided by a Downgraded Lender for such
purpose shall be maintained in a segregated deposit account in the name of the
Issuing Bank at the Issuing Bank's principal office in the United States (a
"Downgrade Account"). The funds so deposited in any Downgrade Account shall be
used only in accordance with the following provisions of this Section 2.19.

          (b) If any Downgraded Lender shall be required to fund its
participation in a payment under a Letter of Credit pursuant to Section 2.04(e),
then the Issuing Bank shall apply the funds deposited in the applicable
Downgrade Account by such Downgraded Lender to fund such participation. The
deposit of funds in a Downgrade Account by any Downgraded Lender shall not
constitute a Letter of Credit Advance (and the Downgraded Lender shall not be
entitled to interest on such funds except as provided in clause (c) below)
unless and until (and then only to the extent that) such funds are used by the
Issuing Bank to fund the participation of such Downgraded Lender pursuant to the
first sentence of this clause (b).

          (c) Funds in a Downgrade Account shall be invested in such investments
as may be agreed between the Issuing Bank and the applicable Downgraded Lender,
and the income from such
<PAGE>

                                      47

investments shall be distributed to such Downgraded Lender from time to time
(but not less often than monthly) as agreed between the Issuing Bank and such
Downgraded Lender. The Issuing Bank will (i) from time to time, upon request by
a Downgraded Lender, release to such Downgraded Lender any amount on deposit in
the applicable Downgrade Account in excess of the LC Participation Obligations
of such Downgraded Lender and (ii) upon the earliest to occur of (A) the
effective date of any replacement of such Downgraded Lender as a party hereto
pursuant to an Assignment and Acceptance, (B) the termination of such Downgraded
Lender's WC Commitment pursuant to clause (a) or (C) the first Letter of Credit
Business Day after receipt by the Issuing Bank of evidence (reasonably
satisfactory to the Issuing Bank) that such Lender is no longer a Downgraded
Lender, release to such Lender all amounts on deposit in the applicable
Downgrade Account.

          (d) At any time any Downgraded Lender is required to maintain cash
collateral with the Issuing Bank pursuant to this Section 2.19, the Issuing Bank
shall have no obligation to issue or increase any Letter of Credit unless such
Downgraded Lender has provided sufficient funds as cash collateral to the
Issuing Bank to cover all LC Participation Obligations of such Downgraded Lender
(including in respect of the Letter of Credit to be issued or increased).

          SECTION 2.20. Downgrade Event or Other Event with Respect to the
Issuing Bank. At any time that the Issuing Bank is a Downgraded Lender or at
such other times as the Issuing Bank and the Borrowers may agree, the Borrowers
may, upon not less than three Letter of Credit Business Days' notice to the
Issuing Bank (in this Section sometimes referred to as the "Old Issuing Bank")
and the Administrative Agent, designate any Lender (so long as such Lender has
agreed to such designation) as an additional "Issuing Bank" hereunder (in this
Section sometimes referred to as the "New Issuing Bank"). Such notice shall
specify the date (which shall be a Letter of Credit Business Day) on which the
New Issuing Bank is to become an additional "Issuing Bank" hereunder. From and
after such date, all new Letters of Credit requested to be issued hereunder
shall be issued by the New Issuing Bank. From and after such date (and until the
first date on which no Letters of Credit issued by the Old Issuing Bank are
outstanding and no reimbursement obligations are owed to the Old Issuing Bank,
on which date the Old Issuing Bank shall cease to be an Issuing Bank hereunder),
references in this Agreement to the "Issuing Bank" shall be deemed to refer (a)
to the Old Issuing Bank, with respect to Letters of Credit issued by it, (b) to
the New Issuing Bank, with respect to Letters of Credit issued or to be issued
by it, and (c) to each of the Old Issuing Bank and the New Issuing Bank, with
respect to other matters. Notwithstanding the fact that an Old Issuing Bank
shall cease to be an "Issuing Bank" hereunder, all of the exculpatory,
indemnification and similar provisions hereof in favor of the "Issuing Bank"
shall inure to such Old Issuing Bank's benefit as to any actions taken or
omitted by it while it was an "Issuing Bank" under this Agreement. The Borrowers
agree that after any appointment of a New Issuing Bank hereunder, the Borrowers
shall use reasonable commercial efforts to promptly replace (or otherwise cause
the applicable beneficiary to return to the Old Issuing Bank for cancellation)
each letter of credit issued by the Old Issuing Bank.

          SECTION 2.21. Non-Dollar Letters of Credit. (a) The Borrowers, the
Administrative Agent, the Issuing Bank and the Lenders (i) agree that the
Issuing Bank may (in its sole discretion) issue Letters of Credit ("Non-Dollar
Letters of Credit") in currencies other than U.S. dollars and (ii) further agree
as follows with respect to such Non-Dollar Letters of Credit:
<PAGE>

                                      48

          (b) The Borrowers agree that their reimbursement obligations under
     Section 2.05(b) and any resulting Letter of Credit Advance, in each case in
     respect of a drawing under any Non-Dollar Letter of Credit, (i) shall be
     payable in Dollars at the Dollar Equivalent of such obligation in the
     currency in which such Non-Dollar Letter of Credit was issued (determined
     on the date of payment) and (ii) shall bear interest at a rate per annum
     equal to (A) in the case of amounts owed to the Issuing Bank, the sum of
     the Overnight Rate plus the Applicable Margin for Eurodollar Rate Advances
     plus 2% and (B) in the case of amounts owing to any other Lender, the Base
     Rate plus 2%, in each case for each day from and including the date on
     which the applicable Account Party is to reimburse the Issuing Bank
     pursuant to Section 2.05(b) to but excluding the date such obligation is
     paid in full.

          (c) Each Lender agrees that its obligation to pay the Issuing Bank
     such Lender's Pro Rata Share of the unreimbursed portion of any payment by
     the Issuing Bank under Section 2.04(e) in respect of a drawing under any
     Non-Dollar Letter of Credit shall be payable in Dollars at the Dollar
     Equivalent of such obligation in the currency in which such Non-Dollar
     Letter of Credit was issued (calculated on the date of payment) (and any
     such amount which is not paid when due shall bear interest at a rate per
     annum equal to the Overnight Rate plus, beginning on the third Business Day
     after such amount was due, the Applicable Margin for Eurodollar Rate
     Advances).

          (d) For purposes of determining whether there is availability for the
     Borrowers to request any Advance or to request the issuance or extension
     of, or any increase in, any Letter of Credit, the Dollar Equivalent amount
     of the Available Amount of each Non-Dollar Letter of Credit shall be
     calculated as of the date such Advance is to be made or such Letter of
     Credit is to be issued, extended or increased.

          (e) For purposes of determining the letter of credit fee under Section
     2.09(d), the Dollar Equivalent amount of the Available Amount of any Non-
     Dollar Letter of Credit shall be determined on each of (1) the date of an
     issuance, extension or change in the Available Amount of such Non-Dollar
     Letter of Credit, (2) the date of any payment by the Issuing Bank in
     respect of a drawing under such Non-Dollar Letter of Credit, (3) the last
     day of each calendar month and (4) each day on which the WC Commitments are
     to be reduced pursuant to Section 2.06 (it being understood that no
     requested reduction shall be permitted to the extent that, after making a
     calculation pursuant this clause (e), such reduction would be greater than
     the unused portion of the WC Commitments).

          (f) If, on the last day of any calendar month, the sum of the
     principal amount of all Advances plus the Available Amount of all Letters
     of Credit (valuing the Available Amount of, and Letter of Credit Advances
     in respect of, any Non-Dollar Letter of Credit at the Dollar Equivalent
     thereof as of such day) would exceed the amount of the Committed Facility,
     then the Borrowers will immediately eliminate such excess by prepaying
     Committed Advances and/or causing the Available Amount of one or more
     Letters of Credit to be reduced.

          (g) If, for the purposes of obtaining judgment in any court, it is
     necessary to convert a sum due in respect of any Non-Dollar Letter of
     Credit in one currency into another currency,
<PAGE>

                                      49

     the rate of exchange used shall be that at which in accordance with its
     normal banking procedures the Issuing Bank could purchase the first
     currency with such other currency on the Letter of Credit Business Day
     preceding that on which final judgment is given. The obligation of any
     Account Party in respect of any such sum due from it to the Issuing Bank or
     any Lender hereunder shall, notwithstanding any judgment in a currency (the
     "Judgment Currency") other than that in which such sum is denominated in
     accordance with the applicable provisions of this Agreement and the
     applicable Non-Dollar Letter of Credit (the "Agreement Currency"), be
     discharged only to the extent that on the Letter of Credit Business Day
     following receipt by the Issuing Bank or such Lender of any sum adjudged to
     be so due in the Judgment Currency, the Issuing Bank or such Lender may in
     accordance with normal banking procedures purchase the Agreement Currency
     with the Judgment Currency. If the amount of the Agreement Currency so
     purchased is less than the sum originally due to the Issuing Bank or such
     Lender in the Agreement Currency, the applicable Account Party agrees, as a
     separate obligation and notwithstanding any such judgment, to indemnify the
     Issuing Bank or such Lender, as applicable, against such loss. If the
     amount of the Agreement Currency so purchased is greater than the sum
     originally due to the Issuing Bank or such Lender in such currency, the
     Issuing Bank and each Lender agrees to return the amount of any excess to
     the applicable Account Party (or to any other Person who may be entitled
     thereto under applicable law).

          (h) For purposes of this Section, "Dollar Equivalent" means, in
     relation to an amount denominated in a currency other than U.S. dollars,
     the amount of U.S. dollars which could be purchased with such amount by the
     Issuing Bank in accordance with its customary procedures (and giving effect
     to any transaction costs) at the quoted foreign exchange spot rate of the
     Issuing Bank at the time of determination; and "Overnight Rate" means, for
     any day, the rate of interest per annum at which overnight deposits in the
     applicable currency, in an amount approximately equal to the amount with
     respect to which such rate is being determined, would be offered for such
     day by the Issuing Bank to major banks in the London or other applicable
     offshore interbank market. The Overnight Rate for any day which is not a
     Letter of Credit Business Day (or on which dealings are not carried on in
     the applicable offshore interbank market) shall be the Overnight Rate for
     the immediately preceding Letter of Credit Business Day.

                                  ARTICLE III

           CONDITIONS OF LENDING AND ISSUANCES OF LETTERS OF CREDIT

          SECTION 3.01. Conditions Precedent to Initial Extension of Credit. The
obligation of each Lender to make a Committed Advance or of the Issuing Bank to
issue a Letter of Credit on the occasion of the Initial Extension of Credit
hereunder is subject to the satisfaction of the following conditions precedent
before or concurrently with the Initial Extension of Credit:

          (i) The Administrative Agent shall have received on or before the day
     of the Initial Extension of Credit the following, each dated such day
     (unless otherwise specified), in form and
<PAGE>

                                      50

     substance reasonably satisfactory to the Administrative Agent (unless
     otherwise specified) and (except for the Committed Notes) in sufficient
     copies for each Lender:

               (A) The Committed Notes payable to the order of the Lenders.

               (B) Certified copies of the resolutions of the Board of Directors
          of each Loan Party approving the transactions contemplated by the Loan
          Documents and each Loan Document to which it is or is to be a party,
          and of all documents evidencing other necessary corporate action and
          governmental and other third party approvals and consents, if any,
          with transactions contemplated by the Loan Documents and each Loan
          Document to which it is or is to be a party.

               (C) A copy of a certificate of the Secretary of State or other
          appropriate official of the jurisdiction of incorporation of (x) ACE
          INA, dated reasonably near the date of the Initial Extension of
          Credit, certifying (A) as to a true and correct copy of the charter of
          ACE INA and each amendment thereto on file in such Secretary's office
          and (B) that (1) such amendments are the only amendments to ACE INA's
          charter on file in such Secretary's office, (2) ACE INA has paid all
          franchise taxes to the date of such certificate and (C) ACE INA is
          duly incorporated and in good standing or presently subsisting under
          the laws of the State of the jurisdiction of its incorporation and (y)
          each other Loan Party, dated reasonably near the Initial Extension of
          Credit, certifying as to the good standing (or existence) of such Loan
          Party.

               (D) A certificate of each Loan Party, signed on behalf of such
          Loan Party by its President or a Vice President and its Secretary or
          any Assistant Secretary, dated the date of the Initial Extension of
          Credit (the statements made in which certificate shall be true on and
          as of the date of the Initial Extension of Credit), certifying as to
          (1) in the case of ACE INA, the absence of any amendments to the
          charter of such Loan Party since the date of the Secretary of State's
          certificate referred to in Section 3.01(a)(i)(C), (2) a true and
          correct copy of the bylaws (in the case of ACE INA) or the
          constitutional documents (in the case of each Loan Party) of such Loan
          Party as in effect on the date on which the resolutions referred to in
          Section 3.01(a)(i)(B) were adopted and on the date of the Initial
          Extension of Credit, (3) the due incorporation and good standing or
          valid existence of such Loan Party as a corporation organized under
          the laws of the jurisdiction of its incorporation, and the absence of
          any proceeding for the dissolution or liquidation of such Loan Party,
          (4) the truth of the representations and warranties contained in the
          Loan Documents as though made on and as of the date of the Initial
          Extension of Credit and (5) the absence of any event occurring and
          continuing, or resulting from the Initial Extension of Credit, that
          constitutes a Default.

               (E) A certificate of the Secretary or an Assistant Secretary of
          each Loan Party certifying the names and true signatures of the
          officers of such Loan Party authorized to sign each Loan Document to
          which it is or is to be a party and the other documents to be
          delivered hereunder and thereunder.

<PAGE>

                                      51

               (F) A favorable opinion of (1) Maples and Calder, Cayman Islands
          counsel for the Parent, in substantially the form of Exhibit D-1
          hereto and as to such other matters as any Lender through the
          Administrative Agent may reasonably request, (2) Mayer, Brown & Platt,
          New York counsel for the Loan Parties, in substantially the form of
          Exhibit D-2 hereto and as to such other matters as any Lender through
          the Administrative Agent may reasonably request, and (3) Conyers Dill
          & Pearman, Bermuda counsel for ACE Bermuda and Tempest, in
          substantially the form of Exhibit D-3 hereto and as to such other
          matters as any Lender through the Administrative Agent may reasonably
          request.

          (ii) (x) No development or change occurring after January 11, 1999,
     and no information becoming known after such date, that results in a
     material change in the planned post-Acquisition corporate and
     capitalization structure of the Parent or in the capitalization structure
     of the Parent's subsidiaries contemplated in the Pre-Commitment Information
     and (y) the Lenders shall be reasonably satisfied with the corporate and
     legal structure and capitalization of each Loan Party (other than the
     Parent), including the terms and conditions of the constitutional documents
     of each such Person and of each material agreement or instrument relating
     to such structure.

          (iii)  There shall have occurred no material adverse change since
     September 30, 1998 in the business, financial condition, operations or
     properties of (i) CIGNAP&C or (ii) the Parent and its Subsidiaries, taken
     as a whole.

          (iv) There shall exist no action, suit, investigation, litigation or
     proceeding affecting any Loan Party or any of its Subsidiaries pending or
     threatened before any court, governmental agency or arbitrator that (x)
     could be reasonably expected to have a Material Adverse Effect or (y) would
     reasonably be expected to materially adversely affect the legality,
     validity or enforceability of any Loan Document or the other transactions
     contemplated by the Loan Documents.

          (v) The Pre-Commitment Information shall be true and correct in all
     material aspects, and no additional information shall have come to the
     attention of the Administrative Agent or the Lenders that is inconsistent
     in any material respect with the Pre-Commitment Information or that could
     reasonably be expected to have a Material Adverse Effect.

          (vi) No development or change occurring after January 11, 1999, and no
     information becoming known after such date, that (x) results in or could
     reasonably be expected to result in a material change in, or material
     deviation from, the Pre-Commitment Information that is or could reasonably
     be expected to be materially adverse to any Borrower or any of its
     Subsidiaries or materially adverse to the Lenders or (y) has had or could
     reasonably be expected to have a Material Adverse Effect.

          (vii)  The Borrowers shall have paid all accrued fees of the Agents
     and the Lenders and all accrued expenses of the Agents (including the
     accrued fees and expenses of counsel to
<PAGE>

                                      52

     the Administrative Agent and local counsel on behalf of all of the
     Lenders), in each case to the extent then due and payable.

          SECTION 3.02. Conditions Precedent to Each Committed Borrowing and
Issuance, Extension or Increase of a Letter of Credit. The obligation of each
Lender to make a Committed Advance on the occasion of each Committed Borrowing
(including the initial Committed Borrowing), and the obligation of the Issuing
Bank to issue, extend or increase a Letter of Credit (including the initial
issuance), shall be subject to the further conditions precedent that on the date
of such Committed Borrowing or issuance, extension or increase (a) the following
statements shall be true (and each of the giving of the applicable Notice of
Committed Borrowing or request for issuance, extension, or increase, and the
acceptance by the Borrower that requested such Committed Borrowing of the
proceeds of such Committed Borrowing or of such issuance, extension or increase
shall constitute a representation and warranty by such Borrower that both on the
date of such notice and on the date of such Committed Borrowing or such
issuance, extension or increase such statements are true):

          (i) the representations and warranties contained in each Loan Document
     are correct in all material respects on and as of such date, before and
     after giving effect to such Committed Borrowing and to the application of
     the proceeds therefrom or such issuance, extension or increase, as though
     made on and as of such date, other than any such representations or
     warranties that, by their terms, refer to a specific date other than the
     date of such Committed Borrowing or the date of such issuance, extension or
     increase, in which case as of such specific date; and

          (ii) no Default has occurred and is continuing, or would result from
     such Committed Borrowing or the application of the proceeds therefrom or
     from such issuance, extension or increase;

and (b) the Administrative Agent shall have received such other approvals,
opinions or documents as any Lender or the Issuing Bank through the
Administrative Agent may reasonably request.

          SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing.
The obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (i) the Administrative Agent shall have received the written confirmatory
Notice of Competitive Bid Borrowing with respect thereto, and (ii) on the date
of such Competitive Bid Borrowing the following statements shall be true (and
each of the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by the Borrower that requested such Competitive Bid Borrowing of the
proceeds of such Competitive Bid Borrowing shall constitute a representation and
warranty by such Borrower that on the date of such Competitive Bid Borrowing
such statements are true):
<PAGE>

                                      53

          (a) the representations and warranties contained in Section 4.01 are
     correct in all material respects on and as of the date of such Competitive
     Bid Borrowing, before and after giving effect to such Competitive Bid
     Borrowing and to the application of the proceeds therefrom, as though made
     on and as of such date, other than any such representations or warranties
     that, by their terms, refer to a specific date other than the date of such
     Competitive Bid Borrowing, in which case as of such specific date, and

          (b) no Default has occurred and is continuing, or would result from
     such Competitive Bid Borrowing or from the application of the proceeds
     therefrom.

          SECTION 3.04.  Determinations Under Section 3.01.  For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Administrative Agent responsible for the transactions contemplated by the
Loan Documents shall have received notice from such Lender prior to the Initial
Extension of Credit specifying its objection thereto and, if the Initial
Extension of Credit consists of a Borrowing, such Lender shall not have made
available to the Administrative Agent such Lender's ratable portion of such
Committed Borrowing.

                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES

          SECTION 4.01. Representations and Warranties of the Borrowers. Each
Borrower represents and warrants as follows:

          (a) Each Loan Party and each of its Subsidiaries (i) is duly organized
     or formed, validly existing and, to the extent such concept applies, in
     good standing under the laws of the jurisdiction of its incorporation or
     formation, (ii) is duly qualified and in good standing as a foreign
     corporation or other entity in each other jurisdiction in which it owns or
     leases property or in which the conduct of its business requires it to so
     qualify or be licensed except where the failure to so qualify or be
     licensed would not be reasonably likely to have a Material Adverse Effect
     and (iii) has all requisite power and authority (including, without
     limitation, all governmental licenses, permits and other approvals) to own
     or lease and operate its properties and to carry on its business as now
     conducted and as proposed to be conducted, except where the failure to have
     any license, permit or other approval would not be reasonably likely to
     have a Material Adverse Effect. All of the outstanding Equity Interests in
     each Borrower (other than the Parent) have been validly issued, are fully
     paid and non-assessable and (except for any Preferred Securities issued
     after the date of this Agreement) are owned, directly or indirectly, by the
     Parent free and clear of all Liens.

          (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate
     list of all Subsidiaries of each Loan Party.
<PAGE>

                                      54

          (c) The execution, delivery and performance by each Loan Party of each
     Loan Document to which it is or is to be a party and the consummation of
     the transactions contemplated by the Loan Documents, are within such Loan
     Party's corporate powers, have been duly authorized by all necessary
     corporate action, and do not (i) contravene such Loan Party's
     constitutional documents, (ii) violate any law, rule, regulation
     (including, without limitation, Regulation X of the Board of Governors of
     the Federal Reserve System), order, writ, judgment, injunction, decree,
     determination or award, (iii) conflict with or result in the breach of, or
     constitute a default under, any contract, loan agreement, indenture,
     mortgage, deed of trust, lease or other instrument binding on or affecting
     any Loan Party, any of its Subsidiaries or any of their properties or (iv)
     except for the Liens created under the Loan Documents, result in or require
     the creation or imposition of any Lien upon or with respect to any of the
     properties of any Loan Party or any of its Subsidiaries. No Loan Party or
     any of its Subsidiaries is in violation of any such law, rule, regulation,
     order, writ, judgment, injunction, decree, determination or award or in
     breach of any such contract, loan agreement, indenture, mortgage, deed of
     trust, lease or other instrument, the violation or breach of which could be
     reasonably likely to have a Material Adverse Effect.

          (d) No authorization or approval or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or any other
     third party is required for (i) the due execution, delivery, recordation,
     filing or performance by any Loan Party of any Loan Document to which it is
     or is to be a party or the other transactions contemplated by the Loan
     Documents (other than the Acquisition), or (ii) the exercise by any Agent
     or any Lender of its rights under the Loan Documents, except for the
     authorizations, approvals, actions, notices and filings which have been
     duly obtained, taken, given or made and are in full force and effect.

          (e) This Agreement has been, and each other Loan Document when
     delivered hereunder will have been, duly executed and delivered by each
     Loan Party party thereto. This Agreement is, and each other Loan Document
     when delivered hereunder will be, the legal, valid and binding obligation
     of each Loan Party party thereto, enforceable against such Loan Party in
     accordance with its terms.

          (f) There is no action, suit, investigation, litigation or proceeding
     affecting any Loan Party or any of its Subsidiaries, including any
     Environmental Action, pending or threatened before any court, governmental
     agency or arbitrator that (i) could be reasonably likely to have a Material
     Adverse Effect or (ii) would reasonably be expected to affect the legality,
     validity or enforceability of any Loan Document or the transactions
     contemplated by the Loan Documents.

          (g) The Consolidated balance sheets of the Parent and its Subsidiaries
     as at September 30, 1998, and the related Consolidated statements of income
     and of cash flows of the Parent and its Subsidiaries for the fiscal year
     then ended, accompanied by an unqualified opinion of PricewaterhouseCoopers
     LLP, independent public accountants, and the Consolidated balance sheets of
     the Parent and its Subsidiaries as at December 31, 1998, and the related
     Consolidated statements of income and cash flows of the Parent and its
     Subsidiaries for the three months then ended, duly certified by the Chief
     Financial Officer of the Parent, copies of which have been furnished to
     each Lender, fairly present, subject, in the case of said balance sheet as
     at
<PAGE>

                                      55

     December 31, 1998, and said statements of income and cash flows for the
     three months then ended, to year-end audit adjustments, the Consolidated
     financial condition of the Parent and its Subsidiaries as at such dates and
     the Consolidated results of operations of the Parent and its Subsidiaries
     for the periods ended on such dates, all in accordance with generally
     accepted accounting principles applied on a consistent basis (subject, in
     the case of the December 31, 1998 balance sheet and statements, to the
     absence of footnotes), and since December 31, 1998, there has been no
     Material Adverse Change.

          (h) The Consolidated forecasted balance sheet, statements of income
     and statements of cash flows of the Parent and its Subsidiaries contained
     in the Information Memorandum were prepared in good faith on the basis of
     the assumptions stated therein, which assumptions were fair in light of the
     conditions existing at the time of delivery of such forecasts, and
     represented, at the time of delivery, the Parent's best estimate of its
     future financial performance.

          (i) Neither the Information Memorandum nor any other written
     information, exhibit or report furnished by or on behalf of any Loan Party
     to any Agent or any Lender in connection with the negotiation and
     syndication of the Loan Documents or pursuant to the terms of the Loan
     Documents contained any untrue statement of a material fact or omitted to
     state a material fact necessary to make the statements made therein not
     misleading as at the date it was dated (or if not dated, so delivered).

          (j) None of the Borrowers is engaged in the business of extending
     credit for the purpose of purchasing or carrying Margin Stock, and no
     proceeds of any Advance or drawings under any Letter of Credit will be used
     to purchase or carry any Margin Stock or to extend credit to others for the
     purpose of purchasing or carrying any Margin Stock.

          (k) Neither any Loan Party nor any of its Subsidiaries is an
     "investment company", or an "affiliated person" of, or "promoter" or
     "principal underwriter" for, an "investment company", as such terms are
     defined in the Investment Company Act of 1940, as amended.  Neither the
     making of any Advances, nor the issuance of any Letters of Credit, nor the
     application of the proceeds or repayment thereof by any Borrower, nor the
     consummation of the other transactions contemplated by the Loan Documents,
     will violate any provision of such Act or any rule, regulation or order of
     the Securities and Exchange Commission thereunder.

          (l) Neither any Loan Party nor any of its Subsidiaries is a party to
     any indenture, loan or credit agreement or any lease or other agreement or
     instrument or subject to any charter or corporate restriction that is
     reasonably likely to have a Material Adverse Effect.

          (m) Each Loan Party is, individually and together with its
     Subsidiaries, Solvent.

          (n) Except to the extent that any and all events and conditions under
     clauses (i) through (vi) below of this paragraph (n) in the aggregate are
     not reasonably expected to have a Material Adverse Effect, (i) Schedule B
     (Actuarial Information) to the most recent annual report (Form 5500 Series)
     for each Pension Plan, copies of which have been filed with the Internal
     Revenue Service, is
<PAGE>

                                       56

          complete and accurate and fairly presents the funding status of such
          Pension Plan, and since the date of such Schedule B there has been no
          material adverse change in such funding status.

(ii)      Neither any Loan Party nor any ERISA Affiliate has incurred or is
     reasonably expected to incur any Withdrawal Liability to any Multiemployer
     Plan.

(iii)     Neither any Loan Party nor any ERISA Affiliate has been notified
     by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
     reorganization or has been terminated, within the meaning of Title IV of
     ERISA, and no such Multiemployer Plan is reasonably expected to be in
     reorganization or to be terminated, within the meaning of Title IV of
     ERISA.

(iv)      With respect to each scheme or arrangement mandated by a government
     other than the United States (a "Foreign Government Scheme or Arrangement")
     and with respect to each employee benefit plan that is not subject to
     United States law maintained or contributed to by any Loan Party or with
     respect to which any Subsidiary of any Loan Party may have liability under
     applicable local law (a "Foreign Plan"):

               (x) Any employer and employee contributions required by law or by
          the terms of any Foreign Government Scheme or Arrangement or any
          Foreign Plan have been made, or, if applicable, accrued, in accordance
          with normal accounting practices.

               (y) The fair market value of the assets of each funded Foreign
          Plan, the liability of each insurer for any Foreign Plan funded
          through insurance or the book reserve established for any Foreign
          Plan, together with any accrued contributions, is sufficient to
          procure or provide for the accrued benefit obligations, as of the date
          hereof, with respect to all current and former participants in such
          Foreign Plan according to the actuarial assumptions and valuations
          most recently used to account for such obligations in accordance with
          applicable generally accepted accounting principles.

               (z) Each Foreign Plan required to be registered has been
          registered and has been maintained in good standing with applicable
          regulatory authorities.

(v)       To the extent the assets of any Loan Party are or are deemed under
     applicable law to be "plan assets" within the meaning of Department of
     Labor Regulation (S) 2510.3-101, the execution, delivery and performance of
     the Loan Documents and the consummation of the transactions contemplated
     therein will not result in a non-exempt prohibited transaction within the
     meaning of Section 406 of ERISA or Section 4975 of the Internal Revenue
     Code.

(vi)      During the twelve-consecutive-month period to the date of the
     execution and delivery of this Agreement and prior to any Borrowing
     hereunder, no steps have been taken to terminate any Pension Plan, no
     contribution failure has occurred with respect to any Pension Plan
     sufficient to give rise to a lien under section 302(f) of ERISA and no
     minimum funding waiver has been applied for or is in effect with respect to
     any Pension Plan. No condition exists or event or transaction has occurred
     or is reasonably expected to occur with respect to any Pension Plan
<PAGE>

                                      57

     which could result in any Loan Party or any ERISA Affiliate incurring any
     material liability, fine or penalty.

          (o) (i)  In the ordinary course of its business, each Borrower reviews
     the effect of Environmental Laws on the operations and properties of such
     Borrower and its Subsidiaries, in the course of which it identifies and
     evaluates associated liabilities and costs (including, without limitation,
     any capital or operating expenditures required for clean-up or closure of
     properties presently or previously owned, any capital or operating
     expenditures required to achieve or maintain compliance with environmental
     protection standards imposed by law or as a condition of any license,
     permit or contract, any related constraints on operating activities,
     including any periodic or permanent shutdown of any facility or reduction
     in the level of or change in the nature of operations conducted thereat,
     and any actual or potential liabilities to third parties and any related
     costs and expenses).  On the basis of this review, each Borrower has
     reasonably concluded that such associated liabilities and costs, including
     the costs of compliance with Environmental Laws, are unlikely to have a
     Material Adverse Effect.

          (ii) The operations and properties of each Loan Party and each of its
     Subsidiaries comply in all material respects with all applicable
     Environmental Laws and Environmental Permits, except for non-compliances
     which would not, individually or in the aggregate, reasonably be expected
     to have a Material Adverse Effect; Hazardous Materials have not been
     released, discharged or disposed of on any property currently or formerly
     owned or operated by any Loan Party or any of its Subsidiaries that would
     reasonably be expected to have a Material Adverse Effect; and there are no
     Environmental Actions pending or threatened against any Loan Party or its
     Subsidiaries, and no circumstances exist that could be reasonably likely to
     form the basis of any such Environmental Action, which (in either case),
     individually or in the aggregate with all other such pending or threatened
     actions and circumstances would reasonably be expected to have a Material
     Adverse Effect.

          (p) Each Loan Party and each of its Subsidiaries has filed, has caused
     to be filed or has been included in all material federal tax returns and
     all other material tax returns required to be filed and has paid all taxes
     shown thereon to be due, together with applicable interest and penalties,
     except to the extent contested in good faith and by appropriate proceedings
     (in which case adequate reserves have been established therefor in
     accordance with GAAP).

          (q) Each Borrower has (i) initiated a review and assessment of all
     areas within its and each of its Subsidiaries' business and operations
     (including those affected by suppliers, vendors and customers) that could
     be adversely affected by the risk that computer applications used by such
     Borrower or any of its Subsidiaries (or material suppliers, vendors and
     customers other than those affecting customers that may give rise to claims
     under insurance policies issued by any Borrower or a Subsidiary) may be
     unable to recognize and perform properly date-sensitive functions involving
     certain dates prior to and any date after December 31, 1999 (the "Year 2000
     Problem"), (ii) developed a plan and timetable for addressing the Year 2000
     Problem on a timely basis and (iii) to date, implemented that plan
     substantially in accordance with such timetable.  Based on the foregoing,
     each Borrower believes that all computer applications of such Borrower and
     its Subsidiaries that are material to its or any of its
<PAGE>

                                      58

     Subsidiaries' business and operations are reasonably expected on a timely
     basis to be able to perform properly date-sensitive functions for all dates
     before and after January 1, 2000 ("Year 2000 Compliant"), except to the
     extent that a failure to do so could not reasonably be expected to have a
     Material Adverse Effect.

                                   ARTICLE V

                          COVENANTS OF THE BORROWERS

          SECTION 5.01. Affirmative Covenants. So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Lender shall have any
Commitment hereunder, each Borrower will:

          (a) Compliance with Laws, Etc. Comply, and cause each of its
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules, regulations and orders, such compliance to include, without
     limitation, compliance with Environmental Laws, Environmental Permits,
     ERISA and the Racketeer Influenced and Corrupt Organizations Chapter of the
     Organized Crime Control Act of 1970.

          (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
     Subsidiaries to pay and discharge, before the same shall become delinquent,
     (i) all material taxes, assessments and governmental charges or levies
     imposed upon it or upon its property and (ii) all lawful material claims
     that, if unpaid, might by law become a Lien upon its property; provided,
     however, that neither any Borrower nor any of its Subsidiaries shall be
     required to pay or discharge any such tax, assessment, charge or claim that
     is being contested in good faith and by proper proceedings and as to which
     appropriate reserves are being maintained.

          (c) Maintenance of Insurance. Maintain, and cause each of its
     Subsidiaries to maintain, insurance with responsible and reputable
     insurance companies or associations in such amounts and covering such risks
     as is usually carried by companies engaged in similar businesses and owning
     similar properties in the same general areas in which the Parent or such
     Subsidiary operates (it being understood that the foregoing shall not apply
     to maintenance of reinsurance or similar matters which shall be solely
     within the reasonable business judgment of the Parent and its
     Subsidiaries).

          (d) Preservation of Corporate Existence, Etc. Preserve and maintain,
     and cause each of its Subsidiaries to preserve and maintain, its existence,
     legal structure, legal name, rights (charter and statutory), permits,
     licenses, approvals, privileges and franchises; provided, however, that the
     Parent and its Subsidiaries may consummate any merger or consolidation
     permitted under Section 5.02(c) and provided further that neither the
     Parent nor any of its Subsidiaries shall be required to preserve any right,
     permit, license, approval, privilege or franchise if the Board of Directors
     of the Parent or such Subsidiary shall determine that the preservation
     thereof is no longer desirable in the conduct of the business of the Parent
     or such

<PAGE>

                                      59

     Subsidiary, as the case may be, and that the loss thereof is not
     disadvantageous in any material respect to the Parent, such Subsidiary or
     the Lenders.

          (e) Visitation Rights. At any reasonable time and from time to time
     upon prior notice, permit the Agents (upon request made by any Agent or any
     Lender), or any agents or representatives thereof, at the expense (so long
     as no Default has occurred and is continuing) of such Agents (or such
     Lender, as the case may be), to examine and make copies of and abstracts
     from the records and books of account of, and visit the properties of, the
     Parent and any of its Subsidiaries, and to discuss the affairs, finances
     and accounts of the Parent and any of its Subsidiaries with any of their
     officers or directors and with, so long as a representative of the Parent
     is present, their independent certified public accountants.

          (f) Keeping of Books. Keep, and cause each of its Subsidiaries to
     keep, proper books of record and account, in which full and correct entries
     shall be made of all financial transactions and the assets and business of
     the Parent and each such Subsidiary sufficient to permit the preparation of
     financial statements in accordance with GAAP.

          (g) Maintenance of Properties, Etc. Maintain and preserve, and cause
     each of its Subsidiaries to maintain and preserve, all of its properties
     that are used or useful in the conduct of its business in good working
     order and condition, ordinary wear and tear excepted.

          (h) Transactions with Affiliates. Conduct, and cause each of its
     Subsidiaries to conduct, all transactions otherwise permitted under the
     Loan Documents with any of their Affiliates (other than any transaction
     between Loan Parties) on terms that are fair and reasonable and no less
     favorable than it would obtain in a comparable arm's-length transaction
     with a Person not an Affiliate.

          (i) Pari Passu ranking. Each Borrower shall procure that its
     obligations under the Loan Documents will rank at least pari passu with all
     its other present and future unsecured and unsubordinated obligations,
     except for obligations which are mandatorily preferred by law applying to
     companies generally.

          SECTION 5.02. Negative Covenants. So long as any Advance or any other
obligation of any Loan Party under any Loan Document shall remain unpaid, any
Letter of Credit shall be outstanding or any Lender shall have any Commitment
hereunder, each of the Borrowers will not, at any time:

          (a) Liens, Etc. Create, incur, assume or suffer to exist, or permit
     any of its Subsidiaries to create, incur, assume or suffer to exist, any
     Lien on or with respect to any of its properties of any character
     (including, without limitation, accounts) whether now owned or hereafter
     acquired, or assign or permit any of its Subsidiaries to assign, any
     accounts or other right to receive income, except:

               (i) Liens created under the Loan Documents or in respect of the
          Borrowers' 364-Day Revolving Credit Facility or the ACE INA 364-Day
          Revolving Credit Facility
<PAGE>

                                      60

          (provided that all obligations of the Loan Parties under all of the
          foregoing shall be ratably secured);

               (ii) Permitted Liens;

               (iii) Liens described on Schedule 5.02(a) hereto and other Liens
          arising in the ordinary course of business of CIGNAP&C;

               (iv) purchase money Liens upon or in real property or equipment
          acquired or held by the Parent or any of its Subsidiaries in the
          ordinary course of business to secure the purchase price of such
          property or equipment or to secure Debt incurred solely for the
          purpose of financing the acquisition, construction or improvement of
          any such property or equipment to be subject to such Liens, or Liens
          existing on any such property or equipment at the time of acquisition
          or within 180 days following such acquisition (other than any such
          Liens created in contemplation of such acquisition that do not secure
          the purchase price), or extensions, renewals or replacements of any of
          the foregoing for the same or a lesser amount; provided, however, that
          no such Lien shall extend to or cover any property other than the
          property or equipment being acquired, constructed or improved, and no
          such extension, renewal or replacement shall extend to or cover any
          property not theretofore subject to the Lien being extended, renewed
          or replaced;

               (v) Liens arising in connection with Capitalized Leases; provided
          that no such Lien shall extend to or cover any assets other than the
          assets subject to such Capitalized Leases;

               (vi) (A) any Lien existing on any asset of any Person at the time
          such Person becomes a Subsidiary and not created in contemplation of
          such event, (B) any Lien on any asset of any Person existing at the
          time such Person is merged or consolidated with or into the Parent or
          any of it Subsidiaries in accordance with Section 5.02(c) and not
          created in contemplation of such event and (C) any Lien existing on
          any asset prior to the acquisition thereof by the Parent or any of its
          Subsidiaries and not created in contemplation of such acquisition;

               (vii) Liens securing obligations under credit default swap
          transactions determined by reference to, or Contingent Obligations in
          respect of, Debt issued by the Parent or one of its Subsidiaries; such
          Debt not to exceed an aggregate principal amount of $550,000,000;

               (viii) Liens arising in the ordinary course of its business which
          (A) do not secure Debt and (B) do not in the aggregate materially
          detract from the value of its assets or materially impair the use
          thereof in the operation of its business;

<PAGE>

                                      61

               (ix) Liens on cash and Approved Investments securing Hedge
          Agreements arising in the ordinary course of business;

               (x) other Liens securing Debt or other obligations outstanding in
          an aggregate principal or face amount not to exceed at any time 10% of
          Consolidated Tangible Net Worth;

               (xi) Liens consisting of deposits made by the Parent or any
          insurance Subsidiary with any insurance regulatory authority or other
          statutory Liens or Liens or claims imposed or required by applicable
          insurance law or regulation against the assets of the Parent or any
          insurance Subsidiary, in each case in favor of policyholders of the
          Parent or such insurance Subsidiary or an insurance regulatory
          authority and in the ordinary course of the Parent's or such insurance
          Subsidiary's business;

               (xii) Liens on Investments and cash balances of the Parent or any
          insurance Subsidiary (other than capital stock of any Subsidiary)
          securing obligations of the Parent or any insurance Subsidiary in
          respect of (i) letters of credit obtained in the ordinary course of
          business and/or (ii) trust arrangements formed in the ordinary course
          of business for the benefit of cedents to secure reinsurance
          recoverables owed to them by the Parent or any insurance Subsidiary;

               (xiii) the replacement, extension or renewal of any Lien
          permitted by clause (iii) or (vi) above upon or in the same property
          theretofore subject thereto or the replacement, extension or renewal
          (without increase in the amount (other than in respect of fees,
          expenses and premiums, if any) or change in any direct or contingent
          obligor) of the Debt secured thereby;

               (xiv) Liens securing obligations owed by any Loan Party to any
          other Loan Party or owed by any Subsidiary of the Parent (other than a
          Loan Party) to the Parent or any other Subsidiary;

               (xv) Liens incurred in the ordinary course of business in favor
          of financial intermediaries and clearing agents pending clearance of
          payments for investment or in the nature of set-off, banker's lien or
          similar rights as to deposit accounts or other funds; and

               (xvi) judgment or judicial attachment Liens, provided that the
          enforcement of such Liens is effectively stayed.

          (b) Change in Nature of Business. Make any material change in the
     nature of the business of the Parent and its Subsidiaries, taken as a
     whole, as carried on at the date hereof but assuming that the Acquisition
     had occurred.

          (c) Mergers, Etc. Merge into or consolidate with any Person or permit
     any Person to merge into it, or permit any of its Subsidiaries to do so,
     except that:

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                                       62

               (i) any Subsidiary of the Parent may merge into or consolidate
          with any other Subsidiary of the Parent, provided that, in the case of
          any such merger or consolidation, the Person formed by such merger or
          consolidation shall be a wholly owned Subsidiary of the Parent,
          provided further that, in the case of any such merger or consolidation
          to which a Borrower is a party, the Person formed by such merger or
          consolidation shall be such Borrower;

               (ii) any Subsidiary of any Borrower may merge into or consolidate
          with any other Person or permit any other Person to merge into or
          consolidate with it; provided that the Person surviving such merger
          shall be a wholly owned Subsidiary of the Borrower;

               (iii) in connection with any sale or other disposition permitted
          under Section 5.02(d) (other than clause (ii) thereof), any Subsidiary
          of the Parent may merge into or consolidate with any other Person or
          permit any other Person to merge into or consolidate with it; and

               (iv) the Parent or any Borrower may merge into or consolidate
          with any other Person; provided that, in the case of any such merger
          or consolidation, the Person formed by such merger or consolidation
          shall be the Parent or such Borrower, as the case may be;

     provided, however, that in each case, immediately after giving effect
     thereto, no event shall occur and be continuing that constitutes a Default.

          (d) Sales, Etc., of Assets.  Sell, lease, transfer or otherwise
     dispose of, or permit any of its Subsidiaries to sell, lease, transfer or
     otherwise dispose of, any assets, or grant any option or other right to
     purchase, lease or otherwise acquire any, assets except:

               (i) sales of inventory in the ordinary course of its business;

               (ii) in a transaction authorized by Section 5.02(c);

               (iii)  sales of Approved Investments in the ordinary course of
          business on a basis consistent with past practices;

               (iv) sales of assets for fair value;

               (v) sales, leases, transfers or other dispositions of any assets
          by the Parent or a Subsidiary to the Parent or another Subsidiary; and

               (vi) so long as no Default shall occur and be continuing, the
          grant of any option or other right to purchase any asset in a
          transaction that would be permitted under the provisions of clauses
          (i) through (iv) above.
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                                      63

          (e) Restricted Payments.  In the case of the Parent, declare or pay
     any dividends, purchase, redeem, retire, defease or otherwise acquire for
     value any of its Equity Interests now or hereafter outstanding, return any
     capital to its stockholders, partners or members (or the equivalent Persons
     thereof) as such, make any distribution of assets, Equity Interests,
     obligations or securities to its stockholders, partners or members (or the
     equivalent Persons thereof) as such or issue or sell any Equity Interests
     or accept any capital contributions, or permit any of its Subsidiaries to
     do any of the foregoing, or permit any of its Subsidiaries to purchase,
     redeem, retire, defease or otherwise acquire for value any Equity Interests
     in the Parent or to issue or sell any Equity Interests therein, except
     that, so long as no Default shall have occurred and be continuing at the
     time of any action described in clause (i) or (ii) below or would result
     therefrom:

               (i) the Parent may (A) declare and pay dividends and
          distributions payable only in common stock of the Parent, (B) issue
          and sell shares of its capital stock, (C) purchase, redeem, retire,
          defease or otherwise acquire for value any of its Equity Interests in
          an aggregate amount during the term of this Agreement not exceeding
          $300,000,000 and (D) declare and pay cash dividends to its
          stockholders,

               (ii) (A) any Loan Party (other than the Parent) may declare and
          pay cash dividends to another Loan Party and (B) any Subsidiary of the
          Parent (other than any Loan Party) may (x) declare and pay cash
          dividends to the Parent or any other wholly owned Subsidiary of the
          Parent of which it is a Subsidiary and (y) accept capital
          contributions from its parent, and

               (iii) the Special Purpose Trust may issue Preferred Securities
          and pay dividends thereon with the proceeds of payments of interest on
          the Debentures.

          (f) Accounting Changes.  Make or permit, or permit any of its
     Subsidiaries to make or permit, any change in accounting policies or
     reporting practices, except as permitted by GAAP.

          SECTION 5.03.  Reporting Requirements.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Lender shall have any
Commitment hereunder, the Parent will furnish to the Agents and the Lenders:

          (a) Default Notice.  As soon as possible and in any event within two
     days after the occurrence of each Default or any event, development or
     occurrence reasonably likely to have a Material Adverse Effect continuing
     on the date of such statement, a statement of the chief financial officer
     of the Parent setting forth details of such Default, event, development or
     occurrence and the action that the Parent or the applicable Subsidiary has
     taken and proposes to take with respect thereto.

          (b) Annual Financials. (i) As soon as available and in any event
     within 90 days after the end of each Fiscal Year, a copy of the annual
     Consolidated audit report for such year for
<PAGE>

                                      64

     the Parent and its Subsidiaries, including therein a Consolidated balance
     sheet of the Parent and its Subsidiaries as of the end of such Fiscal Year
     and Consolidated statements of income and cash flows of the Parent and its
     Subsidiaries for such Fiscal Year, all reported on in a manner reasonably
     acceptable to the Securities and Exchange Commission in each case and
     accompanied by an opinion of PricewaterhouseCoopers LLP or other
     independent public accountants of recognized standing reasonably acceptable
     to the Required Lenders, together with (i) a certificate of the Chief
     Financial Officer of the Parent stating that no Default has occurred and is
     continuing, or if a Default has occurred and is continuing, a statement as
     to the nature thereof and the action that the Parent has taken a proposes
     to take with respect thereto, and (ii) a schedule in form reasonably
     satisfactory to the Administrative Agent of the computations used by the
     Parent in determining, as of the end of such Fiscal Year, compliance with
     the covenants contained in Section 5.04.

          (ii) As soon as available and in any event within 120 days after the
     end of each Fiscal Year, a copy of the annual Consolidated audit report for
     such year for each Subsidiary Guarantor and its Subsidiaries, including
     therein a Consolidated balance sheet of such Subsidiary Guarantor and its
     Subsidiaries as of the end of such Fiscal Year and a Consolidated statement
     of income and a Consolidated statement of cash flows of such Subsidiary
     Guarantor and its Subsidiaries for such Fiscal Year, in each case
     accompanied by an opinion acceptable to the Required Lenders of
     PricewaterhouseCoopers LLP or other independent public accountants of
     recognized standing acceptable to the Required Lenders.

          (c) Quarterly Financials.  As soon as available and in any event
     within 45 days after the end of each of the first three quarters of each
     Fiscal Year, Consolidated balance sheets of the Parent and its Subsidiaries
     as of the end of such quarter and Consolidated statements of income and a
     Consolidated statement of cash flows of the Parent and its Subsidiaries for
     the period commencing at the end of the previous fiscal quarter and ending
     with the end of such fiscal quarter and Consolidated statements of income
     and a Consolidated statement of cash flows of the Parent and its
     Subsidiaries for the period commencing at the end of the previous Fiscal
     Year and ending with the end of such quarter, setting forth in each case in
     comparative form the corresponding figures for the corresponding date or
     period of the preceding Fiscal Year, all in reasonable detail and duly
     certified (subject to the absence of footnotes and normal year-end audit
     adjustments) by the Chief Financial Officer of the Parent as having been
     prepared in accordance with GAAP, together with (i) a certificate of said
     officer stating that no Default has occurred and is continuing or, if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Parent has taken and proposes to take with
     respect thereto and (ii) a schedule in form reasonably satisfactory to the
     Administrative Agent of the computations used by the Parent in determining
     compliance with the covenants contained in Section 5.04.

          (d) Litigation.  Promptly after the commencement thereof, notice of
     all actions, suits, investigations, litigation and proceedings before any
     court or governmental department, commission, board, bureau, agency or
     instrumentality, domestic or foreign, affecting any Loan Party or any of
     its Subsidiaries of the type described in Section 4.01(f).
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                                       65

          (e) Securities Reports.  Promptly after the sending or filing thereof,
     copies of all proxy statements, financial statements and reports that the
     Parent sends to its stockholders generally, and copies of all regular,
     periodic and special reports, and all registration statements, that any
     Loan Party or any of its Subsidiaries files with the Securities and
     Exchange Commission or any governmental authority that may be substituted
     therefor, or with any national securities exchange.

          (f) ERISA.  (i)  ERISA Events.  Promptly and in any event within 10
     days after any Loan Party or any ERISA Affiliate institutes any steps to
     terminate any Pension Plan or becomes aware of the institution of any steps
     or any threat by the PBGC to terminate any Pension Plan, or the failure to
     make a required contribution to any Pension Plan if such failure is
     sufficient to give rise to a lien under section 302(f) of ERISA, or the
     taking of any action with respect to a Pension Plan which could result in
     the requirement that any Loan Party or any ERISA Affiliate furnish a bond
     or other security to the PBGC or such Pension Plan, or the occurrence of
     any event with respect to any Pension Plan which could result in any Loan
     Party or any ERISA Affiliate incurring any material liability, fine or
     penalty, or any material increase in the contingent liability of any Loan
     Party or any ERISA Affiliate with respect to any post-retirement Welfare
     Plan benefit, notice thereof and copies of all documentation relating
     thereto.

          (ii) Plan Annual Reports.  Promptly upon request of any Agent or any
     Lender, copies of each Schedule B (Actuarial Information) to the annual
     report (Form 5500 Series) with respect to each Pension Plan.

          (iii)  Multiemployer Plan Notices.  Promptly and in any event within
     15 Business Days after receipt thereof by any Loan Party or any ERISA
     Affiliate from the sponsor of a Multiemployer Plan, copies of each notice
     concerning (A) the imposition of Withdrawal Liability by any such
     Multiemployer Plan, (B) the reorganization or termination, within the
     meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the
     amount of liability incurred, or that may be incurred, by such Loan Party
     or any ERISA Affiliate in connection with any event described in clause (A)
     or (B); provided, however, that such notice and documentation shall not be
     required to be provided (except at the specific request of any Agent or
     Lender, in which case such notice and documentation shall be promptly
     provided following such request) if such condition or event is not
     reasonably expected to result in any Loan Party or any ERISA Affiliate
     incurring any material liability, fine, or penalty..

          (g) Year 2000 Compliance.  Promptly after the Parent's discovery or
     determination thereof, notice (in reasonable detail) that any computer
     application that is material to its or any of its Subsidiaries' business
     and operations will not be Year 2000 Compliant (as defined in Section
     4.01(q)), except to the extent that such failure could not reasonably be
     expected to have a Material Adverse Effect.

          (h) Statutory Statements.  As soon as available and in any event
     within 20 days after submission, each statutory statement of the Loan
     Parties (or any of them) in the form submitted to The Insurance Division of
     the Office of Registrar of Companies of Bermuda.
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                                      66

          (i) Regulatory Notices, Etc.  Promptly after any Responsible Officer
     of the Parent obtains knowledge thereof, (i) a copy of any notice from the
     Bermuda Minister of Finance or the Registrar of Companies or any other
     person of the revocation, the suspension or the placing of any restriction
     or condition on the registration as an insurer of any Borrower under the
     Bermuda Insurance Act 1978 (and related regulations) or of the institution
     of any proceeding or investigation which could result in any such
     revocation, suspension or placing of such a restriction or condition, (ii)
     copies of any correspondence by, to or concerning any Loan Party relating
     to an investigation conducted by the Bermuda Minister of Finance, whether
     pursuant to Section 132 of the Bermuda Companies Act 1981 (and related
     regulations) or otherwise and (iii) a copy of any notice of or requesting
     or otherwise relating to the winding-up or any similar proceeding of or
     with respect to any Loan Party.

          (j) Other Information.  Such other information respecting the
     business, condition (financial or otherwise), operations, performance,
     properties or prospects of any Loan Party or any of its Subsidiaries as any
     Agent, or any Lender through the Administrative Agent, may from time to
     time reasonably request.

          SECTION 5.04.  Financial Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Lender shall have any
Commitment hereunder, the Parent will:

          (a) Adjusted Consolidated Debt to Total Capitalization Ratio.
     Maintain at all times a ratio of Adjusted Consolidated Debt to Total
     Capitalization of not more than the lesser of (a) 0.50 to 1 or (b) the
     Specified Ratio.  For purposes of the foregoing, the Specified Ratio shall
     be the greater of 0.35 to 1 or the ratio determined by multiplying 1.25
     times the numerator of the lowest ratio of Adjusted Consolidated Debt to
     Total Capitalization as of the last day of any fiscal quarter of the Parent
     after completion of the Acquisition.

          (b) Tangible Net Worth.  Maintain at all times Consolidated Tangible
     Net Worth in an amount equal to the sum of (i) $1,000,000,000 plus (ii) 25%
     of Consolidated Net Income for each fiscal quarter of the Parent ending on
     and after June 30, 1999 for which such Consolidated Net Income is positive
     plus (iii) 75% (or, after the Equity Issuance (so long as the Net Cash
     Proceeds received by the Parent and its Subsidiaries are at least
     $500,000,000) 50%) of the aggregate amount by which Consolidated Tangible
     Net Worth shall have been increased by reason of the issuance and sale of
     any Equity Interests or Mandatorily Convertible Preferred Securities or,
     without duplication, the conversion or exchange of any Debt of the Parent
     into or with Equity Interests of the Parent.
<PAGE>

                                      67

                                  ARTICLE VI

                               EVENTS OF DEFAULT

          SECTION 6.01.  Events of Default.  If any of the following events
("Events of Default") shall occur and be continuing:

          (a) (i) any Borrower shall fail to pay any principal of any Advance
     when the same shall become due and payable or (ii) any Borrower shall fail
     to pay any interest on any Advance, or any Loan Party shall fail to make
     any other payment under any Loan Document, in each case under this clause
     (ii) within five Business Days after the same becomes due and payable; or

          (b) any representation or warranty made by any Loan Party (or any of
     its officers) under or in connection with any Loan Document shall prove to
     have been incorrect in any material respect when made; or

          (c) any Borrower shall fail to perform or observe any term, covenant
     or agreement contained in Section 2.15, 5.01(d) (with respect to the
     Parent) or (e), 5.02 or 5.04; or

          (d) any Loan Party shall fail to perform or observe any other term,
     covenant or agreement contained in any Loan Document on its part to be
     performed or observed if such failure shall remain unremedied for 30 days
     after the earlier of the date on which (i) a Responsible Officer becomes
     aware of such failure or (ii) written notice thereof shall have been given
     to such Loan Party by any Agent or any Lender; or

          (e) the Parent or any of its Subsidiaries shall fail to pay any
     Material Financial Obligation (but excluding Debt outstanding hereunder) of
     the Parent or such Subsidiary (as the case may be), when the same becomes
     due and payable (whether by scheduled maturity, required prepayment,
     acceleration, demand or otherwise), and such failure shall continue after
     the applicable grace period, if any, specified in the agreement or
     instrument relating to such Material Financial Obligation; or any other
     event shall occur or condition shall exist under any agreement or
     instrument relating to any such Material Financial Obligation and shall
     continue after the applicable grace period, if any, specified in such
     agreement or instrument, if the effect of such event or condition is to
     accelerate, or to permit the acceleration of, the maturity of such Material
     Financial Obligation or otherwise to cause, or to permit the holder thereof
     to cause, such Material Financial Obligation to mature; or any such
     Material Financial Obligation shall be declared to be due and payable or
     required to be prepaid or redeemed (other than by a regularly scheduled
     required prepayment or redemption), purchased or defeased, or an offer to
     prepay, redeem, purchase or defease such Material Financial Obligation
     shall be required to be made, in each case prior to the stated maturity
     thereof; or

          (f) any Loan Party or any of its Subsidiaries shall generally not pay
     its debts as such debts become due, or shall admit in writing its inability
     to pay its debts generally, or shall make a general assignment for the
     benefit of creditors; or any proceeding shall be instituted by or against
     any Loan Party or any of its Subsidiaries seeking to adjudicate it a
     bankrupt or insolvent, or
<PAGE>

                                      68

     seeking liquidation, winding up, reorganization, arrangement, adjustment,
     protection, relief, or composition of it or its debts under any law
     relating to bankruptcy, insolvency or reorganization or relief of debtors,
     or seeking the entry of an order for relief or the appointment of a
     receiver, trustee, or other similar official for it or for any substantial
     part of its property and, in the case of any such proceeding instituted
     against it (but not instituted by it) that is being diligently contested by
     it in good faith, either such proceeding shall remain undismissed or
     unstayed for a period of 30 days or any of the actions sought in such
     proceeding (including, without limitation, the entry of an order for relief
     against, or the appointment of a receiver, trustee, custodian or other
     similar official for, it or any substantial part of its property) shall
     occur; or any Loan Party or any of its Subsidiaries shall take any
     corporate action to authorize any of the actions set forth above in this
     subsection (f); or

          (g) any judgment or order for the payment of money in excess of
     $100,000,000 shall be rendered against any Loan Party or any of its
     Subsidiaries and either (i) enforcement proceedings shall have been
     commenced by any creditor upon such judgment or order or (ii) there shall
     be any period of 30 consecutive days during which a stay of enforcement of
     such judgment or order, by reason of a pending appeal or otherwise, shall
     not be in effect; or

          (h) any non-monetary judgment or order shall be rendered against any
     Loan Party or any of its Subsidiaries that could be reasonably likely to
     have a Material Adverse Effect, and there shall be any period of 30
     consecutive days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise, shall not be in effect;
     or

          (i) any provision of any Loan Document after delivery thereof pursuant
     to Section 3.01 shall for any reason cease to be valid and binding on or
     enforceable against any Loan Party party to it (other than as a result of a
     transaction permitted hereunder), or any such Loan Party shall so state in
     writing; or

          (j) a Change of Control shall occur; or

          (k) Any Loan Party or any ERISA Affiliate shall incur or shall be
     reasonably expected to incur liability in excess of $25,000,000 in the
     aggregate with respect to any Pension Plan or any Multiemployer Plan in
     connection with the occurrence of any of the following events or existence
     of any of the following conditions:

               (i) Institution of any steps by any Loan Party, any ERISA
          Affiliate or any other Person, including, without limitation, the PBGC
          to terminate a Pension Plan if as a result of such termination a Loan
          Party or any ERISA Affiliate could be required to make a contribution
          to such Pension Plan, or could incur a liability or obligation;

               (ii) A contribution failure occurs with respect to any Pension
          Plan sufficient to give rise to a lien under section 302(f) of ERISA;
          or

               (iii) Any condition shall exist or event shall occur with respect
          to a Pension Plan that is reasonably expected to result in any Loan
          Party or any ERISA Affiliate being
<PAGE>

                                      69

          required to furnish a bond or security to the PBGC or such Pension
          Plan, or incurring a liability or obligation.

          (l) any Loan Party or any ERISA Affiliate shall have been notified by
     the sponsor of a Multiemployer Plan that it has incurred Withdrawal
     Liability to such Multiemployer Plan; or

          (m) any Loan Party or any ERISA Affiliate shall have been notified by
     the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
     reorganization or is being terminated, within the meaning of Title IV of
     ERISA, and as a result of such reorganization or termination the aggregate
     annual contributions of the Loan Parties and the ERISA Affiliates to all
     Multiemployer Plans that are then in reorganization or being terminated
     have been or will be increased over the amounts contributed to such
     Multiemployer Plans for the plan years of such Multiemployer Plans
     immediately preceding the plan year in which such reorganization or
     termination occurs;

then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Required Lenders, by notice to the Borrowers,
declare the Commitments of each Lender and the obligation of each Lender to make
Advances (other than Letter of Credit Advances by the Issuing Bank or a Lender
pursuant to Section 2.04(c)) and of the Issuing Bank to issue Letters of Credit
to be terminated, whereupon the same shall forthwith terminate, and/or (ii)
shall at the request, or may with the consent, of the Required Lenders, by
notice to the Borrowers, declare the Notes, all interest thereon and all other
amounts payable under this Agreement and the other Loan Documents to be
forthwith due and payable, whereupon the Notes, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrowers; provided, however, that in the event of an actual or
deemed entry of an order for relief with respect to any Borrower under the
Federal Bankruptcy Code, (x) the Commitments of each Lender and the obligation
of each Lender to make Advances (other than Letter of Credit Advances by the
Issuing Bank or a Lender pursuant to Section 2.04(c)) and of the Issuing Bank to
issue Letters of Credit shall automatically be terminated and (y) the Notes, all
such interest and all such amounts shall automatically become and be due and
payable, without presentment, demand, protest or any notice of any kind, all of
which are hereby expressly waived by the Borrowers.

          SECTION 6.02.  Actions in Respect of the Letters of Credit upon
Default.  If any Event of Default shall have occurred and be continuing, the
Administrative Agent may, or shall at the request of the Required Lenders, after
having taken any of the actions described in Section 6.01(ii) or otherwise, make
demand upon the Borrower to, and forthwith upon such demand the Borrower will,
pay to the Administrative Agent on behalf of the Lenders in same day funds at
the Administrative Agent's office designated in such demand, an amount equal to
the aggregate Available Amount of all Letters of Credit then outstanding as cash
collateral.  If at any time during the continuance of an Event of Default the
Administrative Agent determines that such funds are subject to any right or
claim of any Person other than the Administrative Agent and the Lenders or that
the total amount of such funds is less than the aggregate Available Amount of
all Letters of Credit, the Borrower will, forthwith upon demand by the
Administrative Agent, pay to the Administrative Agent, as additional cash
collateral, an amount equal to the excess of (a) such aggregate Available Amount
over (b) the total amount of funds, if any, that the Administrative Agent
determines to be free and clear of any such right and claim.  Upon the drawing
of
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                                      70

any Letter of Credit, such funds shall be applied to reimburse the Issuing
Bank or Lenders, as applicable, to the extent permitted by applicable law.]

                                  ARTICLE VII

                                 THE GUARANTY

          SECTION 7.01.  The Guaranty.  (a)  Each Borrower hereby jointly and
severally, unconditionally, absolutely and irrevocably guarantees the full and
punctual payment (whether at stated maturity, upon acceleration or otherwise) of
all amounts payable by each of the other Borrowers under the Loan Documents
including, without limitation, the principal of and interest on each Note issued
by such other Borrowers pursuant to this Agreement and for reimbursement
obligations with respect to Letters of Credit.  Upon failure by a Borrower to
pay punctually any such amount, each other Borrower agrees to pay forthwith on
demand the amount not so paid at the place and in the manner specified in this
Agreement.

          (b) Each Borrower (other than the Parent), and by its acceptance of
this Guaranty, the Administrative Agent and each other Lender, hereby confirms
that it is the intention of all such Persons that this Guaranty and the
obligations of each Borrower hereunder not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or
state law to the extent applicable to this Guaranty and the obligations of each
Borrower (other than the Parent) hereunder.  To effectuate the foregoing
intention, the Administrative Agent, the other Lenders and the Borrowers hereby
irrevocably agree that the obligations of each Borrower (other than the Parent)
under this Article VII at any time shall be limited to the maximum amount as
will result in the obligations of such Borrower under this Guaranty not
constituting a fraudulent transfer or conveyance.

          SECTION 7.02.  Guaranty Unconditional.  The obligations of each
Borrower under this Article VII shall be unconditional, absolute and irrevocable
and, without limiting the generality of the foregoing, shall not be released,
discharged or otherwise affected by:

          (i) any extension, renewal, settlement, compromise, waiver or release
     in respect of any obligation of any other obligor under any of the Loan
     Documents, by operation of law or otherwise;

          (ii) any modification or amendment of or supplement to any of the Loan
     Documents;

          (iii)  any release, non-perfection or invalidity of any direct or
     indirect security for any obligation of any other obligor under any of the
     Loan Documents;

          (iv) any change in the corporate existence, structure or ownership of
     any obligor, or any insolvency, bankruptcy, reorganization or other similar
     proceeding affecting any other obligor or its assets or any resulting
     release or discharge of any obligation of any other obligor contained in
     any of the Loan Documents;
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                                      71

          (v) the existence of any claim, set-off or other rights which any
     obligor may have at any time against any other obligor, the Administrative
     Agent, any Lender or any other corporation or person, whether in connection
     with any of the Loan Documents or any unrelated transactions, provided that
     nothing herein shall prevent the assertion of any such claim by separate
     suit or compulsory counterclaim;

          (vi) any invalidity or unenforceability relating to or against any
     other obligor for any reason of any of the Loan Documents, or any provision
     of applicable law or regulation purporting to prohibit the payment by any
     other obligor of the principal of or interest on any Note or any other
     amount payable under any of the Loan Documents; or

          (vii)  any other act or omission to act or delay of any kind by any
     obligor, the Administrative Agent, any Lender or any other corporation or
     person or any other circumstance whatsoever which might, but for the
     provisions of this paragraph, constitute a legal or equitable discharge of
     or defense to a Borrower's obligations under this Article VII.

          SECTION 7.03.  Discharge Only upon Payment in Full; Reinstatement in
Certain Circumstances.  Each Borrower's obligations under this Article VII shall
remain in full force and effect until the Commitments shall have terminated and
the principal of and interest on the Notes and all other amounts payable by the
other Borrowers under the Loan Documents shall have been paid in full.  If at
any time any payment of the principal of or interest on any Note or any other
amount payable by a Borrower under the Loan Documents is rescinded or must be
otherwise restored or returned upon the insolvency, bankruptcy or reorganization
of such Borrower or otherwise, each other Borrower's obligations under this
Article VII with respect to such payment shall be reinstated as though such
payment had been due but not made at such time.

          SECTION 7.04.  Waiver by the Borrowers.  Each Borrower irrevocably
waives acceptance hereof, presentment, demand, protest and any notice not
provided for herein, as well as any requirement that at any time any action be
taken by any corporation or person against any other obligor or any other
corporation or person.

          SECTION 7.05.  Subrogation.  Each Borrower hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or hereafter
acquire against any other Borrower, any other Loan Party or any other insider
guarantor that arise from the existence, payment, performance or enforcement of
such Borrower's obligations under or in respect of this Guaranty or any other
Loan Document, including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of any Lender against any other Borrower, any
other Loan Party or any other insider guarantor or any collateral, whether or
not such claim, remedy or right arises in equity or under contract, statute or
common law, including, without limitation, the right to take or receive from any
other Borrower, any other Loan Party or any other insider guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim, remedy or right, unless and until
all amounts payable under this Guaranty shall have been paid in full in cash,
and the Commitments shall have expired or been terminated. If any amount shall
be paid to any Borrower in violation of the immediately preceding sentence at
any time prior to the latest of (a) the payment in full in cash of all amounts
payable under this
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                                      72

Guaranty, and (b) the Termination Date, such amount shall be
received and held in trust for the benefit of the Lenders, shall be segregated
from other property and funds of such Borrower and shall forthwith be paid or
delivered to the Administrative Agent in the same form as so received (with any
necessary endorsement or assignment) to be credited and applied to all amounts
payable under this Guaranty, whether matured or unmatured, in accordance with
the terms of the Loan Documents, or to be held as collateral for any amounts
payable under this Guaranty thereafter arising. If (i) any Borrower shall make
payment to any Lender of all or any amounts payable under this Guaranty, (ii)
all amounts payable under this Guaranty shall have been paid in full in cash,
and (iii) the Termination Date shall have occurred, the Lenders will, at such
Borrower's request and expense, execute and deliver to such Borrower appropriate
documents, without recourse and without representation or warranty, necessary to
evidence the transfer by subrogation to such Borrower of an interest in the
obligations resulting from such payment made by such Borrower pursuant to this
Guaranty.

          SECTION 7.06.  Stay of Acceleration.  If acceleration of the time for
payment of any amount payable by any Borrower under any of the Loan Documents is
stayed upon the insolvency, bankruptcy or reorganization of such Borrower, all
such amounts otherwise subject to acceleration under the terms of this Agreement
shall nonetheless by payable by the other Borrowers under this Article VII
forthwith on demand by the Administrative Agent made at the request of the
requisite proportion of the Lenders.

          SECTION 7.07.  Continuing Guaranty; Assignments.  This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
latest of (i) the payment in full in cash of all amounts payable under this
Guaranty and (ii) the Termination Date, (b) be binding upon each Borrower, its
successors and assigns and (c) inure to the benefit of and be enforceable by the
Lenders and their successors, transferees and assigns.  Without limiting the
generality of clause (c) of the immediately preceding sentence, any Lender may
assign or otherwise transfer all or any portion of its rights and obligations
under this Agreement (including, without limitation, all or any portion of its
Commitments, the Advances owing to it and the Note or Notes held by it) to any
other Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to such Lender herein or otherwise, in each
case as and to the extent provided in Section 9.07.  No Borrower shall have the
right to assign its rights hereunder or any interest herein without the prior
written consent of the Required Lenders.

                                 ARTICLE VIII

                                  THE AGENTS

          SECTION 8.01.  Authorization and Action.  Each Lender (in its capacity
as a Lender) hereby appoints and authorizes each Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this
Agreement and the other Loan Documents as are delegated to such Agent by the
terms hereof and thereof, together with such powers and discretion as are
reasonably incidental thereto.  As to any matters not expressly provided for by
the Loan Documents (including, without limitation, enforcement or collection of
the Notes), no Agent shall be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully
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                                      73

protected in so acting or refraining from acting) upon the instructions of
the Required Lenders or all the Lenders where unanimity is required, and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided, however, that no Agent shall be required to take any action that
exposes such Agent to personal liability or that is contrary to this Agreement
or applicable law.  Each Agent agrees to give to each Lender prompt notice of
each notice given to it by any Borrower pursuant to the terms of this Agreement.

          SECTION 8.02.  Agents' Reliance, Etc.  Neither any Agent nor any of
their respective directors, officers, agents or employees shall be liable for
any action taken or omitted to be taken by it or them under or in connection
with the Loan Documents, except for its or their own gross negligence or willful
misconduct.  Without limitation of the generality of the foregoing, each Agent:
(a) may treat the payee of any Note as the holder thereof until, in the case of
the Administrative Agent, the Administrative Agent receives and accepts an
Assignment and Acceptance entered into by the Lender that is the payee of such
Note, as assignor, and an Eligible Assignee, as assignee, or, in the case of any
other Agent, such Agent has received notice from the Administrative Agent that
it has received and accepted such Assignment and Acceptance, in each case as
provided in Section 9.07; (b) may consult with legal counsel (including counsel
for any Loan Party), independent public accountants and other experts selected
by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or
experts; (c) makes no warranty or representation to any Lender and shall not be
responsible to any Lender for any statements, warranties or representations
(whether written or oral) made in or in connection with the Loan Documents; (d)
shall not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of any Loan Document on
the part of any Loan Party or to inspect the property (including the books and
records) of any Loan Party; (e) shall not be responsible to any Lender for the
due execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created
or purported to be created under or in connection with, any Loan Document or any
other instrument or document furnished pursuant thereto; and (f) shall incur no
liability under or in respect of any Loan Document by acting upon any notice,
consent, certificate or other instrument or writing (which may be by
telegram or telecopy) reasonably believed by it to be genuine and signed or sent
by the proper party or parties.

          SECTION 8.03.  MGT and Affiliates.  With respect to its WC
Commitments, the Committed Advances made by it and the Committed Notes issued to
it, MGT shall have the same rights and powers under the Loan Documents as any
other Lender and may exercise the same as though it were not an Agent; and the
term "Lender" or "Lenders" shall, unless otherwise expressly indicated, include
MGT in its individual capacity.  MGT and its affiliates may accept deposits
from, lend money to, act as trustee under indentures of, accept investment
banking engagements from and generally engage in any kind of business with, any
Loan Party, any of its Subsidiaries and any Person that may do business with or
own securities of any Loan Party or any such Subsidiary, all as if MGT were not
Agent and without any duty to account therefor to the Lenders.

          SECTION 8.04.  Lender Credit Decision.  Each Lender acknowledges that
it has, independently and without reliance upon any Agent or any other Lender
and based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
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                                      74

acknowledges that it will, independently and without reliance upon any 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 decisions in taking or
not taking action under this Agreement.

          SECTION 8.05.  Indemnification.  (a)  Each Lender severally agrees to
indemnify each Agent (to the extent not promptly reimbursed by the Borrowers)
from and against such Lender's ratable share (determined as provided below) of
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against such Agent
in any way relating to or arising out of the Loan Documents or any action taken
or omitted by such Agent under the Loan Documents; provided, however, that no
Lender shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Agent's gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse each Agent promptly
upon demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by the Borrowers under Section
9.04, to the extent that such Agent is not promptly reimbursed for such costs
and expenses by the Borrowers.

          (b) For purposes of this Section 8.05, the Lenders' respective ratable
shares of any amount shall be determined, at any time, according to the sum of
(i) the aggregate principal amount of the Advances outstanding at such time and
owing to the respective Lenders, (ii) their respective Pro Rata Shares of the
aggregate Available Amounts of all Letters of Credit outstanding at such time
and (iii) their respective Unused WC Commitments at such time.  The
failure of any Lender to reimburse any Agent promptly upon demand for its
ratable share of any amount required to be paid by the Lenders to such Agent as
provided herein shall not relieve any other Lender of its obligation hereunder
to reimburse such Agent for its ratable share of such amount, but no Lender
shall be responsible for the failure of any other Lender to reimburse such Agent
for such other Lender's ratable share of such amount.  Without prejudice to the
survival of any other agreement of any Lender hereunder, the agreement and
obligations of each Lender contained in this Section 8.05 shall survive the
payment in full of principal, interest and all other amounts payable hereunder
and under the other Loan Documents.

          SECTION 8.06.  Successor Agents.  Any Agent may resign at any time by
giving written notice thereof to the Lenders and the Parent and may be removed
at any time with or without cause by the Required Lenders.  Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent, subject (so long as no Event of Default exists) to the consent
of the Parent (which consent shall not be unreasonably withheld).  If no
successor Agent shall have been so appointed by the Required Lenders, and shall
have accepted such appointment, within 30 days after the retiring Agent's giving
of notice of resignation or the Required Lenders' removal of the retiring Agent,
then the retiring Agent may, on behalf of the Lenders, appoint a successor
Agent, which shall be a commercial bank organized under the laws of the United
States or of any State thereof and having a combined capital and surplus of at
least $250,000,000.  Upon the acceptance of any appointment as Agent hereunder
by a successor Agent such successor Agent shall succeed to and become vested
with all the rights, powers, discretion, privileges and duties of the retiring
Agent, and the retiring Agent shall be discharged from its duties and
obligations under the Loan Documents.  If within 45 days after written notice is
given of the retiring Agent's resignation or removal under this Section 8.06 no
successor Agent shall have been appointed and shall have accepted such
appointment, then on such 45th day (i) the retiring Agent's
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                                      75

resignation or removal shall become effective, (ii) the retiring Agent shall
thereupon be discharged from its duties and obligations under the Loan Documents
and (iii) the Required Lenders shall thereafter perform all duties of the
retiring Agent under the Loan Documents until such time, if any, as the Required
Lenders appoint a successor Agent as provided above. After any retiring Agent's
resignation or removal hereunder as Agent shall have become effective, the
provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.

                                  ARTICLE IX

                                 MISCELLANEOUS

          SECTION 9.01.  Amendments, Etc.  No amendment or waiver of any
provision of this Agreement or the Notes or any other Loan Document, nor consent
to any departure by any Loan Party therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Required Lenders (and, in
the case of an amendment, the Parent), and then any
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, however, that no amendment,
waiver or consent shall, unless in writing and signed by all of the Lenders
(other than any Lender that is, at such time, a Defaulting Lender), do any of
the following at any time:  (i) waive any of the conditions specified in Section
3.01 or, in the case of the Initial Extension of Credit, Section 3.02, (ii)
change the number of Lenders or the percentage of (x) the WC Commitments, (y)
the aggregate unpaid principal amount of the Advances or (z) the aggregate
Available Amount of outstanding Letters of Credit that, in each case, shall be
required for the Lenders or any of them to take any action hereunder, (iii)
reduce or limit the obligations of any Borrower under Section 7.01 or release
such Borrower or otherwise limit such Borrower's liability with respect to the
obligations owing to the Agents and the Lenders, (iv) amend this Section 9.01,
(v) increase the WC Commitments of the Lenders or subject the Lenders to any
additional obligations, (vi) reduce the principal of, or interest on, the Notes
or any fees or other amounts payable hereunder (other than under Section 2.07),
(vii) postpone any date fixed for any payment of principal of, or interest on,
the Notes or any fees or other amounts payable hereunder (other than under
Section 2.07), or (viii) limit the liability of any Loan Party under any of the
Loan Documents; provided further that no amendment, waiver or consent shall,
unless in writing and signed by an Agent in addition to the Lenders required
above to take such action, affect the rights or duties of such Agent under this
Agreement or the other Loan Documents and no amendment, waiver or consent shall,
unless in writing and signed by the Issuing Bank in addition to the Lenders
above required to take such action, affect the rights or duties of the Issuing
Bank under this Agreement or the other Loan Documents (including, without
limitation, any change in Section 2.01(b), 2.04, 2.05(b), 2.05(c), 2.09(d),
2.18, 2.19, 2.20, 2.21 or 9.09).

          SECTION 9.02.  Notices, Etc.  All notices and other communications
provided for hereunder shall be in writing (including telegraphic or telecopy
communication) and mailed, telegraphed, telecopied or delivered, if to any
Borrower, at its address set forth below on the signature pages hereof; if to
any Initial Lender, at its Domestic Lending Office specified opposite its name
on Schedule I hereto; if to any other Lender, at its Domestic Lending Office
specified in the Assignment and Acceptance pursuant to which it became a Lender;
if to the Syndication Agent, at its address at World Financial Center, North
Tower, 250 Vesey Street, New York, New York  10281, Attention:  Carol Feley; and
if to
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                                      76

the Administrative Agent, at its address at 500 Stanton Christiana Road,
Newark, Delaware 19713, Attention:  Bill Wood; or, as to any party, at such
other address as shall be designated by such party in a written notice to the
other parties. All such notices and communications shall, when mailed,
telegraphed or telecopied, be effective when deposited in the mails, delivered
to the telegraph company or transmitted by telecopier, respectively, except that
notices and communications to any Agent pursuant to Article II, III or VIII
shall not be effective until received by such Agent.  Manual delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit hereto to be executed
and delivered hereunder shall be effective as delivery of an original executed
counterpart thereof.

          SECTION 9.03.  No Waiver; Remedies.  No failure on the part of any
Lender or any Agent to exercise, and no delay in exercising, any right hereunder
or under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

          SECTION 9.04.  Costs and Expenses.  (a) Each of the Borrowers agrees
to pay on demand (i) all reasonable costs and expenses of the Agents and of the
Issuing Bank in connection with the preparation, execution, delivery,
administration, modification and amendment of the Loan Documents (including,
without limitation, (A) all due diligence, collateral review, syndication,
transportation, computer, duplication, appraisal, audit, insurance, consultant,
search, filing and recording fees and expenses and (B) the reasonable fees and
expenses of a single counsel for the Agents and a single counsel for the Issuing
Bank with respect thereto, with respect to advising the Agents as to its rights
and responsibilities, or the perfection, protection or preservation of rights or
interests, under the Loan Documents, with respect to negotiations with any Loan
Party or with other creditors of any Loan Party or any of its Subsidiaries
arising out of any Default or any events or circumstances that may give rise to
a Default and with respect to presenting claims in or otherwise participating in
or monitoring any bankruptcy, insolvency or other similar proceeding involving
creditors' rights generally and any proceeding ancillary thereto) and (ii) all
reasonable costs and expenses of each Agent, the Issuing Bank and each Lender in
connection with the enforcement of the Loan Documents, whether in any action,
suit or litigation, or any bankruptcy, insolvency or other similar proceeding
affecting creditors' rights generally (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent, the
Issuing Bank and each Lender with respect thereto).

          (b) Each of the Borrowers jointly and severally agrees to indemnify
and hold harmless each Agent, the Issuing Bank, each Lender and each of their
Affiliates and their respective officers, directors, employees, agents and
advisors (each, an "Indemnified Party") from and against any and all claims,
damages, losses, liabilities and expenses (including, without limitation,
reasonable fees and expenses of counsel) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection
with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) this Agreement, the actual or proposed use of the proceeds
of the Advances, the Loan Documents or any of the transactions contemplated
thereby, including, without limitation, any acquisition or proposed acquisition
(including, without limitation, the Acquisition and any of the other
transactions contemplated by the Loan Documents) by any Borrower or any of its
Subsidiaries or
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                                      77

Affiliates of all or any portion of the Equity Interests in or Debt securities
or substantially all of the assets of CIGNAP&C, except to the extent such claim,
damage, loss, liability or expense is found in a final, non-appealable judgment
by a court of competent jurisdiction to have resulted from such Indemnified
Party's gross negligence or willful misconduct. In the case of an investigation,
litigation or other proceeding to which the indemnity in this Section 9.04(b)
applies, such indemnity shall be effective whether or not such investigation,
litigation or proceeding is brought by any Loan Party, its directors,
shareholders or creditors or an Indemnified Party or any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated by
the Loan Documents are consummated. Each of the Borrowers also agrees not to
assert any claim against any Agent, any Lender or any of their Affiliates, or
any of their respective officers, directors, employees, attorneys and agents, on
any theory of liability, for special, indirect, consequential or punitive
damages arising out of or otherwise relating to the credit facilities provided
hereunder, the actual or proposed use of the proceeds of the Advances or the
Letters of Credit, the Loan Documents or any of the transactions contemplated by
the Loan Documents.

          (c) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance or LIBO Rate Advance is made by any Borrower to or for the account
of a Lender other than on the last day of the Interest Period for such Advance,
as a result of a payment or Conversion pursuant to Section 2.07, 2.10(b)(i) or
2.11(d), acceleration of the maturity of the Notes pursuant to Section 6.01 or
for any other reason, or if any Borrower fails to make any payment or prepayment
of an Advance for which a notice of prepayment has been given or that is
otherwise required to be made, whether pursuant to Section 2.05, 2.07 or 6.01 or
otherwise, the Borrowers jointly and severally agree, within 10 days after
demand by such Lender (with a copy of such demand to the Administrative Agent),
which demand shall include a calculation in reasonable detail of the amount
demanded, to pay to the Administrative Agent for the account of such Lender any
amounts required to compensate such Lender for any additional losses, costs or
expenses that it may reasonably incur as a result of such payment or Conversion
or such failure to pay or prepay, as the case may be, including, without
limitation, any loss (excluding loss of anticipated profits), cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by any Lender to fund or maintain such Advance.

          (d) Without prejudice to the survival of any other agreement of any
Loan Party hereunder or under any other Loan Document, the agreements and
obligations of the Borrowers contained in Sections 2.10 and 2.12 and this
Section 9.04 shall survive the payment in full of principal, interest and all
other amounts payable hereunder and under any of the other Loan Documents.

          SECTION 9.05. Right of Set-off. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, each Agent and each Lender and each of their
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and otherwise apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Agent, such Lender or such
Affiliate to or for the credit or the account of any Borrower against any and
all of the obligations of such Borrower now or hereafter existing under the Loan
Documents, irrespective of whether such Agent or such Lender shall have made any
demand under this Agreement or such Note or Notes and although such obligations
may be unmatured. Each Agent and each Lender agrees promptly to notify each
Borrower after any such
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                                      78

set-off and application; provided, however, that the failure to give such notice
shall not affect the validity of such set-off and application. The rights of
each Agent and each Lender and their respective Affiliates under this Section
are in addition to other rights and remedies (including, without limitation,
other rights of set-off) that such Agent, such Lender and their respective
Affiliates may have.

          SECTION 9.06. Binding Effect. This Agreement shall become effective
when it shall have been executed by each Borrower and each Agent and the
Administrative Agent shall have been notified by each Initial Lender that such
Initial Lender and has executed it and thereafter shall be binding upon and
inure to the benefit of each Borrower, each Agent and each Lender and their
respective successors and assigns, except that no Borrower shall have the right
to assign its rights hereunder or any interest herein without the prior written
consent of the Lenders.

          SECTION 9.07. Assignments and Participations. (a) Each Lender may, and
so long as no Default shall have occurred and be continuing, if demanded by any
Borrower (following a demand by such Lender pursuant to Section 2.17) upon at
least five Business Days' notice to such Lender and the Administrative Agent,
will, assign to one or more Eligible Assignee all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its WC Commitment, the Committed Advances owing to it and the
Committed Note or Notes held by it); provided, however, that (i) each such
assignment shall be of a uniform, and not a varying, percentage of all rights
and obligations under and in respect of the Committed Facility, the "Committed
Facility" under the ACE INA 364-Day Revolving Credit Facility and the "Committed
Facility" under the Borrowers' 364-Day Revolving Credit Facility, except for any
non-pro rata assignments to a SPC pursuant to Section 9.07(l), any non-pro rata
assignment made by a Downgraded Lender after a request by the Issuing Bank
pursuant to Section 2.19 (and any subsequent non-pro rata assignment of the
interest so assigned or by the Downgraded Lender) and any other non-pro rata
assignment approved by the Administrative Agent and any Borrower, (ii) except in
the case of an assignment to a Person that, immediately prior to such
assignment, was a Lender, an Affiliate of any Lender or an Approved Fund of any
Lender or an assignment of all of a Lender's rights and obligations under this
Agreement, the aggregate amount of the WC Commitments being assigned to such
Eligible Assignee pursuant to such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be
less than $10,000,000, (iii) each such assignment shall be to an Eligible
Assignee, (iv) each assignment made as a result of a demand by any Borrower
pursuant to Section 2.17 shall be arranged by such Borrower after consultation
with the Administrative Agent and shall be either an assignment of all of the
rights and obligations of the assigning Lender under this Agreement or an
assignment of a portion of such rights and obligations made concurrently with
another such assignment or other such assignments that together cover all of the
rights and obligations of the assigning Lender under this Agreement, (v) no
Lender shall be obligated to make any such assignment as a result of a demand by
any Borrower pursuant to Section 2.17 unless and until such Lender shall have
received one or more payments from either such Borrower or other Eligible
Assignees in an aggregate amount at least equal to the aggregate outstanding
principal amount of the Committed Advances owing to such Lender, together with
accrued interest thereon to the date of payment of such principal amount and all
other amounts payable to such Lender under this Agreement, (vi) as a result of
such assignment, no Borrower shall be subject to additional amounts under
Section 2.11 or 2.13, (vii) no such assignment shall be permitted without the
consent of the Administrative Agent and, so long as no Default shall have
occurred and be continuing, the Parent (which consents shall not be unreasonably
withheld) and (viii) the parties to each such assignment shall
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                                       79

execute and deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with any Note
or Notes subject to such assignment and a processing and recordation fee of
$2,500.00.

          (b) Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in such Assignment and Acceptance, (i) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender, hereunder and (ii) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Sections 2.11, 2.13 and 9.04
to the extent any claim thereunder relates to an event arising prior to such
assignment) and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all of the remaining portion
of an assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto).

          (c) By executing and delivering an Assignment and Acceptance, each
Lender assignor thereunder and each assignee thereunder confirm to and agree
with each other and the other parties thereto and hereto as follows: (i) other
than as provided in such Assignment and Acceptance, 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 any Loan
Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, any
Loan Document or any other instrument or document furnished pursuant thereto;
(ii) such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations under any
Loan Document or any other instrument or document furnished pursuant thereto;
(iii) such assignee confirms that it has received a copy of this Agreement,
together with copies of the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into such Assignment and Acceptance;
(iv) such assignee will, independently and without reliance upon any 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 this Agreement; (v) such assignee
confirms that it is an Eligible Assignee; (vi) such assignee appoints and
authorizes each Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Loan Documents as are delegated to such
Agent by the terms hereof and thereof, together with such powers and discretion
as are reasonably incidental thereto; and (vii) such assignee agrees that it
will perform in accordance with their terms all of the obligations that by the
terms of this Agreement are required to be performed by it as a Lender.

          (d) The Administrative Agent, acting for this purpose (but only for
this purpose) as the agent of the Borrowers, shall maintain at its address
referred to in Section 9.02 a copy of each Assignment and Acceptance and each
Designation Agreement delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and, with respect to
Lenders other than Designated Bidders, the WC Commitment of, and principal
amount of the Advances owing to, each Lender from time to time (the "Register").
The entries in the Register shall be conclusive and binding
<PAGE>

                                      80

for all purposes, absent manifest error, and the Borrowers, the Agents and the
Lenders shall treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement. The Register shall be
available for inspection by any Borrower or any Agent or any Lender at any
reasonable time and from time to time upon reasonable prior notice.

          (e) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee, together with any Note or Notes subject to
such assignment, the Administrative Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of Exhibit C
hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the
Parent and each other Agent. In the case of any assignment by a Lender, within
five Business Days after its receipt of such notice, each Borrower, at its own
expense, shall execute and deliver to the Administrative Agent in exchange for
the surrendered Note or Notes a new Note to the order of such Eligible Assignee
in an amount equal to the WC Commitment assumed by it pursuant to such
Assignment and Acceptance and, if any assigning Lender has retained a WC
Commitment hereunder, a new Note to the order of such assigning Lender in an
amount equal to the WC Commitment retained by it hereunder. Such new Note or
Notes shall be in an aggregate principal amount equal to the aggregate principal
amount of such surrendered Note or Notes, shall be dated the effective date of
such Assignment and Acceptance and shall otherwise be in substantially the form
of Exhibit A-1 hereto.

          (f) Each Lender (other than the Designated Bidders) may designate one
or more banks or other entities to have a right to make Competitive Bid Advances
as a Lender pursuant to Section 2.03; provided, however, that (i) no such Lender
shall be entitled to make more than 3 such designations, (ii) each such Lender
making one or more such designations shall retain the right to make Competitive
Bid Advances as a Lender pursuant to Section 2.03, (iii) each such designation
shall be to a Designated Bidder and (iv) the parties to each such designation
shall execute and deliver to the Agent, for its acceptance and recording in the
Register, a Designation Agreement. Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Designation
Agreement, the designee thereunder shall be a party hereto with a right to make
Competitive Bid Advances as a Lender pursuant to Section 2.03 and the
obligations related thereto.

          (g) By executing and delivering a Designation Agreement, the Lender
making the designation thereunder and its designee thereunder confirm and agree
with each other and the other parties hereto as follows: (i) such Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; (ii) such Lender makes no representation or warranty
and assumes no responsibility with respect to the financial condition of any
Borrower or the performance or observance by any Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such designee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Designation Agreement; (iv) such designee will, independently and without
reliance upon the Agent, such designating Lender or any other Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its
<PAGE>

                                     81

own credit decisions in taking or not taking action under this Agreement; (v)
such designee confirms that it is a Designated Bidder; (vi) such designee
appoints and authorizes the Agent to take such action as agent on its behalf and
to exercise such powers and discretion under this Agreement as are delegated to
the Agent by the terms hereof, together with such powers and discretion as are
reasonably incidental thereto; and (vii) such designee agrees that it will
perform in accordance with their terms all of the obligations which by the terms
of this Agreement are required to be performed by it as a Lender.

          (h) Upon its receipt of a Designation Agreement executed by a
designating Lender and a designee representing that it is a Designated Bidder,
the Administrative Agent shall, if such Designation Agreement has been completed
and is substantially in the form of Exhibit F hereto, (i) accept such
Designation Agreement, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Parent.

          (i) Each Lender may sell participations to one or more Persons (other
than any Loan Party or any of its Affiliates) in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its WC Commitment, the Committed Advances owing to it and the
Committed Note or Notes (if any) held by it); provided, however, that (i) such
Lender's obligations under this Agreement (including, without limitation, its WC
Commitment) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Committed Note for all
purposes of this Agreement, (iv) the Borrowers, the Agents and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement and (v) no participant
under any such participation shall have any right to approve any amendment or
waiver of any provision of any Loan Document, or any consent to any departure by
any Loan Party therefrom, except to the extent that such amendment, waiver or
consent would reduce the principal of, or interest on, the Committed Notes or
any fees or other amounts payable hereunder, in each case to the extent subject
to such participation, postpone any date fixed for any payment of principal of,
or interest on, the Committed Notes or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation. Each Lender
shall, as agent of the Borrowers solely for the purposes of this Section, record
in book entries maintained by such Lender, the name and amount of the
participating interest of each Person entitled to receive payments in respect of
any participating interests sold pursuant to this Section.

          (j) Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 9.07, disclose
to the assignee or participant or proposed assignee or participant any
information relating to any Borrower furnished to such Lender by or on behalf of
any Borrower; provided, however, that, prior to any such disclosure, the
assignee or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any Confidential Information received by it from
such Lender.

          (k) Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time create a security interest in all or any portion of
its rights under this Agreement (including, without limitation, the Advances
owing to it and the Note or Notes held by it) in favor of any Federal Reserve
Bank in accordance with Regulation A of the Board of Governors of the Federal
Reserve System.
<PAGE>

                                      82

          (l) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Lender") may grant to a special purpose funding vehicle (a
"SPC"), identified as such in writing from time to time by the Granting Lender
to the Administrative Agent and the Borrowers, the option to provide to the
Borrowers all or any part of any Committed Advance that such Granting Lender
would otherwise be obligated to make to the Borrowers pursuant to this
Agreement; provided that (i) nothing herein shall constitute a commitment by any
SPC to make any Committed Advance, (ii) if an SPC elects not to exercise such
option or otherwise fails to provide all or any part of such Committed Advance,
the Granting Lender shall be obligated to make such Committed Advance pursuant
to the terms hereof. The making of a Committed Advance by an SPC hereunder shall
utilize the WC Commitment of the Granting Lender to the same extent, and as if,
such Committed Advance were made by such Granting Lender. Each party hereto
hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
Granting Lender). In furtherance of the foregoing, each party hereto hereby
agrees (which agreement shall survive the termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior indebtedness of any SPC, it will
not institute against, or join any other person in instituting against, such SPC
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any State thereof. In
addition, notwithstanding anything to the contrary contained in this Section
9.07(l), any SPC may (i) with notice to, but without the prior written consent
of, the Parent and the Administrative Agent and without paying any processing
fee therefor, assign all or a portion of its interests in any Committed Advances
to the Granting Lender or to any financial institutions (consented to by the
Parent and Administrative Agent) providing liquidity and/or credit support to or
for the account of such SPC to support the funding or maintenance of Committed
Advances and (ii) disclose on a confidential basis any non-public information
relating to its Committed Advances to any rating agency, commercial paper dealer
or provider of any surety, guarantee or credit or liquidity enhancement to such
SPC. This section may not be amended without the written consent of each SPC.

          SECTION 9.08. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.

          SECTION 9.09. No Liability of the Issuing Bank. Each Borrower assumes
all risks of the acts or omissions of any beneficiary or transferee of any
Letter of Credit with respect to its use of such Letter of Credit. Neither the
Issuing Bank nor any of its officers, directors, employees or agents shall be
liable or responsible for: (a) the use that may be made of any Letter of Credit
or any acts or omissions of any beneficiary or transferee in connection
therewith; (b) the validity, sufficiency or genuineness of documents, or of any
endorsement thereon, even if such documents should prove to be in any or all
respects invalid, insufficient, fraudulent or forged; (c) payment by the Issuing
Bank against presentation of documents that do not strictly comply with the
terms of a Letter of Credit, including failure of any documents to bear any
reference or adequate reference to the Letter of Credit; or (d) any other
circumstances whatsoever in making or failing to make payment under any Letter
of Credit, except that such Borrower shall have a claim against the Issuing
Bank, and the Issuing Bank shall be liable to such Borrower, to the extent of
any direct, but not consequential, damages suffered by such Borrower
<PAGE>

                                      83

that such Borrower proves were caused by (i) the Issuing Bank's willful
misconduct or gross negligence as determined in a final, non-appealable judgment
by a court of competent jurisdiction in determining whether documents presented
under any Letter of Credit comply with the terms of the Letter of Credit or (ii)
the Issuing Bank's willful failure to make lawful payment under a Letter of
Credit after the presentation to it of a draft and certificates strictly
complying with the terms and conditions of the Letter of Credit. In furtherance
and not in limitation of the foregoing, the Issuing Bank may accept documents
that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary.

          SECTION 9.10. Confidentiality. Neither any Agent nor any Lender shall
disclose any Confidential Information to any Person without the consent of the
Parent, other than (a) to such Agent's or such Lender's Affiliates and their
officers, directors, employees, agents and advisors and to actual or prospective
Eligible Assignees and participants, and then only on a confidential basis, (b)
as required by any law, rule or regulation or judicial process, (c) as requested
or required by any state, Federal or foreign authority or examiner regulating
such Lender and (d) to any rating agency when required by it, provided that,
prior to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Loan Parties
received by it from such Lender.

          SECTION 9.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or any of the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such Federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement or any of the other Loan Documents in the
courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any of the other Loan
Documents to which it is a party in any New York State or Federal court. Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

          SECTION 9.12. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.

          SECTION 9.13. Termination of the Existing Credit Agreement. The
"Required Banks" under the Existing Credit Agreement, by executing this
Agreement, hereby agree to terminate the Existing Credit Agreement, as of the
Effective Date.
<PAGE>

                                      84

          SECTION 9.14. Waiver of Jury Trial. Each of the Borrowers, the Agents
and the Lenders irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to any of the Loan Documents, the Advances or the
actions of any Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.
<PAGE>

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

                                        ACE LIMITED

The Common Seal of ACE Limited
was hereunto affixed in the
presence of:

______________________________
Director

______________________________
Secretary

                                        ACE BERMUDA INSURANCE LTD.

The Common Seal of ACE Bermuda
Insurance Ltd. was hereunto
affixed in the presence of:

______________________________
Director

______________________________
Secretary

                                        TEMPEST REINSURANCE COMPANY LIMITED

The Common Seal of Tempest
Reinsurance Company Limited was
hereunto affixed in the
presence of:

______________________________
Director

______________________________
Secretary

                                        ACE INA HOLDINGS INC.

                                        By:________________________________
                                           Title:
<PAGE>

                                        MERRILL LYNCH, PIERCE, FENNER & SMITH
                                        INCORPORATED,
                                          as Lead Arranger and Syndication Agent

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

                                        MORGAN GUARANTY TRUST COMPANY
                                          OF NEW YORK,
                                          as Administrative Agent

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

                                        MELLON BANK, N.A., as Issuing Bank

                                        By:
                                           --------------------------------

                                        BANK OF AMERICA NATIONAL TRUST &
                                          SAVINGS ASSOCIATION,
                                          as Documentation Agent

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                Initial Lenders

                                        MERRILL LYNCH CAPITAL
                                        CORPORATION

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        MORGAN GUARANTY TRUST COMPANY
                                        OF NEW YORK

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        BANK OF AMERICA NATIONAL TRUST &
                                        SAVINGS ASSOCIATION

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        CHASE MANHATTAN BANK

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        MELLON BANK, N.A.

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        ABN-AMRO BANK N.V.

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        BANCO SANTANDER CENTRAL HISPANO,
                                        S.A.

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        THE BANK OF NEW YORK

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        THE BANK OF NOVA SCOTIA

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        THE FIRST NATIONAL BANK OF
                                        CHICAGO

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        BARCLAYS BANK PLC

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                                        BANQUE NATIONALE DE PARIS

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

                                        By:
                                           --------------------------------
                                           Title:
<PAGE>

                              THE BANK OF TOKYO-MITSUBISHI, LTD.

                              By:_______________________________
                                 Title:
<PAGE>

                              CIBC INC.

                              By:_______________________________
                                 Title:

<PAGE>

                              CITIBANK, N.A.

                              By:_______________________________
                                 Title:
<PAGE>

                              COMERICA BANK

                              By:_______________________________
                                 Title:
<PAGE>

                              COMMERZBANK AKTIENGESELLSCHAFT
                                NEW YORK BRANCH

                              By:_______________________________
                                 Title:

                              By:_______________________________
                                 Title:

<PAGE>

                              CREDIT LYONNAIS NEW YORK BRANCH

                              By:_______________________________
                                 Title:

<PAGE>

                              CREDIT SUISSE FIRST BOSTON

                              By:_______________________________
                                 Title:

                              By:_______________________________
                                 Title:

<PAGE>

                              DEUTSCHE BANK AG, NEW YORK
                                AND/OR CAYMAN ISLANDS BRANCHES

                              By:_______________________________
                                 Title:

                              By:_______________________________
                                 Title:

<PAGE>

                              FIRST UNION NATIONAL BANK

                              By:_______________________________
                                 Title:

<PAGE>

                              FLEET NATIONAL BANK

                              By:_______________________________
                                 Title:

<PAGE>

                              ING BANK N.V., LONDON BRANCH

                              By:_______________________________
                                 Title:

                              By:_______________________________
                                 Title:

<PAGE>

                              KBC BANK

                              By:_______________________________
                                 Title:

                              By:_______________________________
                                 Title:

<PAGE>

                              LLOYDS BANK PLC

                              By:_______________________________
                                 Title:

                              By:_______________________________
                                 Title:

<PAGE>

                              ROYAL BANK OF CANADA

                              By:_______________________________
                                 Title:

<PAGE>

                              SOCIETE GENERALE

                              By:_______________________________
                                 Title:

<PAGE>

                              STATE STREET BANK AND TRUST
                                COMPANY

                              By:_______________________________
                                 Title:

<PAGE>

                              STANDARD CHARTERED BANK

                              By:_______________________________
                                 Title:

                              By:_______________________________
                                 Title:

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