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EXHIBIT 10.1    
  

 
 

PURCHASE AGREEMENT    
  

    THIS PURCHASE AGREEMENT is made and entered into as of May 15, 2001 by and between Cerus Corporation, a Delaware corporation (the
"Company") and the purchaser whose name and address is set forth on the signature page hereof (the
"Purchaser"). 

    1.  Authorization and Sale of the Shares.  Subject to the terms and conditions of this Agreement, the
Company has authorized the issuance and sale of up to 500,000 shares (the "Shares") of its common stock (the "Common
Stock"). 

    2.  Agreements to Sell and Purchase.  On the basis of the representations and warranties contained in
this Agreement, and subject to its terms and conditions, the Company hereby agrees to sell to the Purchaser, and the Purchaser hereby agrees to purchase from the Company, the number of Shares set
forth on the signature page hereto at the purchase price set forth on such signature page (the "Purchase Price"). 

    3.  Payment and Delivery.  Payment for the Shares shall be made to the Company in Federal or other funds
immediately available against delivery of such Shares (such payment and delivery hereinafter referred to as the "Closing") at the offices of Cooley Godward llp, 3175 Hanover Street, Palo Alto, CA
94304 at 10:00 a.m., EDT, on May 17, 2001, or at such other time on the same or such other date, as shall be agreed by the Company and the Purchaser. The time and date of such payment
are hereinafter referred to as the "Closing Date." Payment for the Shares shall be made by wire transfer of immediately available funds to such account
or accounts specified by the Company. 

    Certificates
for the Shares shall be registered in the name of the Purchaser or if so indicated on the signature page hereto, in the name of a nominee designated by the Purchaser. The
certificates evidencing the Shares shall be delivered to the Purchaser on the Closing Date, with any transfer taxes payable in connection with the transfer of the Shares to the Purchaser duly paid,
against payment of the Purchase Price therefor. 

    4.  Conditions to the Company's Obligations.  The Company's obligation to issue and sell the Shares to
the Purchaser is subject to the following conditions: 

    (a) receipt
by the Company of Federal or other immediately available funds in the full amount of the Purchase Price; and 

    (b) accuracy
of the representations and warranties made by the Purchaser and the fulfillment in all material respects of those undertakings of the Purchaser to be
fulfilled prior to the Closing. 

    5.  Conditions to the Purchaser's Obligations.  The obligations of the Purchaser to purchase and pay for
the Shares on the Closing Date are subject to the following conditions: 

    (a) The
Purchaser shall have received on the Closing Date a certificate, dated the Closing Date and signed by an executive officer of the Company, to the effect that
the representations and warranties of the Company contained in this Agreement are true and correct as of the Closing Date and that the Company has complied with all of the agreements and satisfied all
of the conditions on its part to be performed or satisfied hereunder on or before the Closing Date. 

The
officer signing and delivering such certificate may rely upon the best of his or her knowledge as to proceedings threatened. 

    (b) The
Purchaser shall have received on the Closing Date an opinion of Cooley Godward llp, counsel for the Company, dated the Closing Date, to the effect set forth in
Exhibit A. Such opinion shall be rendered to the Purchaser at the request of the Company and shall so state therein. 

    (c) All corporate and other proceedings in connection with the transactions contemplated at the Closing hereby, and all documents and instruments incident to such
transactions, shall be reasonably satisfactory in substance to the Purchaser and its counsel. 

    (d) No
stockholder of the Company shall have any right (which has not been effectively waived) to require the Company to register the sale of any shares owned by such
stockholder under the Securities Act in the Registration Statement (as defined in Section 8(a)) to be filed by the Company on behalf of the Purchaser pursuant to Section 8(a). 

    6.  Representations, Warranties and Covenants of the Company.  The Company represents and warrants to,
and covenants with, the Purchaser that as of the date of this Agreement: 

    (a) The
Company has filed with the Securities and Exchange Commission (the "Commission") all documents required to be
filed pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act") during the 12 months preceding the date of this Agreement.
The following documents (collectively, the "Exchange Act Documents") complied when filed in all material respects with the Exchange Act and the
applicable rules and regulations of the Commission thereunder, and did not, when so filed, contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading: 

     (i) each
of the Quarterly Reports on Form 10-Q filed subsequent to the Annual Report on Form 10-K referred to in
(ii) below; 

    (ii) Annual
Report on Form 10-K for the Year Ended December 31, 2000; 

    (iii) Definitive
Proxy Statement filed with the Commission on April 18, 2001; and 

    (iv) All
other documents, if any, filed by the Company with the Commission since December 31, 2000. 

    (b) The
Company has been duly incorporated, is validly existing as a corporation in good standing under the laws of Delaware, has the corporate power and authority to
own its property and to conduct its business as currently conducted and as described in the Exchange Act Documents and is duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing
would not have a material adverse effect on the Company. 

    (c) The
Company does not own or control, directly or indirectly, any interest in any other corporation, association or other business entity. 

    (d) This
Agreement has been duly authorized, executed and delivered by, and is a valid and binding agreement of, the Company, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and general principles of equity and except as rights to indemnification and contribution in
Section 10 hereof may be limited under applicable law. 

    (e) The
authorized capital stock of the Company conforms as to legal matters to the description (i) of the Common Stock contained in the Company's registration
statement on Form 8-A, filed with the Commission on January 8, 1997 and (ii) of the preferred stock contained in the certificates of designation filed with the
Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998. 

    (g) The
shares of common stock outstanding prior to the issuance of the Shares have been duly authorized and are validly issued, fully paid and
non-assessable. 

    (h) The
Shares have been duly authorized and, when issued and delivered in accordance with the terms of this Agreement, will be validly issued, fully paid and
non-assessable, and the issuance of such Shares will not be subject to any preemptive or similar rights. 

    (i)  The execution and delivery by the Company of, and the performance by the Company of its obligations under, this Agreement will not contravene any provision of
applicable law or the certificate of incorporation or by-laws of the Company or any agreement or other instrument binding upon the Company that is material to the Company, except where the
contravention of such agreement or other instrument (other than the certificate of incorporation or the bylaws) would not have a material adverse effect on the Company, or any judgment, order or
decree of any governmental body, agency or court having jurisdiction over the Company, and no consent, approval, authorization or order of, or qualification with, any governmental body or agency is
required for the performance by the Company of its obligations under this Agreement, except such as may be required by the securities or Blue Sky laws of the various states in connection with the
offer and sale of the Shares and by Federal and state securities laws with respect to the Company's obligations under Sections 8 and 9 of this Agreement. 

    (j)  There
has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise,
or in the earnings, business or operations of the Company, taken as a whole, since December 31, 2000. 

    (k) There
are no legal or governmental proceedings pending or, to the knowledge of the Company, threatened to which the Company is a party or to which any of the
properties of the Company is subject other than proceedings accurately described in all material respects in the Exchange Act Documents and proceedings that would not have a material adverse effect on
the Company, or on the power or ability of the Company to perform its obligations under this Agreement to consummate the transactions contemplated by this Agreement. 

    (l)  The
Company (i) is in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human
health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants ("Environmental Laws"), (ii) has
received all permits, licenses or other approvals required of it under applicable Environmental Laws to conduct its business and (iii) is in compliance with all terms and conditions of any such
permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and
conditions of such permits, licenses or approvals would not, singly or in the aggregate, have a material adverse effect on the Company. 

    (m) To
the best of the Company's knowledge, costs and liabilities, if any, associated with its compliance with Environmental Laws as currently in effect (including,
without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related
constraints on operating activities and any potential liabilities to third parties) would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company. 

    (n) The
Company owns or possesses adequate licenses or other rights to use all patents, copyrights, trademarks, service marks, trade names, technology and
know-how necessary (in any material respect) to conduct its business in the manner described in the Exchange Act Documents; and, except as disclosed in the Exchange Act Documents, the
Company has not received any notice of infringement or conflict with (and the Company does not know of any infringement or conflict with) asserted rights of others with respect to any patents,
copyrights, trademarks, service marks, trade names, technology or know-how which could reasonably be expected to result in a material adverse effect on the Company. 

    (o) The
Company is not, and after giving effect to the offering and sale of the Shares and the application of the proceeds thereof will not be, required to register as,
an "investment company" as such term are defined in the Investment Company Act of 1940, as amended. 

    (p) Neither
the Company nor any affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act of 1933, as amended (the
"Securities Act"), an "Affiliate") of the Company has, directly, or through any agent, (i) sold,
offered for sale, solicited offers to buy or otherwise 

negotiated in respect of, any security (as defined in the Securities Act) which is or will be integrated with the sale of the Shares in a manner that would require the registration under the
Securities Act of the Shares; or (ii) offered, solicited offers to buy or sold the Shares by any form of general solicitation or general advertising (as those terms are used in
Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act; and the Company will not, and will instruct
its Affiliates not to, engage in any of the actions described in clauses (i) and (ii) of this paragraph. 

    (q) Subject
to the accuracy of the Purchaser's representations herein, it is not necessary in connection with the offer, sale and delivery of the Shares to the
Purchasers in the manner contemplated by this Agreement to register the Shares under the Securities Act. 

    (r) The
Company shall comply with all requirements of the National Association of Securities Dealers, Inc. with respect to the issuance of the Shares and the
listing thereof on The Nasdaq National Market. 

    (s) The
Company has not taken and will not, in violation of applicable law, take, any action designed to or that might reasonably be expected to cause or result in
stabilization or manipulation of the price of the Common Stock to facilitate the sale or resale of the Shares. 

    (t)  The
Company is eligible to file a registration statement on Form S-3. 

    (u) The
Company shall, as soon as practicable following the execution of this and any other Agreements, publicly disclose the sale of Shares pursuant to such Agreements
to the extent required by the Exchange Act and the applicable rules and regulations of the Commission thereunder. 

    7.  Representations, Warranties and Covenants of the Purchaser.  The Purchaser represents and warrants
to, and covenants with, the Company that: 

    (a) The
Purchaser is an "accredited investor" as defined in Regulation D under the Securities Act; the Purchaser is also knowledgeable, sophisticated and
experienced in making, and is qualified to make decisions with respect to, investments in shares presenting an investment decision like that involved in the purchase of the Shares, including
investments in securities issued by the Company and investments in comparable companies; and the Purchaser has requested, received, reviewed and considered all information it deems relevant in making
an informed decision to purchase the Shares. 

    (b) The
Purchaser is acquiring the number of Shares set forth on the signature page hereto in the ordinary course of its business and for its own account for investment
only and with no present intention of distributing any of such Shares or any arrangement or understanding with any other persons regarding the distribution of such Shares, other than as contemplated
in Section 8 of this Agreement. 

    (c) The
Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit offers to buy, purchase or otherwise acquire or
take a pledge of) any of the Shares, except in
compliance with the Securities Act and the applicable rules and regulations of the Commission thereunder. 

    (d) The
Purchaser will have, on or prior to the Closing Date, furnished to the Company a fully completed Selling Stockholder Questionnaire attached as Appendix I
hereto for use in preparation of the Registration Statement and all of the information contained therein will be true and correct as of the Closing Date. 

    (e) The
Purchaser will notify the Company immediately of any change in any such information until such time as the Purchaser has sold all of its Shares or until the
Company is no longer required to keep the Registration Statement effective. 

    (f)  In
connection with its decision to purchase the number of Shares set forth on the signature page hereto, the Purchaser has relied only upon the Exchange Act
Documents, the 

representations and warranties of the Company contained herein and the information received pursuant to Section 7(a). 

    (g) The
Purchaser will not make any sale of the Shares without complying with the provisions of this Agreement and without causing the prospectus delivery requirement
under the Securities Act to be satisfied, and the Purchaser acknowledges that the certificates evidencing the Shares will be imprinted with a legend in substantially the following form (and a
stop-transfer order may be placed against transfer of the certificates for the Shares): 

"THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, ASSIGNED, PLEDGED, TRANSFERRED OR
HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SAID ACT OR THE CORPORATION HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED." 

The
Purchaser acknowledges that there may occasionally be times when the Company determines that it must suspend the use of the Prospectus (as defined in Section 10(a)) forming part of the
Registration Statement, as set forth in Section 9. 

    (h) The
Purchaser will notify the Company promptly of the sale of any of its Shares, other than (i) sales pursuant to a Registration Statement contemplated in
Section 8 of this Agreement and (ii) sales following termination of the transfer restrictions pursuant to Section 11, and the Purchaser will furnish any information reasonably
requested by the Company, including an opinion of counsel reasonably satisfactory to the Company, to evidence the exemption from the registration requirements of the Securities Act, the applicable
rules and regulations of the Commission thereunder, and state securities laws, in reliance upon which such sales have been made. 

    (i)  This
Agreement has been duly authorized, executed and delivered by, and is a valid and binding agreement of, the Purchaser, enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and general principles of equity and except as rights to indemnification and contribution in
Section 10 hereof may be limited under applicable law. 

    (j)  The
Purchaser will not, prior to the effectiveness of the Registration Statement, if then prohibited by law or regulation, sell, offer to sell, solicit offers to
buy, dispose of, loan, pledge or grant any right with respect to (collectively, a "Disposition"), the Common Stock, nor will the Purchaser engage in any
hedging or other transaction which is designed or could reasonably be expected to lead to or result in a Disposition of Common Stock by the Purchaser or any person or entity. Such prohibited hedging
or other transaction would include, without limitation, effecting any short sale or having in effect a short position (whether such short sale or position is against the box and regardless of when
such position was entered into) or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security
(other than a broad-based market basket or index) that includes or derives any significant part of its value from the Common Stock. 

    (k) The
Purchaser will hold in confidence all information concerning this Agreement and the placement of shares hereunder until the earlier of such time as
(i) the Company has made a public announcement concerning the Agreement and the placement of shares hereunder or (ii) this Agreement is terminated. 

    8.  Shelf Registration.  The Company shall: 

    (a) use
its best efforts to prepare and file or cause to be prepared and filed with the Commission as soon as practicable but in any event by the date (the
"Filing Deadline Date") ten (10) days after the Closing Date, a registration statement (the "Registration
Statement") 

registering the resale from time to time by the Purchaser of all of the Shares. The Registration Statement shall be on Form S-3 or another appropriate form permitting registration
of such Shares for
resale by the Purchaser from time to time through the automated quotation system of The Nasdaq National Market or the facilities of a national security exchange on which the Common Stock is then
traded, or in privately negotiated transactions. The Company shall use its reasonable efforts, subject to receipt of necessary information from the Purchaser, to cause the Registration Statement to be
declared effective under the Securities Act as promptly as is practicable but in any event by the date (the "Effectiveness Deadline Date") that is
ninety (90) days after the date the Registration Statement is filed. 

    (b) Use
all commercially reasonable efforts to prepare and file with the Commission such amendments and post-effective amendments to the Registration
Statement as may be necessary to keep such Registration Statement continuously effective for a period not to exceed the earlier of (i) the second anniversary of the Closing Date, or
(ii) such time as all Shares purchased by such Purchaser pursuant to this Agreement have been sold pursuant to a registration statement or pursuant to Rule 144 under the Securities Act
(such period, the "Effectiveness Period"); cause the related prospectus to be supplemented by any required Prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and use its best efforts to comply with the provisions of the Securities Act applicable to
it with respect to the disposition of all securities covered by such Registration Statement during the Effectiveness Period in accordance with the intended methods of disposition by the sellers
thereof set forth in such Registration Statement as so amended or such Prospectus as so supplemented. 

    (c) As
promptly as practicable give notice to the Purchaser (i) when any Prospectus, Prospectus supplement or the Registration Statement or a
post-effective amendment to the Registration Statement has been filed with the Commission and, with respect to a Registration Statement or any post-effective amendment, when
the same has been declared effective. 

    (d) Use
reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of the Registration Statement or the lifting of any suspension of the
qualification (or exemption from qualification) of any of the Shares for sale in any jurisdiction in which they have been qualified for sale, in either case at the earliest possible moment, and
provide prompt notice to the Purchaser of the withdrawal of any such order. 

    (e) During
the Effectiveness Period, deliver to the Purchaser in connection with any sale by the Purchaser of Shares pursuant to the Registration Statement, without
charge, as many copies of the Prospectus or Prospectuses relating to such Shares (including each preliminary prospectus) and any amendment or supplement thereto as such the Purchaser may reasonably
request. 

    (f)  File
documents required of the Company for customary Blue Sky clearance in states specified in writing by the Purchaser; provided that the Company will not be
required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Agreement or (ii) take
any action that would subject it to general service of process in suits or to taxation in any such jurisdiction where it is not then so subject. 

    (g) Bear
all fees and expenses incurred in connection with the performance by the Company of its obligations under paragraphs (a) through (f) of this
Section whether or not the Registration Statement is declared effective, other than fees and expenses, if any, of counsel or other advisors to the Purchaser or underwriting discounts, brokerage fees
and commissions incurred by the Purchaser. 

    9.  Transfer of Shares After Registration; Suspension.  

    (a) The
Purchaser agrees that it will not effect any disposition of the Shares or its right to purchase the Shares that would constitute a sale within the meaning of
the Securities Act except as contemplated in the Registration Statement referred to in Section 8(a) and as described below or as otherwise permitted by law, and that it will promptly notify the
Company of any changes in the information set forth in the Registration Statement regarding the Purchaser or its plan of distribution. 

    (b) The
Company shall, as promptly as practicable, give notice to the Purchaser (i) of any request, following the effectiveness of the Registration Statement
under the Securities Act, by the Commission or any other federal or state governmental authority for amendments or supplements to any Registration Statement or related prospectus or for additional
information, (ii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of the Registration Statement or the
initiation or threatening of any proceedings for that purpose, (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from
qualification of any of the Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, (iv) of the occurrence of a Material Event (as defined in
Section 9(c)) and (v) of the determination by the Company that a post-effective amendment to a Registration Statement will be filed with the Commission, which notice may, at
the discretion of the Company (or as required pursuant to paragraph 9(c)), state that it constitutes a Deferral Notice, in which event the provisions of Section 9(c) shall apply. 

    (c) The
Company shall, upon (A) the issuance by the Commission of a stop order suspending the effectiveness of the Registration Statement or the initiation of
proceedings with respect to the Registration Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence of any fact (a
"Material Event") as a result of which the Registration Statement shall contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading, or the related prospectus shall contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (C) the occurrence or
existence of any pending corporate development that, in the reasonable discretion of the Company, makes it appropriate to suspend the availability of the Registration Statement and the related
Prospectus, (i) in the case of clause (B) above, subject to the next sentence, as promptly as practicable prepare and file, if necessary pursuant to applicable law, a
post-effective amendment to such Registration Statement or a supplement to the related Prospectus or any document incorporated therein by reference or file any other required document that
would be incorporated by reference into such Registration Statement and Prospectus so that such Registration Statement does not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not misleading, and such prospectus does not contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, as thereafter delivered to
the purchasers of the Shares being sold thereunder, and, in the case of a post-effective amendment to the Registration Statement, subject to the next sentence, use its reasonable efforts
to cause it to be declared effective as promptly as is practicable, and (ii) give notice to the Purchaser that the availability of the Registration Statement is suspended (a
"Deferral Notice") and, upon receipt of any Deferral Notice, the Purchaser
agrees not to sell any Shares pursuant to the Registration Statement until such Purchaser's receipt of copies of the supplemented or amended prospectus provided for in clause (i) above, or
until it is advised in writing by the Company that the Prospectus may be used, and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by
reference in such Prospectus. The Company will use all reasonable efforts to ensure that the use of the Prospectus may be resumed (x) in the case of 

clause (A) and (B) above, as promptly as is practicable, and (y) in the case of clause (C) above, as soon as, in the sole judgment of the Company, public disclosure of such
Material Event would not be prejudicial to or contrary to the interests of the Company or, if necessary to avoid unreasonable burden or expense, as soon as practicable thereafter. The Company shall be
entitled to exercise its right under this Section 9(c) to suspend the availability of the Registration Statement or any Prospectus no more than four (4) times in any twelve-month period,
and any such period during which the availability of the Registration Statement and any Prospectus is suspended (the "Deferral Period") shall not exceed
thirty (30) days. The period of any such Deferral Period shall be added to the period of time the Company has agreed to keep the Registration Statement effective. The Company shall use all
commercially reasonable efforts to limit the duration and number of any Deferral Periods. The Purchaser hereby agrees that upon receipt of any Deferral Notice from the Company, the Purchaser shall,
and shall cause each of its officers, directors, employees, affiliates, advisors, agents and representatives to, keep confidential all nonpublic information set forth in such notice including the
existence or terms of such Deferral Notice. 

    10.  Indemnity and Contribution.  (a) The Company agrees to indemnify and hold harmless the
Purchaser and each person, if any, who controls the Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all
losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) caused
by any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or the prospectus included in the Registration Statement, as amended or supplemented by
any amendment or prospectus supplement, including post-effective amendments, and including all material incorporated by reference in such prospectus (the
"Prospectus") or in any amendment or supplement thereto or in any preliminary prospectus, or caused by any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages or liabilities are caused by (i) any
such untrue statement or omission or alleged untrue statement or omission based upon information relating to the Purchaser furnished to the Company in writing by such Purchaser expressly for use
therein, or (ii) the failure of such Purchaser to comply with the covenants and agreements contained in Sections 7 and 9 hereof respecting resale of the Shares. 

    (b) The
Purchaser agrees to indemnify and hold harmless the Company, its directors and its officers and each person, if any, who controls the Company within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any
legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim), insofar as such losses, claims, damages or liabilities are caused by (i) the
failure of the Purchaser to comply with the covenants and agreements
contained in Sections 7 and 9 hereof respecting resale of the Shares, (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or the
Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was
made in reliance upon and in conformity with information relating to the Purchaser furnished in writing by the Purchaser to the Company expressly for use in the Registration Statement or Prospectus. 

    (c) In
case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to
Section 10(a) or 10(b), such person (the "indemnified party") shall promptly notify the person against whom such indemnity may be sought (the
"indemnifying party") in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the
indemnified party to represent the indemnified party and any others the indemnifying party may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such 

proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party
unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any
impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all indemnified parties, and that all such fees and expenses shall be
reimbursed as they are incurred. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are
the subject matter of such proceeding. 

    (d) To
the extent that the indemnification provided for under Section 10(a) or 10(b) is unavailable to an indemnified party or is insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the
indemnifying party or parties on the one hand and the indemnified party or parties on the other hand or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party or parties on the one
hand
and of the indemnified party or parties on the other hand in connection with the statements or omissions or other matters that resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative benefits received by the Company shall be deemed to be equal to the total net proceeds from the sale pursuant to the Purchase Agreement (before
deducting expenses and after deducting all placement agent fees) of the Shares to which such losses, claims, damages or liabilities relate. The relative benefits received by the Purchaser shall be
deemed to be equal to the value of receiving Shares that are registered under the Securities Act. The relative fault of the Purchaser on the one hand and the Company on the other hand shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, or the inaccurate or the
alleged inaccurate representation or warranty relates to information supplied by the Purchaser or by the Company and the parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method or allocation that
does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims, damages
and liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action or claim. Notwithstanding this Section 10(d), the Purchaser shall not be required to contribute any amount in
excess of the amount by which the net amount received by the Purchaser from the sale of the Shares to which such loss relates exceeds the amount of any damages that such indemnifying party has
otherwise been required to pay by reason of such untrue or alleged untrue statement or 

omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Securities Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation. 

    (e) The
remedies provided for in this Section 10 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified
party at law or equity. 

    (f)  The
indemnity and contribution provisions contained in this Section 10 and the representations, warranties and other statements of the Company and the
Purchaser contained in this Agreement shall survive the execution of this Agreement and shall remain operative and in full force and effect regardless of (i) any investigation made by or on
behalf of the Purchaser or any person controlling the Purchaser, or the Company, or the Company's officers or directors or any person controlling the Company and (ii) the sale of any Shares by
the Purchaser. 

    11.  Termination of Conditions and Obligations.  The conditions precedent imposed by Sections 7, 8 and 9
upon the transferability of the Shares shall cease and terminate as to any particular number of the Shares (and any legend on the Shares will be removed by the Company) at such time as such Shares
have been effectively registered under the Securities Act and sold or otherwise disposed of in accordance with the intended method of disposition set forth in the Registration Statement covering such
Shares, upon the passage of two years from the Closing Date, or at such time as an opinion of counsel satisfactory to the Company shall have been rendered to the effect that such conditions are not
necessary in order to comply with the Securities Act. 

    12.  Information Available.  So long as the Registration Statement is effective covering the resale of
Shares owned by the Purchaser, the Company will furnish or make available to the Purchaser: 

    (a) as
soon as practicable after it is available (but in the case of the Company's Annual Report to Stockholders, within 90 days of each fiscal year of the
Company), one copy of: 

     (i) its
Annual Report to Stockholders (which Annual Report shall contain financial statements audited in accordance with generally accepted accounting principles by a
national firm of certified public accountants); 

    (ii) if
not included in substance in the Annual Report to Stockholders, its Annual Report on Form 10-K; 

    (iii) its
Quarterly Reports on Form 10-Q; and 

    (iv) a
full copy of the particular Registration Statement covering the Shares (the foregoing, in each case, excluding exhibits unless specifically requested); and 

    (b) upon
the reasonable request of the Purchaser, an adequate number of copies of the Prospectus to supply to any other party requiring such Prospectus. 

    13.  Rule 144.  (a) The Company covenants that, if at any time before the end of the
Effectiveness Period the Company is not subject to the reporting requirements of the Exchange Act, it will cooperate with the Purchaser and take such further reasonable action as the Purchaser may
reasonably request in writing (including, without limitation, making such reasonable representations as the Purchaser may reasonably request), all to the extent required from time to time to enable
the Purchaser to sell Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 under the Securities Act and customarily taken in
connection with sales pursuant to such exemptions. Upon the written request of the Purchaser, the Company shall deliver to the Purchaser a written statement as to whether it has complied with such
reporting requirements, unless such a
statement has been included in the Company's most recent report filed pursuant to Section 12 or Section 15(d) of Exchange Act. Notwithstanding the foregoing, nothing in this
Section 13 shall be deemed to require the Company to register any of its securities (other than the Common Stock) under any section of the Exchange Act. 

    (b) The
Company shall file the reports required to be filed by it under the Exchange Act and shall comply with all other requirements set forth in the instructions to
Form S-3 in order to allow the Company to be eligible to file registration statements on Form S-3. 

    14.  Notices.  All notices and other communications provided for or permitted hereunder shall be made in
writing by hand delivery, by telecopier, by courier guaranteeing overnight delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made, if made by hand
delivery, (ii) upon confirmation, if made by telecopier, (iii) one (1) business day after being deposited with such courier, if made by overnight courier or (iv) on the
date indicated on the notice of receipt, if made by first-class mail, to the parties as follows: 

    (a) if
to the Purchaser, at its address on the signature page hereto; 

    (b) if
to the Company, to: 

Cerus
Corporation

Suite 300

2525 Stanwell Drive

Concord, California 94520

Attn: Vice President, Legal Affairs 

with
a copy to: 

Andrea
Vachss, Esq.

Cooley Godward LLP

Five Palo Alto Square

3000 El Camino Real

Palo Alto, CA 94306

Fax: (650) 849-7400 

or
to such other address as such person may have furnished to the other persons identified in this Section 14 in writing in accordance herewith. 

    15.  Severability.  If any term provision, covenant or restriction of this Agreement is held to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated thereby, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 

    16.  Modification; Amendment.  The provisions of this Agreement, including the provisions of this
sentence, may not be amended, modified or supplemented unless pursuant to an instrument in writing signed by the Company and the Purchaser. 

    17.  Entire Agreement.  This Agreement is intended by the parties as a final expression of their
agreement and is intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto with respect to the subject matter contained herein. Except as provided in
this Agreement, there are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein, with respect to such matters. This Agreement supersedes all prior
agreements and undertakings among the parties with respect to such matters. No party hereto shall have any rights, duties or obligations other than those specifically set forth in this Agreement. 

    18.  Counterparts  . This Agreement may be signed in any number of counterparts, each of which shall be
an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

    19.  Applicable Law  . This Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York 

    20.  Headings  . The headings of the sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed a part of this Agreement. 

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 

	 	 	Baxter International Inc. and Subsidiaries Pension Trust
	

 	
 	

By: /s/ Steven J. Meyer
	

 	
 	

Name: Steven J. Meyer
	

 	
 	

Title: Corporate Treasurer, Investment Committee Member
	

 	
 	

Address: One Baxter Parkway

                Deerfield, Illinois 60015
	

 	
 	

Number of Shares: 500,000
	

 	
 	

Aggregate Purchase Price: U.S. $26 Million
	

 	
 	

Tax ID No.:

	

 	
 	

Contact Name:

	

 	
 	

Telephone:

	

 	
 	

Name in which the Shares should be registered (if different):

	

 	
 	

Relationship between the Purchaser and the person or entity in whose name the Shares should be registered (if different):

Agreed
to and Accepted by: 

	 	 	CERUS CORPORATION
	

 	
 	

By:/s/ Greg W. Schafer
	 	 	Name: Greg W. Schafer
	 	 	Title: Chief Financial Officer

EXHIBIT A  

OPINION OF COUNSEL FOR THE COMPANY  

    The opinion of the counsel for the Company, to be delivered pursuant to Section 5(b) of the Purchase Agreement shall be to the effect that: 

    (A) The
Company has been duly incorporated, is validly existing as a corporation in good standing under the laws of the jurisdiction of its incorporation, has the
corporate power and authority to own its property and to conduct its business as currently conducted and as described in the Exchange Act Documents and is duly qualified to transact business and is in
good standing in California and, to such counsel's knowledge, in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to
the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on the Company. 

    (B) The
Purchase Agreement has been duly authorized, executed and delivered by, and is a valid and binding agreement of, the Company, enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and general principles of equity and except as rights to indemnification and contribution in
Section 10 thereof may be limited under applicable law. 

    (C) The
authorized capital stock of the Company conforms as to legal matters to the description (i) of the Common Stock contained in the Company's registration
statement on Form 8-A, filed with the Commission on January 8, 1997 and (ii) of the preferred stock contained in the certificates of designation filed with the
Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998. 

    (D) The
shares of common stock outstanding on the last business date immediately preceding the Closing Date have been duly authorized and are validly issued, fully paid
and non-assessable. 

    (E) The
Shares have been duly authorized and, when issued and delivered in accordance with the terms of the Purchase Agreement, will be validly issued, fully paid and
non-assessable, and the issuance of such Shares will not be subject to any preemptive or, to such counsel's knowledge, similar rights. 

    (F) Based
upon the representations, warranties and agreements of the Purchaser in Section 7 of the Purchase Agreement, it is not necessary in connection with the
offer, sale and delivery of the Shares to the Purchaser under the Purchase Agreement to register the Shares under the Securities Act, it being understood that no opinion is expressed as to any
subsequent resale of any Shares. 

QuickLinks

EXHIBIT 10.1

PURCHASE AGREEMENT<PAGE>

================================================================================

                                CREDIT AGREEMENT

                                   dated as of

                                  May 17, 2001

                                      among

                                 IMC GLOBAL INC.

                     The Borrowing Subsidiaries Party Hereto

                            The Lenders Party Hereto

                            THE CHASE MANHATTAN BANK,
                             as Administrative Agent

                                       and

                       GOLDMAN SACHS CREDIT PARTNERS L.P.,
                              as Syndication Agent

                           ---------------------------

                           J.P. MORGAN SECURITIES INC.
                     and GOLDMAN SACHS CREDIT PARTNERS L.P.,
                       as Joint Arrangers and Bookrunners

================================================================================

                                                        [CSM Ref. No. 6701-187]8
<PAGE>

                                TABLE OF CONTENTS

                                    ARTICLE I

                                   Definitions

SECTION 1.01.  Defined Terms...........................................1
SECTION 1.02.  Classification of Loans and Borrowings.................41
SECTION 1.03.  Terms Generally........................................41
SECTION 1.04.  Accounting Terms; GAAP.................................41

                                   ARTICLE II

                                   The Credits

SECTION 2.01.  Commitments............................................42
SECTION 2.02.  Loans and Borrowings...................................42
SECTION 2.03.  Requests for Borrowings................................43
SECTION 2.04.  Swingline Loans........................................44
SECTION 2.05.  Letters of Credit......................................46
SECTION 2.06.  Funding of Borrowings..................................52
SECTION 2.07.  Interest Elections.....................................52
SECTION 2.08.  Termination and Reduction of
                     Commitments......................................54
SECTION 2.09.  Repayment of Loans; Evidence of Debt...................55
SECTION 2.10.  Amortization of B Term Loans...........................56
SECTION 2.11.  Prepayment of Loans....................................57
SECTION 2.12.  Fees  .................................................60
SECTION 2.13.  Interest...............................................61
SECTION 2.14.  Alternate Rate of Interest.............................63
SECTION 2.15.  Increased Costs........................................63
SECTION 2.16.  Break Funding Payments.................................65
SECTION 2.17.  Taxes .................................................66
SECTION 2.18.  Payments Generally; Pro Rata Treatment;
                     Sharing of Setoffs...............................68
SECTION 2.19.  Mitigation Obligations; Replacement of
                     Lenders..........................................70
SECTION 2.20.  Incremental Facilities.................................71
SECTION 2.21.  Borrowing Subsidiaries.................................73

                                   ARTICLE III

                     Representations and Warranties

SECTION 3.01.  Organization; Powers...................................73
SECTION 3.02.  Authorization; Enforceability..........................74
SECTION 3.03.  Governmental Approvals; No Conflicts...................74
<PAGE>

                                                                               2

SECTION 3.04.  Financial Condition; No Material
                     Adverse Change...................................74
SECTION 3.05.  Properties.............................................75
SECTION 3.06.  Litigation and Environmental Matters...................76
SECTION 3.07.  Compliance with Laws and Agreements....................76
SECTION 3.08.  Investment and Holding Company Status..................76
SECTION 3.09.  Taxes .................................................77
SECTION 3.10.  ERISA .................................................77
SECTION 3.11.  Disclosure.............................................77
SECTION 3.12.  Subsidiaries...........................................78
SECTION 3.13.  Insurance..............................................78
SECTION 3.14.  Labor Matters..........................................78
SECTION 3.15.  Solvency...............................................79
SECTION 3.16.  Security Documents.....................................79
SECTION 3.17.  Lien Basket Amount.....................................80
SECTION 3.18.  Excluded Subsidiaries..................................80
SECTION 3.19.  Certain Payments.......................................84

                                   ARTICLE IV

                                   Conditions

SECTION 4.01.  Effective Date.........................................84
SECTION 4.02.  Each Credit Event......................................87
SECTION 4.03.  Borrowing Subsidiaries.................................87

                                    ARTICLE V

                              Affirmative Covenants

SECTION 5.01.  Financial Statements and Other
                     Information......................................88
SECTION 5.02.  Notices of Material Events.............................91
SECTION 5.03.  Information Regarding Collateral.......................91
SECTION 5.04.  Existence; Conduct of Business.........................92
SECTION 5.05.  Payment of Obligations.................................92
SECTION 5.06.  Maintenance of Properties..............................93
SECTION 5.07.  Insurance..............................................93
SECTION 5.08.  Casualty and Condemnation..............................93
SECTION 5.09.  Books and Records; Inspection and Audit
                     Rights...........................................93
SECTION 5.10.  Compliance with Laws...................................94
SECTION 5.11.  Use of Proceeds and Letters of Credit..................94
SECTION 5.12.  Additional Subsidiaries................................94
SECTION 5.13.  Further Assurances.....................................95
SECTION 5.14.  6.625% Notes Tender Offer..............................95
<PAGE>

                                                                               3

SECTION 5.15.  Refinancing of Polk County IRBs; Polk
                     Escrow...........................................95
SECTION 5.16.  Excluded Subsidiaries..................................96

                               ARTICLE VI

                           Negative Covenants

SECTION 6.01.  Indebtedness; Certain Equity
                     Securities.......................................97
SECTION 6.02.  Liens ................................................100
SECTION 6.03.  Fundamental Changes...................................102
SECTION 6.04.  Investments, Loans, Advances,
                     Guarantees and Acquisitions.....................102
SECTION 6.05.  Asset Sales...........................................105
SECTION 6.06.  Sale and Leaseback Transactions.......................107
SECTION 6.07.  Hedging Agreements....................................107
SECTION 6.08.  Restricted Payments; Certain Payments
                     of Indebtedness; Synthetic Purchase
                     Agreements......................................107
SECTION 6.09.  Transactions with Affiliates..........................109
SECTION 6.10.  Restrictive Agreements................................109
SECTION 6.11.  Amendment of Material Documents.......................111
SECTION 6.12.  Limited Expenditures..................................111
SECTION 6.13.  Interest Expense Coverage Ratio.......................111
SECTION 6.14.  Total Leverage Ratio..................................112
SECTION 6.15.  Secured Leverage Ratio................................112
SECTION 6.16.  Collateral Coverage Ratio.............................112
SECTION 6.17.  Fiscal Periods........................................113

                                   ARTICLE VII

                                Events of Default

                                  ARTICLE VIII

                                   The Agents

                                   ARTICLE IX

                                  Miscellaneous

SECTION 9.01.  Notices...............................................120
SECTION 9.02.  Waivers; Amendments...................................120
SECTION 9.03.  Expenses; Indemnity; Damage Waiver....................123
SECTION 9.04.  Successors and Assigns................................125
SECTION 9.05.  Survival..............................................128
<PAGE>

                                                                               4

SECTION 9.06.  Counterparts; Integration;
                     Effectiveness...................................128
SECTION 9.07.  Severability..........................................129
SECTION 9.08.  Right of Setoff.......................................129
SECTION 9.09.  Governing Law; Jurisdiction; Consent to
                     Service of Process..............................129
SECTION 9.10.  WAIVER OF JURY TRIAL..................................130
SECTION 9.11.  Headings..............................................131
SECTION 9.12.  Confidentiality.......................................131
SECTION 9.13.  Interest Rate Limitation..............................131

EXHIBITS:

Exhibit A -- Form of Assignment and Acceptance
Exhibit B -- Form of Collateral Coverage Certificate
Exhibit C -- Form of Collateral Sharing Agreement
Exhibit D -- Form of Guarantee Agreement
Exhibit E -- Form of Indemnity, Subrogation and Contribution Agreement
Exhibit F -- Form of Perfection Certificate
Exhibit G -- Form of Pledge Agreement
Exhibit H -- Form of Security Agreement
Exhibit I -- Forms of Opinions of Counsel

SCHEDULES:

Schedule 1.01 -- Mortgaged Properties
Schedule 2.01 -- Commitments
Schedule 3.05 -- Existing Properties
Schedule 3.06 -- Disclosed Matters
Schedule 3.12 -- Subsidiaries
Schedule 3.13 -- Insurance
Schedule 3.16(c) -- Mortgage Filing Offices
Schedule 6.01 -- Existing Indebtedness
Schedule 6.02 -- Existing Liens
Schedule 6.04 -- Permitted Investments
Schedule 6.10 -- Restrictive Agreements
<PAGE>

                        CREDIT AGREEMENT dated as of May 17, 2001, among IMC
                        GLOBAL INC., the BORROWING SUBSIDIARIES party hereto,
                        the LENDERS party hereto, THE CHASE MANHATTAN BANK, as
                        Administrative Agent, and GOLDMAN SACHS CREDIT PARTNERS
                        L.P., as Syndication Agent.

            The parties hereto agree as follows:

                                    ARTICLE I

                                   Definitions

            SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms have the meanings specified below:

            "ABR", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Alternate Base Rate.

            "Accounts Receivable" means "accounts", within the meaning of the
Uniform Commercial Code, constituting rights of the Company or one of its
Subsidiaries, as applicable, to payment for goods sold in the ordinary course of
business evidenced by invoices and shipping documents. The amount of any Account
Receivable as of any date of determination shall equal the unpaid amount
thereof, excluding or net of any claims, offsets, deductions and allowances,
whether or not recorded as contra assets or liabilities.

            "Acquisition" means an acquisition by the Company or any of its
Subsidiaries of a Person, a division, a facility or a line of business or of all
or substantially all of the assets of any of the foregoing.

            "Additional Lender" has the meaning assigned to such term in Section
2.20.

            "Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing
for any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate.
<PAGE>

                                                                               2

            "Administrative Agent" means The Chase Manhattan Bank, in its
capacity as administrative agent for the Lenders hereunder.

            "Administrative Questionnaire" means an Administrative Questionnaire
in a form supplied by the Administrative Agent.

            "Affiliate" means, with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified. With
respect to any Lender, the term "Affiliate" shall be deemed to include (a) any
entity (whether a corporation, partnership, trust or otherwise) that is engaged
in making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course of its business and is administered
or managed by such Lender or an Affiliate of such Lender and (b) in the case of
any Lender that is a fund that invests in bank loans and similar extensions of
credit, any other fund that invests in bank loans and similar extensions of
credit and is managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

            "Agents" means the Administrative Agent, the Collateral Agent and
the Syndication Agent.

            "Alternate Base Rate" means, for any day, a rate per annum equal to
the greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate
in effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect
on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate, the Base CD Rate or the Federal Funds Effective Rate, respectively.

            "Applicable Percentage" means, with respect to any Revolving Lender,
the percentage of the total Revolving Commitments represented by such Revolving
Lender's Revolving Commitment. If the Revolving Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Revolving
Commitments most recently in effect, giving effect to any assignments.

            "Applicable Rate" means, for any day (a) with respect to any B Term
Loan, (i) 2.75% per annum, in the case of an ABR Loan, or (ii) 3.75% per annum,
in the
<PAGE>

                                                                               3

case of a Eurodollar Loan, and (b) with respect to any ABR Loan or Eurodollar
Loan that is a Revolving Loan, or with respect to the commitment fees payable
hereunder, as the case may be, the applicable rate per annum set forth below
under the caption "ABR Spread", "Eurodollar Spread" or "Commitment Fee Rate", as
the case may be, based upon the Leverage Ratio as of the most recent
determination date; provided that until six months after the Effective Date the
"Applicable Rate" for purposes of clause (b) shall be the applicable rate per
annum set forth below in Category 1:

================================================================================
                          ABR          Eurodollar       Commitment Fee
   Leverage Ratio:       Spread          Spread              Rate
--------------------------------------------------------------------------------
     Category 1
    =4.50 to 1.0        2.00%           3.00%              0.500%
--------------------------------------------------------------------------------
     Category 2
    =4.0 to 1.0
   and 4.5 to 1.0       1.75%           2.75%              0.500%
--------------------------------------------------------------------------------
     Category 3
    =3.50 to 1.0
   and 4.0 to 1.0       1.50%           2.50%              0.500%
--------------------------------------------------------------------------------
     Category 4
    3.5 to 1.0          1.25%           2.25%              0.375%
================================================================================

            For purposes of the foregoing, (i) the Leverage Ratio shall be
determined as of the end of each fiscal quarter of the Company's fiscal year
based upon the Company's consolidated financial statements delivered pursuant to
Section 5.01(a) or (b) and (ii) each change in the Applicable Rate resulting
from a change in the Leverage Ratio shall be effective during the period
commencing on and including the date of delivery to the Administrative Agent of
such consolidated financial statements indicating such change and ending on the
date immediately preceding the effective date of the next such change; provided
that the Leverage Ratio shall be deemed to be in Category 1 (A) at any time that
an Event of Default has occurred and is continuing or (B) at the option of the
Administrative Agent or at the request of a majority in interest of the
Revolving Lenders if the Company fails to deliver the consolidated financial
statements required to be delivered by it pursuant to Section 5.01(a) or (b),
during the period from the expiration of the time for delivery thereof until
such consolidated financial statements are delivered.

            "Argus Lease" means, collectively, each of the Facility
Leases--Undivided Interest dated as of July 15, 1996, between U.S. Trust Company
of California, N.A. and North American Chemical Company.
<PAGE>

                                                                               4

            "Assessment Rate" means, for any day, the annual assessment rate in
effect on such day that is payable by a member of the Bank Insurance Fund
classified as "well-capitalized" and within supervisory subgroup "B" (or a
comparable successor risk classification) within the meaning of 12 C.F.R. Part
327 (or any successor provision) to the Federal Deposit Insurance Corporation
for insurance by such Corporation of time deposits made in dollars at the
offices of such member in the United States of America; provided that if, as a
result of any change in any law, rule or regulation, it is no longer possible to
determine the Assessment Rate as aforesaid, then the Assessment Rate shall be
such annual rate as shall be determined by the Administrative Agent to be
representative of the cost of such insurance to the Lenders.

            "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 9.04), and accepted by the Administrative Agent,
in the form of Exhibit A or any other form approved by the Administrative Agent.

            "Australian Operating Subsidiaries" means IMC Chemicals Australia
Pty. Ltd., Penrice Soda Products Pty. Ltd. and Wingsoar Pty. Ltd.

            "B Term Loan" means a Loan made pursuant to clause (a) of Section
2.01.

            "Base CD Rate" means the sum of (a) the Three-Month Secondary CD
Rate multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate.

            "Board" means the Board of Governors of the Federal Reserve System
of the United States of America.

            "Borrowers" means the Company and the Borrowing Subsidiaries.

            "Borrowing" means (a) Loans to the same Borrower of the same Class
and Type, made, converted or continued on the same date and, in the case of
Eurodollar Loans, as to which a single Interest Period is in effect, or (b) a
Swingline Loan.

            "Borrowing Request" means a request by a Borrower for a Borrowing in
accordance with Section 2.03.
<PAGE>

                                                                               5

            "Borrowing Subsidiaries" means PLP, Phosphates and any other
Subsidiary with respect to which a Subsidiary Borrower Election shall have been
executed and delivered as provided in Section 2.21 and with respect to which a
Subsidiary Borrower Termination has not been executed and delivered as provided
in Section 2.21.

            "Business Day" means any day that is not a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by law
to remain closed; provided that, when used in connection with a Eurodollar Loan,
the term "Business Day" shall also exclude any day on which banks are not open
for dealings in dollar deposits in the London interbank market.

            "Capital Expenditures" means, for any period, (a) the additions to
property, plant and equipment and other capital expenditures of the Company and
its consolidated Subsidiaries that are (or would be) set forth in a consolidated
statement of cash flows of the Company for such period prepared in accordance
with GAAP and (b) Capital Lease Obligations incurred by the Company and its
consolidated Subsidiaries during such period. Notwithstanding the foregoing, the
term "Capital Expenditures" shall not include (i) any acquisition of the
facilities that are the subject of the Argus Lease in connection with any
termination of the Argus Lease as contemplated by clause (b)(iii) of the
definition of the term "Net Proceeds", or (ii) capital expenditures in respect
of the reinvestment of sales proceeds, insurance proceeds and condemnation
proceeds received by the Company or any Subsidiary in connection with the sale,
transfer or other disposition of the Company's or such Subsidiary's business
units, assets or properties (other than the Salt Disposition or any Chemicals
Disposition), if (as contemplated in clause (b) of the definition of the term
"Prepayment Event" or the proviso to Section 2.11(c)) such reinvestment
(including, in the case of insurance proceeds, reinvestment in the form of
restoration or replacement of damaged property) shall have resulted in (a) the
event giving rise to the receipt of such amounts not being considered a
"Prepayment Event" as contemplated in the definition of such term or (b) such
amounts not being required to be applied as contemplated by Section 2.11(c).

            "Capital Lease Obligations" of any Person means the obligations of
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or
<PAGE>

                                                                               6

a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

            "Carlsbad IRBs" means the existing $2,700,000 aggregate principal
amount of industrial revenue bonds issued by Eddy County, New Mexico under the
Trust Indenture dated as of February 1, 1993, between Eddy County, New Mexico
and The Bank of New York, as Trustee.

            "Change in Control" means (a) the acquisition of ownership, directly
or indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof) of Equity
Interests representing more than 35% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests in the Company; (b)
occupation of a majority of the seats (other than vacant seats) on the board of
directors of the Company by Persons who were neither (i) nominated by the board
of directors of the Company nor (ii) appointed by directors so nominated; (c)
the acquisition of direct or indirect Control of the Company by any Person or
group; or (d) the occurrence of a "Change of Control", as defined in the New
Senior Notes Indentures.

            "Change in Law" means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender or
any Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of
such Lender or by such Lender's or such Issuing Bank's holding company, if any)
with any request, guideline or directive (whether or not having the force of
law) of any Governmental Authority made or issued after the date of this
Agreement.

            "Chemicals Disposition" means the sale of stock or assets comprising
all or part of the Chemicals discontinued operations as reflected in the
Company's consolidated financial statements for the year ended December 31,
2000.

            "Class", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans
<PAGE>

                                                                               7

comprising such Borrowing, are Revolving Loans, Incremental Revolving Loans, B
Term Loans, Incremental Term Loans or Swingline Loans and, when used in
reference to any Commitment, refers to whether such Commitment is a Revolving
Commitment or Term Loan B Commitment.

            "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

            "Collateral" means any and all "Collateral", as defined in any
applicable Security Document.

            "Collateral Agent" means The Chase Manhattan Bank, in its capacity
as collateral agent under the Loan Documents.

            "Collateral Coverage Amount" means, as of any date, the Collateral
Value Amount determined as of such date or, if such date is not the last day of
a fiscal quarter of the Company, as of (a) the last day of the fiscal quarter of
the Company most recently ended prior to such date or (b) any more recent date
as of which the Company shall have elected (at its option), or shall have been
required (pursuant to clause (f) of Section 5.01), to calculate the Collateral
Value Amount, provided that the Company shall have delivered to the
Administrative Agent a Collateral Coverage Certificate certifying the Collateral
Value Amount as of such more recent date.

            "Collateral Coverage Certificate" means a certificate setting forth
the calculation of the Collateral Coverage Amount, substantially in the form of
Exhibit B, signed on behalf of the Company by a Financial Officer.

            "Collateral Coverage Ratio" means, as of any date, the ratio of (a)
the Collateral Coverage Amount as of such date to (b) the sum of the outstanding
principal amount of Loans as of such date, the LC Exposure as of such date and
the Polk County Sharing Amount as of such date.

            "Collateral and Guarantee Requirement" means the requirement that:

            (a) the Collateral Agent shall have received from each Loan Party
      either (i) a counterpart of each of the Guarantee Agreement, the
      Indemnity, Subrogation and Contribution Agreement, the Pledge Agreement
      and the Security Agreement duly executed and delivered on behalf of such
      Loan Party or (ii)
<PAGE>

                                                                               8

      in the case of any Person that becomes a Loan Party after the Effective
      Date, a supplement to each of the Guarantee Agreement, the Indemnity,
      Subrogation and Contribution Agreement, the Pledge Agreement and the
      Security Agreement, in each case in the form specified therein, duly
      executed and delivered on behalf of such Loan Party;

            (b) all outstanding Equity Interests of each Subsidiary (other than
      an Excluded Subsidiary) owned by or on behalf of any Loan Party shall have
      been pledged pursuant to the Pledge Agreement (except that the Loan
      Parties shall not be required to pledge more than 65% of the outstanding
      voting Equity Interests of any Foreign Subsidiary that is not a Loan
      Party) and the Collateral Agent shall have received certificates or other
      instruments representing all such Equity Interests, together with stock
      powers or other instruments of transfer with respect thereto endorsed in
      blank;

            (c) all Indebtedness of the Company and each Subsidiary that is
      owing to any Loan Party shall be evidenced by a promissory note and shall
      have been pledged pursuant to the Pledge Agreement and the Collateral
      Agent shall have received all such promissory notes, together with
      instruments of transfer with respect thereto endorsed in blank;

            (d) all Polk County IRBs owned by or on behalf of any Loan Party
      shall have been pledged pursuant to the Pledge Agreement (if certificated)
      or the Security Agreement (if uncertificated) and either (i) if the Polk
      County IRBs are represented by certificates, the Collateral Agent shall
      have received certificates representing all such Polk County IRBs,
      together with instruments of transfer with respect thereto endorsed in
      blank or (ii) if the Polk County IRBs are not represented by certificates,
      the security interest therein granted under the Security Agreement shall
      have been perfected in a manner satisfactory to the Collateral Agent;

            (e) all documents and instruments, including Uniform Commercial Code
      financing statements, required by law or reasonably requested by the
      Collateral Agent to be filed, registered or recorded to create the Liens
      intended to be created by the Security Agreement and the Pledge Agreement
      and perfect such Liens to the extent required by, and
<PAGE>

                                                                               9

      with the priority required by, the Security Agreement and the Pledge
      Agreement, shall have been filed, registered or recorded or delivered to
      the Collateral Agent for filing, registration or recording;

            (f) the Collateral Agent shall have received (i) counterparts of a
      Mortgage with respect to each Mortgaged Property duly executed and
      delivered by the record owner of such Mortgaged Property, (ii) a policy or
      policies of title insurance issued by a nationally recognized title
      insurance company insuring the Lien of each such Mortgage as a valid first
      Lien on the Mortgaged Property described therein, free of any other Liens
      except as expressly permitted by Section 6.02, together with such
      endorsements, coinsurance and reinsurance as the Collateral Agent or the
      Required Lenders may reasonably request, and (iii) such surveys,
      abstracts, legal opinions and other documents as the Collateral Agent or
      the Required Lenders may reasonably request with respect to any such
      Mortgage or Mortgaged Property; provided that any surveys requested
      pursuant to clause (iii) above shall not be required to be received prior
      to (but shall be required upon) the date 120 days after the Effective
      Date; and

            (g) each Loan Party shall have obtained all consents and approvals
      required to be obtained by it in connection with the execution and
      delivery of all Security Documents to which it is a party, the performance
      of its obligations thereunder and the granting by it of the Liens
      thereunder.

            "Collateral Sharing Agreement" means the Collateral Sharing
Agreement, substantially in the form of Exhibit C, among the Loan Parties and
the Collateral Agent.

            "Collateral Value Amount" means, as of any date of determination,
the sum of (a) the IMC Current Asset Base as of such date, plus (b) the
Phosphate Subsidiary Current Asset Base as of such date, plus (c) the Fixed
Asset Base as of such date.

            "Commitment" means a Revolving Commitment or Term Loan B Commitment,
or any combination thereof (as the context requires).
<PAGE>

                                                                              10

            "Company" means IMC Global Inc., a Delaware corporation.

            "Consolidated EBITDA" means, for any period, the consolidated
operating earnings from (i) continuing operations of the Company, (ii)
continuing operations of the Company's consolidated Subsidiaries and (iii)
discontinued operations of the Company and its consolidated Subsidiaries, in
each case for such period before interest, taxes, depreciation, depletion,
amortization, other income and expense, minority interests, the cumulative
non-cash effect of changes in accounting standards and other non-cash
adjustments to operating earnings (other than any such non- cash charge to the
extent that it represents an accrual of or reserve for cash expenditures in any
future period), minus any non-recurring or other charges not included in
consolidated operating earnings which are cash or represent an accrual of or
reserve for cash expenditures in future periods; provided that there shall be
excluded the consolidated operating earnings (if positive) of any Subsidiary to
the extent that the declaration of dividends or similar distributions by that
Subsidiary of such consolidated operating earnings is restricted, other than due
to restrictions imposed by the Argus Lease. Except for purposes of Section 6.13,
Consolidated EBITDA for each four-quarter period will be adjusted on a
pro-forma basis to reflect any Acquisition or Disposition closed during such
period as if such Acquisition or Disposition had been closed on the first day of
such period.

            "Consolidated Interest Expense" means, for any period, (a) the
interest expense (including imputed interest expense in respect of Capital Lease
Obligations) of the Company and its Subsidiaries for such period, determined on
a consolidated basis in accordance with GAAP, minus (b) the interest income (if
any) of the Company for such period to the extent attributable to interest on
amounts held in the Polk Escrow, the Tender Escrow and the Salt Disposition
Escrow; provided that any interest expense allocable to outstanding Polk County
IRBs owned by Loan Parties shall be excluded in determining "Consolidated
Interest Expense" even if such interest expense would be included in the
determination of interest expense of the Company and its Subsidiaries determined
on a consolidated basis in accordance with GAAP.

            "Consolidated Net Income" means, for any period, the net income or
loss of the Company and its
<PAGE>

                                                                              11

Subsidiaries for such period determined on a consolidated basis in accordance
with GAAP (adjusted to exclude (i) any non-cash write-down or write-off of an
asset (other than any such write-down or write-off that requires accrual of a
reserve for cash charges for any future period), provided that upon the sale of
such asset such write-down or write-off shall not be taken into account in
calculating Consolidated Net Income, to the extent the gain from any such sale
would otherwise increase Consolidated Net Income, and (ii) any non-cash
write-ups or gains); provided that there shall be excluded (a) the income of any
Person (other than the Company) in which any other Person (other than the
Company or any Subsidiary or any director holding qualifying shares in
compliance with applicable law) owns an Equity Interest, except to the extent of
the amount of dividends or other distributions actually paid to the Company or
any of the Subsidiaries during such period, (b) the income or loss of any Person
accrued prior to the date it becomes a Subsidiary or is merged into or
consolidated with the Company or any Subsidiary or the date that such Person's
assets are acquired by the Company or any Subsidiary and (c) the net income (but
not loss) of any Subsidiary to the extent that the declaration of dividends or
similar distributions by that Subsidiary of such net income is restricted, other
than due to restrictions imposed by the Argus Lease.

            "Control" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.

            "Default" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

            "Defaulting Lender" means, at any time, a Revolving Lender that has
defaulted on its obligation to make a Revolving Loan that such Revolving Lender
is required to make hereunder and as to which the conditions to borrowing are
satisfied, provided that such default is continuing at such time.

            "Disclosed Matters" means the actions, suits and proceedings and the
environmental matters disclosed in Schedule 3.06.
<PAGE>

                                                                              12

            "Disposition" means any sale, transfer or disposition by the Company
or any of its Subsidiaries of a Subsidiary, a division, a facility or a line of
business or of all or substantially all of the assets of any of the foregoing.

            "Disqualified Equity Interests" means any class or series of Equity
Interests of any Person that by its terms or otherwise is:

            (a) required to be redeemed or repurchased or is redeemable or
      subject to repurchase at the option of the holder of such class or series
      of Equity Interests at any time on or prior to May 31, 2007; or

            (b) convertible into or exchangeable at the option of the holder
      thereof for Equity Interests referred to in clause (a) above or
      Indebtedness having a scheduled maturity on or prior to May 31, 2007.

Notwithstanding the preceding sentence, any Equity Interests that would
constitute Disqualified Equity Interests solely because the holders of the
Equity Interests have the right to require the issuer thereof to repurchase such
Equity Interests upon the occurrence of a Change of Control will not constitute
Disqualified Equity Interests if the terms of such Equity Interests provide that
the issuer may not repurchase or redeem any such Equity Interests pursuant to
such provisions prior to termination of the Commitments and payment of all Loans
and other amounts accrued or owing under the Loan Documents.

            "dollars" or "$" refers to lawful money of the United States of
America.

            "Domestic Excluded Subsidiary" means, initially, each Domestic
Subsidiary identified as a Domestic Excluded Subsidiary on Schedule 3.12 and
also includes any Domestic Subsidiary (other than a Domestic Phosphate
Subsidiary) designated by the Company as a Domestic Excluded Subsidiary after
the Effective Date in accordance with Section 5.16 and any Domestic Subsidiary
that is a subsidiary of a Domestic Excluded Subsidiary or a Foreign Excluded
Subsidiary, but excludes any such Subsidiary that ceases to be a Domestic
Excluded Subsidiary as provided in Section 5.16.
<PAGE>

                                                                              13

            "Domestic Phosphate Excluded Subsidiary" means, initially, each
Domestic Phosphate Subsidiary identified as a Domestic Phosphate Excluded
Subsidiary on Schedule 3.12 and also includes any Domestic Phosphate Subsidiary
designated by the Company as a Domestic Phosphate Excluded Subsidiary after the
Effective Date in accordance with Section 5.16 and any Domestic Phosphate
Subsidiary that is a subsidiary of a Domestic Phosphate Excluded Subsidiary or a
Foreign Phosphate Excluded Subsidiary, but excludes any such Subsidiary that
ceases to be a Domestic Phosphate Excluded Subsidiary as provided in Section
5.16.

            "Domestic Phosphate Subsidiary" means any Domestic Subsidiary that
is a Phosphate Subsidiary.

            "Domestic Subsidiary" means any Subsidiary that is not a Foreign
Subsidiary.

            "Effective Date" means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with Section 9.02).

            "Eligible Account Receivable" means, as of any date of
determination, an Account Receivable that meets each of the following criteria
at the time of creation and continues to meet such criteria at the relevant date
of determination:

            (a) the Account Receivable has been recorded in a manner consistent
      with current and historical accounting practices of the Company;

            (b) the obligor in respect of the Account Receivable is not the
      Company or one of its Subsidiaries;

            (c) the obligor in respect of the Account Receivable has not
      commenced a voluntary case under any applicable bankruptcy laws, as now
      constituted or hereafter amended, has not made an assignment for the
      benefit of creditors, a decree or order for relief has not been entered by
      a court having jurisdiction in the premises in respect of such obligor in
      an involuntary case under any applicable bankruptcy laws, as now
      constituted or hereafter amended, no other petition or other application
      for relief under any applicable bankruptcy laws has been filed against
      such obligor, and such obligor has not failed, suspended business, ceased
      to be solvent, or consented to or suffered a receiver, trustee,
<PAGE>

                                                                              14

      liquidator or custodian to be appointed for it or for all or a significant
      portion of its assets or affairs;

            (d) the Account Receivable is denominated in and provides for
      payment in United States dollars or Canadian dollars;

            (e) the Account Receivable has not been and is not required to be
      charged off or written off as uncollectible in accordance with GAAP or the
      customary business practices of the Company and its Subsidiaries; and

            (f) the Collateral Agent has a valid and perfected first priority
      perfected security interest in the Account Receivable pursuant to the
      Security Agreement.

            "Eligible Inventory" means, as of any date of determination, the
amount equal to the value of all Inventory, recorded in a manner consistent with
the current and historical accounting practices of the Company, valued at the
lower of cost or market, net of any and all reserves, including reserves taken
for or other adjustments, if any, characterized in the Company's internal
financial statements as "allowance inventory adjustment-production" or
"inventory shrink reserve-production", and before any adjustment for LIFO
accounting; provided that an item of Inventory shall be "Eligible Inventory"
only if:

            (a) such item of Inventory is characterized in the Company's
      internal financial statements as "raw materials", "work-in-process",
      "finished goods", "offsite in transit freight" or "inventory received and
      unpaid";

            (b) such item of Inventory does not include any profits or transfer
      price additions charged or accrued in connection with transfers of such
      Inventory between or among any of the Company and its Subsidiaries,
      provided that such Inventory shall only be excluded as Eligible Inventory
      up to an amount equal to such profits and transfer price additions;

            (c) a Loan Party has good and marketable title as sole owner of such
      item of Inventory;
<PAGE>

                                                                              15

            (d) such item of Inventory is located in the United States of
      America or Canada; and

            (e) such item of Inventory is subject to a valid and perfected first
      priority security interest in favor of the Collateral Agent pursuant to
      the Security Agreement.

            "Eligible Operating Material & Supplies" means, as of any date of
determination, the amount equal to the value of all Operating Material &
Supplies recorded in a manner consistent with the current and historical
accounting practices of the Company net of any and all reserves, including
reserves taken for or other adjustments, if any, characterized in the Company's
internal financial statements as "allowance for inventory-nonproduction";
provided that an item of Operating Material & Supplies shall be "Eligible
Operating Material & Supplies" only if:

            (a) such item of Operating Material & Supplies is characterized in
      the Company's internal financial statements as "production materials
      inventory", "packaging and shipping supplies", "repair parts", or
      "operating supplies";

            (b) a Loan Party has good and marketable title as sole owner of such
      item of Operating Material & Supplies;

            (c) such item of Operating Material & Supplies is located in the
      United States of America or Canada; and

            (d) such item of Operating Materials & Supplies is subject to a
      valid and perfected first priority security interest in favor of the
      Collateral Agent pursuant to the Security Agreement.

            "Environmental Laws" means all applicable laws, rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions or legally binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the use, management, release or threatened release of, or exposure
to, any Hazardous Material or to occupational health and safety matters.

            "Equity Interests" means shares of capital stock, partnership
interests, membership interests in a
<PAGE>

                                                                              16

limited liability company, beneficial interests in a trust or other equity
ownership interests in a Person.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time.

            "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Company, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

            "ERISA Event" means (a) any "reportable event", as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (e) the receipt by the Company or any ERISA Affiliate
from the PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f)
the incurrence by the Company or any of its ERISA Affiliates of any liability
with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Company or any ERISA Affiliate of
any notice, or the receipt by any Multiemployer Plan from the Company or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA.

            "Eurodollar", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate.

            "Event of Default" has the meaning assigned to such term in Article
VII.
<PAGE>

                                                                              17

            "Excluded Subsidiary" means any Domestic Excluded Subsidiary,
Foreign Excluded Subsidiary, Domestic Phosphate Excluded Subsidiary or Foreign
Phosphate Excluded Subsidiary.

            "Excluded Taxes" means, with respect to any Agent, any Lender, any
Issuing Bank or any other recipient of any payment to be made by or on account
of any obligation of the any Borrower hereunder, (a) income or franchise taxes
imposed on (or measured by) its net income by the United States of America, or
by the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which
its applicable lending office is located, (b) any branch profits taxes imposed
by the United States of America or any similar tax imposed by any other
jurisdiction described in clause (a) above and (c) in the case of a Foreign
Lender (other than an assignee pursuant to a request by the Company under
Section 2.19(b)), any withholding tax that (i) is in effect and would apply to
amounts payable to such Foreign Lender at the time such Foreign Lender becomes a
party to this Agreement (or designates a new lending office), except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the
time of designation of a new lending office (or assignment), to receive
additional amounts from the Company with respect to any withholding tax pursuant
to Section 2.17(a), or (ii) is attributable to such Foreign Lender's failure to
comply with Section 2.17(e).

            "Existing Credit Agreements" means the Company's existing 364-Day
Credit Agreement dated as of September 29, 2000, as amended, and Second Amended
and Restated Five-Year Credit Agreement dated as of September 29, 2000, as
amended.

            "Existing Defaulted Debt" means the Polk County IRBs, the Carlsbad
IRBs, the Hillsborough IRBs and the $3,400,000 aggregate principal amount of the
Company's 10.75% Senior Notes due 2003 outstanding under the 1993 Indenture.

            "Existing Defaults" means any defaults (whether currently existing
or arising in the future) in respect of the Existing Defaulted Debt.

            "Existing Synthetic Purchase Agreement" means the Issuer Share
Repurchase Agreement dated as of March 16, 2000, by and between the Company and
Morgan Guaranty Trust Company of New York.
<PAGE>

                                                                              18

            "Federal Funds Effective Rate" means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding 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 (rounded upwards, if
necessary, to the next 1/100 of 1%) 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.

            "Financial Officer" means the chief financial officer, principal
accounting officer, treasurer or controller of the Company.

            "Fixed Asset Base" means, as of any date of determination, an amount
equal to the lesser of (a) 35% of the sum of the value amounts set forth on
Schedule 1.01 with respect to each Mortgaged Property, excluding any such
Mortgaged Property that has been sold or otherwise disposed of prior to such
date,(b) the Lien Basket Amount as of such date or (c) 100% (or, after the Salt
Disposition, 150%) of the sum of the IMC Current Asset Base plus the Phosphate
Subsidiary Current Asset Base as of such date.

            "Foreign Lender" means any Lender that is organized under the laws
of a jurisdiction other than that in which the Company is located. For purposes
of this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

            "Foreign Excluded Subsidiary" means, initially, each Foreign
Subsidiary identified as a Foreign Excluded Subsidiary on Schedule 3.12 and also
includes any Foreign Subsidiary (other than a Foreign Phosphate Subsidiary)
designated by the Company as a Foreign Excluded Subsidiary after the Effective
Date in accordance with Section 5.16 and any Foreign Subsidiary that is a
subsidiary of a Domestic Excluded Subsidiary or a Foreign Excluded Subsidiary,
but excludes any such Subsidiary that ceases to be a Foreign Excluded Subsidiary
as provided in Section 5.16.

            "Foreign Phosphate Excluded Subsidiary" means, initially, each
Foreign Phosphate Subsidiary identified as a Foreign Phosphate Excluded
Subsidiary on
<PAGE>

                                                                              19

Schedule 3.12 and also includes any Foreign Phosphate Subsidiary designated by
the Company as a Foreign Phosphate Excluded Subsidiary after the Effective Date
in accordance with Section 5.16 and any Foreign Phosphate Subsidiary that is a
subsidiary of a Domestic Phosphate Excluded Subsidiary or a Foreign Phosphate
Excluded Subsidiary, but excludes any such Subsidiary that ceases to be a
Foreign Phosphate Excluded Subsidiary as provided in Section 5.16.

            "Foreign Loan Party" means IMC Canada and any other Foreign
Subsidiary the Equity Interests in which are owned by a Loan Party and that the
Company elects by notice to the Agents to designate as a Foreign Loan Party and
that has satisfied the Collateral and Guarantee Requirement.

            "Foreign Phosphate Subsidiary" means any Foreign Subsidiary that is
a Phosphate Subsidiary.

            "Foreign Subsidiary" means any Subsidiary that is organized under
the laws of a jurisdiction other than the United States of America or any State
thereof or the District of Columbia.

            "GAAP" means generally accepted accounting principles in the United
States of America.

            "Governmental Authority" means the government of the United States
of America, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

            "Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof
<PAGE>

                                                                              20

(including pursuant to any "synthetic lease" arrangement), (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or
obligation; provided, that the term Guarantee shall not include endorsements for
collection or deposit in the ordinary course of business. The amount of any
Guarantee made by any guarantor shall be deemed to be the lower of (a) an amount
equal to the stated or determinable amount of the primary obligation in respect
of which such Guarantee is made and (b) the maximum amount for which such
guarantor may be liable pursuant to the terms of the instrument embodying such
Guarantee, unless (in the case of a primary obligation that is not Indebtedness)
such primary obligation and the maximum amount for which such guarantor may be
liable are not stated or determinable, in which case the amount of such
Guarantee shall be such guarantor's maximum reasonably anticipated liability in
respect thereof as determined by the Company in good faith.

            "Guarantee Agreement" means the Guarantee Agreement, substantially
in the form of Exhibit D, among the Loan Parties and the Collateral Agent.

            "Hazardous Materials" means all explosive or radioactive substances
or wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

            "Hedging Agreement" means any interest rate protection agreement,
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging arrangement.

            "Hillsborough IRBs" means the existing $2,100,000 aggregate
principal amount of industrial revenue bonds issued by Tampa Port Authority
under the Indenture of Trust dated as of February 1, 1992, by and between Tampa
Port Authority and Dai-Ichi Kangyo Trust Company of New York, as Trustee.
<PAGE>

                                                                              21

            "IMC Canada" means IMC Canada Ltd., a Canadian federal corporation.

            "IMC Current Asset Base" means, as of any date of determination, an
amount equal to the sum of (a) 85% of the aggregate amount of Eligible Accounts
Receivable of the Loan Parties (other than the Phosphates Subsidiaries) as of
such date, plus (b) 65% of Eligible Inventory owned by the Loan Parties (other
than the Phosphates Subsidiaries) as of such date, plus (c) 50% of Eligible
Operating Material & Supplies owned by the Loan Parties (other than the
Phosphates Subsidiaries) as of such date.

            "Incremental Facilities" has the meaning assigned to such term in
Section 2.20.

            "Incremental Facility Amendment" has the meaning assigned to such
term in Section 2.20.

            "Incremental Revolving Exposure" means, with respect to any
Incremental Revolving Lender at any time, the aggregate principal amount at such
time of all outstanding Incremental Revolving Loans of such Incremental
Revolving Lender.

            "Incremental Revolving Lender" means a Lender with an outstanding
Incremental Revolving Loan.

            "Incremental Revolving Loans" has the meaning assigned to such term
in Section 2.20.

            "Incremental Term Lender" means a Lender with an outstanding
Incremental Term Loan.

            "Incremental Term Loans" has the meaning assigned to such term in
Section 2.20.

            "Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind (other than deposits or advances made by customers of such
Person in the ordinary course of business), (b) all obligations of such Person
evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (d) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding accrued salaries, vacation and other employee benefits and current
accounts
<PAGE>

                                                                              22

payable, in each case incurred in the ordinary course of business), (e) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (f) all Guarantees by such Person of
Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h)
all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (i) all obligations,
contingent or otherwise, of such Person in respect of bankers' acceptances;
provided that the term "Indebtedness" shall not be construed to include (i)
deferred taxes, (ii) contingent obligations under customary indemnification
provisions contained in contracts or agreements or (iii) obligations in respect
of customary purchase price adjustment provisions contained in contracts or
agreements relating to the purchase or sale of assets. The amount of any
Indebtedness of a Person that constitutes Indebtedness of such Person solely by
reason of clause (e) above and has not been assumed by such Person shall be
deemed to be the lesser of (i) the fair market value of the property owned or
acquired by such Person that is or may be the subject of a Lien securing such
Indebtedness and (ii) the amount of Indebtedness that is or may be secured by
such property. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person's ownership interest in or other relationship with such entity, except to
the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

            "Indemnified Taxes" means Taxes other than Excluded Taxes.

            "Indemnity, Subrogation and Contribution Agreement" means the
Indemnity, Subrogation and Contribution Agreement, substantially in the form of
Exhibit E, among the Loan Parties and the Collateral Agent.

            "Information Memorandum" means the Confidential Information
Memorandum dated April 2001, relating to the Company and the Transactions in the
form sent to the initial Lenders.
<PAGE>

                                                                              23

            "Interest Election Request" means a request by a Borrower to convert
or continue a Borrowing in accordance with Section 2.07.

            "Interest Payment Date" means (a) with respect to any ABR Loan
(other than a Swingline Loan), the last day of each March, June, September and
December, (b) with respect to any Eurodollar Loan, the last day of the Interest
Period applicable to the Borrowing of which such Loan is a part and, in the case
of a Eurodollar Borrowing with an Interest Period of more than three months'
duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months' duration after the first day of such Interest Period,
and (c) with respect to any Swingline Loan, the day that such Loan is required
to be repaid.

            "Interest Period" means, with respect to any Eurodollar Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter (or nine or twelve months thereafter if, at the time of
the relevant Borrowing, all Lenders participating therein agree to make an
interest period of such duration available), as the applicable Borrower may
elect; provided, that (a) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next
preceding Business Day and (b) any Interest Period that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end
on the last Business Day of the last calendar month of such Interest Period. For
purposes hereof, the date of a Borrowing initially shall be the date on which
such Borrowing is made and thereafter shall be the effective date of the most
recent conversion or continuation of such Borrowing.

            "Inventory" means "inventory", within the meaning of the Uniform
Commercial Code, of the Company or one of its Subsidiaries, as applicable, that
constitutes (a) finished goods processed or manufactured for sale in the
ordinary course, (b) work-in-process and (c) raw materials used in the
production of such finished goods; provided that "Inventory" shall not include
any Operating Material & Supplies.
<PAGE>

                                                                              24

            "Issuing Bank" means The Chase Manhattan Bank and each other
Revolving Lender that agrees in writing with the Company to issue Letters of
Credit (provided that notice of such agreement is given to the Administrative
Agent), in each case in its capacity as the issuer of Letters of Credit
hereunder, and its successors in such capacity as provided in Section 2.05(i).
An Issuing Bank may, in its discretion, arrange for one or more Letters of
Credit to be issued by Affiliates of such Issuing Bank, in which case the term
"Issuing Bank" shall include any such Affiliate with respect to Letters of
Credit issued by such Affiliate.

            "LC Disbursement" means a payment made by an Issuing Bank pursuant
to a Letter of Credit.

            "LC Exposure" means, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by or
on behalf of the Borrowers at such time. The LC Exposure of any Revolving Lender
at any time shall be its Applicable Percentage of the total LC Exposure at such
time.

            "Lenders" means the Persons listed on Schedule 2.01 and any other
Person that shall have become a party hereto pursuant to an Assignment and
Acceptance or an Incremental Facility Agreement, other than any such Person that
ceases to be a party hereto pursuant to an Assignment and Acceptance. Unless the
context otherwise requires, the term "Lenders" includes the Swingline Lender.

            "Letter of Credit" means any letter of credit issued pursuant to
this Agreement.

            "Leverage Ratio" means, as of the last day of any fiscal quarter,
the ratio of (a) Total Indebtedness as of such date to (b) Consolidated EBITDA
for the period of four consecutive fiscal quarters of the Company ended on such
date.

            "LIBO Rate" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on Page 3750 of the Telerate Service (or on
any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of
<PAGE>

                                                                              25

providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period. In the event that
such rate is not available at such time for any reason, then the "LIBO Rate"
with respect to such Eurodollar Borrowing for such Interest Period shall be the
rate at which dollar deposits of $5,000,000 and for a maturity comparable to
such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

            "Lien" means, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.

            "Lien Basket Amount" means, as of any date, the aggregate principal
amount of the Obligations constituting Indebtedness (as defined in the 1997
Indenture and the 1998 Indenture or in the New Senior Notes Indentures, as
applicable) that may be secured as of such date by Liens on Principal Properties
or shares of stock or debt of Restricted Subsidiaries (as defined in and within
the meaning of the 1997 Indenture and the 1998 Indenture or in and within the
meaning of the New Senior Notes Indentures, as applicable) without securing any
of the debt securities outstanding under the 1997 Indenture, the 1998 Indenture
or the New Senior Notes Indentures, in each case pursuant to the provisions of
Section 4.9 of the 1997 Indenture, Section 4.9 of the 1998 Indenture and Section
4.15(c) of the New Senior Notes Indentures, respectively.

            "Limited Expenditures" means Capital Expenditures, investments in
joint ventures and Monetary Acquisition Consideration; provided that, in the
case of any Permitted Acquisition consummated after May 31, 2003, the Monetary
Acquisition Consideration in respect thereof shall not constitute "Limited
Expenditures" if (a) the Leverage Ratio after giving effect to such Permitted
<PAGE>
                                                                              26

Acquisition and the payment or incurrence of all Monetary Acquisition
Consideration relating thereto (determined as of the end of the most recent
fiscal quarter of the Company for which financial statements are available, on a
pro forma basis as if such Permitted Acquisition had been consummated at the
beginning of the period of four consecutive fiscal quarters then ended for
purposes of Consolidated EBITDA and as if such Permitted Acquisition had been
consummated at the end of such period for purposes of determining Total
Indebtedness) shall not exceed 4.0 to 1.0, (b) after giving effect to such
Permitted Acquisition and the payment or incurrence of all Monetary Acquisition
Consideration relating thereto, the available amount of the unused Revolving
Commitments (taking into account the total Revolving Exposures and any
limitations on borrowing attributable to the Collateral Coverage Ratio at the
time) shall not be less than $100,000,000 and (c) the Agents shall have received
a certificate signed on behalf of the Company by a Financial Officer setting
forth reasonably detailed calculations demonstrating satisfaction of the
conditions set forth in clauses (a) and (b) above.

            "Loan" means any loan made by a Lender to a Borrower pursuant to
this Agreement.

            "Loan Documents" means this Agreement, the promissory notes, if any,
executed and delivered pursuant to Section 2.09(e), the Guarantee Agreement, the
Indemnity, Subrogation and Contribution Agreement and the Security Documents.

            "Loan Parties" means the Company and the Subsidiary Loan Parties.

            "Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations or financial condition of the Company and the
Subsidiaries taken as a whole, (b) the ability of the Loan Parties to perform
their obligations under the Loan Documents or (c) the rights of or benefits
available to the Lenders under the Loan Documents.

            "Material Indebtedness" means Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Hedging Agreements
or the Existing Synthetic Purchase Agreement, of any one or more of the Company
and its Subsidiaries in an aggregate principal amount exceeding $20,000,000. For
purposes of determining Material Indebtedness, the "principal amount" of the
obligations of the Company or
<PAGE>

                                                                              27

any Subsidiary in respect of any Hedging Agreement or the Existing Synthetic
Purchase Agreement at any time shall be the maximum aggregate amount (giving
effect to any netting agreements) that the Company or such Subsidiary would be
required to pay if such Hedging Agreement or the Existing Synthetic Purchase
Agreement, as applicable, were terminated at such time.

            "Monetary Acquisition Consideration" means, in respect of any
Permitted Acquisition, consideration in the form of cash or the assumption or
incurrence of Indebtedness, including any Indebtedness resulting from such
Permitted Acquisition described in clause (vi) or (vii) of Section 6.01(a).

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

            "Mortgage" means a mortgage, deed of trust or other security
document granting a Lien on any Mortgaged Property to secure any of the
Obligations. Each Mortgage shall be reasonably satisfactory in form and
substance to the Collateral Agent.

            "Mortgaged Property" means each parcel of real property and the
improvements thereto identified on Schedule 1.01.

            "Multiemployer Plan" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

            "Net Proceeds" means, with respect to any event (a) the cash
proceeds received in respect of such event including (i) any cash received in
respect of any non-cash proceeds constituting deferred payment obligations,
notes receivable, purchase price adjustment payments, earnouts or similar
payment obligations, but in each case only as and when received, (ii) in the
case of a casualty, insurance proceeds, and (iii) in the case of a condemnation
or similar event, condemnation awards and similar payments, net of (b) the sum
of (i) all reasonable fees and out-of-pocket expenses paid by the Company and
its Subsidiaries to third parties (other than Affiliates) in connection with
such event, (ii) in the case of a sale, transfer or other disposition of an
asset (including pursuant to a sale and leaseback transaction or a casualty or a
condemnation or similar proceeding), the amount of all payments required to be
made by the Company and its Subsidiaries as a result of such event to repay
Indebtedness (other than Loans) secured by such asset, (iii) in the case of the
Salt Disposition or any Chemicals Disposition, any payments made promptly
<PAGE>

                                                                              28

following the Salt Disposition or such Chemicals Disposition in respect of the
termination of the Argus Lease, and (iv) the amount of all taxes paid (or
reasonably estimated to be payable) by the Company and its Subsidiaries, and the
amount of any reserves established by the Company and its Subsidiaries to fund
contingent liabilities or contingent obligations reasonably estimated to be
payable and that are directly attributable to such event (as reasonably
determined by the Company).

            "New Senior Notes" means the senior unsecured notes to be issued by
the Company on or prior to the Effective Date in an aggregate principal amount
not less than $550,000,000 and the Indebtedness represented thereby.

            "New Senior Notes Indentures" means the indentures under which the
New Senior Notes are issued and all other instruments, agreements and other
documents evidencing or governing the New Senior Notes or providing for any
Guarantee or other right in respect thereof.

            "1998 Indenture" means the Indenture dated as of August 1, 1998,
between the Company and The Bank of New York, as Trustee.

            "1991 Indenture" means the Indenture dated as of December 1, 1991,
between the Company (as successor to IMC Fertilizer Group, Inc.) and The Bank of
New York, as Trustee.

            "1997 Indenture" means the Indenture dated as of July 17, 1997,
between the Company and The Bank of New York, as Trustee.

            "1993 Indenture" means the Indenture dated as of June 15, 1993,
between the Company (as successor to IMC Fertilizer Group, Inc.) and NationsBank
of Georgia, National Association, as Trustee.

            "Obligations" has the meaning assigned to such term in the
Collateral Sharing Agreement.

            "Operating Material & Supplies" means "inventory", within the
meaning of the Uniform Commercial Code, of the Company or one of its
Subsidiaries, as applicable, that constitutes consumables or repair parts used
in the production of finished goods of the Company or one of its Subsidiaries.
<PAGE>

                                                                              29

            "Other Taxes" means any and all present or future recording, stamp,
documentary, excise, transfer, sales, property or similar taxes, charges or
levies arising from any payment made under any Loan Document or from the
execution, delivery or enforcement of, or otherwise with respect to, any Loan
Document.

            "PBGC" means the Pension Benefit Guaranty Corporation referred to
and defined in ERISA and any successor entity performing similar functions.

            "Perfection Certificate" means a certificate in the form of Exhibit
F or any other form approved by the Collateral Agent.

            "Permitted Acquisition" means any Acquisition by the Company or any
of its Subsidiaries if, immediately after giving effect thereto, (a) no Default
has occurred and is continuing or would result therefrom, (b) all transactions
related thereto are consummated in accordance with applicable laws, (c) all the
Equity Interests of each Subsidiary formed for the purpose of or resulting from
such Acquisition shall be owned directly by the Company or one of its
Subsidiaries and all actions required to be taken with respect to such acquired
or newly formed Subsidiary under Sections 5.12 and 5.13 have been taken, (d) the
Company and its Subsidiaries are in compliance, on a pro forma basis after
giving effect to such acquisition, with the covenants contained in Sections
6.13, 6.14, 6.15 and 6.16 recomputed as of the last day of the most recently
ended fiscal quarter of the Company for which financial statements are
available, as if such Acquisition (and any related incurrence or repayment of
Indebtedness with any new Indebtedness being deemed to be amortized over the
applicable testing period in accordance with its terms, and assuming that any
Revolving Loans borrowed in connection with such Acquisition are repaid with
excess cash balances when available) had occurred on the first day of each
relevant period for testing such compliance and (e) the Company has delivered a
certificate to the Agents to the effect set forth in clauses (a), (b), (c) and
(d) above, together with all relevant financial information for the Person or
assets to be acquired.

            "Permitted Debt Securities" means unsecured debt securities issued
by the Company that (a) mature later than, and do not require any amortization
or similar scheduled principal payments prior to, May 31, 2007, and (b) have
terms and conditions (other than with respect to interest rates and redemption
premiums) no less favorable
<PAGE>

                                                                              30

to the Company and the Lenders than those of the New Senior Notes.

            "Permitted Encumbrances" means:

            (a) Liens imposed by law for Taxes or other governmental charges
      that are not yet due or are being contested in compliance with Section
      5.05;

            (b) carriers', warehousemen's, mechanics', materialmen's,
      repairmen's, landlord's and other like Liens imposed by law, and
      landlord's Liens imposed by contracts, in each case arising in the
      ordinary course of business and securing obligations that are not overdue
      by more than 30 days or are being contested in compliance with Section
      5.05;

            (c) pledges and deposits made in the ordinary course of business in
      compliance with workers' compensation, unemployment insurance and other
      social security laws or regulations;

            (d) pledges and deposits to secure the performance of bids, trade
      contracts, leases, statutory obligations, surety and appeal bonds,
      performance bonds and other obligations of a like nature, in each case in
      the ordinary course of business;

            (e) judgment liens in respect of judgments that do not constitute an
      Event of Default under clause (k) of Article VII;

            (f) easements, zoning restrictions, rights-of-way, covenants,
      conditions, restrictions and similar encumbrances (in each case, that are
      reflected in, or would be reflected in, title reports) on real property
      imposed by law or arising in the ordinary course of business that do not
      secure any monetary obligations and do not materially detract from the
      value of the affected property or interfere with the continued use of the
      affected property in the ordinary conduct of business of the Company or
      any Subsidiary;

            (g) Liens in favor of banks on items in collection (and the
      documents related thereto) arising in the ordinary course of business of
      the Company and the Subsidiaries under Article IV of the Uniform
      Commercial Code;
<PAGE>

                                                                              31

            (h) Liens arising from Permitted Investments under clause (d) of the
      definition of the term "Permitted Investments"; and

            (i) other Liens securing monetary obligations in an aggregate amount
      not exceeding $25,000,000 at any time;

provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.

            "Permitted Investments" means:

            (a) direct obligations of, or obligations the principal of and
      interest on which are unconditionally guaranteed by, the United States of
      America (or by any agency thereof to the extent such obligations are
      backed by the full faith and credit of the United States of America), in
      each case maturing within one year from the date of acquisition thereof;

            (b) investments in commercial paper maturing within 270 days from
      the date of acquisition thereof and having, at such date of acquisition,
      the highest credit rating obtainable from S&P or from Moody's;

            (c) investments in certificates of deposit, banker's acceptances and
      time deposits maturing within 180 days from the date of acquisition
      thereof issued or guaranteed by or placed with, and money market deposit
      accounts issued or offered by, any domestic office of any commercial bank
      organized under the laws of the United States of America or any State
      thereof which has a combined capital and surplus and undivided profits of
      not less than $500,000,000;

            (d) fully collateralized repurchase agreements with a term of not
      more than 30 days for securities described in clause (a) above and entered
      into with a financial institution satisfying the criteria described in
      clause (c) above; and

            (e) in the case of any Foreign Subsidiary, (i) marketable direct
      obligations issued by, or unconditionally guaranteed by, the sovereign
      nation in which such Foreign Subsidiary is organized and is conducting
      business or issued by any agency of such sovereign nation and backed by
      the full faith and credit of such sovereign nation, in each case
<PAGE>

                                                                              32

      maturing within one year from the date of acquisition, so long as the
      indebtedness of such sovereign nation is rated at least A by S&P or A2 by
      Moody's or carries an equivalent rating from a comparable foreign rating
      agency or (ii) investments of the type and maturity described in clauses
      (b) through (d) above of foreign obligors, which investments or obligors
      have ratings described in such clauses or equivalent ratings from
      comparable foreign rating agencies.

            "Permitted PLP Purchase" means any acquisition or purchase of any
Equity Interest in PLP from a Person other than the Company or a Subsidiary for
which the only consideration consists of capital stock of the Company.

            "Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

            "Phosphate Cap Amount" has the meaning assigned to such term in the
definition of "Phosphate Subsidiary Current Asset Base".

            "Phosphate Subsidiaries" means PLP, Phosphates and their respective
subsidiaries.

            "Phosphate Subsidiary Current Asset Base" means, as of any date of
determination, an amount equal to the sum of (a) the lesser of (i) the total
unpaid amount of Indebtedness and other obligations owed by any of PLP and its
Subsidiaries (other than Phosphates and its Subsidiaries) to any of the Company
and its Subsidiaries (other than Phosphate Subsidiaries) as of such date (the
"PLP Cap Amount") and (ii) an amount equal to (A) the sum of (1) 85% of the
aggregate amount of Eligible Accounts Receivable of PLP and its Subsidiaries
(other than Phosphates and its Subsidiaries) that are Loan Parties as of such
date, plus (2) 65% of Eligible Inventory owned by PLP and its Subsidiaries
(other than Phosphates and its Subsidiaries) that are Loan Parties as of such
date, plus (3) 50% of Eligible Operating Material & Supplies owned by PLP and
its Subsidiaries (other than Phosphates and its Subsidiaries) that are Loan
Parties as of such date, multiplied by (B) a fraction, the numerator of which is
equal to the PLP Cap Amount and the denominator of which is equal to the sum of
the PLP Cap Amount plus the aggregate principal amount of outstanding PLP Notes
as of such date, and (b) the lesser of (i) the total unpaid amount of
Indebtedness and other obligations owed by any
<PAGE>

                                                                              33

of the Phosphate Subsidiaries to any of the Company and its Subsidiaries (other
than the Phosphate Subsidiaries) as of such date (the "Phosphates Cap Amount")
and (ii) an amount equal to (A) the sum of (1) 85% of the aggregate amount of
Eligible Accounts Receivable of Phosphates and its Subsidiaries that are Loan
Parties as of such date, plus (2) 65% of Eligible Inventory owned by Phosphates
and its Subsidiaries that are Loan Parties as of such date, plus (3) 50% of
Eligible Operating Material & Supplies owned by Phosphates and its Subsidiaries
that are Loan Parties as of such date, multiplied by (B) a fraction, the
numerator of which is equal to the Phosphates Cap Amount and the denominator of
which is equal to the sum of the Phosphates Cap Amount plus the aggregate
principal amount of outstanding PLP Notes as of such date; provided that the
"Phosphate Subsidiary Current Asset Base" as of any date of determination shall
not in any event exceed the Phosphates Cap Amount as of such date; provided
further that, if PLP becomes a wholly-owned Subsidiary of the Company and the
amount of the Guarantees by the Phosphate Subsidiaries under the Guarantee
Agreement cease to be limited, then the "Phosphate Subsidiary Current Asset
Base" will cease to be limited by the PLP Cap Amount and the Phosphates Cap
Amount, with the result that the "Phosphate Subsidiary Current Asset Base" as of
any date of determination will be an amount equal to the sum of the amounts
determined pursuant to clauses (a)(ii)(A) and (b)(ii)(A) above.

            "Phosphates" means IMC Phosphates Company, a Delaware general
partnership.

            "Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Company or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

            "Pledge Agreement" means the Pledge Agreement, substantially in the
form of Exhibit G, among the Loan Parties and the Collateral Agent.

            "PLP" means Phosphate Resource Partners Limited Partnership.

            "PLP Cap Amount" has the meaning assigned to such term in the
definition of "Phosphate Subsidiary Current Asset Base".
<PAGE>

                                                                              34

            "PLP Notes" means PLP's 7.0% Senior Notes due 2008.

            "PLP Partnership Agreement" means the Amended and Restated Agreement
of Limited Partnership of Freeport-McMoRan Resource Partners, Limited
Partnership (predecessor to Phosphate Resource Partners Limited Partnership)
dated as of May 29, 1987, as amended.

            "Polk County IRBs" means the existing $75,000,000 aggregate
principal amount of industrial revenue bonds issued by Polk County Industrial
Development Authority under the Indenture of Trust dated as of December 1, 1991,
between the Polk County Industrial Development Authority and The Bank of New
York, as Trustee.

            "Polk County Sharing Amount" means, as of any date, (a) the
outstanding principal amount of the Polk County IRBs as of such date (excluding
the portion thereof that is pledged as Collateral as of such date) or (b) if the
Polk County IRBs have been refinanced on or prior to such date, the outstanding
principal amount of any refinancing Indebtedness that is or may be entitled to
be secured by any of the Collateral.

            "Polk Escrow" means an escrow account established by the Collateral
Agent under the Security Agreement for the purpose of escrowing a portion of the
Net Proceeds from the issuance of the New Senior Notes equal to the aggregate
principal amount of the Polk County IRBs that are outstanding as of the
Effective Date and are not owned by a Loan Party (plus, if the Polk County IRBs
are refinanced, the proceeds of such refinancing received by or on behalf of the
Loan Parties in payment of the Polk County IRBs then owned by the Loan Parties),
with such escrowed funds to be applied to pay (or purchase, to the extent
permitted by Section 5.15) the Polk County IRBs that are not owned by the Loan
Parties or, if the Polk County IRBs are refinanced, then (a) first, to repay
Revolving Borrowings then outstanding and (b) second, to pay, prepay or
repurchase (i) the 7.4% Notes or (ii) to the extent that the sum of the Salt
Disposition Escrow and the Polk Escrow exceeds the principal amount of the 7.4%
Notes outstanding from time to time, the Company's 6.50% Notes due 2003, the
2005 Senior Notes or obligations under the Existing Synthetic Purchase
Agreement, or to prepay B Term Loans (or any combination thereof).
<PAGE>

                                                                              35

            "Prepayment Event" means:

            (a) any sale, transfer or other disposition (including pursuant to a
      sale and leaseback transaction) of any property or asset of the Company or
      any Subsidiary, other than (i) dispositions described in clauses (a), (b),
      (e), (f) and (g) of Section 6.05, (ii) the Salt Disposition and (iii)
      other dispositions resulting in aggregate Net Proceeds not exceeding
      $10,000,000 during any fiscal year of the Company; or

            (b) any casualty or other insured damage to, or any taking under
      power of eminent domain or by condemnation or similar proceeding of, any
      property or asset of the Company or any Subsidiary, but only to the extent
      that (i) the Net Proceeds therefrom have not been applied or committed by
      contract to be applied to repair, restore or replace such property or
      asset or to acquire real property, equipment or other tangible assets to
      be used in the business of the Company and its Subsidiaries, in each case
      within 270 days after such event or (ii) in the case of any such Net
      Proceeds committed to be so applied (but not yet so applied) as of the
      date that is 270 days after such event, such Net Proceeds have not been so
      applied within 360 days after such event; or

            (c) the incurrence by the Company or any Subsidiary of any
      Indebtedness, including any Permitted Debt Securities permitted under
      clause (viii) of Section 6.01(a) but excluding any other Indebtedness
      permitted under Section 6.01(a).

            "Prime Rate" means the rate of interest per annum publicly announced
from time to time by The Chase Manhattan Bank as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective on the date such change is publicly announced as being effective.

            "Recalculation Event" means (a) any reduction in the maximum amount
that any of the Phosphate Subsidiaries could be required to pay under the
Guarantee Agreement by reason of a reduction in the amount of Indebtedness and
other obligations owed by any of the Phosphate Subsidiaries to the Company or
any of its other Subsidiaries, other than reductions that would not reduce the
total maximum amount that all the Phosphate Subsidiaries could be required to
pay under the Guarantee
<PAGE>

                                                                              36

Agreement (the "Phosphates Guarantee Limit") to an amount that is $25,000,000
less than the Phosphates Guarantee Limit as of the most recent date as of which
the Collateral Value Amount shall have been determined and with respect to which
a Collateral Coverage Certificate shall have been delivered to the
Administrative Agent, (b) any sale, transfer or disposition of any assets
constituting Eligible Accounts Receivable, Eligible Inventory or Eligible
Operating Material & Supplies, other than sales, transfers and dispositions (i)
of Eligible Inventory or Eligible Operating Material & Supplies in the ordinary
course of business or (ii) to another Loan Party that do not result in such
assets ceasing to constitute Eligible Accounts Receivable, Eligible Inventory or
Eligible Operating Material & Supplies, (c) any sale, transfer or disposition of
a Mortgaged Property (it being understood that the sale, transfer or disposition
of any equipment located at a Mortgaged Property or the demolition, removal or
modification of improvements at such Mortgaged Property shall not be construed
to constitute a sale, transfer or disposition for this purpose) or (d) the
incurrence of Indebtedness permitted by clause (xiv) of Section 6.01(a) that
would reduce the Fixed Asset Base by more than $5,000,000 in the aggregate.

            "Register" has the meaning set forth in Section 9.04.

            "Related Parties" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents,
advisors and trustees of such Person and such Person's Affiliates.

            "Required Lenders" means, at any time, Lenders having Revolving
Exposures, Incremental Revolving Exposures, B Term Loans, Incremental Term Loans
and unused Commitments representing more than 50% (or 66 2/3% if (a) there are
no B Term Loans or Incremental Term Loans outstanding or any Commitments in
effect to make any such Loans at such time and (b) The Chase Manhattan Bank and
Goldman Sachs Credit Partners L.P. and their respective Affiliates that are
Lenders have Revolving Exposures, Incremental Revolving Exposures and unused
Revolving Commitments representing an amount equal to or more than 50% of the
sum of the total Revolving Exposures and unused Revolving Commitments at such
time) of the sum of the total Revolving Exposures, Incremental Revolving
Exposures, outstanding B Term Loans, outstanding
<PAGE>

                                                                              37

Incremental Term Loans and unused Commitments at such time.

            "Restricted Payment" means any dividend or other distribution
(whether in cash, securities or other property) with respect to any Equity
Interests of the Company or any Subsidiary, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancelation or
termination of any Equity Interests of the Company or any Subsidiary or any
option, warrant or other right to acquire any such Equity Interests of the
Company or any Subsidiary; provided that any such payments under the Existing
Synthetic Purchase Agreement shall be deemed not to be Restricted Payments.

            "Revolving Availability Period" means the period from and including
the Effective Date to but excluding the earlier of the Revolving Maturity Date
and the date of termination of the Revolving Commitments.

            "Revolving Commitment" means, with respect to each Lender, the
commitment, if any, of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit and Swingline Loans hereunder, expressed as
an amount representing the maximum aggregate amount of such Lender's Revolving
Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 9.04. The initial amount
of each Lender's Revolving Commitment is set forth on Schedule 2.01, or in the
Assignment and Acceptance pursuant to which such Lender shall have assumed its
Revolving Commitment, as applicable. The initial aggregate amount of the
Lenders' Revolving Commitments is $210,000,000.

            "Revolving Exposure" means, with respect to any Lender at any time,
the sum of the outstanding principal amount of such Lender's Revolving Loans and
its LC Exposure and Swingline Exposure at such time.

            "Revolving Lender" means a Lender with a Revolving Commitment or, if
the Revolving Commitments have terminated or expired, a Lender with Revolving
Exposure.

            "Revolving Loan" means a Loan made pursuant to clause (b) of Section
2.01.
<PAGE>

                                       38

            "Revolving Maturity Date" means (a) May 17, 2006, or (b) if the 2005
Senior Notes Refinancing has not occurred prior to October 15, 2004, then
October 15, 2004. For purposes of Section 2.05(c) or any other provision of this
Agreement that requires a determination of the Revolving Maturity Date, the
Revolving Maturity Date shall be deemed to be October 15, 2004, unless and until
the 2005 Senior Notes Refinancing occurs.

            "Salt Disposition" means the sale of stock or assets of IMC
Inorganic Chemicals Inc. and its Subsidiaries that comprise all or substantially
all of the Salt and Ogden discontinued operations as reflected in the Company's
consolidated financial statements for the year ended December 31, 2000.

            "Salt Disposition Escrow" means an escrow account established by the
Collateral Agent under the Security Agreement for the purpose of escrowing up to
$300,000,000 of Net Proceeds from the Salt Disposition in accordance with
Section 2.11(f) to be applied to redeem or repay the 7.4% Notes (to the extent
outstanding) and (to the extent of any Net Proceeds deposited in such escrow
account in excess of the outstanding principal amount of the 7.4% Notes on the
date of deposit) to repay the Company's 6.50% Notes due 2003, 6.55% Notes due
2005 or 7.625% Notes due 2005 (or any combination thereof) then outstanding;
provided that the amount of the deposit, if any, remaining in such escrow
account after the redemption or repurchase of the outstanding notes as described
in this definition shall be distributed in accordance with clauses (iv) and (v)
of Section 2.11(f).

            "S&P" means Standard & Poor's.

            "Searles Facility" means the stock or assets comprising all or part
of the domestic Chemicals discontinued operations as reflected in the Company's
consolidated financial statements for the year ended December 31, 2000, but
excluding Chemicals' bicarbonate business and the Subsidiaries that conduct such
business.

            "Secured Leverage Ratio" means, as of the last day of any fiscal
quarter, the ratio of (a) the sum of the outstanding principal amount of the
Loans as of such date and the Polk County Sharing Amount as of such date, to (b)
Consolidated EBITDA for the period of four consecutive fiscal quarters of the
Company ended on such date.
<PAGE>

                                                                              39

            "Security Agreement" means the Security Agreement, substantially in
the form of Exhibit H, among the Loan Parties and the Collateral Agent.

            "Security Documents" means the Collateral Sharing Agreement, the
Security Agreement, the Pledge Agreement, the Mortgages and each other security
agreement or other instrument or document executed and delivered pursuant to
Section 5.12 or 5.13 to secure any of the Obligations.

            "7.4% Notes" means the Company's 7.4% Notes due 2002.

            "6.625% Notes" means the Company's 6.625% Senior Notes due October
15, 2001.

            "6.625% Notes Tender Offer" means the tender offer by the Company
for the 6.625% Notes.

            "Statutory Reserve Rate" means a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject (a) with
respect to the Base CD Rate, for new negotiable nonpersonal time deposits in
dollars of over $100,000 with maturities approximately equal to three months and
(b) with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently
referred to as "Eurocurrency Liabilities" in Regulation D of the Board). Such
reserve percentages shall include those imposed pursuant to such Regulation D.
Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under such Regulation D or any comparable regulation. The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in
any reserve percentage.

            "subsidiary" means, with respect to any Person (the "parent") at any
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well
<PAGE>

                                                                              40

as any other corporation, limited liability company, partnership, association or
other entity (a) of which securities or other ownership interests representing
more than 50% of the equity or more than 50% of the ordinary voting power or, in
the case of a partnership, more than 50% of the general partnership interests
are, as of such date, owned, controlled or held, or (b) that is, as of such
date, otherwise Controlled, by the parent or one or more subsidiaries of the
parent or by the parent and one or more subsidiaries of the parent.

            "Subsidiary" means any subsidiary of the Company.

            "Subsidiary Borrower Election" means an agreement executed by the
Company and a Subsidiary, and delivered to and acknowledged by the
Administrative Agent, pursuant to which the Company designates such Subsidiary
to be, and such Subsidiary agrees to be, a Borrowing Subsidiary hereunder, in
accordance with Section 2.21. Each Subsidiary Borrower Election shall be in a
form reasonably satisfactory to the Administrative Agent.

            "Subsidiary Borrower Termination" means a notice executed by the
Company and delivered to the Administrative Agent terminating a Subsidiary's
status as a Borrowing Subsidiary hereunder in accordance with Section 2.21.

            "Subsidiary Loan Party" means any Borrowing Subsidiary, any Foreign
Loan Party and any other Domestic Subsidiary that is not an Excluded Subsidiary.

            "Swingline Exposure" means, at any time, the aggregate principal
amount of all Swingline Loans outstanding at such time. The Swingline Exposure
of any Lender at any time shall be its Applicable Percentage of the total
Swingline Exposure at such time.

            "Swingline Lender" means The Chase Manhattan Bank, in its capacity
as lender of Swingline Loans hereunder.

            "Swingline Loan" means a Loan made pursuant to Section 2.04.

            "Syndication Agent" means Goldman Sachs Credit Partners L.P., in its
capacity as syndication agent hereunder.
<PAGE>

                                                                              41

            "Synthetic Purchase Agreement" means any agreement pursuant to which
the Company or a Subsidiary is or may become obligated to make (a) any payment
in connection with the purchase by any third party from a Person other than the
Company or a Subsidiary of any Equity Interest in or Indebtedness of the Company
or any Subsidiary or (b) any payment (other than on account of a permitted
purchase by it of any Equity Interest in or Indebtedness of the Company or any
Subsidiary) the amount of which is determined by reference to the price or value
at any time of any Equity Interest in or Indebtedness of the Company or any
Subsidiary; provided that no phantom stock or similar plan providing for
payments only to current or former directors, officers or employees of the
Company or the Subsidiaries (or to their heirs or estates) shall be deemed to be
a Synthetic Purchase Agreement.

            "Taxes" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

            "Tender Escrow" means an escrow account established by the
Collateral Agent under the Security Agreement for the purpose of escrowing funds
to finance the 6.625% Notes Tender Offer or to repay the 6.625% Notes at
maturity.

            "Term Loan B Commitment" means, with respect to each Lender, the
commitment, if any, of such Lender to make a B Term Loan hereunder on the
Effective Date, expressed as an amount representing the maximum principal amount
of the B Term Loan to be made by such Lender hereunder, as such commitment may
be reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section 9.04. The initial amount of each Lender's Term Loan B
Commitment is set forth on Schedule 2.01, or in the Assignment and Acceptance
pursuant to which such Lender shall have assumed its Term Loan B Commitment, as
applicable. The initial aggregate amount of the Lenders' Term Loan B Commitments
is $290,000,000.

            "Term Loan Lender" means a Lender with a Term Loan B Commitment or
an outstanding B Term Loan.

            "Term Loan Maturity Date" means (a) November 17, 2006, or (b) if the
2005 Senior Notes Refinancing has not occurred prior to October 15, 2004, then
October 15, 2004.
<PAGE>

                                                                              42

            "Three-Month Secondary CD Rate" means, for any day, the secondary
market rate for three-month certificates of deposit reported as being in effect
on such day (or, if such day is not a Business Day, the next preceding Business
Day) by the Board through the public information telephone line of the Federal
Reserve Bank of New York (which rate will, under the current practices of the
Board, be published in Federal Reserve Statistical Release H.15(519) during the
week following such day) or, if such rate is not so reported on such day or such
next preceding Business Day, the average of the secondary market quotations for
three-month certificates of deposit of major money center banks in New York City
received at approximately 10:00 a.m., New York City time, on such day (or, if
such day is not a Business Day, on the next preceding Business Day) by the
Administrative Agent from three negotiable certificate of deposit dealers of
recognized standing selected by it.

            "Total Indebtedness" means, as of any date, the excess of (a) the
aggregate principal amount of Indebtedness of the Company and the Subsidiaries
outstanding as of such date, in the amount that would be reflected on a balance
sheet prepared as of such date on a consolidated basis in accordance with GAAP,
minus (b) the sum of (i) the amount of funds on deposit in the Polk Escrow, the
Tender Escrow and the Salt Disposition Escrow as of such date plus (ii) the
amount of other cash and cash equivalents (not exceeding $60,000,000) of the
Company and its Subsidiaries that is not subject to any Lien (other than Liens
securing Indebtedness included in clause (a) above) and that would be reflected
on a balance sheet prepared as of such date on a consolidated basis in
accordance with GAAP; provided that outstanding Polk County IRBs owned by any
Loan Party shall be excluded in determining "Total Indebtedness" even if such
Polk County IRBs would be reflected as Indebtedness on a balance sheet prepared
on a consolidated basis in accordance with GAAP.

            "Transactions" means (a) the execution, delivery and performance by
each Loan Party of the Loan Documents to which it is to be a party, the
borrowing of Loans, the use of the proceeds thereof and the issuance of Letters
of Credit hereunder and (b) the execution, delivery and performance by the
Company of the New Senior Notes Indentures, the issuance of the New Senior Notes
and the use of the proceeds thereof.

            "2005 Senior Notes" means the Company's 7.625% Senior Notes due 2005
and 6.55% Senior Notes due 2005.
<PAGE>

                                                                              43

            "2005 Senior Notes Refinancing" means the refinancing and repayment
in full of all the 2005 Senior Notes by the Company with the proceeds from the
issuance by the Company of Permitted Debt Securities.

            "Type", when used in reference to any Loan or Borrowing, refers to
whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate
Base Rate.

            "Withdrawal Liability" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

            SECTION 1.02. Classification of Loans and Borrowings. For purposes
of this Agreement, Loans may be classified and referred to by Class (e.g., a
"Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class and Type
(e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified and
referred to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a
"Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar Revolving
Borrowing").

            SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding mascu line,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
"asset" and "property" shall
<PAGE>

                                                                              44

be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

            SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Company notifies the Administrative Agent that the Company requests
an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the Company
that the Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.

                                   ARTICLE II

                                   The Credits

            SECTION 2.01. Commitments. Subject to the terms and conditions set
forth herein, each Lender agrees (a) to make a B Term Loan to the Company on the
Effective Date in a principal amount not exceeding its Term Loan B Commitment
and (b) to make Revolving Loans to any Borrower from time to time during the
Revolving Availability Period in an aggregate principal amount that will not
result in such Lender's Revolving Exposure exceeding such Lender's Revolving
Commitment. Within the foregoing limits and subject to the terms and conditions
set forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans.
Amounts repaid in respect of B Term Loans may not be reborrowed.

            SECTION 2.02. Loans and Borrowings. (a) Each Loan (other than a
Swingline Loan) shall be made as part of a Borrowing consisting of Loans of the
same Class and Type made by the Lenders ratably in accordance with their
respective Commitments of the applicable Class. The failure of any Lender to
make any Loan required to be made by it shall not relieve any other Lender of
its

<PAGE>

                                                                              45

obligations hereunder; provided that the Commitments of the Lenders are several
and no Lender shall be responsible for any other Lender's failure to make Loans
as required.

            (b) Subject to Section 2.14, each Revolving Borrowing and B Term
Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the
applicable Borrower may request in accordance herewith; provided that all
Borrowings made on the Effective Date must be made as ABR Borrowings. Each
Swingline Loan shall be an ABR Loan. Each Lender at its option may make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option shall not
affect the obligation of the relevant Borrower to repay such Loan in accordance
with the terms of this Agreement.

            (c) At the commencement of each Interest Period for any Eurodollar
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of $1,000,000 and not less than $5,000,000. At the time that each ABR
Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that
is an integral multiple of $1,000,000 and not less than $5,000,000; provided
that an ABR Revolving Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the total Revolving Commitments or that is required
to finance the reimbursement of an LC Disbursement as contemplated by Section
2.05(e). Each Swingline Loan shall be in an amount that is an integral multiple
of $100,000 and not less than $500,000. Borrowings of more than one Type and
Class may be outstanding at the same time; provided that there shall not at any
time be more than a total of 15 Eurodollar Borrowings outstanding.

            (d) Notwithstanding any other provision of this Agreement, no
Borrower shall be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Revolving Maturity Date or Term Loan Maturity Date, as applicable.

            SECTION 2.03. Requests for Borrowings. To request a Revolving
Borrowing or B Term Borrowing, a Borrower shall notify the Administrative Agent
of such request by telephone (a) in the case of a Eurodollar Borrowing, not
later than 12:00 noon, New York City time, three Business Days before the date
of the proposed
<PAGE>

                                                                              46

Borrowing or (b) in the case of an ABR Borrowing, not later than 10:00 a.m., New
York City time, on the date of the proposed Borrowing; provided that any such
notice of an ABR Revolving Borrowing to finance the reimbursement of an LC
Disbursement as contemplated by Section 2.05(e) may be given not later than
11:00 a.m., New York City time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the relevant Borrower. Each such telephonic and written Borrowing Request shall
specify the following information in compliance with Section 2.02:

            (i) whether the requested Borrowing is to be a Revolving Borrowing
      or a B Term Borrowing;

            (ii) the aggregate amount of such Borrowing;

            (iii) the date of such Borrowing, which shall be a Business Day;

            (iv) whether such Borrowing is to be an ABR Borrowing or a
      Eurodollar Borrowing;

            (v) in the case of a Eurodollar Borrowing, the initial Interest
      Period to be applicable thereto, which shall be a period contemplated by
      the definition of the term "Interest Period"; and

            (vi) the location and number of the relevant Borrower's account to
      which funds are to be disbursed, which shall comply with the requirements
      of Section 2.06.

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurodollar Revolving Borrowing, then the relevant
Borrower shall be deemed to have selected an Interest Period of one month's
duration. Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender's Loan to be made as part of the
requested Borrowing.

            SECTION 2.04. Swingline Loans. (a) Subject to the terms and
conditions set forth herein, the Swingline
<PAGE>

                                                                              47

Lender agrees to make Swingline Loans to any Borrower from time to time during
the Revolving Availability Period, in an aggregate principal amount at any time
outstanding that will not result in (i) the aggregate principal amount of
outstanding Swingline Loans exceeding $10,000,000 or (ii) the sum of the total
Revolving Exposures exceeding the total Revolving Commitments; provided that the
Swingline Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan. Within the foregoing limits and subject to the terms
and conditions set forth herein, the Borrowers may borrow, prepay and reborrow
Swingline Loans.

            (b) To request a Swingline Loan, a Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 12:00 noon, New York City time, on the day of a proposed Swingline
Loan. Each such notice shall be irrevocable and shall specify the requested date
(which shall be a Business Day) and amount of the requested Swingline Loan. The
Administrative Agent will promptly advise the Swingline Lender of any such
notice received from a Borrower. The Swingline Lender shall make each Swingline
Loan available to the relevant Borrower by means of a credit to the general
deposit account of such Borrower with the Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of an LC Disbursement as
provided in Section 2.06(e), by remittance to the relevant Issuing Bank) by 3:00
p.m., New York City time, on the requested date of such Swingline Loan.

            (c) The Swingline Lender may by written notice given to the
Administrative Agent not later than 12:00 noon, New York City time, on any
Business Day require the Revolving Lenders to acquire participations on such
Business Day in all or a portion of the Swingline Loans outstanding. Such notice
shall specify the aggregate amount of Swingline Loans in which Revolving Lenders
will participate. Promptly upon receipt of such notice, the Administrative Agent
will give notice thereof to each Revolving Lender, specifying in such notice
such Lender's Applicable Percentage of such Swingline Loan or Loans. Each
Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of
notice as provided above, to pay to the Administrative Agent, for the account of
the Swingline Lender, such Lender's Applicable Percentage of such Swingline Loan
or Loans. Each Revolving Lender acknowledges and agrees that its obligation to
acquire participations in Swingline Loans
<PAGE>

                                                                              48

pursuant to this paragraph is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including the occurrence and
continuance of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement, withholding
or reduction whatsoever. Each Revolving Lender shall comply with its obligation
under this paragraph by wire transfer of immediately available funds, in the
same manner as provided in Section 2.06 with respect to Loans made by such
Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment
obligations of the Revolving Lenders), and the Administrative Agent shall
promptly pay to the Swingline Lender the amounts so received by it from the
Revolving Lenders. The Administrative Agent shall notify the relevant Borrower
or Borrowers of any participations in any Swingline Loans acquired pursuant to
this paragraph, and thereafter payments in respect of such Swingline Loans shall
be made to the Administrative Agent and not to the Swingline Lender. Any amounts
received by the Swingline Lender from a Borrower (or other party on behalf of a
Borrower) in respect of a Swingline Loan of such Borrower after receipt by the
Swingline Lender of the proceeds of a sale of participations therein shall be
promptly remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Revolving Lenders that shall have made their payments pursuant to this
paragraph and to the Swingline Lender, as their interests may appear. The
purchase of participations in a Swingline Loan pursuant to this paragraph shall
not relieve a Borrower of any default in the payment thereof.

            SECTION 2.05. Letters of Credit. (a) General. Subject to the terms
and conditions set forth herein, any Borrower may request the issuance of
Letters of Credit for its own account, in a form reasonably acceptable to the
Administrative Agent and the relevant Issuing Bank, at any time and from time to
time during the Revolving Availability Period and prior to the date that is five
Business Days prior to the Revolving Maturity Date. In the event of any
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any form of letter of credit application or other agreement
submitted by a Borrower to, or entered into by a Borrower with, an Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement
shall control.
<PAGE>

                                                                              49

            (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), a Borrower shall hand
deliver or telecopy (or transmit by electronic communication, if arrangements
for doing so have been approved by the relevant Issuing Bank) to the relevant
Issuing Bank and the Administrative Agent (reasonably in advance of the
requested date of issuance, amendment, renewal or extension) a notice requesting
the issuance of a Letter of Credit, or identifying the Letter of Credit to be
amended, renewed or extended, and specifying the date of issuance, amendment,
renewal or extension (which shall be a Business Day), the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) of this
Section), the amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be necessary to prepare,
amend, renew or extend such Letter of Credit. If requested by such Issuing Bank,
such Borrower also shall submit a letter of credit application on such Issuing
Bank's standard form in connection with any request for a Letter of Credit. A
Letter of Credit shall be issued, amended, renewed or extended only if (and upon
issuance, amendment, renewal or extension of each Letter of Credit such Borrower
shall be deemed to represent and warrant that), after giving effect to such
issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed
$100,000,000 and (ii) the total Revolving Exposures shall not exceed the total
Revolving Commitments.

            (c) Expiration Date. Each Letter of Credit shall expire at or prior
to the close of business on the earlier of (i) the date one year after the date
of the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension) and (ii) the date
that is five Business Days prior to the Revolving Maturity Date.

            (d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the relevant Issuing Bank or the Lenders, the
Issuing Bank in respect of such Letter of Credit hereby grants to each Revolving
Lender, and each Revolving Lender hereby acquires from such Issuing Bank, a
participation in such Letter of Credit equal to such Lender's Applicable
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each

<PAGE>

                                                                              50

Revolving Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent, for the account of such Issuing Bank, such Lender's
Applicable Percentage of each LC Disbursement made by such Issuing Bank and not
reimbursed by the relevant Borrower on the date due as provided in paragraph (e)
of this Section, or of any reimbursement payment required to be refunded to such
Borrower for any reason. Each Lender acknowledges and agrees that its obligation
to acquire participations pursuant to this paragraph in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.

            (e) Reimbursement. If an Issuing Bank shall make any LC Disbursement
in respect of a Letter of Credit, the relevant Borrower shall reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 12:00 noon, New York City time, on the date that
such LC Disbursement is made, if such Borrower shall have received notice of
such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or,
if such notice has not been received by such Borrower prior to such time on such
date, then not later than 12:00 noon, New York City time, on (i) the Business
Day that such Borrower receives such notice, if such notice is received prior to
10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day
immediately following the day that such Borrower receives such notice, if such
notice is not received prior to such time on the day of receipt; provided that,
if such LC Disbursement is not less than $500,000, such Borrower may, subject to
the conditions to borrowing set forth herein, request in accordance with Section
2.03 or 2.04 that such payment be financed with an ABR Revolving Borrowing or
Swingline Loan in an equivalent amount and, to the extent so financed, such
Borrower's obligation to make such payment shall be discharged and replaced by
the resulting ABR Revolving Borrowing or Swingline Loan. If such Borrower fails
to make such payment when due, the Administrative Agent shall notify each
Revolving Lender of the applicable LC Disbursement, the payment then due from
such Borrower in respect thereof and such Lender's Applicable Percentage
thereof. Promptly following receipt of such notice, each Revolving Lender shall
pay to the Administrative Agent its Applicable Percentage of

<PAGE>

                                                                              51

the payment then due from such Borrower, in the same manner as provided in
Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall
apply, mutatis mutandis, to the payment obligations of the Revolving Lenders),
and the Administrative Agent shall promptly pay to the relevant Issuing Bank the
amounts so received by it from the Revolving Lenders. Promptly following receipt
by the Administrative Agent of any payment from such Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to such
Issuing Bank or, to the extent that Revolving Lenders have made payments
pursuant to this paragraph to reimburse such Issuing Bank, then to such Lenders
and such Issuing Bank as their interests may appear. Any payment made by a
Revolving Lender pursuant to this paragraph to reimburse such Issuing Bank for
any LC Disbursement (other than the funding of ABR Revolving Loans or a
Swingline Loan as contemplated above) shall not constitute a Loan and shall not
relieve such Borrower of its obligation to reimburse such LC Disbursement.

            (f) Obligations Absolute. A Borrower's obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by an Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, such Borrower's obligations hereunder.
Neither the Administrative Agent, the Lenders nor any Issuing Bank, nor any of
their Related Parties, shall have any liability or responsibility by reason of
or in connection with the issuance or transfer of any Letter of Credit or any
payment or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or

<PAGE>

                                                                              52

relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the relevant Issuing Bank;
provided that the foregoing shall not be construed to excuse the relevant
Issuing Bank from liability to the relevant Borrower to the extent of any direct
damages (as opposed to consequential damages, claims in respect of which are
hereby waived by such Borrower to the extent permitted by applicable law)
suffered by such Borrower that are caused by such Issuing Bank's failure to
exercise care when determining whether drafts and other documents presented
under a Letter of Credit comply with the terms thereof. The parties hereto
expressly agree that, in the absence of gross negligence or wilful misconduct on
the part of the relevant Issuing Bank, such Issuing Bank shall be deemed to have
exercised care in each such determination. In furtherance of the foregoing and
without limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance
with the terms of a Letter of Credit, the relevant Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

            (g) Disbursement Procedures. The relevant Issuing Bank shall,
promptly following its receipt thereof, examine all documents purporting to
represent a demand for payment under a Letter of Credit. Such Issuing Bank shall
promptly notify the Administrative Agent and the relevant Borrower by telephone
(confirmed by telecopy) of such demand for payment and whether such Issuing Bank
has made or will make an LC Disbursement thereunder; provided that any failure
to give or delay in giving such notice shall not relieve such Borrower of its
obligation to reimburse such Issuing Bank and the Revolving Lenders with respect
to any such LC Disbursement.

            (h) Interim Interest. If an Issuing Bank shall make any LC
Disbursement, then, unless the relevant Borrower shall reimburse such LC
Disbursement in full on the date such LC Disbursement is made, the unpaid amount
thereof shall bear interest, for each day from and including the date such LC
Disbursement is made to but excluding the date that such Borrower reimburses
such LC

<PAGE>

                                                                              53

Disbursement, at the rate per annum then applicable to ABR Revolving Loans;
provided that, if the relevant Borrower fails to reimburse such LC Disbursement
when due pursuant to paragraph (e) of this Section, then Section 2.13(c) shall
apply. Interest accrued pursuant to this paragraph shall be for the account of
the relevant Issuing Bank, except that interest accrued on and after the date of
payment by any Revolving Lender pursuant to paragraph (e) of this Section to
reimburse such Issuing Bank shall be for the account of such Lender to the
extent of such payment.

            (i) Replacement of an Issuing Bank. An Issuing Bank may be replaced
at any time by written agreement among the Company, the Administrative Agent,
the replaced Issuing Bank and the successor Issuing Bank (if any, it being
understood that a successor Issuing Bank shall not be required if there is more
than one Issuing Bank at the time). The Administrative Agent shall notify the
Lenders of any such replacement of an Issuing Bank. At the time any such
replacement shall become effective, the Company shall pay all unpaid fees
accrued for the account of the replaced Issuing Bank pursuant to Section
2.12(b). From and after the effective date of any such replacement, (i) if there
is a successor Issuing Bank, the successor Issuing Bank shall have all the
rights and obligations of an Issuing Bank under this Agreement with respect to
Letters of Credit to be issued thereafter and (ii) references herein to the term
"Issuing Bank" shall be deemed to refer to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks, as the
context shall require. After the replacement of an Issuing Bank hereunder, the
replaced Issuing Bank shall remain a party hereto and shall continue to have all
the rights and obligations of an Issuing Bank under this Agreement with respect
to Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit.

            (j) Cash Collateralization. If any Event of Default shall occur and
be continuing, on the Business Day that the Company receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Revolving Lenders with LC Exposure representing greater
than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Borrowers shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders, an amount in cash equal to

<PAGE>

                                                                              54

the LC Exposure as of such date plus any accrued and unpaid interest thereon;
provided that the obligation to deposit such cash collateral shall become
effective immediately, and such deposit shall become immediately due and
payable, without demand or other notice of any kind, upon the occurrence of any
Event of Default with respect to any Borrower described in clause (h) or (i) of
Article VII. Each such deposit pursuant to this paragraph or Section 2.11(b)
shall be held by the Administrative Agent as collateral for the payment and
performance of the obligations of the Borrowers under this Agreement. The
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest earned
on the investment of such deposits, which investments shall be made at the
option and sole discretion of the Administrative Agent and at the Borrowers'
risk and expense, such deposits shall not bear interest. Interest or profits, if
any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the Issuing
Banks for LC Disbursements for which they have not been reimbursed and, to the
extent not so applied, shall be held for the satisfaction of the reimbursement
obligations of the Borrowers for the LC Exposure at such time or, if the
maturity of the Loans has been accelerated (but subject to the consent of
Revolving Lenders with LC Exposure representing greater than 50% of the total LC
Exposure), be applied to satisfy other obligations of the Borrowers under this
Agreement. If the Borrowers are required to provide an amount of cash collateral
hereunder as a result of the occurrence of an Event of Default, such amount (to
the extent not applied as aforesaid) shall be returned to the relevant Borrowers
within three Business Days after all Events of Default have been cured or
waived. If the Borrowers are required to provide an amount of cash collateral
hereunder pursuant to Section 2.11(b), such amount (to the extent not applied as
aforesaid) shall be returned to the relevant Borrowers as and to the extent
that, after giving effect to such return, the Borrowers would remain in
compliance with Section 2.11(b) and no Default shall have occurred and be
continuing.

            SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each
Loan to be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by 12:00 noon, New York City time, to the account of
the Administrative Agent most recently designated by it for such purpose by
notice to the Lenders; provided that Swingline Loans shall be made as

<PAGE>

                                                                              55

provided in Section 2.04. The Administrative Agent will make such Loans
available to the applicable Borrower by promptly crediting the amounts so
received, in like funds, to an account of such Borrower maintained with the
Administrative Agent in New York City and designated by such Borrower in the
applicable Borrowing Request; provided that ABR Revolving Loans made to finance
the reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be
remitted by the Administrative Agent to the applicable Issuing Bank.

            (b) Unless the Administrative Agent shall have received notice from
a Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the applicable
Borrower a corresponding amount. In such event, if a Lender has not in fact made
its share of the applicable Borrowing available to the Administrative Agent,
then the applicable Lender and the applicable Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to such Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation or (ii) in
the case of such Borrower, the interest rate applicable to ABR Loans. If such
Lender pays such amount to the Administrative Agent, then such amount shall
constitute such Lender's Loan included in such Borrowing.

            SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing and B
Term Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an
initial Interest Period as specified in such Borrowing Request. Thereafter, the
applicable Borrower, in the case of a Revolving Borrowing, or the Company, in
the case of a B Term Borrowing, may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurodollar
Borrowing, may elect Interest Periods therefor, all as provided in this Section.
Such Borrower may elect different options with respect to different portions of
the affected Borrowing, in which case each such portion shall be allocated

<PAGE>

                                                                              56

ratably among the Lenders holding the Loans comprising such Borrowing, and the
Loans comprising each such portion shall be considered a separate Borrowing.
This Section shall not apply to Swingline Borrowings, which may not be converted
or continued.

            (b) To make an election pursuant to this Section, the relevant
Borrower shall notify the Administrative Agent of such election by telephone by
the time that a Borrowing Request would be required under Section 2.03 if such
Borrower were requesting a Revolving Borrowing of the Type resulting from such
election to be made on the effective date of such election. Each such telephonic
Interest Election Request shall be irrevocable and shall be confirmed promptly
by hand delivery or telecopy to the Administrative Agent of a written Interest
Election Request in a form approved by the Administrative Agent and signed by
such Borrower.

            (c) Each telephonic and written Interest Election Request shall
specify the following information in compliance with Section 2.02:

            (i) the Borrowing to which such Interest Election Request applies
      and, if different options are being elected with respect to different
      portions thereof, the portions thereof to be allocated to each resulting
      Borrowing (in which case the information to be specified pursuant to
      clauses (iii) and (iv) below shall be specified for each resulting
      Borrowing);

            (ii) the effective date of the election made pursuant to such
      Interest Election Request, which shall be a Business Day;

            (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
      Eurodollar Borrowing; and

            (iv) if the resulting Borrowing is a Eurodollar Borrowing, the
      Interest Period to be applicable thereto after giving effect to such
      election, which shall be a period contemplated by the definition of the
      term "Interest Period".

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the relevant Borrower shall be deemed to
have selected an Interest Period of one month's duration.

<PAGE>

                                                                              57

            (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's portion of each resulting Borrowing.

            (e) If the relevant Borrower fails to deliver a timely Interest
Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if
an Event of Default has occurred and is continuing and the Administrative Agent,
at the request of the Required Lenders, so notifies the Company, then, so long
as an Event of Default is continuing (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each
Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto.

            SECTION 2.08. Termination and Reduction of Commitments. (a) Unless
previously terminated, (i) the Term Loan B Commitments shall terminate at 5:00
p.m., New York City time, on the Effective Date and (ii) the Revolving
Commitments shall terminate on the Revolving Maturity Date.

            (b) The Company may at any time terminate, or from time to time
reduce, the Revolving Commitments; provided that (i) each reduction of the
Revolving Commitments shall be in an amount that is an integral multiple of
$1,000,000 and not less than $5,000,000 and (ii) the Company shall not terminate
or reduce the Revolving Commitments if, after giving effect to any concurrent
prepayment of the Revolving Loans in accordance with Section 2.11, the sum of
the Revolving Exposures would exceed the total Revolving Commitments.

            (c) The Company shall notify the Administrative Agent of any
election to terminate or reduce the Revolving Commitments under paragraph (b) of
this Section at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any such notice, the Administrative Agent
shall advise the Lenders of the contents thereof. Each notice delivered by the
Company pursuant to this Section shall be irrevocable; provided that a notice of
termination of the Revolving Commitments delivered by the

<PAGE>

                                                                              58

Company may state that such notice is conditioned upon the effectiveness of
other credit facilities, in which case such notice may be revoked by the Company
(by notice to the Administrative Agent on or prior to the specified effective
date) if such condition is not satisfied. Any termination or reduction of the
Commitments of any Class shall be permanent. Each reduction of the Revolving
Commitments shall be made ratably among the Revolving Lenders in accordance with
their respective Revolving Commitments.

            SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) Each
Borrower hereby unconditionally promises to pay (i) to the Administrative Agent
for the account of each Lender the then unpaid principal amount of each
Revolving Loan owed by such Borrower to such Lender on the Revolving Maturity
Date, (ii) in the case of the Company, to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each B Term Loan of
such Lender as provided in Section 2.10 and (iii) to the Swingline Lender the
then unpaid principal amount of each Swingline Loan owed by such Borrower on the
earlier of the Revolving Maturity Date and the first date after such Swingline
Loan is made that is the 15th or last day of a calendar month and is at least
two Business Days after such Swingline Loan is made; provided that on each date
that a Revolving Borrowing is made by a Borrower, such Borrower shall repay all
Swingline Loans of such Borrower that were outstanding on the date such
Borrowing was requested.

            (b) Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the indebtedness of each Borrower to such
Lender resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

            (c) The Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the Class and Type
thereof, the Borrower in respect thereof and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from each Borrower to each Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder for the account
of the Lenders and each Lender's share thereof.

            (d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be

<PAGE>

                                                                              59

prima facie evidence of the existence and amounts of the obligations recorded
therein; provided that the failure of any Lender or the Administrative Agent to
maintain such accounts or any error therein shall not in any manner affect the
obligation of each Borrower to repay its Loans in accordance with the terms of
this Agreement.

            (e) Any Lender may request that Loans of any Class made by it to any
Borrower be evidenced by a promissory note. In such event, the applicable
Borrower shall prepare, execute and deliver to such Lender a promissory note
payable to the order of such Lender (or, if requested by such Lender, to such
Lender and its registered assigns) and in a form approved by the Administrative
Agent. Thereafter, the Loans evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section 9.04)
be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).

            SECTION 2.10. Amortization of B Term Loans. (a) Subject to
adjustment pursuant to paragraph (c) of this Section, the Company shall repay B
Term Borrowings (i) on March 31, June 30, September 30 and December 31 of each
year prior to the Term Loan Maturity Date, commencing on September 30, 2001, in
an aggregate principal amount equal to $725,000, and (ii) on the Term Loan
Maturity Date, in an aggregate principal amount equal to $274,775,000.

            (b) To the extent not previously paid, all B Term Loans shall be due
and payable on the Term Loan Maturity Date.

            (c) Any prepayment of a B Term Borrowing shall be applied to reduce
the subsequent scheduled repayments of the B Term Borrowings to be made pursuant
to this Section ratably.

            (d) Prior to any repayment of any B Term Borrowings hereunder, the
Company shall select the B Term Borrowing or B Term Borrowings to be repaid and
shall notify the Administrative Agent by telephone (confirmed by telecopy) of
such selection not later than 11:00 a.m., New York City time, three Business
Days before the scheduled date of such repayment. Each repayment of a Borrowing
shall be applied ratably to the Loans included in the repaid Borrowing.
Repayments of B Term Borrowings

<PAGE>

                                                                              60

shall be accompanied by accrued interest on the amount repaid.

            SECTION 2.11. Prepayment of Loans. (a) Each Borrower shall have the
right at any time and from time to time to prepay any of its Borrowings in whole
or in part, subject to the requirements of this Section.

            (b) In the event and on each occasion that the sum of the Revolving
Exposures exceeds the total Revolving Commitments, the Borrowers shall prepay
Revolving Borrowings or Swingline Borrowings (or, if no such Borrowings are
outstanding, deposit cash collateral in an account with the Administrative Agent
pursuant to Section 2.05(j)) in an aggregate amount equal to such excess.

            (c) In the event and on each occasion that any Net Proceeds are
received by or on behalf of the Company or any Subsidiary in respect of any
Prepayment Event or the Salt Disposition, the Company shall, within three
Business Days after such Net Proceeds are received, prepay Borrowings (or, in
the case of Revolving Borrowings, cause such Borrowings to be prepaid) in an
aggregate amount equal to such Net Proceeds (or, in the case of the Salt
Disposition, as provided in paragraph (f) of this Section) in the manner
specified in paragraphs (d), (e) and (f) of this Section; provided that, in the
case of any event described in clause (a) of the definition of the term
Prepayment Event, if the Company shall deliver to the Administrative Agent a
certificate signed on behalf of the Company by a Financial Officer to the effect
that the Company and its Subsidiaries intend to apply (or enter into contractual
commitments to apply) the Net Proceeds from such event (or a portion thereof
specified in such certificate), within 270 days after receipt of such Net
Proceeds (and, in the case of any such contractual commitments, to apply such
Net Proceeds within 360 days after receipt of such Net Proceeds), to acquire
real property, equipment or other tangible assets to be used in the business of
the Company and its Subsidiaries, and certifying that no Default has occurred
and is continuing, then no prepayment shall be required pursuant to this
paragraph in respect of the Net Proceeds in respect of such event (or the
portion of such Net Proceeds specified in such certificate, if applicable)
except (i) to the extent of any such Net Proceeds therefrom that have not been
so applied (or so committed to be applied) by the end of such 270-day period, at
which time a prepayment shall be required in an amount equal to such Net
Proceeds that

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                                                                              61

have not been so applied (or so committed to be applied) and (ii) in the case of
any such Net Proceeds therefrom that, as of the end of such 270-day period, have
been so committed to be so applied but have not yet been so applied, to the
extent such Net Proceeds have not been so applied within 360 days after receipt
of such Net Proceeds, at which time a prepayment shall be required in an amount
equal to such Net Proceeds that have not been so applied. Notwithstanding the
foregoing, if (A) any event occurs that constitutes a "Prepayment Event" (or
would constitute a "Prepayment Event" except by reason of any of the exclusions
set forth in the definition of the term "Prepayment Event"), (B) the Company or
any Loan Party would be required to prepay, redeem or repurchase (or offer to
prepay, redeem or repurchase) any New Senior Notes or other Material
Indebtedness as a result of such event (a "Prepayment Requirement") and (C) the
Prepayment Requirement would be avoided or reduced if Borrowings were prepaid,
then, as and to the extent necessary to avoid or reduce the Prepayment
Requirement, the Company shall cause Borrowings to be prepaid immediately prior
to the expiry of any period that, if Borrowings are prepaid during such period,
the Prepayment Requirement would be so avoided or reduced.

            (d) Prior to any optional or mandatory prepayment of Borrowings
hereunder, the relevant Borrower shall select the Borrowing or Borrowings to be
prepaid and shall specify such selection in the notice of such prepayment
pursuant to paragraph (e) of this Section; provided that (i) in the event of any
mandatory prepayment in respect of a Prepayment Event made at a time when any B
Term Borrowing is outstanding, such selection shall be made so that such
prepayments are applied to prepay B Term Borrowings before any Revolving
Borrowings are prepaid, (ii) in the event of any mandatory prepayment in respect
of the Salt Disposition, such selection shall be made in compliance with
paragraph (f) of this Section and (iii) any mandatory prepayment of Revolving
Borrowings required by this Section shall not be construed to require a
reduction of Revolving Commitments.

          (e) The applicable Borrower shall notify the Administrative Agent
(and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Borrowing, not later than 12:00 noon, New York City
time, three Business Days before the date of prepayment, (ii) in the case of
prepayment of an ABR Borrowing, not later than 10:00

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                                                                              62

a.m., New York City time, on the date of prepayment or (iii) in the case of
prepayment of a Swingline Loan, not later than 12:00 noon, New York City time,
on the date of prepayment. Each such notice shall be irrevocable and shall
specify the prepayment date, the principal amount of each Borrowing or portion
thereof to be prepaid and, in the case of a mandatory prepayment, a reasonably
detailed calculation of the amount of such prepayment; provided that, if a
notice of optional prepayment is given in connection with a conditional notice
of termination of the Revolving Commitments as contemplated by Section 2.08,
then such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.08. Promptly following receipt of any such
notice (other than a notice relating solely to Swingline Loans), the
Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of an advance of a Borrowing of the same Type as provided
in Section 2.02, except as necessary to apply fully the required amount of a
mandatory prepayment. Each prepayment of a Borrowing shall be applied ratably to
the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by
accrued interest to the extent required by Section 2.13.

            (f) If the Salt Disposition occurs, the Net Proceeds therefrom will
be applied as follows:

            (i) first, to prepay Revolving Borrowings then outstanding;

            (ii) second, to prepay B Term Borrowings then outstanding to the
      extent of the excess, if any, of (A) the sum of the aggregate principal
      amount of B Term Borrowings then outstanding plus the aggregate principal
      amount of Polk County IRBs then outstanding plus the total Revolving
      Commitments then in effect minus (B) the Collateral Coverage Amount at the
      time (calculated after excluding from the Collateral Coverage Amount any
      assets included therein that have been sold or otherwise disposed of);

            (iii) third, remaining Net Proceeds up to the amount of $300,000,000
      shall be deposited in the Salt Disposition Escrow;

            (iv) fourth, to prepay outstanding B Term Borrowings, subject to
      paragraph (g) below; and

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                                                                              63

            (v) fifth, any remaining Net Proceeds shall be available to the
      Company.

            (g) Any Term Loan Lender may elect to decline all or any portion of
prepayment of such Lender's B Term Loans required to be made pursuant to clause
(iv) of paragraph (f) above. Such election shall be made by notice to the
Administrative Agent by telephone (confirmed by telecopy) at least one Business
Day prior to the prepayment date. The aggregate amount of the prepayment that
would have been applied to prepay any such B Term Loan that is so declined shall
be available to the Company.

            (h) In the event of any optional or mandatory prepayment of any B
Term Borrowing hereunder within two years after the Effective Date, the Company
shall on the date of such prepayment pay to the Administrative Agent for the
account of each B Term Loan Lender a prepayment premium equal to (i) if such
prepayment occurs within one year after the Effective Date, 2.0% of the
principal amount of the B Term Loans of such Term Loan Lender so prepaid or (ii)
if such prepayment occurs thereafter but within two years after the Effective
Date, 1.0% of the principal amount of the B Term Loans of such Term Loan Lender
so prepaid; provided that no such prepayment premium shall be required in
respect of any prepayment of B Term Borrowings pursuant to paragraph (f) of this
Section.

            SECTION 2.12. Fees. (a) The Company agrees to pay to the
Administrative Agent for the account of each Revolving Lender a commitment fee,
which shall accrue at the Applicable Rate on the average daily unused amount of
the Revolving Commitment of such Lender during the period from and including the
Effective Date to but excluding the date on which such Revolving Commitment
terminates; provided that a Defaulting Lender will not be entitled to receive
such fee for any period that it is a Defaulting Lender. Accrued commitment fees
shall be payable in arrears on the last day of March, June, September and
December of each year and on the date on which the Revolving Commitments
terminate, commencing on the first such date to occur after the date hereof. All
commitment fees shall be computed on the basis of a year of 360 days and shall
be payable for the actual number of days elapsed (including the first day but
excluding the last day). For purposes of computing commitment fees, a Revolving
Commitment of a Lender shall be deemed to be used to the extent of the
outstanding Revolving Loans and

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                                                                              64

LC Exposure of such Lender (and the Swingline Exposure of such Lender shall be
disregarded for such purpose).

            (b) The Company agrees to pay (i) to the Administrative Agent for
the account of each Revolving Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Rate as interest on Eurodollar Revolving Loans on the average daily amount of
such Lender's LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender's
Revolving Commitment terminates and the date on which such Lender ceases to have
any LC Exposure; provided that a Defaulting Lender shall not be entitled to
receive such fee for any period that it is a Defaulting Lender, and (ii) to each
Issuing Bank a fronting fee, which shall accrue at the rate or rates per annum
separately agreed upon between the Company and such Issuing Bank on the average
daily amount of the LC Exposure attributable to Letters of Credit issued by such
Issuing Bank (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Effective Date to but
excluding the later of the date of termination of the Revolving Commitments and
the date on which there ceases to be any LC Exposure, as well as such Issuing
Bank's standard fees with respect to the issuance, amendment, renewal or
extension of any Letter of Credit issued by it or processing of drawings
thereunder. Participation fees and fronting fees accrued through and including
the last day of March, June, September and December of each year shall be
payable in arrears on the third Business Day following such last day, commencing
on the first such date to occur after the Effective Date; provided that all such
fees shall be payable on the date on which the Revolving Commitments terminate
and any such fees accruing after the date on which the Revolving Commitments
terminate shall be payable on demand. Any other fees payable to an Issuing Bank
pursuant to this paragraph shall be payable within 10 days after demand. All
participation fees and fronting fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

            (c) The Company agrees to pay to the Administrative Agent, for its
own account, fees payable in the amounts and at the times separately agreed upon
between the Company and the Administrative Agent.

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                                                                              65

            (d) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to the applicable
Issuing Bank, in the case of fees payable to it) for distribution, in the case
of commitment fees and participation fees, to the Lenders entitled thereto. Fees
paid shall not be refundable under any circumstances.

            SECTION 2.13. Interest. (a) The Loans comprising each ABR Borrowing
(including each Swingline Loan) shall bear interest at the Alternate Base Rate
plus the Applicable Rate.

            (b) The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate.

            (c) Notwithstanding the foregoing, if any principal of or interest
on any Loan or any fee or other amount payable by any Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Revolving Loans as provided in paragraph (a) of this Section.

            (d) Accrued interest on each Loan shall be payable in arrears on
each Interest Payment Date for such Loan and, in the case of Revolving Loans,
upon termination of the Revolving Commitments; provided that (i) interest
accrued pursuant to paragraph (c) of this Section shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of an ABR Revolving Loan prior to the end of the Revolving
Availability Period), accrued interest on the principal amount repaid or prepaid
shall be payable on the date of such repayment or prepayment and (iii) in the
event of any conversion of any Eurodollar Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.

            (e) All interest hereunder shall be computed on the basis of a year
of 360 days, except that interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Prime Rate

<PAGE>
                                       66

shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). The applicable Alternate
Base Rate or Adjusted LIBO Rate shall be determined by the Administrative Agent,
and such determination shall be conclusive absent manifest error.

            SECTION 2.14. Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

            (a) the Administrative Agent determines (which determination shall
      be conclusive absent manifest error) that adequate and reasonable means do
      not exist for ascertaining the Adjusted LIBO Rate for such Interest
      Period; or

            (b) the Administrative Agent is advised by the Required Lenders that
      the Adjusted LIBO Rate for such Interest Period will not adequately and
      fairly reflect the cost to such Lenders of making or maintaining their
      Loans included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Company and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Company and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.

            Each Lender shall give notice to the Administrative Agent by
telephone or telecopy as promptly as practicable after determining that the
circumstances referred to in paragraph (b) above applicable to such Lender no
longer exist, and the Administrative Agent shall give notice to the Company and
the Lenders by telephone or telecopy as promptly as practicable after the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that the circumstances giving rise to any notice given by the
Administrative Agent pursuant to the preceding sentence no longer exist.

<PAGE>

                                                                              67

            SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

            (i) impose, modify or deem applicable any reserve, special deposit
      or similar requirement against assets of, deposits with or for the account
      of, or credit extended by, any Lender (except any such reserve requirement
      reflected in the Adjusted LIBO Rate) or any Issuing Bank; or

            (ii) impose on any Lender or any Issuing Bank or the London
      interbank market any other condition affecting this Agreement or
      Eurodollar Loans made by such Lender or any Letter of Credit or
      participation therein;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or such
Issuing Bank of participating in, issuing or maintaining any Letter of Credit or
to reduce the amount of any sum received or receivable by such Lender or such
Issuing Bank hereunder (whether of principal, interest or otherwise), then the
relevant Borrower will pay to such Lender or such Issuing Bank, as the case may
be, such additional amount or amounts as will compensate such Lender or such
Issuing Bank (without duplication of any amounts paid to such Lender pursuant to
Section 2.17), as the case may be, for such additional costs incurred or
reduction suffered.

            (b) If any Lender or any Issuing Bank determines that any Change in
Law regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender's or such Issuing Bank's capital or on the capital
of such Lender's or such Issuing Bank's holding company, if any, as a
consequence of this Agreement or the Loans made by, or participations in Letters
of Credit held by, such Lender, or the Letters of Credit issued by such Issuing
Bank, to a level below that which such Lender or such Issuing Bank or such
Lender's or such Issuing Bank's holding company could have achieved but for such
Change in Law (taking into consideration such Lender's or such Issuing Bank's
policies and the policies of such Lender's or such Issuing Bank's holding
company with respect to capital adequacy), then from time to time the Company
will pay to such Lender or such Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or such

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                                                                              68

Issuing Bank or such Lender's or such Issuing Bank's holding company for any
such reduction suffered.

            (c) A certificate of a Lender or an Issuing Bank setting forth in
reasonable detail the amount or amounts necessary to compensate such Lender or
such Issuing Bank or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section shall be delivered to the Company and shall
be conclusive absent manifest error. The relevant Borrower shall pay such Lender
or such Issuing Bank, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.

            (d) Failure or delay on the part of any Lender or any Issuing Bank
to demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's or such Issuing Bank's right to demand such compensation; provided
that the relevant Borrower shall not be required to compensate a Lender or an
Issuing Bank pursuant to this Section for any increased costs or reductions
incurred more than 180 days prior to the date that such Lender or such Issuing
Bank, as the case may be, notifies the Company of the Change in Law giving rise
to such increased costs or reductions and of such Lender's or such Issuing
Bank's intention to claim compensation therefor; provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 180-day period referred to above shall be extended to include the
period of retroactive effect thereof.

            SECTION 2.16. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurodollar Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurodollar Loan other than on the last day
of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Revolving Loan or B Term Loan on the date specified in
any notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.11(e) and is revoked in accordance therewith), or (d)
the assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Company pursuant to
Section 2.19, then, in any such event, the relevant Borrower shall compensate
each Lender for the loss, cost and expense attributable to such event. In the
case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be
deemed to include an

<PAGE>

                                                                              69

amount determined by such Lender to be the excess, if any, of (i) the amount of
interest which would have accrued on the principal amount of such Loan had such
event not occurred, at the Adjusted LIBO Rate that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would
bid were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the eurodollar market. A
certificate of any Lender setting forth in reasonable detail any amount or
amounts that such Lender is entitled to receive pursuant to this Section shall
be delivered to the Company and shall be conclusive absent manifest error. The
relevant Borrower shall pay such Lender the amount shown as due on any such
certificate within 10 days after receipt thereof.

            Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender's right to
demand such compensation; provided that the Borrower shall not be required to
compensate a Lender pursuant to this Section for any loss, cost or expense
incurred more than 180 days prior to the date that such Lender notifies the
Company of the loss, cost or expense and of such Lender's intention to claim
compensation therefor.

            SECTION 2.17. Taxes. (a) Any and all payments by or on account of
any obligation of any Borrower hereunder or under any other Loan Document shall
be made free and clear of and without deduction for any Indemnified Taxes or
Other Taxes; provided that if any Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Agent, Lender or Issuing Bank (as the case may be) receives an amount equal
to the sum it would have received had no such deductions been made, (ii) such
Borrower shall make such deductions and (iii) such Borrower shall pay the full
amount deducted to the relevant Governmental Authority in accordance with
applicable law.

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                                                                              70

            (b) In addition, the Borrowers shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

            (c) The relevant Borrower shall indemnify each Agent, each Lender
and each Issuing Bank, within 10 days after written demand therefor, for the
full amount of any Indemnified Taxes or Other Taxes paid by such Agent, such
Lender or such Issuing Bank, as the case may be, on or with respect to any
payment by or on account of any obligation of any Borrower hereunder or under
any other Loan Document (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section but excluding
Indemnified Taxes or Other Taxes to the extent resulted from the gross
negligence, bad faith or wilful misconduct of the Agents, such Lender or the
Issuing Banks, as applicable) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate in reasonable detail as to
the amount of such payment or liability delivered to the Company by a Lender or
an Issuing Bank, or by the Administrative Agent on its own behalf or on behalf
of a Lender or an Issuing Bank, shall be conclusive absent manifest error.

            (d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by any Borrower to a Governmental Authority, such Borrower shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

            (e) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the
applicable Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Company (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law, such properly completed and executed documentation
prescribed by applicable law or reasonably requested by the Company as will
permit such payments to be made without withholding or at a reduced rate,
provided that such Foreign Lender has received written notice from the Company
advising it of the availability

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                                                                              71

of such exemption or reduction and supplying all applicable documentation.

            (f) If the Administrative Agent or any Lender, as the case may be,
determines, in its sole discretion, that it has received a refund of any
Indemnified Taxes or Other Taxes (a "Tax Refund"), which in the reasonable good
faith judgment of the Administrative Agent or such Lender, as the case may be,
is allocable to Taxes paid by the Borrower, it shall promptly pay such Tax
Refund to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.17 with respect to
the Indemnified Taxes or Other Taxes giving rise to such refund) plus any
interest payable thereon by the relevant Governmental Authority with respect to
such refund, net of all out-of-pocket expenses of the Administrative Agent or
such Lender incurred in obtaining such Tax Refund; provided, however, that the
Borrower, upon the request of the Administrative Agent or such Lender, agrees to
repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) if the
Administrative Agent or such Lender is required to repay such refund to such
Governmental Authority. Nothing contained in this Section 2.17(f) shall require
the Administrative Agent or any Lender to make available its tax returns (or any
other information) to the Borrower or any other Person.

            SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of
Setoffs. (a) Each Borrower shall make each payment required to be made by it
hereunder or under any other Loan Document (whether of principal, interest, fees
or reimbursement of LC Disbursements, or of amounts payable under Section 2.15,
2.16 or 2.17, or otherwise) prior to the time expressly required hereunder or
under such other Loan Document for such payment (or, if no such time is
expressly required, prior to 12:00 noon, New York City time), on the date when
due, in immediately available funds, without setoff or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 270 Park Avenue, New
York, New York, except payments to be made directly to an Issuing Bank or
Swingline Lender as expressly provided herein and except that payments pursuant
to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons
entitled thereto and payments pursuant to

<PAGE>

                                                                              72

other Loan Documents shall be made to the Persons specified therein. The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment under any Loan Document shall be due on a day
that is not a Business Day, the date for payment shall be extended to the next
succeeding Business Day, and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments
under each Loan Document shall be made in dollars.

            (b) If at any time insufficient funds are received by and available
to the Administrative Agent to pay fully all amounts of principal, unreimbursed
LC Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.

            (c) If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans, B Term Loans or participations in LC
Disbursements or Swingline Loans resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Revolving Loans, B Term Loans
and participations in LC Disbursements and Swingline Loans and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Revolving Loans, B Term Loans and participations in LC
Disbursements and Swingline Loans of other Lenders to the extent necessary so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Revolving Loans, B Term Loans and participations in LC
Disbursements and Swingline Loans; provided that (i) if any such participations
are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to

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                                                                              73

apply to any payment made by any Borrower pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or participations in LC Disbursements to any assignee or participant,
other than to any Borrower or any Subsidiary or Affiliate thereof (as to which
the provisions of this paragraph shall apply). Each Borrower consents to the
foregoing and agrees, to the extent it may effectively do so under applicable
law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Borrower rights of setoff and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of such Borrower in the amount of such participation.

            (d) Unless the Administrative Agent shall have received notice from
a Borrower prior to the date on which any payment is due to the Administrative
Agent from such Borrower for the account of the Lenders or an Issuing Bank
hereunder that such Borrower will not make such payment, the Administrative
Agent may assume that such Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the
Lenders or such Issuing Bank, as the case may be, the amount due. In such event,
if the relevant Borrower has not in fact made such payment, then each of the
Lenders or such Issuing Bank, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment
to the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

            (e) If any Lender shall fail to make any payment required to be made
by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.18(d) or 9.03(c),
then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender's
obligations under such Sections until all such unsatisfied obligations are fully
paid.

            SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If
any Lender requests

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compensation under Section 2.15, or if any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account of
any Lender pursuant to Section 2.17, then such Lender shall use reasonable
efforts to file any certificate or document reasonably requested by the Company
or to designate a different lending office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such
filing, designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii)
would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. The Company hereby agrees to pay
all reasonable costs and expenses incurred by any Lender in connection with any
such filing, designation or assignment.

            (b) If any Lender requests compensation under Section 2.15, or if
any Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.17,
or if any Lender defaults in its obligations to fund Loans hereunder, then the
Company may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement to
an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Company
shall have received the prior written consent of the Administrative Agent (and,
if a Revolving Commitment is being assigned, the Issuing Banks and Swingline
Lender), which consent shall not unreasonably be withheld, (ii) such Lender
shall have received payment of an amount equal to the outstanding principal of
its Loans and participations in LC Disbursements and Swingline Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder,
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Company (in the case of all other amounts) and (iii)
in the case of any such assignment resulting from a claim for compensation under
Section 2.15 or payments required to be made pursuant to Section 2.17, such
assignment will result in a material reduction in such compensation or payments.
A Lender shall not be required to make any such assignment and delegation if,
prior thereto, as a result of a waiver by

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                                                                              75

such Lender or otherwise, the circumstances entitling the Company to require
such assignment and delegation cease to apply.

            SECTION 2.20. Incremental Facilities. The Company may at any time,
by notice to the Agents (whereupon the Administrative Agent shall promptly
deliver a copy to each of the Lenders), request the addition of new credit
facilities (the "Incremental Facilities") consisting of a new tranche of term
loans (the "Incremental Term Loans") or a new tranche of revolving loans (the
"Incremental Revolving Loans") or a combination thereof; provided that both at
the time of any such request and upon the effectiveness of the Incremental
Facility Amendment referred to below, no Default shall exist and at the time
that any such Incremental Term Loans or Incremental Revolving Loans, as the case
may be, are made (and after giving effect thereto) no Default shall exist and
the Company shall be in compliance with Sections 6.14 and 6.15, determined on a
pro forma basis as if such Incremental Term Loans or Incremental Revolving
Loans, as the case may be, had been outstanding on the last day of the most
recent fiscal quarter for testing compliance therewith. The Incremental
Facilities (i) shall be in an aggregate principal amount not exceeding (in the
aggregate) $100,000,000 and shall be effected as Incremental Term Loans or
Incremental Revolving Loans (except that not more than $50,000,000 of the
Incremental Facilities will be Incremental Revolving Loans), (ii) shall rank
pari passu in right of payment and of security with the Revolving Loans and the
B Term Loans, (iii) that are effected as Incremental Term Loans shall not mature
earlier than the Term Loan Maturity Date (but may, subject to clause (iv) below,
have amortization and commitment reductions prior to such date), (iv) that are
effected as Incremental Term Loans shall not have a weighted average life that
is shorter than that of the B Term Loans, (v) that are effected as Incremental
Revolving Loans shall mature on the Revolving Loan Maturity Date, (vi) shall not
accrue interest at a rate or rates in excess of the interest rates applicable to
the B Term Loans, in the case of Incremental Term Loans, or the Revolving Loans,
in the case of the Incremental Revolving Loans, and (vii) except as set forth
above, shall be treated substantially the same as (and in any event no more
favorably than) the B Term Loans (in each case, including with respect to
mandatory and voluntary prepayments), in the case of Incremental Term Loans, or
the Revolving Loans, in the case of the Incremental Revolving Loans; provided
that (a) the terms and

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conditions applicable to Incremental Term Loans maturing after the Term Loan
Maturity Date may provide for material additional or different financial or
other covenants applicable only during periods after the Term Loan Maturity Date
and (b) subject to clause (vi) above, the Incremental Facilities may be priced
differently than the B Term Loans and the Revolving Loans. Such notice shall set
forth the requested amount of Incremental Term Loans or Incremental Revolving
Loans, as the case may be. In the event that existing Lenders provide
commitments in an aggregate amount less than the total amount of the Incremental
Term Loans or Incremental Revolving Loans, as the case may be, requested by the
Company (but the Company shall not have any obligation to request any Lender to
provide any amount of the Incremental Term Loans or Incremental Revolving Loans,
as the case may be), the Company may arrange for one or more banks or other
financial institutions (any such bank or other financial institution being
called an "Additional Lender") to extend commitments to provide Incremental Term
Loans or Incremental Revolving Loans, as the case may be, in an aggregate amount
equal to the unsubscribed amount. Commitments in respect of Incremental Term
Loans or Incremental Revolving Loans, as the case may be, shall become
Commitments under this Agreement pursuant to an amendment (an "Incremental
Facility Amendment") to this Agreement and, as appropriate, the other Loan
Documents, executed by the Company, each Lender agreeing to provide such
Commitment, if any, each Additional Lender, if any, and the Agents. The
Incremental Facility Amendment may, without the consent of any other Lenders,
effect such amendments to this Agreement and the other Loan Documents as may be
necessary or appropriate, in the opinion of the Agents, to effect the provisions
of this Section. The effectiveness of any Incremental Facility Amendment shall
be subject to the satisfaction on the date thereof of each of the conditions set
forth in Section 4.02 (it being understood that all references to "the date of
such Borrowing" in such Section 4.02 shall be deemed to refer to the effective
date of such Incremental Facility Amendment). No Lender shall be obligated to
provide any Incremental Term Loans or Incremental Revolving Loans, as the case
may be, unless it so agrees.

            SECTION 2.21. Borrowing Subsidiaries. The Company may from time to
time designate any Subsidiary (other than a Foreign Subsidiary or Excluded
Subsidiary) to be a Borrowing Subsidiary hereunder by delivering to the
Administrative Agent a Subsidiary Borrower Election with respect to such
Subsidiary. The eligibility of any Borrowing Subsidiary to borrow or to have
Letters of

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                                                                              77

Credit issued for its account hereunder shall terminate when the Administrative
Agent receives a Subsidiary Borrower Termination with respect to such
Subsidiary. Each Subsidiary Borrower Election delivered to the Administrative
Agent shall be duly executed on behalf of the relevant Subsidiary and the
Company, and each Subsidiary Borrower Termination delivered to the
Administrative Agent shall be duly executed on behalf of the Company. The
delivery of a Subsidiary Borrower Termination shall not affect any obligation of
the relevant Subsidiary theretofore incurred in its capacity as a Borrower, and
such Subsidiary shall continue to constitute a Borrowing Subsidiary for all
purposes hereof (other than the right to borrow Loans or to have Letters of
Credit issued for its account) until all its obligations hereunder as a Borrower
have been discharged and paid in full. The Administrative Agent shall promptly
give notice to the Lenders and the Issuing Banks of its receipt of any
Subsidiary Borrower Election or Subsidiary Borrower Termination.

                                   ARTICLE III

                         Representations and Warranties

            The Company represents and warrants to the Lenders that:

            SECTION 3.01. Organization; Powers. Each of the Company and its
Subsidiaries (other than any Excluded Subsidiaries) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as
now conducted and, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required.

            SECTION 3.02. Authorization; Enforceability. The Transactions to be
entered into by each Loan Party are within such Loan Party's corporate powers
and have been duly authorized by all necessary corporate and, if required,
stockholder action. This Agreement has been duly executed and delivered by each
of the Borrowers and constitutes, and each other Loan Document to which any Loan
Party is to be a party, when executed and delivered by such Loan Party, will
constitute, a legal, valid and binding obligation of such Borrower or such Loan
Party

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                                                                              78

(as the case may be), enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors' rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

            SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions
(a) do not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority, except (i) such as have been
obtained or made and are in full force and effect, (ii) filings necessary to
perfect Liens created under the Loan Documents and (iii) other consents,
approvals, registrations and filings the failure to obtain which could not
reasonably be expected (individually or in the aggregate) to have a Material
Adverse Effect, (b) will not violate in any material respect any applicable law
or regulation or the charter, by-laws or other organizational documents of the
Borrowers or any of their Subsidiaries or any order of any Governmental
Authority, (c) will not violate or result in a default under any material
indenture, agreement or other instrument binding upon the Company or any of the
Subsidiaries or their assets (except for the Existing Defaults), or give rise to
a right thereunder (other than in respect of the Existing Defaults) to require
any payment to be made by the Company or any of the Subsidiaries, and (d) will
not result in the creation or imposition of (or any requirement to create or
impose) any Lien on any asset of the Company or any of the Subsidiaries, except
Liens created under the Loan Documents.

            SECTION 3.04. Financial Condition; No Material Adverse Change. (a)
The Company has heretofore furnished to the Lenders its consolidated balance
sheet and statements of income, stockholders equity and cash flows (i) as of and
for the fiscal year ended December 31, 2000, reported on by Ernst & Young LLP,
independent public accountants, and (ii) as of and for the fiscal quarter and
the portion of the fiscal year ended March 31, 2001, certified on behalf of the
Company by a Financial Officer. Such financial statements present fairly, in all
material respects, the financial position and results of operations and cash
flows of the Company and its consolidated Subsidiaries as of such dates and for
such periods in accordance with GAAP, subject to year-end audit adjustments and
the absence of footnotes in the case of the statements referred to in clause
(ii) above.

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                                                                              79

            (b) Except as disclosed in the financial statements referred to
above or the notes thereto or the Information Memorandum and except for the
Disclosed Matters, none of the Company or its Subsidiaries has, as of the
Effective Date, any material contingent liabilities or material unrealized
losses.

            (c) Since December 31, 2000, there has been no material adverse
change in the business, assets, operations or financial condition of the Company
and the Subsidiaries, taken as a whole.

            SECTION 3.05. Properties. (a) Each of the Company and its
Subsidiaries has good title to, or valid leasehold interests in, all its real
and personal property material to its business (including its Mortgaged
Properties), except for minor defects in title that do not interfere with its
ability to conduct its business as currently conducted or to utilize such
properties for their intended purposes.

            (b) Each of the Company and its Subsidiaries owns, or is licensed to
use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Company and its
Subsidiaries does not infringe upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

            (c) Schedule 3.05 sets forth the address of each real property that
is owned or leased by any Loan Party as of the Effective Date at which
Collateral with an aggregate book value exceeding $5,000,000 is located.

            (d) As of the Effective Date, neither the Company nor any of its
Subsidiaries has received notice of, or has knowledge of, any pending or
contemplated condemnation proceeding affecting any Mortgaged Property or any
sale or disposition thereof in lieu of condemnation. Neither any Mortgaged
Property nor any interest therein is subject to any right of first refusal,
option or other contractual right to purchase such Mortgaged Property or
interest therein.

            SECTION 3.06. Litigation and Environmental Matters. (a) There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Company, threatened
against or affecting the Company or any of its

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                                                                              80

Subsidiaries (i) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect (other
than the Disclosed Matters) or (ii) that involve any of the Loan Documents or
the Transactions.

            (b) Except for the Disclosed Matters and except with respect to any
other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, (i) neither the Company nor any
of its Subsidiaries has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required
under any Environmental Law, (ii) there are no pending, or to the knowledge of
the Company, threatened claims, actions, suits, proceedings or investigations
arising under Environmental Laws ("Environmental Claims") against or affecting
the Company or any Subsidiary, and (iii) to the knowledge of the Company, there
are no facts, circumstances or conditions which could reasonably be expected to
form the basis for an Environmental Claim against the Company or any Subsidiary.

            SECTION 3.07. Compliance with Laws and Agreements. Each of the
Company and its Subsidiaries is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except for the Existing Defaults and Disclosed Matters and except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect or where the necessity of
compliance therewith is being contested in good faith by appropriate proceedings
and the failure to comply therewith pending such contest could not reasonably be
expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.

            SECTION 3.08. Investment and Holding Company Status. Neither the
Company nor any of its Subsidiaries is (a) an "investment company" as defined
in, or subject to regulation under, the Investment Company Act of 1940 or (b) a
"holding company" as defined in, or subject to regula tion under, the Public
Utility Holding Company Act of 1935.

            SECTION 3.09. Taxes. Each of the Company and its Subsidiaries has
timely filed or caused to be filed all Tax returns and reports required to have
been filed

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                                                                              81

and has paid or caused to be paid all Taxes required to have been paid by it,
except (a) any Taxes that are being contested in good faith by appropriate
proceedings and for which the Company or such Subsidiary, as applicable, has set
aside on its books adequate reserves or (b) to the extent that the failure to do
so could not reasonably be expected to result in a Material Adverse Effect.

            SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of calculating the Company's financial statements) did not, as of the date of
the most recent financial statements reflecting such amounts, exceed by more
than $40,000,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of calculating the Company's
financial statements) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $60,000,000 the fair
market value of the assets of all such underfunded Plans. The Company has no
contingent liability with respect to post-retirement benefits provided by the
Company or any of its Subsidiaries, other than (i) a liability for the
continuation of coverage described in Part 6 of Subtitle B of Title I of ERISA
and (ii) liabilities which will not, individually or in the aggregate, exceed
$350,000,000. Neither the Company nor any of its Subsidiaries could reasonably
be expected to incur a Withdrawal Liability in excess of $20,000,000.

            SECTION 3.11. Disclosure. Neither the Information Memorandum nor the
offering circular dated May 8, 2001, with respect to the offering of the New
Senior Notes nor any of the other reports, financial statements, certificates
and other written information furnished by or on behalf of any Loan Party to any
Agent or to the initial Lenders in connection with the negotiation of this
Agreement or any other Loan Document or delivered hereunder or thereunder (as
modified or supplemented by other information so furnished) on or prior to the
Effective Date, when taken as a whole, nor any of the reports, financial
statements, certificates and other information required to be furnished pursuant
to Article V hereof after the Effective Date, contains any material misstatement
of fact or omits to state any

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                                                                              82

material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with
respect to projected financial information, the Company represents only that
such information was prepared in good faith based upon assumptions believed to
be reasonable at the time (it being understood that the projected financial
information is subject to significant uncertainties and contingencies, many of
which are beyond the Company's control, that the Company gives no assurance such
projections will be realized and that actual results may differ from those in
the projected financial information and such differences may be material).

            SECTION 3.12. Subsidiaries. Schedule 3.12 sets forth the name of,
the jurisdiction of organization of, and the ownership interest of the Company
in, each Subsidiary of the Company and identifies each Subsidiary that is a
Subsidiary Loan Party, a Foreign Subsidiary, a Phosphate Subsidiary, a Domestic
Excluded Subsidiary, a Foreign Excluded Subsidiary, a Domestic Phosphate
Excluded Subsidiary or a Foreign Phosphate Excluded Subsidiary, in each case as
of the Effective Date.

            SECTION 3.13. Insurance. Schedule 3.13 sets forth a description of
all insurance maintained by or on behalf of the Company and its Subsidiaries as
of the Effective Date. As of the Effective Date, all premiums in respect of such
insurance have been paid. The Company believes that the insurance maintained by
or on behalf of itself and its Subsidiaries is adequate.

            SECTION 3.14. Labor Matters. As of the Effective Date, there are no
strikes, lockouts or slowdowns against the Company or any Subsidiary pending or,
to the knowledge of the Company, threatened, except as could not reasonably be
expected to have a Material Adverse Effect. The hours worked by and payments
made to employees of the Company and the Subsidiaries have not been in violation
of the Fair Labor Standards Act or any other applicable Federal, state, local or
foreign law dealing with such matters, except as could not reasonably be
expected to have a Material Adverse Effect. All payments due from the Company or
any Subsidiary, or for which any claim may be made against the Company or any
Subsidiary, on account of wages and employee health and welfare insurance and
other benefits, have been paid or accrued as a liability on the books of the
Company or such Subsidiary, except as could not reasonably be expected to have a
Material Adverse Effect.

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                                                                              83

            SECTION 3.15. Solvency. Immediately following the making of each
Loan made on the Effective Date and after giving effect to the application of
the proceeds of such Loans (taking into account each Loan Party's rights and
obligations under the Indemnity, Subrogation and Contribution Agreement), (a)
the fair value of the assets of each Loan Party, at a fair valuation, will
exceed its debts and liabilities, subordinated, contingent or otherwise; (b) the
present fair saleable value of the property of each Loan Party will be greater
than the amount that will be required to pay the probable liability of its debts
and other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured; (c) each Loan Party will be able
to pay its debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured; and (d) each Loan Party will
not have unreasonably small capital with which to conduct the business in which
it is engaged as such business is now conducted and is proposed to be conducted
following the Effective Date.

            SECTION 3.16. Security Documents. (a) The Pledge Agreement is
effective to create in favor of the Collateral Agent a legal, valid and
enforceable security interest in the Collateral (as defined in the Pledge
Agreement) and, when such Collateral is delivered to the Collateral Agent, the
Pledge Agreement shall constitute a fully perfected first priority Lien on, and
security interest in, all right, title and interest of each pledgor thereunder
in such Collateral, in each case prior and superior in right to any other
Person.

            (b) The Security Agreement is effective to create in favor of the
Collateral Agent a legal, valid and enforceable security interest in the
Collateral (as defined in the Security Agreement) and, when financing statements
in appropriate form are filed in the offices specified on Schedule 6 to the
Perfection Certificate, the Security Agreement shall constitute a fully
perfected Lien on, and security interest in, all right, title and interest of
the grantors thereunder in such Collateral, to the extent that a security
interest can be perfected in such Collateral by filing, recording or registering
a financing statement or analogous document in the United States (or any
political subdivision thereof) and its territories and possessions pursuant to
the Uniform Commercial Code or other applicable law in such jurisdiction, in
each case prior and superior in right to any other Person, other than with
respect to Liens expressly permitted by Section 6.02.

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                                                                              84

            (c) Each Mortgage, when duly executed and delivered by the relevant
Loan Party, will be effective to create, subject to the exceptions listed in
each title insurance policy covering such Mortgage, in favor of the Collateral
Agent, a legal, valid and enforceable Lien on all of the Loan Parties' right,
title and interest in and to the Mortgaged Properties thereunder and the
proceeds thereof, and when the Mortgages are filed in the offices specified on
Schedule 3.16(c), the Mortgages shall constitute a Lien on, and security
interest in, all right, title and interest of the Loan Parties in such Mortgaged
Properties and the proceeds thereof, in each case prior and superior in right to
any other Person, other than with respect to the rights of Persons pursuant to
Liens expressly permitted by Section 6.02.

            SECTION 3.17. Lien Basket Amount. As of the Effective Date, the Lien
Basket Amount (after giving effect to the repayment of all Indebtedness
outstanding under the Existing Credit Agreements and the release of all Liens
securing obligations thereunder) is not less than $426,000,000.

            SECTION 3.18. Excluded Subsidiaries. (a) Domestic Excluded
Subsidiaries. (i) The consolidated assets of the Domestic Excluded Subsidiaries
(determined on a consolidated basis in accordance with GAAP as though all the
Domestic Excluded Subsidiaries were a consolidated group but excluding all
Foreign Subsidiaries that are subsidiaries of Domestic Excluded Subsidiaries)
represent less than 15% of the consolidated assets of the Company and its
Domestic Subsidiaries (determined on a consolidated basis in accordance with
GAAP but excluding all Foreign Subsidiaries and Phosphate Subsidiaries).

            (ii) The consolidated assets of each Domestic Excluded Subsidiary
(determined on a consolidated basis in accordance with GAAP with its Domestic
Subsidiaries but excluding all of its Subsidiaries that are Foreign
Subsidiaries) represent less than 5% of the consolidated assets of the Company
and its Domestic Subsidiaries (determined on a consolidated basis in accordance
with GAAP but excluding all Foreign Subsidiaries and Phosphate Subsidiaries).

            (iii) The consolidated operating income of the Domestic Excluded
Subsidiaries for the period of four consecutive fiscal quarters most recently
ended (determined on a consolidated basis in accordance with GAAP as though all
the Domestic Excluded Subsidiaries were a consolidated group but excluding all
Foreign

<PAGE>

                                                                              85

Subsidiaries that are subsidiaries of Domestic Excluded Subsidiaries) represent
less than 15% of the consolidated operating income of the Company and its
Domestic Subsidiaries for such period (determined on a consolidated basis in
accordance with GAAP but excluding all Foreign Subsidiaries and Phosphate
Subsidiaries).

            (iv) The consolidated operating income of each Domestic Excluded
Subsidiary for the period of four consecutive fiscal quarters most recently
ended (determined on a consolidated basis in accordance with GAAP with its
Domestic Subsidiaries but excluding all of its Subsidiaries that are Foreign
Subsidiaries) represent less than 5% of the consolidated operating income of the
Company and its Domestic Subsidiaries for such period (determined on a
consolidated basis in accordance with GAAP but excluding all Foreign
Subsidiaries and Phosphate Subsidiaries).

            (b) Foreign Excluded Subsidiaries. (i) The consolidated assets of
the Foreign Excluded Subsidiaries (determined on a consolidated basis in
accordance with GAAP as though all the Foreign Excluded Subsidiaries were a
consolidated group) represent less than 15% of the consolidated assets of all
the Foreign Subsidiaries (determined on a consolidated basis in accordance with
GAAP as though all the Foreign Subsidiaries were a consolidated group, but
excluding all Foreign Phosphate Subsidiaries).

            (ii) The consolidated assets of each Foreign Excluded Subsidiary
(determined on a consolidated basis in accordance with GAAP with its
subsidiaries) represent less than 5% of the consolidated assets of all the
Foreign Subsidiaries (determined on a consolidated basis in accordance with GAAP
as though all Foreign Subsidiaries were a consolidated group, but excluding all
Foreign Phosphate Subsidiaries); provided that for purposes of this clause (ii)
"Foreign Excluded Subsidiary" shall not include the Australian Operating
Subsidiaries and all Foreign Subsidiaries that directly or indirectly own any
Equity Interests in any of the Australian Operating Subsidiaries, so long as
substantially all of the consolidated assets of the consolidated group
comprising such Foreign Subsidiaries is comprised of the consolidated assets of
the Australian Operating Subsidiaries.

            (iii) The consolidated operating income of the Foreign Excluded
Subsidiaries for the period of four consecutive fiscal quarters most recently
ended

<PAGE>

                                                                              86

(determined on a consolidated basis in accordance with GAAP as though all the
Foreign Excluded Subsidiaries were a consolidated group) represent less than 15%
of the consolidated operating income of all the Foreign Subsidiaries for such
period (determined on a consolidated basis in accordance with GAAP as though all
Foreign Subsidiaries were a consolidated group, but excluding all Foreign
Phosphate Subsidiaries).

            (iv) The consolidated operating income of each Foreign Excluded
Subsidiary (other than the Australian Operating Subsidiaries and all Foreign
Subsidiaries that directly or indirectly own any Equity Interests in any of the
Australian Operating Subsidiaries, so long as substantially all of the
consolidated operating income of the consolidated group comprising such Foreign
Subsidiaries is comprised of the consolidated operating income of the Australian
Operating Subsidiaries) for the period of four consecutive fiscal quarters most
recently ended (determined on a consolidated basis in accordance with GAAP with
its subsidiaries) represent less than 5% of the consolidated operating income of
all the Foreign Subsidiaries for such period (determined on a consolidated basis
in accordance with GAAP as though all Foreign Subsidiaries were a consolidated
group, but excluding all Foreign Phosphate Subsidiaries).

            (c) Domestic Phosphate Excluded Subsidiaries. (i) The consolidated
assets of the Domestic Phosphate Excluded Subsidiaries (determined on a
consolidated basis in accordance with GAAP as though all the Domestic Phosphate
Excluded Subsidiaries were a consolidated group but excluding all Foreign
Phosphate Subsidiaries that are subsidiaries of Domestic Phosphate Excluded
Subsidiaries) represent less than 15% of the consolidated assets of the Domestic
Phosphate Subsidiaries (determined on a consolidated basis in accordance with
GAAP as though all the Domestic Phosphate Subsidiaries were a consolidated group
but excluding all Foreign Phosphate Subsidiaries).

            (ii) The consolidated assets of each Domestic Phosphate Excluded
Subsidiary (determined on a consolidated basis in accordance with GAAP with its
Domestic Phosphate Subsidiaries but excluding all of its Subsidiaries that are
Foreign Phosphate Subsidiaries) represent less than 5% of the consolidated
assets of the Domestic Phosphate Subsidiaries (determined on a consolidated
basis in accordance with GAAP as though all of the Domestic Phosphate
Subsidiaries were a consolidated group but excluding all Foreign Phosphate
Subsidiaries).

<PAGE>

                                                                              87

            (iii) The consolidated operating income of the Domestic Phosphate
Excluded Subsidiaries for the period of four consecutive fiscal quarters most
recently ended (determined on a consolidated basis in accordance with GAAP as
though all the Domestic Phosphate Excluded Subsidiaries were a consolidated
group but excluding all Foreign Phosphate Subsidiaries that are subsidiaries of
Domestic Phosphate Excluded Subsidiaries) represent less than 15% of the
consolidated operating income of the Domestic Phosphate Subsidiaries for such
period (determined on a consolidated basis in accordance with GAAP as though all
the Domestic Phosphate Subsidiaries were a consolidated group but excluding all
Foreign Phosphate Subsidiaries).

            (iv) The consolidated operating income of each Domestic Phosphate
Excluded Subsidiary for the period of four consecutive fiscal quarters most
recently ended (determined on a consolidated basis in accordance with GAAP with
its Domestic Phosphate Subsidiaries but excluding all of its Subsidiaries that
are Foreign Phosphate Subsidiaries) represent less than 5% of the consolidated
operating income of the Domestic Phosphate Subsidiaries for such period
(determined on a consolidated basis in accordance with GAAP as though all
Domestic Phosphate Subsidiaries were a consolidated group but excluding all
Foreign Phosphate Subsidiaries).

            (d) Foreign Phosphate Excluded Subsidiaries. (i) The consolidated
assets of the Foreign Phosphate Excluded Subsidiaries (determined on a
consolidated basis in accordance with GAAP as though all the Foreign Phosphate
Excluded Subsidiaries were a consolidated group) represent less than 15% of the
consolidated assets of all the Foreign Phosphate Subsidiaries (determined on a
consolidated basis in accordance with GAAP as though all the Foreign Phosphate
Subsidiaries were a consolidated group).

            (ii) The consolidated assets of each Foreign Phosphate Excluded
Subsidiary (determined on a consolidated basis in accordance with GAAP with its
Subsidiaries) represent less than 5% of the consolidated assets of all the
Foreign Phosphate Subsidiaries (determined on a consolidated basis in accordance
with GAAP as though all the Foreign Phosphate Subsidiaries were a consolidated
group).

            (iii) The consolidated operating income of the Foreign Phosphate
Excluded Subsidiaries for the period of four consecutive fiscal quarters most
recently ended

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(determined on a consolidated basis in accordance with GAAP as though all the
Foreign Phosphate Excluded Subsidiaries were a consolidated group) represent
less than 15% of the consolidated operating income of all the Foreign Phosphate
Subsidiaries for such period (determined on a consolidated basis in accordance
with GAAP as though all the Foreign Phosphate Subsidiaries were a consolidated
group).

            (iv) The consolidated operating income of each Foreign Phosphate
Excluded Subsidiary for the period of four consecutive fiscal quarters most
recently ended (determined on a consolidated basis in accordance with GAAP with
its Subsidiaries) represent less than 5% of the consolidated operating income of
all the Foreign Phosphate Subsidiaries for such period (determined on a
consolidated basis in accordance with GAAP as though all the Foreign Phosphate
Subsidiaries were a consolidated group).

            SECTION 3.19. Certain Payments. Each Loan Party has paid all
material amounts due and owing by it in respect of obligations to carriers,
warehousemen, landlords or other third parties that, in each case, possess any
inventory constituting Collateral or have any inventory constituting Collateral
located on or in any property owned or operated by them, except (a) current
accounts payable that are not delinquent or aged beyond the period customary or
required for payment thereof or (b) obligations that are being contested in
compliance with Section 5.05.

                                   ARTICLE IV

                                   Conditions

            SECTION 4.01. Effective Date. The obligations of the Lenders to make
Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not
become effective until the date on which each of the following conditions is
satisfied (or waived in accordance with Section 9.02):

            (a) The Agents (or their counsel) shall have received from each
      party hereto either (i) a counterpart of this Agreement signed on behalf
      of such party or (ii) written evidence reasonably satisfactory to the
      Agents (which may include telecopy transmission of a signed signature page
      of

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      this Agreement) that such party has signed a counterpart of this
      Agreement.

            (b) The Agents shall have received a favorable written opinion
      (addressed to the Agents and the Lenders and dated the Effective Date) of
      each of (i) Kirkland & Ellis, U.S. counsel for the Borrowers,
      substantially in the form of Exhibit I-1, (ii) MacPherson Leslie &
      Tyerman, Canadian counsel for the Borrowers, substantially in the form of
      Exhibit I-2, and (iii) local counsel in each jurisdiction where a
      Mortgaged Property is located, substantially in the form of Exhibit I-3,
      and, in the case of each such opinion required by this paragraph, covering
      such other matters relating to the Loan Parties, the Loan Documents or the
      Transactions as any Agent or the Required Lenders shall reasonably
      request. The Borrowers hereby request such counsel to deliver such
      opinions.

            (c) The Agents shall have received such documents and certificates
      as the Agents or their counsel may reasonably request relating to the
      organization, existence and good standing of each Loan Party, the
      authorization of the Transactions and any other legal matters relating to
      the Loan Parties, the Loan Documents or the Transactions, all in form and
      substance reasonably satisfactory to the Agents and their counsel.

            (d) The Agents shall have received a certificate, dated the
      Effective Date and signed on behalf of the Company by the President, a
      Vice President or a Financial Officer of the Company, confirming
      compliance with the conditions set forth in paragraphs (a) and (b) of
      Section 4.02.

            (e) The Agents shall have received all fees and other amounts due
      and payable on or prior to the Effective Date, including, to the extent
      invoiced, reimbursement or payment of all out-of-pocket expenses
      (including reasonable fees, charges and disbursements of counsel) required
      to be reimbursed or paid by any Loan Party hereunder or under any other
      Loan Document.

            (f) The Collateral Sharing Agreement shall have been executed and
      delivered by the parties thereto and shall be in full force and effect.
      The Collateral and Guarantee Requirement shall have been satisfied and the
      Agents shall have received a

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                                                                              90

      completed Perfection Certificate dated the Effective Date and signed on
      behalf of the Company by an executive officer or Financial Officer of the
      Company, together with all attachments contemplated thereby, including the
      results of a search of the Uniform Commercial Code (or equivalent) filings
      made with respect to the Loan Parties in the jurisdictions contemplated by
      the Perfection Certificate and copies of the financing statements (or
      similar documents) disclosed by such search and evidence reasonably
      satisfactory to the Agents that the Liens indicated by such financing
      statements (or similar documents) are permitted by Section 6.02 or have
      been released.

            (g) The Agents shall have received evidence that the insurance
      required by Section 5.07 and the Security Documents is in effect.

            (h) The Agents shall have received the initial Collateral Coverage
      Certificate calculating the Collateral Coverage Amount as of the last day
      of the most recent fiscal quarter of the Company for which financial
      statements are available.

            (i) The Company shall have received gross cash proceeds of not less
      than $550,000,000 from the issuance of the New Senior Notes. The terms and
      conditions of the New Senior Notes (including, but not limited to, the
      interest rate, maturity, covenants and events of default) and the
      provisions of each of the New Senior Notes Indentures shall be reasonably
      satisfactory in all material respects to the Lenders. The Agents shall
      have received copies of each of the New Senior Notes Indentures, certified
      on behalf of the Company by a Financial Officer as complete and correct.

            (j) All consents and approvals required to be obtained from any
      Governmental Authority or other Person in connection with the Transactions
      shall have been obtained.

            (k) The Agents shall be satisfied that, concurrently with the
      initial funding of Loans on the Effective Date, (i) the Company shall
      terminate the Existing Credit Agreements and repay all loans and other
      amounts accrued or owing thereunder and (ii) all security interests and
      other Liens securing obligations thereunder (and any other obligations
      secured thereby) shall be terminated and released.

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                                                                              91

      The Agents shall be satisfied that, immediately prior to such terminations
      and repayments, no default shall have occurred and be continuing under
      either of the Existing Credit Agreements.

The Administrative Agent shall notify the Company and the Lenders of the
Effective Date, and such notice shall be conclusive and binding. Notwithstanding
the foregoing, the obligations of the Lenders to make Loans and of the Issuing
Banks to issue Letters of Credit hereunder shall not become effective unless
each of the foregoing conditions is satisfied (or waived pursuant to Section
9.02) at or prior to 5:00 p.m., New York City time, on May 17, 2001, and, in the
event such conditions are not so satisfied or waived, the Commitments shall
terminate at such time.

            SECTION 4.02. Each Credit Event. The obligation of each Lender to
make a Loan on the occasion of any Borrowing, and of any Issuing Bank to issue,
amend, renew or extend any Letter of Credit, is subject to receipt of the
request therefor in accordance herewith and to the satisfaction of the following
conditions:

            (a) The representations and warranties of each Loan Party set forth
      in the Loan Documents shall be true and correct in all material respects
      on and as of the date of such Borrowing or the date of issuance,
      amendment, renewal or extension of such Letter of Credit, as applicable
      (except any such representation or warranty that expressly relates to or
      is made expressly as of a specific earlier date, in which case such
      representation or warranty shall be true and correct in all material
      respects with respect to or as of such specific earlier date).

            (b) At the time of and immediately after giving effect to such
      Borrowing or the issuance, amendment, renewal or extension of such Letter
      of Credit, as applicable, no Default shall have occurred and be
      continuing.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Company on the date thereof as to the matters specified in paragraphs (a) and
(b) of this Section.

            SECTION 4.03. Borrowing Subsidiaries. The obligation of each Lender
to make a Loan on the occasion of the first Borrowing by a Borrowing Subsidiary
(other

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                                                                              92

than a Subsidiary that is a Borrowing Subsidiary as of the Effective Date) or of
any Issuing Bank to issue the first Letter of Credit for the account of such
Borrowing Subsidiary, whichever first occurs, is subject to receipt and
acknowledged by the Administrative Agent of a Subsidiary Borrower Election with
respect to such Borrowing Subsidiary in accordance with Section 2.21 and to the
satisfaction of the following further conditions:

            (a) The Agents shall have received one or more favorable written
      opinions of counsel for such Borrowing Subsidiary reasonably acceptable to
      the Agents, with respect to (i) the organization and existence of such
      Borrowing Subsidiary, (ii) the due authorization, execution and delivery
      of the relevant Subsidiary Borrower Election, (iii) the legality, validity
      and binding effect on such Borrowing Subsidiary of the relevant Subsidiary
      Borrower Election and this Agreement and (iv) such other matters relating
      to such Borrowing Subsidiary as any Agent shall reasonably request.

            (b) The Agents shall have received such documents and certificates
      as the Agents or their counsel may reasonably request relating to the
      organization, existence and good standing of such Borrowing Subsidiary,
      its authorization to be a Borrower and any other legal matters relating to
      such Borrowing Subsidiary, all in form and substance reasonably
      satisfactory to the Agents and their counsel.

                                    ARTICLE V

                              Affirmative Covenants

            Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full and all Letters of Credit shall have expired or terminated and
all LC Disbursements shall have been reimbursed, the Company covenants and
agrees with the Lenders that:

            SECTION 5.01. Financial Statements and Other Information. The
Company will furnish to each Agent (and

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                                                                              93

promptly following receipt thereof, the Administrative Agent will furnish to
each Lender that is not an Agent):

            (a) within 95 days after the end of each fiscal year of the Company,
      its audited consolidated balance sheet and related statements of
      operations, stockholders' equity and cash flows as of the end of and for
      such year, setting forth in each case in comparative form the figures for
      the previous fiscal year, all reported on by Ernst & Young LLP or other
      independent public accountants of recognized national standing (without a
      "going concern" or like qualification or exception and without any
      qualification or exception as to the scope of such audit) to the effect
      that such consolidated financial statements present fairly in all material
      respects the financial condition and results of operations of the Company
      and its consolidated Subsidiaries on a consolidated basis in accordance
      with GAAP;

            (b) within 50 days after the end of each of the first three fiscal
      quarters of each fiscal year of the Company, its consolidated balance
      sheet and related statements of operations, stockholders' equity and cash
      flows as of the end of and for such fiscal quarter and the then elapsed
      portion of the fiscal year, setting forth in each case in comparative form
      the figures for the corresponding period or periods of (or, in the case of
      the balance sheet, as of the end of) the previous fiscal year, all
      certified on behalf of the Company by one of its Financial Officers as
      presenting fairly in all material respects the financial condition and
      results of operations of the Company and its consolidated Subsidiaries on
      a consolidated basis in accordance with GAAP, subject to normal year-end
      audit adjustments and the absence of footnotes;

            (c) concurrently with any delivery of financial statements under
      clause (a) or (b) above, (i) a Collateral Coverage Certificate calculating
      the Collateral Coverage Amount as of the end of the fiscal year or fiscal
      quarter covered by such financial statements and (ii) a certificate on
      behalf of the Company of a Financial Officer of the Company (A) certifying
      as to whether a Default has occurred and, if a Default has occurred,
      specifying the details thereof and any action taken or proposed to be
      taken with respect thereto, (B) setting forth reasonably detailed
      calculations (1) of the Leverage

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                                                                              94

      Ratio as of the end of the fiscal year or quarter covered by such
      financial statements and (2) demonstrating compliance with Sections 6.12,
      6.13, 6.14, 6.15 and 6.16 and, in the case of any such certificate
      required to be delivered with the financial statements delivered under
      clause (a) above, Section 3.18, (C) attaching statements that separately
      state, for each of the Company's business units, their respective revenues
      and shares of Consolidated EBITDA for the period covered by such financial
      statements in a format reasonably acceptable to the Agents, (D) attaching
      a report setting forth (1) the aggregate purchase commitments under
      commodity hedging agreements then in effect, stated separately for each
      future 12-month period, and (2) the weighted average contract price for
      each such 12-month period and (E) stating whether any change in GAAP or in
      the application thereof has occurred since the date of the Company's
      audited financial statements referred to in Section 3.04 and, if any such
      change has occurred, specifying the effect of such change on the financial
      statements accompanying such certificate;

            (d) within 60 days after the commencement of each fiscal year of the
      Company, a consolidated financial forecast for such fiscal year (including
      a projected consolidated balance sheet and related statements of projected
      operations and cash flow as of the end of and for such fiscal year,
      together with information separately stating for each of the Company's
      business units their respective forecasted revenues and shares of
      Consolidated EBITDA for such fiscal year, and setting forth the key
      assumptions used for purposes of preparing such forecasted information),
      in a format reasonably acceptable to the Agents;

            (e) promptly after the same become publicly available, copies of all
      periodic and other reports, proxy statements and other materials filed by
      the Company or any Subsidiary with the Securities and Exchange Commission,
      or any Governmental Authority succeeding to any or all of the functions of
      said Commission, or with any national securities exchange, or distributed
      by the Company to its shareholders generally, as the case may be;

            (f) within five Business Days following the occurrence of a
      Recalculation Event, a Collateral Coverage Certificate calculating the
      Collateral

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                                                                              95

      Coverage Amount after giving effect to such Recalculation Event; and

            (g) promptly following any request therefor, such other information
      regarding the operations, business affairs and financial condition of the
      Company or any Subsidiary, or compliance with the terms of any Loan
      Document, as any Agent or any Lender may reasonably request.

Any report, proxy statements or other material required to be delivered pursuant
to clause (e) of this Section shall be deemed to have been furnished to each of
the Agents and Lenders on the date that such report, proxy statement or other
material is posted on the Securities and Exchange Commission's website at
www.sec.gov; provided that the Company will furnish paper copies of such
reports, proxy statements and materials to any Lender that requests, by notice
to the Company, that the Company do so, until the Company receives notice from
such Lender to cease delivering such paper copies.

            SECTION 5.02. Notices of Material Events. The Company will furnish
to each Agent and each Lender prompt written notice of the following:

            (a) the occurrence of any Default;

            (b) the filing or commencement of any action, suit or proceeding by
      or before any arbitrator or Governmental Authority against or affecting
      the Company or any Affiliate thereof as to which there is a reasonable
      possibility of an adverse determination and that, if adversely determined,
      could reasonably be expected to result in a Material Adverse Effect;

            (c) the occurrence of any ERISA Event that, alone or together with
      any other ERISA Events that have occurred, could reasonably be expected to
      result in liability of the Company and its Subsidiaries in an aggregate
      amount exceeding $10,000,000; and

            (d) any other development that results in, or could reasonably be
      expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement on
behalf of the Company of a Financial Officer or other executive officer of the

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                                                                              96

Company setting forth the details of the event or development requiring such
notice and any action taken or proposed to be taken with respect thereto.

            SECTION 5.03. Information Regarding Collateral. (a) The Company will
furnish to the Administrative Agent prompt written notice of any change (i) in
any Loan Party's corporate name or in any trade name used to identify it in the
conduct of its business or in the ownership of its properties, (ii) in the
location of any Loan Party's chief executive office, its principal place of
business, any office in which it maintains books or records relating to
Collateral owned by it or any office or facility at which Collateral owned by it
is located (including the establishment of any such new office or facility),
(iii) in any Loan Party's jurisdiction of organization, identity or corporate
structure or (iv) in any Loan Party's Federal Taxpayer Identification Number.
The Company agrees not to effect or permit any change referred to in the
preceding sentence unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for the Collateral Agent
to continue at all times following such change to have a valid, legal and
perfected security interest in all the Collateral. The Company also agrees
promptly to notify the Agents if any material portion of the Collateral is
damaged or destroyed.

            (b) Each year, at the time of delivery of annual financial
statements with respect to the preceding fiscal year pursuant to clause (a) of
Section 5.01, the Company shall deliver to the Agents a certificate on behalf of
the Company of a Financial Officer and the chief legal officer of the Company
(i) setting forth the information required pursuant to Sections 1 and 2 of the
Perfection Certificate or confirming that there has been no change in such
information since the date of the Perfection Certificate delivered on the
Effective Date or the date of the most recent certificate delivered pursuant to
this Section and (ii) certifying that all Uniform Commercial Code financing
statements (including fixture filings, as applicable) or other appropriate
filings, recordings or registrations, including all refilings, rerecordings and
reregistrations, containing a description of the Collateral have been filed of
record in each governmental, municipal or other appropriate office in each
jurisdiction identified pursuant to clause (i) above to the extent necessary to
protect and perfect the security interests under the Security Agreement for a
period of not less than 18 months after the date of such certificate (except as
noted therein with respect to any

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                                                                              97

continuation statements to be filed within such period and except with respect
to Collateral with respect to which perfection is not required by the terms of
the Security Agreement).

            SECTION 5.04. Existence; Conduct of Business. The Company will, and
will cause each of its Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges, franchises, patents,
copyrights, trademarks and trade names material to the conduct of its business;
provided that the foregoing shall not prohibit any conversion, merger,
consolidation, liquidation or dissolution permitted under Section 6.03 or any
sale, transfer, lease or other disposition permitted under Section 6.05.

            SECTION 5.05. Payment of Obligations. The Company will, and will
cause each of its Subsidiaries to, pay its material Indebtedness and other
material obligations, including Tax liabilities, before the same shall become
delinquent or in default, except where (a) the validity or amount thereof is
being contested in good faith by appropriate proceedings, (b) the Company or
such Subsidiary has set aside on its books adequate reserves with respect
thereto in accordance with GAAP, (c) such contest effectively suspends
collection of the contested obligation and the enforcement of any Lien securing
such obligation and (d) the failure to make payment pending such contest could
not reasonably be expected to result in a Material Adverse Effect.

            SECTION 5.06. Maintenance of Properties. The Company will, and will
cause each of its Subsidiaries to, keep and maintain all its property in good
working order and condition, except to the extent that the failure to do so,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

            SECTION 5.07. Insurance. The Company will, and will cause each of
its Subsidiaries to, maintain, with financially sound and reputable insurance
companies (a) insurance in such amounts (with no greater risk retention) and
against such risks as are customarily maintained by companies of established
repute engaged in the same or similar businesses operating in the same or
similar locations and (b) all insurance required to be maintained pursuant to
the Security Documents. The Company will furnish to the Lenders, upon request of
any

<PAGE>

                                                                              98

Agent, information in reasonable detail as to the insurance so maintained.

            SECTION 5.08. Casualty and Condemnation. The Company (a) will
furnish to the Agents and the Lenders prompt written notice of any casualty or
other insured damage to any material portion of any Collateral or the
commencement of any action or proceeding for the taking of any material portion
of the Collateral or any material interest therein under power of eminent domain
or by condemnation or similar proceeding and (b) will ensure that the Net
Proceeds of any such event (whether in the form of insurance proceeds,
condemnation awards or otherwise) are collected and applied in accordance with
the applicable provisions of the Loan Documents.

            SECTION 5.09. Books and Records; Inspection and Audit Rights. (a)
The Company will, and will cause each of its Subsidiaries to, keep proper books
of record and account in which full, true and correct entries in all material
respects are made of all dealings and transactions in relation to its business
and activities. The Company will, and will cause each of its Subsidiaries to,
permit any representatives designated by any Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such
reasonable times during regular business hours and as often as reasonably
requested; provided that representatives of the Company will have the
opportunity to be present at any meeting with its independent accountants.

            (b) The Company will, and will cause each of its Subsidiaries to,
permit any representatives designated by the Agents (including any consultants,
accountants, lawyers and appraisers retained by the Agents) to conduct
evaluations and appraisals of the Company's computation of the Collateral Value
Amount and the assets included in the Collateral Value Amount, all at such
reasonable times during regular business hours and as often as reasonably
requested. The Company shall pay the reasonable fees and expenses of the Agents
and any representatives retained by the Agents to conduct any such evaluation or
appraisal; provided that the Company will not be required to pay such fees and
expenses in respect of more than one such evaluation or appraisal during any
calendar year unless an Event of Default has occurred and is continuing.

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                                                                              99

            SECTION 5.10. Compliance with Laws. The Company will, and will cause
each of its Subsidiaries to, comply with all laws, rules, regulations and orders
of any Governmental Authority applicable to it or its property, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

            SECTION 5.11. Use of Proceeds and Letters of Credit. The proceeds of
the B Term Loans and the initial Revolving Loans, together with the proceeds of
the New Senior Notes, will be used (a) to fund the Tender Escrow in the amount
of $200,000,000 and the Polk Escrow in an amount equal to the aggregate
principal amount of outstanding Polk County IRBs as of the Effective Date that
are not owned by a Loan Party, (b) to repay all amounts owed by the Company
under the Existing Credit Agreements and (c) to pay fees and expenses incurred
in connection with the Transactions. The proceeds of other Revolving Loans and
Swingline Loans will be used for general corporate purposes, including working
capital. No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations U and X. Letters of Credit will be issued
for general corporate purposes.

            SECTION 5.12. Additional Subsidiaries. If any additional Subsidiary
is formed or acquired after the Effective Date (or if any Subsidiary that was an
Excluded Subsidiary ceases to be an Excluded Subsidiary), the Company will,
within three Business Days after such Subsidiary is formed or acquired (or after
such Subsidiary ceases to be an Excluded Subsidiary), notify the Agents and the
Lenders thereof and cause the Collateral and Guarantee Requirement to be
satisfied with respect to such Subsidiary (if it is a Subsidiary Loan Party) and
with respect to any Equity Interest in or Indebtedness of such Subsidiary owned
by or on behalf of any Loan Party.

            SECTION 5.13. Further Assurances. The Company will, and will cause
each Subsidiary Loan Party to, execute any and all further documents, financing
statements, agreements and instruments, and take all such further actions
(including the filing and recording of financing statements, fixture filings,
mortgages, deeds of trust and other documents), which may be required under any
applicable law, or which any Agent or the Required Lenders may reasonably
request, to cause the Collateral and Guarantee Requirement to be and remain

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                                                                             100

satisfied, all at the expense of the Loan Parties. The Company also agrees to
provide to the Agents, from time to time upon request of any Agent, evidence
reasonably satisfactory to the Agents as to the perfection and priority of the
Liens created or intended to be created by the Security Documents.

            SECTION 5.14. 6.625% Notes Tender Offer. Within 45 days after the
Effective Date, the Company will commence the 6.625% Notes Tender Offer on terms
and conditions reasonably satisfactory to the Agents and will thereafter conduct
and pursue the 6.625% Notes Tender Offer in good faith and will purchase and
cancel all 6.625% Notes validly tendered and not withdrawn.

            SECTION 5.15. Refinancing of Polk County IRBs; Polk Escrow. The
Company will exercise good faith efforts to refinance or replace the Polk County
IRBs by the issuance of Indebtedness that complies with clause (iii) of Section
6.01(a) in an equivalent principal amount. If such refinancing is consummated,
all proceeds of such refinancing received in respect of any Polk County IRBs
beneficially owned by the Company or any of its Subsidiaries shall be deposited
in the Polk Escrow. If such refinancing is not consummated prior to January 31,
2002, or if the Polk County IRBs are accelerated and become due prior to January
31, 2002, then the Company shall redeem or repay the Polk County IRBs, and any
funds in the Polk Escrow will be available for such purpose. In addition, prior
to the refinancing, redemption or repayment of the Polk County IRBs, the Company
may purchase Polk County IRBs from holders thereof (other than Loan Parties) at
prices not exceeding the outstanding principal amount of the Polk County IRBs so
purchased plus accrued and unpaid interest thereon, and any funds in the Polk
Escrow will be available for such purpose (up to the outstanding principal
amount of the Polk County IRBs so purchased); provided that any Polk County IRBs
so purchased shall be pledged as required by clause (d) of the Collateral and
Guarantee Requirement. If funds in the Polk Escrow are applied to redeem, repay
or purchase all the Polk County IRBs, then the Company will continue to exercise
good faith efforts to replace the Polk County IRBs (by the issuance of an
equivalent amount of Indebtedness as provided in the first sentence of this
Section) for a period of six months thereafter.

            SECTION 5.16. Excluded Subsidiaries. (a) The Company may from time
to time designate, by notice to the Agents, (i) any Domestic Subsidiary (or any
Person that

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is being formed or acquired and, upon formation or acquisition thereof, would
become a Domestic Subsidiary), other than a Phosphate Subsidiary, to be a
Domestic Excluded Subsidiary, (ii) any Foreign Subsidiary (or any Person that is
being formed or acquired and, upon formation or acquisition thereof, would
become a Foreign Subsidiary), other than a Phosphate Subsidiary, to be a Foreign
Excluded Subsidiary, (iii) any Domestic Phosphate Subsidiary (or any Person that
is being formed or acquired and, upon formation or acquisition thereof, would
become a Domestic Phosphate Subsidiary) to be a Domestic Phosphate Excluded
Subsidiary, or (iv) any Foreign Phosphate Subsidiary (or any Person that is
being formed or acquired and, upon formation or acquisition thereof, would
become a Foreign Phosphate Subsidiary) to be a Foreign Phosphate Excluded
Subsidiary; provided that (A) the Company may not designate as an Excluded
Subsidiary, (1) any Borrowing Subsidiary, (2) any Subsidiary that is a
Subsidiary Loan Party as of the Effective Date, (3) any Domestic Subsidiary
that, prior to such designation, was a Subsidiary Loan Party and shall have
become a party to any of the Guarantee Agreement or the Security Documents, (4)
any Domestic Subsidiary that has any subsidiaries unless all such subsidiaries
are designated as Domestic Excluded Subsidiaries or Foreign Excluded
Subsidiaries, as applicable, (5) any Domestic Phosphate Subsidiary that has any
subsidiaries unless all such subsidiaries are designated as Domestic Phosphate
Excluded Subsidiaries or Foreign Phosphate Excluded Subsidiaries, as applicable,
or (6) any Domestic Subsidiary that owns, directly or indirectly, any Equity
Interest in any Phosphate Subsidiary, (B) at the time of such designation and
after giving effect thereto (and after giving effect to the formation or
acquisition of any applicable Subsidiary that is being formed or acquired), the
representations set forth in Section 3.18 shall be true and correct and (C) the
Company shall certify in any such notice designating an Excluded Subsidiary that
the conditions set forth in clauses (A) and (B) above are satisfied.

            (b) The Company may from time to time designate, by notice to the
Agents, that any Excluded Subsidiary shall cease to be an Excluded Subsidiary;
provided that a Subsidiary of an Excluded Subsidiary may not be designated to
cease to be an Excluded Subsidiary. In the event of any such designation, the
Company will comply with Section 5.12.

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                                                                             102

                                   ARTICLE VI

                               Negative Covenants

            Until the Commitments have expired or terminated and the principal
of and interest on each Loan and all fees payable hereunder have been paid in
full and all Letters of Credit have expired or terminated and all LC
Disbursements shall have been reimbursed, the Company covenants and agrees with
the Lenders that:

            SECTION 6.01. Indebtedness; Certain Equity Securities. (a) The
Company will not, and will not permit any Subsidiary to, create, incur, assume
or permit to exist any Indebtedness, except:

            (i) Indebtedness created under the Loan Documents (including
      Incremental Term Loans and Incremental Revolving Loans incurred in
      compliance with Section 2.20);

            (ii) the New Senior Notes and Guarantees thereof by Subsidiary Loan
      Parties;

            (iii) Indebtedness existing on the date hereof and set forth in
      Schedule 6.01 and extensions, renewals, replacements and refinancings of
      any such Indebtedness (including pursuant to refinancings with the
      proceeds of Permitted Debt Securities) that do not increase the
      outstanding principal amount (including, in the case of the Polk County
      IRBs, the principal amount thereof owned by the Loan Parties) thereof or
      result in an earlier maturity date (unless such earlier maturity date is
      after May 31, 2007) or decreased weighted average life thereof (unless no
      principal payments are required prior to May 31, 2007);

            (iv) Indebtedness of the Company to any Subsidiary and of any
      Subsidiary to the Company or any other Subsidiary; provided that
      Indebtedness of any Subsidiary that is not a Loan Party owing to the
      Company or any Subsidiary Loan Party and Indebtedness of or to any
      Phosphates Subsidiary shall be subject to Section 6.04;

            (v) Guarantees by the Company of Indebtedness of any Subsidiary and
      by any Subsidiary of Indebtedness of the Company or any other Subsidiary;
      provided that Guarantees by the Company or any Subsidiary Loan Party of
      Indebtedness of any Subsidiary that is

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                                                                             103

      not a Subsidiary Loan Party and Guarantees by any Phosphates Subsidiary
      shall be subject to Section 6.04;

            (vi) Indebtedness of the Company or any Subsidiary incurred to
      finance the acquisition, construction or improvement of any fixed or
      capital assets, including Capital Lease Obligations and any Indebtedness
      assumed in connection with the acquisition of any such assets or secured
      by a Lien on any such assets prior to the acquisition thereof, and
      extensions, renewals and replacements of any such Indebtedness that do not
      increase the outstanding principal amount thereof or result in an earlier
      maturity date or decreased weighted average life thereof; provided that
      (A) such Indebtedness is incurred prior to or within 90 days after such
      acquisition or the completion of such construction or improvement and (B)
      the aggregate principal amount of Indebtedness permitted by this clause
      (vi) and clause (vii) below shall not exceed $40,000,000 at any time
      outstanding;

            (vii) Indebtedness of any Person that becomes a Subsidiary after the
      date hereof; provided that (A) such Indebtedness exists at the time such
      Person becomes a Subsidiary and is not created in contemplation of or in
      connection with such Person becoming a Subsidiary and (B) the aggregate
      principal amount of Indebtedness permitted by this clause (vii) and clause
      (vi) above shall be subject to the limitation set forth in clause (vi)
      above;

            (viii) Indebtedness of the Company in respect of Permitted Debt
      Securities (other than Permitted Debt Securities that are permitted under
      clause (iii) above); provided that the issuance thereof shall constitute a
      Prepayment Event;

            (ix) Indebtedness of the Company or any of its Subsidiaries arising
      from the honoring by a bank or other financial institution of a check,
      draft or similar instrument inadvertently (except in the case of daylight
      overdrafts) drawn against insufficient funds in the ordinary course of
      business; provided that such Indebtedness is repaid within two Business
      Days after being incurred;

            (x) unsecured Indebtedness of the Company or any of its Subsidiaries
      as an account party in respect of letters of credit issued for the account
      of the

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                                                                             104

      Company or such Subsidiary, as the case may be, that either constitute
      trade letters of credit or are obtained in order to provide security for
      workers' compensation claims, payment obligations in connection with self-
      insurance or similar requirements in the ordinary course of business;
      provided that (A) such Indebtedness is not Guaranteed by any of the
      Company or its Subsidiaries and (B) any Indebtedness resulting from a
      drawing under any such letter of credit is repaid within two Business Days
      after such drawing;

            (xi) obligations of the Company or any of its Subsidiaries in
      respect of performance bonds and completion, guarantee, surety and similar
      bonds, in each case obtained in the ordinary course of business to support
      statutory and contractual obligations (other than Indebtedness) arising in
      the ordinary course of business;

            (xii) industrial revenue bonds or similar tax-exempt Indebtedness of
      the Company or any of its Subsidiaries incurred to finance the
      construction or improvement of operations of the Company and its
      Subsidiaries in an aggregate principal amount not exceeding $50,000,000 at
      any time outstanding;

            (xiii) Indebtedness of Foreign Subsidiaries (other than Foreign Loan
      Parties) in an aggregate principal amount not exceeding $20,000,000 at any
      time outstanding; and

            (xiv) other Indebtedness in an aggregate principal amount not
      exceeding $35,000,000 at any time outstanding.

            (b) The Company will not, nor will it permit any Subsidiary to,
issue any preferred stock or other preferred Equity Interests, except that the
Company may issue preferred stock that does not constitute a Disqualified Equity
Interest.

            SECTION 6.02. Liens. (a) The Company will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable) or rights in respect of any
thereof, except:

            (i) Liens created under the Loan Documents (including to secure any
      Indebtedness incurred to

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                                                                             105

      refinance the Polk County IRBs, to the extent such Indebtedness is
      required by its terms to be so secured, but in any event on terms no more
      favorable than those upon which the Polk County IRBs are secured on the
      Effective Date);

            (ii) Permitted Encumbrances;

            (iii) any Lien on any property or asset of the Company or any
      Subsidiary existing on the date hereof and set forth in Schedule 6.02;
      provided that (A) such Lien shall not apply to any other property or asset
      of the Company or any Subsidiary and (B) such Lien shall secure only those
      obligations which it secures on the date hereof and extensions, renewals
      and replacements thereof that do not increase the outstanding principal
      amount thereof;

            (iv) any Lien existing on any property or asset prior to the
      acquisition thereof by the Company or any Subsidiary or existing on any
      property or asset of any Person that becomes a Subsidiary after the date
      hereof prior to the time such Person becomes a Subsidiary; provided that
      (A) such Lien is not created in contemplation of or in connection with
      such acquisition or such Person becoming a Subsidiary , as the case may
      be, (B) such Lien shall not apply to any other property or assets of the
      Company or any Subsidiary and (C) such Lien shall secure only those
      obligations which it secures on the date of such acquisition or the date
      such Person becomes a Subsidiary, as the case may be, and extensions,
      renewals and replacements thereof that do not increase the outstanding
      principal amount thereof;

            (v) Liens on fixed or capital assets acquired, constructed or
      improved by the Company or any Subsidiary (other than fixed or capital
      assets that are part of a Mortgaged Property); provided that (A) such
      Liens secure Indebtedness permitted by clause (vi) of Section 6.01(a), (B)
      such Liens and the Indebtedness secured thereby are incurred prior to or
      within 90 days after such acquisition or the completion of such
      construction or improvement, (C) the Indebtedness secured thereby does not
      exceed the cost of acquiring, constructing or improving such fixed or
      capital assets and (D) such security interests shall not apply to any
      other property or assets of the Company or any Subsidiary;

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                                                                             106

            (vi) operating leases or subleases (other than with respect to
      Collateral) entered into in the ordinary course of business by the Company
      or any Subsidiary, as lessor thereunder, that do not interfere in any
      material respect with the business of the Company and the Subsidiaries;

            (vii) customary restrictions on transfers of assets contained in
      agreements related to the sale by the Company or the Subsidiaries of such
      assets pending their sale, provided that such restrictions apply only to
      the assets to be sold and such sale is permitted hereunder;

            (viii) Liens (other than with respect to Collateral) in favor of
      Governmental Authorities to secure progress or advance payments;

            (ix) Liens securing industrial revenue or pollution control bonds
      constituting Indebtedness permitted by clause (xii) of Section 6.01(a);
      provided that such Liens shall not apply to any assets other than those
      financed with the proceeds of such Indebtedness;

            (x) Liens on property of Foreign Subsidiaries (other than Foreign
      Loan Parties) securing Indebtedness of Foreign Subsidiaries permitted by
      clause (xiii) of Section 6.01(a); and

            (xi) Liens on property (other than Collateral) securing Indebtedness
      permitted by clause (xiv) of Section 6.01(a).

            (b) The Company will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien or any Debt (as defined in the
1997 Indenture and the 1998 Indenture or in the New Senior Notes Indentures, as
applicable) secured by a Lien (other than Indebtedness permitted by clause (xiv)
of Section 6.01(a)), or permit any Sale and Lease-Back Transaction (as defined
in the 1997 Indenture and the 1998 Indenture or in the New Senior Notes
Indentures, as applicable) to be consummated, in each case if the effect thereof
would be to reduce the Lien Basket Amount.

            SECTION 6.03. Fundamental Changes. (a) The Company will not, nor
will it permit any Subsidiary to, convert or merge into or consolidate with any
other Person, or permit any other Person to merge into or consolidate with it,
or liquidate or dissolve, except

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                                                                             107

that, if at the time thereof and immediately after giving effect thereto no
Default shall have occurred and be continuing (i) any Person may merge into the
Company in a transaction in which the Company is the surviving corporation, (ii)
any Person (other than a Phosphate Subsidiary) may convert or merge into any
Subsidiary (other than a Phosphate Subsidiary) in a transaction in which the
surviving entity is a Subsidiary and (if any party to such conversion or merger
is a Subsidiary Loan Party) is a Subsidiary Loan Party, (iii) PLP may merge with
a Domestic Subsidiary in a transaction in which the surviving entity is a
Subsidiary Loan Party that is wholly-owned, directly or indirectly, by the
Company and the only consideration therefor consists of shares of capital stock
of the Company and (iv) any Subsidiary (other than a Borrowing Subsidiary) may
liquidate or dissolve if the Company determines in good faith that such
liquidation or dissolution is in the best interests of the Company and is not
materially disadvantageous to the Lenders; provided that any such merger
involving a Person that is not a wholly owned Subsidiary immediately prior to
such merger shall not be permitted unless also permitted by Section 6.04.

            (b) The Company will not, and will not permit any of its
Subsidiaries to, engage to any material extent in any business other than
businesses of the type conducted by the Company and its Subsidiaries on the date
of execution of this Agreement and businesses reasonably similar, ancillary or
related thereto.

            SECTION 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions. The Company will not, and will not permit any of its Subsidiaries
to, purchase, hold or acquire (including pursuant to any merger with any Person
that was not a wholly owned Subsidiary prior to such merger) any Equity
Interests in or evidences of indebtedness or other securities (including any
option, warrant or other right to acquire any of the foregoing) of, make or
permit to exist any loans or advances to, Guarantee any obligations of, or make
or permit to exist any investment or any other interest in, any other Person, or
make any Acquisition, except:

            (a) Permitted Investments;

            (b) investments existing on the date hereof and set forth on
      Schedule 6.04;

            (c) investments by the Company and its Subsidiaries in Equity
      Interests in their respective

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                                                                             108

      Subsidiaries; provided that (i) any such Equity Interests held by a Loan
      Party (other than Equity Interests of an Excluded Subsidiary) shall be
      pledged pursuant to the Pledge Agreement (subject to the limitations
      applicable to voting Equity Interests of a Foreign Subsidiary referred to
      in clause (b) of the definition of "Collateral and Guarantee
      Requirement"), (ii) the aggregate amount of investments by Loan Partes in,
      and loans and advances by Loan Parties to, Subsidiaries that are not Loan
      Parties (excluding (A) all such investments, loans and advances existing
      on the Effective Date , and extensions, refinancings, restatements or
      modifications thereof that do not increase the aggregate amount thereof,
      (B) loans and advances made in cash that are evidenced by promissory notes
      pledged pursuant to the Pledge Agreement and (C) cash investments in
      Equity Interests in Subsidiaries that are not Loan Parties made promptly
      following receipt of, and in an aggregate amount not exceeding the amount
      of, a cash distribution received by a Loan Party in respect of any Equity
      Interests in a Subsidiary that is not a Loan Party) shall not exceed
      $10,000,000 at any time outstanding (it being understood that compliance
      with the limitation set forth in this clause shall be determined based on
      the amount of cash or fair market value of other assets invested as of the
      date of investment, without giving effect to any fluctuations in the value
      of such investment not attributable to dividends, distributions,
      repayments or redemptions) and (iii) all investments that are made on or
      after the Effective Date in any Phosphates Subsidiary by the Company or
      any Subsidiary that is not a Phosphates Subsidiary must be made as loans;

            (d) loans or advances made by the Company to any Subsidiary and made
      by any Subsidiary to the Company or any other Subsidiary; provided that
      (i) any such loans and advances made by a Loan Party shall be evidenced by
      a promissory note pledged pursuant to the Pledge Agreement and (ii) the
      amount of such loans and advances made by Loan Parties to Subsidiaries
      that are not Loan Parties shall be subject to the limitation set forth in
      clause (c) above;

            (e) Guarantees constituting Indebtedness permitted by Section 6.01;
      provided that (i) a Subsidiary that is not a Loan Party shall not

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                                                                             109

      Guarantee any Indebtedness or other obligations of any Loan Party, (ii) a
      Phosphate Subsidiary shall not Guarantee any Indebtedness or other
      obligations other than obligations of another Phosphate Subsidiary
      (subject to clause (i) above) and other than pursuant to the Guarantee
      Agreement or (subject to clause (i) above) the New Senior Notes Indentures
      and (iii) a Subsidiary Loan Party shall not Guarantee any Indebtedness or
      other obligations of a Subsidiary that is not a Loan Party (but the
      Company may Guarantee any Indebtedness of any Subsidiary);

            (f) investments received in connection with the bankruptcy or
      reorganization of, or settlement of delinquent accounts and disputes with,
      customers and suppliers;

            (g) Permitted Acquisitions; provided that (i) the consideration
      therefor shall consist solely of shares of capital stock of the Company,
      Monetary Acquisition Consideration or a combination thereof, (ii) in the
      case of any Permitted Acquisition consummated on or prior to May 31, 2003,
      the Monetary Acquisition Consideration in respect of such Permitted
      Acquisition shall not exceed $50,000,000 and, after giving effect thereto,
      the sum of all Monetary Acquisition Consideration in respect of all
      Permitted Acquisitions shall not exceed (A) $100,000,000 during the period
      from the Effective Date through May 31, 2002, or (B) $100,000,000 during
      the period after May 31, 2002, through May 31, 2003, and (iii) after
      giving effect thereto, the Monetary Acquisition Consideration shall be
      permitted by Section 6.12;

            (h) investments in joint ventures not exceeding $25,000,000 in the
      aggregate for all such investments made on or after the Effective Date;
      provided that (i) such joint ventures shall not have any Indebtedness for
      borrowed money (including Guarantees in respect thereof) at any time on or
      after the date that an investment is made therein (other than Indebtedness
      owing to the equity holders of such joint ventures), (ii) the
      documentation governing any such joint venture does not contain a
      restriction on distributions to the Company or any Subsidiary and (iii)
      each such joint venture is engaged only in a business in which the Company
      and its Subsidiaries would be permitted to engage as provided in Section
      6.03(b);

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                                                                             110

            (i) investments received as non-cash consideration in respect of
      sales, transfers or dispositions permitted by Section 6.05;

            (j) accounts receivable arising in the ordinary course of business
      of the Company and the Subsidiaries;

            (k) Hedging Agreements permitted under Section 6.07;

            (l) loans and advances to officers and employees of the Company or
      its Subsidiaries in accordance with prior practices;

            (m) Permitted PLP Purchases;

            (n) Guarantees by the Company of Hedging Agreements and other
      obligations incurred by any Subsidiary in the ordinary course of business;

            (o) Guarantees by any Foreign Subsidiary that is not a Loan Party of
      any obligations of any of its Subsidiaries;

            (p) an acquisition of the facilities that are the subject of the
      Argus Lease in connection with any termination of the Argus Lease as
      contemplated by clause (b)(iii) of the definition of the term "Net
      Proceeds";

            (q) any purchase, repurchase or acquisition of Indebtedness
      expressly permitted by Section 6.08(b); provided that any Indebtedness so
      purchased, repurchased or acquired is promptly retired and cancelled
      (except that Polk County IRBs that are purchased as provided in clause
      (vii) of Section 6.08(b) shall remain outstanding and shall be pledged as
      required by the Collateral and Guarantee Requirement); and

            (r) other investments made after the Effective Date in an aggregate
      amount not to exceed $10,000,000.

            SECTION 6.05. Asset Sales. The Company will not, and will not permit
any of its Subsidiaries to, sell, transfer, lease or otherwise dispose of any
asset, including any Equity Interest owned by it, nor will the

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                                                                             111

Company permit any of it Subsidiaries to issue any additional Equity Interest in
such Subsidiary, except:

            (a) sales of inventory, raw materials, supplies and used or surplus
      equipment, in each case in the ordinary course of business;

            (b) sales, transfers and dispositions to the Company or a Subsidiary
      (other than to a Phosphates Subsidiary); provided that any such sales,
      transfers or dispositions involving a Subsidiary that is not a Loan Party
      shall be made in compliance with Section 6.09;

            (c) sales, transfers and other dispositions of assets (other than
      (i) any Polk County IRBs, (ii) any Equity Interests in a Subsidiary or
      (iii) any Mortgaged Property, it being understood that the demolition,
      removal or modification of improvements at a Mortgaged Property shall not
      be prohibited by this clause) that are not permitted by any other clause
      of this Section; provided that the aggregate fair market value of all
      assets sold, transferred or otherwise disposed of in reliance upon this
      clause (c) shall not exceed $35,000,000 during any fiscal year of the
      Company;

            (d) the Salt Disposition and any Chemicals Disposition;

            (e) Permitted Investments for cash consideration;

            (f) the leasing, subleasing or licensing of real or personal
      property (including intellectual property but excluding Collateral) in the
      ordinary course of business; and

            (g) transfers and dispositions in the ordinary course of business of
      inventory or raw materials (or a combination thereof) in exchange for
      consideration that constitutes inventory or raw materials (or a
      combination thereof);

provided that all sales, transfers, leases and other dispositions permitted
hereby (other than those permitted by clause (b) above) shall be made for fair
value and (other than those permitted by clauses (b) and (g) above and other
than any sale of the Searles Facility) not less than 85% of the consideration
therefor (excluding, for this purpose, any such consideration in the form of the

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                                                                             112

assumption by the purchaser of the outstanding principal amount of any
Indebtedness of the Company or any Subsidiary related to the assets that are so
sold, transferred or otherwise disposed of) shall consist of cash consideration.

            SECTION 6.06. Sale and Leaseback Transactions. The Company will not,
and will not permit any of its Subsidiaries to, enter into any arrangement,
directly or indirectly, whereby it shall sell or transfer any property, real or
personal, used or useful in its business, whether now owned or hereinafter
acquired, and thereafter rent or lease such property or other property that it
intends to use for substantially the same purpose or purposes as the property
sold or transferred, except for any such sale of any fixed or capital assets
that is made for cash consideration in an amount not less than the cost of such
fixed or capital asset and is consummated within 90 days after the Company or
such Subsidiary acquires or completes the construction of such fixed or capital
asset.

            SECTION 6.07. Hedging Agreements. The Company will not, and will not
permit any of its Subsidiaries to, enter into any Hedging Agreement, other than
Hedging Agreements entered into in the ordinary course of business to hedge or
mitigate risks to which the Company or any Subsidiary is exposed in the conduct
of its business or the management of its liabilities.

            SECTION 6.08. Restricted Payments; Certain Payments of Indebtedness;
Synthetic Purchase Agreements. (a) The Company will not, nor will it permit any
Subsidiary to, declare or make, or agree to pay or make, directly or indirectly,
any Restricted Payment, or incur any obligation (contingent or otherwise) to do
so, except (i) the Company may declare and pay dividends with respect to its
capital stock payable solely in additional shares of its common stock, (ii)
Subsidiaries may declare and pay dividends ratably with respect to their capital
stock, (iii) the Company may make Restricted Payments, not exceeding $5,000,000
during any fiscal year, pursuant to and in accordance with stock option plans or
other benefit plans for management or employees of the Company and its
Subsidiaries, (iv) PLP may make distributions of distributable cash as required
under the PLP Partnership Agreement, (v) repurchases of capital stock of the
Company deemed to occur upon the exercise of stock options if such capital stock
represents a portion of the exercise price thereof and repurchase of capital
stock deemed to occur upon the withholding of a portion of the

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                                                                             113

capital stock issued, granted or awarded to an employee or director to pay for
the taxes payable by such employee or director upon such issuance, grant or
award, (vi) Permitted PLP Purchases, and (vii) if at the time declared no
Default has occurred and is continuing, the Company may declare and pay
dividends with respect to its common stock in an amount that will not result in
the cumulative amount of all such dividends permitted by this clause (vii) paid
after the Effective Date (after giving effect to dividends declared and not yet
paid) exceeding the sum of $20,000,000 plus 25% of the sum of Consolidated Net
Income for each fiscal year (if any) ended on or after December 31, 2001, and
prior to the date of declaration of such dividend for which financial statements
are available.

            (b) The Company will not, nor will it permit any Subsidiary to, make
or agree to pay or make, directly or indirectly, any voluntary or optional
payment or other distribution (whether in cash, securities or other property) of
or in respect of principal of or interest on any Indebtedness, or any voluntary
or optional payment or other distribution (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancelation or termination of any
Indebtedness, except:

            (i) payment of Indebtedness created under this Agreement;

            (ii) refinancings of Indebtedness to the extent permitted by Section
      6.01;

            (iii) payment of secured Indebtedness that becomes due as a result
      of the voluntary sale or transfer of the property or assets securing such
      Indebtedness;

            (iv) payments made to purchase 6.625% Notes pursuant to the 6.625%
      Notes Tender Offer;

            (v) after the Salt Disposition is consummated, payments made to
      prepay, repurchase or redeem the 7.4% Notes or other Indebtedness of the
      Company referred to in the definition of the term "Salt Disposition
      Escrow"; provided that payments shall be permitted under this clause (v)
      only to the extent of funds available therefor on deposit in the Salt
      Disposition Escrow;

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                                                                             114

            (vi) if the Polk County IRBs are refinanced prior to being repaid,
      payments made to prepay, repurchase or redeem other Indebtedness of the
      Company referred to in the definition of the term "Polk Escrow"; provided
      that payments shall be permitted under this clause (vi) only to the extent
      of funds available therefor on deposit in the Polk Escrow;

            (vii) payments made to purchase Polk County IRBs prior to the
      refinancing, redemption or repayment thereof, as contemplated by and in
      accordance with Section 5.15;

            (viii) payments made to terminate the Argus Lease in the manner
      contemplated in the definition of the term "Net Proceeds";

            (ix) prepayment of Indebtedness outstanding under the Existing
      Credit Agreements on the Effective Date; and

            (x) payments of Indebtedness owing to a Loan Party.

            (c) The Company will not, nor will it permit any Subsidiary to,
enter into or be party to, or make any payment under, any Synthetic Purchase
Agreement, except (i) the Existing Synthetic Purchase Agreement and payments
thereunder and (ii) any Synthetic Purchase Agreement entered into by the Company
with respect to Indebtedness of the Company (other than Loans) and payments
thereunder provided that the optional prepayment or redemption of such
Indebtedness would be permitted under paragraph (b) of this Section at the time
such Synthetic Purchase Agreement is entered into (other than pursuant to a
refinancing). The Company shall promptly deliver to the Agents a copy of any
Synthetic Purchase Agreement to which it becomes party.

            SECTION 6.09. Transactions with Affiliates. The Company will not,
nor will it permit any Subsidiary to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) transactions that are at prices and on terms and
conditions not less favorable to the Company or such Subsidiary than could be
obtained on an arm's-length basis from unrelated third parties, (b) transactions
between or among the Company and the Subsidiary Loan

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                                                                             115

Parties not involving any other Affiliate, (c) any Restricted Payment permitted
by Section 6.08 and (d) payment of customary fees to members of the board of
directors of the Company and its Subsidiaries.

            SECTION 6.10. Restrictive Agreements. The Company will not, nor will
it permit any Subsidiary to, directly or indirectly, enter into, incur or permit
to exist any agreement or other arrangement that prohibits, restricts or imposes
any condition upon (a) the ability of the Company or any Subsidiary to create,
incur or permit to exist any Lien upon any of its property or assets, or (b) the
ability of any Subsidiary to pay dividends or other distributions with respect
to any of its Equity Interests or to make or repay loans or advances to the
Company or any other Subsidiary or to Guarantee Indebtedness of the Company or
any other Subsidiary; provided that (i) the foregoing shall not apply to
restrictions and conditions imposed by any laws, rules or regulations of any
Governmental Authority or by any Loan Document, (ii) the foregoing shall not
apply to restrictions and conditions existing on the date hereof identified on
Schedule 6.10 (but shall apply to any amendment or modification expanding the
scope of any such restriction or condition in any material respect), (iii) the
foregoing shall not apply to customary restrictions and conditions contained in
agreements relating to the sale of a Subsidiary pending such sale, provided such
restrictions and conditions apply only to the Subsidiary that is to be sold and
such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not
apply to restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or

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                                                                             116

conditions apply only to the property or assets securing such Indebtedness, (v)
clause (a) of the foregoing shall not apply to customary provisions in licenses,
governmental permits, leases and other contracts restricting the assignment
thereof, (vi) clause (a) of the foregoing shall not apply to any restriction
under an agreement governing Indebtedness of a Foreign Subsidiary (other than
Foreign Loan Parties) incurred in compliance with Section 6.01 if such
restriction applies only to assets of such Foreign Subsidiary, (vii) clause (a)
of the foregoing shall not apply to customary provisions in joint venture
agreements relating solely to the respective joint venture or the Equity
Interests therein, (viii) the foregoing shall not apply to any such restrictions
or conditions imposed by the terms of any Indebtedness of the Company for
borrowed money that the Company incurs after the Effective Date in compliance
with this Agreement if such restrictions or conditions are no less favorable to
the Company and the Lenders than those contained in the New Senior Notes
Indentures, (ix) clause (a) of the foregoing shall not apply to any restrictions
imposed by the terms of any Indebtedness incurred to refinance the Polk County
IRBs if such restrictions, taken as a whole, are no less favorable to the
Company and the Lenders than those contained in the agreements in effect on the
Effective Date relating to the Polk County IRBs and (x) the foregoing shall not
apply to any such restrictions and conditions contained in any agreements
existing at the time of (and not created in contemplation of) the acquisition of
any Person or assets (including agreements governing Indebtedness permitted
pursuant to clause (vii) of Section 6.01(a)), provided that such restrictions
and conditions apply only to the Person or assets so acquired.

            SECTION 6.11. Amendment of Material Documents. The Company will not,
nor will it permit any Subsidiary to, amend, modify or waive any of its rights
under (a) its certificate of incorporation, by-laws or other organizational
documents (including the PLP Partnership Agreement) in a manner that is
materially adverse to the interests of the Lenders or (b) the New Senior Notes
Indentures or any other indenture, agreement or other instrument evidencing or
governing any Indebtedness identified on Schedule 6.01 in a manner that (taking
all such amendments, modifications and waivers as a whole) is adverse to the
interests of the Lenders.

            SECTION 6.12. Limited Expenditures. The Company will not permit the
aggregate amount of Limited Expenditures made, paid or incurred by the Company
and its Subsidiaries in any fiscal year set forth below to exceed the amount set
forth below opposite such fiscal year; provided that, if the amount of permitted
Limited Expenditures set forth below with respect to any fiscal year (without
giving effect to any increase permitted by this proviso) exceeds the actual
amount of Limited Expenditures made, paid or incurred by the Company and its
Subsidiaries during such fiscal year, then the amount of permitted Limited
Expenditures for the next fiscal year shall be increased by an amount equal to
the lesser of (a) such excess and (b) 25% of the amount of Limited

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                                                                             117

Expenditures permitted hereby for the prior year (without giving effect to any
increase permitted by this proviso):

Fiscal Year Ending                                   Amount
------------------                                   ------

December 31, 2001                                 $300,000,000

December 31, 2002 or thereafter                   $325,000,000

            SECTION 6.13. Interest Expense Coverage Ratio. The Company will not
permit the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest
Expense, in each case for any period of four consecutive fiscal quarters ending
on any date during any period set forth below, to be less than the ratio set
forth below opposite such period:

                Period                                Ratio
                ------                                -----

Effective Date through and                        2.00 to 1.00
including December 31, 2001

January 1, 2002 through and                       2.25 to 1.00
including December 31, 2002

January 1, 2003 and thereafter                    2.50 to 1.00

            SECTION 6.14. Total Leverage Ratio. The Company will not permit the
Leverage Ratio as of the last day of any fiscal quarter ending during any period
set forth below to exceed the ratio set forth opposite such period:

                Period                                Ratio
                ------                                -----

Effective Date through and                        6.25 to 1.00
including December 31, 2001

January 1, 2002 through and                       5.75 to 1.00
including June 30, 2002

July 1, 2002 through and                          5.50 to 1.00
including September 30, 2002

October 1, 2002 through and                       5.25 to 1.00
including December 31, 2002

January 1, 2003 through and                       5.00 to 1.00
including March 31, 2003

April 1, 2003 through and                         4.75 to 1.00
including September 30, 2003

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                                                                             118

                Period                                Ratio
                ------                                -----

October 1, 2003 through and                       4.50 to 1.00
including March 31, 2004

April 1, 2004 through and                         4.25 to 1.00
including September 30, 2004

October 1, 2004 and thereafter                    4.00 to 1.00

            SECTION 6.15. Secured Leverage Ratio. The Company will not permit
the Secured Leverage Ratio as of the last day of any fiscal quarter to exceed
2.0 to 1.0.

            SECTION 6.16. Collateral Coverage Ratio. The Company will not permit
the Collateral Coverage Ratio as of any date to be less than 1.0 to 1.0.

            SECTION 6.17. Fiscal Periods. The Company will cause its fiscal year
to end on December 31 of each year and its fiscal quarters to end on the last
day of each calendar quarter.

                                   ARTICLE VII

                                Events of Default

            If any of the following events ("Events of Default") shall occur:

            (a) any Borrower shall fail to pay any principal of any Loan of such
      Borrower or any reimbursement obligation of such Borrower in respect of
      any LC Disbursement when and as the same shall become due and payable,
      whether at the due date thereof or at a date fixed for prepayment thereof
      or otherwise;

            (b) any Borrower shall fail to pay any interest on any Loan of such
      Borrower or any fee or any other amount (other than an amount referred to
      in clause (a) of this Article) payable by such Borrower under this
      Agreement or any other Loan Document, when and as the same shall become
      due and payable, and such failure shall continue unremedied for a period
      of five Business Days;

            (c) any representation or warranty made or deemed made by or on
      behalf of the Company or any Subsidiary in or in connection with any Loan
      Document or any amendment or modification thereof or

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                                                                             119

      waiver thereunder, or in any report, certificate, financial statement or
      other document furnished pursuant to or in connection with any Loan
      Document or any amendment or modification thereof or waiver thereunder,
      shall prove to have been incorrect in any material respect when made or
      deemed made;

            (d) the Company shall fail to observe or perform any covenant,
      condition or agreement contained in Section 5.02, 5.04 (with respect to
      the existence of any Borrower) or 5.11 or in Article VI;

            (e) any Loan Party shall fail to observe or perform any covenant,
      condition or agreement contained in any Loan Document (other than those
      specified in clause (a), (b) or (d) of this Article), and such failure
      shall continue unremedied for a period of 30 days after notice thereof
      from the Administrative Agent to the Company (which notice will be given
      at the request of any Lender);

            (f) the Company or any Subsidiary shall fail to make any payment
      (whether of principal or interest and regardless of amount) in respect of
      any Material Indebtedness, when and as the same shall become due and
      payable, subject to any applicable grace period;

            (g) any event or condition occurs that (i) results in any Material
      Indebtedness becoming due prior to its scheduled maturity or (ii) enables
      or permits (with or without the giving of notice, the lapse of time or
      both) the holder or holders of any Material Indebtedness or any trustee or
      agent on its or their behalf to cause any Material Indebtedness to become
      due, or to require the prepayment, repurchase, redemption or defeasance
      thereof, prior to its scheduled maturity; provided that (A) this clause
      (g) shall not apply to secured Indebtedness that becomes due as a result
      of the voluntary sale or transfer of the property or assets securing such
      Indebtedness, (B) sub-clause (ii) of this clause (g) shall not apply to
      the Existing Defaults and (C) subclause (i) of this clause (g) shall not
      apply to Indebtedness in respect of the Polk County IRBs prior to January
      31, 2002, if such Indebtedness is fully repaid within 30 days after it
      becomes due;

            (h) subject to the last paragraph of this Article, an involuntary
      proceeding shall be commenced or an involuntary petition shall be filed
      seeking (i) liquidation, reorganization or other

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                                                                             120

      relief in respect of the Company or any Subsidiary or its debts, or of a
      substantial part of its assets, under any Federal, state or foreign
      bankruptcy, insolvency, receivership or similar law now or hereafter in
      effect or (ii) the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for the Company or any
      Subsidiary or for a substantial part of its assets, and, in any such case,
      such proceeding or petition shall continue undismissed for 60 days or an
      order or decree approving or ordering any of the foregoing shall be
      entered;

            (i) subject to the last paragraph of this Article, the Company or
      any Subsidiary shall (i) voluntarily commence any proceeding or file any
      petition seeking liquidation, reorganization or other relief under any
      Federal, state or foreign bankruptcy, insolvency, receivership or similar
      law now or hereafter in effect, (ii) consent to the institution of, or
      fail to contest in a timely and appropriate manner, any proceeding or
      petition described in clause (h) of this Article, (iii) apply for or
      consent to the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for the Company or any
      Subsidiary or for a substantial part of its assets, (iv) file an answer
      admitting the material allegations of a petition filed against it in any
      such proceeding, (v) make a general assignment for the benefit of
      creditors or (vi) take any action for the purpose of effecting any of the
      foregoing;

            (j) subject to the last paragraph of this Article, the Company or
      any Subsidiary shall become unable, admit in writing its inability or fail
      generally to pay its debts as they become due;

            (k) one or more judgments for the payment of money in an aggregate
      amount in excess of $20,000,000 (excluding amounts covered by insurance
      from a credit worthy insurance carrier that is not an Affiliate of the
      Company and has been advised of the claim and has not disclaimed coverage)
      shall be rendered against the Company, any Subsidiary or any combination
      thereof and the same shall remain undischarged for a period of 30
      consecutive days during which execution shall not be effectively stayed,
      or any action shall be legally taken by a judgment creditor to attach or
      levy upon any assets

<PAGE>

                                                                             121

      of the Company or any Subsidiary to enforce any such judgment;

            (l) an ERISA Event shall have occurred that, in the opinion of the
      Required Lenders, when taken together with all other ERISA Events that
      have occurred, could reasonably be expected to result in a Material
      Adverse Effect;

            (m) any Lien purported to be created under any Security Document
      shall cease to be, or shall be asserted by any Loan Party not to be, a
      valid and perfected Lien on any material portion of the Collateral, with
      the priority required by the applicable Security Document, except (i) as a
      result of the sale or other disposition of the applicable Collateral in a
      transaction permitted under the Loan Documents or (ii) as a result of the
      Collateral Agent's failure to maintain possession of any stock
      certificates, promissory notes or other instruments delivered to it under
      the Pledge Agreement; or

            (n) a Change in Control shall occur;

then, and in every such event (other than an event with respect to any Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Company, take either or
both of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may thereafter
be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Borrowers accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by each Borrower; and in case of any
event with respect to the Company described in clause (h) or (i) of this
Article, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Borrowers accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other
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                                                                             122

notice of any kind, all of which are hereby waived by each Borrower.

            Solely for purposes of determining whether an Event of Default has
occurred under clause (h), (i) or (j) of this Article, any reference in any such
clause to any Subsidiary shall be deemed not to include any Subsidiary affected
by any event or circumstance referred to in any such clause that (i) is not a
Subsidiary Loan Party, (ii) does not have consolidated assets (determined on a
consolidated basis in accordance with GAAP) representing more than 2% of the
consolidated assets of the Company (determined on a consolidated basis in
accordance with GAAP) and (iii) did not, for the most recent period of four
consecutive fiscal quarters of the Company, have consolidated revenues
(determined on a consolidated basis in accordance with GAAP) representing more
than 2% of the consolidated revenues of the Company (determined on a
consolidated basis in accordance with GAAP); provided that if it is necessary to
exclude more than one Subsidiary from clause (h), (i) or (j) of this Article in
order to avoid an Event of Default thereunder, all Subsidiaries affected by any
event or circumstance referred to in any of such clauses shall be treated as a
single consolidated Subsidiary for purposes of determining whether the
conditions specified in clauses (ii) and (iii) of this paragraph are satisfied.

                                  ARTICLE VIII

                                   The Agents

            Each of the Lenders and the Issuing Banks hereby irrevocably
appoints the Administrative Agent as its agent and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms of the Loan Documents,
together with such actions and powers as are reasonably incidental thereto.

            The bank serving as the Administrative Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent, and such
bank and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with the Company or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder.

<PAGE>

                                                                             123

            The Administrative Agent shall not have any duties or obligations
except those expressly set forth in the Loan Documents. Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 9.02), and (c) except as
expressly set forth in the Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Company or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 9.02) or in the
absence of its own gross negligence or wilful misconduct. The Administrative
Agent shall not be deemed not to have knowledge of any Default unless and until
written notice thereof is given to the Administrative Agent by the Company or a
Lender, and the Administrative Agent shall not be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with any Loan Document, (ii) the contents of any
certificate, report or other document delivered thereunder or in connection
therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document, (iv) the
validity, enforceability, effectiveness or genuineness of any Loan Document or
any other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere in any Loan Document, other than
to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

            The Administrative Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing believed by it to be
genuine and to have been signed or sent by

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                                                                             124

the proper Person. The Administrative Agent also may rely upon any statement
made to it orally or by telephone and believed by it to be made by the proper
Person, and shall not incur any liability for relying thereon. The
Administrative Agent may consult with legal counsel (who may be counsel for the
Company), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

            The Administrative Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of each Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

            Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders, the Issuing Banks and the Company.
Upon any such resignation, the Required Lenders shall have the right, in
consultation with the Company, to appoint a successor. If no successor shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Banks, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any
such bank. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder. The fees payable by the Company to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Company and such successor. After the
Administrative Agent's resignation hereunder, the provisions of this Article and
Section 9.03 shall

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                                                                             125

continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Administrative
Agent.

            Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
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 the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Document or related agreement or any document furnished hereunder
or thereunder.

            The provisions of this Article applicable to the Administrative
Agent also shall be applicable to the Syndication Agent and the Collateral
Agent, mutatis mutandis. Each of the Lenders and Issuing Banks agrees to the
terms and conditions of the Collateral Sharing Agreement applicable to the
Collateral Agent.

                                   ARTICLE IX

                                  Miscellaneous

            SECTION 9.01. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

            (a) if to any Borrower, to it in the care of the Company at 100
      South Saunders Rd., Suite 300, Lake Forest, Illinois 60045, Attention of
      E. Paul Dunn, Jr., Assistant Vice President and Treasurer (Telecopy No.
      (847) 739-1605);

            (b) if to the Administrative Agent, to The Chase Manhattan Bank,
      Loan and Agency Services Group, One Chase Manhattan Plaza, 8th Floor, New
      York, New York 10081, Attention of Margaret Swales (Telecopy No. (212)
      552-5662), with a copy to The Chase Manhattan

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                                      126

      Bank, 270 Park Avenue, 21st Floor, New York, New York 10017, Attention of
      Carlos Morales (Telecopy No. (212) 270- 4724);

            (c) if to The Chase Manhattan Bank in its capacity as an Issuing
      Bank, to Chase Manhattan Bank Delaware, Letter of Credit Department, 1201
      Market Street, 8th Floor, Wilmington, Delaware 19801, Attention of Michael
      Handago (Telecopy No. (302) 428-3390);

            (d) if to the Swingline Lender, to The Chase Manhattan Bank at One
      Chase Plaza, 8th Floor, New York, New York 10081, Attention of Margaret
      Swales (Telecopy No. (212) 552-5662); and

            (e) if to any other Lender or Issuing Bank, to it at its address (or
      telecopy number) set forth in its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

            SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the
any Agent, any Issuing Bank or any Lender in exercising any right or power
hereunder or under any other Loan Document shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Agents, the Issuing Banks and the
Lenders hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of any Loan Document or consent to any departure by any Borrower
or any other Loan Party therefrom shall in any event be effective unless the
same shall be permitted by paragraph (b) of this Section, and then such waiver
or consent shall be effective only in the specific instance and for the purpose
for which given. Without limiting the generality of the foregoing, the making of
a Loan or issuance of a Letter of Credit shall not be construed as a waiver of
any Default, regardless of whether any Agent, any Lender or any Issuing Bank may
have had notice or knowledge of such Default at the time.

<PAGE>

                                                                             127

            (b) Except as provided in Section 2.20 with respect to an
Incremental Facility Amendment and except as provided in Section 6.06(c) of the
Collateral Sharing Agreement, neither this Agreement nor any other Loan Document
nor any provision hereof or thereof may be waived, amended or modified except,
in the case of this Agreement, pursuant to an agreement or agreements in writing
entered into by the Borrowers and the Required Lenders or, in the case of any
other Loan Document, pursuant to an agreement or agreements in writing entered
into by the applicable Agent that is a party thereto and the Loan Party or Loan
Parties that are parties thereto, in each case with the consent of the Required
Lenders; provided that no such agreement shall (i) increase the Commitment of
any Lender without the written consent of such Lender, (ii) reduce the principal
amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or
reduce any fees payable hereunder, without the written consent of each Lender
affected thereby, (iii) postpone the maturity of any Loan, or any scheduled date
of payment of the principal amount of any B Term Loan under Section 2.10, or the
required date of reimbursement of any LC Disbursement, or any date for the
payment of any interest or fees payable hereunder, or reduce the amount of,
waive or excuse any such payment, or postpone the scheduled date of expiration
of any Commitment, without the written consent of each Lender affected thereby,
(iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata
sharing of payments required thereby, without the written consent of each
Lender, (v) change any of the provisions of this Section or the percentage set
forth in the definition of "Required Lenders" or any other provision of any Loan
Document specifying the number or percentage of Lenders (or Lenders of any
Class) required to waive, amend or modify any rights thereunder or make any
determination or grant any consent thereunder, without the written consent of
each Lender (or each Lender of such Class, as the case may be), (vi) release the
Company or any material Subsidiary Loan Party from its Guarantee under the
Guarantee Agreement, or limit its liability in respect of such Guarantee, or
release any Subsidiary Loan Party from its Guarantee under the Guarantee
Agreement if such Subsidiary Loan Party's Guarantee in respect of the New Senior
Notes is not concurrently released, in each case without the written consent of
each Lender, (vii) release all or substantially all of the Collateral from the
Liens of the Security Documents, without the written consent of each Lender,
(viii) change any provisions of any Loan Document in a manner that by its terms
adversely affects the rights in respect of payments due to Lenders holding

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                                                                             128

Loans of any Class differently than those holding Loans of any other Class,
without the written consent of Lenders holding a majority in interest of the
outstanding Loans and unused Commitments of each affected Class, (ix) change the
rights of the Term Loan Lenders to decline mandatory prepayments as provided in
Section 2.11(g) or the application of prepayments of B Term Loans as provided in
Section 2.10(c), without the written consent of Term Loan Lenders holding a
majority of the outstanding B Term Loan Loans or (x) change any of the
provisions of Section 2.11 (or any related definitions) in a manner that would
alter the events or circumstances in respect of which a mandatory prepayment is
required, or the amount or allocation of any such mandatory prepayment, without
the written consent of Lenders holding a majority in interest of the outstanding
Loans and unused Commitments of each Class; provided further that (A) no such
agreement shall amend, modify or otherwise affect the rights or duties of any
Agent, any Issuing Bank or the Swingline Lender without the prior written
consent of such Agent, such Issuing Bank or the Swingline Lender, as the case
may be, and (B) any waiver, amendment or modification of this Agreement that by
its terms affects the rights or duties under this Agreement of the Revolving
Lenders (but not the Incremental Revolving Lenders, the Term Loan Lenders and
the Incremental Term Lenders), the Incremental Revolving Lenders (but not the
Revolving Lenders, the Term Loan Lenders and the Incremental Term Lenders), the
Term Loan Lenders (but not the Revolving Lenders, the Incremental Revolving
Lenders and the Incremental Term Lenders) or the Incremental Term Lenders (but
not the Revolving Lenders, the Incremental Revolving Lenders and the Term Loan
Lenders) may be effected by an agreement or agreements in writing entered into
by the Borrowers and requisite percentage in interest of the affected Class of
Lenders that would be required to consent thereto under this Section if such
Class of Lenders were the only Class of Lenders hereunder at the time.
Notwithstanding the foregoing, any provision of this Agreement may be amended by
an agreement in writing entered into by the Borrowers, the Required Lenders and
the Administrative Agent (and, if their rights or obligations are affected
thereby, the Issuing Banks and the Swingline Lender) if (i) by the terms of such
agreement the Commitment of each Lender not consenting to the amendment provided
for therein shall terminate upon the effectiveness of such amendment and (ii) at
the time such amendment becomes effective, each Lender not consenting thereto
receives payment in full of the principal of and interest accrued on each Loan
made

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                                                                             129

by it and all other amounts owing to it or accrued for its account under this
Agreement.

            SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Company
shall pay (i) all reasonable out-of-pocket expenses incurred by the Agents and
their respective Affiliates, including the reasonable fees, charges and
disbursements of counsel for the Agents, in connection with their due diligence
investigation of the Company, the evaluation of the Collateral, the syndication
of the credit facilities provided for herein, the preparation execution,
delivery, enforcement and administration of the Loan Documents or any
amendments, modifications or waivers of the provisions thereof (whether or not
the transactions contemplated hereby or thereby shall be consummated), (ii) all
reasonable out-of-pocket expenses incurred by any Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all out-of-pocket expenses incurred
by any Agent, any Issuing Bank or any Lender, including the fees, charges and
disbursements of any counsel for any Agent, any Issuing Bank or any Lender, in
connection with the enforcement or protection of its rights in connection with
the Loan Documents, including its rights under this Section, or in connection
with the Loans made or Letters of Credit issued hereunder, including all such
out- of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

            (b) The Company shall indemnify each Agent, each Issuing Bank and
each Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an "Indemnitee") against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses,
including the fees, charges and disbursements of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection
with, or as a result of (i) the execution or delivery of any Loan Document or
any other agreement or instrument contemplated hereby, the performance by the
parties to the Loan Documents of their respective obligations thereunder or the
consummation of the Transactions or any other transactions contemplated hereby,
(ii) any Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by any Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit),

<PAGE>

                                                                             130

(iii) any actual or alleged presence or release of Hazardous Materials on or
from any Mortgaged Property or any other property currently or formerly owned or
operated by the Company or any of its Subsidiaries, or any Environmental
Liability related in any way to the Company or any of its Subsidiaries, or (iv)
any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other
theory and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses resulted from
(i) the gross negligence, bad faith or wilful misconduct of such Indemnitee or
(ii) litigation between or among the Lenders or Agents.

            (c) To the extent that the Company fails to pay any amount required
to be paid by it to any Agent, any Issuing Bank or the Swingline Lender under
paragraph (a) or (b) of this Section, each Lender severally agrees to pay to
such Agent, such Issuing Bank or the Swingline Lender, as the case may be, such
Lender's pro rata share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against such Agent, such Issuing Bank or the Swingline Lender in its capacity as
such. For purposes hereof, a Lender's "pro rata share" shall be determined based
upon its share of the sum of the total Revolving Exposures, outstanding B Term
Loans and unused Commitments at the time.

            (d) To the extent permitted by applicable law, none of the Borrowers
shall assert, and each Borrower hereby waives, any claim against any Indemnitee,
on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of, this Agreement or any agreement or instrument
contemplated hereby, the Transactions, any Loan or Letter of Credit or the use
of the proceeds thereof.

            (e) All amounts due under this Section shall be payable promptly
after written demand therefor and, in the case of any expenses referred to in
paragraph (a), upon presentation of invoices or other reasonably detailed
statements specifying expenses.

<PAGE>

                                                                             131

            SECTION 9.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby (including any
Affiliate of any Issuing Bank that issues any Letter of Credit), except that no
Borrower may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by any Borrower without such consent shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby (including any Affiliate of any Issuing
Bank that issues any Letter of Credit) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Agents, the Issuing Banks and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

            (b) Any Lender may assign to one or more assignees all or a portion
of its rights and obligations under this Agreement (including all or a portion
of its Commitment and the Loans at the time owing to it); provided that (i)
except in the case of an assignment to a Lender or an Affiliate of a Lender,
each of the Company and the Administrative Agent (and, in the case of an
assignment of all or a portion of a Revolving Commitment or any Lender's
obligations in respect of its LC Exposure or Swingline Exposure, the Issuing
Banks and the Swingline Lender) must give their prior written consent to such
assignment (which consents shall not be unreasonably withheld), (ii) except in
the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender's Commitment
or Loans, the amount of the Commitment or Loans of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative Agent) shall
not be less than $5,000,000 (or $1,000,000 in the case of a Term Commitment or B
Term Loan) unless each of the Company and the Administrative Agent otherwise
consent, (iii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender's rights and obligations under
this Agreement, except that this clause (iii) shall not be construed to prohibit
the assignment of a proportionate part of all the assigning Lender's rights and
obligations in respect of one Class of Commitments or Loans, (iv) the parties to
each assignment shall execute and deliver to the

<PAGE>

                                                                             132

Administrative Agent an Assignment and Acceptance, together with a processing
and recordation fee of $2,000, and (v) the assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire; and provided further that any consent of the Company otherwise
required under this paragraph shall not be required if an Event of Default has
occurred and is continuing. Subject to acceptance and recording thereof pursuant
to paragraph (d) of this Section, from and after the effective date specified in
each Assignment and Acceptance the assignee thereunder shall be a party hereto
and, to the extent of the interest assigned by such Assignment and Acceptance,
have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Lender's rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.15, 2.16, 2.17 and 9.03). Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this paragraph shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (e) of this Section.

            (c) The Administrative Agent, acting for this purpose as an agent of
the Borrowers, shall maintain at one of its offices in The City of New York a
copy of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the "Register"). The entries in
the Register shall be conclusive, and the Borrowers, the Agents, the Issuing
Banks and the Lenders may treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Company, any Issuing Bank and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

            (d) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a

<PAGE>

                                                                             133

Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by
paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Acceptance and record the information contained therein in the
Register. No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.

            (e) Any Lender may, without the consent of any Borrower, any Agent,
any Issuing Bank or the Swingline Lender, sell participations to one or more
banks or other entities (a "Participant") in all or a portion of such Lender's
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (i) such Lender's
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrowers, the Agents, the Issuing Banks 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. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce the Loan
Documents and to approve any amendment, modification or waiver of any provision
of the Loan Documents; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver described in the first proviso to Section
9.02(b) that affects such Participant. Subject to paragraph (f) of this Section,
the Borrowers agree that each Participant shall be entitled to the benefits of
Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section.
To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 9.08 as though it were a Lender, provided such Participant
agrees to be subject to Section 2.18(c) as though it were a Lender.

            (f) A Participant shall not be entitled to receive any greater
payment under Section 2.15 or 2.17 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Company's prior written consent. A Participant that would be a Foreign Lender if

<PAGE>

                                                                             134

it were a Lender shall not be entitled to the benefits of Section 2.17 unless
the Company is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrowers, to comply with Section
2.17(e) as though it were a Lender.

            (g) Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of
a security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

            SECTION 9.05. Survival. All covenants, agreements, representations
and warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that any Agent, any Issuing Bank or any
Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated. The provisions of
Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in
full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof.

            SECTION 9.06. Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement,
the other

<PAGE>

                                                                             135

Loan Documents and any separate letter agreements with respect to fees payable
to any of the Agents or Issuing Banks constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as delivery
of a manually executed counterpart of this Agreement.

            SECTION 9.07. Severability. Any provision of this Agreement held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

            SECTION 9.08. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any time
owing by such Lender or Affiliate to or for the credit or the account of any
Borrower against any of and all the obligations of such Borrower now or
hereafter existing under this Agreement held by such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement and
although such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of
setoff) which such Lender may have.

            SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of
Process. (a) This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

<PAGE>

                                                                             136

            (b) Each Borrower hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County and of the United
States District Court of the Southern District of New York, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to any Loan Document, 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 such New York State 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 or any other Loan Document shall affect any right that
any Agent, any Issuing Bank or any Lender may otherwise have to bring any action
or proceeding relating to this Agreement or any other Loan Document against any
Borrower or its properties in the courts of any jurisdiction.

            (c) Each Borrower hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection which 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 other Loan
Document in any court referred to in paragraph (b) of this Section. 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.

            (d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

            SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR

<PAGE>

                                                                             137

ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

            SECTION 9.11. Headings. Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

            SECTION 9.12. Confidentiality. Each of the Agents, the Issuing Banks
and the Lenders agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its and its
Affiliates' partners, directors, officers, employees and agents, including
accountants, legal counsel, other advisors and any direct or indirect
contractual counterparty in swap agreements or such contractual counterparty's
professional advisor (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and agree to keep such Information confidential), (b) to the extent
requested by any regulatory authority, (c) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process, (d) to any
other party to this Agreement, (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement, (g) with the consent of any Loan Party or (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to any Agent, any Issuing Bank or any
Lender on a nonconfidential basis from a source other than the Company. For the
purposes of this Section, "Information" means all information received from the
Company relating to the Company or its business, other than any such information
that is available to any Agent, any Issuing Bank or any Lender on a
nonconfidential basis prior to disclosure by the Company. Any Person required to
maintain the confidentiality of Information as provided

<PAGE>

                                                                             138

in this Section shall be considered to have complied with its obligation to do
so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

            SECTION 9.13. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively the "Charges"), shall exceed the
maximum lawful rate (the "Maximum Rate") which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

<PAGE>

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

                                    IMC GLOBAL INC.,

                                       by /s/ J. Bradford James
                                         --------------------------------
                                         Name:  J. Bradford James
                                         Title: Executive Vice President and
                                                Chief Financial Officer

<PAGE>

                                    PHOSPHATE RESOURCE PARTNERS
                                    LIMITED PARTNERSHIP,

                                    By: IMC Global Inc., its
                                    Administrative Managing
                                    General Partner

                                       by /s/ J. Bradford James
                                         --------------------------------
                                         Name:  J. Bradford James
                                         Title: Vice President

                                    And by:  FMRP Inc., its
                                    General Partner

                                       by /s/ J. Bradford James
                                         --------------------------------
                                         Name:  J. Bradford James
                                         Title: Vice President

<PAGE>

                                    IMC PHOSPHATES COMPANY,

                                    By:  IMC Phosphates MP Inc.,
                                    its Managing Partner

                                       by  /s/ J. Bradford James
                                         --------------------------------
                                         Name:  J. Bradford James
                                         Title: Vice President

<PAGE>

                                    THE CHASE MANHATTAN BANK,
                                    individually and as
                                    Administrative Agent,

                                       by  /s/ Robert Anastasio
                                         --------------------------------
                                         Name:  Robert Anastasio
                                         Title: Vice President
<PAGE>

                                    GOLDMAN SACHS CREDIT PARTNERS
                                    L.P., individually and as
                                    Syndication Agent,

                                       by /s/ Stephen P. Hickey
                                         --------------------------------
                                         Name:  Stephen P. Hickey
                                         Title: Authorized Signatory

<PAGE>

                                    BNP PARIBAS,

                                    by   /s/ Thomas H. Ambrose
                                        ----------------------------------
                                        Name:  Thomas H. Ambrose
                                        Title: Director - Agribusiness Finance
                                               Group

                                    by   /s/ Richard L. Sted
                                        ----------------------------------
                                        Name:  Richard L. Sted
                                        Title: Central Region Manager

<PAGE>

                                    ROYAL BANK OF CANADA,

                                    by   /s/ N.G. Millar
                                        ----------------------------------
                                        Name:  N.G. Millar
                                        Title: Senior Manager

<PAGE>

                                    THE BANK OF NEW YORK,

                                    by   /s/ Eugene F. Kenny
                                        ----------------------------------
                                        Name:  Eugene F. Kenny
                                        Title: Assistant Vice President

<PAGE>

ATTEST:                             PROTECTIVE LIFE INSURANCE COMPANY

By:  /s/ Natalie R. Reid            By:  /s/ Richard J. Bielen
   --------------------------           ----------------------------------
Name: Natalie R. Reid               Name:  Richard J. Bielen
Its:  Assistant Secretary           Its:   Senior Vice President, Investments

[CORPORATE SEAL]

<PAGE>

                                    THE FOOTHILL GROUP, INC.,

                                    by   /s/ Dennis R. Ascher
                                        ----------------------------------
                                        Name:  Dennis R. Ascher
                                        Title: Sr. V.P.

<PAGE>

                                    THE GOVERNOR & COMPANY OF THE BANK
                                    OF IRELAND,

                                    by   /s/ Pat MacBride
                                        ----------------------------------
                                        Name:  Pat MacBride
                                        Title: Authorised Signatory

                                    by   /s/ Brendan McLoughlin
                                        ----------------------------------
                                        Name:  Brendan McLoughlin
                                        Title: Authorised Signatory

<PAGE>

                                    FOOTHILL INCOME TRUST II, LP,

                                    By: FLT II GP, LLC, its general partner

                                    by   /s/ Dennis R. Ascher
                                        ----------------------------------
                                        Name:  Dennis R. Ascher
                                        Title: Managing Member

<PAGE>

                                    SUNAMERICA LIFE INSURANCE COMPANY,

                                    by   /s/ John G. Lapham
                                        ----------------------------------
                                        Name:  John G. Lapham
                                        Title: Authorized Agent

<PAGE>

                                    HELLER FINANCIAL, INC.,

                                    by   /s/ Julia F. Maslanka
                                        ----------------------------------
                                        Name:  Julia F. Maslanka
                                        Title: Vice President

<PAGE>

                                    THE SUMITOMO TRUST AND BANKING CO., LTD.,
                                    NEW YORK BRANCH,

                                    by   /s/ [Illegible]
                                        ----------------------------------
                                        Name:
                                        Title:

<PAGE>

                                    TORONTO DOMINION (NEW YORK) INC.,

                                    by   /s/ Dana Schwalie
                                        ----------------------------------
                                        Name:  Dana Schwalie
                                        Title: Vice President

<PAGE>

                                    FRANKLIN FLOATING RATE TRUST,

                                    by   /s/ Chauncey Lufkin
                                        ----------------------------------
                                        Name:  Chauncey Lufkin
                                        Title: Vice President

<PAGE>

                                    MORGAN STANLEY DEAN WITTER
                                    PRIME INCOME TRUST,

                                    by   /s/ Sheila A. Finnerty
                                        ----------------------------------
                                        Name:  Sheila A. Finnerty
                                        Title: Senior Vice President

<PAGE>

                                    GALAXY CLO 1999-1, LTD,

                                    By:  SAI Investment Adviser, Inc.
                                    its  Collateral Manager

                                    by   /s/ John G. Lapham
                                        ----------------------------------
                                        Name:  John G. Lapham
                                        Title: Authorized Agent

<PAGE>

                                    KZH CYPRESS TREE-1 LLC,

                                    by   /s/ Susan Lee
                                        ----------------------------------
                                        Name:  Susan Lee
                                        Title: Authorized Agent

<PAGE>

                                    KZH SOLEIL-2 LLC,

                                    by   /s/ Susan Lee
                                        ----------------------------------
                                        Name:  Susan Lee
                                        Title: Authorized Agent

<PAGE>

                                    KZH SOLEIL LLC,

                                    by   /s/ Susan Lee
                                        ----------------------------------
                                        Name:  Susan Lee
                                        Title: Authorized Agent

<PAGE>

                                    FRANKLIN FLOATING RATE MASTER SERIES,

                                    by   /s/ Chauncey Lufkin
                                        ----------------------------------
                                        Name:  Chauncey Lufkin
                                        Title: Vice President

<PAGE>

                                    KZH STERLING LLC,

                                    by   /s/ Susan Lee
                                        ----------------------------------
                                        Name:  Susan Lee
                                        Title: Authorized Agent

<PAGE>

                                    SRF TRADING, INC.,

                                    by   /s/ Ann E. Morris
                                        ----------------------------------
                                        Name:  Ann E. Morris
                                        Title: Asst. Vice President

<PAGE>

                                    SRF 2000 LLC,

                                    by   /s/ Ann E. Morris
                                        ----------------------------------
                                        Name:  Ann E. Morris
                                        Title: Asst. Vice President

<PAGE>

                                    KZH CNC LLC,

                                    by   /s/ Susan Lee
                                        ----------------------------------
                                        Name:  Susan Lee
                                        Title: Authorized Agent

<PAGE>

                                    WINGED FOOT FUNDING TRUST,

                                    by   /s/ Ann E. Morris
                                        ----------------------------------
                                        Name:  Ann E. Morris
                                        Title: Authorized Agent

<PAGE>

                                    FRANKLIN FLOATING RATE DAILY
                                    ACCESS FUND,

                                    by   /s/ Chauncey Lufkin
                                        ----------------------------------
                                        Name:  Chauncey Lufkin
                                        Title: Vice President

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