Document:

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                                                                   Exhibit 10.40

                                  HSBC BANK USA

                        EMPLOYEE BENEFIT TRUST AGREEMENT

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[HSBC LOGO]

                        EMPLOYEE BENEFIT TRUST AGREEMENT

         THIS AGREEMENT (hereinafter referred to as the "Trust Agreement"), made
this 23rd day of October, 2001, by and between Mpower Communications Corp., a
corporation organized and existing under the laws of the State of New York and
having its principal offices at 175 Sully's Trail, Suite 300, Pittsford, New
York, 14534 (the "Company"), and HSBC Bank USA ("HSBC"), a bank organized under
the laws of the State of New York and having a principal place of business at
One HSBC Center, Buffalo, New York 14203 (the "Trustee"). Any reference herein
to the "Bank" shall mean _____________________________, a ___________ chartered
stock savings bank.

                                   WITNESSETH:

         WHEREAS, the Company has established certain severance and retention
agreements for the exclusive benefit of employees of the Company or its
affiliates (in the aggregate, the agreements are referred to herein as the
"Plan"); and

         WHEREAS, the Trustee is not a party to the Plan and makes no
representations with respect thereto, and all representations and recitals with
respect to the Plan shall be deemed to be those of the Company; and

         WHEREAS, the Company wishes to establish a trust (the "Trust") and to
contribute to the Trust assets that shall be held therein, until paid to Plan
participants in such manner and at such times as specified in the Plan; and

         WHEREAS, the Company has appointed a committee (the "Committee") to
administer the Plan generally and an independent fiduciary (the "Fiduciary") to
determine and to certify to the Trustee the existence of certain facts
concerning the status of the Company that will automatically trigger the payment
of benefits as further provided hereunder; and

         WHEREAS, it is the intention of the Company to make contributions to
the Trust to provide itself with a source of funds to assist it in the meeting
of its liabilities under the Plan, until paid to Plan participants in the time
and manner specified in the Plan.

         NOW, THEREFORE, the parties do hereby establish the Trust and agree
that the Trust shall be comprised, held and disposed of as follows:

                                    SECTION 1
                             Establishment of Trust

         (a)      (i)      The Company hereby deposits with Trustee in trust
$100, which shall become the principal of the Trust to be held, administered and
disposed of by Trustee as provided in this Trust Agreement.

                  (ii)     The Trustee hereby accepts a trust consisting of the
initial deposit referred to in the preceding sentence and such cash or other
property acceptable to the Trustee as shall be paid or delivered to the Trustee
from time to time, together with the earnings, income, additions and
appreciation thereon and thereto (all of which is hereinafter called the
"Fund").

         (b)      The Trust hereby established shall be irrevocable.

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         (c)      The Trust is intended to be a grantor trust, of which the
Company is the grantor, within the meaning of subpart E, part I, subchapter J,
chapter 1, subtitle A of the Code, and shall be construed accordingly.

         (d)      The principal of the Trust, and any earnings thereon, shall be
held separate and apart from other funds of the Company and shall be used
exclusively for the uses and purposes of Plan participants. Although it is
intended that Trust assets will be used solely to provide Plan benefits and will
not revert to the Company, all rights created under the Plan and this Trust
Agreement shall be mere unsecured contractual rights of Plan participants
against the Company.

         (e)      The Company, in its sole discretion, may at any time, or from
time to time, make additional deposits of cash or other property in trust with
Trustee to augment the principal to be held, administered and disposed of by
Trustee as provided in this Trust Agreement. Neither Trustee nor any Plan
participant or beneficiary shall have any right to compel such additional
deposits, or any other contribution to the Trust.

         (f)      The Trustee shall have the right and power, but shall be under
no duty, to determine whether the amount of any contribution is in accordance
with the Plan or to collect or enforce payment of any contribution. The Trustee
shall not be responsible for computing or collecting any contribution or other
amounts due under the Plan or the Trust.

                                    SECTION 2
                          Payments to Plan Participants

         (a)      (i)      The Committee shall deliver to Trustee a schedule
(the "Payment Schedule") that indicates the amounts payable in respect of each
Plan participant, that provides a formula or other instructions acceptable to
Trustee for determining the amounts so payable, the form in which such amount is
to be paid (as provided for or available under the Plan) and the time of
commencement for payment of such amounts. Except as otherwise provided herein,
Trustee shall make payments to the Plan participants in accordance with such
Payment Schedule.

                  (ii)     The Payment Schedule shall be delivered to the
Trustee following the execution of this Trust Agreement and an updated Payment
Schedule shall be furnished at least annually thereafter. Each such Payment
Schedule shall include, without limitation, (A) the names, addresses, social
security numbers and the amount and form of benefit benefits of each Plan
participant in the Plan; (B) a schedule of the estimated yearly cash payments
under the Plan; and (C) any other information regarding the Plan which the
Trustee may reasonably request.

         (b)      The Trustee shall not have the responsibility for determining
whether factual circumstances have occurred that entitle a participant to
receive benefits under the terms of the Plan but shall instead rely on notice
and direction from the Committee or the Fiduciary that such factual
circumstances have occurred. The Fiduciary shall be responsible, where the Plans
may contain such conditions, for notifying the Trustee whether a change in
control of the Company has occurred, whether the Company has curtailed all
substantial business activities or, if the Committee so requests of the
Fiduciary, whether the Company has otherwise attained or failed to attain any
other status as may be contemplated under the Plan. The Committee shall be
responsible for notifying the Trustee of all factual circumstances not within
the Fiduciary's responsibilities described above, such as whether a participant
has remained in employment for the requisite period of time required in any
retention agreement or has terminated employment as may be required in any other
Plan agreement. If either the Fiduciary or the Committee fails to discharge its
responsibilities as specified above within 30 days of a request by the other
party that it do so, the party not initially responsible may undertake the other
party's responsibilities, and the Trustee shall be entitled to rely and act upon
such undertaking.

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         (c)      (i)      To the extent that amounts are paid under this
Section 2 by the Trustee directly to any Plan participant, such amounts shall be
reduced by the Trustee in an amount equal to the income and employment tax
withholding required by law with respect to such participant, as determined by
the Committee and promptly communicated to the Trustee. The Trustee shall inform
each Plan participant to whom a payment is made of the amount withheld from the
payment and the purpose of withholding such amount. Such withheld amounts shall
be paid by the Trustee to the Company, which shall remit such withheld amounts
to, and shall file the appropriate withholding reports with, the appropriate
governmental agencies. In making any determination whether the Committee has
properly determined and the Company has properly reported and/or withheld the
appropriate taxes, the Trustee may rely on a written certification, under
penalties of perjury, signed by a member of the Committee.

                  (ii)     To the extent that amounts are paid under this
Section 2 by the Trustee directly to any Plan participant and the Committee
fails to direct the Trustee with respect to the appropriate amount to be
withheld by the Trustee with respect to the applicable withholding requirements,
the Trustee shall use its best efforts to determine, in its sole discretion, the
appropriate amount of income and employment tax withholding required by law with
respect to the payment to such participant, and shall reduce any payments by the
amount of tax withholding required. The Trustee shall inform the Company and
each Plan participant to whom payment is made of the amount withheld from the
payment and the purpose of withholding such amount. The amount withheld by the
Trustee shall be paid by the Trustee to the Company and the Company shall remit
such withheld amounts to, and shall file the appropriate withholding reports
with, the appropriate governmental agencies. Provided that the Trustee has
withheld the amounts directed by the Committee or, in the absence of such
direction from the Committee, used its best efforts to determine applicable
withholding under this Section, it shall have no liability for failure to
withhold amounts sufficient to meet applicable requirements, and shall be held
harmless by the Company against such liability.

                  (iii)    Unless otherwise agreed to by the Trustee, the
Company shall be responsible for all tax information reporting with respect to
payments made to Plan participants hereunder.

         (d)      (i)      The entitlement of a Plan participant to benefits
under the Plan shall be determined by the Committee or the Fiduciary, or both,
as the case may be, and any claim for such benefits shall be considered and
reviewed under the procedures set out in the Plan.

                  (ii)     The Trustee shall have no authority over and no
responsibility for the disposition of claims for benefits under the Plan and, in
the absence of an order to the contrary of a court of competent jurisdiction,
may rely conclusively on the most recent Payment Schedule furnished to it by the
Committee in making or refraining from making payments from the Trust to
individuals who are or purport to be Plan participants. The Trustee shall not
make payments hereunder to any person until it receives instructions from the
Committee or fiduciary in a form reasonably satisfactory to the Trustee.

         (e)      (i)      The Company may make payment of benefits directly to
Plan participants as they become due under the terms of the Plan. The Committee
shall notify Trustee of the Company's decision to make payment of benefits
directly prior to the time amounts are payable to participants. In addition, if
the principal of the Trust, and any earnings thereon, are not sufficient to make
payments of benefits in accordance with the terms of the Plan, the Company shall
make the balance of each such payment as it falls due. The Trustee shall notify
the Company where principal and earnings are not sufficient.

                  (ii)     The Trustee shall have no liability or responsibility
for duplicate payments made prior to its receipt from the Committee of notice of
the Company's intention to make direct payment.

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                                    SECTION 3
                             Payments to the Company

         The Company shall have no right or power to direct Trustee to return to
the Company or to divert to others any of the Trust assets before all payments
of benefits have been made to Plan participants pursuant to the terms of the
Plan.

                                    SECTION 4
                              Investment Authority

         (a)      Subject to subsections (b) and (c) of this Section 4, the
Trustee shall have the exclusive authority and discretion to manage and control
the assets of the Fund as specified in this Section 4, and pursuant to such
authority and discretion may exercise from time to time and at any time the
power:

                  (i)      To invest and reinvest the Fund, without distinction
between principal and income, in the group, family or class of mutual funds or
other securities specified in writing by the Committee which shall constitute
the exclusive permitted investments of the Fund;

                  (ii)     To exercise, personally or by general or limited
proxy, the right to vote any securities held in the Fund, and to exercise,
personally or by power of attorney, any other right appurtenant to securities
held by the Fund;

                  (iii)    To exercise or sell any conversion or subscription or
other rights appurtenant to any securities held in the Fund; and

                  (iv)     To invest and reinvest any property, real or
personal, in the Fund in any other form or type of investment not specifically
mentioned in this subsection (a), so long as the Committee directs the Trustee
to invest in such form or type of investment.

         (b)      (i)      The Trustee may invest in securities (including stock
or rights to acquire stock) or obligations issued by the Company or the Bank.
All rights associated with assets of the Trust shall be exercised by the Trustee
or the person designated by the Trustee, and shall in no event be exercisable by
or rest with Plan participants except that voting, tender, appraisal, dissenter
and other similar rights with respect to Trust assets shall be exercised by the
Committee. In the absence of timely directions from the Committee, the Trustee
shall have no duty to exercise such rights, and shall have no liability for
refraining from exercising such rights.

                  (ii)     Any investment by the Trustee in securities or
obligations of the Company or the Bank shall be subject to prior written
approval of the Company.

         (c)      The Trustee shall exercise its powers under this Section 4 in
a manner consistent with such direction by the Committee and shall have no
liability whatsoever for any loss, cost or expense occasioned by any investment
in accordance with this section.

         (d)      To the extent permitted by law, the Trustee shall not be
liable for any act or omission of the Committee hereunder and, except as set
forth hereunder, the Trustee shall not be under any obligations to invest or
otherwise manage the assets of the Plan. Without limiting the generality of the
foregoing, the Trustee shall not be liable by reason of its taking or refraining
from taking any action hereunder at the direction of the Committee; the Trustee
shall be under no duty to question or to make inquiries as to any direction or
order or failure to give direction or order by the Committee and the Trustee
shall be under no duty to make any review of investments acquired for the Fund
at the direction or order of the Committee and shall be under no duty at any
time to make any recommendation with respect to disposing of or continuing to
retain any such investment.

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         (e)      Without limiting the generality of the provisions of Section 7
hereof, the Company agrees, to the extent permitted by law, to indemnify the
Trustee and hold it harmless from and against any claim or liability that may be
asserted against it, otherwise than on account of the Trustee's own gross
negligence or willful misconduct or violation of any provision of law, by reason
of the Trustee's taking or refraining from taking any action in accordance with
this Section 4.

         (f)      Subject to the other provisions of this Trust Agreement, the
Trustee shall have the power and authority to be exercised in its sole
discretion at any time and from time to time to issue and place orders for the
purchase or sale of securities directly with qualified brokers or dealers. Such
orders may be placed with such qualified brokers and/or dealers who also provide
investment information or other research or statistical services to the Trustee
in its capacity as a fiduciary or investment manager for other clients.

                                    SECTION 5
                              Disposition of Income

         During the term of this Trust, all income received by the Trust, net of
expenses and taxes, shall be accumulated and reinvested.

                                    SECTION 6
                                    Accounts

         (a)      (i)      The Trustee shall keep accurate and detailed records
of all receipts, investments and disbursements under this Agreement. Such person
or persons as the Company shall designate shall be allowed to inspect the books
of account relating to the Fund upon request at any reasonable time during the
business hours of the Trustee.

                  (ii)     Within 120 days after the close of each calendar
year, the Trustee shall transmit to the Company, and certify the accuracy of, a
written statement of the assets and liabilities of the Fund at the close of that
calendar year, showing the current value of each asset at that date, and a
written account of all the Trustee's transactions relating to the Fund during
the period from the last previous accounting to the close of that calendar year.
(For purposes of this section, the date of the Trustee's resignation or removal
as provided in Section 9 hereof or the date of the termination of the Plan as
provided in Section 11 hereof shall be deemed to be the close of a calendar year
with respect to the Trustee's resignation or the termination of the Plan, as the
case may be.)

                  (iii)    Unless the Company shall have filed with the Trustee
written exceptions or objections to any such statement or account within 180
days after receipt thereof, the Company shall be deemed to have approved such
statement and account; and in such case, or upon the written approval by the
Company of any such statement and account, the Trustee shall be forever released
and discharged with respect to all matters and things expressly set forth in
such statement and account as though it had been settled by decree of a court of
competent jurisdiction in an action or proceeding to which the Company and all
persons having any beneficial interest in the Fund were parties.

         (b)      Nothing contained in this Agreement or in the Plan shall
deprive the Trustee of the right to have judicial settlement of its accounts. In
any proceeding for a judicial settlement of the Trustee's accounts, or for
instructions in connection with the Fund, the only other necessary party thereto
in addition to the Trustee shall be the Company. If the Trustee so elects, it
may bring in as a party or parties defendant any other person or persons. No
person interested in the Fund, other than the

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Company, shall have the right to compel an accounting, judicial or otherwise, by
the Trustee, and each such person shall be bound by all accountings by the
Trustee to the Company, as herein provided, as if the account had been settled
by decree of a court of competent jurisdiction in an action or proceeding to
which such person was a party.

                                    SECTION 7
                            Responsibility of Trustee

         (a)      The Trustee shall discharge its duties under this Agreement
with the care, skill, prudence and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and familiar with
such matters would use in the conduct of an enterprise of a like character and
with like aims; provided, however, that the Trustee shall incur no liability to
any person for any action taken pursuant to a direction, request or approval
given by the Committee or Fiduciary which is contemplated by, and in conformity
with, the terms of the Plan or this Agreement and is given in writing by the
Committee or Fiduciary. The duties and obligations of the Trustee shall be
limited to those expressly imposed upon it by this Agreement, notwithstanding
any reference herein to the Plan.

         (b)      The Trustee shall have no duty to commence or defend any legal
action arising in connection with the Trust unless it shall first have been
indemnified, in manner and substance satisfactory to it, against its costs,
expenses and liabilities (including, without limitation, attorneys' fees and
expenses) relating thereto.

         (c)      The Trustee may consult with counsel, who may be counsel for
the Company or for the Trustee in its individual capacity, and shall not be
liable for any actions taken or omitted in accordance with the opinion of
counsel. The Company agrees, to the extent permitted by law, to indemnify and
hold the Trustee harmless from and against any liability that it may incur in
connection with the Fund, unless arising from the Trustee's own grossly
negligent or willful breach of the provisions of Section 7(a). The Trustee shall
not be required to give any bond or other security for the faithful performance
of its duties under this Agreement, except as required by law. The Trustee, in
its corporate capacity, shall not be liable for claims of any persons in any
manner regarding the Plan; such claims shall be limited to the Trust Fund.

         (d)      (i)      The Trustee shall have, without exclusion, all powers
conferred on trustees by applicable law, unless expressly provided otherwise
herein; provided, however, that if an insurance policy is held as an asset of
the Trust, the Trustee shall have no power to name a beneficiary of the policy
other than the Trust, to assign the policy (as distinct from conversion of the
policy to a different form) other than to a successor Trustee or to loan to any
person the proceeds of any borrowing against such policy.

                  (ii)     The Trustee shall have, and in its sole and absolute
discretion may exercise from time to time and at any time, the following
administrative powers and authority with respect to the Fund consistent with the
provisions of Section 4:

                                    (A) To continue to hold any property of the
                           Fund whether or not productive of income; to reserve
                           from investment and keep unproductive of income,
                           without liability for interest, cash temporarily
                           awaiting investment and such cash as it deems
                           advisable or as the Committee from time to time may
                           specify in order to meet the administrative expenses
                           of the Fund or anticipated distributions therefrom;

                                    (B) To hold property of the Fund in its own
                           name or in the name of a nominee or nominees, without
                           disclosure of the Trust, or in

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                           bearer form so that it will pass by delivery, but no
                           such holding shall relieve the Trustee of its
                           responsibility for the safe custody of the Fund in
                           accordance with the provisions of the Agreement; the
                           Trustee's books and records shall at all times show
                           that such property is part of the Fund; and, subject
                           to Section 7(c), the Trustee shall be absolutely
                           liable for any loss occasioned by the acts of its
                           nominee or nominees with respect to the securities
                           registered in the name of the nominee or nominees;

                                    (C) To employ in the management of the Fund
                           suitable agents, without liability for any loss
                           occasioned by any such agents selected by the Trustee
                           with the care, skill, prudence and diligence under
                           the circumstances then prevailing that a prudent man
                           acting in a like capacity and familiar with such
                           matters would use in the conduct of an enterprise of
                           a like character and with like aims.

                                    (D) To do all other acts that the Trustee
                           may deem necessary or proper to carry out any of the
                           powers set forth in Section 4 hereof or otherwise in
                           the best interests of the Fund.

         (e)      Notwithstanding any powers granted to the Trustee pursuant to
this Trust Agreement or to applicable law, the Trustee shall not have any power
that could give this Trust the objective of carrying on a business and dividing
the gains therefrom, within the meaning of section 301.7701-2 of the Procedure
and Administrative Regulations promulgated pursuant to the Code.

         (f)      Unless the Trustee participates knowingly in, or knowingly
undertakes to conceal, an act or omission of the Committee, the Fiduciary, or
any other fiduciary, knowing such act or omission to be a breach of fiduciary
responsibility, the Trustee shall be under no liability for any loss of any kind
which may result by reason of such act or omission.

         (g)      If a dispute arises as to the payment of any funds or delivery
of any assets by the Trustee, the Trustee may withhold such payment or delivery
until the dispute is determined by a court of competent jurisdiction or finally
settled in writing by the parties concerned.

                                    SECTION 8
                   Taxes, Compensation and Expenses of Trustee

         (a)      (i)      The Company shall pay any Federal, state, local or
other taxes imposed or levied with respect to the corpus and/or income of the
Fund or any part thereof under existing or future laws.

                  (ii)     All taxes that may be levied or assessed upon, or in
respect of, the Fund shall be paid from the Fund. The Trustee shall notify the
Company of any proposed or final assessments of taxes and may assume that any
such taxes are lawfully levied or assessed, unless the Company advises it in
writing to the contrary within 15 days after receiving the above notice from the
Trustee. In such case, the Trustee, if requested by the Company in writing,
shall contest the validity of such taxes in any manner deemed appropriate by the
Company; the Company may itself contest the validity of any such taxes, in which
case the Company shall so notify the Trustee and the Trustee shall have no
responsibility or liability respecting such contest. If either party to this
Agreement contests any such proposed levy or assessments, the other party shall
provide such information and cooperation as the party conducting the contest
shall reasonably request.

         (b)      The Trustee, without direction from the Company or the
Committee, shall pay from the Fund from time to time such reasonable
compensation for its services as trustee as shall be agreed upon

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with the Company, the reasonable and necessary expenses and compensation of
counsel and other agents employed or engaged by the Trustee pursuant to Section
7(d)(ii)(C) and all other reasonable and necessary expenses of managing and
administering the Fund (which the Trustee, in its discretion, determines to be
necessary or appropriate) that are not paid by the Company.

                                    SECTION 9
                       Resignation and Removal of Trustee

         (a)      The Trustee may resign at any time by written notice to the
Company, which shall be effective 60 days after receipt of such notice unless
the Company and the Trustee agree otherwise.

         (b)      The Company, by action of its Board, may remove the Trustee at
any time upon 60 days written notice, or upon shorter notice if acceptable to
the Trustee. In the event it resigns or is removed, the Trustee shall have a
right to have its accounts settled as provided in Section 6 hereof.

         (c)      (i)      Upon the resignation or removal of the Trustee and
the appointment of a successor Trustee, all assets shall subsequently be
transferred to the successor Trustee. The transfer shall be completed within 60
days after receipt of notice of resignation, removal or transfer, unless the
Company extends the time limit.

                  (ii)     The Trustee may reserve such sums as the Trustee
shall deem necessary to defray its expenses in settling its accounts, to pay any
of its compensation due and unpaid and to discharge any obligation of the Fund
for which the Trustee may be liable. If the sums so reserved are not sufficient
for these purposes, the Trustee shall be entitled to recover the amount of any
deficiency from either the Company or the successor Trustee, or both. When the
Fund shall have been transferred and delivered to the successor Trustee and the
accounts of the Trustee have been settled as provided in Section 6 hereof, the
Trustee shall be released and discharged from all further accountability or
liability for the Fund and shall not be responsible in any way for the further
disposition of the Fund or any part thereof.

         (d)      (i)      If the Trustee resigns or is removed, a successor
shall be appointed, in accordance with Section 10 hereof, by the effective date
of resignation or removal under subsection (b) above. If no such appointment has
been made, the Trustee may apply to a court of competent jurisdiction for
appointment of a successor or for instructions. All expenses of the Trustee
incurred in connection with the proceeding shall be allowed as administrative
expenses of the Trust.

                  (ii)     Each successor trustee shall have all the powers and
duties conferred upon the Trustee in this Trust Agreement and "Trustee", as used
in this Agreement, shall be deemed to include any successor Trustee.

                                   SECTION 10
                            Appointment of Successor

         In the event of the resignation or removal of the Trustee, a successor
Trustee shall be appointed by the Company. Such appointment shall take effect
upon delivery to the Trustee of an instrument so appointing the successor and an
instrument of acceptance executed by such successor, both of which instruments
shall be duly acknowledged by a notary public. The delivery of such instruments
shall take place within sixty (60) days after notice of resignation or removal,
as applicable, of the Trustee shall have been given.

                                   SECTION 11
                            Amendment or Termination

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         (a)      This Trust Agreement may be amended by a written instrument
duly executed and acknowledged by the Trustee and the Company. Notwithstanding
the foregoing, no such amendment shall conflict with the terms of the Plan or
shall make the Trust revocable.

         (b)      (i)      The Trust shall not terminate until the date on which
Plan participants and their beneficiaries are no longer entitled to benefits
pursuant to the terms of the Plan. Upon termination of the Trust, any assets
remaining in the Trust shall be returned to the Company.

                  (ii)     Notwithstanding the foregoing, if not sooner
terminated, the Trust shall terminate automatically on the twenty-first (21st)
anniversary of the death of the last to die of all the Plan participants, who
are living and in being on the effective date of this Trust Agreement.

                  (iii)    In case the Plan is terminated, in whole or in part,
the Trustee (subject to the provisions of Sections 9 and 10 hereof and reserving
such sums as the Trustee shall deem necessary in settling its accounts and to
discharge any obligation of the Fund for which the Trustee may be liable) shall
apply and distribute any subfund attributable to such terminating Plan in
accordance with the written directions of the Committee. Upon such termination
of the Plan in whole or in part, the Trustee shall have a right to have its
accounts settled as provided in Section 6 hereof. When a subfund shall have been
so applied or distributed and the accounts of the Trustee shall have been so
settled, the Trustee shall be released and discharged from all further
accountability or liability respecting such subfund, and shall not be
responsible in any way for the further disposition of such subfund.

                                   SECTION 12
                                  Miscellaneous

         (a)      Any provision of this Trust Agreement prohibited by law shall
be ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof.

         (b)      Benefits payable to Plan participants under this Trust
Agreement may not be anticipated, assigned (either at law or in equity),
alienated, pledged, encumbered or subjected to attachment, garnishment, levy,
execution or other legal or equitable process.

         (c)      (i)      This Trust Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts to be performed wholly within the State of New York.

                  (ii)     Nothing in this Agreement shall be construed to
subject either the Trust created hereunder or the Plan to ERISA.

                  (iii)    Any reference herein to ERISA or the Code shall
include such law as in effect on the effective date hereof, subsequent amendment
thereto and any succeeding law.

         (d)      The titles to Sections of this Agreement are placed herein for
convenience of reference only, and the Agreement is not to be construed by
reference thereto.

         (e)      This Agreement shall bind and inure to the benefit of the
successors and assigns of the Company and the Trustee, respectively.

         (f)      This Agreement may be executed in any number of counterparts,
each of which shall be an original but all of which together shall constitute
but one instrument, which may be sufficiently evidenced by any counterpart
executed by all parties hereto.

         (g)      Any corporation into which the Trustee is merged with or with
which it is consolidated, or any corporation resulting from a merger,
reorganization or consolidation, to which the Trustee is a party, or any
corporation to which all or substantially all the trust business of the Trustee
is transferred shall

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become the successor trustee under the Agreement without the execution or filing
of any further instrument or the performance of any further act.

         (h)      The Company or anyone acting on its behalf may at any time
employ the Trustee in its corporate (and not its fiduciary) capacity as agent to
perform any act, keep any records or accounts, or make any computations required
by the Company. Any such agency relationship shall be established by a separate
agreement between the Company and the Trustee, and the existence of such
agreement and any actions performed by the Trustee under such agreement shall
not affect its responsibilities as Trustee under this Agreement.

                                   SECTION 13
                   Administration of the Plan; Communications

         (a)      The Committee shall administer the Plan as provided therein,
the Fiduciary shall be responsible for certifying the existence or not of the
circumstances specified in Section 2(b) and the Trustee shall not be responsible
in any respect for administering such Plan or making determinations specified in
Section 2(b) nor shall the Trustee be responsible for the adequacy of the Fund
to meet and discharge all payments and liabilities under such Plan. The Trustee
shall be fully protected in relying upon any written notice, instruction,
direction or other communication signed by any member of the Committee, the
Fiduciary or a duly-authorized Company officer. The Committee from time to time
shall furnish the Trustee with the names and specimen signatures of such persons
and shall promptly notify the Trustee of the termination of any such person and
the appointment of a successor. Until notified to the contrary, the Trustee
shall be fully protected in relying upon the most recent list of authorized
persons furnished to it by the Committee.

         (b)      Any action required by any provision of this Agreement to be
taken by the Board shall be evidenced by a resolution of the Board, certified to
the Trustee by the Secretary or an Assistant Secretary of the Company under its
corporate seal. The Trustee shall be fully protected in relying upon any
resolution so certified to it. Unless other evidence with respect thereto has
been specifically prescribed in this Agreement, any other action of the Company
under any provision of this Agreement, including any approval of or exceptions
to the Trustee's accounts, shall be evidenced by a certificate signed by an
officer of the Company, duly authorized to give communications to the Trustee,
and the Trustee shall be fully protected in relying upon such certificate. The
Trustee may accept a certificate signed by any member of the Committee, the
Fiduciary or a duly-authorized Company officer authorized to give communications
to the Trustee as proof of any fact or matter that it deems necessary or
desirable to have established in the administration of the Trust (unless other
evidence of such fact or matter is expressly prescribed herein), and the Trustee
shall be fully protected in relying upon the statements in the certificate.

         (c)      Notwithstanding anything herein contained to the contrary, the
Trustee shall be entitled conclusively to rely upon any written notice,
instruction, direction, certificate or other communication reasonably believed
by it to be genuine and to be signed by the proper person or persons, and the
Trustee shall be under no duty to make investigation or inquiry as to the truth
or accuracy of any statement contained therein.

         (d)      Until notice be given to the contrary, communications to the
Trustee shall be sent to it at its office at _______________________________
Attention: ______________; communications to the Company shall be sent to it at
its office at 175 Sully's Trail, Suite 300, Pittsford, New York, 14534, ATTN:
Russell I. Zuckerman, Esq.

                                   SECTION 14
                              Name; Effective Date

                                       11

<PAGE>

         The name of the Trust created hereby shall be the Mpower Communications
Corp. Employee Benefit Trust.

         The effective date of this Trust Agreement shall be October 23rd, 2001.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in their respective names by their duly authorized officers as of the
day and year first above written.

                                             COMPANY:

                                             By:     /s/ Rolla P. Huff
                                                     ---------------------------
                                                     Rolla P. Huff, CEO

                                             TRUSTEE

                                             By:     /s/ Charles Herendeen
                                                     ---------------------------
                                                     Charles Herendeen

STATE OF NEW YORK          )
COUNTY OF MONROE           )        ss:

         On this 23rd day of October, 2001, before me personally came Rolla P.
Huff, to me known, who, being by me duly sworn, did depose and say that he
resides at 14 Moraine Point, Victor, New York, 14564, that he is the Chief
Executive Officer of Mpower Communications Corp., the Company described in the
foregoing instrument, that he was duly authorized by the Company to execute the
agreement and that he signed the agreement.

/s/ Russell I. Zuckerman
---------------------------
Russell I. Zuckerman
         Notary Public

STATE OF NEW YORK          )
COUNTY OF MONROE           )        ss:

         On this 23rd day of October, 2001, before me personally came Charles
Herendeen, to me known, who, being by me duly sworn, did depose and say that
s/he resides at Macedon, NY, that he is the Vice President of HSBC Bank USA, the
company described in and which executed the foregoing instrument as Trustee, by
order of the Board of Directors of said company and that s/he signed.

/s/ Shawn R. Callahan
---------------------------
Shawn R. Callahan
         Notary Public

                                       12<PAGE>

                                                                  CONFORMED COPY

                               EUR 12,000,000,000
                               FACILITY AGREEMENT

                              dated 25 January 2004

                                       for

                                SANOFI-SYNTHELABO

                                   arranged by

                                   BNP PARIBAS

                          MERRILL LYNCH CREDIT PRODUCTS

                           as Mandated Lead Arrangers

                                      with

                                   BNP PARIBAS
                                 acting as Agent

                     [FRESHFIELDS BRUCKHAUS DERINGER LOGO]

<PAGE>

                                    CONTENTS
<TABLE>
<CAPTION>
CLAUSE                                                                                                 PAGE
<S>    <C>                                                                                             <C>
1.     Definitions and interpretation.................................................................   2
2.     The Facilities.................................................................................  16
3.     Purpose........................................................................................  16
4.     Conditions of Utilisation......................................................................  17
5.     Utilisation....................................................................................  21
6.     Optional Currencies............................................................................  23
7.     Repayment......................................................................................  24
8.     Prepayment and cancellation....................................................................  25
9.     Interest.......................................................................................  32
10.    Interest Periods...............................................................................  35
11.    Changes to the calculation of interest.........................................................  36
12.    Fees...........................................................................................  37
13.    Tax gross up and indemnities...................................................................  39
14.    Increased costs................................................................................  42
15.    Other indemnities..............................................................................  43
16.    Mitigation by the Lenders......................................................................  44
17.    Costs and expenses.............................................................................  45
18.    Representations................................................................................  46
19.    Information undertakings.......................................................................  49
20.    Financial covenants............................................................................  51
21.    General undertakings...........................................................................  52
22.    Events of Default..............................................................................  57
23.    Changes to the Lenders.........................................................................  62
24.    Changes to the Obligors........................................................................  65
25.    Role of the Agent and the Mandated Lead Arrangers..............................................  67
26.    Conduct of business by the Finance Parties.....................................................  72
27.    Sharing among the Finance Parties..............................................................  72
28.    Payment mechanics..............................................................................  74
29.    Set-off........................................................................................  76
30.    Notices........................................................................................  76
31.    Calculations and certificates..................................................................  78
32.    Partial invalidity.............................................................................  78
33.    Remedies and waivers...........................................................................  78
34.    Confidentiality................................................................................  79
</TABLE>

<PAGE>

<TABLE>
<S>    <C>                                                                                             <C>
35.    Amendments and waivers.........................................................................  80
36.    Governing law..................................................................................  81
37.    Enforcement - Jurisdiction of French courts....................................................  81
38.    Election of domicile...........................................................................  81
</TABLE>

<PAGE>

THIS AGREEMENT is dated 25 January 2004 and made between:

(1)      SANOFI-SYNTHELABO, a French company whose registered office is at 174
         avenue de France, 75013 Paris, registered under identification number
         395 030 844 RCS Paris (the "COMPANY");

(2)      BNP PARIBAS, a French company whose registered office is at 16
         boulevard des Italiens, 75009 Paris, registered under identification
         number 662 042 449 RCS Paris and MERRILL LYNCH CREDIT PRODUCTS, a
         limited liability company registered under the laws of the State of
         Delaware whose registered office is at Corporation Trust Center, 1209
         Orange Street, Wilmington, DE 19801, USA, as mandated lead arrangers,
         underwriters and joint-book runners (whether acting individually or
         together the "MANDATED LEAD ARRANGERS");

(3)      BNP PARIBAS, a French company whose registered office is at 16
         boulevard des Italiens, 75009 Paris, registered under identification
         number 662 042 449 RCS Paris and MERRILL LYNCH CREDIT PRODUCTS, a
         limited liability company registered under the laws of the State of
         Delaware whose registered office is at Corporation Trust Center, 1209
         Orange Street, Wilmington, DE 19801, USA, as lenders (the "ORIGINAL
         LENDERS");

(4)      BNP PARIBAS, a French company whose registered office is at 16
         boulevard des Italiens, 75009 Paris, registered under identification
         number 662 042 449 RCS Paris, as agent of the other Finance Parties
         (the "AGENT"); and

(5)      BNP PARIBAS, a French company whose registered office is at 16
         boulevard des Italiens, 75009 Paris, registered under identification
         number 662 042 449 RCS Paris, as presenting bank for the purpose of
         Clause 5 (Utilisation) only (the "PRESENTING BANK").

IT IS AGREED as follows:

                                    SECTION 1
                                 INTERPRETATION

1.       DEFINITIONS AND INTERPRETATION

1.1      DEFINITIONS

         In this Agreement:

         "ACCESSION LETTER" means a document substantially in the form set out
         in Schedule 6 (Form of Accession Letter).

         "ACCEPTED SHARES" means the Shares which are to be acquired by the
         Company following the definitive tendering to the Offer of such Shares
         by their holders.

         "ACQUISITION" means the acquisition of the Shares in accordance with
         the Offer.

         "ACQUISITION LOAN" means any Loan made for the purpose of financing an
         Acquisition Payment.

                                     - 2 -
<PAGE>

         "ACQUISITION PAYMENT" means a payment of the amount of cash
         consideration (determined by reference to the cash consideration
         payable per Shares under the Offer in respect of Accepted Shares)
         required to be paid by or on behalf of the Company under the Offer on
         the Settlement Date relating to Accepted Shares.

         "ADDITIONAL BORROWER" means Target provided that it accedes to this
         Agreement and any company which becomes an Additional Borrower in
         accordance with Clause 24 (Changes to the Obligors).

         "ADDITIONAL COST RATE" has the meaning given to it in Schedule 4
         (Mandatory Cost formulae).

         "ADDITIONAL OFFER" means any (i) additional offer resulting from the
         reopening of the Original Offer for additional acceptances which may be
         initiated by the Company following the Original Offer period in
         accordance with the provisions of article 5-2-3-1 of the Reglement
         General du CMF or (ii) distinct offer (offre publique simplifiee) made
         by the Company for all of the then outstanding Shares of the Target
         following the Original Offer period in accordance with the provisions
         of Chapter 3 of Titre III of the Reglement General du CMF.

         "ADDITIONAL OFFER RESULT NOTICE" means a notice published by the AMF of
         the final outcome of any Additional Offer (avis de resultat) specifying
         (amongst other things) the number of Shares that have been tendered to
         the Offer by their holders and which are to be acquired by the Company
         pursuant to the Additional Offer.

         "ADDITIONAL OFFER SETTLEMENT DATE" means the date on which an
         Acquisition Payment is to be made in respect of any Additional Offer.

         "AFFILIATE" means, in relation to any person, a Subsidiary of that
         person or a Holding Company of that person or any other Subsidiary of
         that Holding Company.

         "AGENT'S SPOT RATE OF EXCHANGE" means the Agent's spot rate of exchange
         for the purchase of the relevant currency with the Base Currency in the
         Paris foreign exchange market at or about 11:00 a.m. on a particular
         day.

         "AMF" means the Autorite des marches financiers.

         "ANNOUNCEMENT DATE" means the date of filing of the Original Offer with
         the AMF, which date shall occur no later than 10 Business Days
         following the signing of this Agreement unless otherwise agreed by the
         Lenders.

         "AUTHORISATION" means an authorisation, consent, approval, resolution,
         licence, exemption, filing, notarisation or registration.

         "AVAILABILITY PERIOD" means (in each case, subject to Clause 8.4
         (Mandatory Cancellation)):

         (a)      in relation to Facility A, the period from and including the
                  date of this Agreement to and including the Facility A Final
                  Maturity Date;

         (b)      in relation to Facility B, the period from and including the
                  date of this Agreement to and including the Facility B Final
                  Maturity Date; and

         (c)      in relation to Facility C, the period from and including the
                  date of this Agreement to and including the Facility C Final
                  Maturity Date.

                                     - 3 -
<PAGE>

         "AVAILABLE COMMITMENT" means, in relation to a Facility, a Lender's
         Commitment under that Facility minus:

         (a)      the Base Currency Amount of its participation in any
                  outstanding Loans under that Facility; and

         (b)      in relation to any proposed Utilisation, the Base Currency
                  Amount of its participation in any Loans that are due to be
                  made under that Facility on or before the proposed Utilisation
                  Date, other than, in relation to Facility C only, that
                  Lender's participation in any Facility C Loans that are due to
                  be repaid or prepaid on or before the proposed Utilisation
                  Date.

         "AVAILABLE FACILITY" means, in relation to a Facility, the aggregate
         for the time being of each Lender's Available Commitment in respect of
         that Facility.

         "BASE CURRENCY" means Euro.

         "BASE CURRENCY AMOUNT" means, in relation to a Loan, the amount
         specified in the Utilisation Request delivered by a Borrower (or, as
         the case may be, by the Presenting Bank) for that Loan (or, if the
         amount requested is not denominated in the Base Currency, that amount
         converted into the Base Currency at the Agent's Spot Rate of Exchange
         on the date which is three Business Days before the Utilisation Date
         or, if later, on the date the Agent receives the Utilisation Request)
         adjusted to reflect any repayment, prepayment, consolidation or
         division of the Loan.

         "BORROWER" means the Company or any Additional Borrower unless it has
         ceased to be a Borrower in accordance with Clause 24 (Changes to the
         Obligors).

         "BREAK COSTS" means the amount (if any) by which:

         (a)      the interest (calculated without taking into account the
                  Facility A Margin, the Facility B Margin, or, as applicable,
                  the Facility C Margin) which a Lender should have received for
                  the period from the date of receipt of all or any part of its
                  participation in a Loan or Unpaid Sum to the last day of the
                  current Interest Period in respect of that Loan or Unpaid Sum,
                  had the principal amount or Unpaid Sum received been paid on
                  the last day of that Interest Period;

         exceeds:

         (b)      the amount which that Lender would be able to obtain by
                  placing an amount equal to the principal amount or Unpaid Sum
                  received by it on deposit with a leading bank in the Relevant
                  Interbank Market for a period starting on the Business Day
                  following receipt or recovery and ending on the last day of
                  the current Interest Period.

         "BUSINESS DAY" means a day (other than a Saturday or Sunday) on which
         banks are open for general business in London and Paris, and:

         (a)      (in relation to any date for payment or purchase of a currency
                  other than euro) the principal financial centre of the country
                  of that currency; or

         (b)      (in relation to any date for payment or purchase of euro) any
                  TARGET Day.

                                     - 4 -
<PAGE>

         "COMMITMENT" means a Facility A Commitment, a Facility B Commitment or
         a Facility C Commitment.

         "COMPLIANCE CERTIFICATE" means a certificate substantially in the form
         set out in Schedule 8 (Form of Compliance Certificate).

         "COMPANY'S CONSIDERATION SHARES" means the new shares of the Company to
         be offered to Target shareholders in consideration of the Shares
         tendered to the Offer pursuant to the terms thereof.

         "CONFIDENTIAL INFORMATION" means any information to be delivered by the
         Company pursuant to Clauses 19 (Information Undertakings) and 21.8
         (Offer) but excludes information that (a) is or becomes public
         knowledge other than as a direct or indirect result of any breach by
         any Finance Party of this Agreement or (b) is known by the Finance
         Parties (or any of them) before the date the information is disclosed
         to such Finance Party(ies) by the Company or is lawfully obtained by
         any Finance Party after that date, other than from a source which is
         connected with the Company and which, in either case, as far as the
         relevant Finance Party is aware, has not been obtained in violation of,
         and is not otherwise subject to, any obligation of confidentiality.

         "CONFIDENTIALITY UNDERTAKING" means a confidentiality undertaking
         substantially in the form set out in Schedule 10 (Form of
         Confidentiality Undertaking).

         "CONSOLIDATED SUBSIDIARY" means any company which is consolidated by
         way of "integration globale" in the audited consolidated financial
         statements of the Company from time to time.

         "DEFAULT" means an Event of Default or any event or circumstance
         specified in Clause 22 (Events of Default) which would (with the expiry
         of a grace period, the giving of notice, the making of any
         determination under the Finance Documents or any combination of any of
         the foregoing) be an Event of Default.

         "ENGAGEMENT LETTER" means the engagement letter dated on or about the
         date of this Agreement between the Mandated Lead Arrangers and the
         Company in relation to the Facility.

         "EURIBOR" means, in relation to any Loan in euro:

         (a)      the applicable Screen Rate; or

         (b)      (if no Screen Rate is available for the Interest Period of
                  that Loan) the arithmetic mean of the rates (rounded upwards
                  to four decimal places) as supplied to the Agent at its
                  request quoted by the Reference Banks to leading banks in the
                  European interbank market,

         as of the Specified Time on the Quotation Day for the offering of
         deposits in euro for a period comparable to the Interest Period of the
         relevant Loan.

         "EVENT OF DEFAULT" means any event or circumstance specified as such in
         Clause 22 (Events of Default).

         "FACILITY" means Facility A, Facility B and/or Facility C as the case
         may be.

         "FACILITY A" means the term loan facility made available under this
         Agreement as described in Clause 2 (The Facilities).

                                     - 5 -
<PAGE>

         "FACILITY A COMMITMENT" means:

         (a)      in relation to an Original Lender, the amount in the Base
                  Currency set opposite its name under the heading "Facility A
                  Commitment" in Part II of Schedule 1 (The Original Parties)
                  and the amount of any other Facility A Commitment transferred
                  to it under this Agreement; and

         (b)      in relation to any other Lender, the amount in the Base
                  Currency of any Facility A Commitment transferred to it under
                  this Agreement,

         to the extent not cancelled, reduced or transferred by it under this
         Agreement.

         "FACILITY A FINAL MATURITY DATE" means the date on which all the
         Facility A Loans shall be repaid in full, being the Facility A Original
         Final Maturity Date or, upon exercise of the First Extension Option,
         the Facility A First Extended Final Maturity Date or upon the exercise
         of the Second Extension Option, the Facility A Second Extended Final
         Maturity Date.

         "FACILITY A FIRST EXTENDED FINAL MATURITY DATE" means the date falling
         18 Months after the date of this Agreement (or if that Day is not a
         Business Day, the preceding Business Day).

         "FACILITY A LOAN" means a loan made or to be made under Facility A or
         the principal amount outstanding for the time being of that loan.

         "FACILITY A MARGIN" means the margin applicable to Facility A Loan as
         determined in accordance with Clause 9.1 (Facility A Calculation of
         Interest).

         "FACILITY A ORIGINAL FINAL MATURITY DATE" means the date falling 364
         days after the date of this Agreement (or if that Day is not a Business
         Day, the preceding Business Day).

         "FACILITY A SECOND EXTENDED FINAL MATURITY DATE" means the date falling
         24 Months after the date of this Agreement (or if that Day is not a
         Business Day, the preceding Business Day).

         "FACILITY B" means the term loan facility made available under this
         Agreement as described in Clause 2 (The Facilities).

         "FACILITY B COMMITMENT" means:

         (a)      in relation to an Original Lender, the amount in the Base
                  Currency set opposite its name under the heading "Facility B
                  Commitment" in Part II of Schedule 1 (The Original Parties)
                  and the amount of any other Facility B Commitment transferred
                  to it under this Agreement; and

         (b)      in relation to any other Lender, the amount in the Base
                  Currency of any Facility B Commitment transferred to it under
                  this Agreement,

         to the extent not cancelled, reduced or transferred by it under this
         Agreement.

         "FACILITY B LOAN" means a loan made or to be made under Facility B or
         the principal amount outstanding for the time being of that loan.

                                     - 6 -
<PAGE>

         "FACILITY B MARGIN" means the margin applicable to Facility B Loan as
         determined in accordance with Clause 9.2 (Facility B Calculation of
         Interest).

         "FACILITY B FINAL MATURITY DATE" means the date falling three years
         after the date of this Agreement (or if that Day is not a Business Day,
         the preceding Business Day).

         "FACILITY C" means the multicurrency revolving loan facility made
         available under this Agreement as described in Clause 2 (The
         Facilities).

         "FACILITY C COMMITMENT" means:

         (a)      in relation to an Original Lender, the amount in the Base
                  Currency set opposite its name under the heading "Facility C
                  Commitment" in Part II of Schedule 1 (The Original Parties)
                  and the amount of any other Facility C Commitment transferred
                  to it under this Agreement; and

         (b)      in relation to any other Lender, the amount in the Base
                  Currency of any Facility C Commitment transferred to it under
                  this Agreement,

         to the extent not cancelled, reduced or transferred by it under this
         Agreement.

         "FACILITY C FINAL MATURITY DATE" means the date falling five years
         after the date of this Agreement (or if that Day is not a Business Day,
         the preceding Business Day).

         "FACILITY C LOAN" means a loan made or to be made under Facility C or
         the principal amount outstanding for the time being of that loan.

         "FACILITY C MARGIN" means the margin applicable to Facility C Loan as
         determined in accordance with Clause 9.3 (Facility C Calculation of
         Interest).

         "FACILITY OFFICE" means the office or offices notified by a Lender to
         the Agent in writing on or before the date it becomes a Lender (or,
         following that date, by not less than five Business Days' written
         notice) as the office or offices through which it will perform its
         obligations under this Agreement.

         "FEE LETTER" means any letter or letters dated on or about the date of
         this Agreement between the Mandated Lead Arrangers and the Company (or
         the Agent and the Company) setting out any of the fees referred to in
         Clause 12 (Fees).

         "FINANCE DOCUMENT" means this Agreement, the Engagement Letter, any Fee
         Letter, any Accession Letter, any Guarantee, any Resignation Letter and
         any other document designated as such by the Agent and the Company.

         "FINANCE PARTY" means the Agent, a Mandated Lead Arranger or a Lender.

         "FINANCIAL INDEBTEDNESS" means any indebtedness for or in respect of:

         (a)      moneys borrowed;

         (b)      any amount raised by acceptance under any acceptance credit
                  facility;

         (c)      any amount raised pursuant to any note purchase facility or
                  the issue of bonds, notes, debentures, loan stock or any
                  similar instrument;

                                     - 7 -
<PAGE>

         (d)      the amount of any liability in respect of any lease or hire
                  purchase contract which would, in accordance with GAAP, be
                  treated as a finance or capital lease;

         (e)      receivables sold or discounted (other than any receivables to
                  the extent they are sold on a non-recourse basis);

         (f)      any amount raised under any other transaction (including any
                  forward sale or purchase agreement) having the commercial
                  effect of a borrowing;

         (g)      any derivative transaction entered into in connection with
                  protection against or benefit from fluctuation in any rate or
                  price (and, when calculating the value of any derivative
                  transaction, only the marked to market value shall be taken
                  into account);

         (h)      any counter-indemnity obligation in respect of a guarantee,
                  indemnity, bond, standby or documentary letter of credit or
                  any other instrument issued by a bank or financial
                  institution; and

         (i)      the amount of any liability in respect of any guarantee or
                  indemnity for any of the items referred to in paragraphs (a)
                  to (h) above.

         "FIRST EXTENSION OPTION" means the option available to the Company to
         request pursuant to clause 7.1(b) that the date on which all Facility A
         Loans shall be repaid in full be extended until the Facility A First
         Extended Final Maturity Date.

         "GAAP" means, in relation to any financial statements, generally
         accepted accounting principles in the jurisdiction in which the entity
         to which such financial statements relate is incorporated.

         "GROUP" means the Company and its Subsidiaries from time to time.

         "GUARANTEE" means a first demand guarantee (garantie a premiere
         demande) given by the Company in the form set out in Schedule 12 (Form
         of Guarantee).

         "GUARANTOR" means the Company in its capacity as guarantor under a
         Guarantee.

         "HOLDING COMPANY" means, in relation to a company or corporation, any
         other company or corporation in respect of which it is a Subsidiary.

         "INFORMATION MEMORANDUM" means the document in the form approved by the
         Company concerning the Group which, at the Company's request and on its
         behalf, will be prepared in relation to this transaction and
         distributed by the Mandated Lead Arrangers to selected financial
         institutions for the purpose of the syndication of the Facility.

         "INTEREST PERIOD" means, in relation to a Loan, each period determined
         in accordance with Clause 10 (Interest Periods) and, in relation to an
         Unpaid Sum, each period determined in accordance with Clause 9.7
         (Default interest).

         "LENDER" means:

         (a)      any Original Lender; and

                                     - 8 -
<PAGE>

         (b)      any bank or financial institution which has become a Party in
                  accordance with Clause 23 (Changes to the Lenders),

         which in each case has not ceased to be a Party in accordance with the
         terms of this Agreement.

         "LIBOR" means, in relation to any Loan in an Optional Currency:

         (a)      the applicable Screen Rate; or

         (b)      (if no Screen Rate is available for the currency or Interest
                  Period of that Loan) the arithmetic mean of the rates (rounded
                  upwards to four decimal places) as supplied to the Agent at
                  its request quoted by the Reference Banks to leading banks in
                  the London interbank market,

         as of the Specified Time on the Quotation Day for the offering of
         deposits in the currency of that Loan and for a period comparable to
         the Interest Period for that Loan.

         "LOAN" means a Facility A Loan, a Facility B Loan or a Facility C Loan.

         "L'OREAL" means L'Oreal SA, a French company whose registered office is
         at 14 rue Royale, 75008 Paris, registered under identification number
         632 012 100 RCS Paris.

         "MAJORITY LENDERS" means:

         (a)      if there are no Loans then outstanding, a Lender or Lenders
                  whose Commitments aggregate more than 66 2/3% of the Total
                  Commitments (or, if the Total Commitments have been reduced to
                  zero, aggregated more than 66 2/3% of the Total Commitments
                  immediately prior to the reduction); or

         (b)      at any other time, a Lender or Lenders whose participations in
                  the Loans then outstanding aggregate more than 66 2/3% of all
                  the Loans then outstanding.

         "MANDATORY COST" means the percentage rate per annum calculated by the
         Agent in accordance with Schedule 4 (Mandatory Cost formulae).

         "MARGIN ADJUSTMENT DATE" means the date falling six Months following
         the first Utilisation Date.

         "MATERIAL ADVERSE EFFECT" means a material adverse effect on (a) the
         financial condition or business of either the Company or the Group
         taken as a whole and (b) on the ability of the Company or the Obligors
         taken as a whole to perform and comply with their obligations under
         this Agreement and any other Finance Documents to which they are
         respectively party.

         "MATERIAL SUBSIDIARY" means, at any time, any Consolidated Subsidiary
         of the Company which is named in the list of Subsidiaries set out in
         Schedule 13 (Material Subsidiaries) and, following the date of delivery
         of the Company's annual audited consolidated financial statements
         pursuant to Clause 19.1(a), any Consolidated Subsidiary of the Company
         whose net turnover (excluding turnover arising from intra-group
         transactions) is equal to or greater than 5 per cent. (5%) of the
         consolidated net turnover of the Group or whose net result (as set out
         in its relevant annual audited financial statements) for any of the
         last three financial years was equal to or greater than 5 per cent.
         (5%) of the Net Result of the Group for the

                                     - 9 -
<PAGE>

         corresponding financial year, such determination being made by
         reference to the most recent annual financial statements of that
         Consolidated Subsidiary, consolidated where applicable, used for the
         purpose of the most recent annual audited consolidated financial
         statements of the Company, as certified on the first and each
         subsequent date of delivery of the Company's annual audited
         consolidated financial statements for the time being of the Company and
         provided that (i) a joint-venture company whose voting rights are held
         equally or in almost equal proportion by the Company and another entity
         which is not a member of the Group shall constitute a Material
         Subsidiary only if it cumulatively exceeds both thresholds set out
         above in respect of net turnover and net result and (ii) all Material
         Subsidiaries together with the Company shall represent in aggregate not
         less than 75 per cent. or more of the consolidated net turnover or Net
         Result of the Group.

         "MONTH" means a period starting on one day in a calendar month and
         ending on the numerically corresponding day in the next calendar month,
         except that:

         (a)      (subject to paragraph (c) below) if the numerically
                  corresponding day is not a Business Day, that period shall end
                  on the next Business Day in that calendar month in which that
                  period is to end if there is one, or if there is not, on the
                  immediately preceding Business Day;

         (b)      if there is no numerically corresponding day in the calendar
                  month in which that period is to end, that period shall end on
                  the last Business Day in that calendar month; and

         (c)      if an Interest Period begins on the last Business Day of a
                  calendar month, that Interest Period shall end on the last
                  Business Day in the calendar month in which that Interest
                  Period is to end.

         The above rules will only apply to the last Month of any period.

         "MOODY'S" means Moody's Investors Services (or any successor in title
         of similar standing).

         "NET RESULT" means the resultat net de l'ensemble consolide as set out
         in the Company's Original Financial Statements.

         "OBLIGOR" means a Borrower or the Guarantor.

         "OFFER" means the Original Offer and, as the case may be, the
         Additional Offer and/or the Squeeze-Out Offer.

         "OPTIONAL CURRENCY" means US dollars, Sterling and Japanese Yen.

         "ORIGINAL FINANCIAL STATEMENTS" means:

         (a)      in relation to the Company, its audited consolidated financial
                  statements together with its audited financial statements for
                  the financial year ended 31 December 2002.

         (b)      in relation to each Additional Borrower, its latest audited
                  financial statements together with its latest audited
                  consolidated financial statements (if any) available at the
                  date of its accession.

                                     - 10 -
<PAGE>

         "ORIGINAL OFFER" means an offer for all of the Shares of Target to be
         filed by the Company on the Announcement Date (as may be amended in
         accordance with Clause 21.8 (Offer) and includes any increased offer
         (surenchere) made in accordance with such Clause 21.8 (Offer)).

         "ORIGINAL OFFER RESULT NOTICE" means a notice published by the AMF of
         the final outcome of the Original Offer (avis de resultat) specifying
         (amongst other things) whether the Original Offer has been successful
         and the number of Shares that have been tendered to the Offer by their
         holders and which are to be acquired by the Company pursuant to that
         Original Offer.

         "ORIGINAL OFFER SETTLEMENT DATE" means the date on which an Acquisition
         Payment is to be made in respect of the Original Offer.

         "PARTICIPATING MEMBER STATE" means any member state of the European
         Communities that adopts or has adopted the euro as its lawful currency
         in accordance with legislation of the European Union relating to
         Economic and Monetary Union.

         "PARTY" means a party to this Agreement.

         "PRESENTING BANK" means, in relation to the Offer, BNP Paribas as
         banque presentatrice providing the guarantee referred to in article
         5-1-4 of the Reglement General du CMF.

         "QUALIFYING LENDER" has the meaning given to it in Clause 13 (Tax
         gross-up and indemnities).

         "QUOTATION DAY" means, in relation to any period for which an interest
         rate is to be determined:

         (a)      (if the currency is euro) two TARGET Days before the first day
                  of that period;

         (b)      (if the currency is sterling), the first day of that period;
                  or

         (c)      (for any other currency) two Business Days before the first
                  day of that period,

         unless market practice differs in the Relevant Interbank Market for a
         currency, in which case the Quotation Day for that currency will be
         determined by the Agent in accordance with market practice in the
         Relevant Interbank Market (and if quotations would normally be given by
         leading banks in the Relevant Interbank Market on more than one day,
         the Quotation Day will be the last of those days).

         "REFERENCE BANKS" means, in relation to EURIBOR, the principal Paris
         offices of BNP Paribas, HSBC-CCF and Citibank N.A. and, in relation to
         LIBOR, the principal office in London of BNP Paribas, HSBC and Citibank
         N.A. or such other banks as may be appointed by the Agent in
         consultation with the Company.

         "RELEVANT INTERBANK MARKET" means in relation to euro, the European
         interbank market and, in relation to any other currency, the London
         interbank market.

         "REPEATING REPRESENTATIONS" means each of the representations set out
         in Clause 18 other than those set out in Clauses 18.4 (Power and
         authority), 18.10 (No Misleading information), 18.11 (Financial
         Statements).

                                     - 11 -
<PAGE>

         "RESERVATIONS" means any general principles of French law limiting
         rights and obligations arising under any agreement which are
         specifically referred to in the legal opinion to be delivered by
         Freshfields Bruckhaus Deringer to the Finance Parties.

         "RESIGNATION LETTER" means a letter substantially in the form set out
         in Schedule 7 (Form of Resignation Letter).

         "ROLLOVER LOAN" means one or more Facility C Loans:

         (a)      made or to be made on the same day that a maturing Facility C
                  Loan is due to be repaid;

         (b)      the aggregate amount of which is equal to or less than the
                  maturing Facility C Loan;

         (c)      in the same currency as the maturing Facility C Loan (unless
                  it arose as a result of the operation of Clause 6.2
                  (Unavailability of a currency)); and

         (d)      made or to be made to the same Borrower for the purpose of
                  refinancing a maturing Facility C Loan.

         "SCREEN RATE" means:

         (a)      in relation to EURIBOR, the percentage rate per annum
                  determined by the Banking Federation of the European Union for
                  the relevant period; and

         (b)      in relation, to LIBOR, the British Bankers Association
                  Interest Settlement Rate for the relevant currency and period

         displayed on the appropriate page of the Telerate screen. If the agreed
         page is replaced or service ceases to be available, the Agent may
         specify another page or service displaying the appropriate rate after
         consultation with the Company and the Lenders.

         "SECOND EXTENSION OPTION" means the option available to the Company to
         request pursuant to clause 7.1(c) that the date on which all Facility A
         Loans shall be repaid in full be extended until the Facility A Second
         Extended Final Maturity Date.

         "SECURITY" means a mortgage, charge, pledge, lien or other security
         interest securing any obligation of any person or any other agreement
         or arrangement having a similar effect.

         "SELECTION NOTICE" means a notice substantially in the form set out in
         Part II of Schedule 3 (Requests) given in accordance with Clause 10
         (Interest Periods) in relation to a Facility A and Facility B.

         "SETTLEMENT ACCOUNT" means the account confirmed by the Presenting Bank
         to the Agent in the relevant Utilisation Request as being the account
         into which an Acquisition Payment is to be made.

         "SETTLEMENT DATE" means a date on which an Acquisition Payment is to be
         made.

         "SHARES" means all the issued shares of Target (including any shares in
         Target issued or to be issued whilst an Offer remains open for
         acceptance).

                                     - 12 -
<PAGE>

         "S&P" means Standard & Poors Rating Services, a division of The
         McGraw-Hill Inc (or any successor in title of similar standing).

         "SPECIFIED TIME" means a time determined in accordance with Schedule 11
         (Timetables).

         "SQUEEZE-OUT OFFER" means any offre publique de retrait followed by an
         offre publique de retrait obligatoire which might be made by the
         Company for all of the then outstanding Shares of the Target, following
         the completion of the Original Offer, or as the case may be, the
         Additional Offer.

         "SQUEEZE-OUT OFFER ACQUISITION PAYMENT" means a payment of the amount
         of cash consideration required to be paid by or on behalf of the
         Company under the Squeeze-Out Offer on a Squeeze-Out Settlement Date in
         respect of the Shares tendered to the Squeeze-Out Offer.

         "SQUEEZE-OUT SETTLEMENT DATE" means a date on which a Squeeze-Out
         Acquisition Payment is to be made.

         "SUBSIDIARY" means, in relation to any company, another company which
         is controlled by it within the meaning of article L.233-3 of the French
         Code de Commerce.

         "SYNDICATION DATE" means the date falling on the earlier of (i) the
         date upon which the Mandated Lead Arrangers notify the Company that the
         syndication of the Facility has been completed or (ii) 31 December
         2004.

         "TARGET" means Aventis SA, a French company whose registered office is
         at 16 avenue de l'Europe, 67300 Schiltigheim, registered under
         identification number 542 064 308 RCS Strasbourg.

         "TARGET" means Trans-European Automated Real-time Gross Settlement
         Express Transfer payment system.

         "TARGET DAY" means any day on which TARGET is open for the settlement
         of payments in euro.

         "TARGET GROUP" means Target and its Subsidiaries from time to time.

         "TAX" means any tax, levy, impost, duty or other charge or withholding
         of a similar nature imposed or collected by any country or State or by
         any local, national or supranational body, authority or organisation
         (including any penalty or interest payable in connection with any
         failure to pay or any delay in paying any of the same).

         "TOTAL" means Total SA, a French company whose registered office is at
         2 place de la Coupole, La Defense 6, 92400 Courbevoie, registered under
         identification number 542 051 180 RCS Nanterre.

         "TOTAL COMMITMENTS" means the aggregate of the Total Facility A
         Commitments, the Total Facility B Commitments and the Total Facility C
         Commitments, being EUR 12,000,000,000 at the date of this Agreement.

         "TOTAL FACILITY A COMMITMENTS" means the aggregate of the Facility A
         Commitments, being EUR 4,000,000,000 at the date of this Agreement.

                                     - 13 -
<PAGE>

         "TOTAL FACILITY B COMMITMENTS" means the aggregate of the Facility B
         Commitments, being EUR 4,000,000,000 at the date of this Agreement.

         "TOTAL FACILITY C COMMITMENTS" means the aggregate of the Facility C
         Commitments, being EUR 4,000,000,000 at the date of this Agreement.

         "TRANSFER AGREEMENT" means an agreement substantially in the form set
         out in Schedule 5 (Form of Transfer Agreement) or any other form agreed
         between the Agent and the Company.

         "TRANSFER DATE" means, in relation to a transfer, the later of:

         (a)      the proposed Transfer Date specified in the Transfer
                  Agreement; and

         (b)      the date on which the Agent executes the Transfer Agreement.

         "UNPAID SUM" means any sum due and payable but unpaid by a Borrower
         under the Finance Documents.

         "UTILISATION" means a utilisation of a Facility.

         "UTILISATION DATE" means the date of a Utilisation, being the date on
         which the relevant Loan is to be made.

         "UTILISATION REQUEST" means a notice substantially in any of the forms
         set out in Part I of Schedule 3 (Requests).

         "VAT" means value added tax.

1.2      CONSTRUCTION

         (a)      Unless a contrary indication appears, any reference in this
                  Agreement to:

                  (i)      the "AGENT", any "MANDATED LEAD ARRANGER", any
                           "FINANCE PARTY", any "LENDER", any "OBLIGOR" or any
                           "PARTY" shall be construed so as to include its
                           successors in title, permitted assigns and permitted
                           transferees;

                  (ii)     "ASSETS" includes present and future properties,
                           revenues and rights of every description;

                  (iii)    "CORPORATE RECONSTRUCTION" includes in relation to
                           any company any contribution of part of its business
                           in consideration of shares (apport partiel d'actifs)
                           and any demerger (scission) implemented in accordance
                           with articles L.236-1 to L.236-24 of the French Code
                           de Commerce;

                  (iv)     a "FINANCE DOCUMENT" or any other agreement or
                           instrument is a reference to that Finance Document or
                           other agreement or instrument as amended or novated;

                  (v)      "GROSS NEGLIGENCE" means "faute lourde";

                  (vi)     a "GUARANTEE" includes any "cautionnement", "aval"
                           and any "garantie" which is independent from the debt
                           to which it relates;

                                     - 14 -
<PAGE>

                  (vii)    "INDEBTEDNESS" includes any obligation (whether
                           incurred as principal or as surety) for the payment
                           or repayment of money, whether present or future,
                           actual or contingent;

                  (viii)   "MERGER" includes any fusion implemented in
                           accordance with articles L.236-1 to L.236-24 of the
                           French Code de Commerce;

                  (ix)     a "PERSON" includes any person, firm, company,
                           corporation, government, state or agency of a state
                           or any grouping (whether or not having separate legal
                           personality) or two or more of the foregoing;

                  (x)      a "REGULATION" includes any regulation, rule,
                           official directive, request or guideline (whether or
                           not having the force of law) of any governmental,
                           intergovernmental or supranational body, agency,
                           department or regulatory, self-regulatory or other
                           authority or organisation;

                  (xi)     a "SECURITY INTEREST" includes any type of security
                           (surete reelle) and transfer by way of security;

                  (xii)    "SUCCESSFUL" means in relation to the Original Offer
                           that the conditions relating to such offer have been
                           met (including the condition relating to the
                           acceptance of the Original Offer by holders of Shares
                           representing a minimum of 50% of the share capital of
                           Target) and that it will have a "suite positive"
                           within the meaning of article 5-2-3 of the Reglement
                           General du CMF;

                  (xiii)   "TRUSTEE, FIDUCIARY AND FIDUCIARY DUTY" has in each
                           case the meaning given to such term under any
                           applicable law;

                  (xiv)    "WILFUL MISCONDUCT" means "dol";

                  (xv)     a provision of law is a reference to that provision
                           as amended or re-enacted; and

                  (xvi)    unless a contrary indication appears, a time of day
                           is a reference to Paris time.

         (b)      Section, Clause and Schedule headings are for ease of
                  reference only.

         (c)      Unless a contrary indication appears, a term used in any other
                  Finance Document or in any notice given under or in connection
                  with any Finance Document has the same meaning in that Finance
                  Document or notice as in this Agreement.

         (d)      A Default (other than an Event of Default) is "CONTINUING" if
                  it has not been remedied or waived and an Event of Default is
                  "CONTINUING" if it has not been waived.

                                     - 15 -
<PAGE>

                                    SECTION 2
                                 THE FACILITIES

2.       THE FACILITIES

2.1      THE FACILITIES

         Subject to the terms of this Agreement, the Lenders make available:

         (a)      to the Company only, a Euro term loan facility in an aggregate
                  maximum amount equal to the Total Facility A Commitments;

         (b)      to the Company only, a Euro term loan facility in an aggregate
                  maximum amount equal to the Total Facility B Commitments; and

         (c)      to the Company and the Additional Borrowers (subject to
                  provisions of Clause 24.2 (Additional Borrowers)), a
                  multicurrency revolving loan facility in an aggregate maximum
                  amount equal to the Total Facility C Commitments.

2.2      FINANCE PARTIES' RIGHTS AND OBLIGATIONS

         (a)      The obligations of each Finance Party under the Finance
                  Documents are several (conjointes et non solidaires). Failure
                  by a Finance Party to perform its obligations under the
                  Finance Documents does not affect the obligations of any other
                  Party under the Finance Documents. No Finance Party is
                  responsible for the obligations of any other Finance Party
                  under the Finance Documents.

         (b)      The rights of each Finance Party under or in connection with
                  the Finance Documents are separate and independent rights and
                  any debt arising under the Finance Documents to a Finance
                  Party from a Borrower shall be a separate and independent
                  debt.

         (c)      A Finance Party may, except as otherwise stated in the Finance
                  Documents, separately enforce its rights under the Finance
                  Documents.

3.       PURPOSE

3.1      PURPOSE

         (a)      The Company shall apply all amounts borrowed by it under
                  Facility A and Facility B towards the financing of the
                  Acquisition Payment.

         (b)      The Company shall apply all amounts borrowed by it under
                  Facility C towards:

                  (i)      the financing of the reasonable fees, costs and
                           expenses incurred by it in connection with the Offer;

                  (ii)     the financing of the general corporate purpose of the
                           Group;

                  (iii)    the refinancing of existing indebtedness of Target;
                           or,

                                     - 16 -
<PAGE>

                  (iv)     any other purpose which may be agreed from time to
                           time between the Company and the Majority Lenders.

         (c)      Each Additional Borrower shall apply all amounts borrowed by
                  it under Facility C towards:

                  (i)      the financing of its general corporate purpose; and

                  (ii)     the refinancing of its existing indebtedness.

3.2      MONITORING

         No Finance Party is bound to monitor or verify the application of any
         amount borrowed pursuant to this Agreement.

4.       CONDITIONS OF UTILISATION

4.1      INITIAL CONDITIONS PRECEDENT

         (a)      No Utilisation Request may be delivered unless the Agent has
                  received all of the documents and other evidence listed in
                  Part I of Schedule 2 (Conditions precedent to signing) in form
                  and substance satisfactory to the Agent. The Agent shall
                  notify the Company and the Lenders promptly upon being so
                  satisfied.

         (b)      No Utilisation shall be made under any Facility unless the
                  Original Offer is successful.

4.2      CONDITIONS PRECEDENT TO UTILISATION UNDER FACILITY A AND FACILITY B

         (a)      On each Original Offer Settlement Date, no Utilisation shall
                  be made under Facility A or Facility B unless the Agent has
                  received all of the documents and other evidence listed in
                  Section 1 of Part II of Schedule 2 (Conditions precedent to
                  Utilisation on each Original Settlement Date) in form and
                  substance satisfactory to the Agent. The Agent shall notify
                  the Company and the Lenders promptly upon being so satisfied.

         (b)      On each Additional Offer Settlement Date (if any), no
                  Utilisation shall be made under Facility A or Facility B
                  unless the Agent has received all of the documents and other
                  evidence listed in Section 2 of Part II of Schedule 2
                  (Conditions precedent to Utilisation on each Additional Offer
                  Settlement Date) in form and substance satisfactory to the
                  Agent. The Agent shall notify the Company and the Lenders
                  promptly upon being so satisfied.

         (c)      On each Squeeze-Out Offer Settlement Date (if any), no
                  Utilisation shall be made under Facility A or Facility B
                  unless the Agent has received all of the documents and other
                  evidence listed in Section 3 of Part II of Schedule 2
                  (Conditions precedent to Utilisation on each Squeeze-Out Offer
                  Settlement Date) in form and substance satisfactory to the
                  Agent. The Agent shall notify the Company and the Lenders
                  promptly upon being so satisfied.

         (d)      Following the expiry of the Certain Funds Period, no
                  Utilisation shall be made under Facility A or Facility B if:

                  (i)      an Event of Default or a Default is continuing or
                           would result from the proposed Loan;

                                     - 17 -
<PAGE>

                  (ii)     any Repeating Representations to be made by the
                           Company is untrue in any material respects.

4.3      CONDITIONS PRECEDENT TO UTILISATION UNDER FACILITY C

         (a)      No Utilisation shall be made under Facility C prior to the day
                  on which the first Settlement Date occurs.

         (b)      No Utilisation shall be made under Facility C if:

                  (i)      an Event of Default or a Default is continuing or
                           would result from the proposed Facility C Loan;

                  (ii)     any Repeating Representations to be made by each
                           Obligor is untrue in any material respects.

4.4      CERTAIN FUNDS PERIOD

         (a)      Notwithstanding any term of this Agreement, during the Certain
                  Funds Period, the Lenders shall not be entitled to:

                  (i)      refuse to participate in or make available any
                           Acquisition Loan;

                  (ii)     cancel a Commitment relating to any Acquisition Loan;
                           or

                  (iii)    exercise any right of rescission or similar right or
                           remedy which it may have in relation to any
                           Acquisition Loan,

                  except as provided below in this Clause 4.4.

         (b)      Paragraph (a) does not apply if, in the opinion of the
                  Majority Lenders:

                  (i)      a Major Representation is not correct or will not be
                           correct immediately after the relevant Acquisition
                           Loan is made; or

                  (ii)     a Major Default is continuing or will result from the
                           making of the relevant Acquisition Loan.

         (c)      Paragraph (a) does not apply if the Company has not delivered
                  all of the documents and other evidence required to be
                  delivered pursuant to clause 4.2 (Conditions Precedent to
                  Utilisation under Facility A and Facility B) in form and
                  substance satisfactory to the Agent.

         (d)      Nothing in this Clause 4.4 will affect the right of any Lender
                  to refuse to participate in or make available any Acquisition
                  Loan or to cancel a Commitment relating thereto if it is
                  unlawful for such Lender to perform any of its obligations
                  under the Finance Documents.

         (e)      Nothing in this Clause 4.4 will affect the rights of any
                  Finance Party in respect of any Default which is continuing
                  upon expiry of the Certain Funds Period irrespective of
                  whether that Default occurred during the Certain Funds Period
                  or not.

         (f)      In any case, the Company shall comply with the requirements
                  set out in Clause 5 (Utilisation).

                                     - 18 -
<PAGE>

         (g)      In this Clause 4.4:

                  "CERTAIN FUNDS PERIOD" means the period beginning on the
                  Announcement Date and ending 11 Months following the
                  Announcement Date.

                  "MAJOR BREACH" means a breach of:

                     (i)      Clause 21.2 (Compliance with laws);

                     (ii)     Clause 21.3 (Negative pledge) but excluding any
                              breach by a member of the Target Group;

                     (iii)    Clause 21.4 (Disposals);

                     (iv)     Clause 21.8 (Offer),

                  provided that in respect of paragraph (i), (ii) and (iii)
                  above, such breach shall have or is reasonably likely to have
                  a Material Adverse Effect.

                  "MAJOR DEFAULT" means any of the following Events of Default:

                     (i)      Clause 22.1 (Non-payment);

                     (ii)     Clause 22.3 (Other obligations) but only insofar
                              as it constitutes a Major Breach;

                     (iii)    Clause 22.4 (Misrepresentation) but only insofar
                              as it relates to a Major Representation;

                     (iv)     Clause 22.5 (Cross-Default) but only if it relates
                              to a payment default under the relevant Financial
                              Indebtedness if in excess of EUR 200,000,000 and
                              incurred by a member of the Group (excluding for
                              the avoidance of doubt any member of the Target
                              Group) and the creditor of such Financial
                              Indebtedness has notified its intent to accelerate
                              such Financial Indebtedness; or,

                     (v)      Clauses 22.6 (Insolvency) and 22.7 (Insolvency
                              proceedings) but only insofar as it relates to the
                              Company, any of its Material Subsidiaries or
                              Target.

                  "MAJOR REPRESENTATION" means any of the following
                  representations contained in this Agreement:

                     (i)      Clause 18.1 (Status);

                     (ii)     Clause 18.2 (Binding Obligations);

                     (iii)    Clause 18.3 (Non-contravention with other
                              obligations);

                     (iv)     Clause 18.4 (Power and authority); or

                     (v)      Clause 18.11 (a) and (b) (Financial Statements).

                                     - 19 -
<PAGE>

4.5      MAXIMUM NUMBER OF LOANS

         (a)      The Presenting Bank may deliver as many Utilisation Requests
                  as necessary in relation to Acquisition Loans for the purpose
                  of achieving payment of Acquisition Payment in accordance with
                  timetables and prescriptions set out by any relevant market
                  authority.

         (b)      A Borrower may not deliver a Utilisation Request if as a
                  result of the proposed Utilisation 10 or more Facility C Loans
                  would be outstanding.

         (c)      Any Loan made by a single Lender under Clause 6.2
                  (Unavailability of a currency) shall not be taken into account
                  in this Clause 4.5.

                                     - 20 -
<PAGE>

                                    SECTION 3
                                   UTILISATION

5.       UTILISATION

5.1      UTILISATION UNDER FACILITY A AND FACILITY B

         (a)      Utilisation shall be made under Facility A and Facility B on a
                  Settlement Date only and shall be made under each such
                  Facility on a prorata basis (if such Utilisation is made prior
                  to the Facility A Final Maturity Date).

         (b)      Facility A or Facility B may be utilised by delivery to the
                  Agent, by no later than 3 Business Days prior to the relevant
                  Settlement Date, of a duly completed Utilisation Request
                  issued by the Presenting Bank.

         (c)      Each Utilisation Request is irrevocable and will not be
                  regarded as having been duly completed unless:

                  (i)      it identifies the Facility to be utilised;

                  (ii)     the proposed Utilisation Date is a Settlement Date;

                  (iii)    the currency is the Base Currency;

                  (iv)     the amount of the Utilisation is no greater than the
                           Available Facility;

                  (v)      the proposed Interest Period complies with Clause 10
                           (Interest Periods); and

                  (vi)     it indicates the Settlement Account to which the
                           relevant Loan shall be paid.

         (d)      Only one Loan may be requested in each Utilisation Request.

5.2      UTILISATION UNDER FACILITY C

         (a)      A Borrower may utilise Facility C by delivery to the Agent of
                  a duly completed Utilisation Request no later than 3 Business
                  Days prior to the relevant Utilisation Date.

         (b)      No Utilisation shall be made under Facility C prior to the day
                  on which the first Settlement Date occurs.

         (c)      Each Utilisation Request is irrevocable and will not be
                  regarded as having been duly completed unless:

                  (i)      the proposed Utilisation Date is a Business Day
                           within the Availability Period applicable to Facility
                           C;

                  (ii)     the currency of the Utilisation comply with Clause
                           5.2.(e);

                  (iii)    the amount of the Utilisation comply with Clause
                           5.2.(f); and

                                     - 21 -
<PAGE>

                  (iv)     the proposed Interest Period complies with Clause 10
                           (Interest Periods).

         (d)      Only one Loan may be requested in each Utilisation Request.

         (e)      The currency specified in a Utilisation Request must be the
                  Base Currency or an Optional Currency.

         (f)      The amount of the proposed Facility C Loan must be in a
                  minimum Base Currency Amount of EUR 100,000,000 (and, in
                  integral multiple Base Currency Amounts of EUR 20,000,000) or,
                  if less, the Available Facility.

         (g)      Unless otherwise agreed in writing by the Majority Lenders, no
                  Utilisation by an Additional Borrower may take place if as a
                  result of such Utilisation, the aggregate Facility C Loans in
                  respect of such Additional Borrower would exceed (i) for
                  Target, EUR 4,000,000,000, and (ii) for any other Additional
                  Borrower, the borrowing limit agreed by the Majority Lenders
                  at the time of the accession to this Agreement of such
                  Additional Borrower as provided for in Clause 24.2 (Additional
                  Borrowers).

5.3      UTILISATION REQUEST BY THE PRESENTING BANK

         In relation to the financing of any Acquisition Payment and each time
         any such Acquisition Payment is requested to be paid in accordance with
         applicable timetables and prescriptions set out by any relevant market
         authority, Utilisation Requests shall be made solely by the Presenting
         Bank in accordance with Clause 5.1 (Utilisation under Facility A and
         Facility B).

         To that effect and in consideration of the Presenting Bank providing
         the guarantee referred to in article 5-1-4 of the Reglement General du
         CMF, the Company hereby irrevocably waives any rights to make any
         Utilisation for the purpose of financing any Acquisition Payment and
         delegates all such rights to the Presenting Bank which accepts such
         delegation and agrees to be a party to this Agreement for this sole
         purpose.

         The Company agrees that delivery of an Utilisation Request by the
         Presenting Bank shall constitute a confirmation by the Company that
         each applicable condition to be satisfied on the date of this
         Utilisation Request pursuant to Clauses 4.1 (Initial conditions
         precedent) and 4.2 (Conditions precedent to Utilisation under Facility
         A and Facility B) is satisfied on such date.

         In the event that the Presenting Bank does no longer act as banque
         presentatrice under the Additional Offer and/or, as the case may be,
         under the Squeeze-Out Offer, no Utilisation shall be made for the
         purpose of financing an Acquisition Payment under the Additional Offer
         and/or, as the case may be, under the Squeeze-Out Offer until and
         unless the credit institution acting as banque presentatrice under the
         Additional Offer and/or, as the case may be, under the Squeeze-Out
         Offer accedes to this Agreement and accepts to be bound by the
         provisions of this Clause 5 (Utilisation).

                                     - 22 -
<PAGE>

5.4      LENDERS' PARTICIPATION

         (a)      If the applicable conditions set out in this Agreement have
                  been met, each Lender shall make its participation in each
                  Loan available by the Utilisation Date through its Facility
                  Office.

         (b)      The amount of each Lender's participation in each Loan will be
                  equal to the proportion borne by its Available Commitment to
                  the Available Facility immediately prior to making the Loan.

         (c)      The Agent shall determine the Base Currency Amount of each
                  Facility C Loan which is to be made in one Optional Currency
                  and shall notify each Lender of the amount, currency and the
                  Base Currency Amount of each Loan and the amount of its
                  participation in that Loan, in each case by the Specified
                  Time.

6.       OPTIONAL CURRENCIES

6.1      SELECTION OF CURRENCY

         A Borrower (or the Company on behalf of a Borrower) shall select the
         currency of a Facility C Loan in a Utilisation Request.

6.2      UNAVAILABILITY OF A CURRENCY

         (a)      If before the Specified Time on any Quotation Day:

                  (i)      a Lender notifies the Agent that the Optional
                           Currency requested is not readily available to it in
                           the amount required; or

                  (ii)     a Lender notifies the Agent that compliance with its
                           obligation to participate in a Loan in the Optional
                           Currency would contravene a law or regulation
                           applicable to it,

                  the Agent will give notice to the relevant Borrower to that
                  effect by the Specified Time on that day. In this event, any
                  Lender that gives notice pursuant to this Clause 6.2(a) will
                  be required to participate in the Loan in the Base Currency
                  (in an amount equal to that Lender's proportion of the Base
                  Currency Amount or, in respect of a Rollover Loan, an amount
                  equal to that Lender's proportion of the Base Currency Amount
                  of the Rollover Loan that is due to be made) and its
                  participation will be treated as a separate Loan denominated
                  in the Base Currency during that Interest Period.

         (b)      Paragraph (a)(i) of this clause 6.2 shall not apply in
                  relation to Sterling or US Dollars.

6.3      AGENT'S CALCULATIONS

         Each Lender's participation in a Loan will be determined in accordance
         with paragraph (b) of Clause 5.4 (Lenders' participation).

                                     - 23 -
<PAGE>

                                    SECTION 4
                     REPAYMENT, PREPAYMENT AND CANCELLATION

7.       REPAYMENT

7.1      REPAYMENT OF FACILITY A LOANS

         (a)      The Company must repay the Facility A Loans in full on the
                  Facility A Original Final Maturity Date (subject to the
                  exercise of the First Extension Option in accordance with the
                  provisions of paragraph (b) below and, as the case may be, of
                  the Second Extension Option in accordance with the provisions
                  of paragraph (c) below).

         (b)      The Company shall be entitled at any time between the date
                  falling 60 days and the date falling 30 days before the
                  Facility A Original Final Maturity Date to request that the
                  date on which the Facility A Loans shall be repaid in full
                  shall be the Facility A First Extended Final Maturity Date by
                  giving a notice in writing to the Agent to that effect.

                  The First Extension Option shall be effective on the date of
                  the Facility A Original Final Maturity Date provided that on
                  such date:

                  (i)      no Event of Default or Default is continuing or would
                           result from the exercise of the First Extension
                           Option;

                  (ii)     the Repeating Representations to be made by the
                           Company are true in all material respects; and

                  (iii)    the Company has paid the extension fee referred to in
                           paragraph (a) of Clause 12.4 (Extension Fee).

         (c)      To the extent that the Company has exercised the First
                  Extension Option, The Company shall be entitled at any time
                  between the date falling 60 days and the date falling 30 days
                  before the Facility A First Extended Final Maturity Date to
                  request that the date on which the Facility A Loans shall be
                  repaid in full shall be the Facility A Second Extended Final
                  Maturity Date by giving a notice in writing to the Agent to
                  that effect.

                  The Second Extension Option shall be effective on the date of
                  the Facility A First Extended Final Maturity Date provided
                  that on such date:

                  (i)      no Event of Default or Default is continuing or would
                           result from the exercise of the Second Extension
                           Option;

                  (ii)     the Repeating Representations to be made by the
                           Company are true in all material respects; and

                  (iii)    the Company has paid the extension fee referred to in
                           paragraph (b) of Clause 12.4 (Extension Fee).

         (d)      The Company may not reborrow any part of Facility A which is
                  repaid.

                                     - 24 -
<PAGE>

7.2      REPAYMENT OF FACILITY B LOANS

         (a)      The Company must repay the Facility B Loans in full on the
                  Facility B Final Maturity Date.

         (b)      The Company may not reborrow any part of Facility B which is
                  repaid.

7.3      REPAYMENT OF FACILITY C LOANS

         (a)      Each Borrower which has drawn a Facility C Loan shall repay
                  that Facility C Loan on the last day of its Interest Period.

         (b)      Subject to the other terms of this Agreement, any amount
                  repaid under paragraph (a) may be reborrowed.

         (c)      No Borrower may reborrow any part of Facility C following the
                  Facility C Final Maturity Date.

8.       PREPAYMENT AND CANCELLATION

8.1      ILLEGALITY

         If it becomes unlawful in any applicable jurisdiction for a Lender to
         perform any of its obligations as contemplated by this Agreement or to
         fund or maintain its participation in any Loan:

         (a)      that Lender shall promptly notify the Agent upon becoming
                  aware of that event;

         (b)      upon the Agent notifying the Company, the Commitment of that
                  Lender will be immediately cancelled; and

         (c)      each Borrower shall repay that Lender's participation in the
                  Loans made to that Borrower on the last day of the Interest
                  Period for each Loan occurring after the Agent has notified
                  the Company or, if earlier, the date specified by the Lender
                  in the notice delivered to the Agent (being no earlier than
                  the last day of any applicable grace period permitted by law).

8.2      CHANGE OF CONTROL OF THE COMPANY

         (a)      If any person (other than L'Oreal or Total) or group of
                  persons acting in concert (other than a concert in which
                  L'Oreal and/or Total have a majority stake) acquires more than
                  50% of the voting rights of the Company:

                  (i)      the Company shall promptly notify the Agent upon
                           becoming aware of that event and shall consult with
                           the Lenders for a 60 days period commencing on the
                           date of the notification so as to keep their
                           respective Commitment outstanding following the
                           occurrence of that event;

                  (ii)     at the end of such 60 days period, each Lender, by
                           not less than 15 days notice to the Company, may
                           cancel its participation in the Facilities and
                           declare all its participations in outstanding Loans,
                           together with accrued interest, and all other amounts
                           accrued under the Finance Documents immediately due
                           and payable to it,

                                     - 25 -
<PAGE>

                           whereupon the participation of such Lenders in the
                           Facilities will be cancelled and all such outstanding
                           amounts will become immediately due and payable.

         (b)      For the purpose of paragraph (a) above "ACTING IN CONCERT" has
                  the meaning given in article L.233-10 of the French Code de
                  Commerce.

8.3      VOLUNTARY CANCELLATION

         The Company may, if it gives the Agent not less than 10 Business Days'
         (or such shorter period as the Majority Lenders may agree) prior
         notice, cancel the whole or any part (being a minimum amount of EUR
         100,000,000) of an Available Facility. Any cancellation under this
         Clause 8.3, if in respect of either of Facility A or Facility B, shall
         be made under both Facility A and Facility B on a prorata basis as long
         as there remains any Available Commitment under either Facility. Any
         cancellation under this Clause 8.3 shall reduce the Commitments of the
         Lenders rateably under the Facility concerned.

         No cancellation shall be requested by the Company prior to the expiry
         of the Certain Funds Period.

8.4      MANDATORY CANCELLATION

         All Commitments shall be automatically cancelled if:

             (a)      the Original Offer and the note d'information relating
                      thereto is not filed with the AMF within 10 Business Days
                      following the signing of this Agreement (unless otherwise
                      agreed by the Lenders);

             (b)      at any time following the Announcement Date, the Company
                      exercises any right it may have under any applicable
                      regulation to withdraw the Original Offer;

             (c)      at any time following the Announcement Date, an Original
                      Offer Result Notice is issued evidencing that the Original
                      Offer has not been successful;

             (d)      no Original Offer Result Notice has been issued by the AMF
                      prior to the end of a 11 Month period following the
                      Announcement Date.

8.5      VOLUNTARY PREPAYMENT

         (a)      The Company may, if it gives the Agent not less than 10
                  Business Days' (or such shorter period as the Majority Lenders
                  may agree) prior notice, prepay the whole or any part of the
                  Facilities provided that amounts voluntary prepaid shall be
                  applied in priority (i) towards the discharge of sums due
                  under Facility A and Facility B on a prorata basis as long as
                  any sums remain outstanding under both Facility A and Facility
                  B or (ii) if no sums remain outstanding under Facility A,
                  towards the discharge of sums due under Facility B (as long as
                  any sums remains outstanding under Facility B). No Amounts
                  shall be prepaid under Facility C unless and until no amounts
                  remain outstanding under Facility A and Facility B.

         (b)      Each Facility shall be cancelled by an amount equal to the
                  amount prepaid under such Facility.

                                     - 26 -
<PAGE>

8.6      RIGHT OF REPAYMENT AND CANCELLATION IN RELATION TO A SINGLE LENDER

         (a)      If:

                  (i)      any sum payable to any Lender by an Obligor is
                           required to be increased under paragraph (c) of
                           Clause 13.2 (Tax gross-up) or under an equivalent
                           provision of any Finance Document;

                  (ii)     any Lender claims indemnification from the Company
                           under Clause 13.3 (Tax indemnity) or Clause 14.1
                           (Increased costs); or

                  (iii)    the Additional Cost Rate calculated for any Lender in
                           accordance with Schedule 4 (Mandatory Cost Formulae)
                           is greater than zero,

                  the Company may, whilst (in the case of paragraphs (i) and
                  (ii) above) the circumstance giving rise to the requirement or
                  indemnification continues or (in the case of paragraph (iii)
                  above) that Additional Cost Rate is greater than zero, give
                  the Agent notice of cancellation of the Commitment of that
                  Lender and its intention to procure the repayment of that
                  Lender's participation in the Loans.

         (b)      On receipt of a notice referred to in paragraph (a) above, the
                  Commitment of that Lender shall immediately be reduced to
                  zero.

         (c)      On the last day of each Interest Period which ends after the
                  Company has given notice under paragraph (a) above (or, if
                  earlier, the date specified by the Company in that notice),
                  each Borrower to which a Loan is outstanding shall repay that
                  Lender's participation in that Loan.

8.7      MANDATORY PREPAYMENT IN RELATION TO A SINGLE LENDER

         If it becomes unlawful for a Borrower to perform any of its obligations
         to any Lender under paragraph (c) of Clause 13.2 (Tax gross-up) or
         under an equivalent provision of any Finance Document,

         (a)      the Company shall promptly notify the Agent upon becoming
                  aware of that event;

         (b)      that Borrower shall repay that Lender's participation in the
                  Loans made to that Borrower on the last day of each Interest
                  Period which ends after the Company has given notice under
                  paragraph (a) above or, if earlier, the date specified by that
                  Lender in a notice delivered to the Agent (being no earlier
                  than the last day of any applicable grace period permitted by
                  law).

8.8      MANDATORY PREPAYMENT BY AN ADDITIONAL BORROWER

         Any amount borrowed by an Additional Borrower shall be prepaid
         immediately upon such Additional Borrower ceasing to be a member of the
         Group or if it is or becomes unlawful for the Guarantor to perform any
         of its obligations under the related Guarantee.

                                     - 27 -
<PAGE>

8.9      MANDATORY PREPAYMENT DUE TO UNLAWFULNESS

         Any amount borrowed by a Borrower shall be prepaid immediately if it is
         or becomes unlawful for that Borrower to perform any of its obligations
         under any Finance Documents.

8.10     MANDATORY PREPAYMENT AND CANCELLATION FROM NET CASH PROCEEDS

         (a)      The Company (for itself or, as the case may, on behalf of any
                  Additional Borrower) shall, subject to paragraph (b), (c),
                  (f), (g), and (h) below, prepay and cancel the Facilities by
                  an amount equal to the amount of Net Cash Proceeds received by
                  or for the account of any member of the Group.

         (b)      The obligation to prepay pursuant to this Clause 8.10 an
                  amount equal to Net Disposal Proceeds received by any member
                  of the Group shall apply only in respect of Net Disposal
                  Proceeds received in any given financial year in aggregate in
                  excess of EUR 2,000,000,000. Such prepayment shall be made on
                  the last day of the Interest Period which expires immediately
                  after 30 June each following year, starting from (and
                  including) 30 June 2005.

         (c)      Any prepayment pursuant to this Clause 8.10 in respect of Net
                  Securitisation Program Proceeds shall be made on the last day
                  of the Interest Period which expires immediately after 30 June
                  each following year, starting from (and including) 30 June
                  2005.

         (d)      Amounts to be prepaid pursuant to this Clause 8.10 shall be
                  applied in priority towards (i) the prepayment of Facility A
                  and Facility B on a prorata basis as long as any sums remain
                  outstanding under both Facility A and Facility B and (ii) if
                  no sum remains outstanding under Facility A, toward the
                  prepayment of Facility B as long as any sums remain
                  outstanding under Facility B. In both cases, if the amount to
                  be prepaid exceeds the amounts outstanding under Facility A
                  and Facility B, such excess shall be applied towards the
                  prepayment of Facility C (up to the then outstanding amount
                  under Facility C) and Commitment relating to Facility C shall
                  be cancelled for an amount equal to such excess.

                  If at the date of the prepayment to be made pursuant to this
                  Clause 8.10, no amounts remains outstanding under Facility A
                  and Facility B, the amounts to be prepaid shall be applied
                  entirely towards the prepayment of Facility C (up to the then
                  outstanding amount under Facility C) and Commitment relating
                  to Facility C shall be cancelled for an amount equal to such
                  prepayment.

         (e)      The Company shall promptly and in any event within two
                  Business Days notify the Agent forthwith of receipt by any
                  member of the Group of any Net Disposal Proceeds.

         (f)      Prepayments shall not be required to be made pursuant to this
                  Clause 8.10, if and to the extent such prepayments cannot be
                  funded otherwise than in breach of legal provisions regarding
                  corporate interest, financial assistance and fiduciary duties
                  of directors, if and to the extent that proceeds need to be
                  upstreamed to the Company (unless the relevant Net Cash
                  Proceeds has been received by an Additional Borrower which can
                  use the said amount in

                                     - 28 -
<PAGE>

                  prepayment of Loans made to it) by loan, cash transfer or
                  dividend payment, where such upstreaming cannot lawfully be
                  done, it being understood that in such case the Company shall
                  make its best efforts to ensure that, to the extent possible,
                  the prohibition to such upstreaming is overcome as soon as
                  possible and that the corresponding prepayment shall be made
                  immediately when it can be legally funded.

         (g)      If the Company notifies the Agent that, and establishes to the
                  Agent's reasonable satisfaction that (a) a prepayment pursuant
                  to this Clause 8.10 cannot be lawfully funded otherwise than
                  by way of an intra-group loan causing the application of any
                  applicable "thin capitalization rules" at the level of the
                  relevant borrower and (b) that the application of such "thin
                  capitalization rules" would result in an increase of the
                  effective amount of tax payable by such borrower (excluding
                  for the avoidance of doubt, any reduction of any tax losses of
                  such borrower), then such prepayment shall not be required to
                  be made pursuant to this Clause 8.10. The prepayment shall be
                  made immediately when it can be funded otherwise than by way
                  of an intra-group loan or when it can be funded otherwise than
                  by way of an intra-group loan causing the application of any
                  relevant "thin capitalization rules" in the conditions
                  described above.

         (h)      If the Company notifies the Agent that, and establishes to the
                  Agent's reasonable satisfaction that (a) a prepayment pursuant
                  to this Clause 8.10 cannot be lawfully funded otherwise than
                  by way of a distribution of dividends and that (b) such
                  distribution of dividends cannot be made without triggering
                  the effective payment, by the person making the distribution,
                  of a Precompte (other than a Precompte which may be refunded
                  on the basis of a double taxation agreement), then such
                  prepayment shall not be required to be made pursuant to this
                  Clause 8.10. The prepayment shall be made immediately when it
                  can be funded otherwise than by a distribution of dividends or
                  when it can be funded by way of distribution of dividends
                  without triggering the payment of Precompte in the conditions
                  described above.

         (i)      If the Company notifies the Agent that, and establishes to the
                  Agent's reasonable satisfaction that (a) a prepayment pursuant
                  to this Clause 8.10 cannot be lawfully funded otherwise than
                  by way of a distribution of dividends and/or reserves and that
                  (b) such distribution of dividends and/or reserves cannot be
                  made without triggering the effective payment, by the person
                  making the distribution, of the prelevement exceptionnel
                  provided for by article 95 of the French Loi de Finance for
                  2004, then such prepayment shall not be required to be made
                  prior to 1st January 2006 provided that such prepayment shall
                  be made as soon as practicable following such date.

         (j)      In this Clause,

                  "NET CASH PROCEEDS" means any Net Disposal Proceeds or Net
                  Securitisation Program Proceeds.

                  "NET DISPOSAL PROCEEDS" means, in relation to any disposal of
                  any asset (other than a disposal of current assets (actifs
                  circulants) made in the ordinary course of business or
                  disposal of assets made to the benefit of another member of
                  the Group), any cash proceeds (or in the case of

                                     - 29 -
<PAGE>

                  consideration paid by way of an issue of debt, bond or equity
                  instrument delivered to the transferor, an equivalent amount
                  thereto) thereof from time to time that are to be received by
                  or for the account of any member of the Group net of:

                  (i)      any tax liability arising from such disposal;

                  (ii)     any reinvestment made out of such cash proceeds to
                           the extent that (a) such reinvestment is made no
                           later than 30 June of the year following the
                           financial year during which such cash proceeds have
                           been received and (b) such reinvestment is made in
                           businesses, shares or other assets consistent with
                           the nature of business of the Company or the Group as
                           carried on at the date of this Agreement; and

                  (iii)    reasonable commissions, fees and expenses payable by
                           any member of the Group in connection with such
                           disposal (without limitation, including pursuant to
                           earn out provisions and taking into account the
                           amount of any proceeds received in respect of
                           repayment or disposal of any intra group loan).

                  but excluding:

                  (a)      in the case of a disposal of a Subsidiary where
                           liabilities to third parties are assumed by other
                           members of the Group as part of the consideration for
                           the sale of that Subsidiary, such amount of the
                           consideration received by the Group which is
                           attributable to that assumption;

                  (b)      in the case of a disposal by a Subsidiary that is not
                           a wholly-owned Subsidiary, the pro rata share of such
                           cash proceeds attributable to the minority interests
                           in that Subsidiary; and

                  (c)      in the case of a disposal effected by a Subsidiary,
                           the repayment of Financial Indebtedness related to
                           the assets subject to the disposal which are required
                           to be repaid in order to effect the disposal.

                  "NET SECURITISATION PROGRAM PROCEEDS" means, in relation to
                  any securitisation or trade receivables sale program entered
                  into by any member of the Group, the amount, if any, by which
                  the aggregate amounts utilised under such programs at the end
                  of any financial year exceeds the aggregate amounts utilised
                  under such programs at the end of the preceding financial
                  year. It is understood that, in respect of any such programs
                  entered into by Target and its Subsidiaries, and for the
                  financial year in which the Company will gain the effective
                  control of Target, the Net Securitisation Program Proceeds
                  will include the amount, if any, by which the aggregate
                  amounts utilised under such programs at the end of the
                  relevant financial year exceeds the aggregate amounts utilised
                  under such programs on the date on which the Company gained
                  the effective control of Target. For the purposes of this
                  Clause 8.10, the Company undertakes to notify the Agent,
                  forthwith upon gaining the effective control of Target, of the
                  aggregate amounts utilised under such programs and shall
                  notify the Agent no later than 31 January each year of the
                  aggregate amounts utilised under such programs at the end of
                  the preceding two financial years and of the corresponding Net
                  Securitisation Program Proceeds, if any.

                                     - 30 -
<PAGE>

                  "PRECOMPTE" means the "precompte" as defined in article 223
                  sexies of the French Code General des Impots, or any
                  equivalent tax in any jurisdiction or replacing the above
                  provided in each case that such tax is a final liability and
                  is not refundable.

8.11     RESTRICTIONS

         (a)      Any notice of cancellation or prepayment given by any Party
                  under this Clause 8 shall be irrevocable and, unless a
                  contrary indication appears in this Agreement, shall specify
                  the date or dates upon which the relevant cancellation or
                  prepayment is to be made and the amount of that cancellation
                  or prepayment.

         (b)      Any prepayment under this Agreement shall be made together
                  with accrued interest on the amount prepaid and, subject to
                  any Break Costs, without premium or penalty.

         (c)      No Borrower may reborrow any part of Facility A or Facility B
                  which is prepaid.

         (d)      The Borrowers shall not repay or prepay all or any part of the
                  Loans or cancel all or any part of the Commitments except at
                  the times and in the manner expressly provided for in this
                  Agreement.

         (e)      No amount of the Total Commitments cancelled under this
                  Agreement may be subsequently reinstated.

         (f)      If the Agent receives a notice under this Clause 8 it shall
                  promptly forward a copy of that notice to either the Company
                  or the affected Lender, as appropriate.

                                     - 31 -
<PAGE>

                                    SECTION 5
                              COSTS OF UTILISATION

9.       INTEREST

9.1      FACILITY A CALCULATION OF INTEREST

         (a)      The rate of interest on each Facility A Loan for each Interest
                  Period shall be the percentage rate per annum which is the
                  aggregate of the applicable:

                  (i)      Facility A Margin;

                  (ii)     EURIBOR; and

                  (iii)    Mandatory Cost, if any.

         (b)      The Facility A Margin shall be equal to 0.40% in respect of
                  each Interest Period commencing prior to the Margin Adjustment
                  Date.

         (c)      The Facility A Margin applicable to any Interest Period
                  commencing on or following the Margin Adjustment Date shall be
                  equal to the average of the percentage rates per annum set
                  below opposite the credit rating assigned respectively by S&P
                  and Moody's on the long term unsecured and unsubordinated debt
                  or on the Facility itself (as agreed between the Company and
                  the Mandated Lead Arrangers) of the Company on the first day
                  of such Interest Period:

                  RATINGS ASSIGNED BY S&P AND MOODY'S         MARGIN (%)

                  AA-/Aa3 or above                             0.35

                  A+/A1 or A/A2                                0.40

                  A-/A3                                        0.45

                  BBB+/Baa1 or below or no rating             0.525

9.2      FACILITY B CALCULATION OF INTEREST

         (a)      The rate of interest on each Facility B Loan for each Interest
                  Period shall be the percentage rate per annum which is the
                  aggregate of the applicable:

                  (i)      Facility B Margin;

                  (ii)     EURIBOR; and

                  (iii)    Mandatory Cost, if any.

         (b)      The Facility B Margin shall be equal to 0.45% in respect of
                  each Interest Period commencing prior to the Margin Adjustment
                  Date.

         (c)      The Facility B Margin applicable to any Interest Period
                  commencing on or following the Margin Adjustment Date shall be
                  equal to the average of the percentage rates per annum set
                  below opposite the credit rating assigned respectively by S&P
                  and Moody's on the long term unsecured and

                                     - 32 -
<PAGE>

                  unsubordinated debt or on the Facility itself (as agreed
                  between the Company and the Mandated Lead Arrangers) of the
                  Company on the first day of such Interest Period:

                  RATINGS ASSIGNED BY S&P AND MOODY'S         MARGIN (%)

                  AA-/Aa3 or above                             0.40

                  A+/A1 or A/A2                                0.45

                  A-/A3                                        0.50

                  BBB+/Baa1 or below or no rating             0.575

9.3      FACILITY C CALCULATION OF INTEREST

         (a)      The rate of interest on each Facility C Loan for each Interest
                  Period is the percentage rate per annum which is the aggregate
                  of the applicable:

                  (i)      Facility C Margin;

                  (ii)     EURIBOR or, in relation to any Loan in an Optional
                           Currency, LIBOR; and

                  (iii)    Mandatory Cost, if any.

         (b)      The Facility C Margin shall be equal to 0.50% in respect of
                  each Interest Period commencing prior the Margin Adjustment
                  Date.

         (c)      The Facility C Margin applicable to any Interest Period
                  commencing on or following the Margin Adjustment Date shall be
                  equal to the average of the percentage rates per annum set
                  below opposite the credit rating assigned respectively by S&P
                  and Moody's on the long term unsecured and unsubordinated debt
                  or on the Facility itself (as agreed between the Company and
                  the Mandated Lead Arrangers) of the Company during such
                  Interest Period:

                  RATINGS ASSIGNED BY S&P AND MOODY'S         MARGIN (%)

                  AA-/Aa3 or above                             0.45

                  A+/A1 or A/A2                                0.50

                  A-/A3                                        0.55

                  BBB+/Baa1 or below or no rating             0.625

9.4      GENERAL PROVISIONS REGARDING MARGIN ADJUSTMENTS

         If there is a change of the credit rating assigned by S&P or Moody's
         during an Interest Period, for the purpose of determining the
         applicable rate of interest, such change shall take effect for each
         Loan on the next Interest Period in respect thereto.

                                     - 33 -
<PAGE>

9.5      ADJUSTMENT OF THE MARGIN UPON REPAYMENT AND CANCELLATION OF MORE THAN
         50% OF THE TOTAL COMMITMENT

         Each of the applicable Facility A Margin, Facility B Margin and
         Facility C Margin determined in accordance with the provisions of
         article 9.1 to 9.4 above shall be reduced by 0.05% per annum following
         the date on which more than 50% of the Total Commitments as of the date
         of this Agreement has been repaid and/or cancelled. Such change shall
         take effect for each Loan on the next Interest Period in respect
         thereto.

9.6      PAYMENT OF INTEREST

         The Borrower to which a Loan has been made shall pay accrued interest
         on that Loan on the last day of each Interest Period.

9.7      DEFAULT INTEREST

         (a)      If a Borrower fails to pay any amount payable by it under a
                  Finance Document on its due date, interest shall accrue to the
                  fullest extent permitted by law on the overdue amount from the
                  due date up to the date of actual payment (both before and
                  after judgment) at a rate which, subject to paragraph (b)
                  below, is 1% (one per cent.) higher than the rate which would
                  have been payable if the overdue amount had, during the period
                  of non-payment, constituted a Loan in the currency of the
                  overdue amount for successive Interest Periods, each of a
                  duration selected by the Agent (acting reasonably). Any
                  interest accruing under this Clause 9.7 shall be immediately
                  payable by the Borrower on demand by the Agent.

         (b)      If any overdue amount consists of all or part of a Loan which
                  became due on a day which was not the last day of an Interest
                  Period relating to that Loan:

                  (i)      the first Interest Period for that overdue amount
                           shall have a duration equal to the unexpired portion
                           of the current Interest Period relating to that Loan;
                           and

                  (ii)     the rate of interest applying to the overdue amount
                           during that first Interest Period shall be 1% (one
                           per cent.) higher than the rate which would have
                           applied if the overdue amount had not become due.

         (c)      Default interest (if unpaid) arising on an overdue amount
                  will be compounded with the overdue amount only if, within
                  the meaning of Article 1154 of the French Code Civil, such
                  interest is due for a period of at least one year, but will
                  remain immediately due and payable.

9.8      NOTIFICATION OF RATES OF INTEREST

         The Agent shall promptly notify the Lenders and the relevant Borrower
         of the determination of a rate of interest under this Agreement.

9.9      EFFECTIVE GLOBAL RATE (TAUX EFFECTIF GLOBAL)

         For the purposes of Articles L313-1 et seq, R 313-1 and R313-2 of the
         Code de la Consommation, the Parties acknowledge that by virtue of
         certain characteristics of the Facility (and in particular the variable
         interest rate applicable to Loans and the Borrower's right to select
         the currency and the duration of the Interest Period of each

                                     - 34 -
<PAGE>

         Loan) the taux effectif global cannot be calculated at the date of this
         Agreement. However, the Company acknowledges that it has received from
         the Agent a letter containing an indicative calculation of the taux
         effectif global for each Facility, based on figured examples calculated
         on assumptions as to the taux de periode and duree de periode set out
         in the letter. The Parties acknowledge that that letter forms part of
         this Agreement.

10.      INTEREST PERIODS

10.1     SELECTION OF INTEREST PERIODS

         (a)      Each Interest Period shall have a duration of one Month until:

                  (i)      in respect of Facility A Loans and Facility B Loans
                           only, the Agent receives a Selection Notice
                           requesting another duration in accordance with the
                           provisions of paragraph (b) below; or,

                  (ii)     in respect of any Loan, the Borrower shall select
                           another duration in accordance with the provisions of
                           paragraph (c) below.

         (b)      The Company may not send the Selection Notice to the Agent
                  prior to the Syndication Date. The Company shall select
                  pursuant to the Selection Notice an Interest Period duration
                  under Facility A Loans and Facility B Loans of two, three or
                  six Months (or any other duration agreed between the Agent
                  (acting on the instruction of all the Lenders) and the
                  Company). The selected Interest Period duration shall apply to
                  all Interest Periods relating to Facility A Loans and Facility
                  B Loans until the Facility A Final Maturity Date and the
                  Facility B Final Maturity Date respectively.

         (c)      Following the Syndication Date, any Utilisation Request
                  delivered to the Agent may select an Interest Period duration
                  of one, two, three or six Months (or any other period agreed
                  between the Agent (acting on the instruction of all the
                  Lenders)) and the Company. Utilisation Request delivered prior
                  to the Syndication Date shall not select an Interest Period
                  duration other than one Month.

         (d)      Each Interest Period for a Loan shall start on the Utilisation
                  Date and each successive Interest Period shall commence on the
                  last day of the previous one.

         (e)      The first Interest Period of any Facility A Loan shall end on
                  the last day of all other outstanding Facility A Loans (if
                  any).

         (f)      The first Interest Period of any Facility B Loan shall end on
                  the last day of all other outstanding Facility B Loans (if
                  any).

         (g)      An Interest Period for a Loan shall not extend beyond the
                  final maturity date applicable to the Facility to which it
                  relates.

10.2     NON-BUSINESS DAYS

         If an Interest Period would otherwise end on a day which is not a
         Business Day, that Interest Period will instead end on the next
         Business Day in that calendar month (if there is one) or the preceding
         Business Day (if there is not).

                                     - 35 -
<PAGE>

10.3     CONSOLIDATION OF LOANS

         If two or more Interest Periods:

                  (i)      relate to Loans made under the same Facility and in
                           the same currency;

                  (ii)     end on the same date; and

                  (iii)    are made to the same Borrower,

         those Loans will be consolidated into, and treated as, a single Loan on
         the last day of the Interest Period.

11.      CHANGES TO THE CALCULATION OF INTEREST

11.1     ABSENCE OF QUOTATIONS

         Subject to Clause 11.2 (Market disruption), if EURIBOR or, if
         applicable, LIBOR is to be determined by reference to the Reference
         Banks but a Reference Bank does not supply a quotation by the Specified
         Time on the Quotation Day, the applicable EURIBOR or LIBOR shall be
         determined on the basis of the quotations of the remaining Reference
         Banks.

11.2     MARKET DISRUPTION

         (a)      If a Market Disruption Event occurs in relation to a Loan for
                  any Interest Period, then the rate of interest on each
                  Lender's share of that Loan for the Interest Period shall be
                  the rate per annum which is the sum of:

                  (i)      the Margin;

                  (ii)     the rate notified to the Agent by that Lender as soon
                           as practicable and in any event before interest is
                           due to be paid in respect of that Interest Period, to
                           be that which expresses as a percentage rate per
                           annum the cost to that Lender of funding its
                           participation in that Loan from whatever source it
                           may reasonably select; and

                  (iii)    the Mandatory Cost, if any, applicable to that
                           Lender's participation in the Loan.

         (b)      In this Agreement "MARKET DISRUPTION EVENT" means:

                  (i)      at or about noon on the Quotation Day for the
                           relevant Interest Period the Screen Rate is not
                           available and none or only one of the Reference Banks
                           supplies a rate to the Agent to determine EURIBOR or,
                           if applicable, LIBOR for the relevant currency and
                           Interest Period; or

                  (ii)     before close of business in Paris on the Quotation
                           Day for the relevant Interest Period, the Agent
                           receives notifications from a Lender or Lenders
                           (whose participations in a Loan exceed 30 per cent.
                           of that Loan) that the cost to it of obtaining
                           matching deposits in the Relevant Interbank Market
                           would be in excess of EURIBOR or, if applicable,
                           LIBOR.

                                     - 36 -
<PAGE>

11.3     ALTERNATIVE BASIS OF INTEREST OR FUNDING

         (a)      If a Market Disruption Event occurs and the Agent or the
                  Company so requires, the Agent and the Company shall enter
                  into negotiations (for a period of not more than thirty days)
                  with a view to agreeing a substitute basis for determining the
                  rate of interest.

         (b)      Any alternative basis agreed pursuant to paragraph (a) above
                  shall, with the prior consent of all the Lenders and the
                  Company, be binding on all Parties.

11.4     BREAK COSTS

         (a)      Each Borrower shall, within three Business Days of demand by a
                  Finance Party, pay to that Finance Party its Break Costs
                  attributable to all or any part of a Loan or Unpaid Sum being
                  paid by that Borrower on a day other than the last day of an
                  Interest Period for that Loan or Unpaid Sum.

         (b)      Each Lender shall, as soon as reasonably practicable after a
                  demand by the Agent, provide a certificate confirming the
                  amount of its Break Costs for any Interest Period in which
                  they accrue.

12.      FEES

12.1     COMMITMENT FEE

         (a)      The Company shall pay to the Agent (for the account of each
                  Lender), in respect of each Facility for its Availability
                  Period, a fee in the Base Currency computed at the rate of:

                  (i)      0.125 per cent. per annum on the Lenders' aggregate
                           Available Commitment under each Facility from the
                           date of this Agreement for the first six Months after
                           the Announcement Date;

                  (ii)     0.15 per cent. per annum on the Lenders' aggregate
                           Available Commitment under each Facility during the
                           period commencing six Months after the Announcement
                           Date and ending on the expiry of the Certain Funds
                           Period;

                  (iii)    40 per cent of the applicable margin (as determined
                           for each Facility in accordance with the provisions
                           of Clause 9 (Interest)) on the Lenders' Available
                           Commitment under each Facility following the expiry
                           of the Certain Funds Period.

         (b)      The commitment fee will be calculated on the basis of the
                  actual number of days elapsed in a year of 360 days.

                  For each Facility, the accrued commitment fee is payable on
                  the last day of each successive period of three Months which
                  ends during the relevant Availability Period, on the last day
                  of the Availability Period and on the cancelled amount of the
                  relevant Lender's Commitment at the time the cancellation is
                  effective.

                                     - 37 -
<PAGE>

12.2     UPFRONT FEE

         The Company shall pay to the Mandated Lead Arrangers an upfront fee in
         the amount and at the times agreed in a Fee Letter.

12.3     AGENCY FEE

         The Company shall pay to the Agent (for its own account) an agency fee
         in the amount and at the times agreed in a Fee Letter.

12.4     EXTENSION FEE

         (a)      Upon the exercise by the Company of the First Extension
                  Option, the Company shall pay on or prior to the Facility A
                  Original Final Maturity Date to the Agent (for the account of
                  each Lender under the Facility A) an extension fee equal to
                  0.025 per cent. of the total Facility A Commitment on the date
                  of the Facility A Original Final Maturity Date.

         (b)      Upon the exercise by the Company of the Second Extension
                  Option, the Company shall pay on or prior to the Facility A
                  First Extended Final Maturity Date to the Agent (for the
                  account of each Lender under the Facility A) an extension fee
                  equal to 0.025 per cent. of the total Facility A Commitments
                  on the date of the Facility A First Extended Final Maturity
                  Date.

                                     - 38 -
<PAGE>

                                    SECTION 6
                         ADDITIONAL PAYMENT OBLIGATIONS

13.      TAX GROSS UP AND INDEMNITIES

13.1     DEFINITIONS

         (a)      In this Agreement:

                  "PROTECTED PARTY" means a Finance Party which is or will be
                  subject to any liability, or required to make any payment, for
                  or on account of Tax in relation to a sum received or
                  receivable (or any sum deemed for the purposes of Tax to be
                  received or receivable) under a Finance Document.

                  "QUALIFYING LENDER" means:

                  (i)      in relation to a Borrower which is formed under the
                           laws of France or is treated as resident in France
                           for tax purposes, a Lender which:

                           (A)      has its Facility Office in France; or

                           (B)      fulfils the conditions imposed by French law
                                    taking into account, as the case may be, any
                                    double taxation agreement in force (subject
                                    to the completion of any necessary
                                    procedural formalities), in order for a
                                    payment not to be subject to (or as the case
                                    may be, to be exempt from) any Tax
                                    Deduction; or,

                           (C)      a Treaty Lender;

                  (ii)     or, in relation to a Borrower other than a Borrower
                           referred to in paragraph (i) above, a Lender which:

                           (A)      has its Facility Office in the jurisdiction
                                    in which that Borrower is formed or (if
                                    different) in the jurisdiction (or
                                    jurisdictions) in which that Borrower is
                                    treated as resident for tax purposes; or

                           (B)      fulfils the conditions imposed by the laws
                                    of the jurisdiction or jurisdictions
                                    mentioned in paragraph (A) above taking into
                                    account, as the case may be, any double
                                    taxation agreement in force (subject to the
                                    completion of any necessary procedural
                                    formalities), in order for a payment not to
                                    be subject to (or as the case may be, to be
                                    exempt from) any Tax Deduction; or,

                           (C)      a Treaty Lender.

                  "TAX CREDIT" means a credit against, relief or remission for,
                  or repayment of any Tax.

                  "TAX DEDUCTION" means a deduction or withholding for or on
                  account of Tax from a payment under a Finance Document.

                                     - 39 -
<PAGE>

                  "TAX PAYMENT" means an increased payment made by an Obligor to
                  a Finance Party under Clause 13.2 (Tax gross-up) or a payment
                  under Clause 13.3 (Tax indemnity).

                  "TREATY LENDER" means a Lender which is entitled to a payment
                  under a double taxation agreement (subject to the completion
                  of any necessary procedural formalities) without a Tax
                  Deduction.

         (b)      Unless a contrary indication appears, in this Clause 13 a
                  reference to "determines" or "determined" means a
                  determination made in the absolute discretion of the person
                  making the determination.

13.2     TAX GROSS-UP

         (a)      Each Borrower shall make all payments to be made by it without
                  any Tax Deduction, unless a Tax Deduction is required by law.

         (b)      The Company shall promptly upon becoming aware that a Borrower
                  must make a Tax Deduction (or that there is any change in the
                  rate or the basis of a Tax Deduction) notify the Agent
                  accordingly. Similarly, a Lender shall notify the Agent
                  promptly on becoming so aware in respect of a payment payable
                  to that Lender. If the Agent receives such notification from a
                  Lender it shall promptly notify the Company and that Borrower.

         (c)      If a Tax Deduction is required by law to be made by a
                  Borrower, the amount of the payment due from that Borrower
                  shall be increased (subject to Clause 8.7 (Mandatory
                  prepayment in relation to a single Lender)) to an amount which
                  (after making any Tax Deduction) leaves an amount equal to the
                  payment which would have been due if no Tax Deduction had been
                  required.

         (d)      A Borrower is not required to make an increased payment to a
                  Lender under paragraph (c) above for a Tax Deduction from a
                  payment of interest on a Loan, if on the date on which the
                  payment falls due:

                  (i)      the payment could have been made to the relevant
                           Lender without a Tax Deduction if it was a Qualifying
                           Lender, but on that date that Lender is not or has
                           ceased to be a Qualifying Lender other than as a
                           result of any change after the date it became a
                           Lender under this Agreement in (or in the
                           interpretation, administration, or application of)
                           any law or double taxation agreement, or any
                           published practice or concession of any relevant
                           taxing authority; or,

                  (ii)     the relevant Lender is a Treaty Lender and the
                           Borrower making the payment is able to demonstrate
                           that the payment could have been made to the Lender
                           without the Tax Deduction had that Lender complied
                           with its obligations under paragraph (h) below.

         (e)      Paragraph (d)(i) above shall not apply if a Tax Deduction
                  arises in respect of a Loan made to an Additional Borrower
                  which is not French tax resident.

         (f)      If a Borrower is required to make a Tax Deduction, that
                  Borrower shall make that Tax Deduction and any payment
                  required in connection with that Tax Deduction within the time
                  allowed and in the minimum amount required by law.

                                     - 40 -
<PAGE>

         (g)      Within thirty days of making either a Tax Deduction or any
                  payment required in connection with that Tax Deduction, the
                  Borrower making that Tax Deduction shall deliver to the Agent
                  for the Finance Party entitled to the payment evidence
                  reasonably satisfactory to that Finance Party that the Tax
                  Deduction has been made or (as applicable) any appropriate
                  payment paid to the relevant taxing authority.

         (h)      A Treaty Lender and each Obligor which makes a payment to
                  which that Treaty Lender is entitled shall co-operate in
                  completing any procedural formalities necessary for that
                  Obligor to obtain authorisation to make that payment without a
                  Tax Deduction.

13.3     TAX INDEMNITY

         (a)      The Company shall (within three Business Days of demand by the
                  Agent) pay to a Protected Party an amount equal to the loss,
                  liability or cost which that Protected Party determines will
                  be or has been (directly or indirectly) suffered for or on
                  account of Tax by that Protected Party in respect of a Finance
                  Document.

         (b)      Paragraph (a) above shall not apply:

                  (i)      with respect to any Tax assessed on a Finance Party:

                           (A)      under the law of the jurisdiction in which
                                    that Finance Party is incorporated or, if
                                    different, the jurisdiction (or
                                    jurisdictions) in which that Finance Party
                                    is treated as resident for tax purposes; or

                           (B)      under the law of the jurisdiction in which
                                    that Finance Party's Facility Office is
                                    located in respect of amounts received or
                                    receivable in that jurisdiction,

                  if that Tax is imposed on or calculated by reference to the
                  net income received or receivable (but not any sum deemed to
                  be received or receivable) by that Finance Party; or

                  (ii)     to the extent a loss, liability or cost:

                           (A)      is compensated for by an increased payment
                                    under Clause 13.2 (Tax gross-up); or

                           (B)      would have been compensated for by an
                                    increased payment under Clause 13.2 (Tax
                                    gross-up) but was not so compensated solely
                                    because one of the exclusions in paragraph
                                    (d) of Clause 13.2 (Tax gross-up) applied.

         (c)      A Protected Party making, or intending to make a claim under
                  paragraph (a) above shall promptly notify the Agent of the
                  event which will give, or has given, rise to the claim,
                  following which the Agent shall notify the Company.

         (d)      A Protected Party shall, on receiving a payment from an
                  Obligor under this Clause 13.3, notify the Agent.

                                     - 41 -
<PAGE>

13.4     TAX CREDIT

         If an Obligor makes a Tax Payment and the relevant Finance Party
         determines that:

         (a)      a Tax Credit is attributable to that Tax Payment; and

         (b)      that Finance Party has obtained, utilised and retained that
                  Tax Credit,

         the Finance Party shall pay an amount to the Obligor which that Finance
         Party determines will leave it (after that payment) in the same
         after-Tax position as it would have been in had the Tax Payment not
         been made by the Obligor.

13.5     STAMP TAXES

         The Company shall pay and, within three Business Days of demand,
         indemnify each Finance Party against any cost, loss or liability that
         Finance Party incurs in relation to all stamp duty, registration and
         other similar Taxes payable in respect of any Finance Document.

13.6     VALUE ADDED TAX

         (a)      All consideration expressed to be payable under a Finance
                  Document by any Party to a Finance Party shall be deemed to be
                  exclusive of any VAT. If VAT is chargeable, on any supply made
                  by any Finance Party to any Party in connection with a Finance
                  Document, that Party shall pay to the Finance Party (in
                  addition to and at the same time as paying the consideration)
                  an amount equal to the amount of the VAT.

         (b)      Where a Finance Document requires any Party to reimburse a
                  Finance Party for any costs or expenses, that Party shall also
                  at the same time pay and indemnify the Finance Party against
                  all VAT incurred by the Finance Party in respect of the costs
                  or expenses to the extent that the Finance Party reasonably
                  determines that it is not entitled to credit or repayment of
                  the VAT.

14.      INCREASED COSTS

14.1     INCREASED COSTS

         (a)      Subject to Clause 14.3 (Exceptions) the Company shall, within
                  three Business Days of a demand by the Agent, pay for the
                  account of a Finance Party the amount of any Increased Costs
                  incurred by that Finance Party or any of its Affiliates as a
                  result of (i) the introduction of or any change in (or in the
                  interpretation, administration or application of) any law or
                  regulation or (ii) compliance with any law or regulation made
                  after the date of this Agreement.

         (b)      In this Agreement "INCREASED COSTS" means:

                  (i)      a reduction in the rate of return from the Facility
                           or on a Finance Party's (or its Affiliate's) overall
                           capital;

                  (ii)     an additional or increased cost; or

                                     - 42 -
<PAGE>

                  (iii)    a reduction of any amount due and payable under any
                           Finance Document,

         which is incurred or suffered by a Finance Party or any of its
         Affiliates to the extent that it is attributable to that Finance Party
         having entered into its Commitment or funding or performing its
         obligations under any Finance Document.

14.2     INCREASED COST CLAIMS

         (a)      A Finance Party intending to make a claim pursuant to Clause
                  14.1 (Increased costs) shall notify the Agent of the event
                  giving rise to the claim, following which the Agent shall
                  promptly notify the Company.

         (b)      Each Finance Party shall, as soon as practicable after a
                  demand by the Agent, provide a certificate indicating the
                  event giving rise to the claim and confirming the amount of
                  its Increased Costs.

14.3     EXCEPTIONS

         Clause 14.1 (Increased costs) does not apply to the extent any
         Increased Cost is:

         (a)      attributable to a Tax Deduction required by law to be made by
                  an Obligor;

         (b)      compensated for by Clause 13.3 (Tax indemnity) (or would have
                  been compensated for under Clause 13.3 (Tax indemnity) but was
                  not so compensated solely because one of the exclusions in
                  paragraph (b) of Clause 13.3 (Tax indemnity) applied);

         (c)      compensated for by the payment of the Mandatory Cost; or

         (d)      attributable to the wilful breach by the relevant Finance
                  Party or its Affiliates of any law or regulation.

15.      OTHER INDEMNITIES

15.1     CURRENCY INDEMNITY

         (a)      If any sum due from a Borrower under the Finance Documents (a
                  "SUM"), or any order, judgment or award given or made in
                  relation to a Sum, has to be converted from the currency (the
                  "FIRST CURRENCY") in which that Sum is payable into another
                  currency (the "SECOND CURRENCY") for the purpose of:

                  (i)      making or filing a claim or proof against the
                           Borrower;

                  (ii)     obtaining or enforcing an order, judgment or award in
                           relation to any litigation or arbitration
                           proceedings,

                  that Borrower shall as an independent obligation within three
                  Business Days of demand, indemnify to the extent permitted by
                  law each Finance Party to whom that Sum is due against any
                  cost, loss or liability arising out of or as a result of the
                  conversion including any discrepancy between (A) the rate of
                  exchange used to convert that Sum from the First Currency into
                  the Second Currency and (B) the rate or rates of exchange
                  available to that person at the time of its receipt of that
                  Sum.

                                     - 43 -
<PAGE>

         (b)      Each Borrower waives any right it may have in any jurisdiction
                  to pay any amount under the Finance Documents in a currency or
                  currency unit other than that in which it is expressed to be
                  payable.

15.2     OTHER INDEMNITIES

         The Company shall (or shall procure that an Obligor will), within three
         Business Days of demand, indemnify each Finance Party against any cost,
         loss or liability incurred by that Finance Party as a result of:

         (a)      the occurrence of any Event of Default;

         (b)      a failure by an Obligor to pay any amount due under a Finance
                  Document on its due date, including without limitation, any
                  cost, loss or liability arising as a result of Clause 27
                  (Sharing among the Finance Parties);

         (c)      funding, or making arrangements to fund, its participation in
                  a Loan requested by a Borrower in a Utilisation Request but
                  not made by reason of the operation of any one or more of the
                  provisions of this Agreement (other than by reason of default
                  or negligence by that Finance Party alone); or

         (d)      a Loan (or part of a Loan) not being prepaid in accordance
                  with a notice of prepayment given by a Borrower or the
                  Company.

15.3     INDEMNITY TO THE AGENT

         The Company shall promptly indemnify the Agent against any cost, loss
         or liability incurred by the Agent (acting reasonably) as a result of:

         (a)      investigating any event which it reasonably believes is a
                  Default; or

         (b)      acting or relying on any notice, request or instruction which
                  it reasonably believes to be genuine, correct and
                  appropriately authorised.

16.      MITIGATION BY THE LENDERS

16.1     MITIGATION

         (a)      Each Finance Party shall, in consultation with the Company,
                  take all reasonable steps to mitigate any circumstances which
                  arise and which would result in any amount becoming payable
                  under or pursuant to, or cancelled pursuant to, any of Clause
                  8.1 (Illegality), Clause 13 (Tax gross-up and indemnities)
                  Clause 14 (Increased costs) or Schedule 4 (Mandatory Cost
                  formulae) including (but not limited to) transferring its
                  rights and obligations under the Finance Documents to another
                  Affiliate or Facility Office.

         (b)      Paragraph (a) above does not in any way limit the obligations
                  of any Obligor under the Finance Documents.

16.2     LIMITATION OF LIABILITY

         (a)      The Company shall indemnify each Finance Party for all costs
                  and expenses reasonably incurred by that Finance Party as a
                  result of steps taken by it under Clause 16.1 (Mitigation).

                                     - 44 -
<PAGE>

         (b)      A Finance Party is not obliged to take any steps under Clause
                  16.1 (Mitigation) if, in the opinion of that Finance Party
                  (acting reasonably), to do so might be prejudicial to it.

17.      COSTS AND EXPENSES

17.1     TRANSACTION EXPENSES

         The Company shall promptly on demand pay the Agent and the Mandated
         Lead Arrangers the amount of all costs and expenses (including legal
         fees) reasonably incurred by any of them in connection with the
         negotiation, preparation, printing, execution and syndication of:

         (a)      this Agreement and any other documents referred to in this
                  Agreement; and

         (b)      any other Finance Documents executed after the date of this
                  Agreement.

17.2     AMENDMENT COSTS

         If (a) an Obligor requests an amendment, waiver or consent or (b) an
         amendment is required pursuant to Clause 28.9 (Change of currency), the
         Company shall, within three Business Days of demand, reimburse the
         Agent for the amount of all costs and expenses (including legal fees)
         reasonably incurred by the Agent in responding to, evaluating,
         negotiating or complying with that request or requirement.

17.3     ENFORCEMENT COSTS

         The Company shall, within three Business Days of demand, pay to each
         Finance Party the amount of all costs and expenses (including legal
         fees) incurred by that Finance Party in connection with the enforcement
         of, or the preservation of any rights under, any Finance Document.

                                     - 45 -
<PAGE>

                                    SECTION 7
               REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

18.      REPRESENTATIONS

         Each Obligor makes the representations and warranties set out in this
         Clause 18 to each Finance Party in relation to itself and (where
         applicable) its Subsidiaries on the date it enters into the relevant
         Finance Document to which it is a party.

18.1     STATUS

         (a)      It is a corporation, duly incorporated and validly existing
                  under the law of its jurisdiction of incorporation.

         (b)      It and each of its Material Subsidiaries has the power to own
                  its assets and carry on its business as it is being conducted.

18.2     BINDING OBLIGATIONS

         The obligations expressed to be assumed by it in each Finance Document
         are, subject to any Reservations, legal, valid, binding and enforceable
         obligations.

18.3     NON-CONTRAVENTION WITH OTHER OBLIGATIONS

         The entry into and performance by it of, and the transactions
         contemplated by, the Finance Documents do not and will not contravene
         to any extent which is material as regards the Finance Documents with:

         (a)      any law or regulation applicable to it;

         (b)      its and each of its Material Subsidiaries' constitutional
                  documents; or

         (c)      any agreement or instrument binding upon it or any of its
                  Material Subsidiaries or any of its or any of its Material
                  Subsidiaries' assets.

18.4     POWER AND AUTHORITY

         It has the power to enter into, perform and deliver, and has taken all
         necessary action to authorise its entry into, performance and delivery
         of, the Finance Documents to which it is a party and the transactions
         contemplated by those Finance Documents.

18.5     VALIDITY AND ADMISSIBILITY IN EVIDENCE

         All Authorisations required:

         (a)      to enable it lawfully to enter into, exercise its rights and
                  comply with its obligations in the Finance Documents to which
                  it is a party; and

         (b)      to make the Finance Documents to which it is a party
                  admissible in evidence in its jurisdiction of incorporation
                  save as set out in any Reservations,

         have been obtained or effected and are in full force and effect.

                                     - 46 -
<PAGE>

18.6     GOVERNING LAW AND ENFORCEMENT

         (a)      The choice of French law as the governing law of the Finance
                  Documents will be recognised and enforced in its jurisdiction
                  of incorporation.

         (b)      Any judgment obtained in France in relation to a Finance
                  Document will be recognised and enforced in its jurisdiction
                  of incorporation.

18.7     DEDUCTION OF TAX

         It is not required under the law of its jurisdiction of incorporation
         to make any Tax Deduction from any payment it may make to any
         Qualifying Lender (to the extent that such Qualifying Lenders has
         complied with all necessary procedural formalities applicable to it)
         under any Finance Document.

18.8     NO FILING OR STAMP TAXES

         Under the law of its jurisdiction of incorporation it is not necessary
         that the Finance Documents be filed, recorded or enrolled with any
         court or other authority in that jurisdiction or that any stamp,
         registration or similar tax be paid on or in relation to the Finance
         Documents or the transactions contemplated by the Finance Documents
         save as set out in any Reservations.

18.9     NO DEFAULT

         (a)      No Event of Default is continuing or can reasonably be
                  expected to result from the making of any Utilisation.

         (b)      No other event or circumstance is outstanding which
                  constitutes a default under any other agreement or instrument
                  which is binding on it or any of its Material Subsidiaries or
                  to which its (or its Material Subsidiaries') assets are
                  subject which might reasonably be expected to have a Material
                  Adverse Effect.

18.10    NO MISLEADING INFORMATION

         (a)      Any factual information provided by any member of the Group
                  for the purposes of the Information Memorandum will, to the
                  best of the Company's knowledge, be true and accurate in all
                  material respects as at the date it was provided or as at the
                  date (if any) at which it is stated.

         (b)      The financial projections contained in the Information
                  Memorandum will be prepared on the basis of recent historical
                  information and on the basis of reasonable assumptions.

         (c)      No information will be given or omitted by any member of the
                  Group that results in the information contained in the
                  Information Memorandum being untrue or misleading in any
                  material respect.

         (d)      The representation made in this Clause 18.10 is made by the
                  Company only.

                                     - 47 -
<PAGE>

18.11    FINANCIAL STATEMENTS

         (a)      Its Original Financial Statements were prepared in accordance
                  with GAAP consistently applied unless expressly disclosed to
                  the Agent in writing to the contrary before the date of this
                  Agreement.

         (b)      Its Original Financial Statements (in conjunction with the
                  notes thereto) fairly represent its financial condition and
                  operations (consolidated in the case of the Company) during
                  the relevant financial year unless expressly disclosed to the
                  Agent in writing to the contrary before the date of this
                  Agreement.

         (c)      There has been no material adverse change in its business or
                  financial condition (or the business or consolidated financial
                  condition of the Group, in the case of the Company) since the
                  date of closing of the financial year to which those Original
                  Financial Statements relate.

18.12    PARI PASSU RANKING

         Its payment obligations under the Finance Documents rank at least pari
         passu with the claims of all its other unsecured and unsubordinated
         creditors, except for obligations mandatorily preferred by law applying
         to companies generally.

18.13    NO PROCEEDINGS PENDING OR THREATENED

         No litigation, arbitration or administrative proceedings of or before
         any court, arbitral body or agency which, if adversely determined,
         might reasonably be expected to have a Material Adverse Effect have (to
         the best of its and of its directors' knowledge and belief) been
         started or threatened against it or any of its Material Subsidiaries.

18.14    REPETITION

         Subject to Clause 18.15 (Non-Applicability), the Repeating
         Representations are deemed to be made by each Obligor by reference to
         the facts and circumstances then existing on:

         (a)      the date of each Utilisation Request and the first day of each
                  Interest Period; and

         (b)      in the case of an Additional Borrower, the day on which the
                  company becomes (or it is proposed that the company becomes)
                  an Additional Borrower.

18.15    NON-APPLICABILITY

         (a)      The representations set out in Clauses 18.1(b) (Status), 18.3
                  (Non-conflict with other obligations), 18.9 (No Default),
                  18.10 (No Misleading Information), 18.11 (Financial
                  Statements) and 18.13 (No proceedings pending or threatened)
                  do not apply in relation to:

                  (i)      any member of the Target Group until 180 days after
                           the date when Target became a Subsidiary of the
                           Company; and

                                     - 48 -
<PAGE>

                  (ii)     any company (other than a member of the Target Group)
                           becoming a member of the Group until 90 days after
                           the date when that company became a member of the
                           Group.

         (b)      Notwithstanding the provisions of paragraph (a) above, the
                  representations set out in Clauses 18.1(b) (Status) and 18.3
                  (Non-conflict with other obligations) (together, for the
                  avoidance of doubt, with all Repeating Representations which
                  are not mentioned in paragraph (a) above and the
                  representation set out in Clause 18.4 (Power and authority))
                  shall apply immediately in relation to any member of the Group
                  which becomes an Additional Borrower.

19.      INFORMATION UNDERTAKINGS

         The undertakings in this Clause 19 remain in force from the date of
         this Agreement for so long as any amount is outstanding under the
         Finance Documents or any Commitment is in force.

19.1     FINANCIAL STATEMENTS

         The Company shall supply to the Agent in sufficient copies for all the
         Lenders:

         (a)      as soon as the same become available, but in any event within
                  90 days after the end of each of its financial years:

                  (i)      its audited consolidated financial statements for
                           that financial year; and

                  (ii)     the audited financial statements of each Borrower for
                           that financial year; and

         (b)      as soon as the same become available, but in any event within
                  90 days after the end of each half of each of its financial
                  years:

                  (i)      its consolidated financial statements for that
                           financial half year; and

                  (ii)     the financial statements of each Borrower for that
                           financial half year.

19.2     COMPLIANCE CERTIFICATE

         (a)      The Company shall supply to the Agent, with each set of
                  financial statements delivered pursuant to paragraph (a)(i) or
                  (b)(i) of Clause 19.1 (Financial statements), a Compliance
                  Certificate setting out (in reasonable detail) computations as
                  to compliance with Clause 20 (Financial covenants) as at the
                  date as at which those financial statements were drawn up.

         (b)      Each Compliance Certificate shall be signed by the Chief
                  Executive Officer (directeur general) or the Chief Financial
                  Officer (directeur financier) of the Company.

                                     - 49 -
<PAGE>

19.3     REQUIREMENTS AS TO FINANCIAL STATEMENTS

         (a)      Each set of financial statements delivered by the Company
                  pursuant to Clause 19.1 (Financial statements) shall be
                  certified by a director of the relevant company as fairly
                  representing its financial condition as at the date as at
                  which those financial statements were drawn up.

         (b)      The Company shall procure that each set of financial
                  statements of a Borrower delivered pursuant to Clause 19.1
                  (Financial statements) is prepared using applicable GAAP,
                  accounting practices and financial reference periods
                  consistent with those applied in the preparation of the
                  Original Financial Statements for that Borrower (or, where
                  applicable, its latest annual financial statements delivered
                  to the Agent in accordance with this Clause 19) provided that,
                  in relation to the Company's consolidated financial
                  statements, if any changes has occurred in relation to
                  applicable GAAP, accounting practices or reference period, the
                  Company shall notify the same to the Agent and the Company's
                  auditors shall deliver to the Agent:

                  (i)      a description of any change necessary for those
                           consolidated financial statements to reflect the
                           GAAP, accounting practices and reference periods upon
                           which the Company's Original Financial Statements
                           (or, where applicable, its latest annual consolidated
                           financial statements delivered to the Agent in
                           accordance with this Clause 19) were prepared; and

                  (ii)     sufficient information, in form and substance as may
                           be reasonably required by the Agent, to enable the
                           Lenders to determine whether Clause 20 (Financial
                           covenants) has been complied with and make an
                           accurate comparison between the financial position
                           indicated in those consolidated financial statements
                           and the Company's Original Financial Statements (or,
                           where applicable, its latest annual consolidated
                           financial statements delivered to the Agent in
                           accordance with this Clause 19).

                  Any reference in this Agreement to those financial  statements
                  shall  be  construed   as  a  reference  to  those   financial
                  statements  as  adjusted  to reflect  the basis upon which the
                  Original  Financial  Statements  (or,  where  applicable,  its
                  latest annual financial  statements  delivered to the Agent in
                  accordance with this Clause 19) were prepared.

19.4     INFORMATION: MISCELLANEOUS

         The Company shall supply to the Agent (in sufficient copies for all the
         Lenders, if the Agent so requests):

         (a)      all information documents (excluding for the avoidance of
                  doubt notices of shareholders' meetings) dispatched by the
                  Company to its shareholders (or any class of them) or its
                  creditors generally at the same time as they are dispatched
                  and the Company shall procure that the same documents will be
                  delivered to the Agent in relation to Target as long as Target
                  remains listed;

         (b)      promptly upon becoming aware of it, available information as
                  to the existence of any litigation, arbitration or
                  administrative proceedings which are current, threatened or
                  pending against any member of the Group, and

                                     - 50 -
<PAGE>

                  which might, if adversely determined, be reasonably be
                  expected to have a Material Adverse Effect; and

         (c)      promptly, such further information regarding the financial
                  condition of any Obligor as any Finance Party (through the
                  Agent) may reasonably request.

19.5     NOTIFICATION OF DEFAULT

         (a)      Each Borrower shall notify the Agent of any Default (and the
                  steps, if any, being taken to remedy it) promptly upon
                  becoming aware of its occurrence (unless that Borrower is
                  aware that a notification has already been provided by another
                  Borrower).

         (b)      Promptly upon a request by the Agent, the Company shall supply
                  to the Agent a certificate signed by two of its directors
                  (administrateurs) on its behalf certifying that no Default is
                  continuing (or if a Default is continuing, specifying the
                  Default and the steps, if any, being taken to remedy it).

19.6     NOTIFICATION OF RATING CHANGE

         For the purpose of determining the applicable margin in accordance with
         the provisions of Clause 9 (Interest), the Company shall notify the
         Agent of any change of a rating on its long term unsecured and
         unsubordinated debt (or, as the case may be, on the Facility itself)
         assigned either by S&P or Moody's immediately upon becoming aware of
         the same.

19.7     NOTIFICATION OF TRANSFER OF INTELLECTUAL PROPERTY RIGHTS WITHIN THE
         GROUP

         The Company undertakes to notify the Agent of any sale, lease, transfer
         or other disposal (other than trough a licence) of any intellectual
         property rights made by any Obligor in the benefit of any member of the
         Group which is not an Obligor.

20.      FINANCIAL COVENANTS

         (a)      The Company shall procure that on each Test Date (as from 30
                  June 2004 until and including 31 December 2008), the ratio of
                  Net Debt to EBITDA in respect of the Group on a consolidated
                  basis for the Relevant Period is no greater than 2.5:1.

         (b)      The Company shall procure that on each Test Date (as from and
                  including 30 June 2005 until and including 31 December 2008),
                  the Gross Debt of its Subsidiaries on a consolidated basis
                  (without taking into account any financial borrowing arising
                  under Facility C) shall at no time represent more than 1.0
                  times the EBITDA for the Relevant Period.

         (c)      So as to meet as soon as possible the ratio set out in
                  paragraph (b) above, the Company undertakes to make its best
                  efforts to refinance indebtedness of Target incurred prior to
                  the date on which the Company notifies the Agent that it has
                  the effective control of Target (which date shall not be later
                  than 3 Months following the date on which Target becomes a
                  Subsidiary of the Company), by way of indebtedness incurred by
                  the Company or incurred by Target under Facility C.

         (d)      In this Clause 20:

                                     - 51 -
<PAGE>

                  "GROSS DEBT" means financial borrowings, whether short or long
                  term, including all capital lease obligations as such concepts
                  are defined in the notes to the Original Financial Statements
                  of the Company.

                  "NET DEBT" means Gross Debt after deduction of the total of
                  cash, cash equivalents and marketable securities held by the
                  Company, as provided in the consolidated balance sheet at each
                  Test Date.

                  "EBITDA" means for each Relevant Period, consolidated
                  operating profit of the Group, as defined under accounting
                  principles applicable to the Company's Original Financial
                  Statements, plus, as applicable to the Relevant Period (if the
                  following charges have been deducted to obtain operating
                  profit, ie without double counting):

                  (i)      any amortization and depreciation charges, be it of
                           tangible or intangible assets including goodwill,

                  (ii)     any purchase IPR&D charge as evaluated by an
                           independent expert in accordance with applicable
                           GAAP,

                  (iii)    any impact of inventory step up upon adjustment of
                           inventory valuation to fair market value for the
                           opening of the accounts of the Group following the
                           acquisition of Target as required by GAAP,

                  (iv)     any restructuring charge directly incurred in
                           connection with the Acquisition, such charges to be
                           incurred in 2004 and 2005 only and not to exceed EUR
                           1.000.000.000 in any of these years.

                  "RELEVANT PERIOD" means each twelve Month rolling basis period
                  ending on a Test Date.

                  "TEST DATE" means 30 June and 31 December of each calendar
                  year.

         (d)      The financial covenants contained in this Clause 20 will be
                  tested on each Test Date by reference to the latest
                  consolidated financial statement delivered to the Agent in
                  accordance with Clause 19.1 (Financial Statements).

21.      GENERAL UNDERTAKINGS

         The undertakings in this Clause 21 remain in force from the date of
         this Agreement for so long as any amount is outstanding under the
         Finance Documents or any Commitment is in force and are subscribed by
         each Obligor in relation to itself and where applicable its
         Subsidiaries.

21.1     AUTHORISATIONS

         Each Obligor shall promptly:

         (a)      obtain, comply with and do all that is necessary to maintain
                  in full force and effect; and

         (b)      supply certified copies to the Agent of,

                                     - 52 -
<PAGE>

         any Authorisation required under any law or regulation of its
         jurisdiction of incorporation to enable it to perform its obligations
         under the Finance Documents and to ensure the legality, validity,
         enforceability or admissibility in evidence in its jurisdiction of
         incorporation of any Finance Document (subject to the Reservations).

21.2     COMPLIANCE WITH LAWS

         (a)      Each Obligor shall comply in all respects with all laws to
                  which it may be subject, if failure so to comply would
                  materially impair its ability to perform its obligations under
                  the Finance Documents.

         (b)      The Company shall comply in all respect with all material
                  applicable laws to which it may be subject in relation with
                  the Offer.

21.3     NEGATIVE PLEDGE

         (a)      No Obligor shall (and the Company shall ensure that no other
                  member of the Group will) create or permit to subsist any
                  Security over any of its assets.

         (b)      No Obligor shall (and the Company shall ensure that no other
                  member of the Group will):

                  (i)      sell, transfer or otherwise dispose of any of its
                           assets on terms whereby they are or may be leased to
                           or re-acquired by an Obligor or any other member of
                           the Group;

                  (ii)     sell, transfer or otherwise dispose of any of its
                           receivables on recourse terms (other than pursuant to
                           securitisation programs of the Company's Group
                           existing on the date hereof and of Target Group
                           existing on the date the Company notifies the Agent
                           that it has the effective control of Target (which
                           date shall not be later than 3 Months following the
                           date on which Target becomes a Subsidiary of the
                           Company) and provided that the cash proceeds thereof
                           is applied toward the mandatory prepayment of the
                           Facilities where required in accordance with Clause
                           18.10 (Mandatory prepayment and cancellation from Net
                           Cash Proceeds);

                  (iii)    enter into any arrangement under which money or the
                           benefit of a bank or other account may be applied,
                           set-off or made subject to a combination of accounts;
                           or

                  (iv)     enter into any other preferential arrangement having
                           a similar effect,

         in circumstances where the arrangement or transaction is entered into
         primarily as a method of raising Financial Indebtedness or of financing
         the acquisition of an asset.

         (c)      Paragraphs (a) and (b) above do not apply to:

                  (i)      any Security disclosed in the Original Financial
                           Statements or listed in Schedule 9 (Existing
                           Security) except to the extent the principal amount
                           secured by that Security exceeds the amount stated in
                           that Schedule;

                                     - 53 -
<PAGE>

                  (ii)     any netting or set-off arrangement entered into by
                           any member of the Group in the ordinary course of its
                           banking arrangements or cash management (including
                           hedging policies made in accordance with sound
                           commercial practices on the basis of the existing
                           Group policies) ;

                  (iii)    any lien arising by operation of law and in the
                           ordinary course of trading;

                  (iv)     any Security over or affecting any asset acquired by
                           a member of the Group after the date of this
                           Agreement if:

                           (A)      the Security was not created in
                                    contemplation of the acquisition of that
                                    asset by a member of the Group;

                           (B)      the principal amount secured has not been
                                    increased in contemplation of, or since the
                                    acquisition of that asset by a member of the
                                    Group; and

                           (C)      the Security is removed or discharged within
                                    9 Months of the date of acquisition of such
                                    asset if not otherwise permitted under this
                                    Clause 21.3;

                  (v)      any Security over or affecting any asset of any
                           company which becomes a member of the Group after the
                           date of this Agreement, where the Security is created
                           prior to the date on which that company becomes a
                           member of the Group, if:

                           (A)      the Security was not created in
                                    contemplation of the acquisition of that
                                    company;

                           (B)      the principal amount secured has not
                                    increased in contemplation of or since the
                                    acquisition of that company; and

                           (C)      the Security is removed or discharged within
                                    9 Months of that company becoming a member
                                    of the Group if not otherwise permitted
                                    under this Clause 21.3;

                  (vi)     any Security created in favour of a claimant or
                           defendant in any action of the court or tribunal
                           before whom such action is brought as security for
                           costs or expenses where any member of the Group is
                           actively prosecuting or defending such action by
                           appropriate proceedings in the bona fide interests of
                           the Group;

                  (vii)    any Security created pursuant to any order of
                           attachment, distraint, garnishee order, arrestment,
                           adjudication or injunction or interdict restraining
                           disposal of assets or similar legal process arising
                           in connection with court proceedings, provided the
                           same are not, in the opinion of the Majority Lenders,
                           adverse to their interests;

                                     - 54 -
<PAGE>

                  (viii)   any Security for taxes or assessments that are being
                           actively contested in good faith by appropriate
                           proceedings and for which adequate provisions are
                           being maintained to the extent required by applicable
                           principles;

                  (ix)     any Security (a SUBSTITUTE SECURITY) which replaces
                           any other Security permitted pursuant to this Clause
                           and which secures an amount not exceeding the
                           principal amount secured by such permitted Security
                           at the time it is replaced together with any interest
                           accruing on such amounts from the date such
                           Substitute Security is created or arises any fees or
                           expenses incurred in relation thereto provided that
                           the existing Security to be replaced is released and
                           all amounts secured thereby paid or otherwise
                           discharged in full at or prior to the time of such
                           Substitute Security being created or arising;

                  (x)      any Security securing indebtedness the principal
                           amount of which (when aggregated with the principal
                           amount of any other indebtedness which has the
                           benefit of Security given by any member of the Group
                           other than any permitted under paragraphs (i) to
                           (vii) above) does not exceed EUR 100,000,000 (or its
                           equivalent in another currency or currencies) until
                           the final Original Offer Settlement Date and EUR
                           250,000,000 (or its equivalent in another currency or
                           currencies) thereafter.

21.4     DISPOSALS

         (a)      No member of the Group may enter into a single transaction or
                  a series of transactions (whether related or not) to sell,
                  lease, transfer or otherwise dispose of any asset (other than
                  current assets), unless:

                  (i)      such transaction is made on arms' length for fair
                           consideration (taking into account timing and other
                           constraints which may arise, as the case may be, in
                           relation to disposals required by any anti-trust
                           authority);

                  (ii)     the Net Disposal Proceeds resulting from such
                           transaction are applied towards the mandatory
                           prepayment of the Facilities where required pursuant
                           to Clause 8.10 (Mandatory prepayment and cancellation
                           from Net Cash Proceeds).

         (b)      The Company shall not sell, lease, transfer or otherwise
                  dispose of (other than through a licence and for fair
                  consideration) any intellectual property rights generating a
                  significant source of income or likely to generate a
                  significant source of income during the duration of this
                  Agreement to any member of the Group unless such transfer is
                  made in compliance with the general policy of the Group as
                  regards intellectual property rights and the transferee agrees
                  to grant a first demand guarantee up to the maximum amount
                  legally possible (in a form satisfactory to the Lenders and
                  based on the terms and conditions consistent with those of the
                  Guarantee) for the benefit of the Lenders securing all or part
                  of the obligations of the transferor under the Finance
                  Documents.

                                     - 55 -
<PAGE>

21.5     ACQUISITION

         (a)      As long as all commitments under Facility A and Facility B
                  have not been entirely cancelled and/or repaid, the Company
                  shall ensure that the aggregate amount in enterprise value of
                  acquisitions and investments in business, shares or other
                  assets made by it or any member of the Group during such
                  period will not exceed EUR 10,000,000,000 provided that
                  neither the Acquisition nor acquisition or investment made
                  within the ordinary course of business shall be taken into
                  account for the purpose of determining whether the above
                  threshold has been met.

         (b)      The Company shall ensure that no acquisition or investments
                  made by it or any other member of the Group will have a
                  Material Adverse Effect.

21.6     MERGER

         No Obligor shall (and the Company shall ensure that no other member of
         the Group will) enter into any amalgamation, merger or corporate
         reconstruction other than under a solvent liquidation or reorganisation
         involving (i) members of the Group only or (ii) members of the Group
         and third parties for the purpose of achieving an acquisition
         authorised pursuant to Clause 21.5 (Acquisition) provided in each case
         that if any member of the Group involved in any such amalgamation,
         merger or corporate reconstruction is an Obligor, such Obligor shall be
         the surviving entity.

21.7     CHANGE OF BUSINESS

         The Company shall procure that no substantial change is made to the
         general nature of the business of the Company or the Group from that
         carried on at the date of this Agreement.

21.8     OFFER

         (a)      The terms (including the price) and conditions of the Original
                  Offer shall be agreed between the Company and the Lenders
                  prior to the Announcement Date.

         (b)      The Company undertakes to carry out the Original Offer in
                  accordance with the terms and conditions agreed with the
                  Lenders and shall not, without the consent of the Majority
                  Lenders, make, or agree to, any waiver or change of any
                  condition precedent or term (including the price) of the
                  Original Offer or take or permit to be taken any step or make
                  any public statement as a result of which the terms (including
                  the price) and/or conditions of the Original Offer are, or may
                  be required to be, waived or changed, provided that no such
                  consent shall be required in relation to any waiver or change
                  of any term and/or condition of the Original Offer (i)
                  relating to the duration of the Original Offer (when filed)
                  and to any extension thereof or (ii) resulting from the
                  withdrawal of the Original Offer decided by the Company.

         (c)      The Company undertakes to file the Original Offer and the note
                  d'information relating thereto with the AMF as soon as
                  practicable and at the latest 10 Business Days following the
                  date of this Agreement, failing which the Commitments of the
                  Lenders under this Agreement shall be automatically cancelled
                  in accordance with provisions of Clause 8.4 (Mandatory
                  Cancellation).

                                     - 56 -
<PAGE>

         (d)      The Company may make an Additional Offer without the prior
                  consent of the Majority Lenders as long as such Additional
                  Offer is made on substantially the same terms and conditions
                  as the Original Offer (save for such changes as are permitted
                  without the prior Lenders' approval or as to which the Lenders
                  have granted their consent pursuant to paragraph (b) above).

         (e)      The Company shall keep the Agent informed at all times of all
                  proposed modifications, of all modifications and of all
                  material developments in relation to the Offer (including
                  where available, the levels of acceptance) and provide
                  promptly, such further information or document as any Finance
                  Party (through the Agent) may reasonably request in relation
                  to the Offer.

         (f)      The Company shall conduct its business during the whole
                  duration of the Original Offer in accordance with its strategy
                  as publicly announced. In addition, during such period, the
                  Company shall not proceed with any distribution of dividends
                  for an amount greater than EUR 1,000,000,000.

21.9     TRANSFER OF NET CASH PROCEEDS

         Without prejudice to paragraphs (f) to (i) of Clause 8.10 (Mandatory
         prepayment and cancellation from Net Cash Proceeds), the Company shall
         (and shall ensure that any member of the Group will) make its best
         efforts to carry out any transfer of Net Cash Proceeds from any member
         of the Group to the Company for the purposes of allowing the Company to
         meet its obligations to proceed with early prepayment pursuant to such
         Clause 8.10 (Mandatory prepayment and cancellation from Net Cash
         Proceeds).

21.10    NEW SUBSIDIARIES

         The undertakings set out in this Clause 21 shall not apply to any
         transaction, contract or arrangement to which any entity which becomes
         a member of the Group after the date of this Agreement was a party
         prior to it becoming a member of the Group (and which was not entered
         into in contemplation of its becoming a member of the Group) until 180
         days after the date on which that entity becomes a member of the Group.

22.      EVENTS OF DEFAULT

         Each of the events or circumstances set out in Clause 22 is an Event of
         Default.

22.1     NON-PAYMENT

         An Obligor does not pay on the due date any amount payable pursuant to
         a Finance Document (except an amount the non-payment of which requires
         the Borrower to make a prepayment under Clause 8.7 (Mandatory
         prepayment in relation to a single Lender)) at the place at and in the
         currency in which it is expressed to be payable unless:

         (a)      its failure to pay is caused by administrative or technical
                  error; and

         (b)      payment is made within 3 Business Days of its due date.

22.2     FINANCIAL COVENANTS

         Any requirement of Clause 20 (Financial covenants) is not satisfied.

                                     - 57 -
<PAGE>

22.3     OTHER OBLIGATIONS

         (a)      An Obligor does not comply with any provision of the Finance
                  Documents (other than those referred to in Clause 22.1
                  (Non-payment) and Clause 22.2 (Financial covenants).

         (b)      No Event of Default under paragraph (a) above in relation to
                  Clauses 21.1 (Authorisation) to 21.6 (Merger) will occur if
                  the failure to comply is, in the opinion of the Majority
                  Lenders, capable of remedy and is remedied within 15 Business
                  Days of the earlier of (i) the Agent giving notice to the
                  Company or (ii) the Company becoming aware of the failure to
                  comply.

22.4     MISREPRESENTATION

         Any representation or statement made or deemed to be made by an Obligor
         in the Finance Documents or any other document delivered by or on
         behalf of any Obligor under or in connection with any Finance Document
         is or proves to have been incorrect or misleading in any material
         respect when made or deemed to be made.

22.5     CROSS DEFAULT

         (a)      Any Financial Indebtedness of any member of the Group is not
                  paid when due nor within any originally applicable grace
                  period.

         (b)      Any Financial Indebtedness of any member of the Group is
                  declared to be or otherwise becomes due and payable prior to
                  its specified maturity as a result of an event of default
                  (however described) except as the case may be (a) where such
                  declaration is being actively contested by the relevant member
                  of the Group in good faith by the taking of appropriate
                  proceedings before the competent courts, (b) the Company has
                  provided to the Agent, within 10 Business Days of such
                  declaration, opinions from two leading international law firms
                  that the relevant member of the Group has good grounds for
                  taking such a position and a certificate stating that the
                  relevant member of the Group has established adequate reserves
                  in respect of such Financial Indebtedness if required under
                  the applicable GAAP and (c) such declaration is waived or
                  dismissed within twelve Months of such declaration.

         (c)      Any commitment for any Financial Indebtedness of any member of
                  the Group is cancelled or suspended by a creditor of any
                  member of the Group as a result of an event of default
                  (however described) except as the case may be:

                  (i)      (a) where such cancellation or suspension is being
                           actively contested by the relevant member of the
                           Group in good faith by the taking of appropriate
                           proceedings before the competent courts, (b) the
                           Company has provided to the Agent, within 10 days of
                           such declaration, opinions from two leading
                           international law firms that the relevant member of
                           the Group has good grounds for taking such a position
                           and (c) such cancellation or suspension is waived or
                           dismissed within twelve Months of such declaration,
                           or

                  (ii)     where such Financial Indebtedness is suspended only
                           as a result of an event of default (however
                           described) which has not yet been declared for the
                           purpose of the cancellation of such Financial

                                     - 58 -
<PAGE>

                           Indebtedness and in respect of which the relevant
                           borrower has made a waiver request unless the related
                           Financial Indebtedness is cancelled and/or the
                           relevant waiver is not obtained within 10 Business
                           Days following the occurrence of the related event of
                           default.

         (d)      Any creditor of any member of the Group becomes entitled to
                  declare any Financial Indebtedness of any member of the Group
                  due and payable prior to its specified maturity as a result of
                  an event of default (however described) except, as long as
                  such event of default has not been declared, where the
                  relevant Borrower has made a waiver request and provided that
                  the relevant waiver is obtained within 10 Business Days
                  following the occurrence of the related event of default.

         (e)      No Event of Default will occur under this Clause 22.5 if the
                  aggregate amount of Financial Indebtedness or commitment for
                  Financial Indebtedness falling within paragraphs (a) to (d)
                  above is less than EUR 200,000,000 (or its equivalent in any
                  other currency or currencies).

22.6     INSOLVENCY

         (a)      A Borrower or any Material Subsidiary is unable or admits
                  inability to pay its debts as they fall due, suspends making
                  payments on any of its debts or, by reason of actual or
                  anticipated financial difficulties, commences negotiations
                  with one or more of its creditors with a view to rescheduling
                  any of its indebtedness.

         (b)      A Borrower or any Material Subsidiary which conducts business
                  in France is in a state of cessation des paiements, or a
                  Borrower or any Material Subsidiary becomes insolvent for the
                  purpose of any insolvency law.

         (c)      A moratorium is declared in respect of any indebtedness of a
                  Borrower or any Material Subsidiary.

22.7     INSOLVENCY PROCEEDINGS

         (a)      Any corporate action, legal proceedings or other procedure or
                  step is taken in relation to:

                  (i)      the suspension of payments, a moratorium of any
                           indebtedness, winding-up, dissolution, administration
                           or reorganisation (by way of voluntary arrangement,
                           scheme of arrangement or otherwise) of a Borrower or
                           any Material Subsidiary other than a solvent
                           liquidation or reorganisation of any member of the
                           Group which is not an Obligor;

                  (ii)     the appointment of a liquidator (other than in
                           respect of a solvent liquidation of a member of the
                           Group which is not an Obligor), receiver,
                           administrator, administrative receiver, compulsory
                           manager or other similar officer in respect of a
                           Borrower or any Material Subsidiary or any of its
                           assets;

                  (iii)    enforcement of any Security over any assets of a
                           Borrower or any Material Subsidiary in respect of
                           claim(s) in excess in aggregate of EUR 100,000,000;
                           or

                                     - 59 -
<PAGE>

         (b)      any analogous procedure or step is taken in any jurisdiction.

         (c)      A Borrower or any Material Subsidiary commences proceedings
                  for reglement amiable in accordance with articles L.611-3 to
                  L.611-6 of the French Code de Commerce (or any analogous
                  procedure is commenced in any relevant jurisdiction).

         (d)      A judgement for redressement judiciaire, cession totale de
                  l'entreprise or liquidation judiciaire is entered in relation
                  to the Company or any member of the Group under articles
                  L.620-1 to L.628-3 of the French Code de Commerce (or any
                  analogous judgment is rendered in any relevant jurisdiction).

22.8     CREDITORS' PROCESS

         Any of the enforcement proceedings provided for in French law no.91-650
         of 9 July 1991, or any expropriation, attachment, sequestration,
         distress or execution affects any asset or assets of a member of the
         Group having an aggregate value of 100,000,000 and, in respect of
         conservatory proceedings only, is not discharged within 15 Business
         Days.

22.9     MATERIAL ADVERSE CHANGE

         A Material Adverse Effect occurs.

22.10    ACCELERATION

         On and at any time after the occurrence of an Event of Default which is
         continuing the Agent may without mise en demeure or any other judicial
         or extra judicial step, and shall if so directed by the Majority
         Lenders, by notice to the Company but subject to the mandatory
         provisions of articles L.620-1 to L.628-3 of the French Code de
         Commerce:

         (a)      cancel the Total Commitments whereupon they shall immediately
                  be cancelled; and/or

         (b)      declare that all or part of the Loans, together with accrued
                  interest, and all other amounts accrued or outstanding under
                  the Finance Documents be immediately due and payable,
                  whereupon they shall become immediately due and payable.

22.11    NEW SUBSIDIARIES

         Any event or circumstances which would otherwise constitute an Event of
         Default and which would exist only in relation to any entity becoming a
         member of the Group and which only:

         (a)      occurred or existed before the date on which such entity
                  became a member of the Group; or

         (b)      arose as a result of such entity having become a member of the
                  Group

         will not constitute an Event of Default or entitle the Agent, or
         entitle the Lenders to instruct the Facility Agent, to make a
         declaration under Clause 22.10 (Acceleration) unless the event or
         circumstances continue for a period of 180 days or such shorter

                                     - 60 -
<PAGE>

         period of time as may be provided for under Clause 18.15
         (Non-Applicability) after the date on which such company becomes a
         member of the Group or such event or circumstances recur after the
         expiry of such period.

                                     - 61 -
<PAGE>

                                    SECTION 8
                               CHANGES TO PARTIES

23.      CHANGES TO THE LENDERS

23.1     ASSIGNMENTS AND TRANSFERS BY THE LENDERS

         (a)      Subject to this Clause 23, a Lender (the "EXISTING LENDER")
                  may:

                  (i)      assign any of its rights; or

                  (ii)     transfer any of its rights (including such as relate
                           to that Lender's participation in each Loan) and
                           obligations,

         to another bank or financial institution (the "NEW LENDER").

         (b)      The consent of the Finance Parties is hereby given to a
                  transfer by an Existing Lender to a New Lender.

23.2     CONDITIONS OF ASSIGNMENT OR TRANSFER

         (a)      The consent of the Company is required for an assignment or
                  transfer by a Lender, provided that:

                  (i)      in the case of an assignment, no consent is required
                           if the assignment is to another Lender or an
                           Affiliate of a Lender or following the occurrence of
                           an Event of Default which is continuing, and

                  (ii)     the Company hereby consents to a transfer to another
                           Lender or an Affiliate of a Lender.

         (b)      The consent of the Company to an assignment or transfer must
                  not be unreasonably withheld or delayed. The Company will be
                  deemed to have given its consent ten Business Days after the
                  Lender has requested it unless consent is expressly refused by
                  the Company within that time.

         (c)      The consent of the Company to an assignment or transfer must
                  not be withheld solely because the assignment or transfer may
                  result in an increase to the Mandatory Cost.

         (d)      A Lender may assign or transfer all of part of its Commitments
                  in any of the Facilities on a non prorata basis between the
                  Facilities.

         (e)      Any transfer and assignment shall be of a minimum amount of
                  EUR 10,000,000.

         (f)      An assignment will only be effective as among the Finance
                  Parties on receipt by the Agent of written confirmation from
                  the New Lender (in form and substance satisfactory to the
                  Agent) that the New Lender has become entitled to the same
                  rights and will assume the same obligations to the other
                  Finance Parties as it would have been under if it was an
                  Original Lender.

                                     - 62 -
<PAGE>

         (g)      A transfer will only be effective if the procedure set out in
                  Clause 23.5 (Procedure for transfer) is complied with.

         (h)      If:

                  (i)      a Lender assigns or transfers any of its rights or
                           obligations under the Finance Documents or changes
                           its Facility Office; and

                  (ii)     as a result of circumstances existing at the date the
                           assignment, transfer or change occurs, an Obligor
                           would be obliged to make a payment to the New Lender
                           or Lender acting through its new Facility Office
                           under Clause 13 (Tax gross-up and indemnities),
                           Clause 14 (Increased Costs) or Schedule 4 (Mandatory
                           Cost formulae).

         then the New Lender or Lender acting through its new Facility Office is
         only entitled to receive payment under those Clauses to the same extent
         as the Existing Lender or Lender acting through its previous Facility
         Office would have been if the assignment, transfer or change had not
         occurred.

23.3     ASSIGNMENT OR TRANSFER FEE

         The New Lender shall, on the date upon which an assignment or transfer
         takes effect, pay to the Agent (for its own account) a fee of
         EUR 1,000.

23.4     LIMITATION OF RESPONSIBILITY OF EXISTING LENDERS

         (a)      Unless expressly agreed to the contrary, an Existing Lender
                  makes no representation or warranty and assumes no
                  responsibility to a New Lender for:

                  (i)      the legality, validity, effectiveness, adequacy or
                           enforceability of the Finance Documents or any other
                           documents;

                  (ii)     the financial condition of any Obligor;

                  (iii)    the performance and observance by any Obligor of its
                           obligations under the Finance Documents or any other
                           documents; or

                  (iv)     the accuracy of any statements (whether written or
                           oral) made in or in connection with any Finance
                           Document or any other document,

                  and any representations or warranties implied by law are
                  excluded.

         (b)      Each New Lender confirms to the Existing Lender and the other
                  Finance Parties that it:

                  (i)      has made (and shall continue to make) its own
                           independent investigation and assessment of the
                           financial condition and affairs of each Obligor and
                           its related entities in connection with its
                           participation in this Agreement and has not relied
                           exclusively on any information provided to it by the
                           Existing Lender in connection with any Finance
                           Document; and

                                     - 63 -
<PAGE>

                  (ii)     will continue to make its own independent appraisal
                           of the creditworthiness of each Obligor and its
                           related entities whilst any amount is or may be
                           outstanding under the Finance Documents or any
                           Commitment is in force.

         (c)      Nothing in any Finance Document obliges an Existing Lender to:

                  (i)      accept a re-transfer from a New Lender of any of the
                           rights and obligations assigned or transferred under
                           this Clause 23; or

                  (ii)     support any losses directly or indirectly incurred by
                           the New Lender by reason of the non-performance by
                           any Obligor of its obligations under the Finance
                           Documents or otherwise.

23.5     PROCEDURE FOR TRANSFER

         (a)      Subject to the conditions set out in Clause 23.2 (Conditions
                  of assignment or transfer) a transfer is effected in
                  accordance with paragraph (b) below when the Agent executes an
                  otherwise duly completed Transfer Agreement delivered to it by
                  the Existing Lender and the New Lender. The Agent shall, as
                  soon as reasonably practicable after receipt by it of a duly
                  completed Transfer Agreement appearing on its face to comply
                  with the terms of this Agreement and delivered in accordance
                  with the terms of this Agreement, execute that Transfer
                  Agreement.

         (b)      By virtue of the execution of a Transfer Agreement, as from
                  the Transfer Date:

                  (i)      to the extent that in the Transfer Agreement the
                           Existing Lender seeks to transfer its rights and
                           obligations under the Finance Documents, the Existing
                           Lender shall be discharged to the extent provided for
                           in the Transfer Agreement from further obligations
                           towards each of the Obligors and the other Finance
                           Parties under the Finance Documents;

                  (ii)     the rights and obligations of the Existing Lender
                           with respect to the Obligors shall be transferred to
                           the New Lender, to the extent provided for in the
                           Transfer Agreement;

                  (iii)    the Agent, the Mandated Lead Arrangers, the New
                           Lender and other Lenders shall have the same rights
                           and obligations between themselves as they would have
                           had had the New Lender been an Original Lender with
                           the rights and/or obligations to which it is entitled
                           and subject as a result of the transfer and to that
                           extent the Agent, the Mandated Lead Arrangers and the
                           Existing Lender shall each be released from further
                           obligations to each other under the Finance
                           Documents; and

                  (iv)     the New Lender shall become a Party as a "LENDER".

23.6     DISCLOSURE OF INFORMATION

         Any Lender may disclose to any of its Affiliates and any other person:

                                     - 64 -
<PAGE>

         (a)      to (or through) whom that Lender assigns or transfers (or may
                  potentially assign or transfer) all or any of its rights and
                  obligations under this Agreement;

         (b)      with (or through) whom that Lender enters into (or may
                  potentially enter into) any sub-participation in relation to,
                  or any other transaction under which payments are to be made
                  by reference to, this Agreement or any Obligor; or

         (c)      to whom, and to the extent that, information is required to be
                  disclosed by any applicable law or regulation,

         any information about any Obligor, the Group and the Finance Documents
         as that Lender shall consider appropriate if, in relation to paragraphs
         (a) and (b) above, the person to whom the information is to be given
         has entered into a Confidentiality Undertaking.

24.      CHANGES TO THE OBLIGORS

24.1     ASSIGNMENTS AND TRANSFER BY OBLIGORS

         No Borrower may assign any of its rights or transfer any of its rights
         or obligations under the Finance Documents.

24.2     ADDITIONAL BORROWERS

         (a)      The Company may request that any of its Subsidiaries
                  (including Target and its Subsidiaries upon their becoming a
                  member of the Group) becomes an Additional Borrower. That
                  Subsidiary shall become an Additional Borrower if:

                  (i)      the Majority Lenders approve the addition of that
                           Subsidiary and agree with the Company upon a
                           borrowing limit in respect of such Subsidiary unless
                           it is Target;

                  (ii)     the Company delivers to the Agent a duly completed
                           and executed Accession Letter;

                  (iii)    the Company confirms that no Default is continuing or
                           would occur as a result of that Subsidiary becoming
                           an Additional Borrower;

                  (iv)     the Agent has received all of the documents and other
                           evidence listed in Part III of Schedule 2 (Conditions
                           precedent required to be delivered by an Additional
                           Borrower) in relation to that Additional Borrower,
                           each in form and substance satisfactory to the Agent;
                           and

                  (v)      the Company has issued a Guarantee in relation to the
                           obligations of that Additional Borrower under this
                           Agreement.

         (b)      The Agent shall notify the Company and the Lenders promptly
                  upon being satisfied that it has received (in form and
                  substance satisfactory to it) all the documents and other
                  evidence listed in Part III of Schedule 2 (Conditions
                  precedent required to be delivered by an Additional Borrower).

                                     - 65 -
<PAGE>

         (c)      No more than 7 Subsidiaries shall at any time be party to this
                  Agreement as Additional Borrowers.

24.3     RESIGNATION OF A BORROWER

         (a)      The Company may request that a Borrower (other than the
                  Company) ceases to be a Borrower by delivering to the Agent a
                  Resignation Letter.

         (b)      The Agent shall accept a Resignation Letter and notify the
                  Company and the Lenders of its acceptance if:

                  (i)      no Default is continuing or would result from the
                           acceptance of the Resignation Letter (and the Company
                           has confirmed this is the case); and

                  (ii)     the Borrower is under no actual or contingent
                           obligations as a Borrower under any Finance
                           Documents,

                  whereupon that company shall cease to be a Borrower and shall
                  have no further rights or obligations under the Finance
                  Documents.

24.4     REPETITION OF REPRESENTATIONS

         Delivery of an Accession Letter constitutes confirmation by the
         relevant Subsidiary that the Repeating Representations are true and
         correct in relation to it as at the date of delivery as if made by
         reference to the facts and circumstances then existing.

                                     - 66 -
<PAGE>

                                    SECTION 9
                               THE FINANCE PARTIES

25.      ROLE OF THE AGENT AND THE MANDATED LEAD ARRANGERS

25.1     APPOINTMENT OF THE AGENT

         (a)      Each other Finance Party appoints the Agent to act as its
                  agent under and in connection with the Finance Documents.

         (b)      Each other Finance Party authorises the Agent to exercise the
                  rights, powers, authorities and discretions specifically given
                  to the Agent under or in connection with the Finance Documents
                  together with any other incidental rights, powers, authorities
                  and discretions.

25.2     DUTIES OF THE AGENT

         (a)      The Agent shall promptly forward to a Party the original or a
                  copy of any document which is delivered to the Agent for that
                  Party by any other Party.

         (b)      Except where a Finance Document specifically provides
                  otherwise, the Agent is not obliged to review or check the
                  adequacy, accuracy or completeness of any document it forwards
                  to another Party.

         (c)      If the Agent receives notice from a Party referring to this
                  Agreement, describing a Default and stating that the
                  circumstance described is a Default, it shall promptly notify
                  the Finance Parties.

         (d)      If the Agent is aware of the non-payment of any principal,
                  interest, commitment fee or other fee payable to a Finance
                  Party (other than the Agent or the Mandated Lead Arrangers)
                  under this Agreement it shall promptly notify the other
                  Finance Parties.

         (e)      The Agent's duties under the Finance Documents are solely
                  mechanical and administrative in nature.

25.3     ROLE OF THE MANDATED LEAD ARRANGERS

         Except as specifically provided in the Finance Documents, the Mandated
         Lead Arrangers have no obligations of any kind to any other Party under
         or in connection with any Finance Document.

25.4     NO FIDUCIARY DUTIES

         (a)      Nothing in this Agreement constitutes the Agent or the
                  Mandated Lead Arrangers as a trustee or fiduciary of any other
                  person.

         (b)      Neither the Agent nor the Mandated Lead Arrangers shall be
                  bound to account to any Lender for any sum or the profit
                  element of any sum received by it for its own account.

                                     - 67 -
<PAGE>

25.5     BUSINESS WITH THE GROUP

         The Agent and the Mandated Lead Arrangers may accept deposits from,
         lend money to and generally engage in any kind of banking or other
         business with any member of the Group.

25.6     RIGHTS AND DISCRETIONS OF THE AGENT

         (a)      The Agent may rely on:

                  (i)      any representation, notice or document believed by it
                           to be genuine, correct and appropriately authorised;
                           and

                  (ii)     any statement made by a director, authorised
                           signatory or employee of any person regarding any
                           matters which may reasonably be assumed to be within
                           his knowledge or within his power to verify.

         (b)      The Agent may assume (unless it has received notice to the
                  contrary in its capacity as agent for the Lenders) that:

                  (i)      no Default has occurred (unless it has actual
                           knowledge of a Default arising under Clause 22.1
                           (Non-payment));

                  (ii)     any right, power, authority or discretion vested in
                           any Party or the Majority Lenders has not been
                           exercised; and

                  (iii)    any notice or request made by the Company (other than
                           a Utilisation Request or Selection Notice) is made on
                           behalf of and with the consent and knowledge of all
                           the Obligors.

         (c)      The Agent may engage, pay for and rely on the advice or
                  services of any lawyers, accountants, surveyors or other
                  experts.

         (d)      The Agent may act in relation to the Finance Documents through
                  its personnel and agents.

         (e)      The Agent may disclose to any other Party any information it
                  reasonably believes it has received as agent under this
                  Agreement.

         (f)      Notwithstanding any other provision of any Finance Document to
                  the contrary, neither the Agent nor the Mandated Lead
                  Arrangers is obliged to do or omit to do anything if it would
                  or might in its reasonable opinion constitute a breach of any
                  law or regulation or a breach of a fiduciary duty or duty of
                  confidentiality.

25.7     MAJORITY LENDERS' INSTRUCTIONS

         (a)      Unless a contrary indication appears in a Finance Document,
                  the Agent shall exercise any right, power, authority or
                  discretion vested in it as Agent in accordance with any
                  instructions given to it by the Majority Lenders (or, if so
                  instructed by the Majority Lenders, refrain from exercising
                  any right, power, authority or discretion vested in it as
                  Agent) and (b) not be liable for any act (or omission) if it
                  acts (or refrains from taking any action) in accordance with
                  an instruction of the Majority Lenders.

                                     - 68 -
<PAGE>

         (b)      Unless a contrary indication appears in a Finance Document,
                  any instructions given by the Majority Lenders will be binding
                  on all the Finance Parties.

         (c)      The Agent may refrain from acting in accordance with the
                  instructions of the Majority Lenders (or, if appropriate, the
                  Lenders) until it has received such security as it may require
                  for any cost, loss or liability (together with any associated
                  VAT) which it may incur in complying with the instructions.

         (d)      In the absence of instructions from the Majority Lenders, (or,
                  if appropriate, the Lenders) the Agent may act (or refrain
                  from taking action) as it considers to be in the best interest
                  of the Lenders.

         (e)      The Agent is not authorised to act on behalf of a Lender in
                  any legal or arbitration proceedings relating to any Finance
                  Document, without having first obtained that Lender's
                  authority to act on its behalf in those proceedings.

25.8     RESPONSIBILITY FOR DOCUMENTATION

         Neither the Agent nor the Mandated Lead Arrangers:

         (a)      is responsible for the adequacy, accuracy and/or completeness
                  of any information (whether oral or written) supplied by the
                  Agent, the Mandated Lead Arrangers, an Obligor or any other
                  person given in or in connection with any Finance Document or
                  the Information Memorandum; or

         (b)      is responsible for the legality, validity, effectiveness,
                  adequacy or enforceability of any Finance Document or any
                  other agreement, arrangement or document entered into, made or
                  executed in anticipation of or in connection with any Finance
                  Document.

25.9     EXCLUSION OF LIABILITY

         (a)      Without limiting paragraph (b) below, the Agent will not be
                  liable for any action taken by it under or in connection with
                  any Finance Document, unless directly caused by its gross
                  negligence or wilful misconduct.

         (b)      No Party (other than the Agent) may take any proceedings
                  against any officer, employee or agent of the Agent in respect
                  of any claim it might have against the Agent or in respect of
                  any act or omission of any kind by that officer, employee or
                  agent in relation to any Finance Document and any officer,
                  employee or agent of the Agent may rely on this Clause.

         (c)      The Agent will not be liable for any delay (or any related
                  consequences) in crediting an account with an amount required
                  under the Finance Documents to be paid by the Agent if the
                  Agent has taken all necessary steps as soon as reasonably
                  practicable to comply with the regulations or operating
                  procedures of any recognised clearing or settlement system
                  used by the Agent for that purpose.

25.10    LENDERS' INDEMNITY TO THE AGENT

         Each Lender shall (in proportion to its share of the Total Commitments
         or, if the Total Commitments are then zero, to its share of the Total
         Commitments immediately prior

                                     - 69 -
<PAGE>

         to their reduction to zero) indemnify the Agent, within three Business
         Days of demand, against any cost, loss or liability incurred by the
         Agent (otherwise than by reason of the Agent's gross negligence or
         wilful misconduct) in acting as Agent under the Finance Documents
         (unless the Agent has been reimbursed by an Obligor pursuant to a
         Finance Document).

25.11    RESIGNATION OF THE AGENT

         (a)      The Agent may resign and appoint one of its Affiliates acting
                  through an office in France as successor by giving notice to
                  the other Finance Parties and the Company.

         (b)      Alternatively the Agent may resign by giving notice to the
                  other Finance Parties and the Company, in which case the
                  Majority Lenders (after consultation with the Company) may
                  appoint a successor Agent.

         (c)      If the Majority Lenders have not appointed a successor Agent
                  in accordance with paragraph (b) above within 30 days after
                  notice of resignation was given, the Agent (after consultation
                  with the Company) may appoint a successor Agent (acting
                  through an office in France).

         (d)      The retiring Agent shall, at its own cost, make available to
                  the successor Agent such documents and records and provide
                  such assistance as the successor Agent may reasonably request
                  for the purposes of performing its functions as Agent under
                  the Finance Documents.

         (e)      The Agent's resignation notice shall only take effect upon the
                  appointment of a successor.

         (f)      Upon the appointment of a successor, the retiring Agent shall
                  be discharged from any further obligation in respect of the
                  Finance Documents but shall remain entitled to the benefit of
                  this Clause 25. Its successor and each of the other Parties
                  shall have the same rights and obligations amongst themselves
                  as they would have had if such successor had been an original
                  Party.

         (g)      After consultation with the Company, the Majority Lenders may,
                  by notice to the Agent, require it to resign in accordance
                  with paragraph (b) above. In this event, the Agent shall
                  resign in accordance with paragraph (b) above.

25.12    CONFIDENTIALITY

         (a)      In acting as agent for the Finance Parties, the Agent shall be
                  regarded as acting through its agency division which shall be
                  treated as a separate entity from any other of its divisions
                  or departments.

         (b)      If information is received by another division or department
                  of the Agent, it may be treated as confidential to that
                  division or department and the Agent shall not be deemed to
                  have notice of it.

25.13    RELATIONSHIP WITH THE LENDERS

         (a)      The Agent may treat each Lender as a Lender, entitled to
                  payments under this Agreement and acting through its Facility
                  Office unless it has received not less than five Business Days
                  prior notice from that Lender to the contrary in accordance
                  with the terms of this Agreement.

                                     - 70 -
<PAGE>

         (b)      Each Lender shall supply the Agent with any information
                  required by the Agent in order to calculate the Mandatory Cost
                  in accordance with Schedule 4 (Mandatory Cost formulae).

25.14    CREDIT APPRAISAL BY THE LENDERS

         Without affecting the responsibility of any Obligor for information
         supplied by it or on its behalf in connection with any Finance
         Document, each Lender confirms to the Agent and the Mandated Lead
         Arrangers that it has been, and will continue to be, solely responsible
         for making its own independent appraisal and investigation of all risks
         arising under or in connection with any Finance Document including but
         not limited to:

         (a)      the financial condition, status and nature of each member of
                  the Group;

         (b)      the legality, validity, effectiveness, adequacy or
                  enforceability of any Finance Document and any other
                  agreement, arrangement or document entered into, made or
                  executed in anticipation of, under or in connection with any
                  Finance Document;

         (c)      whether that Lender has recourse, and the nature and extent of
                  that recourse, against any Party or any of its respective
                  assets under or in connection with any Finance Document, the
                  transactions contemplated by the Finance Documents or any
                  other agreement, arrangement or document entered into, made or
                  executed in anticipation of, under or in connection with any
                  Finance Document; and

         (d)      the adequacy, accuracy and/or completeness of the Information
                  Memorandum and any other information provided by the Agent,
                  any Party or by any other person under or in connection with
                  any Finance Document, the transactions contemplated by the
                  Finance Documents or any other agreement, arrangement or
                  document entered into, made or executed in anticipation of,
                  under or in connection with any Finance Document.

25.15    REFERENCE BANKS

         If a Reference Bank (or, if a Reference Bank is not a Lender, the
         Lender of which it is an Affiliate) ceases to be a Lender, the Agent
         shall (in consultation with the Company) appoint another Lender or an
         Affiliate of a Lender to replace that Reference Bank.

25.16    DEDUCTION FROM AMOUNTS PAYABLE BY THE AGENT

         If any Party owes an amount to the Agent under the Finance Documents
         the Agent may, after giving notice to that Party, deduct an amount not
         exceeding that amount from any payment to that Party which the Agent
         would otherwise be obliged to make under the Finance Documents and
         apply the amount deducted in or towards satisfaction of the amount
         owed. For the purposes of the Finance Documents that Party shall be
         regarded as having received any amount so deducted.

                                     - 71 -
<PAGE>

26.      CONDUCT OF BUSINESS BY THE FINANCE PARTIES

         No provision of this Agreement will:

         (a)      interfere with the right of any Finance Party to arrange its
                  affairs (tax or otherwise) in whatever manner it thinks fit;

         (b)      oblige any Finance Party to investigate or claim any credit,
                  relief, remission or repayment available to it or the extent,
                  order and manner of any claim; or

         (c)      oblige any Finance Party to disclose any information relating
                  to its affairs (tax or otherwise) or any computations in
                  respect of Tax.

27.      SHARING AMONG THE FINANCE PARTIES

27.1     PAYMENTS TO FINANCE PARTIES

         If a Finance Party (a "RECOVERING FINANCE PARTY") receives or recovers
         any amount from an Obligor other than in accordance with Clause 28
         (Payment mechanics) and applies that amount to a payment due under the
         Finance Documents then:

         (a)      the Recovering Finance Party shall, within three Business
                  Days, notify details of the receipt or recovery, to the Agent;

         (b)      the Agent shall determine whether the receipt or recovery is
                  in excess of the amount the Recovering Finance Party would
                  have been paid had the receipt or recovery been received or
                  made by the Agent and distributed in accordance with Clause 28
                  (Payment mechanics), without taking account of any Tax which
                  would be imposed on the Agent in relation to the receipt,
                  recovery or distribution; and

         (c)      the Recovering Finance Party shall, within three Business Days
                  of demand by the Agent, pay to the Agent an amount (the
                  "SHARING PAYMENT") equal to such receipt or recovery less any
                  amount which the Agent determines may be retained by the
                  Recovering Finance Party as its share of any payment to be
                  made, in accordance with Clause 28.5 (Partial payments).

27.2     REDISTRIBUTION OF PAYMENTS

         The Agent shall treat the Sharing Payment as if it had been paid by the
         relevant Obligor and distribute it between the Finance Parties (other
         than the Recovering Finance Party) in accordance with Clause 28.5
         (Partial payments).

27.3     RECOVERING FINANCE PARTY'S RIGHTS

         (a)      On a distribution by the Agent under Clause 27.2
                  (Redistribution of payments), the Recovering Finance Party
                  will be subrogated to the rights of the Finance Parties which
                  have shared in the redistribution which Finance Parties agree
                  that they will in that connection waive the benefit of Article
                  1252 of the French Code Civil.

         (b)      If and to the extent that the Recovering Finance Party is not
                  able to rely on its rights under paragraph (a) above, the
                  relevant Obligor shall be liable to the Recovering Finance
                  Party for a debt equal to the Sharing Payment which is
                  immediately due and payable.

                                     - 72 -
<PAGE>

27.4     REVERSAL OF REDISTRIBUTION

         If any part of the Sharing Payment received or recovered by a
         Recovering Finance Party becomes repayable and is repaid by that
         Recovering Finance Party, then:

         (a)      each Finance Party which has received a share of the relevant
                  Sharing Payment pursuant to Clause 27.2 (Redistribution of
                  payments) shall, upon request of the Agent, pay to the Agent
                  for account of that Recovering Finance Party an amount equal
                  to the appropriate part of its share of the Sharing Payment
                  (together with an amount as is necessary to reimburse that
                  Recovering Finance Party for its proportion of any interest on
                  the Sharing Payment which that Recovering Finance Party is
                  required to pay); and

         (b)      that Recovering Finance Party's rights of subrogation in
                  respect of any reimbursement shall be cancelled and the
                  relevant Obligor will be liable to the reimbursing Finance
                  Party for the amount so reimbursed.

27.5     EXCEPTIONS

         (a)      This Clause 27 shall not apply to the extent that the
                  Recovering Finance Party would not, after making any payment
                  pursuant to this Clause, have a valid and enforceable claim
                  against the relevant Obligor.

         (b)      A Recovering Finance Party is not obliged to share with any
                  other Finance Party any amount which the Recovering Finance
                  Party has received or recovered as a result of taking legal or
                  arbitration proceedings, if:

                  (i)      it notified that other Finance Party of the legal or
                           arbitration proceedings; and

                  (ii)     that other Finance Party had an opportunity to
                           participate in those legal or arbitration proceedings
                           but did not do so as soon as reasonably practicable
                           having received notice and did not take separate
                           legal or arbitration proceedings.

                                     - 73 -
<PAGE>

                                   SECTION 10
                                 ADMINISTRATION

28.      PAYMENT MECHANICS

28.1     PAYMENTS TO THE AGENT

         (a)      On each date on which a Borrower or a Lender is required to
                  make a payment under a Finance Document, that Borrower or
                  Lender shall make the same available to the Agent (unless a
                  contrary indication appears in a Finance Document) for value
                  on the due date at the time and in such funds specified by the
                  Agent as being customary at the time for settlement of
                  transactions in the relevant currency in the place of payment.

         (b)      Payment shall be made to such account in the principal
                  financial centre of the country of that currency (or, in
                  relation to euro, in a principal financial centre in a
                  Participating Member State or London) with such bank as the
                  Agent specifies.

28.2     DISTRIBUTIONS BY THE AGENT

         Each payment received by the Agent under the Finance Documents for
         another Party shall, subject to Clause 28.3 (Distributions to an
         Obligor) and Clause 28.4 (Clawback) be made available by the Agent as
         soon as practicable after receipt to the Party entitled to receive
         payment in accordance with this Agreement (in the case of a Lender, for
         the account of its Facility Office), to such account as that Party may
         notify to the Agent by not less than five Business Days' notice with a
         bank in the principal financial centre of the country of that currency
         (or, in relation to euro, in the principal financial centre of a
         Participating Member State or London).

28.3     DISTRIBUTIONS TO AN OBLIGOR

         The Agent may (with the consent of the Borrower or in accordance with
         Clause 29 (Set-off)) apply any amount received by it for that Borrower
         in or towards payment (on the date and in the currency and funds of
         receipt) of any amount due from that Borrower under the Finance
         Documents or in or towards purchase of any amount of any currency to be
         so applied.

28.4     CLAWBACK

         (a)      Where a sum is to be paid to the Agent under the Finance
                  Documents for another Party, the Agent is not obliged to pay
                  that sum to that other Party (or to enter into or perform any
                  related exchange contract) until it has been able to establish
                  to its satisfaction that it has actually received that sum.

         (b)      If the Agent pays an amount to another Party and it proves to
                  be the case that the Agent had not actually received that
                  amount, then the Party to whom that amount (or the proceeds of
                  any related exchange contract) was paid by the Agent shall on
                  demand refund the same to the Agent together with interest on
                  that amount from the date of payment to the date of receipt by
                  the Agent, calculated by the Agent to reflect its cost of
                  funds.

                                     - 74 -
<PAGE>

28.5     PARTIAL PAYMENTS

         (a)      If the Agent receives a payment that is insufficient to
                  discharge all the amounts then due and payable by an Obligor
                  under the Finance Documents, the Agent shall apply that
                  payment towards the obligations of that Obligor under the
                  Finance Documents in the following order:

                  (i)      FIRST, in or towards payment pro rata of any unpaid
                           fees, costs and expenses of the Agent under the
                           Finance Documents;

                  (ii)     SECONDLY, in or towards payment pro rata of any
                           accrued interest or commission due but unpaid under
                           this Agreement;

                  (iii)    THIRDLY, in or towards payment pro rata of any
                           principal due but unpaid under this Agreement; and

                  (iv)     FOURTHLY, in or towards payment pro rata of any other
                           sum due but unpaid under the Finance Documents.

         (b)      The Agent shall, if so directed by the Majority Lenders, vary
                  the order set out in paragraphs (a)(ii) to (iv) above.

         (c)      Paragraphs (a) and (b) above will override any appropriation
                  made by an Obligor.

28.6     NO SET-OFF BY BORROWERS

         All payments to be made by a Borrower under the Finance Documents shall
         be calculated and be made without (and free and clear of any deduction
         for) set-off or counterclaim.

28.7     BUSINESS DAYS

         (a)      Any payment (other than an Acquisition Payment) which is due
                  to be made on a day that is not a Business Day shall be made
                  on the next Business Day in the same calendar month (if there
                  is one) or the preceding Business Day (if there is not).

         (b)      During any extension of the due date for payment of any
                  principal or an Unpaid Sum under this Agreement interest is
                  payable on the principal or Unpaid Sum at the rate payable on
                  the original due date.

28.8     CURRENCY OF ACCOUNT

         (a)      Subject to paragraphs (b) to (e) below, the Base Currency is
                  the currency of account and payment for any sum due from a
                  Borrower under any Finance Document.

         (b)      A repayment of a Loan or Unpaid Sum or a part of a Loan or
                  Unpaid Sum shall be made in the currency in which that Loan or
                  Unpaid Sum is denominated on its due date.

         (c)      Each payment of interest shall be made in the currency in
                  which the sum in respect of which the interest is payable was
                  denominated when that interest accrued.

                                     - 75 -
<PAGE>

         (d)      Each payment in respect of costs, expenses or Taxes shall be
                  made in the currency in which the costs, expenses or Taxes are
                  incurred.

         (e)      Any amount expressed to be payable in a currency other than
                  the Base Currency shall be paid in that other currency.

28.9     CHANGE OF CURRENCY

         (a)      Unless otherwise prohibited by law, if more than one currency
                  or currency unit are at the same time recognised by the
                  central bank of any country as the lawful currency of that
                  country, then:

                  (i)      any reference in the Finance Documents to, and any
                           obligations arising under the Finance Documents in,
                           the currency of that country shall be translated
                           into, or paid in, the currency or currency unit of
                           that country designated by the Agent (after
                           consultation with the Company); and

                  (ii)     any translation from one currency or currency unit to
                           another shall be at the official rate of exchange
                           recognised by the central bank for the conversion of
                           that currency or currency unit into the other,
                           rounded up or down by the Agent (acting reasonably).

         (b)      If a change in any currency of a country occurs, this
                  Agreement will, to the extent the Agent (acting reasonably and
                  after consultation with the Company) specifies to be
                  necessary, be amended to comply with any generally accepted
                  conventions and market practice in the Relevant Interbank
                  Market and otherwise to reflect the change in currency.

29.      SET-OFF

         A Finance Party may set off any matured obligation due from a Borrower
         under the Finance Documents (to the extent beneficially owned by that
         Finance Party) against any matured obligation owed by that Finance
         Party to that Borrower, regardless of the place of payment, booking
         branch or currency of either obligation. If the obligations are in
         different currencies, the Finance Party may convert either obligation
         at a market rate of exchange in its usual course of business for the
         purpose of the set-off.

30.      NOTICES

30.1     COMMUNICATIONS IN WRITING

         Any communication to be made under or in connection with the Finance
         Documents shall be made in writing and, unless otherwise stated, may be
         made by fax, letter or telex.

30.2     ADDRESSES

         The address, fax number and telex number (and the department or
         officer, if any, for whose attention the communication is to be made)
         of each Party for any communication or document to be made or delivered
         under or in connection with the Finance Documents is:

         (a)      in the case of the Company, that identified with its name
                  below;

                                     - 76 -
<PAGE>

         (b)      in the case of each Lender or the Company, that notified in
                  writing to the Agent on or prior to the date on which it
                  becomes a Party; and

         (c)      in the case of the Agent, that identified with its name below,

         or any substitute address, fax number, telex number or department or
         officer as the Party may notify to the Agent (or the Agent may notify
         to the other Parties, if a change is made by the Agent) by not less
         than five Business Days' notice.

30.3     DELIVERY

         (a)      Any communication or document made or delivered by one person
                  to another under or in connection with the Finance Documents
                  will only be effective:

                  (i)      if by way of fax, when received in legible form; or

                  (ii)     if by way of letter, when it has been left at the
                           relevant address or five Business Days after being
                           deposited in the post postage prepaid in an envelope
                           addressed to it at that address; or

                  (iii)    if by way of telex, when despatched, but only if, at
                           the time of transmission, the correct answerback
                           appears at the start and at the end of the sender's
                           copy of the notice;

         and, if a particular department or officer is specified as part of its
         address details provided under Clause 30.2 (Addresses), if addressed to
         that department or officer.

         (b)      Any communication or document to be made or delivered to the
                  Agent will be effective only when actually received by the
                  Agent and then only if it is expressly marked for the
                  attention of the department or officer identified with the
                  Agent's signature below (or any substitute department or
                  officer as the Agent shall specify for this purpose).

         (c)      All notices from or to an Obligor shall be sent through the
                  Agent.

         (d)      Any communication or document made or delivered to the Company
                  in accordance with this Clause will be deemed to have been
                  made or delivered to each of the Obligors.

30.4     NOTIFICATION OF ADDRESS, FAX NUMBER AND TELEX NUMBER

         Promptly upon receipt of notification of an address, fax number and
         telex number or change of address, fax number or telex number pursuant
         to Clause 30.2 (Addresses) or changing its own address, fax number or
         telex number, the Agent shall notify the other Parties.

30.5     ELECTRONIC COMMUNICATION

         (a)      Any communication to be made between the Agent and a Lender
                  under or in connection with the Finance Documents may be made
                  by electronic mail or other electronic means, if the Agent and
                  the relevant Lender:

                  (i)      agree that, unless and until notified to the
                           contrary, this is to be an accepted form of
                           communication;

                                     - 77 -
<PAGE>

                  (ii)     notify each other in writing of their electronic mail
                           address and/or any other information required to
                           enable the sending and receipt of information by that
                           means; and

                  (iii)    notify each other of any change to their address or
                           any other such information supplied by them.

         (b)      Any electronic communication made between the Agent and a
                  Lender will be effective only when actually received in
                  readable form and in the case of any electronic communication
                  made by a Lender to the Agent only if it is addressed in such
                  a manner as the Agent shall specify for this purpose.

30.6     LANGUAGE

         (a)      Any notice given under or in connection with any Finance
                  Document must be in English.

         (b)      All other documents provided under or in connection with any
                  Finance Document must be in English or in French (if not
                  available in English).

31.      CALCULATIONS AND CERTIFICATES

31.1     ACCOUNTS

         In any litigation or arbitration proceedings arising out of or in
         connection with a Finance Document, the entries made in the accounts
         maintained by a Finance Party are prima facie evidence of the matters
         to which they relate.

31.2     CERTIFICATES AND DETERMINATIONS

         Any certification or determination by a Finance Party of a rate or
         amount under any Finance Document is, in the absence of manifest error,
         conclusive evidence of the matters to which it relates.

31.3     DAY COUNT CONVENTION

         Any interest, commission or fee accruing under a Finance Document will
         accrue from day to day and is calculated on the basis of the actual
         number of days elapsed and a year of 360 days or, in any case where the
         practice in the Relevant Interbank Market differs, in accordance with
         that market practice.

32.      PARTIAL INVALIDITY

         If, at any time, any provision of the Finance Documents is or becomes
         illegal, invalid or unenforceable in any respect under any law of any
         jurisdiction, neither the legality, validity or enforceability of the
         remaining provisions nor the legality, validity or enforceability of
         such provision under the law of any other jurisdiction will in any way
         be affected or impaired.

33.      REMEDIES AND WAIVERS

         No failure to exercise, nor any delay in exercising, on the part of any
         Finance Party, any right or remedy under the Finance Documents shall
         operate as a waiver, nor shall any single or partial exercise of any
         right or remedy prevent any further or other exercise or the exercise
         of any other right or remedy. The rights and remedies

                                     - 78 -
<PAGE>

         provided in this Agreement are cumulative and not exclusive of any
         rights or remedies provided by law.

34.      CONFIDENTIALITY

34.1     CONFIDENTIALITY UNDERTAKING

         Each of the Finance Parties undertakes to keep the Confidential
         Information confidential and not to disclose it to anyone except as
         provided for by Clause 34.2, to ensure that the Confidential
         Information is protected with security measures and a degree of care
         that would apply to its own confidential information, and to use the
         Confidential Information solely for the purposes of this Agreement.

34.2     PERMITTED DISCLOSURE

         The Company acknowledges and agrees that the Finance Parties (or any of
         them) may disclose Confidential Information:

         (a)      to their affiliates and their officers, directors, employees
                  and professional advisers to the extent strictly necessary for
                  the purposes of this Agreement and to any auditors of any such
                  affiliate and provided in each case that such person shall
                  agree to be bound by the same confidentiality undertaking as
                  set out in Clause 34.1 (to the extent that they do not have a
                  duty of confidentiality by their status or otherwise);

         (b)      (i) where requested or required by any court of competent
                  jurisdiction, any arbitration or other legal proceedings or
                  any competent judicial, governmental, supervisory or
                  regulatory body, (ii) where required by the rules of any stock
                  exchange on which its or the shares or other securities of any
                  affiliate or of the Company or Target are listed or (iii)
                  where required by the laws or regulations of any country with
                  jurisdiction over its or the affairs of any affiliate or over
                  the affair of the Company or Target;

         (c)      to any prospective lender or assignee which acknowledges in
                  written form and accepts to be bound by the provisions of this
                  Clause 34 and which undertakes to use the Confidential
                  Information only for considering and evaluating whether to
                  enter into the Facility; or

         (d)      with the prior written consent of the Company.

34.3     NOTIFICATION OF REQUIRED DISCLOSURE

         Each of the Finance Parties agrees (to the extent permitted by law
         other than disclosed to any regulatory body made in the normal course
         of such regulatory body's supervisory function) to inform the Company
         of any disclosure under Clause 34.2(b).

34.4     INSIDER DEALING

         Each of the Finance Parties acknowledges that some or all of the
         Confidential Information is or may be price-sensitive information and
         that the use of such information may be regulated or prohibited by
         applicable legislation relating to insider dealing and undertakes not
         to use any Confidential Information for any unlawful purpose.

                                     - 79 -
<PAGE>

34.5     DURATION

         The confidentiality undertaking of the Finance Parties hereunder shall
         expire in respect of each Confidential Information twelve Months after
         it is first delivered to the Finance Parties hereunder.

35.      AMENDMENTS AND WAIVERS

35.1     REQUIRED CONSENTS

         (a)      Subject to Clause 35.2 (Exceptions) any term of the Finance
                  Documents may be amended or waived only with the consent of
                  the Majority Lenders and the Obligors and any such amendment
                  or waiver will be binding on all Parties.

         (b)      The Agent may effect, on behalf of any Finance Party, any
                  amendment or waiver permitted by this Clause.

35.2     EXCEPTIONS

         (a)      An amendment or waiver that has the effect of changing or
                  which relates to:

                  (i)      the definition of "Majority Lenders" in Clause 1.1
                           (Definitions);

                  (ii)     an extension to the date of payment of any amount
                           under the Finance Documents;

                  (iii)    a reduction in any Margin or a reduction in the
                           amount of any payment of principal, interest, fees or
                           commission payable;

                  (iv)     an increase in or an extension of any Commitment;

                  (v)      a change to the Borrowers or Guarantors other than in
                           accordance with Clause 24 (Changes to the Obligors);

                  (vi)     any provision which expressly requires the consent of
                           all the Lenders;

                  (vii)    Clause 2.2 (Finance Parties' rights and obligations),
                           Clause 23 (Changes to the Lenders) or this Clause 35;
                           or

                  (viii)   Clause 8.4 (Mandatory Cancellation) and Clause 8.10
                           (Mandatory prepayment and cancellation from Net Cash
                           Proceeds),

                  shall not be made without the prior consent of all the
                  Lenders.

         (b)      An amendment or waiver which relates to the rights or
                  obligations of the Agent or the Mandated Lead Arrangers may
                  not be effected without the consent of the Agent or the
                  Mandated Lead Arrangers.

                                     - 80 -
<PAGE>

                                   SECTION 11
                          GOVERNING LAW AND ENFORCEMENT

36.      GOVERNING LAW

         This Agreement is governed by French law.

37.      ENFORCEMENT - JURISDICTION OF FRENCH COURTS

37.1     The Tribunal de Commerce de Paris has exclusive jurisdiction to settle
         any dispute arising out of or in connection with this Agreement
         (including a dispute regarding the existence, validity or termination
         of this Agreement) (a "Dispute").

37.2     Clause 37.1 is for the benefit of the Finance Parties only. As a
         result, no Finance Party shall be prevented from taking proceedings
         relating to a Dispute in any other courts with jurisdiction. To the
         extent allowed by law, the Finance Parties may take concurrent
         proceedings in any number of jurisdictions.

38.      ELECTION OF DOMICILE

         Without prejudice to any other mode of service allowed under any
         relevant law, each Additional Borrower irrevocably elects domicile at
         the corporate seat (siege social) of the Company in Paris for the
         purpose of serving any judicial or extra-judicial documents in relation
         to any action or proceedings referred to above.

THIS AGREEMENT HAS BEEN ENTERED INTO ON THE DATE STATED AT THE BEGINNING OF THIS
AGREEMENT.

                                     - 81 -
<PAGE>

                                   SCHEDULE 1

                              THE ORIGINAL PARTIES

                                     PART I

                              THE ORIGINAL OBLIGOR

<TABLE>
<CAPTION>
Name of the Borrower                Registration number
<S>                                 <C>
SANOFI-SYNTHELABO SA                395 030 844 RCS Paris
</TABLE>

                                     - 82 -
<PAGE>

                                     PART II

                              THE ORIGINAL LENDERS

<TABLE>
<CAPTION>
    NAME OF ORIGINAL                FACILITY A            FACILITY B             FACILITY C
        LENDER                      COMMITMENT            COMMITMENT             COMMITMENT
----------------------------------------------------------------------------------------------
<S>                             <C>                   <C>                    <C>
BNP PARIBAS SA
16 des Italiens                 EUR 2,666,666,667     EUR 2,666,666,667      EUR 2,666,666,667
75009 Paris
662 042 449 RCS Paris
----------------------------------------------------------------------------------------------
MERRILL LYNCH CREDIT
PRODUCTS LLC
Corporation Trust Center        EUR 1,333,333,333     EUR 1,333,333,333      EUR 1,333,333,333
1209 Orange Street
Wilmington, DE 19801
USA
----------------------------------------------------------------------------------------------
</TABLE>

                                     - 83 -
<PAGE>

                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

                                     PART I

                         CONDITIONS PRECEDENT TO SIGNING

1.       CORPORATE DOCUMENTATION

         (a)      A K-bis extract for the Company, not more than one Month old
                  prior to the date of signing.

         (b)      A certified copy of the constitutive documents (statuts) of
                  the Company.

         (c)      Evidence that the person(s) who has signed the Finance
                  Documents on behalf of the Company was duly authorised so to
                  sign.

         (d)      A copy of a resolution of the board of directors of the
                  Company approving the terms of the Finance Documents to which
                  the Company is a party and authorising a specified person or
                  persons, on its behalf, to execute those Finance Documents.

         (e)      A specimen of the signature of each person referred to in
                  paragraph (c) above and of each person authorised by the
                  resolution referred to in paragraph (d) above.

         (f)      A certificate of an authorised signatory of the Company
                  certifying that each copy document relating to it specified in
                  this Part I of Schedule 2 is correct, complete and in full
                  force and effect as at a date no earlier than the date of this
                  Agreement.

2.       LEGAL OPINION

         (a)      A legal opinion of Linklaters, legal advisers to the Company
                  in France, as to due authorisation and due authority
                  substantially in the form distributed to the Original Lenders
                  prior to signing this Agreement.

3.       OTHER DOCUMENTS AND EVIDENCE

         (a)      A copy of any other Authorisation or other document, opinion
                  or assurance which the Agent considers to be necessary or
                  desirable (if it has notified the Company accordingly) in
                  connection with the entry into and performance of the
                  transactions contemplated by any Finance Document or for the
                  validity and enforceability of any Finance Document.

         (b)      The Original Financial Statements of the Company.

         (c)      Evidence that the fees, costs and expenses then due from the
                  Company pursuant to Clause 12 (Fees) and Clause 17 (Costs and
                  expenses) have been paid or will be paid by the first
                  Utilisation Date.

                                     - 84 -
<PAGE>

                                     PART II

           CONDITIONS PRECEDENT TO UTILISATION ON THE SETTLEMENT DATES

1.       CONDITIONS PRECEDENT TO UTILISATION ON EACH ORIGINAL OFFER SETTLEMENT
         DATE

         (a)      A copy of the press release from the Company announcing the
                  Original Offer, substantially in the form agreed by the
                  Lenders before signing together with any press release, if
                  any, announcing amendments to the Original Offer (such press
                  release to be substantially in the form previously agreed by
                  the Lenders where such agreement is required pursuant Clause
                  21.8 (Offer));

         (b)      a copy of any note d'information filed by the Company with the
                  AMF in connection with the Original Offer substantially in the
                  form agreed by the Lenders before signing;

         (c)      a copy of a resolution of the meeting of the shareholders of
                  the Company approving the issue of the Company's Consideration
                  Shares;

         (d)      a copy of a resolution of the board of directors deciding the
                  issue of the Company's Consideration Shares;

         (e)      a certificate from the directeur general of the Company
                  confirming that the Company has complied with its obligations
                  relating to the Original Offer;

         (f)      a certificate from the directeur general of the Company
                  confirming that all the conditions to the Original Offer have
                  been met;

         (g)      a copy of the Original Offer Result Notice indicating that the
                  Original Offer has been successful.

2.       CONDITIONS PRECEDENT TO UTILISATION ON EACH ADDITIONAL OFFER SETTLEMENT
         DATE (IF ANY)

         (a)      A copy of the press release from the Company announcing the
                  Additional Offer;

         (b)      a copy, as the case may be, of any note d'information filed by
                  the Company with the AMF in connection with the Additional
                  Offer;

         (c)      a copy of a resolution of the board of directors or, as
                  applicable, of a decision of the chairman of the board of
                  directors deciding the issue of the Company's Consideration
                  Shares relating to the Additional Offer;

         (d)      a certificate from the directeur general of the Company
                  confirming that the Company has complied with its obligations
                  relating to the Additional Offer;

         (e)      a copy of the Additional Offer Result Notice.

                                     - 85 -
<PAGE>

3.       CONDITIONS PRECEDENT TO UTILISATION ON EACH SQUEEZE-OUT OFFER
         SETTLEMENT DATE (IF ANY)

         (a)      A copy of the press release from the Company announcing the
                  Squeeze-Out Offer;

         (b)      a copy, as the case may be, of any notice filed by the Company
                  with the AMF in connection with the Squeeze-Out Offer;

         (c)      a certificate from the directeur general of the Company
                  confirming that the Company has complied with its obligations
                  relating to the Squeeze-Out Offer;

         (d)      a copy of Squeeze-Out Offer result notice.

                                     - 86 -
<PAGE>

                                    PART III

                       CONDITIONS PRECEDENT REQUIRED TO BE
                 DELIVERED IN RESPECT OF AN ADDITIONAL BORROWER

1.       An Accession Letter, duly executed by that Additional Borrower and the
         Company.

2.       A K-bis extract (or the equivalent thereof) for the Additional Borrower
         not more than one Month old.

3.       A copy of the constitutional documents of the Additional Borrower.

4.       Evidence that the person(s) who has signed the Accession Letter on
         behalf of that Additional Borrower and the Company was duly authorised
         so to sign.

5.       A copy of a resolution of the board of directors of the Company taken
         in accordance with article L.225-35 of the French Code de Commerce
         approving the terms of the Guarantee granted by it, and authorising a
         specified person or persons on its behalf, to execute that Guarantee.

6.       A specimen of the signature of each person referred to in paragraph 4
         above and of each person authorised by the resolution referred to in
         paragraph 5 above.

7.       A certificate of an authorised signatory of the Additional Borrower
         certifying that each copy document listed in this Part III of Schedule
         2 is correct, complete and in full force and effect as at a date no
         earlier than the date of the Accession Letter or, as the case may be,
         the Guarantee.

8.       A copy of any other Authorisation or other document, opinion or
         assurance which the Agent considers to be necessary or desirable in
         connection with the entry into and performance of the transactions
         contemplated by the Accession Letter or, as the case may be, the
         Guarantee or for the validity and enforceability of any Finance
         Document.

9.       A copy of the Original Financial Statements of the Additional Borrower.

10.      A copy of the Guarantee in respect of the Additional Borrower duly
         executed by the Guarantor.

11.      A legal opinion of Linklaters, legal advisers to the Company, as to due
         authorisation and due authority of the Company in respect of the
         Accession Letter and the Guarantee and of the Additional Borrower in
         respect of the Accession Letter in a form reasonably satisfactory to
         the Agent.

                                     - 87 -
<PAGE>

                                   SCHEDULE 3

                                    REQUESTS

                                     PART I

                               UTILISATION REQUEST

                                     - 88 -
<PAGE>

           A - UTILISATION REQUEST IN RELATION TO AN ACQUISITION LOAN

From: [Presenting Bank]

To:   [Agent]

Dated:

Dear Sirs

            SANOFI-SYNTHELABO - EUR 12,000,000,000 FACILITY AGREEMENT
                         DATED [   ] (THE "AGREEMENT")

1.       We refer to the Agreement. This is a Utilisation Request. Terms defined
         in the Agreement have the same meaning in this Utilisation Request
         unless given a different meaning in this Utilisation Request.

2.       This Utilisation Request is delivered by ourselves in our capacity of
         Presenting Bank in accordance with the provisions of Clause 5.3 of the
         Agreement (Utilisation Request by the Presenting Bank) for the purpose
         of financing an Acquisition Payment.

3.       We wish to utilise a Loan on the following terms:

         Proposed Utilisation Date:    [relevant Settlement Date]

         Facility to be utilised:      [Facility A]/[Facility B]

         Currency of Loan:             EUR

         Amount:                       [   ] or, if less, the Available Facility

         Interest Period:              [       ]

4.       This Utilisation Request constitutes a confirmation by the Company that
         each condition specified in [Clause 4.2(a)/Clause 4.2(b)/Clause 4.2(c)]
         is satisfied on the date of this Utilisation Request.

5.       The proceeds of this Loan should be credited to [Settlement Account].

6.       This Utilisation Request is irrevocable.

                                Yours faithfully

                     .......................................
                            authorised signatory for
                          [name of the Presenting Bank]

                                     - 89 -
<PAGE>

                   B- UTILISATION REQUEST FOR FACILITY C LOANS

From: [Borrower]

To:   [Agent]

Dated:

Dear Sirs

            SANOFI-SYNTHELABO - EUR 12,000,000,000 FACILITY AGREEMENT
                         DATED [   ] (THE "AGREEMENT")

1.       We refer to the Agreement. This is a Utilisation Request. Terms defined
         in the Agreement have the same meaning in this Utilisation Request
         unless given a different meaning in this Utilisation Request.

2.       We wish to borrow a Loan on the following terms:

         Proposed Utilisation Date:    [     ] (or, if that is not a Business
                                       Day, the next Business Day)

         Facility to be utilised:      Facility C

         Currency of Loan:             [     ]

         Amount:                       [   ] or, if less, the Available Facility

         Interest Period:              [     ]

3.       We confirm that each condition specified in Clause 4.3 (Conditions
         precedent to Utilisation under Facility C) is satisfied on the date of
         this Utilisation Request.

4.       The proceeds of this Loan should be credited to [account].

5.       This Utilisation Request is irrevocable.

                                Yours faithfully

                     .......................................
                            authorised signatory for
                           [name of relevant Borrower]

                                     - 90 -
<PAGE>

                                     PART II

                                SELECTION NOTICE

From: [Borrower]

To:   [Agent]

Dated:

Dear Sirs

            SANOFI-SYNTHELABO - EUR 12,000,000,000 FACILITY AGREEMENT
                         DATED [   ] (THE " AGREEMENT")

1.       We refer to the Agreement. This is the Selection Notice. Terms defined
         in the Agreement have the same meaning in this Selection Notice unless
         given a different meaning in this Selection Notice.

2.       We request that Interest Periods under Facility A Loans have a duration
         of [2/3/6] months as from the next Interest Period beginning
         immediately after the date of this Selection Notice until the Facility
         A Final Maturity Date.

3.       We request that Interest Periods under Facility B Loans have a duration
         of [2/3/6] months as from the next Interest Period beginning
         immediately after the date of this Selection Notice until the Facility
         B Final Maturity Date.

4.       This Selection Notice is irrevocable.

                                Yours faithfully

                      .....................................
                            authorised signatory for
                                   the Company

                                     - 91 -
<PAGE>

                                   SCHEDULE 4

                             MANDATORY COST FORMULAE

1.       The Mandatory Cost is an addition to the interest rate to compensate
         Lenders for the cost of compliance with (a) the requirements of the
         Bank of England and/or the Financial Services Authority (or, in either
         case, any other authority which replaces all or any of its functions)
         or (b) the requirements of the European Central Bank. Mandatory Costs
         will be charged only if and to the extent that the applicable Lender
         certifies that such costs are effectively and commonly charged by that
         Lender to the vast majority of its customers in connection with
         facilities of similar size to the Facility.

2.       On the first day of each Interest Period (or as soon as possible
         thereafter) the Agent shall calculate, as a percentage rate, a rate
         (the ADDITIONAL COST RATE) for each Lender, in accordance with the
         paragraphs set out below. The Mandatory Cost will be calculated by the
         Agent as a weighted average of the Lenders' Additional Cost Rates
         (weighted in proportion to the percentage participation of each Lender
         in the relevant Loan) and will be expressed as a percentage rate per
         annum.

3.       The Additional Cost Rate for any Lender lending from a Facility Office
         in a Participating Member State will be the percentage notified by that
         Lender to the Agent. This percentage will be certified by that Lender
         in its notice to the Agent to be its reasonable determination of the
         cost (expressed as a percentage of that Lender's participation in all
         Loans made from that Facility Office) of complying with the minimum
         reserve requirements of the European Central Bank in respect of loans
         made from that Facility Office.

4.       The Additional Cost Rate for any Lender lending from a Facility Office
         in the United Kingdom will be calculated by the Agent as follows:

         (a)      in relation to a sterling Loan:

                  AB + C(B - D) + E x 0.01
                  ------------------------ per cent. per annum
                       100 - (A + C)

         (b)      in relation to a Loan in any currency other than sterling:

                  E x 0.01
                  -------- per cent. per annum
                    300

                  Where:

                  A        is the percentage of Eligible Liabilities (assuming
                           these to be in excess of any stated minimum) which
                           that Lender is from time to time required to maintain
                           as an interest free cash ratio deposit with the Bank
                           of England to comply with cash ratio requirements.

                  B        is the percentage rate of interest (excluding the
                           Margin and the Mandatory Cost and, if the Loan is an
                           Unpaid Sum, the additional rate of interest specified
                           in paragraph (a) of clause 9.7 (Default interest))
                           payable for the relevant Interest Period on the Loan.

                                     - 92 -
<PAGE>

                  C        is the percentage (if any) of Eligible Liabilities
                           which that Lender is required from time to time to
                           maintain as interest bearing Special Deposits with
                           the Bank of England.

                  D        is the percentage rate per annum payable by the Bank
                           of England to the Agent on interest bearing Special
                           Deposits.

                  E        is designed to compensate Lenders for amounts payable
                           under the Fees Rules and is calculated by the Agent
                           as being the average of the most recent rates of
                           charge supplied by the Reference Banks to the Agent
                           pursuant to paragraph 7 and expressed in pounds per
                           (pound)1,000,000.

5.       For the purposes of this Schedule:

         (a)      ELIGIBLE LIABILITIES and SPECIAL DEPOSITS have the meanings
                  given to them from time to time under or pursuant to the Bank
                  of England Act 1998 or (as may be appropriate) by the Bank of
                  England;

         (b)      FEES RULES means the rules on periodic fees contained in the
                  FSA Supervision Manual or such other law or regulation as may
                  be in force from time to time in respect of the payment of
                  fees for the acceptance of deposits;

         (c)      FEE TARIFFS means the fee tariffs specified in the Fees Rules
                  under the activity group A.1 Deposit acceptors (ignoring any
                  minimum fee or zero rated fee required pursuant to the Fees
                  Rules but taking into account any applicable discount rate);
                  and

         (d)      TARIFF BASE has the meaning given to it in, and will be
                  calculated in accordance with, the Fees Rules.

6.       In application of the above formulae, A, B, C and D will be included in
         the formulae as percentages (i.e. 5 per cent. will be included in the
         formula as 5 and not as 0.05). A negative result obtained by
         subtracting D from B shall be taken as zero. The resulting figures
         shall be rounded to four decimal places.

7.       If requested by the Agent, each Reference Bank shall, as soon as
         practicable after publication by the Financial Services Authority,
         supply to the Agent, the rate of charge payable by that Reference Bank
         to the Financial Services Authority pursuant to the Fees Rules in
         respect of the relevant financial year of the Financial Services
         Authority (calculated for this purpose by that Reference Bank as being
         the average of the Fee Tariffs applicable to that Reference Bank for
         that financial year) and expressed in pounds per (pound)1,000,000 of
         the Tariff Base of that Reference Bank.

8.       Each Lender shall supply any information required by the Agent for the
         purpose of calculating its Additional Cost Rate. In particular, but
         without limitation, each Lender shall supply the following information
         on or prior to the date on which it becomes a Lender:

         (a)      the jurisdiction of its Facility Office; and

         (b)      any other information that the Agent may reasonably require
                  for such purpose.

                                     - 93 -
<PAGE>

         Each Lender shall promptly notify the Agent of any change to the
         information provided by it pursuant to this paragraph.

9.       The percentages of each Lender for the purpose of A and C above and the
         rates of charge of each Reference Bank for the purpose of E above shall
         be determined by the Agent based upon the information supplied to it
         pursuant to paragraphs 7 and 8 and on the assumption that, unless a
         Lender notifies the Agent to the contrary, each Lender's obligations in
         relation to cash ratio deposits and Special Deposits are the same as
         those of a typical bank from its jurisdiction of incorporation with a
         Facility Office in the same jurisdiction as its Facility Office.

10.      The Agent shall have no liability to any person if such determination
         results in an Additional Cost Rate which over or under compensates any
         Lender and shall be entitled to assume that the information provided by
         any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8 is true
         and correct in all respects.

11.      The Agent shall distribute the additional amounts received as a result
         of the Mandatory Cost to the Lenders on the basis of the Additional
         Cost Rate for each Lender based on the information provided by each
         Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8.

12.      Any determination by the Agent pursuant to this Schedule in relation to
         a formula, the Mandatory Cost, an Additional Cost Rate or any amount
         payable to a Lender shall, in the absence of manifest error, be
         conclusive and binding on all Parties.

13.      The Agent may from time to time, after consultation with the Company
         and the Lenders, determine and notify to all Parties any amendments
         which are required to be made to this Schedule in order to comply with
         any change in law, regulation or any requirements from time to time
         imposed by the Bank of England, the Financial Services Authority or the
         European Central Bank (or, in any case, any other authority which
         replaces all or any of its functions) and any such determination shall,
         in the absence of manifest error, be conclusive and binding on all
         Parties.

                                     - 94 -
<PAGE>

                                   SCHEDULE 5

                           FORM OF TRANSFER AGREEMENT

This Transfer Agreement is made on [   ]

BETWEEN:

(1)  [       ] (the "EXISTING LENDER")

AND:

(2)  [       ] (the "NEW LENDER")

WHEREAS:

(A)      The Existing Lender has entered into a euro term loan facility in an
         aggregate amount equal to [...] (figures and letters), a euro term loan
         facility in an aggregate amount equal to [...] (figures and letters)
         and a multicurrency revolving loan facility in an aggregate amount
         equal to [...] (figures and letters) under a facility agreement dated
         [...] January 2004, between the Company, the Financial Institutions
         listed in Part II of Schedule 1 to that Facility Agreement, BNP Paribas
         and Merrill Lynch Credit Products acting as Mandated Lead Arrangers,
         and BNP Paribas acting as Agent of the Lenders (the "Facility
         Agreement").

         [The Additional Borrowers listed in Schedule 1 attached to this
         Transfer Agreement have become "Additional Borrowers" in accordance
         with clause 24.2 of the Facility Agreement (Additional Borrowers).]

(B)      The Existing Lender wishes to transfer and the New Lender wishes to
         acquire [all] [the part specified in Schedule 2 of this Transfer
         Agreement] of the Existing Lender's Commitment, rights and obligations
         referred to in Schedule 2 to this Transfer Agreement.

(C)      Terms defined in the Facility Agreement have the same meaning when used
         in this Transfer Agreement.

IT IS AGREED AS FOLLOWS:

1.       The Existing Lender and the New Lender agree to the transfer (cession)
         of [all] [the part specified in Schedule 2 of this Transfer Agreement]
         of the Existing Lender's Commitment, rights and obligations referred to
         in Schedule 2 to this Transfer

                                     - 95 -
<PAGE>

         Agreement in accordance with Clause 23.5 of the Facility Agreement
         (Procedure for transfer).(a)

2.       The proposed Transfer Date is [...].

3.       The Facility Office and address, fax number and attention details for
         notices of the New Lender for the purposes of Clause 30.2 (Addresses)
         are set out in Schedule 2 of this Transfer Agreement.

4.       The New Lender acknowledges the limitations on the Existing Lender's
         liabilities set out in paragraph (c) of Clause 23.4 (Limitation of
         responsibility of Existing Lenders) of the Facility Agreement.

5.       The New Lender confirms to the other Finance Parties represented by the
         Agent that it will assume the same obligations to those Parties as it
         would have been under if it was an Original Lender

6.       This Transfer Agreement is governed by French law. The Tribunal of
         Commerce of Paris shall have jurisdiction in relation to any dispute
         concerning it.

                                   SCHEDULE 1

                          NAME OF ADDITIONAL BORROWERS

                                   SCHEDULE 2

               COMMITMENT/RIGHTS AND OBLIGATIONS TO BE TRANSFERRED

                            [insert relevant details]
   [Facility Office address, fax number and attention details for notices and
                         account details for payments]

[Existing Lender]                                             [New Lender]

By:                                                           By:

This Transfer Agreement is accepted by the Agent and the Transfer Date is
confirmed as [     ].

[Agent]

By:

--------------------------
(a)      The New Lender may, in the case of a transfer of rights by the Existing
         Lender under this Transfer Agreement, if it considers it necessary to
         make the transfer effective as against third parties, arrange for it to
         be notified by way of signification to the Obligors in accordance with
         article 1690 of the French Code Civil.

                                     - 96 -
<PAGE>

                                   SCHEDULE 6
                            FORM OF ACCESSION LETTER

To:   [     ] as Agent

From: [Subsidiary] and [Company]

Dated:

Dear Sirs

SANOFI-SYNTHELABO - EUR 12,000,000,000 FACILITY AGREEMENT DATED [ ] JANUARY 2004
(THE "FACILITY AGREEMENT")

1.       We refer to the Agreement. This is an Accession Letter. Terms defined
         in the Agreement have the same meaning in this Accession Letter unless
         given a different meaning in this Accession Letter.

2.       [Subsidiary] agrees to become an Additional Borrower and to be bound by
         the terms of the Facility Agreement as an Additional Borrower pursuant
         to Clause 24.2 (Additional Borrowers) of the Agreement. [Subsidiary] is
         a company duly incorporated under the laws of [name of relevant
         jurisdiction].

3.       [Subsidiary's] administrative details are as follows:

         Address:

         Fax No:

         Attention:

4. This Accession Letter is governed by French law.

        [Company]                               [Subsidiary]

        Accepted by the Agent

                                     - 97 -
<PAGE>

                                   SCHEDULE 7

                           FORM OF RESIGNATION LETTER

To:   [      ] as Agent

From: [resigning Obligor] and [Company]

Dated:

Dear Sirs

SANOFI-SYNTHELABO - EUR 12,000,000,000 FACILITY AGREEMENT DATED [ ] JANUARY 2004
(THE "FACILITY AGREEMENT")

1.       We refer to the Agreement. This is a Resignation Letter. Terms defined
         in the Agreement have the same meaning in this Resignation Letter
         unless given a different meaning in this Resignation Letter.

2.       Pursuant to Clause 24.3 (Resignation of a Borrower), we request that
         [resigning Borrower] be released from its obligations as a Borrower
         under the relevant Finance Document.

3.       We confirm that:

         (a)      no Default is continuing or would result from the acceptance
                  of this request; and

         (b)      no amounts remains due by the [resigning Obligor] under any
                  Finance Documents. *

4.       This Resignation Letter is governed by French law.

         [Company]                                      [Subsidiary]

         By:                                             By:

----------------------------
* Insert any other conditions required by the Agreement.

                                     - 98 -
<PAGE>

                                   SCHEDULE 8

                         FORM OF COMPLIANCE CERTIFICATE

To:   BNP Paribas as Agent

From: The Company

Dated:

Dear Sirs,

SANOFI-SYNTHELABO - EUR 12,000,000,000 FACILITY AGREEMENT DATED [ ] JANUARY 2004
(THE "FACILITY AGREEMENT")

1.       We refer to the Facility Agreement. This is a Compliance Certificate as
         such term is defined in the Facility Agreement. Terms defined in this
         Compliance Certificate shall have the meanings ascribed to them in the
         Facility Agreement unless given a different meaning in this Compliance
         Certificate.

2.       We confirm that: [Insert details of covenants to be certified]

3.       [We confirm that no Default is continuing.]*

Signed:   ...

          ..................

     Chief Financial Officer or Chief Executive Officer
     of Sanofi-Synthelabo

-----------------------
* If this statement cannot be made, the certificate  should identify any Default
  that is continuing and the steps, if any, being taken to remedy it.

                                     - 99 -
<PAGE>

                                   SCHEDULE 9

                                EXISTING SECURITY

                                      NONE

                                    - 100 -
<PAGE>

                                  SCHEDULE 10

                       FORM OF CONFIDENTIALITY UNDERTAKING

[LETTERHEAD OF SELLER/SELLER'S AGENT/BROKER]

To:

                                                  [insert name of Potential

                                                  Purchaser/Purchaser's
                                                  agent/broker]

Re: THE AGREEMENT

BORROWER: SANOFI-SYNTHELABO

DATE:     [   ]

AMOUNT:   EUR 12,000,000,0000

AGENT:    BNP PARIBAS

Dear Sirs,

We understand that you are considering  [acquiring]/[arranging the acquisition
of] an interest in the Facility Agreement (the "ACQUISITION").  In consideration
of us agreeing to make available to you certain  information, by your signature
of a copy of this letter you agree as follows:

1.       Confidentiality Undertaking You undertake (a) to keep the Confidential
         Information confidential and not to disclose it to anyone except as
         provided for by paragraph 2 below and to ensure that the Confidential
         Information is protected with security measures and a degree of care
         that would apply to your own confidential information, (b) to use the
         Confidential Information only for the Permitted Purpose, (c) to use all
         reasonable endeavours to ensure that any person to whom you pass any
         Confidential Information (unless disclosed under paragraph 2[(c)/(d)]
         below) acknowledges and complies with the provisions of this letter as
         if that person were also a party to it, and (d) not to make enquiries
         of any member of the Group or any of their officers, directors,
         employees or professional advisers relating directly or indirectly to
         the Acquisition.

2.       Permitted Disclosure We agree that you may disclose Confidential
         Information:

         (a)      to members of the Purchaser Group and their officers,
                  directors, employees and professional advisers to the extent
                  necessary for the Permitted Purpose and to any auditors of
                  members of the Purchaser Group;

                                    - 101 -
<PAGE>

         [(b)       subject to the requirements of the Agreement, in accordance
                    with the Permitted Purpose so long as any prospective
                    purchaser has delivered a letter to you in equivalent form
                    to this letter;]

         [(b/c)](c) subject to the requirements of the Agreement, to any
                    person to (or through) whom you assign or transfer (or may
                    potentially assign or transfer) all or any of the rights,
                    benefits and obligations which you may acquire under the
                    Agreement or with (or through) whom you enter into (or may
                    potentially enter into) any sub-participation in relation
                    to, or any other transaction under which payments are to
                    be made by reference to, the Agreement or the Borrowers or
                    any member of the Group so long as that person has
                    delivered a letter to you in equivalent form to this
                    letter; and

       [(c/d)](c)   (i) where requested or required by any court of competent
                    jurisdiction or any competent judicial, governmental,
                    supervisory or regulatory body, (ii) where required by the
                    rules of any stock exchange on which the shares or other
                    securities of any member of the Purchaser Group are listed
                    or (iii) where required by the laws or regulations of any
                    country with jurisdiction over the affairs of any member of
                    the Purchaser Group.

3.       Notification of Required or Unauthorised Disclosure You agree (to the
         extent permitted by law) to inform us of the full circumstances of any
         disclosure under paragraph 2[(c)/(d)](c) or upon becoming aware that
         Confidential Information has been disclosed in breach of this letter.

4.       Return of Copies If we so request in writing, you shall return all
         Confidential Information supplied to you by us and destroy or
         permanently erase all copies of Confidential Information made by you
         and use all reasonable endeavours to ensure that anyone to whom you
         have supplied any Confidential Information destroys or permanently
         erases such Confidential Information and any copies made by them, in
         each case save to the extent that you or the recipients are required to
         retain any such Confidential Information by any applicable law, rule or
         regulation or by any competent judicial, governmental, supervisory or
         regulatory body or in accordance with internal policy, or where the
         Confidential Information has been disclosed under paragraph
         2[(c)/(d)](c) above.

5.       Continuing Obligations The obligations in this letter are continuing
         and, in particular, shall survive the termination of any discussions or
         negotiations between you and us. Notwithstanding the previous sentence,
         the obligations in this letter shall cease (a) if you become a party to
         or otherwise acquire (by assignment or sub-participation) an interest,
         direct or indirect, in the Agreement or (b) twelve months after you
         have returned all Confidential Information supplied to you by us and
         destroyed or permanently erased all copies of Confidential Information
         made by you (other than any such Confidential Information or copies
         which have been disclosed under paragraph 2 above (other than
         sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not
         required to be returned or destroyed).

6.       No Representation, Consequences of Breach, etc. You acknowledge and
         agree that:

         (a)      neither we, [nor our principal] nor any member of the Group
                  nor any of our or their respective officers, employees or
                  advisers (each a "RELEVANT PERSON") (i) make any
                  representation or warranty, express or implied, as to, or
                  assume any responsibility for, the accuracy, reliability or
                  completeness of any of the Confidential Information or any
                  other information supplied by us

                                    - 102 -
<PAGE>

                  or the assumptions on which it is based or (ii) shall be under
                  any obligation to update or correct any inaccuracy in the
                  Confidential Information or any other information supplied by
                  us or be otherwise liable to you or any other person in
                  respect to the Confidential Information or any such
                  information; and

         (b)      we [or our principal](d) or members of the Group may be
                  irreparably harmed by the breach of the terms hereof and
                  damages may not be an adequate remedy; each Relevant Person
                  may be granted an injunction or specific performance for any
                  threatened or actual breach of the provisions of this letter
                  by you.

7.       No Waiver; Amendments, etc. This letter sets out the full extent of
         your obligations of confidentiality owed to us in relation to the
         information subject of this letter. No failure or delay in exercising
         any right, power or privilege hereunder will operate as a waiver
         thereof nor will any single or partial exercise of any right, power or
         privilege preclude any further exercise thereof or the exercise of any
         other right, power or privileges hereunder. The terms of this letter
         and your obligations hereunder may only be amended or modified by
         written agreement between us.

8.       Inside Information You acknowledge that some or all of the Confidential
         Information is or may be price-sensitive information and that the use
         of such information may be regulated or prohibited by applicable
         legislation relating to insider dealing and you undertake not to use
         any Confidential Information for any unlawful purpose.

9.       Nature of Undertakings The undertakings given by you under this letter
         are given to us and (without implying any fiduciary obligations on our
         part) are also given for the benefit of [our principal,]d the Borrowers
         and each other member of the Group.

10.      Third party rights

         (a)      Subject to paragraph 6 and paragraph 9 the terms of this
                  letter may be enforced and relied upon only by you and us.

         (b)      Notwithstanding any provisions of this letter, the parties to
                  this letter do not require the consent of any Relevant Person
                  or any member of the Group to rescind or vary this letter at
                  any time.

11.      Governing Law and Jurisdiction This letter (including the agreement
         constituted by your acknowledgement of its terms) shall be governed by
         and construed in accordance with the laws of France and the parties
         submit to the non-exclusive jurisdiction of the French courts.

12.      Definitions In this letter (including the acknowledgement set out
         below) terms defined in the Agreement shall, unless the context
         otherwise requires, have the same meaning and:

         "CONFIDENTIAL INFORMATION" means any information relating to either
         Borrower, the Group, the Facility Agreement and/or the Acquisition
         provided to you by us or any of our affiliates or advisers, in whatever
         form, and includes information given orally and any document,
         electronic file or any other way of representing or recording
         information which contains or is derived or copied from such
         information but excludes information that (a) is or becomes public
         knowledge other than as a direct or indirect result of any breach of
         this letter or (b) is known by you before the date the

                                    - 103 -
<PAGE>

         information is disclosed to you by us or any of our affiliates or
         advisers or is lawfully obtained by you thereafter, other than from a
         source which is connected with the Group and which, in either case, as
         far as you are aware, has not been obtained in violation of, and is not
         otherwise subject to, any obligation of confidentiality;

         "GROUP" means Borrower and each of its holding companies and
         subsidiaries and each subsidiary of each of its holding companies;

         "PERMITTED PURPOSE" means [subject to the terms of this letter, passing
         on information to a prospective purchaser for the purpose of]b
         considering and evaluating whether to enter into the Acquisition; and

         "PURCHASER GROUP" means you, each of your holding companies and
         subsidiaries and each subsidiary of each of your holding companies.

         Please acknowledge your agreement to the above by signing and returning
         the enclosed copy.

         Yours faithfully

         ...................................

         For and on behalf of

         [Seller/Seller's agent/broker]

         To:      [Seller]

                  [Seller's agent/broker]

                  The Borrower and each other member of the Group

         We acknowledge and agree to the above:

         ...................................

         For and on behalf of

         [Potential Purchaser/Purchaser's agent/broker]

                                    - 104 -
<PAGE>

                                   SCHEDULE 11

                                   TIMETABLES

<TABLE>
<CAPTION>
                                                                LOANS IN AN OPTIONAL
                                      LOANS IN EURO             CURRENCY
<S>                                   <C>                       <C>
Delivery of a duly completed          11 a.m Paris time         11 a.m Paris time
Utilisation Request (Clause 5.1       3 Business Days           3 Business Days prior to
(Utilisation under Facility A         prior to the              the proposed Utilisation
and Facility B) or Clause 5.2         proposed Utilisation      Date
(Utilisation under Facility C)        Date

Agent determines (in relation         N/A                       11 a.m London time
to a Utilisation) the Base                                      3 Business Days prior to
Currency Amount of the Loan, if                                 the proposed Utilisation
required under Clause 5.4                                       Date
(Lenders' participation)

Agent notifies the Lenders of         Promptly upon             Promptly upon receipt from
the Loan in accordance with           receipt from the          the Borrower
Clause 5.4 (Lenders'                  Borrower
participation)

Agent receives a notification         N/A                       Quotation Day as of 9 a.m.
from a Lender under Clause 6.2                                  Paris time
(Unavailability of a currency)
</TABLE>

                                    - 105 -
<PAGE>

                                   SCHEDULE 12

                                FORM OF GUARANTEE

         FIRST DEMAND GUARANTEE (GARANTIE A PREMIERE DEMANDE) BETWEEN:

(1)      SANOFI-SYNTHELABO, a French company whose registered office is at 174
         avenue de France, 75013 Paris, registered under identification number
         395 030 844 RCS Paris, and represented by [ ], duly authorised for the
         purposes hereof,

                                                    (hereinafter, the GUARANTOR)

(2)      BNP PARIBAS, a French company whose registered office is at 16
         boulevard des Italiens, 75009 Paris, registered under identification
         number 662 042 449 RCS Paris, acting as agent for the account and on
         behalf of the Lenders (as defined below), and represented by [ ], duly
         authorised for the purposes hereof,

                                                        (hereinafter, the AGENT)

         WHEREAS:

(A)      On [ ] January 2004, the Guarantor has entered into a EUR
         12,000,000,000 facility agreement (the FACILITY AGREEMENT) with inter
         alia BNP Paribas and Merrill Lynch Credit Products as mandated lead
         arrangers, underwriters and joint-book runners, BNP Paribas and Merrill
         Lynch Credit Products as original lenders and BNP Paribas as agent.

(B)      Pursuant to an accession letter entered into on the date hereof between
         the Additional Borrower (as defined below), the Guarantor and the Agent
         (the ACCESSION LETTER), the Additional Borrower has acceded to the
         Facility Agreement and is therefore entitled to borrow up to a maximum
         amount of EUR [ ] (or its equivalent in certain other currencies) under
         the Facility Agreement.

(C)      The accession of the Additional Borrower has been made on the condition
         that the Guarantor enters into this guarantee undertaking (the
         GUARANTEE) upon the following terms and conditions.

IT IS HEREBY AGREED AS FOLLOWS:

1.       DEFINITIONS

         In this Guarantee except to the extent that the context requires
         otherwise:

         ADDITIONAL BORROWER means [name and description of the relevant
         Additional Borrower];

         LENDER means any financial institution which is a lender from time to
         time under the Facility Agreement (whether originally or following a
         transfer or an assignment made in accordance with the provisions of the
         Facility Agreement).

                                    - 106 -
<PAGE>

2.       GUARANTEE

(a)      The Guarantor irrevocably undertakes in favour of the Agent (for the
         benefit of the Lenders) to pay to it, upon first demand and in
         accordance with the terms and conditions set out below, any sums up to
         EUR [ ](b) (or the equivalent thereof in any other currency) as claimed
         under the notice referred to below.

(b)      The amounts referred to above shall be payable by the Guarantor to the
         Agent upon first demand from the Agent and such demand shall be made by
         way of a written notice sent to the Guarantor in the form set out in
         the Schedule hereto. The Guarantor shall pay such amounts to the Agent
         within 3 business days following receipt of the aforementioned notice.

(c)      The Agent shall be entitled to make a single or several calls to the
         Guarantor under this Guarantee, subject to not exceeding the overall
         maximum amount as provided in Clause 2.(a).

(d)      This Guarantee constitutes an independent, irrevocable and
         unconditional undertaking (garantie autonome a premiere demande) by the
         Guarantor, who expressly waives the right to rely on any exception
         whatsoever, arising out of the relations between the Agent and/or the
         Lenders and the Additional Borrower, for the purpose of deferring or
         releasing itself from the performance of its obligations under this
         Guarantee.

3.       NO IMPAIRMENT

         As a result of the independent nature of this Guarantee, the
         Guarantor's obligations hereunder shall in no way be altered,
         cancelled, reduced or deferred, and the Guarantor shall not be released
         from performing such obligations, by any of, but not limited to, the
         following events:

         (a)      The nullity, termination, cancellation or expiry of the
                  Facility Agreement or any of its provisions;

         (b)      any extension or renewal of the Facility Agreement, or any
                  amendment to any of its provisions, or

         (c)      any delay in exercising, failure to exercise or waiving by the
                  Agent and/or the Lenders of any right or means of recourse
                  available to each of them under the terms of the Facility
                  Agreement.

4.       SUBROGATION/SUBORDINATION

         (a)      Upon payment of any amounts to the Agent under this Guarantee,
                  the Guarantor may, at its request, be subrogated up to the
                  relevant amount paid (and subject to the terms of Clause 4.(b)
                  below), at its expense and at its own risk, in the rights of
                  the Lenders as against the Additional Borrower pursuant to the
                  Facility Agreement.

         (b)      All rights of, and/or means of recourse available to, the
                  Guarantor as against the Additional Borrower as a result of
                  the subrogation described in Clause 4.(a), or under its direct
                  rights (if any) against the Additional Borrower, shall be
                  subordinated to the Lenders' rights against the Additional
                  Borrower arising under the Facility Agreement and shall be
                  deferred until such time as each Lender confirms that it has

---------------------------
(b) Being 115% of the maximum amount referred to in Whereas (B).

                                      - 2 -
<PAGE>
         received all sums payable to it by the Additional Borrower and the
         Additional Borrower has ceased to be an Additional Borrower under the
         Facility Agreement.

(c)      The Guarantor undertakes to collect, upon request from the Agent and
         to  the extent necessary to pay any amounts claimed under this
         Guarantee and in order to give full effect to the terms contained in
         Clause 4.(b), all amounts (or a portion thereof) payable to the
         Guarantor by the Additional Borrower and to repay all or a portion of
         such collected amounts to the Agent.

5.       REPRESENTATIONS AND WARRANTIES OF THE GUARANTOR

(a)      The Guarantor represents and warrants to the Agent that:

         (i)      As from the date on which the Guarantor acquires control over
                  the Additional Borrower, it will be fully aware of the
                  prospects and condition of the Additional Borrower's finances
                  and assets;

         (ii)     It is a corporation, duly incorporated and validly existing
                  under the laws of France and it has the power to enter into,
                  perform and deliver, and has taken all necessary action to
                  authorise its entry into, performance and delivery of the
                  Guarantee and the transactions contemplated by the Guarantee
                  (including the authorisation by its board of directors in
                  accordance with article L.225-35 of the French Code de
                  Commerce).;

         (iii)    Subject to Clause 18.15 of the Facility Agreement (Non
                  Applicability), delivery of the Accession Letter constitutes
                  confirmation by the Guarantor that the Repeating
                  Representations (as defined under the Facility Agreement) are
                  true and correct in relation to the Additional Borrower as at
                  the date of delivery as if made by reference to the facts and
                  circumstances then existing.

(b)      Each of the aforementioned representations and warranties shall remain
         in force and shall continue to be effective from the date of execution
         of this Guarantee until the complete payment or discharge of all
         amounts payable under this Guarantee.

6.       FURTHER UNDERTAKINGS OF THE GUARANTOR

         For the duration of this Guarantee and until all sums payable under
         this Guarantee have been paid and all other obligations on the
         Guarantor under this Guarantee have been satisfied, the Guarantor
         undertakes:

         (a)      to hold (directly or indirectly) at least 50.01% of the
                  capital and voting rights in the Additional Borrower (a
                  "CONTROLLING STAKE") for so long as there are loans
                  outstanding under the Facility Agreement to the Additional
                  Borrower and unless such loans are repaid in full on or prior
                  to the date on which the Guarantor ceases to hold directly or
                  indirectly a Controlling Stake;

         (b)      to provide the Agent with any additional information or
                  estimates which the Agent may reasonably require from time to
                  time in accordance with Clause 19.4 of the Facility Agreement.

7.       TAX

         If, for any reason, the Guarantor has to deduct, withhold or levy any
         amount from the sums payable by it under this Guarantee, such sums
         shall to the extent permitted

                                      - 3 -
<PAGE>

         by French Law be increased by the amount necessary to ensure that each
         Lender receives, after any such deduction, withholding or other levy, a
         net amount equal to that which it would have received if no such
         deduction, withholding or levy had been made.

8.       TERM - NOTICES

(a)      This Guarantee shall terminate on 30 June 2009 or on such earlier date
         as the Agent (acting on the instructions of the Lenders) may specify in
         a notice of release. Any calls received after such date shall be
         inoperative.

(b)      Any communication to be made under or in connection with this Guarantee
         shall be made in writing and, unless otherwise stated, may be made by
         fax, letter or telex.

(c)      The address, fax number and telex number (and the department or
         officer, if any, for whose attention the communication is to be made)
         of each party for any communication or document to be made or delivered
         under or in connection with the Guarantee is:

         (i)      in the case of the Company:

                           Address:    Sanofi-Synthelabo
                                       [Address]
                                       [Address]
                           Fax number: + [ ][________ ]
                           Attention:  [______________]

         (ii)     in the case of the Agent:

                           Address:    BNP Paribas
                                       [Address]
                                       [Address]
                           Fax number: + [ ][________ ]
                           Attention:  [______________]

Or such other address as may be notified by either party to the other from time
to time.

9.       MISCELLANEOUS PROVISIONS

(a)      This Guarantee shall automatically benefit to each Lender under the
         Facility Agreement without any notice or carrying of any formality.

(b)      The Agent shall deliver a notice of release to the Guarantor when the
         Additional Borrower ceases to be an Additional Borrower pursuant to
         Clause 24.3(b) of the Facility Agreement (Resignation of a Borrower).

10.      GOVERNING LAW/JURISDICTION

(a)      This Guarantee is governed by French law.

(b)      The Tribunal de Commerce de Paris has exclusive jurisdiction to settle
         any dispute arising out of or in connection with this Guarantee
         (including a dispute regarding the existence, validity or termination
         of this Guarantee) (a DISPUTE). This clause is for the benefit of the
         Agent and the Lenders only. As a result, neither the Agent nor the
         Lenders shall be prevented from taking proceedings relating to a
         Dispute in any

                                      - 4 -
<PAGE>

         other courts with jurisdiction. To the extent allowed by law, the Agent
         and/or the Lenders may take concurrent proceedings in any number of
         jurisdictions.

Signed in [   ] in [   ] originals

On [   ]

------------------------------              ---------------------------
SANOFI-SYNTHELABO                           BNP PARIBAS

Represented by: [   ]                       Represented by: [   ]

                                      - 5 -
<PAGE>

                                    ANNEXE 1

                                 FORM OF NOTICE

[Letterhead of the Agent]

To:   [the Guarantor]

[   ]

[   ]

Attention:

[Date]

Dear Sirs,

We refer to the first demand guarantee dated [--] entered into by your company
for the benefit of the Lenders under the Facility Agreement.

We request that you forthwith pay us (for the account of the Lenders) [currency
and amount] by way of a credit transfer to the following account: [--].

For information purposes only, we certify that an amount at least equal to the
amount claimed under this notice is due and payable but unpaid as at the date
hereof by [name of the relevant Additional Borrower] under the Facility
Agreement.

Yours faithfully,

[the Agent]

                                      - 6 -
<PAGE>

                                   SCHEDULE 13

                              MATERIAL SUBSIDIARIES

1.       Sanofi Winthrop Industries

2.       Sanofi-Synthelabo Inc

3.       Sanofi-Synthelabo France

4.       Sanofi-Synthelabo Gmbh

                                     - 7 -

<PAGE>

                                   SIGNATORIES

THE COMPANY
SANOFI-SYNTHELABO SA
BY: JEAN-CLAUDE LEROY

THE MANDATED LEAD ARRANGERS, UNDERWRITERS AND JOINT-BOOK RUNNERS
BNP PARIBAS SA
BY: JEAN-LOUIT DUGUIT

MERRILL LYNCH CREDIT PRODUCTS LLC
BY: CHARLES WICKHAM

THE ORIGINAL LENDERS
BNP PARIBAS SA
BY: JEAN-LOUIT DUGUIT

MERRILL LYNCH CREDIT PRODUCTS LLC
BY: CHARLES WICKHAM

THE AGENT
BNP PARIBAS SA
BY: JEAN-LOUIT DUGUIT

THE PRESENTING BANK
BNP PARIBAS SA
BY: JEAN-LOUIT DUGUIT

                                     - 8 -

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