Document:

EXHIBIT 10.1

                              SNAP-ON INCORPORATED
                           DEFERRED COMPENSATION PLAN

                      (as amended through August 21, 2003)

                     Section 1. Establishment and Purposes

     1.1 Establishment. Snap-on Incorporated established effective as of April
1, 1986, a deferred compensation plan for executives as described herein, known
as the "SNAP-ON INCORPORATED DEFERRED COMPENSATION PLAN" (hereinafter called the
"Plan"). Snap-on Incorporated hereby amends the Plan effective August 21, 2003.

     1.2 Purposes. The purposes of this Plan are to (i) enable the Corporation
to attract and retain persons of outstanding competence, (ii) provide a means
whereby certain amounts payable by the Corporation to selected executives may be
deferred to some future period and to provide such executives with a means to
have deferred amounts treated as if invested in the Corporation's stock, thereby
aligning their interests more closely with the interests of shareholders and
(iii) effective July 1, 2001, provide a matching credit by the Corporation to
certain elected officers of the Corporation and to provide such elected officers
with alternatives as to the manner in which annual adjustments are made to their
credited matching accounts. The Plan is intended to constitute an unfunded plan
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees.

                             Section 2. Definitions

     2.1 Definitions. Whenever used herein, the following terms shall have the
meanings set forth below:

     (a) "Board" means the Board of Directors of the Corporation.

     (b) "Cause" means that prior to a Participant's Termination of Employment,
he shall have (i) engaged in any act of fraud, embezzlement or theft in
connection with his duties as an executive or in the course of employment with
the Corporation or its subsidiaries; (ii) wrongfully disclosed any secret
process or confidential information of the Corporation or its subsidiaries; or
(iii) engaged in any Competitive Activity; and in any such case the act shall
have been determined to have been materially harmful to the Corporation. A
Participant's employment may not be terminated for Cause prior to the receipt by
the Participant of a copy of a resolution duly adopted by the affirmative vote
of not less than three-quarters (3/4) of the entire membership of the Board at a
meeting of the Board called and held for the purpose of considering such
termination (after reasonable notice to the Participant and an opportunity for
the Participant, together with the Participant's counsel, to be heard before the
Board) finding that the Participant was guilty of conduct set forth in the
definition of Cause, and specifying the particulars thereof in detail. In the
event of a dispute regarding whether the Participant's employment has been
terminated for Cause, no claim by the Corporation that Cause exists shall be
given effect unless the Corporation establishes by clear and convincing evidence
that Cause exists.

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     (c) "Committee" means the Organization and Executive Compensation Committee
of the Board or, as to compensation matters in respect of which it has
authority, any other committee of the Board or director or officer of the
Corporation that has authority of the Organization and Executive Compensation
Committee of the Board relating to compensation matters.

     (d) "Common Stock" means the common stock, par value $1.00 per share, of
the Corporation.

     (e) "Compensation" means the gross Salary and Incentive Compensation
payable to a Participant during a given Year and Other Compensation payable to a
Participant during a given Year.

          (i) Salary. "Salary" means all regular, basic compensation, before
     reduction for amounts deferred pursuant to this Plan or any other plan of
     the Corporation, payable in cash to a Participant for services during the
     Year in question, exclusive of any bonuses or incentive compensation,
     special fees or awards, allowances, or amounts designated by the
     Corporation as payments toward or reimbursement of expenses.

          (ii) Incentive Compensation. "Incentive Compensation" means the annual
     Incentive Compensation Plan payable in cash by the Corporation to a
     Participant in the Year in question.

          (iii) Other Compensation. "Other Compensation" means other
     compensation payable in cash and/or Common Stock or other property by the
     Corporation to a Participant in the Year in question, including without
     limitation compensation payable under the Amended and Restated Snap-on
     Incorporated 2001 Incentive Stock and Awards Plan, as amended, if the award
     of such compensation provides that the Participant may defer the
     compensation.

          (iv) Match Compensation. "Match Compensation" means Salary and
     Incentive Compensation that a Participant eligible to receive matching
     credits under Section 5 would have otherwise received in the Year in
     question, but for such amounts being deferred pursuant to this Plan.

     (f) "Competitive Activity" shall mean the Participant's participation
without the written consent of the Board in the management of any business
enterprise which manufactures or sells any product or service competitive with
any product or service of the Corporation or its subsidiaries. Competitive
Activity shall not include the ownership of less than five (5) percent of the
securities in any enterprise and exercise of any ownership rights related
thereto.

     (g) "Corporation" means Snap-on Incorporated, a Delaware corporation.

     (h) "Fair Market Value" means the closing price of Common Stock on the New
York Stock Exchange on any particular date or, if no closing price is available
on that date, then the closing price on the immediately succeeding business day
on which there is a closing price; provided, however, that for purposes of
Section 17, Fair Market Value shall mean the closing price of the Common Stock
on the New York Stock Exchange on the date of the Change of

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Control (as defined therein) or, if higher, the highest price per share of
Common Stock paid in the transaction giving rise to the Change of Control.

     (i) "Growth Increment" means the amount of interest earned on a
Participant's deferred amounts in the Participant's Cash Account (as defined in
Section 6.1(a)).

     (j) "Participant" means an individual eligible to participate in the Plan
pursuant to Section 3.1.

     (k) "Retirement" means that (1) a Participant retires or is retired from
the employ of the Corporation and its subsidiaries (i) on or after attaining age
sixty-five (65) years or (ii) on or after attaining age fifty (50) years if the
Participant has completed ten or more years of continuous employment, as defined
in the Snap-on Incorporated Retirement Plan; (2) a Participant retires or is
retired from the employ of the Corporation and its subsidiaries because of total
and permanent disability; or (3) the Committee determines by resolution that a
Participant shall be deemed to have retired from the employ of the Corporation
and its subsidiaries for purposes of the Plan

     (l) "Termination of Employment" means (i) that a Participant has terminated
the Participant's employment with the Corporation and its subsidiaries for any
reason other than Retirement or Death; or (2) that the Corporation and its
subsidiaries have terminated the Participant's employment with the Corporation
and its subsidiaries for any reason other than Retirement or Death. Termination
of Employment does not include a Participant's change in status from full-time
employment to part-time employment.

     (m) "Year" means a calendar year.

     2.2 Gender and Number. Except when otherwise indicated by the context, any
masculine terminology used herein also shall include the feminine gender, and
the definition of any term herein in the singular also shall include the plural.

                    Section 3. Eligibility and Participation

     3.1 Eligibility. The Plan is primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated
employees. Subject to the preceding sentence, the following persons shall be
eligible to participate in the Plan:

     (a) the elected officers and appointed officers of the Corporation;

     (b) the elected officers and appointed officers of Snap-on Tools Company
LLC;

     (c) any other U.S. employee of the Corporation or any direct or indirect
subsidiary of the Corporation whose employment grade is Grade 37 or higher (or
the equivalent of Grade 37 or higher, as determined by the Chief Executive
Officer); and

     (d) any other employee of the Corporation or any direct or indirect
subsidiary of the Corporation designated by the Chair of the Committee or by the
Chief Executive Officer of the Corporation from time to time.

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     3.2 Ceasing Eligibility. In the event a Participant no longer meets the
requirements for participation in this Plan, he shall become an inactive
Participant. An inactive Participant shall retain all rights described under
this Plan, except the right to make any further deferrals and the right to
receive any further matching credits, until the time that he again meets the
eligibility requirements of Section 3.1 (and, if applicable, Section 5.1).

                          Section 4. Election to Defer

     4.1 Deferral Election. (a) Subject to the following provisions, a
Participant irrevocably may elect, by written notice to the Corporation, to
defer all or a percentage of annual Salary, Incentive Compensation, or both
Salary and Incentive Compensation.

          (i) With respect to Salary deferrals, the deferral percentage elected
     shall be applied to the Participant's Salary for each pay period of the
     Year to which the deferral election applies, and the deferral election must
     be made before the last business day of the Year immediately preceding the
     Year for which such deferral election applies.

          (ii) With respect to Incentive Compensation deferrals, the deferral
     percentage elected shall apply only to the Participant's Incentive
     Compensation payable with respect to service performed in the Year in which
     the deferral election is made, and the deferral election must be made
     before the last business day of such Year.

     (b) An individual who becomes a Participant at or after the beginning of
the Year may irrevocably elect, by written notice to the Corporation, to defer
all or a percentage of (i) the annual Salary earned by such Participant for such
Year after such election, if such election is made within thirty (30) days after
becoming a Participant, and (ii) the pro rata share of the Participant's
Incentive Compensation, if any, payable with respect to service performed during
such Year, if such election is made before the last business day of such Year.

     (c) If so provided in an award of Other Compensation, and subject to such
restrictions and conditions as may be set forth in the award or imposed by the
Corporation, a Participant irrevocably may elect, by written notice to the
Corporation, to defer all or a percentage of such Other Compensation.

     (d) In connection with a Participant's deferral election pursuant to this
Section 4.1 relating to Compensation that the Participant would have otherwise
received in a given Year, and thereafter from time to time during that Year as
determined by the Participant subject to any rules established by the Committee
pursuant to Section 11.1, the Participant shall provide written direction to the
Corporation indicating the portion of the Participant's Compensation that the
Participant would have otherwise received in that Year that should be (1)
credited to the Participant's Cash Account, except to the extent Section 6.5
would require a credit of some or all of the Compensation to the Participant's
Share Account (as defined in Section 6.1(a)); (2) credited to the Participant's
Share Account; or (3) for deferral elections made on or after September 1, 2003,
credited to the Participant's Mutual Fund Account (as defined in Section
6.1(a)), except to the extent Section 6.5 would require a credit of some or all
of the Compensation to the Participant's Share Account. Each written direction
shall become effective immediately upon receipt by the Corporation for
Compensation otherwise payable after such

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date subject to rules that the Committee establishes pursuant to Section 11.1. A
Participant who has elected to defer any of the Participant's Compensation to
the Mutual Fund Account shall further elect which one or more of the investment
funds, from those designated from time to time by the Committee as available to
Participants under the Plan (each a "Reference Fund" and, collectively, the
"Reference Funds"), shall be used for purposes of crediting hypothetical
investment gains or losses to the Participant's Mutual Fund Account, and the
Participant shall elect the percentage of the Participant's Compensation that is
to be deemed invested in each elected Reference Fund. To the extent a
Participant fails to elect an account to which to credit Compensation for a Year
pursuant to this Section 4.1(d), the Participant's Compensation for such Year
shall be credited to the Participant's Cash Account, except to the extent
Section 6.5 would require a credit of some or all of the Compensation to the
Participant's Share Account.

     4.2 Deferral Period (a) The first time a Participant makes an election
pursuant to this Section 4.1 relating to Compensation that the Participant would
have otherwise received in a given Year, the Participant irrevocably shall
select a single deferral period for all Compensation that the Participant would
have otherwise received in that Year ("Year Deferred Amounts"). The deferral
period shall be for a specified number of Years or until a specified date. The
earliest a deferral period may end is the first January 1 following the Year in
which the Participant would have otherwise received the Compensation.

     Respecting deferral elections made prior to September 1, 2003, a
Participant shall modify any such prior elections to ensure that going forward
all Year Deferred Amounts subject to such prior elections have a single deferral
period for Year Deferred Amounts for each Year in question. The Committee shall
establish the appropriate procedures and time frame to effect the required
modifications.

     (b) However, notwithstanding the deferral period specified, payments of
Year Deferred Amounts shall begin following the earliest to occur of:

          (i) Death,

          (ii) Subject to subsection (c), Retirement, or

          (iii) Subject to subsection (d), Termination of Employment.

     (c) A Participant may elect to have the deferral period for Year Deferred
Amounts continue beyond termination of employment due to Retirement by so
indicating when the Participant selects, or modifies pursuant to Section 4.4,
the Participant's deferral period for a the Year Deferred Amounts. At such time,
the Participant may elect one or more successive post -retirement deferral
periods of up to one (1) Year each, but in no event may the aggregate of these
successive post-retirement deferral periods and any annual installments elected
pursuant to Section 4.3 exceed twenty-five (25) years beyond termination of
employment due to Retirement.

     (d) Effective January 1, 2001, a Participant may elect to have the deferral
period for Year Deferred Amounts continue beyond Termination of Employment with
the Corporation, but only if such employment was terminated at the initiative of
the Corporation for reasons other than for Cause. A Participant may exercise
this one-time election by so indicating when the Participant selects, or
modifies pursuant to Section 4.4, the Participant's deferral period for the

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Year Deferred Amounts. At such time, the Participant may elect one or more
post-termination deferral periods of up to one (1) Year each, but in no event
may the aggregate of these successive post-retirement deferral periods and any
annual installments elected pursuant to Section 4.3 exceed twenty-five (25)
years beyond Termination of Employment initiated by the Corporation for reasons
other than Cause.

     4.3 Manner of Payment Election. At the same time as an election is made
pursuant to Section 4.1, or is modified pursuant to Section 4.4, the Participant
also may elect to have Year Deferred Amounts paid either in a lump sum or in up
to twenty-five (25) substantially equal annual installments; provided, however,
at such time a Participant that elects to receive payments in substantially
equal annual installments may also specify a date within the installment period
to receive all then remaining Year Deferred Amounts in a lump sum.

     4.4 Modification. A Participant may change the manner in which Year
Deferred Amounts will be paid and/or the date such payments are to commence by
written election made prior to the Year in which such payments are to commence.
A Participant may not make any modification pursuant to this Section 4.4 in or
after the Year payments commence respecting the deferral election in question.

                          Section 5. Matching Credits

     5.1 Effective Date and Eligibility. Effective July 1, 2001, the Corporation
shall credit matching credits under this Plan only to Participants described in
this Section at such time and in such amounts as provided in Section 5.2.
Notwithstanding anything to the contrary in the Plan, only those Participants
who are also actively participating in the cash balance formula in the Snap-on
Incorporated Supplemental Retirement Plan for Officers, as amended from time to
time, and are making deferrals under this Plan, or into the Snap-on Incorporated
Savings Plan, for the Year shall be eligible for a matching credit by the
Corporation for a Year for their benefit under this Plan.

     5.2 Time and Amount of Matching Contributions. The Corporation shall credit
matching credits under this Plan during each calendar quarter for the benefit of
each eligible Participant. The amount of the matching credit for each calendar
quarter for the benefit of an eligible Participant will be an amount equal to
the excess of:

     (a) the lesser of (i) the product of the Participant's Match Compensation
for the calendar quarter multiplied by fifty percent (50%), or (ii) three
percent (3%) of the Participant's Compensation (other than Other Compensation)
for such calendar quarter, over

     (b) the actual matching contribution made by the Corporation for the
benefit of such Participant for such calendar quarter under the Snap-on 401(k)
Plan.

     5.3 Deferral Period.

     (a) The deferral period selected for Year Deferred Amounts by a Participant
under Section 4.2 shall also apply to the matching credits credited under
Section 5 with respect to those Year Deferred Amounts.

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     (b) However, notwithstanding the deferral period specified, payments of
matching credits shall begin following the earliest to occur of:

          (i) Death,

          (ii) Subject to Section 4.2(c), Retirement, or

          (iii) Subject to section 4.2(d), Termination of Employment.

     5.4 Manner of Payment Election. A Participant's elected manner of payment
for Year Deferred Amounts under Section 4.3 shall also apply to the matching
credits credited under Section 5 with respect to those Year Deferred Amounts.

     5.5 Modification. A Participant's change in the manner in which Year
Deferred Amounts will be paid and/or the date such payments are to commence
under Section 4.4 will apply to the associated matching credits.

                              Section 6. Accounts

     6.1 Participant Accounts.

     (a) Deferred Compensation Accounts. The Corporation shall establish and
maintain individual bookkeeping accounts in respect of deferrals made by a
Participant consisting of a "Cash Account", a "Share Account" and a "Mutual Fund
Account". A Participant shall have separate accounts for Year Deferred Amounts
with different deferral periods under Section 4.2 and/or manners of payment
under Section 4.3.

          (i) If a Participant has elected pursuant to Section 4.1(d) to have
     any portion of the Participant's Year Deferred Amounts credited to the
     Participant's Cash Account, then the Participant's Cash Account shall be
     credited with the dollar amount of any amount deferred and to be credited
     to the Participant's Cash Account as of the date the amount deferred
     otherwise would have become due and payable.

          (ii) If a Participant has elected pursuant to Section 4.1(d) to have
     any portion of the Participant's Year Deferred Amounts credited to the
     Participant's Share Account, then the dollar amount deferred and to be
     credited to the Participant's Share Account shall be converted into
     deferred shares of Common Stock to be credited to the Participant's Share
     Account as of the date the amount deferred otherwise would have become due
     and payable. In such event, there shall be credited to the Participant's
     Share Account as of such date a number of units ("Share Units") equal to
     the dollar amount of any amount deferred divided by the Fair Market Value
     as of the payroll date.

          (iii) If a Participant has elected pursuant to Section 4.1(d) to have
     any portion of the Participant's Year Deferred Amounts credited to the
     Participant's Mutual Fund Account, then based on the dollar amount deferred
     shares (including fractional shares) of the appropriate Reference Fund(s)
     shall be credited to the Participant's Mutual Fund Account ("Mutual Fund
     Shares"), with the number of Mutual Fund Shares to be credited determined
     in accordance with administrative procedures and regulations that the

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     Committee establishes from time to time. A Participant's Mutual Fund
     Account may consist of any one or more of the Reference Funds, in such
     proportion as the Participant has elected pursuant to 4.1(d) in connection
     with the first deferral election made respecting a given Year, and this
     proportion may not be modified, except as permitted by the Committee.

     (b) Matching Credits Accounts. The Corporation shall establish and maintain
an individual bookkeeping account in respect of matching credits by the
Corporation for the benefit of an eligible Participant to be known as a
"Matching Account". A Participant's Matching Account shall be credited with a
number of Share Units equal to the dollar amount of matching credits under
Section 5 for the Participant's benefit divided by the Fair Market Value on the
date the Corporation credits the matching credits.

     6.2 Growth Increments on Cash Accounts. The Corporation will provide the
opportunity for Growth Increments to be earned on the balance of a Participant's
Cash Accounts. The Committee will have the authority to select, from time to
time, the appropriate interest rate to apply to such amounts. Each Cash Account
shall be credited on the first day of each month with a Growth Increment
computed on the daily balance in the Cash Account during the immediately
preceding month. The Growth Increment shall be the sum of the daily interest
earned, compounded monthly by the interest rate selected by the Committee.

     6.3 Changing Accounts.

     (a) Subject to applicable corporate policies and Section 6.3(g), from time
to time a Participant may convert all or a portion of any Cash Account balance
of the Participant into deferred shares of Common Stock credited to the
Participant's corresponding Share Account by written notice to the Corporation.
In such event, and effective as of the close of business on the trading day on
the date that the Corporation receives such notice, if the notice is received
before the close of trading on that day, otherwise as of the close of business
on the immediately succeeding trading day (the "Effective Date"), (i) there
shall be credited to the Participant's Share Account a number of Share Units
equal to the number of Share Units specified in the notice or, if such notice
specifies a dollar amount, a number of Share Units equal to such dollar amount
divided by the Fair Market Value as of the Effective Date; and (ii) the
Participant's Cash Account shall be debited in an amount equal to the number of
Share Units credited to the Share Account multiplied by the Fair Market Value as
of the Effective Date.

     (b) Subject to applicable corporate policies, from time to time a
Participant may convert all or a portion of any Cash Account balance of the
Participant into an amount to be credited to the Participant's corresponding
Mutual Fund Account by giving written notice to the Corporation, which notice
shall specify the dollar amount to be credited to each of the Reference Funds.
In such event, and effective as of the Effective Date, (i) there shall be
credited to the Participant's Mutual Fund Account Mutual Fund Shares for the
applicable Reference Funds equal to the dollar amount being converted divided by
the net asset value of the applicable Mutual Fund Shares as of the close of
trading on the Effective Date ("Effective Date Fund Shares Value"); and (ii) the
Participant's Cash Account shall be debited in an amount equal to the dollar
amount being converted.

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     (c) Subject to applicable corporate policies and Section 6.3(g), from time
to time a Participant with a credit balance in a Mutual Fund Account may convert
all or a portion of any Mutual Fund Shares credited to the Participant's
corresponding Mutual Fund Account into deferred shares of Common Stock credited
to the Participant's corresponding Share Account by written notice to the
Corporation, which notice shall specify the number of Mutual Fund Shares to be
converted and the Reference Fund(s) to which such Mutual Fund Shares correspond
or a dollar amount and the Reference Fund(s) to which such dollar amount
corresponds. In such event, and effective as of the Effective Date, (i) there
shall be credited to the Participant's Share Account a number of Share Units
equal to (A) the Effective Date Fund Shares Value of the Mutual Fund Shares
specified in the notice divided by the Fair Market Value as of the Effective
Date or (B) the dollar amount specified in the notice divided by the Fair Market
Value as of the Effective Date; and (ii) the Participant's Mutual Fund Account
shall be debited by the number of Mutual Fund Shares specified in the notice or,
as the case may be, by the number of Mutual Fund Shares having an Effective Date
Fund Shares Value equal to the dollar amount specified in the notice.

     (d) Subject to applicable corporate policies, from time to time a
Participant with a credit balance in a Mutual Fund Account may convert all or a
portion of any Mutual Fund Shares credited to the Participant's corresponding
Mutual Fund Account into an amount to be credited to the Participant's
corresponding Cash Account by giving written notice to the Corporation, which
notice shall specify the number of Mutual Fund Shares to be converted and the
Reference Fund(s) to which such Mutual Fund Shares correspond or a dollar amount
and the Reference Fund(s) to which such dollar amount corresponds. In such
event, and effective as of the Effective Date, (i) there shall be credited to
the Participant's Cash Account an amount equal to (A) the Effective Date Fund
Shares Value of the Mutual Fund Shares specified in the notice or (B) the dollar
amount specified in the notice; and (ii) the Participant's Mutual Fund Account
shall be debited by the number of Mutual Fund Shares specified in the notice or,
as the case may be, by the number of Mutual Fund Shares having a Effective Date
Fund Shares Value equal to the dollar amount specified in the notice.

     (e) Subject to applicable corporate policies and Section 6.3(g), from time
to time a Participant with a credit balance in a Share Account may convert all
or a portion of such balance into an amount to be credited to the Participant's
corresponding Cash Account by giving written notice to the Corporation, which
notice shall specify the number of Share Units to be converted or a dollar
amount. In such event, and effective as of the Effective Date, (i) there shall
be credited to the Participant's Cash Account an amount equal to (A) the number
of Share Units specified in the notice multiplied by the Fair Market Value as of
the Effective Date or (B) the dollar amount specified in the notice; and (ii)
the Participant's Share Account shall be debited by the number of Share Units
specified in the notice, or, as the case may be, by the number of Share Units
having a Fair Market Value as of the Effective Date equal to the dollar amount
specified in the notice.

     (f) Subject to applicable corporate policies and Section 6.3(g), from time
to time a Participant with a credit balance in a Share Account may convert all
or a portion of such balance into an amount to be credited to the Participant's
corresponding Mutual Fund Account by giving written notice to the Corporation,
which notice shall specify the number of Share Units to be converted or a dollar
amount and the Share Units or dollar amounts to be credited to each

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of the Reference Funds. In such event, and effective as of the Effective Date,
(i) there shall be credited to the Participant's Mutual Fund Account a number of
Mutual Fund Shares for the applicable Reference Funds equal to (A) the Fair
Market Value of the Share Units as of the Effective Date divided by the
Effective Date Fund Shares Value or (B) the dollar amount specified in the
notice divided by the Effective Date Fund Shares Value; and (ii) the
Participant's Share Account shall be debited by the number of Share Units
specified in the notice, or, as the case may be, by the number of Share Units
having a Fair Market Value as of the Effective Date equal to the dollar amount
specified in the notice.

     (g) A Participant who is subject to Section 16 of the Securities Exchange
Act of 1934, as amended, may make transfers of existing balances pursuant to
Sections 6.3(a), (c), (e) or (f) if the transfer is effected pursuant to an
election made at least six (6) months after the date of the Participant's most
recent opposite-way election making a transfer of existing balances pursuant to
Sections 6.3(a), (c), (e) or (f) or existing account balances out of or into a
Common Stock fund under any other Corporation plan, or more frequently as
permitted by the Committee.

     6.4 Cash Dividends. Whenever cash dividends are paid by the Corporation on
outstanding Common Stock, as of the payment date for the dividend, there shall
be credited between a Participant's Share Account and Matching Account (if any,
and then only to the extent then maintained in Share Units), as appropriate,
additional Share Units equal to the amount per share of the cash dividend on the
Common Stock multiplied by the number of Share Units credited to the
Participant's Share Account, if any, and Matching Account (if any, and then only
to the extent then maintained in Share Units) as of the close of business on the
record date for the dividend divided by the Fair Market Value of the Common
Stock on the date of payment of the dividend.

     6.5 Deferral of Other Compensation. Subject to the authority of the
Committee, the Corporation's Chief Executive Officer may approve the terms of
any agreements between the Corporation and any Participant relating to the
deferral of Other Compensation where, but for the Participant's deferral, the
Participant would have received shares of Common Stock if such officer
determines that such terms are appropriate to carry out the purposes of this
Plan and the award of Other Compensation. Without limitation, the Corporation
may enter into an agreement with a Participant relating to such a deferral under
which (i)(A) there shall be credited to the Participant's Share Account a number
of Share Units equal to the number of shares of Common Stock the receipt of
which the Participant has deferred which credit shall be made as of the date the
Other Compensation deferred otherwise would have become due and payable or (B)
Share Units shall be credited to the Participant's Share Account only at a
future date, such as the date that one or more conditions to vesting have been
satisfied; (ii) a credit of Share Units may be made subject to such restrictions
as are imposed under the terms of the award of Other Compensation (or
restrictions substantially equivalent to those to which shares of Common Stock
would have been subject but for the deferral), including without limitation
forfeiture under certain circumstances and restrictions on the Participant's
rights to convert such Share Units pursuant to this Section 6.5; and (iii) if
the terms of the award of Other Compensation require a Participant to deliver
cash and/or shares of Common Stock to the Corporation to exercise or otherwise
receive the benefit of such Other Compensation, then in lieu of delivering such
cash and/or Common Stock, there may be a debit to the Participant's Cash Account
in an amount equal to the amount of cash that the Participant otherwise would
have delivered and/or a debit to

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the Participant's Share Account in an amount equal to the number of shares of
Common Stock that the Participant otherwise would have delivered, in each case
to the extent of any credit balance in such account.

     6.6 Earnings Adjustments to Matching Accounts.

     (a) Except as provided in Section 6.6(b), a Participant's Matching Account
will be adjusted (in the manner provided in Section 6.6(c)) at the end of each
Year in an amount which is equal to the net increase (or net decrease as
appropriate) in Fair Market Value for the same Year.

     (b) Diversification Election. Unless elected by a Participant to the
contrary under and subject to this Section 6.6(b), annual earnings adjustments
to the Participant's Matching Account shall be determined with reference to Fair
Market Value pursuant to Section 6.6(a). A Participant may elect to have the
annual earnings adjustments to the Participant's Matching Account be determined
with reference to a measure other than Fair Market Value, including the Cash
Account, the Mutual Fund Account and any other alternative earnings measure that
the Committee approves. Once an election is made under this Section 6.6(b), the
Participant's Matching Account balance shall be converted out of Share Units
(using Fair Market Value on the date the election is effective) and shall not be
maintained in Share Units again.

     For purposes of this Section 6.6(b), a change to the measure used to
determine adjustments to a Matching Account of a Participant shall be made at
the election of the Participant, but only at the same times, under the same
conditions and subject to the same limitations as are allowed or imposed under
the Snap-on 401(k) Plan for diversifying the Corporation's matching contribution
under such plan out of shares of Common Stock to other permissible investments
available under the Snap-on 401(k) Plan. The election provided in this Section
6.6(b) shall be made in writing as directed by the Committee. Earnings
adjustments to Matching Accounts after the effective date of an election under
this Section 6.6(b) shall be calculated for the Participant's Matching Account
with reference to the Participant's duly elected alternative earnings measure.

     (c) An eligible Participant's Matching Account shall be credited, or
debited, as appropriate, at the end of each Year with (i) a number of Share
Units equal to the dollar amount of adjustments determined under Section 6.6(a)
divided by the Fair Market Value on the date the Corporation credits such
adjustments to the Participant's Matching Account, or (ii) an earnings
adjustment calculated as provided in Section 6.6(b) if a qualified election has
been made under Section 6.6(b).

     6.7 Charges Against Accounts. There shall be charged against a
Participant's Cash Account any cash payments (excluding payments for fractional
shares) made to the Participant or to his beneficiary in accordance with Section
7. There shall be charged against a Participant's Share Account any
distributions made to the Participant or to his beneficiary in respect of the
Participant's Share Account in accordance with Section 7. There shall be charged
against a Participant's Mutual Fund Account any distributions made to the
Participant or to his beneficiary in respect of the Participant's Mutual Fund
Account in accordance with Section 7. There shall be charged against a
Participant's Matching Account any distributions made to the

                                       11
<PAGE>

Participant or to his beneficiary in respect of the Participant's Matching
Account in accordance with Section 7.

     6.8 Terminated Reference Fund. In the event a Reference Fund shall for any
reason no longer be available or otherwise appropriate for use under the Plan,
including but not limited to considerations of administrative feasibility, the
Committee shall determine the aggregate net asset value of the Mutual Fund
Shares of the affected Reference Fund in a Participant's Mutual Fund Account.
Based on the aggregate net asset value of the Mutual Fund Shares of the affected
Reference Fund in the Participant's Mutual Fund Account, the Participant shall
redesignate all such amounts to another Reference Fund(s), or to the
Participant's Cash Account, to be credited to the Participant's Cash Account in
accordance with Section 6.1(a).

              Section 7. Payment of Deferred and Matching Amounts

     7.1 Payment of Deferred and Matching Amounts.

     (a) Payment of a Participant's Cash Account balance, including accumulated
Growth Increments attributable thereto and dividend credits under Section 6.4,
shall be paid in cash commencing within thirty (30) calendar days after the
commencement date referred to in Section 4.2 (as may be modified pursuant to
Section 4.4). The payments shall be made in the manner selected by the
Participant under Section 4.3 or, in the absence thereof, in a lump sum. The
amount of each payment shall be equal to a Participant's then distributable Cash
Account balance multiplied by a fraction, the numerator of which is one and the
denominator of which is the number of installment payments remaining.

     (b) Payment of a Participant's Share Account balance shall be paid
commencing within thirty (30) calendar days after the commencement date referred
to in Section 4.2 (as may be modified pursuant to Section 4.4). Payments in
respect of a Share Account balance shall be made in cash in an amount equal to
the number of Share Units then payable multiplied by the Fair Market Value on
the date of payment; provided, however, that at the election of a Participant,
made by written notice to the Corporation delivered not less than five business
days before a payment due date, payments in respect of a Share Account may be
made solely in Common Stock by converting Share Units into Common Stock on a
one-for-one basis, with payment of fractional shares to be made in cash based
upon the Fair Market Value on the date of payment. The payments shall be made in
the manner selected by the Participant under Section 4.3 or, in the absence
thereof, in a lump sum. The number of Share Units payable at the time of a
payment shall be equal to a Participant's then distributable Share Account
balance multiplied by a fraction, the numerator of which is one and the
denominator of which is the number of installment payments remaining.

     (c) Payment of a Participant's Mutual Fund Account balance shall be paid
commencing within thirty (30) calendar days after the commencement date referred
to in Section 4.2 (as may be modified pursuant to Section 4.4). Payments in
respect of a Mutual Fund Account shall be made in cash as set forth below. The
payments shall be made in the manner selected by the Participant under Section
4.3 or, in the absence thereof, in a lump sum. The amount of cash payable shall
be equal to the aggregate net asset value of the Mutual Fund Shares credited to
the Participant's Mutual Fund Account as of the payment date multiplied by a

                                       12
<PAGE>

fraction, the numerator of which is one and the denominator of which is the
number of installment payments remaining.

     (d) Payment of a Participant's Matching Account balance shall be paid
commencing within thirty (30) calendar days after the commencement date referred
to in Section 5.3 (as may be modified pursuant to Section 5.5). Payments in
respect of a Matching Account balance maintained in Share Units at the time
shall be made in cash in an amount equal to the number of Share Units then
payable multiplied by the Fair Market Value on the date of payment; provided,
however, that at the election of a Participant, made by written notice to the
Corporation delivered not less than five (5) business days before a payment due
date, payments in respect of a Matching Account maintained in Share Units at the
time may be made solely in Common Stock by converting Share Units into Common
Stock on a one-for-one basis, with payment of fractional shares to be made in
cash based upon the Fair Market Value on the date of payment. Payments of a
Participant's Matching Account balance that is no longer maintained in Share
Units shall be in cash in an amount equal to the Matching Account balance plus
accumulated adjustments under Sections 6.6(b) and 6.6(c) and dividend credits
under Section 6.4. The payments shall be made in the manner selected by the
Participant under Section 5.4 or, in the absence thereof, in a lump sum. The
number of Share Units payable at the time of a payment shall be equal to a
Participant's then distributable Matching Account balance maintained in Share
Units multiplied by a fraction, the numerator of which is one and the
denominator of which is the number of installment payments remaining.

     7.2 Acceleration of Payments. If a Participant dies prior to the payment of
all or a portion of his Cash Account, Share Account, Mutual Fund Account and/or
Matching Account balances, the balance of any amounts payable shall be paid in a
lump sum to the beneficiaries designated under Section 8.

     7.3 Financial Emergency. The Committee, in its sole discretion, may alter
the timing or manner of payment of Year Deferred Amounts and/or matching amounts
in the event that the Participant establishes, to the satisfaction of the
Committee, severe financial hardship. In such event, the Committee may:

     (a) provide that all, or a portion of, the amount previously deferred by
the Participant immediately shall be paid in a lump sum payment,

     (b) provide that all, or a portion of, the installments payable over a
period of time immediately shall be paid in a lump sum, or

     (c) provide for such other installment payment schedules as it deems
appropriate under the circumstances, as long as the amount distributed shall not
be in excess of that amount which is necessary for the Participant to meet the
financial hardship.

     Severe financial hardship will be deemed to have occurred in the event of
the Participant's impending bankruptcy, a dependent's long and serious illness,
or other events of similar magnitude. The Committee's decision in passing on the
severe financial hardship of the Participant and the manner in which, if at all,
the payment of Year Deferred Amounts or matching credits shall be altered or
modified shall be final, conclusive, and not subject to appeal.

                                       13
<PAGE>

                       Section 8. Beneficiary Designation

     8.1 Designation of Beneficiary. A Participant shall designate a beneficiary
or beneficiaries who, upon the Participant's death, are to receive the amounts
that otherwise would have been paid to the Participant. All designations shall
be in writing to the Corporation in such form as it requires or accepts and
signed by the Participant. The designation shall be effective only if and when
delivered to the Corporation during the lifetime of the Participant. The
Participant also may change his beneficiary or beneficiaries by a signed,
written instrument delivered to the Corporation. If a Participant is married and
names someone other than (or in addition to) the Participant's spouse as a
beneficiary, then the Participant's spouse must provide a written consent to
this beneficiary designation that has been witnessed by a notary public. The
payment of amounts shall be in accordance with the last unrevoked written
designation of beneficiary that has been signed and delivered to the
Corporation.

     8.2 Death of Beneficiary. In the event that all of the beneficiaries named
in Section 8.1 predecease the Participant, the amounts that otherwise would have
been paid to the Participant shall be paid to the Participant's estate, and in
such event, the term "beneficiary" shall include his estate.

     8.3 Ineffective Designation. In the event the Participant does not
designate a beneficiary, or if for any reason such designation is ineffective,
in whole or in part, the amounts that otherwise would have been paid to the
Participant shall be paid to the Participant's estate, and in such event, the
term "beneficiary" shall include his estate.

                       Section 9. Rights of Participants

     9.1 Contractual Obligation. It is intended that the Corporation is under a
contractual obligation to make payments from a Participant's account when due.
Payment of account balances payable in cash shall be made out of the general
funds of the Corporation as determined by the Board.

     9.2 Unsecured Interest. No Participant or beneficiary shall have any
interest whatsoever in any specific asset of the Corporation. To the extent that
any person acquires a right to receive payments under this Plan, such receipt
shall be no greater than the right of any unsecured general creditor of the
Corporation.

     9.3 Employment. Nothing in the Plan shall interfere with or limit in any
way the rights of the Corporation to terminate any Participant's employment at
any time, nor confer upon any Participant any right to continue in the employ of
the Corporation.

     9.4 Participation. No employee shall have a right to be selected as a
Participant or, having been so selected, to be selected again as a Participant.

                         Section 10. Nontransferability

     10.1 Nontransferability. In no event shall the Corporation make any payment
under this Plan to any assignee or creditor of a Participant or a beneficiary.
Prior to the time of a payment hereunder, a Participant or a beneficiary shall
have no rights by way of anticipation or

                                       14
<PAGE>

otherwise to assign or otherwise dispose of any interest under this Plan nor
shall such rights be assigned or transferred by operation of law.

                           Section 11. Administration

     11.1 Administration. This Plan shall be administered by the Committee. The
Committee may from time to time establish rules for the administration of this
Plan that are not inconsistent with the provisions of this Plan.

     11.2 Finality of Determination. The Committee has sole discretion in
interpreting the provisions of the Plan. The determination of the Committee as
to any disputed questions arising under this Plan, including questions of
construction and interpretation, shall be final, binding, and conclusive upon
all persons.

     11.3 Expenses. The cost of payments from this Plan and the expenses of
administering the Plan shall be borne by the Corporation.

     11.4 Action by the Corporation. Any action required or permitted to be
taken under this Plan by the Corporation shall be by resolution of the Board, by
the duly authorized Committee of the Board, or by a person or persons authorized
by resolution of the Board or the Committee.

                     Section 12. Amendment and Termination

     12.1 Amendment and Termination. The Corporation expects the Plan to be
permanent but, since future conditions affecting the Corporation cannot be
anticipated or foreseen, the Corporation necessarily must and does hereby
reserve the right to amend, modify, or terminate the Plan at any time by action
of the Board. Notwithstanding the foregoing, upon the occurrence of a Potential
Change of Control (as hereinafter defined) and for a period of six (6) months
thereafter, the Plan may not be terminated or amended in a manner adverse to
Participants. For purposes of this Section, a "Potential Change of Control"
shall be deemed to have occurred if an event set forth in any one of the
following shall have occurred:

          (i) The Corporation enters into an agreement, the consummation of
     which would result in the occurrence of a Change of Control;

          (ii) The Corporation or any other Person publicly announces an
     intention to take or consider taking actions that, if consummated, would
     constitute a Change of Control;

          (iii) Any Person becomes the Beneficial Owner, directly or indirectly,
     of securities of the Corporation representing fifteen percent (15%) or more
     of either the then outstanding shares of Common Stock or the combined
     voting power of the Corporation's then outstanding voting securities; or

          (iv) The Board adopts a resolution to the effect that, for purposes of
     this Plan, a Potential Change of Control has occurred.

                                       15
<PAGE>

     Each of "Change of Control," "Person" and "Beneficial Owner" shall have the
meaning set forth in Section 17.1.

                           Section 13. Applicable Law

     13.1 Applicable Law. This Plan shall be governed and construed in
accordance with the laws of the State of Wisconsin.

                        Section 14. Withholding of Taxes

     14.1 Tax Withholding. The Corporation shall have the right to deduct from
all contributions made to, or payments made from, the Plan any federal, state,
or local taxes required by law to be withheld with respect to such contributions
or payments. The Corporation may defer making payments in the form of Common
Stock under the Plan until satisfactory arrangements have been made for the
payment of any federal, state or local taxes required to be withheld with
respect to such payment or delivery. Each Participant shall be entitled to
irrevocably elect, prior to the date shares of Common Stock would otherwise be
delivered hereunder, to have the Corporation withhold shares of Common Stock
having an aggregate value equal to the amount required to be withheld. The value
of fractional shares remaining after payment of the withholding taxes shall be
paid to the Participant in cash. Shares so withheld shall be valued at Fair
Market Value on the date such shares would have otherwise been transferred
hereunder.

                               Section 15. Notice

     15.1 Notice. Any notice required or permitted to be given under the Plan
shall be sufficient if in writing and hand-delivered, or sent by a registered or
certified mail, and if given to the Corporation, delivered to the principal
office of the Corporation. Such notice shall be deemed given as of the date of
delivery or, if delivery is made by mail, as of the date shown on the postmark
or the receipt for registration or certification.

                        Section 16. Common Stock Matters

     16.1 Stock Reserved for the Plan. The Corporation shall make available as
and when required a sufficient number of shares of Common Stock to meet the
needs of the Plan. Shares of Common Stock issued hereunder shall be previously
issued shares reacquired and held by the Corporation.

     16.2 General Restrictions.

     (a) Investment Representations. The Corporation may require any
Participant, as a condition of receiving Common Stock under this Plan, to give
written assurances in substance and form satisfactory to the Corporation and its
counsel to the effect that such person is acquiring the Common Stock for his own
account for investment and not with any present intention of selling or
otherwise distributing the same, and to such other effects as the Corporation
deems necessary or appropriate in order to comply with federal and applicable
state securities laws.

                                       16
<PAGE>

     (b) Compliance with Securities Laws. Delivery of Common Stock under the
Plan shall be subject to the requirement that, if at any time counsel to the
Corporation shall determine that the listing, registration or qualification of
the shares of Common Stock upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental or regulatory body,
is necessary as a condition of, or in connection with, the issuance of shares
thereunder, such shares may not be delivered in whole or in part unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained on conditions acceptable to the Committee. Nothing herein
shall be deemed to require the Corporation to apply for or to obtain such
listing, registration or qualification.

     16.3 Effect of Certain Changes in Capitalization. In the event of any
Change in Capitalization, a proportionate substitution or adjustment may be made
in (a) the aggregate number and/or kind of shares or other property reserved for
issuance under the Plan, (b) the number and kind of shares or other property to
be delivered under the Plan and (c) the number and kind of shares or other
property held in each Participant's Share Account and Matching Account (if any),
in each case as may be determined by the Committee in its sole discretion. Such
other proportionate substitutions or adjustments may be made as shall be
determined by the Committee in its sole discretion. "Change in Capitalization"
means any increase, reduction, change or exchange of shares of Common Stock for
a different number or kind of shares or other securities or property by reason
of a reclassification, recapitalization, merger, consolidation, reorganization,
issuance of warrants or rights, stock dividend, stock split or reverse stock
split, combination or exchange of shares, repurchase of shares, change in
corporate structure or otherwise; or any other corporate action, such as
declaration of a special dividend, that affects the capitalization of the
Corporation.

                         Section 17. Change of Control

     17.1 Change of Control. For purposes of this Plan, a "Change of Control"
shall be deemed to have occurred on the first to occur of any one of the events
set forth in the following paragraphs:

     (a) any Person is or becomes the Beneficial Owner, directly or indirectly,
of securities of the Corporation (not including in the securities Beneficially
Owned by such Person any securities acquired directly from the Corporation or
its Affiliates) representing 25% or more of either the then outstanding shares
of Common Stock or the combined voting power of the Corporation's then
outstanding voting securities, excluding any Person who becomes such a
Beneficial Owner in connection with a transaction described in clause (i) of
paragraph (c) below; or

     (b) the following individuals cease for any reason to constitute a majority
of the number of directors then serving: individuals who, on January 25, 2002,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Corporation as such terms are used in Rule 14a-11
of Regulation 14A under the Exchange Act) whose appointment or election by the
Board or nomination for election by the Corporation's stockholders was approved
or recommended by a vote of at least two-thirds (2/3) of the directors then
still in office who either were directors on

                                       17
<PAGE>

January 25, 2002 or whose appointment, election or nomination for election was
previously so approved or recommended; or

     (c) there is consummated a merger or consolidation of the Corporation or
any direct or indirect subsidiary of the Corporation with any other corporation,
other than (i) a merger or consolidation which would result in the voting
securities of the Corporation outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or any parent
thereof) at least 60% of the combined voting power of the voting securities of
the Corporation or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation, or (ii) a merger or
consolidation effected to implement a recapitalization of the Corporation (or
similar transaction) in which no Person is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Corporation (not including in the
securities Beneficially Owned by such Person any securities acquired directly
from the Corporation or its Affiliates) representing 25% or more of either the
then outstanding shares of Common Stock or the combined voting power of the
Corporation's then outstanding voting securities; or

     (d) the stockholders of the Corporation approve a plan of complete
liquidation or dissolution of the Corporation or there is consummated an
agreement for the sale or disposition by the Corporation of all or substantially
all of the Corporation's assets (in one transaction or a series of related
transactions within any period of 24 consecutive months), other than a sale or
disposition by the Corporation of all or substantially all of the Corporation's
assets to an entity, at least 75% of the combined voting power of the voting
securities of which are owned by stockholders of the Corporation in
substantially the same proportions as their ownership of the Corporation
immediately prior to such sale.

     Notwithstanding the foregoing, no "Change of Control" shall be deemed to
have occurred if there is consummated any transaction or series of integrated
transactions immediately following which the record holders of the Common Stock
immediately prior to such transaction or series of transactions continue to have
substantially the same proportionate ownership in an entity which owns all or
substantially all of the assets of the Corporation immediately following such
transaction or series of transactions.

     For purposes of the definitions of Change of Control and Potential Change
of Control, "Affiliate" shall have the meaning set forth in Rule 12b-2
promulgated under Section 12 of the Exchange Act; "Beneficial Owner" shall have
the meaning set forth in Rule 13d-3 under the Exchange Act; "Exchange Act" shall
mean the Securities Exchange Act of 1934, as amended; and "Person" shall have
the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used
in Sections 13(d) and 14(d) thereof, except that such term shall not include (i)
the Corporation or any of its subsidiaries, (ii) a trustee or other fiduciary
holding securities under an employee benefit plan of the Corporation or any of
its Affiliates, (iii) an underwriter temporarily holding securities pursuant to
an offering of such securities, (iv) a corporation owned, directly or
indirectly, by the shareholders of the Corporation in substantially the same
proportions as their ownership of stock of the Corporation or (v) any
individual, entity or group which is permitted to, and actually does, report its
Beneficial Ownership on Schedule 13G (or any successor schedule); provided that
if any such individual, entity or group subsequently becomes required to or does
report its Beneficial Ownership on Schedule 13D (or any successor

                                       18
<PAGE>

schedule), such individual, entity or group shall be deemed to be a Person for
purposes hereof on the first date on which such individual, entity or group
becomes required to or does so report Beneficial Ownership of all of the voting
securities of the Corporation Beneficially Owned by it on such date.

     17.2 Payments. Upon the occurrence of a Change of Control, and
notwithstanding Section 7,

     (a) payment of a Participant's Cash Account balance and Matching Account
balance (if any, and then only to the extent not then maintained in Share Units)
shall be made immediately in cash in a lump sum; and

     (b) payment of a Participant's Mutual Fund Account balance shall be made
immediately in cash in a lump sum in an amount equal to the aggregate net asset
value of the Mutual Fund Shares credited to the Participant's Mutual Fund
Account as of the date of the Change of Control; and

     (c) all Share Units credited to a Participant's Share Account and Matching
Account (if any) shall be converted into an amount equal to the number of Share
Units multiplied by the Fair Market Value, which amount shall be (i) paid as
soon as possible to such Participant and (ii) denominated in (A) such form of
consideration as the Participant would have received had the Participant been
the owner of record of such shares of Common Stock at the time of such Change of
Control, in the case of a "Change of Control With Consideration" or (B) cash, in
the case of a "Change of Control Without Consideration". For purposes of this
Section 17.2(b), (I) "Change of Control With Consideration" shall mean a Change
of Control in which shares of Common Stock are exchanged or surrendered for
shares, cash or other property and (II) "Change of Control Without
Consideration" shall mean a Change of Control pursuant to which shares of Common
Stock are not exchanged or surrendered for shares, cash or other property.

                            Section 18. Rating Event

     18.1 Rating Event. The term "Rating Event" means the date on which the
Corporation's debt rating drops below an Investment Grade Rating. "Investment
Grade Rating" means a rating at or above Baa3 by Moody's Investors Services,
Inc. (or its successors) or a rating at or above BBB by Standard & Poor's
Corporation (or its successors). Only one such rating at the required level is
necessary for the Corporation to have an Investment Grade Rating for purposes of
this Section. If either or both of these ratings cease to be available then an
equivalent rating from a nationally prominent rating agency shall be substituted
by the Corporation.

     18.2 Payment. Upon the occurrence of a Rating Event, and notwithstanding
Section 7:

     (a) a Participant's Cash Account balance and Matching Account balance (if
any, and then only to the extent not then maintained in Share Units) shall be
paid immediately in cash in a lump sum; and

                                       19
<PAGE>

     (b) payment of a Participant's Mutual Fund Account balance shall be made
immediately in cash in a lump sum in an amount equal to the aggregate net asset
value of the Mutual Fund Shares credited to the Participant's Mutual Fund
Account as of the payment date; and

     (c) payments in respect of a Share Account balance shall be made
immediately in cash in an amount equal to the number of Share Units then payable
multiplied by the Fair Market Value on the date of payment; provided, however,
that at the election of a Participant, made by written notice to the Corporation
prior to delivery of such cash, payments in respect of a Share Account may be
made solely in Common Stock by converting Share Units into Common Stock on a
one-for-one basis, with payment of fractional shares to be made in cash based
upon the Fair Market Value the date of payment; and

     (d) payments in respect of a Matching Account balance (if any, and then
only to the extent then maintained in Share Units) shall be made immediately in
cash in an amount equal to the number of Share Units then payable multiplied by
the Fair Market Value on the date of payment; provided, however, that at the
election of a Participant, made by written notice to the Corporation prior to
delivery of such cash, payments in respect of a Share Account may be made solely
in Common Stock by converting Share Units into Common Stock on a one-for-one
basis, with payment of fractional shares to be made in cash based upon the Fair
Market Value on the date of payment; and

     (e) In addition to payment of the Participant's Cash Account balance as
described above, the Corporation shall pay the Participant an amount equal to
the interest that would have been earned on the Accelerated Tax Amount from the
date of the Rating Event to the date payment of Year Deferred Amounts was then
scheduled to commence, calculated at the interest rate determined under Section
6.2, compounded monthly, which interest amount shall then be discounted to the
date of payment at a discount rate equal to the rate determined under Section
6.2. The "Accelerated Tax Amount" means the Participant's Cash Account balance
multiplied by the Assumed Tax Rate. The "Assumed Tax Rate" means a percentage
which reflects the highest stated federal and state income tax rates imposed on
residents of Wisconsin after giving effect to the deductibility of state income
taxes.

     18.3 Revocation of Election. Upon the occurrence of a Rating Event, all
deferral elections made prior thereto are revoked.

                                       20EXHIBIT 10.2

                  AMENDED AND RESTATED 364-DAY CREDIT AGREEMENT

                           Dated as of August 1, 2003

     SNAP-ON INCORPORATED, a Delaware corporation (the "Borrower"), the banks,
financial institutions and other institutional lenders (the "Initial Lenders")
listed on the signature pages hereof, CITIGROUP GLOBAL MARKETS INC., as lead
arranger and book manager, BANC ONE CAPITAL MARKETS INC., as co-arranger,
CITIBANK, N.A. ("Citibank"), as administrative agent (the "Agent") for the
Lenders (as hereinafter defined) and BANK ONE, NA, as syndication agent, agree
as follows:

                             PRELIMINARY STATEMENTS

     (1) The Borrower is party to an Amended and Restated 364-Day Credit
Agreement dated as of August 9, 2002, which amended and restated the Amended and
Restated 364-Day Credit Agreement dated as of August 20, 2001, which amended and
restated the Amended and Restated 364-Day Credit Agreement dated as of August
21, 2000, which in turn amended and restated the 364-Day Credit Agreement dated
as of August 23, 1999 (as amended, supplemented or otherwise modified from time
to time to (but not including) the date of this Amendment and Restatement, the
"Existing Credit Agreement") with the banks, financial institutions and other
institutional lenders party thereto and Citibank, N.A., as Agent for the
Lenders, Salomon Smith Barney Inc., as Lead Arranger and Book Manager, Banc One
Capital Markets Inc., as Co-Arranger, and Bank One, NA, as Syndication Agent.

     (2) The Borrower has requested that the Lenders agree to extend credit to
it from time to time in an aggregate principal amount of U.S. $200,000,000 for
general corporate purposes of the Borrower and its Subsidiaries not otherwise
prohibited under the terms of this Agreement. The Lenders have indicated their
willingness to agree to extend credit to the Borrower from time to time in such
amount on the terms and conditions set forth below.

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.01. Certain Defined Terms.
                   ---------------------

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

          "Advance" means a Revolving Credit Advance or a Competitive Bid
     Advance.

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

          "Agent's Account" means (a) in the case of Advances denominated in
     Dollars, the account of the Agent maintained by the Agent at Citibank at
     its office at 399 Park Avenue, New York, New York 10043, Account No.
     36852248, Attention: Bank Loan Syndications, (b) in the case of Advances
     denominated in any Foreign Currency, the account of the Sub-Agent
     designated in writing from time to time by the Agent to the Borrower and
     the Lenders for such purpose and (c) in any such case, such other account
     of the Agent as is designated in writing from time to time by the Agent to
     the Borrower and the Lenders for such purpose.
<PAGE>

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

          "Applicable Margin" means (a) for Base Rate Advances, 0% per annum and
     (b) for Eurocurrency Rate Advances, as of any date prior to the Term Loan
     Conversion Date, 0.195% per annum and, as of any date on and after the Term
     Loan Conversion Date, 0.55% per annum.

          "Applicable Percentage" means 0.055% per annum.

          "Applicable Utilization Fee" means, as of any date prior to the Term
     Loan Conversion Date that the aggregate principal amount of the Advances
     exceeds 25% of the aggregate Commitments, 0.10% per annum.

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

          "Assuming Lender" has the meaning specified in Section 2.18(c).

          "Assumption Agreement" has the meaning specified in Section 2.18(c).

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

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

               (b) the sum (adjusted to the nearest 1/4 of 1% or, if there is no
          nearest 1/4 of 1%, to the next higher 1/4 of 1%) of (i) 1/2 of 1% per
          annum, plus (ii) the rate obtained by dividing (A) the latest
          three-week moving average of secondary market morning offering rates
          in the United States for three-month certificates of deposit of major
          United States money market banks, such three-week moving average
          (adjusted to the basis of a year of 360 days) being determined weekly
          on each Monday (or, if such day is not a Business Day, on the next
          succeeding Business Day) for the three-week period ending on the
          previous Friday by Citibank on the basis of such rates reported by
          certificate of deposit dealers to and published by the Federal Reserve
          Bank of New York or, if such publication shall be suspended or
          terminated, on the basis of quotations for such rates received by
          Citibank from three New York certificate of deposit dealers of
          recognized standing selected by Citibank, by (B) a percentage equal to
          100% minus the average of the daily percentages specified during such
          three-week period by the Board of Governors of the Federal Reserve
          System (or any successor) for determining the maximum reserve
          requirement (including, but not limited to, any emergency,
          supplemental or other marginal reserve requirement) for Citibank with
          respect to liabilities consisting of or including (among other
          liabilities) three-month U.S. dollar non-personal time deposits in the
          United States, plus (iii) the average during such three-week period of
          the annual assessment rates estimated by Citibank for determining the
          then current annual assessment payable by Citibank to the Federal
          Deposit Insurance Corporation (or any successor) for insuring U.S.
          dollar deposits of Citibank in the United States; and

               (c) 1/2 of one percent per annum above the Federal Funds Rate.

                                       2
<PAGE>

          "Base Rate Advance" means a Revolving Credit Advance denominated in
     Dollars that bears interest as provided in Section 2.07(a)(i).

          "Borrowing" means a Revolving Credit Borrowing or a Competitive Bid
     Borrowing.

          "Business Day" means a day of the year on which banks are not required
     or authorized by law to close in New York City and, if the applicable
     Business Day relates to any Eurocurrency Rate Advances or LIBO Rate
     Advances, on which dealings are carried on in the London interbank market
     and banks are open for business in London and in the country of issue of
     the currency of such Eurocurrency Rate Advance or LIBO Rate Advance (or, in
     the case of an Advance denominated in the euro, in Frankfurt, Germany) and,
     if the applicable Business Day relates to any Local Rate Advances on which
     banks are open for business in the country of issue of the currency of such
     Local Rate Advance.

          "Commitment" means as to any Lender (a) the Dollar amount set forth
     opposite such Lender's name on Schedule I hereto, (b) if such Lender has
     become a Lender hereunder pursuant to an Assumption Agreement, the Dollar
     amount set forth in such Assumption Agreement or (c) if such Lender has
     entered into any Assignment and Acceptance, the Dollar amount set forth for
     such Lender in the Register maintained by the Agent pursuant to Section
     8.07(d), as such amount may be reduced pursuant to Section 2.05.

          "Committed Currencies" means lawful currency of the United Kingdom of
     Great Britain and Northern Ireland, lawful currency of The Swiss
     Federation, lawful currency of Canada, lawful currency of Australia, lawful
     currency of Japan, lawful currency of the European Economic and Monetary
     Union and any other currency that is freely convertible into Dollars and
     available to all Lenders.

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

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

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

          "Competitive Bid Reduction" has the meaning specified in Section 2.01.

          "Confidential Information" means information that the Borrower
     furnishes to the Agent or any Lender, but does not include any such
     information that is or becomes generally available to the public or that is
     or becomes available to the Agent or such Lender from a source other than
     the Borrower.

          "Consenting Lender" has the meaning specified in Section 2.18(b).

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

          "Convert", "Conversion" and "Converted" each refers to a conversion of
     Revolving Credit Advances of one Type into Revolving Credit Advances of the
     other Type pursuant to Section 2.08 or 2.09.

          "Debt" of any Person means, without duplication, (a) all indebtedness
     of such Person for borrowed money, (b) all obligations of such Person for
     the deferred purchase price of property or services (other than trade
     payables not overdue by more than 90 days incurred in the ordinary course
     of such Person's business), (c) all obligations of such Person evidenced by
     notes, bonds, debentures or other similar instruments, (d) all

                                       3
<PAGE>

     obligations of such Person created or arising under any conditional sale or
     other title retention agreement with respect to property acquired by such
     Person (even though the rights and remedies of the seller or lender under
     such agreement in the event of default are limited to repossession or sale
     of such property), (e) all obligations of such Person as lessee under
     leases that have been or should be, in accordance with GAAP, recorded as
     capital leases, (f) all obligations, contingent or otherwise, of such
     Person in respect of acceptances, letters of credit or similar extensions
     of credit, (g) all net obligations of such Person in respect of Hedge
     Agreements, (h) all Debt of others referred to in clauses (a) through (g)
     above or clause (i) below guaranteed directly or indirectly in any manner
     by such Person, or in effect guaranteed directly or indirectly by such
     Person through an agreement (1) to pay or purchase such Debt or to advance
     or supply funds for the payment or purchase of such Debt, (2) to purchase,
     sell or lease (as lessee or lessor) property, or to purchase or sell
     services, primarily for the purpose of enabling the debtor to make payment
     of such Debt or to assure the holder of such Debt against loss, (3) to
     supply funds to or in any other manner invest in the debtor (including any
     agreement to pay for property or services irrespective of whether such
     property is received or such services are rendered) or (4) otherwise to
     assure a creditor against loss, and (i) all Debt referred to in clauses (a)
     through (h) above secured by (or for which the holder of such Debt has an
     existing right, contingent or otherwise, to be secured by) any Lien on
     property (including, without limitation, accounts and contract rights)
     owned by such Person, even though such Person has not assumed or become
     liable for the payment of such Debt; provided, however, that the term
     "Debt" shall not include obligations incurred in connection with sales of
     accounts receivable or other asset securitization transactions by the
     Borrower or any Subsidiary or Affiliate of the Borrower, except to the
     extent that such transaction creates a liability which is required by
     generally accepted accounting principles to be included on the Consolidated
     balance sheet of the Borrower and its Subsidiaries.

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

          "Disclosed Litigation" has the meaning specified in Section 3.01(b).

          "Dollars" and the "$" sign each means lawful currency of the United
     States of America.

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

          "Effective Date" has the meaning specified in Section 3.01.

          "Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a Lender;
     and (iii) any other Person approved by the Agent and, unless an Event of
     Default has occurred and is continuing at the time any assignment is
     effected in accordance with Section 8.07, the Borrower, such approval not
     to be unreasonably withheld or delayed; provided, however, that neither the
     Borrower nor an Affiliate of the Borrower shall qualify as an Eligible
     Assignee.

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

          "Environmental Law" means any federal, state, local or foreign
     statute, law, ordinance, rule, regulation, code, order, judgment, decree or
     judicial or agency interpretation, policy or guidance relating to pollution
     or protection of the environment, health, safety or natural resources,
     including, without limitation,

                                       4
<PAGE>

     those relating to the use, handling, transportation, treatment, storage,
     disposal, release or discharge of Hazardous Materials.

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

          "Equivalent" in Dollars of any Foreign Currency on any date means the
     equivalent in Dollars of such Foreign Currency determined by using the
     quoted spot rate at which the Sub-Agent's principal office in London offers
     to exchange Dollars for such Foreign Currency in London prior to 4:00 P.M.
     (London time) (unless otherwise indicated by the terms of this Agreement)
     on such date as is required pursuant to the terms of this Agreement, and
     the "Equivalent" in any Foreign Currency of Dollars means the equivalent in
     such Foreign Currency of Dollars determined by using the quoted spot rate
     at which the Sub-Agent's principal office in London offers to exchange such
     Foreign Currency for Dollars in London prior to 4:00 P.M. (London time)
     (unless otherwise indicated by the terms of this Agreement) on such date as
     is required pursuant to the terms of this Agreement.

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

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

          "ERISA Event" means (a) (i) the occurrence of a reportable event,
     within the meaning of Section 4043 of ERISA, with respect to any Plan
     unless the 30-day notice requirement with respect to such event has been
     waived by the PBGC, or (ii) the requirements of subsection (1) of Section
     4043(b) of ERISA (without regard to subsection (2) of such Section) are met
     with a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of
     a Plan, and an event described in paragraph (9), (10), (11), (12) or (13)
     of Section 4043(c) of ERISA is reasonably expected to occur with respect to
     such Plan within the following 30 days; (b) the application for a minimum
     funding waiver with respect to a Plan; (c) the provision by the
     administrator of any Plan of a notice of intent to terminate such Plan
     pursuant to Section 4041(a)(2) of ERISA (including any such notice with
     respect to a plan amendment referred to in Section 4041(e) of ERISA); (d)
     the cessation of operations at a facility of the Borrower or any ERISA
     Affiliate in the circumstances described in Section 4062(e) of ERISA; (e)
     the withdrawal by the Borrower or any ERISA Affiliate from a Multiple
     Employer Plan during a plan year for which it was a substantial employer,
     as defined in Section 4001(a)(2) of ERISA; (f) the conditions for the
     imposition of a lien under Section 302(f) of ERISA shall have been met with
     respect to any Plan; (g) the adoption of an amendment to a Plan requiring
     the provision of security to such Plan pursuant to Section 307 of ERISA; or
     (h) the institution by the PBGC of proceedings to terminate a Plan pursuant
     to Section 4042 of ERISA, or the occurrence of any event or condition
     described in Section 4042 of ERISA that constitutes grounds for the
     termination of, or the appointment of a trustee to administer, a Plan.

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

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

          "Eurocurrency Rate" means, for any Interest Period for each
     Eurocurrency Rate Advance comprising part of the same Revolving Credit
     Borrowing, an interest rate per annum equal to the rate per annum obtained
     by dividing (a) the rate per annum (rounded upward to the nearest whole
     multiple of 1/100

                                       5
<PAGE>

     of 1% per annum) appearing on Dow Jones Markets Telerate Page 3750 (or any
     successor page) as the London interbank offered rate for deposits in
     Dollars or the applicable Committed Currency at approximately 11:00 A.M.
     (London time) two Business Days prior to the first day of such Interest
     Period for a term comparable to such Interest Period or, if for any reason
     such rate is not available, the average (rounded upward to the nearest
     whole multiple of 1/100 of 1% per annum, if such average is not such a
     multiple) of the rate per annum at which deposits in Dollars or the
     applicable Committed Currency is offered by the principal office of each of
     the Reference Banks in London, England to prime banks in the London
     interbank market at 11:00 A.M. (London time) two Business Days before the
     first day of such Interest Period in an amount substantially equal to such
     Reference Bank's Eurocurrency Rate Advance comprising part of such
     Revolving Credit Borrowing to be outstanding during such Interest Period
     and for a period equal to such Interest Period by (b) a percentage equal to
     100% minus the Eurocurrency Rate Reserve Percentage for such Interest
     Period. If the Dow Jones Markets Page 3750 (or any successor page) is
     unavailable, the Eurocurrency Rate for any Interest Period for each
     Eurocurrency Rate Advance comprising part of the same Revolving Credit
     Borrowing shall be determined by the Agent on the basis of applicable rates
     furnished to and received by the Agent from the Reference Banks two
     Business Days before the first day of such Interest Period, subject,
     however, to the provisions of Section 2.08.

          "Eurocurrency Rate Advance" means a Revolving Credit Advance
     denominated in Dollars or a Committed Currency that bears interest as
     provided in Section 2.07(a)(ii).

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

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

          "Extension Date" has the meaning specified in Section 2.18(b).

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

          "Fixed Rate Advances" has the meaning specified in Section 2.03(a)(i),
     which Advances shall be denominated in Dollars or in any Foreign Currency.

          "Foreign Currency" means any Committed Currency and any other lawful
     currency (other than Dollars) that is freely transferable or convertible
     into Dollars.

          "GAAP" has the meaning specified in Section 1.03.

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

                                       6
<PAGE>

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

          "Information Memorandum" means the information memorandum
     dated__________, 2003 used by the Agent in connection with the syndication
     of the Commitments.

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

               (i) the Borrower may not select any Interest Period that ends
          after the Termination Date or, if the Revolving Credit Advances have
          been converted to a term loan pursuant to Section 2.06 prior to such
          selection, that ends after the Maturity Date;

               (ii) Interest Periods commencing on the same date for
          Eurocurrency Rate Advances comprising part of the same Revolving
          Credit Borrowing or for LIBO Rate Advances comprising part of the same
          Competitive Bid Borrowing shall be of the same duration;

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

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

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

          "Lenders" means the Initial Lenders, each Assuming Lender that shall
     become a party hereto pursuant to Section 2.18 and each Person that shall
     become a party hereto pursuant to Section 8.07.

          "LIBO Rate" means, for any Interest Period for all LIBO Rate Advances
     comprising part of the same Competitive Bid Borrowing, an interest rate per
     annum equal to the rate per annum obtained by dividing (a) the rate per
     annum (rounded upward to the nearest whole multiple of 1/100 of 1% per
     annum) appearing on Dow Jones Markets Telerate Page 3750 (or any successor
     page) as the London interbank offered rate for deposits in Dollars or the
     applicable Committed Currency at approximately 11:00 A.M. (London time) two
     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period or, if for any reason such rate is not
     available, the average (rounded upward to the nearest whole multiple of
     1/100 of 1% per annum, if such average is not such a multiple) of the rate
     per annum at which deposits in Dollars or the applicable Foreign Currency
     is offered by the principal office of

                                       7
<PAGE>

     each of the Reference Banks in London, England to prime banks in the London
     interbank market at 11:00 A.M. (London time) two Business Days before the
     first day of such Interest Period in an amount substantially equal to the
     amount that would be the Reference Banks' respective ratable shares of such
     Borrowing if such Borrowing were to be a Revolving Credit Borrowing to be
     outstanding during such Interest Period and for a period equal to such
     Interest Period by (b) a percentage equal to 100% minus the Eurocurrency
     Rate Reserve Percentage for such Interest Period. If the Dow Jones Markets
     Telerate Page 3750 (or any successor page) is unavailable, the LIBO Rate
     for any Interest Period for each LIBO Rate Advance comprising part of the
     same Competitive Bid Borrowing shall be determined by the Agent on the
     basis of applicable rates furnished to and received by the Agent from the
     Reference Banks two Business Days before the first day of such Interest
     Period, subject, however, to the provisions of Section 2.08.

          "LIBO Rate Advances" means a Competitive Bid Advance denominated in
     Dollars or in any Foreign Currency and bearing interest based on the LIBO
     Rate.

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

          "Local Rate Advance" means a Competitive Bid Advance denominated in
     any Foreign Currency sourced from the jurisdiction of issuance of such
     Foreign Currency and bearing interest at a fixed rate.

          "Material Adverse Change" means any material adverse change in the
     business, condition (financial or otherwise), operations, performance,
     properties or prospects of the Borrower or the Borrower and its
     Subsidiaries taken as a whole.

          "Material Adverse Effect" means a material adverse effect on (a) the
     business, condition (financial or otherwise), operations, performance,
     properties or prospects of the Borrower or the Borrower and its
     Subsidiaries taken as a whole, (b) the rights and remedies of the Agent or
     any Lender under this Agreement or any Note or (c) the ability of the
     Borrower to perform its obligations under this Agreement or any Note.

          "Maturity Date" means the earlier of (a) the first anniversary of the
     Termination Date and (b) the date of termination in whole of the aggregate
     Commitments pursuant to Section 2.05 or 6.01.

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

          "Multiple Employer Plan" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
     Borrower or any ERISA Affiliate and at least one Person other than the
     Borrower and the ERISA Affiliates or (b) was so maintained and in respect
     of which the Borrower or any ERISA Affiliate could have liability under
     Section 4064 or 4069 of ERISA in the event such plan has been or were to be
     terminated.

          "Non-Consenting Lender" has the meaning specified in Section 2.18(b).

          "Note" means a Revolving Credit Note or a Competitive Bid Note.

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

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

          "Payment Office" means, for any Foreign Currency, such office of
     Citibank as shall be from time to time selected by the Agent and notified
     by the Agent to the Borrower and the Lenders.

                                       8
<PAGE>

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

          "Permitted Liens" means such of the following as to which no
     enforcement, collection, execution, levy or foreclosure proceeding shall
     have been commenced: (a) Liens for taxes, assessments and governmental
     charges or levies to the extent not required to be paid under Section
     5.01(b) hereof; (b) Liens imposed by law, such as materialmen's,
     mechanics', carriers', workmen's and repairmen's Liens and other similar
     Liens arising in the ordinary course of business securing obligations that
     are not overdue for a period of more than 45 days; (c) pledges or deposits
     to secure obligations under workers' compensation laws or similar
     legislation or to secure public or statutory obligations; and (d)
     easements, rights of way and other encumbrances on title to real property
     that do not render title to the property encumbered thereby unmarketable or
     materially adversely affect the use of such property for its present
     purposes.

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

          "Plan" means a Single Employer Plan or a Multiple Employer Plan.

          "Reference Banks" means Citibank, Bank One, NA and Bank of America,
     N.A.

          "Register" has the meaning specified in Section 8.07(d).

          "Related Person" means each of the following: (a) the Borrower, (b)
     any Subsidiary of the Borrower or (c) any employee benefit plan of the
     Borrower or of any Subsidiary of the Borrower or any Person organized,
     appointed or established by the Borrower for or pursuant to the terms of
     any such plan.

          "Required Lenders" means at any time Lenders owed at least a majority
     in interest of the then aggregate unpaid principal amount (based on the
     Equivalent in Dollars at such time) of the Revolving Credit Advances owing
     to Lenders, or, if no such principal amount is then outstanding, Lenders
     having at least a majority in interest of the Commitments.

          "Revolving Credit Advance" means an advance by a Lender to the
     Borrower as part of a Revolving Credit Borrowing and refers to a Base Rate
     Advance or a Eurocurrency Rate Advance (each of which shall be a "Type" of
     Revolving Credit Advance).

          "Revolving Credit Borrowing" means a borrowing consisting of
     simultaneous Revolving Credit Advances of the same Type made by each of the
     Lenders pursuant to Section 2.01.

          "Revolving Credit Note" means a promissory note of the Borrower
     payable to the order of any Lender, delivered pursuant to a request made
     under Section 2.16 in substantially the form of Exhibit A-1 hereto,
     evidencing the aggregate indebtedness of the Borrower to such Lender
     resulting from the Revolving Credit Advances made by such Lender.

          "Single Employer Plan" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
     Borrower or any ERISA Affiliate and no Person other than the Borrower and
     the ERISA Affiliates or (b) was so maintained and in respect of which the
     Borrower or any ERISA Affiliate could have liability under Section 4069 of
     ERISA in the event such plan has been or were to be terminated.

          "Sub-Agent" means Citibank International plc.

          "Subsidiary" of any Person means any corporation, partnership, joint
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of (a) the issued and outstanding capital stock having
     ordinary voting power to elect a majority of the Board of Directors of such
     corporation

                                       9
<PAGE>

     (irrespective of whether at the time capital stock of any other class or
     classes of such corporation shall or might have voting power upon the
     occurrence of any contingency), (b) the interest in the capital or profits
     of such limited liability company, partnership or joint venture or (c) the
     beneficial interest in such trust or estate is at the time directly or
     indirectly owned or controlled by such Person, by such Person and one or
     more of its other Subsidiaries or by one or more of such Person's other
     Subsidiaries; it being understood that Snap-On Credit LLC, which is 50%
     owned by the Borrower, shall not be deemed to be a "Subsidiary" of the
     Borrower for purposes of this Agreement.

          "Term Loan Conversion Date" means the Termination Date on which all
     Revolving Credit Advances outstanding on such date are converted into a
     term loan pursuant to Section 2.06.

          "Term Loan Election" has the meaning specified in Section 2.06.

          "Termination Date" means the earlier of (a) July 30, 2004, subject to
     the extension thereof pursuant to Section 2.18 and (b) the date of
     termination in whole of the Commitments pursuant to Section 2.05 or 6.01;
     provided, however, that the Termination Date of any Lender that is a
     Non-Consenting Lender to any requested extension pursuant to Section 2.18
     shall be the Termination Date in effect immediately prior to the applicable
     Extension Date for all purposes of this Agreement.

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

     SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding".

     SECTION 1.03. Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the
financial statements referred to in Section 4.01(e) ("GAAP").

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

     SECTION 2.01. The Revolving Credit Advances. Each Lender severally agrees,
on the terms and conditions hereinafter set forth, to make Revolving Credit
Advances to the Borrower from time to time on any Business Day during the period
from the Effective Date until the Termination Date in an aggregate amount (based
in respect of any Revolving Credit Advances to be denominated in a Committed
Currency on the Equivalent in Dollars determined on the date of delivery of the
applicable Notice of Revolving Credit Borrowing) not to exceed at any time
outstanding such Lender's Commitment, provided that the aggregate amount of the
Commitments of the Lenders shall be deemed used from time to time to the extent
of the aggregate amount (based in respect of any Competitive Bid Advance
denominated in a Foreign Currency on the Equivalent in Dollars at such time) of
the Competitive Bid Advances then outstanding and such deemed use of the
aggregate amount of the Commitments shall be allocated among the Lenders ratably
according to their respective Commitments (such deemed use of the aggregate
amount of the Commitments being a "Competitive Bid Reduction"). Each Revolving
Credit Borrowing shall be in an aggregate amount of $10,000,000 or an integral
multiple of $1,000,000 in excess thereof (or the Equivalent thereof in any
Committed Currency determined on the date of delivery of the applicable Notice
of Revolving Credit Borrowing) and shall consist of Revolving Credit Advances of
the same Type made on the same day by the Lenders ratably according to their
respective Commitments. Within the limits of each Lender's Commitment, the
Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.10 and
reborrow under this Section 2.01.

                                       10
<PAGE>

     SECTION 2.02. Making the Revolving Credit Advances. (a) Each Revolving
Credit Borrowing shall be made on notice, given not later than (x) 11:00 A.M.
(New York City time) on the third Business Day prior to the date of the proposed
Revolving Credit Borrowing in the case of a Revolving Credit Borrowing
consisting of Eurocurrency Rate Advances denominated in Dollars, (y) 4:00 P.M.
(London time) on the third Business Day prior to the date of the proposed
Revolving Credit Borrowing in the case of a Revolving Credit Borrowing
consisting of Eurocurrency Rate Advances denominated in any Committed Currency,
or (z) 11:00 A.M. (New York City time) on the first Business Day prior to the
date of the proposed Revolving Credit Borrowing in the case of a Revolving
Credit Borrowing consisting of Base Rate Advances, by the Borrower to the Agent
(and, in the case of a Revolving Credit Borrowing consisting of Eurocurrency
Rate Advances, simultaneously to the Sub-Agent), which shall give to each Lender
prompt notice thereof by telecopier or telex. Each such notice of a Revolving
Credit Borrowing (a "Notice of Revolving Credit Borrowing") shall be by
telephone, confirmed immediately in writing, or telecopier or telex in
substantially the form of Exhibit B-1 hereto, specifying therein the requested
(i) date of such Revolving Credit Borrowing, (ii) Type of Advances comprising
such Revolving Credit Borrowing, (iii) aggregate amount of such Revolving Credit
Borrowing, and (iv) in the case of a Revolving Credit Borrowing consisting of
Eurocurrency Rate Advances, initial Interest Period and currency for each such
Revolving Credit Advance. Each Lender shall, before 11:00 A.M. (New York City
time) on the date of such Revolving Credit Borrowing, in the case of a Revolving
Credit Borrowing consisting of Advances denominated in Dollars, and before 4:00
P.M. (London time) on the date of such Revolving Credit Borrowing, in the case
of a Revolving Credit Borrowing consisting of Eurocurrency Rate Advances
denominated in any Committed Currency, make available for the account of its
Applicable Lending Office to the Agent at the applicable Agent's Account, in
same day funds, such Lender's ratable portion of such Revolving Credit
Borrowing. After the Agent's receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Agent will make such funds
available to the Borrower at the Agent's address referred to in Section 8.02(a)
or at the applicable Payment Office, as the case may be.

     (b) Anything in subsection (a) above to the contrary notwithstanding, (i)
the Borrower may not select Eurocurrency Rate Advances for any Revolving Credit
Borrowing if the aggregate amount of such Revolving Credit Borrowing is less
than $10,000,000 or if the obligation of the Lenders to make Eurocurrency Rate
Advances shall then be suspended pursuant to Section 2.08 or 2.12 and (ii) the
Eurocurrency Rate Advances may not be outstanding as part of more than six
separate Revolving Credit Borrowings.

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

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

                                       11
<PAGE>

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

     SECTION 2.03. The Competitive Bid Advances. (a) Each Lender severally
agrees that the Borrower may make Competitive Bid Borrowings under this Section
2.03 from time to time on any Business Day during the period from the date
hereof until the date occurring 30 days prior to the Termination Date in the
manner set forth below; provided that, following the making of each Competitive
Bid Borrowing, the aggregate amount of the Advances then outstanding (based in
respect of any Advance denominated in a Foreign Currency on the Equivalent in
Dollars at the time such Competitive Bid Borrowing is requested) shall not
exceed the aggregate amount of the Commitments of the Lenders (computed without
regard to any Competitive Bid Reduction); provided further that following the
making of each Competitive Bid Borrowing, the aggregate amount of the Advances
then outstanding (based in respect of any Advance denominated in a Foreign
Currency on the Equivalent in Dollars at the time such Competitive Bid Borrowing
is requested) shall not exceed the aggregate amount of one third of the
Commitments of the Lenders (computed without regard to any Competitive Bid
Reduction).

          (i) The Borrower may request a Competitive Bid Borrowing under this
     Section 2.03 by delivering to the Agent (and, in the case of a Competitive
     Bid Borrowing not consisting of Fixed Rate Advances or LIBO Rate Advances
     to be denominated in Dollars, simultaneously to the Sub-Agent), by
     telecopier or telex, a notice of a Competitive Bid Borrowing (a "Notice of
     Competitive Bid Borrowing"), in substantially the form of Exhibit B-2
     hereto, specifying therein the requested (A) date of such proposed
     Competitive Bid Borrowing, (B) aggregate amount of such proposed
     Competitive Bid Borrowing, (C) interest rate basis and day count convention
     to be offered by the Lenders, (D) currency of such proposed Competitive Bid
     Borrowing, (E) in the case of a Competitive Bid Borrowing consisting of
     LIBO Rate Advances, Interest Period, or in the case of a Competitive Bid
     Borrowing consisting of Fixed Rate Advances or Local Rate Advances,
     maturity date for repayment of each Fixed Rate Advance or Local Rate
     Advance to be made as part of such Competitive Bid Borrowing (which
     maturity date may not be earlier than the date occurring seven days after
     the date of such Competitive Bid Borrowing or later than the earlier of (I)
     180 days after the date of such Competitive Bid Borrowing and (II) the
     Termination Date), (F) interest payment date or dates relating thereto, (G)
     location of the Borrower's account to which funds are to be advanced and
     (H) other terms (if any) to be applicable to such Competitive Bid
     Borrowing, not later than (w) 10:00 A.M. (New York City time) at least two
     Business Days prior to the date of the proposed Competitive Bid Borrowing,
     if the Borrower shall specify in the Notice of Competitive Bid Borrowing
     that the rates of interest to be offered by the Lenders shall be fixed
     rates per annum (the Advances comprising any such Competitive Bid Borrowing
     being referred to herein as "Fixed Rate Advances") and that the Advances
     comprising such proposed Competitive Bid Borrowing shall be denominated in
     Dollars, (x) 10:00 A.M. (New York City time) at least four Business Days
     prior to the date of the proposed Competitive Bid Borrowing, if the
     Borrower shall specify in the Notice of Competitive Bid Borrowing that the
     Advances comprising such Competitive Bid Borrowing shall be LIBO Rate
     Advances denominated in Dollars, (y) 10:00 A.M. (London time) at least two
     Business Days prior to the date of the proposed Competitive Bid Borrowing,
     if the Borrower shall specify in the Notice of Competitive Bid Borrowing
     that the Advances comprising such proposed Competitive Bid Borrowing shall
     be either Fixed Rate Advances denominated in any Foreign Currency or Local
     Rate Advances denominated in any Foreign Currency and (z) 10:00 A.M.
     (London time) at least four Business Days prior to the date of the proposed
     Competitive Bid Borrowing, if the Borrower shall instead specify in the
     Notice of Competitive Bid Borrowing that the Advances comprising such
     Competitive Bid Borrowing shall be LIBO Rate Advances denominated in any
     Foreign Currency. The Agent shall in turn promptly notify each Lender of
     each request for a Competitive Bid Borrowing received by it from the
     Borrower by sending such Lender a copy of the related Notice of Competitive
     Bid Borrowing.

          (ii) Each Lender may, if, in its sole discretion, it elects to do so,
     irrevocably offer to make one or more Competitive Bid Advances to the
     Borrower as part of such proposed Competitive Bid

                                       12
<PAGE>

     Borrowing at a rate or rates of interest specified by such Lender in its
     sole discretion, by notifying the Agent or the Sub-Agent, as the case may
     be (which shall give prompt notice thereof to the Borrower), (A) before
     9:30 A.M. (New York City time) on the date of such proposed Competitive Bid
     Borrowing, in the case of a Competitive Bid Borrowing consisting of Fixed
     Rate Advances denominated in Dollars, (B) before 10:00 A.M. (New York City
     time) three Business Days before the date of such proposed Competitive Bid
     Borrowing, in the case of a Competitive Bid Borrowing consisting of LIBO
     Rate Advances, denominated in Dollars, (C) before 12:00 noon (London time)
     on the Business Day prior to the date of such proposed Competitive Bid
     Borrowing, in the case of a Competitive Bid Borrowing consisting of either
     Fixed Rate Advances denominated in any Foreign Currency or Local Rate
     Advances denominated in any Foreign Currency and (D) before 12:00 noon
     (London time) on the third Business Day prior to the date of such proposed
     Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing
     consisting of LIBO Rate Advances denominated in any Foreign Currency, of
     the minimum amount and maximum amount of each Competitive Bid Advance which
     such Lender would be willing to make as part of such proposed Competitive
     Bid Borrowing (which amounts or the Equivalent thereof in Dollars, as the
     case may be, of such proposed Competitive Bid may, subject to the provisos
     to the first sentence of this Section 2.03(a), exceed such Lender's
     Commitment, if any), the rate or rates of interest therefor and such
     Lender's Applicable Lending Office with respect to such Competitive Bid
     Advance; provided that if the Agent in its capacity as a Lender shall, in
     its sole discretion, elect to make any such offer, it shall notify the
     Borrower of such offer at least 30 minutes before the time and on the date
     on which notice of such election is to be given to the Agent or to the
     Sub-Agent, as the case may be, by the other Lenders. If any Lender shall
     elect not to make such an offer, such Lender shall so notify the Agent
     before 10:00 A.M. (New York City time) or the Sub-Agent before 12:00 noon
     (London time) on the date on which notice of such election is to be given
     to the Agent or to the Sub-Agent, as the case may be, by the other Lenders,
     and such Lender shall not be obligated to, and shall not, make any
     Competitive Bid Advance as part of such Competitive Bid Borrowing; provided
     that the failure by any Lender to give such notice shall not cause such
     Lender to be obligated to make any Competitive Bid Advance as part of such
     proposed Competitive Bid Borrowing.

          (iii) The Borrower shall, in turn, (A) before 10:30 A.M. (New York
     City time) on the date of such proposed Competitive Bid Borrowing, in the
     case of a Competitive Bid Borrowing consisting of Fixed Rate Advances
     denominated in Dollars, (B) before 11:00 A.M. (New York City time) three
     Business Days before the date of such proposed Competitive Bid Borrowing,
     in the case of a Competitive Bid Borrowing consisting of LIBO Rate Advances
     denominated in Dollars, (C) before 3:00 P.M. (London time) on the Business
     Day prior to the date of such proposed Competitive Bid Borrowing, in the
     case of a Competitive Bid Borrowing consisting of either Fixed Rate
     Advances denominated in any Foreign Currency or Local Rate Advances
     denominated in any Foreign Currency and (D) before 3:00 P.M. (London time)
     on the third Business Day prior to the date of such Competitive Bid
     Borrowing, in the case of a Competitive Bid Borrowing consisting of LIBO
     Rate Advances denominated in any Foreign Currency, either:

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

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

                                       13
<PAGE>

          such interest rate will be allocated among such Lenders in proportion
          to the amount that each such Lender offered at such interest rate.

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

          (v) If the Borrower accepts one or more of the offers made by any
     Lender or Lenders pursuant to paragraph (iii)(y) above, the Agent or the
     Sub-Agent, as the case may be, shall in turn promptly notify (A) each
     Lender that has made an offer as described in paragraph (ii) above, of the
     date and aggregate amount of such Competitive Bid Borrowing and whether or
     not any offer or offers made by such Lender pursuant to paragraph (ii)
     above have been accepted by the Borrower, (B) each Lender that is to make a
     Competitive Bid Advance as part of such Competitive Bid Borrowing, of the
     amount of each Competitive Bid Advance to be made by such Lender as part of
     such Competitive Bid Borrowing, and (C) each Lender that is to make a
     Competitive Bid Advance as part of such Competitive Bid Borrowing, upon
     receipt, that the Agent or the Sub-Agent, as the case may be, has received
     forms of documents appearing to fulfill the applicable conditions set forth
     in Article III. Each Lender that is to make a Competitive Bid Advance as
     part of such Competitive Bid Borrowing shall, before 11:00 A.M. (New York
     City time), in the case of Competitive Bid Advances to be denominated in
     Dollars or 11:00 A.M. (London time), in the case of Competitive Bid
     Advances to be denominated in any Foreign Currency, on the date of such
     Competitive Bid Borrowing specified in the notice received from the Agent
     or the Sub-Agent, as the case may be, pursuant to clause (A) of the
     preceding sentence or any later time when such Lender shall have received
     notice from the Agent or the Sub-Agent, as the case may be pursuant to
     clause (C) of the preceding sentence, make available for the account of its
     Applicable Lending Office to the Agent (x) in the case of a Competitive Bid
     Borrowing denominated in Dollars, at its address referred to in Section
     8.02(a), in same day funds, such Lender's portion of such Competitive Bid
     Borrowing in Dollars and (y) in the case of a Competitive Bid Borrowing in
     a Foreign Currency, at the Payment Office for such Foreign Currency as
     shall have been notified by the Agent to the Lenders prior thereto, in same
     day funds, such Lender's portion of such Competitive Bid Borrowing in such
     Foreign Currency. Upon fulfillment of the applicable conditions set forth
     in Article III and after receipt by the Agent of such funds, the Agent will
     make such funds available to the Borrower at the location specified by the
     Borrower in its Notice of Competitive Bid Borrowing. Promptly after each
     Competitive Bid Borrowing the Agent will notify each Lender of the amount
     of the Competitive Bid Borrowing, the consequent Competitive Bid Reduction
     and the dates upon which such Competitive Bid Reduction commenced and will
     terminate.

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

     (b) Each Competitive Bid Borrowing shall be in an aggregate amount of
$10,000,000 (or the Equivalent thereof in any Foreign Currency, determined as of
the time of the applicable Notice of Competitive Bid Borrowing) or an integral
multiple of $1,000,000 (or the Equivalent thereof in any Foreign Currency,
determined as of the time of the applicable Notice of Competitive Bid Borrowing)
in excess thereof and, following the making of each Competitive Bid Borrowing,
the Borrower shall be in compliance with the limitations set forth in the
provisos to the first sentence of subsection (a) above.

                                       14
<PAGE>

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

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

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

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

     SECTION 2.04. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of
such Lender's Commitment from the Effective Date in the case of each Initial
Lender and from the later of the Effective Date and the effective date specified
in the Assumption Agreement or in the Assignment and Acceptance pursuant to
which it became a Lender in the case of each other Lender until the earlier of
the Term Loan Conversion Date and the Termination Date at a rate per annum equal
to the Applicable Percentage in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December,
commencing September 30, 2003, and on the Term Loan Conversion Date or the
Termination Date, as the case may be.

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

     SECTION 2.05. Termination or Reduction of the Commitments. (a) Optional.
The Borrower shall have the right, upon at least three Business Days' notice to
the Agent, to terminate in whole or reduce ratably in part the unused portions
of the respective Commitments of the Lenders, provided that each partial
reduction shall be in the aggregate amount of $10,000,000 or an integral
multiple of $1,000,000 in excess thereof and provided further that the aggregate
amount of the Commitments of the Lenders shall not be reduced to an amount that
is less than the aggregate principal amount of the Competitive Bid Advances
denominated in Dollars then outstanding plus the Equivalent in Dollars
(determined as of the date of the notice of prepayment) of the aggregate
principal amount of the Competitive Bid Advances denominated in Foreign
Currencies then outstanding.

     (b) Mandatory. On the Termination Date, if the Borrower has made the Term
Loan Election in accordance with Section 2.06 prior to such date, and from time
to time after the Termination Date upon

                                       15
<PAGE>

each prepayment of the Revolving Credit Advances, the Commitments of the Lenders
shall be automatically and permanently reduced on a pro rata basis by an amount
equal to the amount by which (i) the aggregate Commitments immediately prior to
such reduction exceeds (ii) the aggregate unpaid principal amount of all
Revolving Credit Advances outstanding at such time.

     SECTION 2.06. Repayment of Revolving Credit Advances. The Borrower shall,
subject to the next succeeding sentence, repay to the Agent for the ratable
account of the Lenders on the Termination Date the aggregate principal amount of
the Revolving Credit Advances then outstanding. The Borrower may, upon not less
than 15 days' notice to the Agent, elect (the "Term Loan Election") to convert
all of the Revolving Credit Advances outstanding on the Termination Date in
effect at such time into a term loan which the Borrower shall repay in full
ratably to the Lenders on the Maturity Date; provided that the Term Loan
Election may not be exercised if (a) a Default has occurred and is continuing on
the date of notice of the Term Loan Election or on the date on which the Term
Loan Election is to be effected or (b) the Borrower has requested an extension
of the Termination Date in accordance with Section 2.18 and the applicable
Extension Date has not occurred. All Revolving Credit Advances converted into a
term loan pursuant to this Section 2.06 shall continue to constitute Revolving
Credit Advances except that the Borrower may not reborrow pursuant to Section
2.01 after all or any portion of such Revolving Credit Advances have been
prepaid pursuant to Section 2.10.

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

          (i) Base Rate Advances. During such periods as such Revolving Credit
     Advance is a Base Rate Advance, a rate per annum equal at all times to the
     sum of (x) the Base Rate in effect from time to time plus (y) the
     Applicable Margin in effect from time to time plus (z) the Applicable
     Utilization Fee in effect from time to time, payable in arrears quarterly
     on the last day of each March, June, September and December during such
     periods and on the date such Base Rate Advance shall be Converted or paid
     in full.

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

     (b) Default Interest. Upon the occurrence and during the continuance of an
Event of Default, the Borrower shall pay interest on (i) the unpaid principal
amount of each Revolving Credit Advance owing to each Lender, payable in arrears
on the dates referred to in clause (a)(i) or (a)(ii) above, at a rate per annum
equal at all times to 2% per annum above the rate per annum required to be paid
on such Revolving Credit Advance pursuant to clause (a)(i) or (a)(ii) above and
(ii) to the fullest extent permitted by law, the amount of any interest, fee or
other amount payable hereunder that is not paid when due, from the date such
amount shall be due until such amount shall be paid in full, payable in arrears
on the date such amount shall be paid in full and on demand, at a rate per annum
equal at all times to 2% per annum above the rate per annum required to be paid
on Base Rate Advances pursuant to clause (a)(i) above.

     SECTION 2.08. Interest Rate Determination. (a) The Agent shall give prompt
notice to the Borrower and the Lenders of the applicable interest rate
determined by the Agent for purposes of Section 2.07(a)(i) or (ii), and the
rate, if any, furnished by each Reference Bank for the purpose of determining
the interest rate under Section 2.07(a)(ii).

     (b) If, with respect to any Eurocurrency Rate Advances, the Required
Lenders notify the Agent that (i) they are unable to obtain matching deposits in
the London inter-bank market at or about 11:00 A.M.

                                       16
<PAGE>

(London time) on the second Business Day before the making of a Borrowing in
sufficient amounts to fund their respective Revolving Credit Advances as a part
of such Borrowing during its Interest Period or (ii) the Eurocurrency Rate for
any Interest Period for such Advances will not adequately reflect the cost to
such Required Lenders of making, funding or maintaining their respective
Eurocurrency Rate Advances for such Interest Period, the Agent shall forthwith
so notify the Borrower and the Lenders, whereupon (A) the Borrower will, on the
last day of the then existing Interest Period therefor, (1) if such Eurocurrency
Rate Advances are denominated in Dollars, either (x) prepay such Advances or (y)
Convert such Advances into Base Rate Advances and (2) if such Eurocurrency Rate
Advances are denominated in any Committed Currency, either (x) prepay such
Advances or (y) redenominate such Advances into an Equivalent amount of Dollars
and Convert such Advances into Base Rate Advances and (B) the obligation of the
Lenders to make, or to Convert Revolving Credit Advances into, Eurocurrency Rate
Advances shall be suspended until the Agent shall notify the Borrower and the
Lenders that the circumstances causing such suspension no longer exist; provided
that, if the circumstances set forth in clause (ii) above are applicable, the
Borrower may elect, by notice to the Agent and the Lenders, to continue such
Advances in such Committed Currency for Interest Periods of not longer than one
month, which Advances shall thereafter bear interest at a rate per annum equal
to the Applicable Margin plus, for each Lender, the cost to such Lender
(expressed as a rate per annum) of funding its Eurocurrency Rate Advances by
whatever means it reasonably determines to be appropriate. Each Lender shall
certify its cost of funds for each Interest Period to the Agent and the Borrower
as soon as practicable (but in any event not later than ten Business Days after
the first day of such Interest Period).

     (c) If the Borrower shall fail to select the duration of any Interest
Period for any Eurocurrency Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, the Agent will
forthwith so notify the Borrower and the Lenders and such Advances will
automatically, on the last day of the then existing Interest Period therefor, be
continued as Eurocurrency Rate Advances having an interest period of one month.

     (d) On the date on which the aggregate unpaid principal amount of
Eurocurrency Rate Advances comprising any Borrowing shall be reduced, by payment
or prepayment or otherwise, to less than $10,000,000, such Advances shall
automatically Convert into Base Rate Advances.

     (e) Upon the occurrence and during the continuance of any Event of Default,
(i) each Eurocurrency Rate Advance will automatically, on the last day of the
then existing Interest Period therefor, (A) if such Eurocurrency Rate Advances
are denominated in Dollars, be Converted into Base Rate Advances and (B) if such
Eurocurrency Rate Advances are denominated in any Committed Currency, be
redenominated into an Equivalent amount of Dollars and be Converted into Base
Rate Advances and (ii) the obligation of the Lenders to make, or to Convert
Advances into, Eurocurrency Rate Advances shall be suspended; provided that
Borrower may elect, by notice to the Agent and the Lenders within one Business
Day of such Event of Default, to continue such Advances in such Committed
Currency, whereupon the Agent may require that each Interest Period relating to
such Eurocurrency Rate Advances shall bear interest at the Overnight
Eurocurrency Rate for a period of three Business Days and thereafter, each such
Interest Period shall have a duration of not longer than one month. "Overnight
Eurocurrency Rate" means the rate per annum applicable to an overnight period
beginning on one Business Day and ending on the next Business Day equal to the
sum of 1%, the Applicable Interest Rate Margin and the average, rounded upward
to the nearest whole multiple of 1/16 of 1%, if such average is not such a
multiple, of the respective rates per annum quoted by each Reference Bank to the
Agent on request as the rate at which it is offering overnight deposits in the
relevant currency in amounts comparable to such Reference Bank's Eurocurrency
Rate Advances.

     (f) If Dow Jones Markets Telerate Page 3750 is unavailable and fewer than
two Reference Banks furnish timely information to the Agent for determining the
Eurocurrency Rate or LIBO Rate for any Eurocurrency Rate Advances or LIBO Rate
Advances, as the case may be,

          (i) the Agent shall forthwith notify the Borrower and the Lenders that
     the interest rate cannot be determined for such Eurocurrency Rate Advances
     or LIBO Rate Advances, as the case may be,

          (ii) with respect to Eurocurrency Rate Advances, each such Advance
     will automatically, on the last day of the then existing Interest Period
     therefor, (A) if such Eurocurrency Rate Advance is denominated in Dollars,
     be prepaid by the Borrower or be automatically Converted into a Base Rate

                                       17
<PAGE>

     Advance and (B) if such Eurocurrency Rate Advance is denominated in any
     Committed Currency, be prepaid by the Borrower or be automatically
     redenominated into an Equivalent amount of Dollars and be Converted into a
     Base Rate Advance (or if such Advance is then a Base Rate Advance, will
     continue as a Base Rate Advance), and

          (iii) the obligation of the Lenders to make Eurocurrency Rate Advances
     or LIBO Rate Advances or to Convert Revolving Credit Advances into
     Eurocurrency Rate Advances shall be suspended until the Agent shall notify
     the Borrower and the Lenders that the circumstances causing such suspension
     no longer exist.

     SECTION 2.09. Optional Conversion of Revolving Credit Advances. The
Borrower may on any Business Day, upon notice given to the Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to the date of
the proposed Conversion and subject to the provisions of Sections 2.08 and 2.12,
Convert all Revolving Credit Advances denominated in Dollars of one Type
comprising the same Borrowing into Revolving Credit Advances denominated in
Dollars of the other Type; provided, however, that any Conversion of
Eurocurrency Rate Advances into Base Rate Advances shall be made only on the
last day of an Interest Period for such Eurocurrency Rate Advances, any
Conversion of Base Rate Advances into Eurocurrency Rate Advances shall be in an
amount not less than the minimum amount specified in Section 2.02(b) and no
Conversion of any Revolving Credit Advances shall result in more separate
Revolving Credit Borrowings than permitted under Section 2.02(b). Each such
notice of a Conversion shall, within the restrictions specified above, specify
(i) the date of such Conversion, (ii) the Dollar denominated Revolving Credit
Advances to be Converted, and (iii) if such Conversion is into Eurocurrency Rate
Advances, the duration of the initial Interest Period for each such Advance.
Each notice of Conversion shall be irrevocable and binding on the Borrower.

     SECTION 2.10. Prepayments of Revolving Credit Advances. (a) Optional. The
Borrower may, upon notice at least two Business Days' prior to the date of such
prepayment, in the case of Eurocurrency Rate Advances, and not later than 11:00
A.M. (New York City time) on the date of such prepayment, in the case of Base
Rate Advances, to the Agent stating the proposed date and aggregate principal
amount of the prepayment, and if such notice is given the Borrower shall, prepay
the outstanding principal amount of the Revolving Credit Advances comprising
part of the same Revolving Credit Borrowing in whole or ratably in part without
premium or penalty, together with accrued interest to the date of such
prepayment on the principal amount prepaid; provided, however, that (x) each
partial prepayment shall be in an aggregate principal amount of $10,000,000 or
an integral multiple of $1,000,000 in excess thereof or the Equivalent thereof
in a Committed Currency (determined on the date notice of prepayment is given)
and (y) in the event of any such prepayment of a Eurocurrency Rate Advance, the
Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant
to Section 8.04(c).

     (b) Mandatory Prepayments. (i) If the Agent notifies the Borrower that, on
any interest payment date, the sum of (A) the aggregate principal amount of all
Advances denominated in Dollars then outstanding plus (B) the Equivalent in
Dollars (determined on the third Business Day prior to such interest payment
date) of the aggregate principal amount of all Advances denominated in Foreign
Currencies then outstanding exceeds 103% of the aggregate Commitments of the
Lenders on such date, the Borrower shall, within two Business Days after receipt
of such notice, prepay the outstanding principal amount of any Advances owing by
the Borrower in an aggregate amount sufficient to reduce such sum to an amount
not to exceed 100% of the aggregate Commitments of the Lenders on such date.

     (ii) Each prepayment made pursuant to this Section 2.10(b) shall be made
together with any interest accrued to the date of such prepayment on the
principal amounts prepaid and, in the case of any prepayment of a Eurocurrency
Rate Advance, a LIBO Rate Advance or a Local Rate Advance on a date other than
the last day of an Interest Period or at its maturity, any additional amounts
which the Borrower shall be obligated to reimburse to the Lenders in respect
thereof pursuant to Section 8.04(c). The Agent shall give prompt notice of any
prepayment required under this Section 2.10(b) to the Borrower and the Lenders.

     SECTION 2.11. Increased Costs. (a) If, due to either (i) the introduction
of or any change in or in the interpretation of any law or regulation or (ii)
the compliance with any guideline or request issued by any central bank or other
governmental authority including, without limitation, any agency of the European
Union or

                                       18
<PAGE>

similar monetary or multinational authority after the date hereof (whether or
not having the force of law), there shall be any increase in the cost to any
Lender of agreeing to make or making, funding or maintaining Eurocurrency Rate
Advances or LIBO Rate Advances (excluding for purposes of this Section 2.11 any
such increased costs resulting from (i) Taxes or Other Taxes (as to which
Section 2.14 shall govern) and (ii) changes in the basis of taxation of overall
net income or overall gross income by the United States or by the foreign
jurisdiction or state under the laws of which such Lender is organized or is
otherwise subject to tax), then the Borrower shall from time to time, upon
demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender additional amounts sufficient to compensate
such Lender for such increased cost, provided that the Borrower shall not be
required to pay any such additional amounts to the extent such additional
amounts accrued prior to the date that is six months prior to the date of such
notice. A certificate as to the amount of such increased cost, submitted to the
Borrower and the Agent by such Lender, shall be conclusive and binding for all
purposes, absent manifest error.

     (b) If any Lender determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) affects or would affect the amount of
capital required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender's commitment to lend hereunder and other
commitments of this type, then, upon demand by such Lender (with a copy of such
demand to the Agent), the Borrower shall pay to the Agent for the account of
such Lender, from time to time as specified by such Lender, additional amounts
sufficient to compensate such Lender or such corporation in the light of such
circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender's commitment
to lend hereunder. A certificate as to such amounts submitted to the Borrower
and the Agent by such Lender shall be conclusive and binding for all purposes,
absent manifest error.

     SECTION 2.12. Illegality. Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Agent that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful,
or any central bank or other governmental authority asserts that it is unlawful,
for any Lender or its Eurocurrency Lending Office to perform its obligations
hereunder to make Eurocurrency Rate Advances in Dollars or any Committed
Currency or LIBO Rate Advances in Dollars or any Foreign Currency or to fund or
maintain Eurocurrency Rate Advances in Dollars or any Committed Currency or LIBO
Rate Advances in Dollars or any Foreign Currency hereunder, (a) each
Eurocurrency Rate Advance or LIBO Rate Advance, as the case may be, will
automatically, upon such demand, (i) if such Eurocurrency Rate Advance or LIBO
Rate Advance is denominated in Dollars, be Converted into a Base Rate Advance or
an Advance that bears interest at the rate set forth in Section 2.07(a)(i), as
the case may be, and (ii) if such Eurocurrency Rate Advance or LIBO Rate Advance
is denominated in any Foreign Currency, be redenominated into an Equivalent
amount of Dollars and be Converted into a Base Rate Advance or an Advance that
bears interest at the rate set forth in Section 2.07(a)(i), as the case may be,
and (b) the obligation of the Lenders to make Eurocurrency Rate Advances or LIBO
Rate Advances or to Convert Revolving Credit Advances into Eurocurrency Rate
Advances shall be suspended until the Agent shall notify the Borrower and the
Lenders that the circumstances causing such suspension no longer exist.

     SECTION 2.13. Payments and Computations. (a) The Borrower shall make each
payment hereunder, except with respect to principal of, interest on, and other
amounts relating to, Advances denominated in a Foreign Currency, not later than
11:00 A.M. (New York City time) on the day when due in Dollars to the Agent at
the applicable Agent's Account in same day funds. The Borrower shall make each
payment hereunder with respect to principal of, interest on, and other amounts
relating to, Advances denominated in a Foreign Currency, not later than 11:00
A.M. (at the Payment Office for such Foreign Currency) on the day when due in
such Foreign Currency to the Agent, by deposit of such funds to the applicable
Agent's Account in same day funds. The Agent will promptly thereafter cause to
be distributed like funds relating to the payment of principal or interest or
facility fees ratably (other than amounts payable pursuant to Section 2.03,
2.11, 2.14 or 8.04(c)) to the Lenders for the account of their respective
Applicable Lending Offices, and like funds relating to the payment of any other
amount payable to any Lender to such Lender for the account of its Applicable
Lending Office, in each case to be applied in accordance with the terms of this
Agreement. Upon any Assuming Lender becoming a Lender hereunder as a result of
an extension of the Termination Date pursuant to Section 2.18, and upon the
Agent's receipt of such Lender's Assumption Agreement and recording of the
information contained therein in the Register, from and after the applicable
Extension Date, the Agent shall make all payments hereunder and under any Notes
issued in connection therewith in respect of the interest assumed thereby to the
Assuming Lender. Upon its acceptance of an Assignment

                                       19
<PAGE>

and Acceptance and recording of the information contained therein in the
Register pursuant to Section 8.07(c), from and after the effective date
specified in such Assignment and Acceptance, the Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to the
Lender assignee thereunder, and the parties to such Assignment and Acceptance
shall make all appropriate adjustments in such payments for periods prior to
such effective date directly between themselves.

     (b) The Borrower hereby authorizes each Lender, if and to the extent
payment owed to such Lender is not made when due hereunder or under the Note
held by such Lender, to charge from time to time against any or all of the
Borrower's accounts with such Lender any amount so due. Each Lender that charges
an account of the Borrower in accordance with this Section agrees to promptly so
notify the Borrower, provided that the failure to give such notice shall not
affect the validity of such charge.

     (c) All computations of interest based on the Base Rate shall be made by
the Agent on the basis of a year of 365 or 366 days, as the case may be, all
computations of interest based on the Eurocurrency Rate or the Federal Funds
Rate and of facility fees shall be made by the Agent on the basis of a year of
360 days and computations in respect of Competitive Bid Advances shall be made
by the Agent or the Sub-Agent, as the case may be, as specified in the
applicable Notice of Competitive Bid Borrowing (or, in each case of Advances
denominated in Foreign Currencies where market practice differs, in accordance
with market practice), in each case for the actual number of days (including the
first day but excluding the last day) occurring in the period for which such
interest or facility fees are payable. Each determination by the Agent of an
interest rate hereunder shall be conclusive and binding for all purposes, absent
manifest error.

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

     (e) Unless the Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Lenders hereunder that the Borrower
will not make such payment in full, the Agent may assume that the Borrower has
made such payment in full to the Agent on such date and the Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender. If and to the
extent the Borrower shall not have so made such payment in full to the Agent,
each Lender shall repay to the Agent forthwith on demand such amount distributed
to such Lender together with interest thereon, for each day from the date such
amount is distributed to such Lender until the date such Lender repays such
amount to the Agent, at (i) the Federal Funds Rate in the case of Advances
denominated in Dollars or (ii) the cost of funds incurred by the Agent in
respect of such amount in the case of Advances denominated in Foreign
Currencies.

     SECTION 2.14. Taxes. (a) Any and all payments by the Borrower hereunder or
under the Notes shall be made, in accordance with Section 2.13, free and clear
of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding, in the case of each Lender and the Agent, taxes imposed on
its overall net income, and franchise taxes imposed on it in lieu of net income
taxes, by the jurisdictions in which such Lender or the Agent (as the case may
be) is otherwise subject to tax (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes being hereinafter referred to as "Taxes"). If the
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under any Note to any Lender or the Agent, (i) the sum
payable shall be increased as may be necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.14) such Lender or the Agent (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrower shall make such deductions and (iii) the Borrower shall pay
the full amount deducted to the relevant taxation authority or other authority
in accordance with applicable law.

     (b) In addition, the Borrower shall pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies that arise from any payment made hereunder or under

                                       20
<PAGE>

the Notes or from the execution, delivery or registration of, performing under,
or otherwise with respect to, this Agreement or the Notes (hereinafter referred
to as "Other Taxes").

     (c) The Borrower shall indemnify each Lender and the Agent for and hold it
harmless against the full amount of Taxes or Other Taxes (including, without
limitation, taxes of any kind imposed by any jurisdiction on amounts payable
under this Section 2.14) imposed on or paid by such Lender or the Agent (as the
case may be) and any liability (including penalties, interest and expenses not
incurred by reason of gross negligence or willful misconduct on the part of such
Lender or the Agent) arising therefrom or with respect thereto. This
indemnification shall be made within 30 days from the date such Lender or the
Agent (as the case may be) makes written demand therefor.

     (d) Within 30 days after the date of any payment of Taxes, the Borrower
shall furnish to the Agent, at its address referred to in Section 8.02(a), the
original or a certified copy of a receipt evidencing such payment. In the case
of any payment hereunder or under the Notes by or on behalf of the Borrower
through an account or branch outside the United States or by or on behalf of the
Borrower by a payor that is not a United States person, if the Borrower
determines that no Taxes are payable in respect thereof, the Borrower shall
furnish, or shall cause such payor to furnish, to the Agent, at such address, an
opinion of counsel as requested by and acceptable to the Agent stating that such
payment is exempt from Taxes. For purposes of this subsection (d) and subsection
(e), the terms "United States" and "United States person" shall have the
meanings specified in Section 7701 of the Internal Revenue Code.

     (e) Each Lender organized under the laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assumption
Agreement or the Assignment and Acceptance pursuant to which it becomes a Lender
in the case of each other Lender, and from time to time thereafter as requested
in writing by the Borrower (but only so long as such Lender remains lawfully
able to do so), shall provide each of the Agent and the Borrower with two
original Internal Revenue Service forms 1001 or 4224, as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender is exempt from or entitled to a reduced rate of United States
withholding tax on payments pursuant to this Agreement or the Notes. If the form
provided by a Lender at the time such Lender first becomes a party to this
Agreement indicates a United States interest withholding tax rate in excess of
zero, withholding tax at such rate shall be considered excluded from Taxes
unless and until such Lender provides the appropriate forms certifying that a
lesser rate applies, whereupon withholding tax at such lesser rate only shall be
considered excluded from Taxes for periods governed by such form; provided,
however, that, if at the date of the Assignment and Acceptance pursuant to which
a Lender assignee becomes a party to this Agreement, the Lender assignor was
entitled to payments under subsection (a) in respect of United States
withholding tax with respect to interest paid at such date, then, to such
extent, the term Taxes shall include (in addition to withholding taxes that may
be imposed in the future or other amounts otherwise includable in Taxes) United
States withholding tax, if any, applicable with respect to the Lender assignee
on such date. In addition, each Lender agrees that from time to time after the
Effective Date, when a change in circumstances renders the previous
certification obsolete or inaccurate in any material respect, it will deliver to
the Borrower and the Agent two new accurate and complete original signed copies
of Internal Revenue Service Form 4224 or 1001, as the case may be, and such
other forms as may be required in order to confirm or establish the entitlement
of such Lender to a continued exemption from or reduction in United States
withholding tax with respect to payments under this Agreement or any Note,
unless any change in treaty, law or regulation has occurred after the date such
Lender becomes a party hereunder which renders all such forms inapplicable or
which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Borrower and the Agent.
If any form or document referred to in this subsection (e) requires the
disclosure of information, other than information necessary to compute the tax
payable and information required on the date hereof by Internal Revenue Service
form 1001 or 4224, that the Lender reasonably considers to be confidential, the
Lender shall give notice thereof to the Borrower and shall not be obligated to
include in such form or document such confidential information.

     (f) Each Initial Lender hereby confirms as of the Effective Date, and each
other Lender confirms as of the effective date of the Assignment and Acceptance
pursuant to which it becomes a party hereto, in favor of the Agent and the
Borrower that either (i) such Lender is not resident in the United Kingdom and
is beneficially entitled to the

                                       21
<PAGE>

Advances and the interest thereon or (ii) it is a bank as defined for the
purposes of Section 349 of the Income and Corporation Taxes Act of 1988 of the
United Kingdom and is beneficially entitled to the Advances and the interest
thereon, and each Lender agrees to notify the Agent if there is any change in
its position from that set forth in this clause (f).

     (g) For any period with respect to which a Lender has failed to provide the
Borrower with the appropriate form described in Section 2.14(e) (other than if
such failure is due to a change in law occurring subsequent to the date on which
a form originally was required to be provided, or if such form otherwise is not
required under subsection (e) above), such Lender shall not be entitled to
indemnification under Section 2.14(a) or (c) with respect to Taxes imposed by
the United States by reason of such failure; provided, however, that should a
Lender become subject to Taxes because of its failure to deliver a form required
hereunder, the Borrower shall take such steps as the Lender shall reasonably
request to assist the Lender to recover such Taxes.

     (h) Any Lender claiming any additional amounts payable pursuant to this
Section 2.14 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
Eurocurrency Lending Office if the making of such a change would avoid the need
for, or reduce the amount of, any such additional amounts that may thereafter
accrue and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.

     SECTION 2.15. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Revolving Credit Advances owing to it
(other than pursuant to Section 2.11, 2.14 or 8.04(c)) in excess of its ratable
share of payments on account of the Revolving Credit Advances obtained by all
the Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Revolving Credit Advances owing to them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion of such excess
payment is thereafter recovered from such purchasing Lender, such purchase from
each Lender shall be rescinded and such Lender shall repay to the purchasing
Lender the purchase price to the extent of such recovery together with an amount
equal to such Lender's ratable share (according to the proportion of (i) the
amount of such Lender's required repayment to (ii) the total amount so recovered
from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered. The Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 2.15 may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off) with respect
to such participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.

     SECTION 2.16. Evidence of Debt. (a) Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Revolving Credit
Advance owing to such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder in respect of Revolving Credit Advances. The Borrower agrees that upon
notice by any Lender to the Borrower (with a copy of such notice to the Agent)
to the effect that a Revolving Credit Note is required or appropriate in order
for such Lender to evidence (whether for purposes of a permitted pledge,
enforcement or otherwise) the Revolving Credit Advances owing to, or to be made
by, such Lender, the Borrower shall promptly execute and deliver to such Lender
a Revolving Credit Note payable to the order of such Lender in a principal
amount up to the Commitment of such Lender.

     (b) The Register maintained by the Agent pursuant to Section 8.07(d) shall
include a control account, and a subsidiary account for each Lender, in which
accounts (taken together) shall be recorded (i) the date and amount of each
Borrowing made hereunder, the Type of Advances comprising such Borrowing and, if
appropriate, the Interest Period applicable thereto, (ii) the terms of each
Assumption Agreement and each Assignment and Acceptance delivered to and
accepted by it, (iii) the amount of any principal or interest due and payable or
to become due and payable from the Borrower to each Lender hereunder and (iv)
the amount of any sum received by the Agent from the Borrower hereunder and each
Lender's share thereof.

     (c) Entries made in good faith by the Agent in the Register pursuant to
subsection (b) above, and by each Lender in its account or accounts pursuant to
subsection (a) above, shall be prima facie evidence of the amount of principal
and interest due and payable or to become due and payable from the Borrower to,
in the case of the Register, each Lender and, in the case of such account or
accounts, such Lender, under this Agreement, absent manifest error; provided,
however, that the failure of the Agent or such Lender to make an entry, or any
finding that

                                       22
<PAGE>

an entry is incorrect, in the Register or such account or accounts shall not
limit or otherwise affect the obligations of the Borrower under this Agreement.

     SECTION 2.17. Use of Proceeds. The proceeds of the Advances shall be
available (and the Borrower agrees that it shall use such proceeds) solely for
general corporate purposes of the Borrower and its Subsidiaries.

     SECTION 2.18. Extension of Termination Date. (a) At least 30 days but not
more than 45 days prior to the Termination Date, the Borrower, by written notice
to the Agent, may request an extension of the Termination Date in effect at such
time by 364 days from its then scheduled expiration; provided, however, that the
Borrower shall not have made the Term Loan Election for Revolving Credit
Advances outstanding on such Termination Date prior to such time. The Agent
shall promptly notify each Lender of such request, and each Lender shall in
turn, in its sole discretion, not later than 20 days prior to the Termination
Date, notify the Borrower and the Agent in writing as to whether such Lender
will consent to such extension. If any Lender shall fail to notify the Agent and
the Borrower in writing of its consent to any such request for extension of the
Termination Date at least 20 days prior to the Termination Date, such Lender
shall be deemed to be a Non-Consenting Lender with respect to such request. The
Agent shall notify the Borrower not later than 15 days prior to the Termination
Date of the decision of the Lenders regarding the Borrower's request for an
extension of the Termination Date.

     (b) If all the Lenders consent in writing to any such request in accordance
with subsection (a) of this Section 2.18, the Termination Date in effect at such
time shall, effective as at the Termination Date (the "Extension Date"), be
extended for 364 days; provided that on each Extension Date the applicable
conditions set forth in Article III shall be satisfied. If less than all of the
Lenders consent in writing to any such request in accordance with subsection (a)
of this Section 2.18, the Termination Date in effect at such time shall,
effective as at the applicable Extension Date, be extended as to those Lenders
that so consented (each a "Consenting Lender") but shall not be extended as to
any other Lender (each a "Non-Consenting Lender"). To the extent that the
Termination Date is not extended as to any Lender pursuant to this Section 2.18
and the Commitment of such Lender is not assumed in accordance with subsection
(c) of this Section 2.18 on or prior to the applicable Extension Date, the
Commitment of such Non-Consenting Lender shall automatically terminate in whole
on such unextended Termination Date without any further notice or other action
by the Borrower, such Lender or any other Person; provided that such
Non-Consenting Lender's rights under Sections 2.11, 2.14 and 8.04, and its
obligations under Section 7.05, shall survive the Termination Date for such
Lender as to matters occurring prior to such date. It is understood and agreed
that no Lender shall have any obligation whatsoever to agree to any request made
by the Borrower for any requested extension of the Termination Date.

     (c) If less than all of the Lenders consent to any such request pursuant to
subsection (a) of this Section 2.18, the Agent shall promptly so notify the
Consenting Lenders, and each Consenting Lender may, in its sole discretion, give
written notice to the Agent not later than 10 days prior to the Termination Date
of the amount of the Non-Consenting Lenders' Commitments for which it is willing
to accept an assignment. If the Consenting Lenders notify the Agent that they
are willing to accept assignments of Commitments in an aggregate amount that
exceeds the amount of the Commitments of the Non-Consenting Lenders, such
Commitments shall be allocated among the Consenting Lenders willing to accept
such assignments in such amounts as are agreed between the Borrower and the
Agent. If after giving effect to the assignments of Commitments described above
there remains any Commitments of Non-Consenting Lenders, the Borrower may
arrange for one or more Consenting Lenders or other Eligible Assignees (each, an
"Assuming Lender") to assume by execution of an assumption agreement in form and
substance satisfactory to the Borrower and the Agent (each, an "Assumption
Agreement"), effective as of the Extension Date, any Non-Consenting Lender's
remaining Commitment and all of the obligations of such Non-Consenting Lender
under this Agreement thereafter arising, without recourse to or warranty by, or
expense to, such Non-Consenting Lender; provided, however, that the amount of
the Commitment of any such Assuming Lender as a result of such substitution
shall in no event be less than $10,000,000 unless the amount of the Commitment
of such Non-Consenting Lender is less than $10,000,000, in which case such
Assuming Lender shall assume all of such lesser amount; and provided further
that:

          (i) any such Consenting Lender or Assuming Lender shall have paid to
     such Non-Consenting Lender (A) the aggregate principal amount of, and any
     interest accrued and unpaid to the effective date of the assignment on, the
     outstanding Advances, if any, of such Non-Consenting Lender plus

                                       23
<PAGE>

     (B) any accrued but unpaid facility fees owing to such Non-Consenting
     Lender as of the effective date of such assignment;

          (ii) all additional costs reimbursements, expense reimbursements and
     indemnities payable to such Non-Consenting Lender, and all other accrued
     and unpaid amounts owing to such Non-Consenting Lender hereunder, as of the
     effective date of such assignment shall have been paid to such
     Non-Consenting Lender; and

          (iii) with respect to any such Assuming Lender, the applicable
     processing and recordation fee required under Section 8.07(a) for such
     assignment shall have been paid;

provided further that such Non-Consenting Lender's rights under Sections 2.11,
2.14 and 8.04, and its obligations under Section 7.05, shall survive such
substitution as to matters occurring prior to the date of substitution and at
least three Business Days prior to any Extension Date, (A) each such Assuming
Lender, if any, shall have delivered to the Borrower and the Agent an Assumption
Agreement, duly executed by such Assuming Lender, such Non-Consenting Lender,
the Borrower and the Agent, (B) any such Consenting Lender shall have delivered
confirmation in writing satisfactory to the Borrower and the Agent as to the
increase in the amount of its Commitment and (C) each Non-Consenting Lender
being replaced pursuant to this Section 2.18 shall have delivered to the Agent
any Note or Notes held by such Non-Consenting Lender. Upon the payment or
prepayment of all amounts referred to in clauses (i), (ii) and (iii) of the
immediately preceding sentence, each such Consenting Lender or Assuming Lender,
as of the Extension Date, will be substituted for such Non-Consenting Lender
under this Agreement and shall be a Lender for all purposes of this Agreement,
without any further acknowledgment by or the consent of the other Lenders, and
the obligations of each such Non-Consenting Lender hereunder shall, by the
provisions hereof, be released and discharged.

     (d) If Lenders holding Commitments equal to not less than 50% of the
Commitments outstanding immediately prior to the Extension Date (after giving
effect to any assignments pursuant to subsection (b) of this Section 2.18)
consent in writing to a requested extension (whether by execution or delivery of
an Assumption Agreement or otherwise) not later than one Business Day prior to
such Extension Date, the Agent shall so notify the Borrower, and, so long as no
Default shall have occurred and be continuing as of such Extension Date, or
shall occur as a consequence thereof, the Termination Date then in effect shall
be extended for the additional one-year period as described in subsection (a) of
this Section 2.18, and all references in this Agreement, and in the Notes, if
any, to the "Termination Date" shall, with respect to each Consenting Lender and
each Assuming Lender for such Extension Date, refer to the Termination Date as
so extended. Promptly following each Extension Date, the Agent shall notify the
Lenders (including, without limitation, each Assuming Lender) of the extension
of the scheduled Termination Date in effect immediately prior thereto and shall
thereupon record in the Register the relevant information with respect to each
such Consenting Lender and each such Assuming Lender.

                                   ARTICLE III

                     CONDITIONS TO EFFECTIVENESS AND LENDING

     SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and
2.03. Sections 2.01 and 2.03 of this Agreement shall become effective on and as
of the first date (the "Effective Date") on which the following conditions
precedent have been satisfied:

          (a) There shall have occurred no Material Adverse Change since
     December 31, 2002.

          (b) There shall exist no action, suit, investigation, litigation or
     proceeding affecting the Borrower or any of its Subsidiaries pending or
     threatened before any court, governmental agency or arbitrator that (i)
     would be reasonably likely to have a Material Adverse Effect other than the
     matters described on Schedule 3.01(b) hereto (the "Disclosed Litigation")
     or (ii) purports to affect the legality, validity or enforceability of this
     Agreement or any Note or the consummation of the transactions contemplated
     hereby, and there shall have been no adverse change in the status, or
     financial effect on the

                                       24
<PAGE>

     Borrower or any of its Subsidiaries, of the Disclosed Litigation from that
     described on Schedule 3.01(b) hereto.

          (c) Nothing shall have come to the attention of the Lenders during the
     course of their due diligence investigation to lead them to believe that
     the Information Memorandum was or has become misleading, incorrect or
     incomplete in any material respect; without limiting the generality of the
     foregoing, the Lenders shall have been given such access to the management,
     records, books of account, contracts and properties of the Borrower and its
     Subsidiaries as they shall have reasonably requested.

          (d) All governmental and third party consents and approvals necessary
     in connection with the transactions contemplated hereby shall have been
     obtained (without the imposition of any conditions that are not acceptable
     to the Lenders) and shall remain in effect, and no law or regulation shall
     be applicable in the reasonable judgment of the Lenders that restrains,
     prevents or imposes materially adverse conditions upon the transactions
     contemplated hereby.

          (e) The Borrower shall have notified each Lender and the Agent in
     writing as to the proposed Effective Date.

          (f) The Borrower shall have paid all accrued fees and expenses of the
     Agent and the Lenders (including the accrued fees and expenses of counsel
     to the Agent).

          (g) On the Effective Date, the following statements shall be true and
     the Agent shall have received for the account of each Lender a certificate
     signed by a duly authorized officer of the Borrower, dated the Effective
     Date, stating that:

               (i) The representations and warranties contained in Section 4.01
          are correct on and as of the Effective Date, and

               (ii) No event has occurred and is continuing that constitutes a
          Default.

          (h) The Agent shall have received on or before the Effective Date the
     following, each dated such day, in form and substance satisfactory to the
     Agent and (except for the Revolving Credit Notes) in sufficient copies for
     each Lender:

               (i) The Revolving Credit Notes to the order of the Lenders to the
          extent requested by any Lender pursuant to Section 2.16.

               (ii) Certified copies of the resolutions of the Board of
          Directors of the Borrower approving this Agreement and the Notes, and
          of all documents evidencing other necessary corporate action and
          governmental approvals, if any, with respect to this Agreement and the
          Notes.

               (iii) A certificate of the Secretary or an Assistant Secretary of
          the Borrower certifying the names and true signatures of the officers
          of the Borrower authorized to sign this Agreement and the Notes and
          the other documents to be delivered hereunder.

               (iv) A favorable opinion of Susan F. Marrinan, General Counsel of
          the Borrower, and a favorable opinion of Foley & Lardner, counsel to
          the Borrower, substantially in the form of Exhibit D-1 and Exhibit D-2
          hereto, respectively, and as to such other matters as any Lender
          through the Agent may reasonably request.

               (v) A favorable opinion of Shearman & Sterling LLP, counsel for
          the Agent, in form and substance satisfactory to the Agent.

                                       25
<PAGE>

     SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing and
Extension Date. The obligation of each Lender to make a Revolving Credit Advance
on the occasion of each Revolving Credit Borrowing and each extension of
Commitments pursuant to Section 2.18 shall be subject to the conditions
precedent that the Effective Date shall have occurred and on the date of such
Revolving Credit Borrowing or the applicable Extension Date (a) the following
statements shall be true (and each of the giving of the applicable Notice of
Revolving Credit Borrowing, request for Commitment Extension and the acceptance
by the Borrower of the proceeds of such Revolving Credit Borrowing shall
constitute a representation and warranty by the Borrower that on the date of
such Borrowing or such Extension Date such statements are true):

          (i) the representations and warranties contained in Section 4.01
     (except, in the case of Revolving Credit Borrowings, the representations
     set forth in the last sentence of subsection (e) thereof and in subsection
     (f)(i) thereof) are correct on and as of such date, before and after giving
     effect to such Revolving Credit Borrowing or such Extension Date and to the
     application of the proceeds therefrom, as though made on and as of such
     date,

          (ii) no event has occurred and is continuing, or would result from
     such Revolving Credit Borrowing, such Extension Date or from the
     application of the proceeds therefrom, that constitutes a Default, and

          (iii) after giving effect to such Revolving Credit Borrowing, the
     aggregate amount of the Borrower's Debt (not including other transactions
     relating to Snap-on Credit LLC) from any bank or financial institution or
     under any commercial paper facility or debt securities or securitization
     program outstanding will not exceed $550,000,000 or, if greater, the amount
     authorized by resolutions of the Board of Directors in effect on the date
     of such Revolving Credit Borrowing;

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

     SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing. The
obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (i) the Agent shall have received the written confirmatory Notice of
Competitive Bid Borrowing with respect thereto, (ii) on or before the date of
such Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing, the
Agent shall have received a Competitive Bid Note payable to the order of such
Lender for each of the one or more Competitive Bid Advances to be made by such
Lender as part of such Competitive Bid Borrowing, in a principal amount equal to
the principal amount of the Competitive Bid Advance to be evidenced thereby and
otherwise on such terms as were agreed to for such Competitive Bid Advance in
accordance with Section 2.03, and (iii) on the date of such Competitive Bid
Borrowing the following statements shall be true (and each of the giving of the
applicable Notice of Competitive Bid Borrowing and the acceptance by the
Borrower of the proceeds of such Competitive Bid Borrowing shall constitute a
representation and warranty by the Borrower that on the date of such Competitive
Bid Borrowing such statements are true):

          (a) the representations and warranties contained in Section 4.01 are
     correct on and as of the date of such Competitive Bid Borrowing, before and
     after giving effect to such Competitive Bid Borrowing and to the
     application of the proceeds therefrom, as though made on and as of such
     date,

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

          (c) no event has occurred and no circumstance exists as a result of
     which the information concerning the Borrower that has been provided to the
     Agent and each Lender by the Borrower in connection herewith would include
     an untrue statement of a material fact or omit to state any material fact
     or any fact necessary to make the statements contained therein, in the
     light of the circumstances under which they were made, not misleading, and

                                       26
<PAGE>

          (d) after giving effect to such Competitive Bid Borrowing, the
     aggregate amount of the Borrower's Debt (not including other transactions
     relating to Snap-on Credit LLC) from any bank or financial institution or
     under any commercial paper facility or debt securities or securitization
     program outstanding will not exceed $550,000,000 or, if greater, the amount
     authorized by resolutions of the Board of Directors in effect on the date
     of such Competitive Bid Borrowing;.

     SECTION 3.04. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Agent responsible for the transactions contemplated by this Agreement
shall have received notice from such Lender prior to the date that the Borrower,
by notice to the Lenders, designates as the proposed Effective Date, specifying
its objection thereto. The Agent shall promptly notify the Lenders of the
occurrence of the Effective Date.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

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

          (a) The Borrower is a corporation duly organized, validly existing and
     in good standing under the laws of the State of Delaware.

          (b) The execution, delivery and performance by the Borrower of this
     Agreement and the Notes to be delivered by it, and the consummation of the
     transactions contemplated hereby, are within the Borrower's corporate
     powers, have been duly authorized by all necessary corporate action, and do
     not contravene (i) the Borrower's charter or by-laws or (ii) law or any
     contractual restriction binding on or affecting the Borrower.

          (c) No authorization or approval or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or any other
     third party is required as a condition to the due execution, delivery and
     performance by the Borrower of this Agreement or the Notes to be delivered
     by it.

          (d) This Agreement has been, and each of the Notes to be delivered by
     it when delivered hereunder will have been, duly executed and delivered by
     the Borrower. This Agreement is, and each of the Notes when delivered
     hereunder will be, the legal, valid and binding obligation of the Borrower
     enforceable against the Borrower in accordance with their respective terms.

          (e) The Consolidated balance sheet of the Borrower and its
     Subsidiaries as at December 31, 2002, and the related Consolidated
     statements of income and cash flows of the Borrower and its Subsidiaries
     for the fiscal year then ended, accompanied by an opinion of Deloitte &
     Touche LLP, independent public accountants, and the Consolidated balance
     sheet of the Borrower and its Subsidiaries as at June 30, 2003, and the
     related Consolidated statements of income and cash flows of the Borrower
     and its Subsidiaries for the six months then ended, duly certified by the
     chief financial officer of the Borrower, copies of which have been
     furnished to each Lender, fairly present, subject, in the case of said
     balance sheet as at June 30, 2003, and said statements of income and cash
     flows for the six months then ended, to year-end audit adjustments, the
     Consolidated financial condition of the Borrower and its Subsidiaries as at
     such dates and the Consolidated results of the operations of the Borrower
     and its Subsidiaries for the periods ended on such dates, all in accordance
     with generally accepted accounting principles consistently applied. Since
     December 31, 2002, there has been no Material Adverse Change.

          (f) There is no pending or threatened action, suit, investigation,
     litigation or proceeding, including, without limitation, any Environmental
     Action, affecting the Borrower or any of its Subsidiaries

                                       27
<PAGE>

     before any court, governmental agency or arbitrator that (i) would be
     reasonably likely to have a Material Adverse Effect (other than the
     Disclosed Litigation) or (ii) purports to affect the legality, validity or
     enforceability of this Agreement or any Note or the consummation of the
     transactions contemplated hereby, and there has been no materially adverse
     change in the status, or financial effect on the Borrower or any of its
     Subsidiaries, of the Disclosed Litigation from that described on Schedule
     3.01(b) hereto.

          (g) The Borrower is not engaged in the business of extending credit
     for the purpose of purchasing or carrying margin stock (within the meaning
     of Regulation U issued by the Board of Governors of the Federal Reserve
     System), and no proceeds of any Advance will be used to purchase or carry
     any margin stock or to extend credit to others for the purpose of
     purchasing or carrying any margin stock.

          (h) The Borrower is not an "investment company", or a company
     "controlled" by an "investment company", within the meaning of the
     Investment Company Act of 1940, as amended.

                                    ARTICLE V

                            COVENANTS OF THE BORROWER

     SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will:

          (a) Compliance with Laws, Etc. Comply, and cause each of its
     Subsidiaries to comply, in all material respects, with all applicable and
     material laws, rules, regulations and orders, such compliance to include,
     without limitation, compliance with ERISA and Environmental Laws.

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

          (c) Maintenance of Insurance. Maintain, and cause each of its
     Subsidiaries to maintain, insurance with responsible and reputable
     insurance companies or associations in such amounts and covering such risks
     as is usually carried by companies engaged in similar businesses and owning
     similar properties in the same general areas in which the Borrower or such
     Subsidiary operates; provided, however, that the Borrower and its
     Subsidiaries may self-insure to the same extent as other companies engaged
     in similar businesses and owning similar properties in the same general
     areas in which the Borrower or such Subsidiary operates and to the extent
     consistent with prudent business practice.

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

          (e) Visitation Rights. At any reasonable time and from time to time
     and, so long as no Default has occurred and is continuing, upon reasonable
     notice, permit the Agent or any of the Lenders or any agents or
     representatives thereof, to examine and make copies of and abstracts from
     the records and

                                       28
<PAGE>

     books of account of, and visit the properties of, the Borrower and any of
     its Subsidiaries, and to discuss the affairs, finances and accounts of the
     Borrower and any of its Subsidiaries with any of their officers or
     directors and with their independent certified public accountants.

          (f) Keeping of Books. Keep, and cause each of its Subsidiaries to
     keep, proper books of record and account, in which full and correct entries
     shall be made of all financial transactions and the assets and business of
     the Borrower and each such Subsidiary in accordance with generally accepted
     accounting principles in effect from time to time.

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

          (h) Transactions with Affiliates. Conduct, and cause each of its
     Subsidiaries to conduct, all transactions otherwise permitted under this
     Agreement with any of their Affiliates on terms that are fair and
     reasonable and no less favorable to the Borrower or such Subsidiary than it
     would obtain in a comparable arm's-length transaction with a Person not an
     Affiliate, provided that the Borrower and its Subsidiaries may transact
     business with Snap-On Credit LLC on a basis consistent with past practice.

          (i) Reporting Requirements. Furnish to the Agent:

               (i) as soon as available and in any event within 60 days after
          the end of each of the first three quarters of each fiscal year of the
          Borrower, the Consolidated balance sheet of the Borrower and its
          Subsidiaries as of the end of such quarter and Consolidated statements
          of income and cash flows of the Borrower and its Subsidiaries for the
          period commencing at the end of the previous fiscal year and ending
          with the end of such quarter, duly certified (subject to year-end
          audit adjustments) by the chief financial officer or treasurer of the
          Borrower as having been prepared in accordance with generally accepted
          accounting principles and certificates of the chief financial officer
          or treasurer of the Borrower as to compliance with the terms of this
          Agreement and setting forth in reasonable detail the calculations
          necessary to demonstrate compliance with Section 5.03, provided that
          in the event of any change in GAAP used in the preparation of such
          financial statements, the Borrower shall also provide, if necessary
          for the determination of compliance with Section 5.03, a statement of
          reconciliation conforming such financial statements to GAAP;

               (ii) as soon as available and in any event within 120 days after
          the end of each fiscal year of the Borrower, a copy of the annual
          audit report for such year for the Borrower and its Subsidiaries,
          containing the Consolidated balance sheet of the Borrower and its
          Subsidiaries as of the end of such fiscal year and Consolidated
          statements of income and cash flows of the Borrower and its
          Subsidiaries for such fiscal year, in each case accompanied by an
          opinion acceptable to the Required Lenders by Deloitte & Touche LLP or
          other independent public accountants acceptable to the Required
          Lenders, provided that in the event of any change in GAAP used in the
          preparation of such financial statements, the Borrower shall also
          provide, if necessary for the determination of compliance with Section
          5.03, a statement of reconciliation conforming such financial
          statements to GAAP;

               (iii) as soon as possible and in any event within five days after
          the occurrence of each Default continuing on the date of such
          statement, a statement of the chief financial officer or treasurer of
          the Borrower setting forth details of such Default and the action that
          the Borrower has taken and proposes to take with respect thereto;

               (iv) promptly after the sending or filing thereof, copies of all
          reports that the Borrower sends to any of its securityholders as such,
          and copies of all reports and registration

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<PAGE>

          statements that the Borrower or any Subsidiary files with the
          Securities and Exchange Commission or any national securities
          exchange;

               (v) promptly after the commencement thereof, notice of all
          actions and proceedings before any court, governmental agency or
          arbitrator affecting the Borrower or any of its Subsidiaries of the
          type described in Section 4.01(f);

               (vi) promptly after the adoption thereof, notice of the increased
          amount of the Borrower's Debt (not including other transactions
          relating to Snap-on Credit LLC) from any bank or financial institution
          or under any commercial paper facility or debt securities or
          securitization program authorized to be outstanding, together with
          certified copies of the resolutions of the Board of Directors of the
          Borrower approving such increase; and

               (vii) such other information respecting the Borrower or any of
          its Subsidiaries as any Lender through the Agent may from time to time
          reasonably request.

     SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will not:

          (a) Liens, Etc. Create or suffer to exist, or permit any of its
     Subsidiaries to create or suffer to exist, any Lien on or with respect to
     any of its properties, whether now owned or hereafter acquired, or assign,
     or permit any of its Subsidiaries to assign, any right to receive income,
     other than:

               (i) Permitted Liens,

               (ii) purchase money Liens upon or in any real property or
          equipment acquired or held by the Borrower or any Subsidiary in the
          ordinary course of business to secure the purchase price of such
          property or equipment or to secure Debt incurred solely for the
          purpose of financing the acquisition of such property or equipment, or
          Liens existing on such property or equipment at the time of its
          acquisition (other than any such Liens created in contemplation of
          such acquisition that were not incurred to finance the acquisition of
          such property) or extensions, renewals or replacements of any of the
          foregoing for the same or a lesser amount, provided, however, that no
          such Lien shall extend to or cover any properties of any character
          other than the real property or equipment being acquired, and no such
          extension, renewal or replacement shall extend to or cover any
          properties not theretofore subject to the Lien being extended, renewed
          or replaced, provided further that the aggregate principal amount of
          the indebtedness secured by the Liens referred to in this clause (ii)
          shall not exceed $25,000,000,

               (iii) the Liens existing on the Effective Date and described on
          Schedule 5.02(a) hereto,

               (iv) Liens on property of a Person existing at the time such
          Person is merged into or consolidated with the Borrower or any
          Subsidiary of the Borrower or becomes a Subsidiary of the Borrower;
          provided that such Liens were not created in contemplation of such
          merger, consolidation or acquisition and do not extend to any assets
          other than those of the Person so merged into or consolidated with the
          Borrower or such Subsidiary or acquired by the Borrower or such
          Subsidiary,

               (v) other Liens securing Debt in an aggregate principal amount
          not to exceed $50,000,000 at any time outstanding,

               (vi) sales of accounts receivable arising in connection a
          transaction described in the proviso to the definition of "Debt" in
          Section 1.01, and

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<PAGE>

               (vii) the replacement, extension or renewal of any Lien permitted
          by clause (iii) or (iv) above upon or in the same property theretofore
          subject thereto or the replacement, extension or renewal (without
          increase in the amount or change in any direct or contingent obligor)
          of the Debt secured thereby.

          (b) Mergers, Etc. Merge or consolidate with or into, or convey,
     transfer, lease or otherwise dispose of (whether in one transaction or in a
     series of transactions) all or substantially all of its assets (whether now
     owned or hereafter acquired) to, any Person, or permit any of its
     Subsidiaries to do so, except that (i) any Subsidiary of the Borrower may
     merge or consolidate with or into, or dispose of assets to, any other
     Subsidiary of the Borrower, (ii) any Subsidiary of the Borrower may merge
     into or dispose of assets to the Borrower and (iii) the Borrower may merge
     into a wholly owned Subsidiary of the Borrower that has no material assets
     or liabilities for the sole purpose of changing the state of incorporation
     of the Borrower if the surviving corporation shall expressly assume the
     liabilities of the Borrower under this Agreement and the Notes, provided,
     in each case, that no Default shall have occurred and be continuing at the
     time of such proposed transaction or would result therefrom.

          (c) Accounting Changes. Make or permit, or permit any of its
     Subsidiaries to make or permit, any change in accounting policies or
     reporting practices, except as required or permitted by generally accepted
     accounting principles.

          (d) Change in Nature of Business. Make, or permit any of its
     Subsidiaries to make, any material change in the nature of the business of
     the Borrower and its Subsidiaries taken as a whole as carried on at the
     date hereof.

     SECTION 5.03. Financial Covenant. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will
maintain a ratio of Consolidated Debt to the sum of Consolidated Debt plus
shareholders' equity of not greater than 0.60:1.00.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

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

          (a) The Borrower shall fail to pay any principal of any Advance when
     the same becomes due and payable; or the Borrower shall fail to pay any
     interest on any Advance or make any other payment of fees or other amounts
     payable under this Agreement or any Note within three Business Days after
     the same becomes due and payable; or

          (b) Any representation or warranty made by the Borrower herein or by
     the Borrower (or any of its officers) in connection with this Agreement
     shall prove to have been incorrect in any material respect when made; or

          (c) (i) The Borrower shall fail to perform or observe any term,
     covenant or agreement contained in Section 5.01(d), (e) or (i), 5.02 or
     5.03, or (ii) the Borrower shall fail to perform or observe any other term,
     covenant or agreement contained in this Agreement on its part to be
     performed or observed if such failure shall remain unremedied for 30 days
     after written notice thereof shall have been given to the Borrower by the
     Agent or any Lender; or

          (d) The Borrower or any of its Subsidiaries shall fail to pay any
     principal of or premium or interest on any Debt that is outstanding in a
     principal or net amount of at least $25,000,000 in the aggregate (but
     excluding Debt outstanding hereunder) of the Borrower or such Subsidiary
     (as the case may be), when the same becomes due and payable (whether by
     scheduled maturity, required prepayment, acceleration,

                                       31
<PAGE>

     demand or otherwise), and such failure shall continue after the applicable
     grace period, if any, specified in the agreement or instrument relating to
     such Debt; or any other event shall occur or condition shall exist under
     any agreement or instrument relating to any such Debt and shall continue
     after the applicable grace period, if any, specified in such agreement or
     instrument, if the effect of such event or condition is to accelerate, or
     to permit the acceleration of, the maturity of such Debt; or any such Debt
     shall be declared to be due and payable, or required to be prepaid or
     redeemed (other than by a regularly scheduled required prepayment or
     redemption), purchased or defeased, or an offer to prepay, redeem, purchase
     or defease such Debt shall be required to be made, in each case prior to
     the stated maturity thereof; or

          (e) The Borrower or any of its Subsidiaries shall generally not pay
     its debts as such debts become due, or shall admit in writing its inability
     to pay its debts generally, or shall make a general assignment for the
     benefit of creditors; or any proceeding shall be instituted by or against
     the Borrower or any of its Subsidiaries seeking to adjudicate it a bankrupt
     or insolvent, or seeking liquidation, winding up, reorganization,
     arrangement, adjustment, protection, relief, or composition of it or its
     debts under any law relating to bankruptcy, insolvency or reorganization or
     relief of debtors, or seeking the entry of an order for relief or the
     appointment of a receiver, trustee, custodian or other similar official for
     it or for any substantial part of its property and, in the case of any such
     proceeding instituted against it (but not instituted by it), either such
     proceeding shall remain undismissed or unstayed for a period of 60 days, or
     any of the actions sought in such proceeding (including, without
     limitation, the entry of an order for relief against, or the appointment of
     a receiver, trustee, custodian or other similar official for, it or for any
     substantial part of its property) shall occur; or the Borrower or any of
     its Subsidiaries shall take any corporate action to authorize any of the
     actions set forth above in this subsection (e); or

          (f) Judgments or orders for the payment of money in excess of
     $25,000,000 in the aggregate shall be rendered against the Borrower or any
     of its Subsidiaries with respect to which (i) enforcement proceedings shall
     have been commenced by any creditor upon such judgments or orders or (ii)
     there shall be any period of 10 consecutive days during which a stay of
     enforcement of such judgments or orders, by reason of a pending appeal or
     otherwise, shall not be in effect; provided, however, that any such
     judgment or order shall not be an Event of Default or included in the
     calculation of the aggregate amount of judgments or orders under this
     Section 6.01(f) if and for so long as (i) the amount of such judgment or
     order is covered by a valid and binding policy of insurance between the
     defendant and the insurer covering payment thereof and (ii) such insurer,
     which shall be rated at least "A" by A.M. Best Company, has been notified
     of, and has not disputed the claim made for payment of, the amount of such
     judgment or order; or

          (g) Any non-monetary judgment or order shall be rendered against the
     Borrower or any of its Subsidiaries that would be reasonably expected to
     have a Material Adverse Effect, and there shall be any period of 10
     consecutive days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise, shall not be in effect;
     or

          (h) (i) Any Person or two or more Persons acting in concert (other
     than any Related Person) shall have acquired beneficial ownership (within
     the meaning of Rule 13d-3 of the Securities and Exchange Commission under
     the Securities Exchange Act of 1934), directly or indirectly, of Voting
     Stock of the Borrower (or other securities convertible into such Voting
     Stock) representing 15% or more of the combined voting power of all Voting
     Stock of the Borrower; or (ii) during any period of up to 24 consecutive
     months, commencing after the date of this Agreement, individuals who at the
     beginning of such 24-month period were directors of the Borrower shall
     cease for any reason to constitute a majority of the board of directors of
     the Borrower; or (iii) any Person or two or more Persons acting in concert
     (other than any Related Person) shall have acquired by contract or
     otherwise, or shall have entered into a contract or arrangement that, upon
     consummation, will result in its or their acquisition of the power to
     exercise, directly or indirectly, a controlling influence over the
     management or policies of the Borrower; or

          (i) The Borrower or any of its ERISA Affiliates shall incur, or shall
     be reasonably likely to incur liability in excess of $25,000,000 in the
     aggregate as a result of one or more of the following: (i) the occurrence
     of any ERISA Event; (ii) the partial or complete withdrawal of the Borrower
     or any of its

                                       32
<PAGE>

     ERISA Affiliates from a Multiemployer Plan; or (iii) the reorganization or
     termination of a Multiemployer Plan;

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

                                   ARTICLE VII

                                    THE AGENT

     SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent by
the terms hereof, together with such powers and discretion as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding upon all Lenders
and all holders of Notes; provided, however, that the Agent shall not be
required to take any action that exposes the Agent to personal liability or that
is contrary to this Agreement or applicable law. The Agent agrees to give to
each Lender prompt notice of each notice given to it by the Borrower pursuant to
the terms of this Agreement.

     SECTION 7.02. Agent's Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Agent: (i) may treat the
Lender that made any Advance as the holder of the Debt resulting therefrom until
the Agent receives and accepts an Assumption Agreement entered into by an
Assuming Lender as provided in Section 2.18 or an Assignment and Acceptance
entered into by such Lender, as assignor, and an Eligible Assignee, as assignee,
as provided in Section 8.07; (ii) may consult with legal counsel (including
counsel for the Borrower), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (iii) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement on the part of the Borrower or to inspect the property (including the
books and records) of the Borrower; (v) shall not be responsible to any Lender
for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; and (vi) shall incur no liability under or in respect
of this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier, telegram or telex) believed
by it to be genuine and signed or sent by the proper party or parties.

     SECTION 7.03. Citibank and Affiliates. With respect to its Commitment, the
Advances made by it and the Note issued to it, Citibank shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though it were not the Agent; and the term "Lender" or "Lenders" shall,
unless otherwise expressly indicated, include Citibank in its individual
capacity. Citibank and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do

                                       33
<PAGE>

business with or own securities of the Borrower or any such Subsidiary, all as
if Citibank were not the Agent and without any duty to account therefor to the
Lenders.

     SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender and based
on the financial statements referred to in Section 4.01 and such other documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Agent or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement.

     SECTION 7.05. Indemnification. The Lenders agree to indemnify the Agent (to
the extent not reimbursed by the Borrower), ratably according to the respective
principal amounts of the Revolving Credit Advances then owed to each of them (or
if no Revolving Credit Advances are at the time outstanding, ratably according
to the respective amounts of their Commitments), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever that may be
imposed on, incurred by, or asserted against the Agent in any way relating to or
arising out of this Agreement or any action taken or omitted by the Agent under
this Agreement (collectively, the "Indemnified Costs"), provided that no Lender
shall be liable for any portion of the Indemnified Costs resulting from the
Agent's gross negligence or willful misconduct. Without limitation of the
foregoing, each Lender agrees to reimburse the Agent promptly upon demand for
its ratable share of any out-of-pocket expenses (including reasonable counsel
fees) incurred by the Agent in connection with the preparation, execution,
delivery, administration, modification, amendment or enforcement (whether
through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, to the extent that
the Agent is not reimbursed for such expenses by the Borrower. In the case of
any investigation, litigation or proceeding giving rise to any Indemnified
Costs, this Section 7.05 applies whether any such investigation, litigation or
proceeding is brought by the Agent, any Lender or a third party.

     SECTION 7.06. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrower and may be removed at any
time with or without cause by the Required Lenders. Upon any such resignation or
removal, the Required Lenders shall have the right to appoint a successor Agent
with the consent, not to be unreasonably withheld or delayed, of the Borrower so
long as no Default has occurred and is continuing. If no successor Agent shall
have been so appointed by the Required Lenders, and shall have accepted such
appointment, within 30 days after the retiring Agent's giving of notice of
resignation or the Required Lenders' removal of the retiring Agent, then the
retiring Agent may, on behalf of the Lenders and with the consent, not to be
unreasonably withheld or delayed, of the Borrower so long as no Default has
occurred and is continuing, appoint a successor Agent, which shall be a
commercial bank organized under the laws of the United States of America or of
any State thereof and having a combined capital and surplus of at least
$500,000,000. Upon the acceptance of any appointment as Agent hereunder by a
successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, discretion, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and
obligations under this Agreement. After any retiring Agent's resignation or
removal hereunder as Agent, the provisions of this Article VII shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.

     SECTION 7.07. Sub-Agent. The Sub-Agent has been designated under this
Agreement to carry out duties of the Agent. The Sub-Agent shall be subject to
each of the obligations in this Agreement to be performed by the Sub-Agent, and
each of the Borrower and the Lenders agrees that the Sub-Agent shall be entitled
to exercise each of the rights and shall be entitled to each of the benefits of
the Agent under this Agreement as relate to the performance of its obligations
hereunder.

     SECTION 7.08. Other Agents. Each Lender hereby acknowledges that neither
the syndication agent nor any other Lender designated as any "Co-Agent" on the
signature pages hereof has any liability hereunder other than in its capacity as
a Lender.

                                  ARTICLE VIII

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<PAGE>

                                  MISCELLANEOUS

     SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Revolving Credit Notes, nor consent to any departure by
the Borrower therefrom, shall in any event be effective unless the same shall be
in writing and signed by the Required Lenders, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no amendment, waiver or consent shall,
unless in writing and signed by all the Lenders, do any of the following: (a)
waive any of the conditions specified in Section 3.01, (b) increase the
Commitments of the Lenders or subject the Lenders to any additional obligations,
(c) reduce the principal of, or interest on, the Revolving Credit Advances or
any fees or other amounts payable hereunder, (d) postpone any date fixed for any
payment of principal of, or interest on, the Revolving Credit Advances or any
fees or other amounts payable hereunder, (e) change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Revolving Credit
Advances, or the number of Lenders, that shall be required for the Lenders or
any of them to take any action hereunder or (f) amend this Section 8.01; and
provided further that no amendment, waiver or consent shall, unless in writing
and signed by the Agent in addition to the Lenders required above to take such
action, affect the rights or duties of the Agent under this Agreement or any
Note.

     SECTION 8.02. Notices, Etc. (a) All notices and other communications
provided for hereunder shall be (x) in writing (including telecopier,
telegraphic or telex communication) and sent by reputable overnight courier,
telecopied, telegraphed, telexed or delivered or (y) as and to the extent set
forth in Section 8.02(b) and in the proviso to this Section 8.02(a), if to the
Borrower, at its address at 10801 Corporate Drive, Pleasant Prairie, Wisconsin
53158, Attention: Martin M. Ellen, Senior Vice President and Chief Financial
Officer, and Jeffrey F. Kostrzewa, Director Treasury Operations and Finance,
with copies to 10801 Corporate Drive, Pleasant Prairie, Wisconsin 53158,
Attention: Susan F. Marrinan, General Counsel; if to any Initial Lender, at its
Domestic Lending Office specified opposite its name on Schedule I hereto; if to
any other Lender, at its Domestic Lending Office specified in the Assumption
Agreement or the Assignment and Acceptance pursuant to which it became a Lender;
and if to the Agent, at its address at Two Penns Way, New Castle, Delaware
19720, Attention: Bank Loan Syndications Department; or, as to the Borrower or
the Agent, at such other address as shall be designated by such party in a
written notice to the other parties and, as to each other party, at such other
address as shall be designated by such party in a written notice to the Borrower
and the Agent, provided that materials required to be delivered pursuant to
Section 5.01(i)(i), (ii) or (iv) shall be delivered to the Agent as specified in
Section 8.02(b) or as otherwise specified to the Borrower by the Agent. All such
notices and communications shall, when mailed, telecopied, telegraphed or
e-mailed, be effective when deposited in the mails, telecopied, delivered to the
telegraph company or confirmed by e-mail, respectively, except that notices and
communications to the Agent pursuant to Article II, III or VII shall not be
effective until received by the Agent. Delivery by telecopier of an executed
counterpart of any amendment or waiver of any provision of this Agreement or the
Notes or of any Exhibit hereto to be executed and delivered hereunder shall be
effective as delivery of a manually executed counterpart thereof.

     (b) So long as Citibank or any of its Affiliates is the Agent,
notwithstanding anything to the contrary herein, materials required to be
delivered pursuant to Section 5.01(i)(i), (ii) and (iv) shall be delivered to
the Agent in an electronic medium in a format acceptable to the Agent and the
Lenders by e-mail at oploanswebadmin@citigroup.com. The Borrower agrees that the
Agent may make such materials, as well as any other written information,
documents, instruments and other material relating to the Borrower, any of its
Subsidiaries or any other materials or matters relating to this Agreement, the
Notes or any of the transactions contemplated hereby (collectively, the
"Communications") available to the Lenders by posting such Communications on
Intralinks, "e-Disclosure", the Agent's internet delivery system that is part of
Fixed Income Direct, Global Fixed Income's primary web portal, or a
substantially similar electronic system (the "Platform"). The Borrower
acknowledges that (i) the distribution of material through an electronic medium
is not necessarily secure and that there are confidentiality and other risks
associated with such distribution, (ii) the Platform is provided "as is" and "as
available" and (iii) neither the Agent nor any of its Affiliates warrants the
accuracy, adequacy or completeness of the Communications or the Platform and
each expressly disclaims liability for errors or omissions in the Communications
or the Platform. No warranty of any kind, express, implied or statutory,
including, without limitation, any warranty of merchantability, fitness for a
particular purpose, non-infringement of third party rights or freedom from
viruses or other code defects, is made by the Agent or any of its Affiliates in
connection with the Platform.

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<PAGE>

     (c) Each Lender agrees that any notice to it (as provided in the next
sentence) (a "Notice") specifying that any Communications have been posted to
the Platform shall constitute effective delivery of such information, documents
or other materials to such Lender for purposes of this Agreement; provided that
if requested by any Lender the Agent shall deliver a copy of the Communications
to such Lender by email or telecopier. Each Lender agrees (i) to notify the
Agent in writing of such Lender's e-mail address to which a Notice may be sent
by electronic transmission (including by electronic communication) on or before
the date such Lender becomes a party to this Agreement (and from time to time
thereafter to ensure that the Agent has on record an effective e-mail address
for such Lender) and (ii) that any Notice may be sent to such e-mail address.

     SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender or
the Agent to exercise, and no delay in exercising, any right hereunder or under
any Note shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

     SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on demand
all costs and expenses of the Agent in connection with the preparation,
execution, delivery, administration, modification and amendment of this
Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, (A) all due diligence, syndication (including
printing, distribution and bank meetings), transportation, computer,
duplication, appraisal, consultant, and audit expenses and (B) the reasonable
fees and expenses of counsel for the Agent with respect thereto and with respect
to advising the Agent as to its rights and responsibilities under this
Agreement. The Borrower further agrees to pay on demand all costs and expenses
of the Agent and the Lenders, if any (including, without limitation, reasonable
counsel fees and expenses), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement, the Notes and
the other documents to be delivered hereunder, including, without limitation,
reasonable fees and expenses of counsel for the Agent and each Lender in
connection with the enforcement of rights under this Section 8.04(a).

     (b) The Borrower agrees to indemnify and hold harmless the Agent and each
Lender and each of their Affiliates and their officers, directors, employees,
agents and advisors (each, an "Indemnified Party") from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection
with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) the Notes, this Agreement, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the
Advances or (ii) the actual or alleged presence of Hazardous Materials on any
property of the Borrower or any of its Subsidiaries, except to the extent (x)
such claim, damage, loss, liability or expense resulted from such Indemnified
Party's gross negligence or willful misconduct or (ii) such claim, damage, loss
or expense arises from a litigation or proceeding among Lenders. In the case of
an investigation, litigation or other proceeding to which the indemnity in this
Section 8.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by the Borrower, its
directors, shareholders or creditors or an Indemnified Party or any other Person
or any Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated. The Borrower also agrees not
to assert any claim for special, indirect, consequential or punitive damages
against the Agent, any Lender, any of their Affiliates, or any of their
respective directors, officers, employees, attorneys and agents, on any theory
of liability, arising out of or otherwise relating to the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances.

     (c) If any payment of principal of, or Conversion of, any Eurocurrency Rate
Advance, LIBO Rate Advance or Local Rate Advance is made by the Borrower to or
for the account of a Lender other than on the last day of the Interest Period
for such Advance, as a result of a payment or Conversion pursuant to Section
2.08(d) or (e), 2.10 or 2.12, acceleration of the maturity of the Notes pursuant
to Section 6.01 or for any other reason, or by an Eligible Assignee to a Lender
other than on the last day of the Interest Period for such Advance upon an
assignment of rights and obligations under this Agreement pursuant to Section
8.07 as a result of a demand by the Borrower pursuant to Section 8.07(a), the
Borrower shall, upon demand by such Lender (with a copy of such demand to the
Agent), pay to the Agent for the account of such Lender any amounts required to
compensate such Lender for any additional losses, costs or expenses that it may
reasonably incur as a result of such payment or Conversion, including, without
limitation, any loss (including loss of anticipated profits), cost or expense
incurred

                                       36
<PAGE>

by reason of the liquidation or reemployment of deposits or other funds acquired
by any Lender to fund or maintain such Advance.

     (d) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
Sections 2.11, 2.14 and 8.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.

     SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Lender or such
Affiliate (but not including any insurance premiums) to or for the credit or the
account of the Borrower against any and all of the obligations of the Borrower
now or hereafter existing under this Agreement and the Note held by such Lender,
whether or not such Lender shall have made any demand under this Agreement or
such Note and although such obligations may be unmatured. Each Lender agrees
promptly to notify the Borrower after any such set-off and application, provided
that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of each Lender and its Affiliates under this
Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) that such Lender and its Affiliates may
have.

     SECTION 8.06. Binding Effect. This Agreement shall become effective (other
than Sections 2.01 and 2.03, which shall only become effective upon satisfaction
of the conditions precedent set forth in Section 3.01) when it shall have been
executed by the Borrower and the Agent and when the Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the
Agent and each Lender and their respective successors and assigns, except that
the Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders.

     SECTION 8.07. Assignments and Participations. (a) Each Lender may and, if
demanded by the Borrower (so long as no Default shall have occurred and be
continuing and following a demand by such Lender pursuant to Section 2.11 or
2.14 or a notice given by such Lender pursuant to Section 2.12) upon at least
five Business Days' notice to such Lender and the Agent, will assign to one or
more Persons all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the
Revolving Credit Advances owing to it and the Revolving Credit Note or Notes
held by it); provided, however, that (i) each such assignment shall be of a
constant, and not a varying, percentage of all rights and obligations under this
Agreement (other than any right to make Competitive Bid Advances, Competitive
Bid Advances owing to it and Competitive Bid Notes), (ii) except in the case of
an assignment to a Person that, immediately prior to such assignment, was a
Lender or an assignment of all of a Lender's rights and obligations under this
Agreement, the amount of the Commitment of the assigning Lender being assigned
pursuant to each such assignment (determined as of the date of the Assignment
and Acceptance with respect to such assignment) shall in no event be less than
$10,000,000 or an integral multiple of $1,000,000 in excess thereof, (iii) each
such assignment shall be to an Eligible Assignee, (iv) each such assignment made
as a result of a demand by the Borrower pursuant to this Section 8.07(a) shall
be arranged by the Borrower after consultation with the Agent and shall be
either an assignment of all of the rights and obligations of the assigning
Lender under this Agreement or an assignment of a portion of such rights and
obligations made concurrently with another such assignment or other such
assignments that together cover all of the rights and obligations of the
assigning Lender under this Agreement, (v) no Lender shall be obligated to make
any such assignment as a result of a demand by the Borrower pursuant to this
Section 8.07(a) unless and until such Lender shall have received one or more
payments from either the Borrower or one or more Eligible Assignees in an
aggregate amount at least equal to the aggregate outstanding principal amount of
the Advances owing to such Lender, together with accrued interest thereon to the
date of payment of such principal amount and all other amounts payable to such
Lender under this Agreement, and (vi) the parties to each such assignment shall
execute and deliver to the Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Revolving Credit Note
subject to such assignment and a processing and recordation fee of $3,500. Upon
such execution, delivery, acceptance and recording, from and after the effective
date specified in each Assignment and Acceptance, (x) the assignee thereunder
shall be a party hereto and,

                                       37
<PAGE>

to the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Acceptance, have the rights and obligations of a
Lender hereunder and (y) the Lender assignor thereunder shall, to the extent
that rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto).

     (b) By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Agent, such assigning Lender or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi)
such assignee appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement as
are delegated to the Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees
that it will perform in accordance with their terms all of the obligations that
by the terms of this Agreement are required to be performed by it as a Lender.

     (c) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Revolving Credit Note or Notes subject to such assignment, the
Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit C hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Borrower.

     (d) The Agent shall maintain at its address referred to in Section 8.02 a
copy of each Assumption Agreement and each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Lenders and the Commitment of, and principal amount of the
Advances owing to, each Lender from time to time (the "Register"). The entries
in the Register shall be conclusive and binding for all purposes, absent
manifest error, and the Borrower, the Agent and the Lenders may treat each
Person whose name is recorded in the Register as a Lender hereunder for all
purposes of this Agreement. The Register shall be available for inspection by
the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice. (e) Each Lender may sell participations to one or more
banks or other entities (other than the Borrower or any of its Affiliates) in or
to all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the Advances
owing to it and any Note or Notes held by it); provided, however, that (i) such
Lender's obligations under this Agreement (including, without limitation, its
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender shall remain the holder of any such Note
for all purposes of this Agreement, (iv) the Borrower, the Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement and
(v) no participant under any such participation shall have any right to approve
any amendment or waiver of any provision of this Agreement or any Note, or any
consent to any departure by the Borrower therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest on,
the Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, or postpone any date fixed for any payment
of principal of, or interest on, the Notes or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation. The
Borrower agrees that each

                                       38
<PAGE>

participant shall be entitled to the benefits of Sections 2.11, 2.14 and 8.04(b)
and (c) to the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to this Section 8.07; provided that no participant shall
be entitled to receive any greater amount pursuant to any such section than the
transferor Lender would have been entitled to receive in respect of the amount
of the participation transferred by such transferor Lender to such participant
had no such participation occurred.

     (f) Any Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 8.07, disclose to
the assignee or participant or proposed assignee or participant, any information
relating to the Borrower furnished to such Lender by or on behalf of the
Borrower; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the
confidentiality of any Confidential Information relating to the Borrower
received by it from such Lender.

     (g) Notwithstanding anything to the contrary contained herein, any Lender
(a "Granting Bank") may grant to any of its Affiliates (a "Funding Agent"),
identified as such in writing from time to time by the Granting Bank to the
Agent and the Borrower, the option to provide to the Borrower all or any part of
any Advance that such Granting Bank would otherwise be obligated to make to the
Borrower pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any Funding Agent to make any Advance, (ii) if a
Funding Agent elects not to exercise such option or otherwise fails to provide
all or any part of such Advance, the Granting Bank shall be obligated, as a
principal and not as a surety, to make such Advance pursuant to the terms
hereof. The making of an Advance by a Funding Agent hereunder shall utilize the
Commitment of the Granting Bank to the same extent, and as if, such Advance were
made by such Granting Bank. Each party hereto hereby agrees that no Funding Bank
shall be liable for any indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Bank).
Notwithstanding the foregoing, neither any such grant made hereunder nor the
holding of interest hereunder by any Funding Agent shall increase any of the
Borrower's obligations and/or liabilities (including without limitation tax
liabilities and other indemnities) which the Borrower has but for such grant or
holding of interest ("Funding Agent Liabilities") and the Granting Bank shall
hold the Borrower harmless and indemnify the Borrower from and against any and
all Funding Agent Liabilities. Each party hereto agrees that the Granting Bank
shall, for all purposes, including any amendment, waiver or modification of this
Agreement, the Notes, or any document related thereto, remain the lender of
record hereunder.

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

     SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any other Person without the consent of
the Borrower, other than (a) to the Agent's or such Lender's Affiliates and
their officers, directors, employees, agents and advisors and, as contemplated
by Section 8.07(f), to actual or prospective assignees and participants, and
then only on a confidential basis, (b) as required by any law, rule or
regulation or judicial process, and (c) as requested or required by any state,
federal or foreign authority or examiner regulating banks or banking.
Notwithstanding anything herein to the contrary, the Agent and the Lenders may
disclose to any and all Persons, without limitation of any kind, the U.S. tax
treatment and tax structure of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to the Agent or any Lender relating to such U.S. tax treatment and tax
structure.

     SECTION 8.09. Governing Law. This Agreement and the Notes shall be governed
by, and construed in accordance with, the laws of the State of New York.

     SECTION 8.10. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of a manually executed counterpart of
this Agreement.

                                       39
<PAGE>

     SECTION 8.11. Judgment. (a) If for the purposes of obtaining judgment in
any court it is necessary to convert a sum due hereunder in Dollars into another
currency, the parties hereto agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Agent could purchase Dollars with
such other currency at Citibank's principal office in London at 11:00 A.M.
(London time) on the Business Day preceding that on which final judgment is
given.

     (b) If for the purposes of obtaining judgment in any court it is necessary
to convert a sum due hereunder in a Foreign Currency into Dollars, the parties
agree to the fullest extent that they may effectively do so, that the rate of
exchange used shall be that at which in accordance with normal banking
procedures the Agent could purchase such Foreign Currency with Dollars at
Citibank's principal office in London at 11:00 A.M. (London time) on the
Business Day preceding that on which final judgment is given.

     (c) The obligation of the Borrower in respect of any sum due from it in any
currency (the "Primary Currency") to any Lender or the Agent hereunder shall,
notwithstanding any judgment in any other currency, be discharged only to the
extent that on the Business Day following receipt by such Lender or the Agent
(as the case may be), of any sum adjudged to be so due in such other currency,
such Lender or the Agent (as the case may be) may in accordance with normal
banking procedures purchase the applicable Primary Currency with such other
currency; if the amount of the applicable Primary Currency so purchased is less
than such sum due to such Lender or the Agent (as the case may be) in the
applicable Primary Currency, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or the Agent (as the
case may be) against such loss, and if the amount of the applicable Primary
Currency so purchased exceeds such sum due to any Lender or the Agent (as the
case may be) in the applicable Primary Currency, such Lender or the Agent (as
the case may be) agrees to remit to the Borrower such excess.

     SECTION 8.12. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court. The Borrower hereby irrevocably consents to the service
of process in any action or proceeding in such courts by the mailing thereof by
any parties hereto by registered or certified mail, postage prepaid, with an
additional notice by telecopier or by reputable overnight delivery service, to
the Borrower at its address specified pursuant to Section 8.02. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement or the Notes in the courts of any
jurisdiction.

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

     SECTION 8.13. Substitution of Currency. If a change in any Foreign Currency
occurs pursuant to any applicable law, rule or regulation of any governmental,
monetary or multi-national authority, this Agreement (including, without
limitation, the definitions of Eurocurrency Rate and LIBO Rate) will be amended
to the extent determined by the Agent (acting reasonably and in consultation
with the Borrower) to be necessary to reflect the change in currency and to put
the Lenders and the Borrower in the same position, so far as possible, that they
would have been in if no change in such Foreign Currency had occurred. No such
change in currency nor any economic consequences resulting therefrom shall (a)
give rise to any right to terminate prematurely, contest, cancel, rescind,
alter, modify or renegotiate the provisions of this Agreement or (b) discharge,
excuse or otherwise affect the performance of any obligations of any of the
Borrower or the Lenders under this Agreement.

                                       40
<PAGE>

     SECTION 8.14. Waiver of Jury Trial. Each of the Borrower, the Agent and the
Lenders hereby irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Agreement or the Notes or the actions of the
Agent or any Lender in the negotiation, administration, performance or
enforcement thereof.

                                       41
<PAGE>

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

                              SNAP-ON INCORPORATED

                              By /s/ Martin M. Ellen
                                 -----------------------------------------
                                 Title: Senior Vice President-Finance and
                                        Chief Financial Officer

                              THE AGENT

                              CITIBANK, N.A.,
                                as Agent

                              By: /s/ Illegible
                                 -----------------------------------------
                                 Title:

                              INITIAL LENDERS

                              CITIBANK, N.A.,

                              By: /s/ Illegible
                                 -----------------------------------------
                                 Title:

                              BANK ONE, NA

                              By: /s/ Jenny A. Gilpin
                                 -----------------------------------------
                                 Title:   Managing Director

                              BARCLAYS BANK PLC

                              By: /s/ Nicholas Bell
                                 -----------------------------------------
                                 Title: Director

                              MIZUHO CORPORATE BANK, LTD.

                              By: /s/ Greg Illegible
                                 -----------------------------------------
                                 Title:   Vice President

                              ROYAL BANK OF CANADA

                              By: /s/ Sheryl Greenberg
                                 -----------------------------------------
                                 Title:   Senior Manager

                                       42
<PAGE>

                              SVENSKA HANDELSBANKEN AB (PUBL)

                              By: /s/ Mikael Westerback
                                 -----------------------------------------
                                 Title:   Vice President

                              By: /s/ Jonas Daun
                                 -----------------------------------------
                                 Title:   Senior Vice President

                              BANK OF AMERICA, N.A.

                              By: /s/ Tim Cassidy
                                 -----------------------------------------
                                 Title:   Vice President

                              THE NORTHERN TRUST COMPANY

                              By: /s/ Melissa A. Whitson
                                 -----------------------------------------
                                 Title:   Vice President

                              SANPAOLO IMI S.p.A.

                              By: /s/ Illegible
                                 -----------------------------------------
                                 Title:   CEO for The Americas

                              By: /s/ Illegible
                                 -----------------------------------------
                                 Title:   Vice President

                              SOCIETE GENERALE

                              By: /s/ Paul D. Buie
                                 -----------------------------------------
                                 Title: Associate

                              By: /s/ Betty Burg
                                 -----------------------------------------
                                 Title: Director

                              U.S. BANK NATIONAL ASSOCIATION

                              By: /s/ Janell W. Stanosz
                                 -----------------------------------------
                                 Title: Vice President

                                       43
<PAGE>
                                                                      SCHEDULE I
                                                                          TO THE
                                                       AMENDMENT AND RESTATEMENT

                   COMMITMENTS AND APPLICABLE LENDING OFFICES
                   ------------------------------------------
<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------
   Name of Initial Lender            Commitment           Domestic Lending Office       Eurocurrency Lending Office
---------------------------------------------------------------------------------------------------------------------
<S>                            <C>                     <C>                             <C>
Bank of America, N.A.          $17,000,000             1850 Gateway Blvd.              1850 Gateway Blvd.
                                                       Concord, CA 94520               Concord, CA 94520
                                                       Attn: Debbie Conchongco         Attn: Debbie Conchongco
                                                       T: 925 675-8913                 T: 925 675-8913
                                                       F: 925 675-7539                 F: 925 675-7539
---------------------------------------------------------------------------------------------------------------------
Barclays Bank PLC              $20,000,000             200 Park Avenue                 200 Park Avenue
                                                       New York, NY 10166              New York, NY 10166
                                                       Attn: Eddie Cotto               Attn: Eddie Cotto
                                                       T: 212 412-3701                 T: 212 412-3701
                                                       F: 212 412-5308                 F: 212 412-5308
---------------------------------------------------------------------------------------------------------------------
Bank One, NA                   $20,000,000             1 Bank One                      1 Bank One
                                                       Plaza, Suite 0088               Plaza, Suite 0088
                                                       Chicago, IL 60670               Chicago, IL 60670
                                                       Attn: Edna Guerra               Attn: Edna Guerra
                                                       T: 312 732-9609                 T: 312 732-9609
                                                       F: 312 732-2715                 F: 312 732-2715
---------------------------------------------------------------------------------------------------------------------
Citibank, N.A.                 $22,000,000             Two Penns Way                   Two Penns Way
                                                       New Castle, DE 19720            New Castle, DE 19720
                                                       Attn: Maureen Prytula           Attn: Maureen Prytula
                                                       T: 302 894-6089                 T: 302 894-6089
                                                       F: 302 894-6120                 F: 302 894-6120
---------------------------------------------------------------------------------------------------------------------
Mizuho Corporate Bank, Ltd.    $20,000,000             10 S. Wacker Drive              10 S. Wacker Drive
                                                       Chicago, IL 60608               Chicago, IL 60608
                                                       Attn: Michael Pleasants         Attn: Michael Pleasants
                                                       T: 312 715-6361                 T: 312 715-6361
                                                       F: 312 876-2011                 F: 312 876-2011
---------------------------------------------------------------------------------------------------------------------
The Northern Trust Company     $17,000,000             50 S. LaSalle Street            50 S. LaSalle Street
                                                       Chicago, IL  60675              Chicago, IL  60675
                                                       Attn:  Linda Honda              Attn:  Linda Honda
                                                       T:  312 444-3532                T:  312 444-3532
                                                       F:  312 630-1566                F:  312 630-1566
---------------------------------------------------------------------------------------------------------------------
Royal Bank of Canada           $20,000,000             One Liberty Plaza, 3rd Floor    One Liberty Plaza, 3rd Floor
                                                       165 Broadway                    165 Broadway
                                                       New York, NY  10006             New York, NY  10006
                                                       Attn:  Loans Administration     Attn:  Loans Administration
                                                       T:  212 428-6369                T:  212 428-6369
                                                       F:  212 428-2372                F:  212 428-2372
---------------------------------------------------------------------------------------------------------------------
Sanpaolo IMI S.p.A.            $17,000,000             245 Park Avenue                 245 Park Avenue
                                                       New York, NY  10167             New York, NY  10167
                                                       Attn:  Manuela Insana           Attn:  Manuela Insana
                                                       T:  212 692-3128                T:  212 692-3128
                                                       F:  212 692-3178                F:  212 692-3178
---------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------
<S>                            <C>                     <C>                             <C>
Societe Generale               $17,000,000             560 Lexington Avenue            560 Lexington Avenue
                                                       New York, NY  10022             New York, NY  10022
                                                       Attn:  Sylvia Pace              Attn:  Sylvia Pace
                                                       T:  212 278-6931                T:  212 278-6931
                                                       F:  212 278-7343                F:  212 278-7343
---------------------------------------------------------------------------------------------------------------------
Svenska Handelsbanken AB       $20,000,000             153 East 53rd Street            153 East 53rd Street
(publ)                                                 New York, NY 10022              New York, NY 10022
                                                       Attn: Mikael Westerback         Attn: Mikael Westerback
                                                       T: 212 326-5144                 T: 212 326-5125
                                                       F: 212 326-2705                 F: 212 326-5151
---------------------------------------------------------------------------------------------------------------------
U.S. Bank National             $10,000,000             777 E. Wisconsin Ave.           777 E. Wisconsin Ave.
Association                                            Milwaukee, WI 53202             Milwaukee, WI 53202
                                                       Attn: Janell Stanosz            Attn: Janell Stanosz
                                                       T: 414 765-4419                 T: 414 765-4419
                                                       F: 414 765-5367                 F: 414 765-5367
---------------------------------------------------------------------------------------------------------------------

Total Commitment           =   U.S. $200,000,000
</TABLE>

<PAGE>
                                                           EXHIBIT A-1 - FORM OF
                                                                REVOLVING CREDIT
                                                                 PROMISSORY NOTE

U.S.$_______________                               Dated:  _______________, 200_

     FOR VALUE RECEIVED, the undersigned, SNAP-ON INCORPORATED, a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
_________________________ (the "Lender") for the account of its Applicable
Lending Office on the later of the Termination Date and the Maturity Date (each
as defined in the Credit Agreement referred to below) the principal sum of
U.S.$[amount of the Lender's Commitment in figures] or, if less, the aggregate
principal amount of the Revolving Credit Advances made by the Lender to the
Borrower pursuant to the Amended and Restated 364-Day Credit Agreement dated as
of August 1, 2003 among the Borrower, the Lender and certain other lenders
parties thereto, Citigroup Global Markets Inc., as Lead Arranger and Book
Manager, Banc One Capital Markets Inc., as Co-Arranger, Bank One, NA, as
Syndication Agent, and Citibank, N.A. as Agent for the Lender and such other
lenders (as amended or modified from time to time, the "Credit Agreement"; the
terms defined therein being used herein as therein defined) outstanding on such
date.

     The Borrower promises to pay interest on the unpaid principal amount of
each Revolving Credit Advance from the date of such Revolving Credit Advance
until such principal amount is paid in full, at such interest rates, and payable
at such times, as are specified in the Credit Agreement.

     Both principal and interest in respect of each Revolving Credit Advance (i)
in Dollars are payable in lawful money of the United States of America to the
Agent at its account maintained at 388 Greenwich Street, New York, New York
10013, in same day funds and (ii) in any Committed Currency are payable in such
currency at the applicable Payment Office in same day funds. Each Revolving
Credit Advance owing to the Lender by the Borrower pursuant to the Credit
Agreement, and all payments made on account of principal thereof, shall be
recorded by the Lender and, prior to any transfer hereof, endorsed on the grid
attached hereto which is part of this Promissory Note.

     This Promissory Note is one of the Revolving Credit Notes referred to in,
and is entitled to the benefits of, the Credit Agreement. The Credit Agreement,
among other things, (i) provides for the making of Revolving Credit Advances by
the Lender to the Borrower from time to time in an aggregate amount not to
exceed at any time outstanding the U.S. dollar amount first above mentioned, the
indebtedness of the Borrower resulting from each such Revolving Credit Advance
being evidenced by this Promissory Note, (ii) contains provisions for
determining the Dollar Equivalent of Revolving Credit Advances denominated in
Committed Currencies and (iii) contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon the
terms and conditions therein specified.

                              SNAP-ON INCORPORATED

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

<PAGE>
                       ADVANCES AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------
                                                       Amount of
      Date                    Amount of             Principal Paid           Unpaid Principal             Notation
                               Advance                or Prepaid                 Balance                   Made By
---------------------------------------------------------------------------------------------------------------------
<S>                           <C>                   <C>                      <C>                          <C>

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

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

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

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

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

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

---------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                                           EXHIBIT A-2 - FORM OF
                                                                 COMPETITIVE BID
                                                                 PROMISSORY NOTE

U.S.$_______________                               Dated:  _______________, 200_

     FOR VALUE RECEIVED, the undersigned, SNAP-ON INCORPORATED, a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
_________________________ (the "Lender") for the account of its Applicable
Lending Office (as defined in the Amended and Restated 364-Day Credit Agreement
dated as of August 1, 2003 among the Borrower, the Lender and certain other
lenders parties thereto, Citigroup Global Markets Inc., as Lead Arranger and
Book Manager, Banc One Capital Markets Inc., as Co-Arranger, Bank One, NA, as
Syndication Agent, and Citibank, N.A., as Agent for the Lender and such other
lenders (as amended or modified from time to time, the "Credit Agreement"; the
terms defined therein being used herein as therein defined)), on
_______________, 200_, the principal amount of [U.S.$_______________] [for a
Competitive Bid Advance in a Foreign Currency, list currency and amount of such
Advance].

     The Borrower promises to pay interest on the unpaid principal amount hereof
from the date hereof until such principal amount is paid in full, at the
interest rate and payable on the interest payment date or dates provided below:

     Interest Rate: _____% per annum (calculated on the basis of a year of _____
     days for the actual number of days elapsed).

     Both principal and interest are payable in lawful money of ________________
to Citibank, as agent, for the account of the Lender at the office of
_________________________, at _________________________ in same day funds.

     This Promissory Note is one of the Competitive Bid Notes referred to in,
and is entitled to the benefits of, the Credit Agreement. The Credit Agreement,
among other things, contains provisions for acceleration of the maturity hereof
upon the happening of certain stated events.

     The Borrower hereby waives presentment, demand, protest and notice of any
kind. No failure to exercise, and no delay in exercising, any rights hereunder
on the part of the holder hereof shall operate as a waiver of such rights.

     This Promissory Note shall be governed by, and construed in accordance
with, the laws of the State of New York.

                              SNAP-ON INCORPORATED

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

<PAGE>
                                                 EXHIBIT B-1 - FORM OF NOTICE OF
                                                      REVOLVING CREDIT BORROWING

Citibank, N.A., as Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
  Two Penns Way
  New Castle, Delaware 19720

                                     [Date]

     Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

     The undersigned, SNAP-ON INCORPORATED, refers to the Amended and Restated
364-Day Credit Agreement, dated as of August 1, 2003 (as amended or modified
from time to time, the "Credit Agreement", the terms defined therein being used
herein as therein defined), among the undersigned, certain Lenders parties
thereto, Citigroup Global Markets Inc., as Lead Arranger and Book Manager, Banc
One Capital Markets Inc., as Co-Arranger, Bank One, NA, as Syndication Agent,
and Citibank, N.A., as Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Revolving Credit Borrowing under the Credit
Agreement, and in that connection sets forth below the information relating to
such Revolving Credit Borrowing (the "Proposed Revolving Credit Borrowing") as
required by Section 2.02(a) of the Credit Agreement:

          (i) The Business Day of the Proposed Revolving Credit Borrowing is
     _______________, 200_.

          (ii) The Type of Advances comprising the Proposed Revolving Credit
     Borrowing is [Base Rate Advances] [Eurocurrency Rate Advances].

          (iii) The aggregate amount of the Proposed Revolving Credit Borrowing
     is [$_______________] [for a Revolving Credit Borrowing in a Committed
     Currency, list currency and amount of Revolving Credit Borrowing].

          [(iv) The initial Interest Period for each Eurocurrency Rate Advance
     made as part of the Proposed Revolving Credit Borrowing is _____ month[s].]

     The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the date of the Proposed Revolving Credit
Borrowing:

          (A) the representations and warranties contained in Section 4.01 of
     the Credit Agreement (except the representations set forth in the last
     sentence of subsection (e) thereof and in subsection (f)(i) thereof) are
     correct, before and after giving effect to the Proposed Revolving Credit
     Borrowing and to the application of the proceeds therefrom, as though made
     on and as of such date;

          (B) no event has occurred and is continuing, or would result from such
     Proposed Revolving Credit Borrowing or from the application of the proceeds
     therefrom, that constitutes a Default; and

<PAGE>

          (C) after giving effect to such Proposed Revolving Credit Borrowing,
     the aggregate amount of the Borrower's Debt (not including other
     transactions relating to Snap-on Credit LLC) from any bank or financial
     institution or under any commercial paper facility or debt securities or
     securitization program outstanding will not exceed $550,000,000 or, if
     greater, the amount authorized by resolutions of the Board of Directors in
     effect on the date of such Proposed Revolving Credit Borrowing..

                              Very truly yours,

                              SNAP-ON INCORPORATED

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

<PAGE>
                                                 EXHIBIT B-2 - FORM OF NOTICE OF
                                                       COMPETITIVE BID BORROWING

Citibank, N.A., as Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
  Two Penns Way
  New Castle, Delaware 19720

                                     [Date]

     Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

     The undersigned, SNAP-ON INCORPORATED, refers to the Amended and Restated
364-Day Credit Agreement, dated as of August 1, 2003 (as amended or modified
from time to time, the "Credit Agreement", the terms defined therein being used
herein as therein defined), among the undersigned, certain Lenders parties
thereto, Citigroup Global Markets Inc., as Lead Arranger and Book Manager, Banc
One Capital Markets Inc., as Co-Arranger, Bank One, NA, as Syndication Agent,
and Citibank, N.A., as Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.03 of the Credit Agreement that the
undersigned hereby requests a Competitive Bid Borrowing under the Credit
Agreement, and in that connection sets forth the terms on which such Competitive
Bid Borrowing (the "Proposed Competitive Bid Borrowing") is requested to be
made:

      (A)  Date of Competitive Bid Borrowing    ________________________
      (B)  Amount of Competitive Bid Borrowing  ________________________
      (C)  [Maturity Date] [Interest Period]    ________________________
      (D)  Interest Rate Basis                  ________________________
      (E)  Day Count Convention                 ________________________
      (F)  Interest Payment Date(s)             ________________________
      (G)  Currency                             ________________________
      (H)  Borrower's Account Location          ________________________
      [(I) Prepayments Permitted                ________________________]
      (J)  ___________________                  ________________________

     The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the date of the Proposed Competitive Bid
Borrowing:

          (a) the representations and warranties contained in Section 4.01 are
     correct, before and after giving effect to the Proposed Competitive Bid
     Borrowing and to the application of the proceeds therefrom, as though made
     on and as of such date;

          (b) no event has occurred and is continuing, or would result from the
     Proposed Competitive Bid Borrowing or from the application of the proceeds
     therefrom, that constitutes a Default;

          (c) no event has occurred and no circumstance exists as a result of
     which the information concerning the undersigned that has been provided to
     the Agent and each Lender by the undersigned in connection with the Credit
     Agreement would include an untrue statement of a material fact or omit to
     state any material fact or any fact necessary to make the statements
     contained therein, in the light of the circumstances under which they were
     made, not misleading;
<PAGE>

          (d) the aggregate amount of the Proposed Competitive Bid Borrowing, if
     accepted by the Borrower, and all other Borrowings to be made on the same
     day under the Credit Agreement is within the aggregate amount of the unused
     Commitments of the Lenders, and

          (e) after giving effect to the Proposed Competitive Bid Borrowing, the
     aggregate amount of the Borrower's Debt (not including other transactions
     relating to Snap-on Credit LLC) from any bank or financial institution or
     under any commercial paper facility or debt securities or securitization
     program outstanding will not exceed $550,000,000 or, if greater, the amount
     authorized by resolutions of the Board of Directors in effect on the date
     of the Proposed Competitive Bid Borrowing.

                              Very truly yours,

                              SNAP-ON INCORPORATED

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

<PAGE>
                                                             EXHIBIT C - FORM OF
                                                       ASSIGNMENT AND ACCEPTANCE

     Reference is made to the Amended and Restated 364-Day Credit Agreement
dated as of August 1, 2003 (as amended or modified from time to time, the
"Credit Agreement") among Snap-On Incorporated, a Delaware corporation (the
"Borrower"), the Lenders (as defined in the Credit Agreement), Citigroup Global
Markets Inc., as Lead Arranger and Book Manager, Banc One Capital Markets Inc.,
as Co-Arranger, Bank One, NA, as Syndication Agent, and Citibank, N.A., as agent
for the Lenders (the "Agent"). Terms defined in the Credit Agreement are used
herein with the same meaning.

     The "Assignor" and the "Assignee" referred to on Schedule I hereto agree as
follows:

     1. The Assignor hereby sells and assigns to the Assignee, and the Assignee
hereby purchases and assumes from the Assignor, an interest in and to the
Assignor's rights and obligations under the Credit Agreement as of the date
hereof (other than in respect of Competitive Bid Advances and Competitive Bid
Notes) equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement (other than in
respect of Competitive Bid Advances and Competitive Bid Notes). After giving
effect to such sale and assignment, the Assignee's Commitment and the amount of
the Revolving Credit Advances owing to the Assignee will be as set forth on
Schedule 1 hereto.

     2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Agreement or any other instrument or document furnished
pursuant thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrower or the
performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto;
and (iv) attaches the Revolving Credit Note, if any held by the Assignor.

     3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement; (iii) represents to the Assignor, the Agent and the Borrower that it
is an Eligible Assignee; (iv) appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers and discretion under
the Credit Agreement as are delegated to the Agent by the terms thereof,
together with such powers and discretion as are reasonably incidental thereto;
(v) agrees that it will perform in accordance with their terms all of the
obligations that by the terms of the Credit Agreement are required to be
performed by it as a Lender; and (vi) attaches any U.S. Internal Revenue Service
forms required under Section 2.14 of the Credit Agreement.

     4. Following the execution of this Assignment and Acceptance, it will be
delivered to the Agent for acceptance and recording by the Agent. The effective
date for this Assignment and Acceptance (the "Effective Date") shall be the date
of acceptance hereof by the Agent, unless otherwise specified on Schedule 1
hereto.

     5. Upon such acceptance and recording by the Agent, as of the Effective
Date, (i) the Assignee shall be a party to the Credit Agreement and, to the
extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

                                       i
<PAGE>

     6. Upon such acceptance and recording by the Agent, from and after the
Effective Date, the Agent shall make all payments under the Credit Agreement and
the Revolving Credit Notes in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest and facility
fees with respect thereto) to the Assignee. The Assignor and Assignee shall make
all appropriate adjustments in payments under the Credit Agreement and the
Revolving Credit Notes for periods prior to the Effective Date directly between
themselves.

     7. This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the State of New York.

     8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.

     IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to
this Assignment and Acceptance to be executed by their officers thereunto duly
authorized as of the date specified thereon.

                                       ii
<PAGE>
                                   Schedule 1
                                       to
                            Assignment and Acceptance

<TABLE>
<CAPTION>

<S>                                                                              <C>
    Percentage interest assigned:                                                      _____%

    Assignee's Commitment:                                                       $__________

    Aggregate outstanding principal amount of Revolving Credit Advances assigned:$__________

    Principal amount of Revolving Credit Note payable to Assignee:               $__________

    Principal amount of Revolving Credit Note payable to Assignor:               $__________

    Effective Date*:  _______________, 200_
</TABLE>

                              [NAME OF ASSIGNOR], as Assignor

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

                              Dated:  _______________, 200_

                              [NAME OF ASSIGNEE], as Assignee

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

                              Dated:  _______________, 200_

                              Domestic Lending Office:
                                       [Address]

                              Eurocurrency Lending Office:
                                       [Address]

-----------
*    This date should be no earlier than five Business Days after the delivery
     of this Assignment and Acceptance to the Agent.

                                      iii
<PAGE>

Accepted [and Approved]* this

__________ day of _______________, 200_

CITIBANK, N.A., as Agent

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

[Approved this __________ day

of _______________, 200_

SNAP-ON INCORPORATED

By                                          ]**
  ------------------------------------------
   Title:

-----------
*    Required if the Assignee is an Eligible Assignee solely by reason of clause
     (iii) of the definition of "Eligible Assignee".

**   Required if the Assignee is an Eligible Assignee solely by reason of clause
     (iii) of the definition of "Eligible Assignee".

                                       iv

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