Document:

<PAGE>

                                                                   EXHIBIT 10.12

                                                                  EXECUTION COPY

                                 FIRST AMENDMENT

     FIRST AMENDMENT, dated as of March 20, 2001 (the "AMENDMENT"), to the
Fourth Amended and Restated Credit Agreement, dated as of August 14, 2000 (the
"CREDIT AGREEMENT"), among IRON MOUNTAIN INCORPORATED, a Pennsylvania
corporation (the "COMPANY"), IRON MOUNTAIN CANADA CORPORATION (formerly known as
Pierce Leahy Canada Company), a company organized under the laws of the Province
of Nova Scotia, the several banks and other financial institutions or entities
from time to time parties to the Credit Agreement (the "Lenders"), FLEET
NATIONAL BANK, as documentation agent, CHASE SECURITIES INC., as arranger and
book manager, THE CHASE MANHATTAN BANK OF CANADA, as Canadian Administrative
Agent, and THE CHASE MANHATTAN BANK, as administrative agent for the Lenders (in
such capacity, the "ADMINISTRATIVE AGENT").

                              W I T N E S S E T H:
                               - - - - - - - - - -

     WHEREAS, the Company has requested that the Lenders and the Administrative
Agent agree to the amendments to the Credit Agreement set forth below and in
Exhibit A attached hereto, and the Lender and the Administrative Agent agree to
such amendments upon the terms set forth herein;

     NOW, THEREFORE, in consideration of the respective covenants and agreement
set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

     1. DEFINED TERMS. Unless otherwise defined herein, all capitalized terms
used herein shall have the meanings given to them in the Credit Agreement.

     2. AMENDMENT TO SECTION 1.01 (CERTAIN DEFINED TERMS). The definition of
"SENIOR SUBORDINATED DEBT" is hereby amended to read in its entirety as follows:

          ""SENIOR SUBORDINATED DEBT" shall mean, collectively, the 1996 Senior
     Subordinated Debt, the 1997 Senior Subordinated Debt, the 1999 Senior
     Subordinated Debt, the Pierce 1996 Senior Subordinated Notes, the Pierce
     1997 Senior Subordinated Notes, the Pierce 1998 Senior Notes and any other
     subordinated Indebtedness permitted under Section 9.08(iii) hereof."

     3. AMENDMENT TO SECTION 9.08 (INDEBTEDNESS). Section 9.08 is hereby amended
by deleting "$175,000,000" from clause (vi) therein and inserting "$205,000,000"
in lieu thereof.

     4. AMENDMENT TO SECTION 9.17 (SUBORDINATED INDEBTEDNESS). Section 9.17(iii)
is hereby amended to read in its entirety as follows:

          "(iii) any other purchase, redemption or retirement of Subordinated
     Indebtedness, so long as (i) no Default has occurred and is continuing and
     (ii) either (A) such other purchase, redemption or retirement is in
     connection with a refinancing of such

<PAGE>

     Subordinated Indebtedness with the proceeds of, or in connection with an
     exchange of such Subordinated Indebtedness for a new series of, Senior
     Subordinated Debt issued within 60 days of the substantial completion of
     such purchase, redemption or retirement, or (B) after giving effect to such
     purchase, redemption or retirement, the ratio of Senior Debt on the last
     day of the most recently completed fiscal quarter of the Company to EBITDA
     for the four quarters then ended on a PRO FORMA basis, after giving effect
     to such purchase, redemption or retirement and any Stock Repurchase
     consummated on or prior to the date hereof, and to any borrowings to
     finance the same, as at the last day of the latest fiscal quarter is less
     than or equal to 1.5 to 1."

     5. AMENDMENT TO SECTION 9.21 (CERTAIN OBLIGATIONS RESPECTING SUBSIDIARIES).
Section 9.21(d) is hereby amended by deleting the words "Senior Subordinated
Debt Indentures" contained therein and substituting the words "Senior
Subordinated Debt Documents" in lieu thereof.

     6. AMENDMENTS TO SECTIONS 2, 3, 4 AND 5. Sections 2, 3, 4 and 5 are hereby
amended to read in their respective entirety as set forth in Exhibit A to this
Amendment (with the changes thereto being marked in accordance with the Delta
View blackline program).

     7. AMENDMENT TO SECTION 2.6 OF ANNEX A. Section 2.6 of Annex A to the
Credit Agreement is hereby amended to read in its entirety as follows:

          "2.6 DESIGNATION OF BORROWINGS. On or prior to the date which is
     five (5) Business Days (Canada) prior to the first day of each month, the
     US Borrower and the Canadian Borrower shall give notice to each of the
     Canadian Administrative Agent and the Administrative Agent, respectively,
     of the aggregate Canadian Commitment and the aggregate US$-Canadian
     Commitment to be available during such month (the "US-CANADIAN
     ALLOCATION"), and the Canadian Administrative Agent and the Administrative
     Agent shall promptly notify the Canadian Lenders and the US$-Canadian
     Lenders, respectively, thereof. With the consent of each of the
     US$-Canadian Lenders, the Canadian Lenders, the Administrative Agent and
     the Canadian Administrative Agent (as evidenced in a manner satisfactory to
     the Administrative Agent), the US Borrower and the Canadian Borrower may
     modify the then-current US-Canadian Allocation for any period and subject
     to any notice as they may request; and in the event of a failure by the US
     Borrower and the Canadian Borrower to give a timely notice as to the
     US-Canadian Allocation for any month, the US-Canadian Allocation for the
     immediately preceding month shall continue in effect. The US Borrower and
     the Canadian Borrower agree that no time during such month shall the
     aggregate principal amount of the C$ Loans exceed the aggregate Canadian
     Commitment specified in such notice, nor shall the aggregate principal
     amount of the US$-Canadian Loans exceed the aggregate US$-Canadian
     Commitment specified in such notice, and in no event shall the aggregate of
     the Canadian Commitments and the US$-Canadian Commitments exceed
     US$50,000,000."

     8. REPRESENTATIONS AND WARRANTIES. On and as of the date hereof, the
Company hereby confirms, reaffirms and restates the representations and
warranties set forth in Section 8 of the Credit Agreement mutatis mutandis,
except to the extent that such representations and warranties expressly relate
to a specific earlier date in which case the

                                       2

<PAGE>

Borrower hereby confirms, reaffirms and restates such representations and
warranties as of such earlier date.

     9. EFFECTIVENESS. This Amendment shall become effective immediately upon
execution by the Majority Lenders, the Administrative Agent and the Company (the
"Effectiveness Date").

     10. VALID AND BINDING. This Amendment shall be binding upon and inure to
the benefit of each of the parties hereto and their respective successors and
assigns.

     11. PAYMENT OF EXPENSES. The Company agrees to pay or reimburse the
Administrative Agent for all out-of-pocket costs and expenses incurred in
connection with the Amendment, any other documents prepared in connection
herewith and the transactions contemplated hereby, including, without
limitation, the reasonable fees and disbursements of counsel.

     12. REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT; LIMITED EFFECT. On and
after the date hereof and the satisfaction of the conditions contained in this
Amendment, each reference in the Credit Agreement to "this Agreement",
"hereunder", "hereof" or words of like import referring to the Credit Agreement
shall mean and be a reference to the Credit Agreement as amended hereby. The
execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of
any Lender under the Credit Agreement, nor constitute a waiver of any provisions
of the Credit Agreement. Except as expressly amended herein, all of the
provisions and covenants of the Credit Agreement are and shall continue to
remain in full force and effect in accordance with the terms thereof and are
hereby in all respects ratified and confirmed.

     13. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF
THE STATE OF NEW YORK.

     14. COUNTERPARTS. This Amendment may be executed by one or more of the
parties hereto in any number of separate counterparts (which may include
counterparts delivered by facsimile transmission) and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. Any
executed counterpart delivered by facsimile transmission shall be effective as
for all purposes hereof.

                                       3

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Consent and
Amendment to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first above written.

                               IRON MOUNTAIN INCORPORATED

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

                               THE CHASE MANHATTAN BANK, as
                                  Administrative Agent

                               By: /s/ Robert T. Sacks
                                  -----------------------------------------
                                    Name: Robert T. Sacks
                                    Title: Managing Director

                               AERIES II FINANCE LTD.
                               By: INVESCO Senior Secured Management, Inc.
                                   As Sub-Managing Agent

                               By: /s/ Thomas H. B. Ewald
                                  -----------------------------------------
                                    Name: Thomas H.B. Ewald
                                    Title: Authorized Signatory

                               AIMCO CDO SERIES 2000-A

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

                                       4

<PAGE>

                               ALLFIRST BANK

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

                               ARAB BANK PLC

                               By: /s/ Samier Tamini
                                  -----------------------------------------
                                    Name: Samier Tamini
                                    Title: Vice President

                               ARES III CLO LTD.
                               By: ARES CLO Management
                               Its: Investment Manager

                               By: /s/ David A. Sachs
                                  -----------------------------------------
                                    Name: David A. Sachs
                                    Title: Vice President

                               ARES IV CLO LTD.

                               By: ARES CLO Management IV, L.P.
                               Its: Investment Manager

                               By: /s/ David A. Sachs
                                  -----------------------------------------
                                    Name: David A. Sachs
                                    Title: Vice President

                               ARES LEVERAGED INVEST. FUND II, L.P.
                               By: ARES Management II, L.P.
                               Its: General Partner

                               By: /s/ David A. Sachs
                                  -----------------------------------------
                                    Name: David A. Sachs
                                    Title: Vice President

                                       5

<PAGE>

                               AVALON CAPITAL LTD.
                               By: INVESCO Senior Secured Management, Inc.
                                   As Portfolio Advisor

                               By: /s/ Thomas H. B. Ewald
                                  -----------------------------------------
                                    Name: Thomas H.B. Ewald
                                    Title: Authorized Signatory

                               AVALON CAPITAL LTD. II
                               By: INVESCO Senior Secured Management, Inc.
                                   As Portfolio Advisor

                               By: /s/ Thomas H. B. Ewald
                                  -----------------------------------------
                                    Name: Thomas H.B. Ewald
                                    Title: Authorized Signatory

                               BNP PARIBAS

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

                               BANK ONE, NA [Main Office Chicago]

                               By: /s/
                                  -----------------------------------------
                                    Name:
                                    Title:

                               BANK OF MONTREAL

                               By: /s/ S. Valia
                                  -----------------------------------------
                                    Name: S. Valia
                                    Title: Managing Director

                                       6

<PAGE>

                               BANK OF NEW YORK

                               By: /s/ Kenneth P. Sneider, Jr.
                                  -----------------------------------------
                                    Name: Kenneth P. Sneider, Jr.
                                    Title: Vice President

                               BANK OF NOVA SCOTIA

                               By: /s/ T.M. Pitcher
                                  -----------------------------------------
                                    Name: T.M. Pitcher
                                    Title: Authorized Signatory

                               BAVARIA TRR CORPORATION

                               By: /s/
                                  -----------------------------------------
                                    Name:
                                    Title:

                               BEAR STEARNS CORPORATE LENDING INC.

                               By: /s/ Victor F. Bulzacchelli
                                  -----------------------------------------
                                    Name: Victor F. Bulzacchelli
                                    Title: Managing Director

                               BLACK DIAMOND INTL. FUNDING, LTD.

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

                                       7

<PAGE>

                               CIBC, INC.

                               By: /s/ Joan S. Griffin
                                  -----------------------------------------
                                    Name: Joan S. Griffin
                                    Title: Executive Director
                                           CIBC World Market Corp.,
                                               As Agent

                               CARLYLE HIGH YIELD PARTNERS II, LTD.

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

                               CARLYLE HIGH YIELD PARTNERS III, LTD.

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

                               CHARTER VIEW PORTFOLIO
                               By: INVESCO Senior Secured Management, Inc.
                                   As Investment Advisor

                               By: /s/ Thomas H.B. Ewald
                                  -----------------------------------------
                                    Name: Thomas H.B. Ewald
                                    Title: Authorized Signatory

                               CHASE MANHATTAN BANK

                               By: /s/ Robert T. Sacks
                                  -----------------------------------------
                                    Name: Robert T. Sacks
                                    Title: Managing Director

                                       8

<PAGE>

                               CITADEL HILL 2000 LTD.

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

                               COLUMBUS LOAN FUNDING, LTD.
                               By: Travelers Asset Management International
                                   Company LLC

                               By: /s/ Allen R. Cantrell
                                  -----------------------------------------
                                    Name: Allen R. Cantrell
                                    Title: Investment Officer

                               CREDIT LYONNAIS NEW YORK BRANCH

                               By: /s/ Scott R. Chappelka
                                  -----------------------------------------
                                    Name: Scott R. Chappelka
                                    Title: Vice President

                               CYPRESS TREE INVESTMENT PARTNERS I

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

                               CYPRESS TREE INVESTMENT PARTNERS II

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

                                       9

<PAGE>

                               DRESDNER BANK AG, New York and Grand
                               Cayman Branches

                               By: /s/ Jane A. Majeski
                                  -----------------------------------------
                                    Name: Jane A. Majeski
                                    Title: First Vice President

                               By: /s/ Michael S. Greenberg
                                  -----------------------------------------
                                    Name: Michael S. Greenberg
                                    Title: Assistant Vice President

                               ELC (CAYMAN) LTD. 2000-1
                               By: First Union Institutional Debt
                                   Management Inc., its
                                   Collateral Manager

                               By: /s/ William A. Hayes
                                  -----------------------------------------
                                    Name: William A. Hayes
                                    Title: Director

                               EATON VANCE CDO II, LTD.
                               By: EATON VANCE MANAGEMENT
                                   AS INVESTMENT ADVISOR

                               By: /s/ Payson F. Swaffield
                                  -----------------------------------------
                                    Name: Payson F. Swaffield
                                    Title: Vice President

                               EATON VANCE CDO III, LTD.
                               By: EATON VANCE MANAGEMENT
                                   AS INVESTMENT ADVISOR

                               By: /s/ Payson F. Swaffield
                                  -----------------------------------------
                                    Name: Payson F. Swaffield
                                    Title: Vice President

                               EATON VANCE INSTITUTIONAL SENIOR
                                 LOAN FUND
                               By: EATON VANCE MANAGEMENT
                                   AS INVESTMENT ADVISOR

                               By: /s/ Payson F. Swaffield
                                  -----------------------------------------
                                    Name: Payson F. Swaffield
                                    Title: Vice President

                                       10
<PAGE>

                               EATON VANCE SENIOR INCOME TRUST
                               By: EATON VANCE MANAGEMENT
                                   AS INVESTMENT ADVISOR

                               By: /s/ Payson F. Swaffield
                                  -----------------------------------------
                                    Name: Payson F. Swaffield
                                    Title: Vice President

                               ERSTE BANK

                               By: /s/ Arciree Hoyanessian
                                  -----------------------------------------
                                    Name: Arciree Hoyanessian
                                    Title: Director

                               FIDELITY ADV. SERIES II HIF

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

                               FIDELITY II:  ADV. FL. RATE HIGH INC. FD.

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

                               FIRST DOMINION FUNDING III

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

                                       11
<PAGE>

                               FIRST UNION NATIONAL BANK N.C.

                               By: /s/ Constantin E. Chepurney
                                  -----------------------------------------
                                    Name: Constantin E. Chepurney
                                    Title: Senior Vice President

                               FLAGSHIP CLO

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

                               FLAGSHIP CLO 2001-1

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

                               FLEET NATIONAL BANK

                               By: /s/ Luanne T. Smith
                                  -----------------------------------------
                                    Name: Luanne T. Smith
                                    Title: Vice President

                               FRANKLIN FLOAT. RATE MASTER SERIES

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

                                       12
<PAGE>

                               FUJI BANK, LIMITED

                               By: /s/ John D. Doyle
                                  -----------------------------------------
                                    Name: John D. Doyle
                                    Title:

                               GENERAL ELECTRIC CAPITAL CORP.

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

                               GRAYSON & CO.
                               By: Boston Management Research
                                   As Investment Advisor

                               By: /s/ Payson F. Swaffield
                                  -----------------------------------------
                                    Name: Payson F. Swaffield
                                    Title: Vice President

                               GREAT POINT CLO 1999-1 LTD.
                               By: Sankaty Advisors, Inc.
                                   As Collateral Manager

                               By: /s/ Diane J. Exeter
                                  -----------------------------------------
                                    Name: Diane J. Exeter
                                    Title: Managing Director, Portfolio
                                              Manager

                               HSBC BANK USA

                               By: /s/ Thomas J. Crowley
                                  -----------------------------------------
                                    Name: Thomas J. Crowley
                                    Title: Vice President

                                       13
<PAGE>

                               KZH CNC LLC

                               By: /s/ Susan Lee
                                  -----------------------------------------
                                    Name: Susan Lee
                                    Title: Authorized Agent

                               KZH CYPRESS TREE-1 LLC

                               By: /s/ Susan Lee
                                  -----------------------------------------
                                    Name: Susan Lee
                                    Title: Authorized Agent

                               KZH PONDVIEW LLC

                               By: /s/ Susan Lee
                                  -----------------------------------------
                                    Name: Susan Lee
                                    Title: Authorized Agent

                               KATONAH I, LTD.

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

                               KEMPER FLOATING RATE FUND

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

                                       14
<PAGE>

                               KEYPORT LIFE INSURANCE COMPANY
                               By: Stein Roe & Farnham Incorporated
                                   As Agent

                               By: /s/ James R. Fellows
                                  -----------------------------------------
                                    Name: James R. Fellows
                                    Title: Senior Vice President &
                                             Portfolio Manager

                               LIBERTY-STEIN ROE ADV. FLOAT. RT. ADV.
                               By: Stein Roe & Farnham Incorporated
                                   As Agent

                               By: /s/ James R. Fellows
                                  -----------------------------------------
                                    Name: James R. Fellows
                                    Title: Senior Vice President &
                                             Portfolio Manager

                               ML CLO XV PILGRIM AMER (CAYMAN), LTD.

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

                               MSDW PRIME INCOME TRUST

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

                               MADISON AVENUE CDO I LIMITED
                               By: Metropolitan Life Insurance Company
                                   As Collateral Manager

                               By: /s/
                                  -----------------------------------------
                                    Name:
                                    Title: Authorized Signatory

                                       15
<PAGE>

                               MAPLEWOOD (CAYMAN) LIMITED

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

                               MASSACHUSETTS MUTUAL LIFE
                                 INSURANCE

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

                               METROPOLITAN LIFE INSURANCE COMPANY

                               By: /s/
                                  -----------------------------------------
                                    Name:
                                    Title: Director

                               MOUNTAIN CLO TRUST II

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

                               MOUNTAIN CAPITAL CLO II LTD.

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

                                       16
<PAGE>

                               MUIRFIELD TRADING LLC

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

                               NATEXIS BANQUE POPULAIRES

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

                               NATIONAL CITY BANK

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

                               NOMURA BOND & LOAN FUND
                               By: THE TOYO TRUST & BANKING CO., LTD.
                                   AS TRUSTEE
                                   By: NOMURA CORPORATE RESEARCH AND
                                       ASSET MANAGEMENT, INC.,
                                       ATTORNEY IN FACT

                               By: /s/ Richard W. Stewart
                                  -----------------------------------------
                                    Name: Richard W. Stewart
                                    Title: Director

                               NORSE CBO, LTD.

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

                                       17
<PAGE>

                               NORTH AMERICAN SR. FLOATING RATE
                               FUND

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

                               NORTHWOODS CAPITAL II, LIMITED

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

                               OLYMPIC FUNDING TRUST SERIES 1999-1

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

                               OLYMPIC FUNDING TRUST SERIES 1999-1

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

                               PPM SPYGLASS FUNDING TRUST

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

                                       18
<PAGE>

                               PILGRIM CLO 1999-1 LTD.

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

                               PINEHURST TRADING, INC.

                               By: /s/ Kelly C. Walker
                                  -----------------------------------------
                                  Name: Kelly C. Walker
                                  Title: Vice President

                               PROMETHEUS INVESTMENT FUNDING 1
                               LTD.
                               By: CPF ASSET ADVISORY, L.P.
                                   AS INVESTMENT MANAGER

                               By: /s/ Irv Roa
                                  -----------------------------------------
                                  Name: Irv Roa
                                  Title: Associate Director

                               By: /s/ Timothy L. Harrod
                                  -----------------------------------------
                                  Name: Timothy L. Harrod
                                  Title: Director

                               PROVIDENT BANK

                               By: /s/ Steve Touvelle
                                  -----------------------------------------
                                  Name: Steve Touvelle
                                  Title: Vice President

                               SRF 2000 LLC

                               By: /s/ Kelly C. Walker
                                  -----------------------------------------
                                  Name: Kelly C. Walker
                                  Title: Vice President

                                       19
<PAGE>

                               SAWGRASS TRADING LLC

                               By: /s/ Kelly Walker
                                  -----------------------------------------
                                    Name: Kelly Walker
                                    Title: Vice President

                               SEABOARD CLO 2000 LTD.

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

                               SENIOR DEBT PORTFOLIO
                               By: Boston Management and Research
                                   as Investment Advisor

                               By: /s/ Payson F. Swaffield
                                  -----------------------------------------
                                    Name: Payson F. Swaffield
                                    Title: Vice President

                               SIAM COMMERCIAL BK., PUBLIC CO. LTD.

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

                               SIERRA CLO I LTD.
                               By: Centre Pacific, LLC, its
                                   Manager

                               By: /s/ John M. Casparian
                                  -----------------------------------------
                                    Name: John M. Casparian
                                    Title: Chief Operating Officer

                                       20
<PAGE>

                               STEIN ROE & FARNHAM CLO I LTD.
                               By: Stein Roe & Farnham Incorporated, as
                                   Portfolio Manager

                               By: /s/ James R. Fellows
                                  -----------------------------------------
                                    Name: James R. Fellows
                                    Title: Senior Vice President &
                                           Portfolio Manager

                               SUFFIELD CLO, LIMITED

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

                               SUMITOMO TRUST & BANKING CO., LTD.,
                               NEW YORK BRANCH

                               By: /s/ Stephanie M. Fowler
                                  -----------------------------------------
                                    Name: Stephanie M. Fowler
                                    Title: Vice President

                               TORONTO DOMINION (NEW YORK) INC.

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

                               TORONTO DOMINION (NEW YORK) INC.

                               By: /s/ Dana Schwalie
                                  -----------------------------------------
                                    Name: Dana Schwalie
                                    Title: Vice President

                                       21
<PAGE>

                               TRAVELERS CORPORATE LOAN FUND
                               By: Travelers Asset Management International
                                   Company LLC

                               By: /s/ Allen R. Cantrell
                                  -----------------------------------------
                                    Name: Allen R. Cantrell
                                    Title: Investment Officer

                               UNION BANK OF CALIFORNIA, N.A.

                               By: /s/ David W. Kinkela
                                  -----------------------------------------
                                    Name: David W. Kinkela
                                    Title: Vice President

                               UNITED STATES TRUST COMPANY

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

                               VAN KAMPEN CLO I, LIMITED
                               By: VAN KAMPEN MANAGEMENT, INC.,
                                   As Collateral Manager

                               By: /s/ Darvin D. Pierce
                                  -----------------------------------------
                                    Name: Darvin D. Pierce
                                    Title: Principal

                               VAN KAMPEN CLO II, LIMITED
                               By: VAN KAMPEN MANAGEMENT, INC.,
                                   As Collateral Manager

                               By: /s/ Darvin D. Pierce
                                  -----------------------------------------
                                    Name: Darvin D. Pierce
                                    Title: Principal

                                       22
<PAGE>

                               VAN KAMPEN PRIME RATE INCOME TRUST
                               By: Van Kampen Investment Advisory Corp.

                               By: /s/ Darvin D. Pierce
                                  -----------------------------------------
                                    Name: Darvin D. Pierce
                                    Title: Principal

                               VAN KAMPEN SENIOR INCOME TRUST
                               By: Van Kampen Investment Advisory Corp.

                               By: /s/ Darvin D. Pierce
                                  -----------------------------------------
                                    Name: Darvin D. Pierce
                                    Title: Principal

                               VAR. INS. PROD. FD. II:  AST. MGR. GRO.
                               POR.

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

                               VAR. INS. PROD. FUND II:  AST. MGR.
                               PORTF.

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

                               WACHOVIA BANK, N.A.

                               By: /s/ Christa P. Holland
                                  -----------------------------------------
                                    Name: Christa P. Holland
                                    Title: Vice President

                                       23
<PAGE>

                               WEBSTER BANK

                               By: /s/ Juliana B. Dalton
                                  -----------------------------------------
                                    Name: Juliana B. Dalton
                                    Title: Vice President

                               WINGED FOOT FUNDING TRUST

                               By: /s/ Kelly C. Walker
                                  -----------------------------------------
                                    Name: Kelly C. Walker
                                    Title: Authorized Agent

                                       24

<PAGE>

                                                      Exhibit A to the Amendment

Amendment to Section 2

                  Section 2. LOANS, ETC.

                  2.01 US$ LOANS; US$-CANADIAN LOANS; MULTI-CURRENCY LOANS; C$
LOANS; TRANCHE A TERM LOANS; TRANCHE B TERM LOANS. (a) Subject to the terms and
conditions of this Agreement, (i) each US$ Lender severally agrees to continue
and make loans to the Borrowers in Dollars ("US$ LOANS") during the Commitment
Period in an aggregate principal amount at any one time outstanding up to but
not exceeding the amount of the US$ Commitment of such US$ Lender as in effect
from time to time, PROVIDED that in no event shall the aggregate outstanding
principal amount of all US$ Loans, together with the aggregate amount of all
Letter of Credit Liabilities under the US$ Commitments outstanding, exceed the
aggregate amount of the US$ Commitments as in effect from time to time, (ii)
each US$-Canadian Lender severally agrees to continue and make loans to the
Borrowers in Dollars or Canadian Dollars ("US$-CANADIAN LOANS") during the
Commitment Period in an aggregate principal amount at any one time outstanding
up to but not exceeding the amount of the US$-Canadian Commitment of such
US$-Canadian Lender as in effect from time to time, PROVIDED that in no event
shall the aggregate outstanding principal amount of all US$-Canadian Loans,
together with the aggregate outstanding principal amount of all C$ Loans, exceed
the aggregate amount of the US$-Canadian Commitments as in effect from time to
time, (iii) each Multi-Currency Lender severally agrees to continue and make
loans to the Borrowers in any Multi-Currency ("MULTI-CURRENCY LOANS") during the
Commitment Period in an aggregate principal amount at any one time outstanding
up to but not exceeding the amount of the Multi-Currency Commitment of such
Multi-Currency Lender as in effect from time to time, provided that in no event
shall the aggregate outstanding principal amount of all Multi-Currency Loans,
together with the aggregate amount of all Letter of Credit Liabilities under the
Multi-Currency Commitments outstanding, exceed the aggregate amount of the
Multi-Currency Commitments as in effect from time to time, (iv) each Canadian
Lender severally agrees to continue and make C$ Loans to the Canadian Borrower
in Canadian Dollars during the Commitment Period in accordance with the terms
and provisions of Annex A hereto, (v) each Tranche A Term Lender severally
agrees to make a term loan to the Company in Dollars ("TRANCHE A TERM LOANS") on
the Effective Date in an amount not to exceed the amount of the Tranche A Term
Commitment of such Tranche A Term Lender and (vi) each Tranche B Term Lender
severally agrees to make a term loan to the Company in Dollars ("TRANCHE B TERM
LOANS") on the Effective Date in an amount not to exceed the amount of the
Tranche B Term Commitment of such Tranche B Term Lender. Subject to the terms
and conditions of this Agreement, during the Commitment Period, the Borrowers
may (x) borrow, repay and reborrow the US$ Loans, the Dollar-denominated
US$-Canadian Loans and the Dollar-denominated Multi-Currency Loans by means of
ABR Loans and Eurocurrency Loans and (y) convert the US$ Loans, the
Dollar-denominated US$-Canadian Loans, the Dollar-denominated Multi-Currency
Loans, the Tranche A Term Loans or the Tranche B Term Loans of one Type into
Loans of the other Type (as provided in Section 3.02(a) hereof) or continue
Eurocurrency Loans for subsequent Interest Periods. Unless otherwise provided
herein, all Multi-Currency Loans and all US$-Canadian Loans, other than
Dollar-denominated Multi-Currency Loans and Dollar-denominated US$-Canadian
Loans, shall be made, maintained and continued as Eurocurrency Loans.

<PAGE>

                  (b) The Loans outstanding under the Existing Credit Agreement
on the Effective Date (the "EXISTING LOANS") shall continue to be outstanding
and shall be continued under this Agreement.

                  2.02  REDUCTIONS OF COMMITMENTS.

                  (a) MANDATORY. The US$ Commitments, the US$-Canadian
Commitments and Multi-Currency Commitments shall terminate on the Commitment
Termination Date. In addition, the US$ Commitments, the US$-Canadian Commitments
and Multi-Currency Commitments shall be reduced as provided in Section 3.02(c).

                  (b) OPTIONAL. The Company shall have the right to terminate or
reduce the unused US$ Commitments, US$-Canadian Commitments and Multi-Currency
Commitments (for which purpose use of the US$ Commitments and Multi-Currency
Commitments shall be deemed to include the aggregate amount of Letter of Credit
Liabilities under the US$ Commitment or the Multi-Currency Commitment, as the
case may be) at any time or from time to time, provided that (i) the Company
shall give notice of each such termination or reduction to the Administrative
Agent as provided in Section 5.05 hereof and (ii) each partial reduction shall
be in an aggregate amount at least equal to $1,000,000.

                  (c) NO REINSTATEMENT. US$ Commitments, US$-Canadian
Commitments and Multi-Currency Commitments once terminated or reduced may not be
reinstated.

                  2.03 FEES. The Company shall pay to the Administrative Agent
for the account of each US$ Lender, US$-Canadian Lender or Multi-Currency Lender
commitment fees in Dollars on the daily average unused amount of such Lender's
US$ Commitment, US$-Canadian Commitment or Multi-Currency Commitment, as the
case may be, (for which purpose, (i) the aggregate amount of any Letter of
Credit Liabilities under the US$ Commitments or the Multi-Currency Commitments
shall be deemed to be a PRO RATA (based on the US$ Commitments or the
Multi-Currency Commitments, as the case may be) use of each Lender's US$
Commitment or Multi-Currency Commitment, as the case may be, and (ii) the daily
average amount of each US$-Canadian Lender's US$-Canadian Commitment shall be
determined after giving effect to the allocation of the Canadian Commitments and
the US$-Canadian Commitments pursuant to subsection 2.6 of Annex A hereto) for
the period from the Effective Date to and including the earlier of the date the
Revolving Commitments are terminated and the Commitment Termination Date, at a
rate per annum equal to the Applicable Commitment Fee Rate in effect from time
to time. Accrued commitment fees under this Section 2.03 shall be payable on the
Quarterly Dates and on the earlier of the date the Revolving Commitments are
terminated and the Commitment Termination Date. The Company shall pay to Chase
on the Effective Date syndication, agency and additional commitment fees in the
amounts heretofore mutually agreed in writing. The Company shall pay to the
Administrative Agent on the Effective Date and on each anniversary thereof, so
long as any of the Commitments are in effect and until payment in full of all
Loans hereunder, all interest thereon and all other amounts payable hereunder,
an annual agency fee in the amount heretofore mutually agreed in writing.

                                       2
<PAGE>

                  2.04 LENDING OFFICES. The Loans of each Type made by each
Lender shall be made and maintained at such Lender's Applicable Lending Office
for Loans of such Type.

                  2.05 SEVERAL OBLIGATIONS: REMEDIES INDEPENDENT. The failure of
any Lender to make any Loan to be made by it on the date specified therefor
shall not relieve any other Lender of its obligation to make its Loan on such
date, but neither the Administrative Agent nor any Lender shall be responsible
for the failure of any other Lender to make a Loan to be made by such other
Lender. The amounts payable by the Borrowers at any time hereunder and under the
Notes to each Lender shall be a separate and independent debt and each Lender
shall be entitled to protect and enforce its rights arising out of this
Agreement and the Notes, and it shall not be necessary for any other Lender or
the Administrative Agent to consent to, or be joined as an additional party in,
any proceedings for such purposes.

                  2.06 NOTES. The Loans made by each Lender under its US$
Commitment, US$-Canadian Commitment, Multi-Currency Commitment, Tranche A Term
Commitment or Tranche B Term Commitment shall be evidenced by a single
promissory note of the relevant Borrower (each, a "NOTE") in substantially the
form of Exhibit A-1 (in the case of Revolving Loans) or Exhibit A-2 (in the case
of Term Loans) hereto, dated the Effective Date, payable to such Lender in a
principal amount equal to such Commitment as in effect on the Effective Date and
otherwise duly completed. Each Lender is hereby authorized by the Company to
endorse on the schedule (or a continuation thereof) attached to each Note of
such Lender, to the extent applicable, the date, amount and Type of and the
Interest Period (if any) for each Loan made by such Lender to any Borrower under
the relevant Commitment, and the date and amount of each payment or prepayment
of principal of such Loan received by such Lender, provided that any failure by
such Lender to make any such endorsement shall not affect the obligations of the
relevant Borrower under such Note or hereunder in respect of such Loan.

                  2.07 USE OF PROCEEDS. The proceeds of the Loans shall be used
for the general corporate purposes of the Company and its Subsidiaries,
including, without limitation, the making of Permitted Acquisitions and capital
expenditures and the refinancing of existing Indebtedness of the Company and its
Subsidiaries. The proceeds of the Term Loans may also be used on the Effective
Date to prepay Revolving Loans. Neither the Administrative Agent nor any Lender
shall have any responsibility as to the use of any of the proceeds of any of the
Loans or Letters of Credit.

                  2.08 LETTERS OF CREDIT. Subject to the terms and conditions of
this Agreement, the US$ Commitments and the Multi-Currency Commitments may be
utilized, upon the request of any Borrower, in addition to the Loans provided
for by Section 2.01 hereof, by the issuance by the Issuing Bank of standby
letters of credit (collectively with the Existing Letters of Credit, "LETTERS OF
CREDIT") for the account of the relevant Borrower or, in the event that the
Borrower is the Company, for the account of such of its Subsidiaries as the
Company may specify, PROVIDED that in no event shall (i) the aggregate amount of
all Letter of Credit Liabilities under the US$ Commitments or the Multi-Currency
Commitments, together with the aggregate outstanding principal amount of the US$
Loans or the Multi-Currency Loans, as the case may be, exceed the aggregate
amount of the US$ Commitments or the Multi-Currency Commitments, as the case

                                       3
<PAGE>

may be, as in effect from time to time, (ii) the aggregate outstanding amount of
all Letter of Credit Liabilities exceed $45,000,000 and (iii) the expiration
date of any Letter of Credit extend beyond the earlier of the Commitment
Termination Date and the date one year following the issuance of such Letter of
Credit (provided that any Letter of Credit with a one-year tenor may provide for
the renewal thereof for additional one-year periods, which periods shall in any
event not extend beyond the Commitment Termination Date). On the Effective Date,
all Existing Letters of Credit shall automatically, without any action on the
part of any Person, be deemed to be Letters of Credit issued and outstanding
hereunder (with the Existing Letters of Credit denominated in Dollars being
deemed to be issued under the US$ Commitments and the Existing Letters of Credit
denominated in other currencies being deemed to be issued under the
Multi-Currency Commitments).

                  The following additional provisions shall apply to Letters of
Credit:

                  (a) Each Borrower shall give the Administrative Agent (or if
         the Letter of Credit is to be issued under the Multi-Currency
         Commitments, the Multi-Currency Payment Agent) at least three Business
         Days' irrevocable prior notice (effective upon receipt) specifying the
         Business Day (which shall be no later than 5 days preceding the
         Commitment Termination Date) on which each Letter of Credit is to be
         issued and the account party or parties therefor and describing in
         reasonable detail the proposed terms of such Letter of Credit
         (including the beneficiary thereof) and the nature of the transactions
         or obligations proposed to be supported thereby. Any Letter of Credit
         to be issued in a currency other than Dollars shall be issued under the
         Multi-Currency Commitments. Upon receipt of any such notice, the
         Administrative Agent or the Multi-Currency Payment Agent, as the case
         may be, shall advise the Issuing Bank of the contents thereof.

                  (b) On each day during the period commencing with the issuance
         by the Issuing Bank of any Letter of Credit and until such Letter of
         Credit shall have expired or been terminated, the US$ Commitment or
         Multi-Currency Commitment of each Lender shall be deemed to be utilized
         for all purposes of this Agreement in an amount equal to such Lender's
         US$ Commitment Percentage or Multi-Currency Commitment Percentage, as
         the case may be, of the then undrawn stated amount of such Letter of
         Credit. Each Lender (other than the Issuing Bank) agrees that, upon the
         issuance of any Letter of Credit hereunder, it shall automatically
         acquire a participation in the Issuing Bank's rights and obligations
         under such Letter of Credit in an amount equal to such Lender's US$
         Commitment Percentage or Multi-Currency Commitment Percentage, as the
         case may be, of such rights and obligations, and each Lender (other
         than the Issuing Bank) thereby shall automatically absolutely,
         unconditionally and irrevocably assume, as primary obligor and not as
         surety, and be unconditionally obligated to the Issuing Bank to pay and
         discharge when due, its US$ Commitment Percentage or Multi-Currency
         Commitment Percentage of the Issuing Bank's obligation to pay drawings
         under such Letter of Credit.

                  (c) Upon receipt from the beneficiary of any Letter of Credit
         of any demand for payment under such Letter of Credit, the Issuing Bank
         shall promptly notify the relevant Borrower (through the Administrative
         Agent or the Multi-Currency Payment Agent, as the case may be) of the
         amount to be paid by the Issuing Bank as a result of such demand

                                       4
<PAGE>

         and the date on which payment is to be made by the Issuing Bank to such
         beneficiary in respect of such demand. Notwithstanding the identity of
         the account party of any Letter of Credit, the relevant Borrower hereby
         unconditionally agrees to pay and reimburse the Administrative Agent or
         the Multi-Currency Payment Agent, as the case may be, for account of
         the Issuing Bank for the amount of each demand for payment under such
         Letter of Credit that is in substantial compliance with the provisions
         of such Letter of Credit at or prior to the date on which payment is to
         be made by the Issuing Bank to the beneficiary thereunder, without
         presentment, demand, protest or other formalities of any kind.

                  (d) Forthwith upon its receipt of a notice referred to in
         paragraph (c) of this Section 2.08, the relevant Borrower shall advise
         the Administrative Agent or the Multi-Currency Payment Agent, as the
         case may be, whether or not such Borrower intends to borrow hereunder
         to finance its obligation to reimburse the Issuing Bank for the amount
         of the related demand for payment and, if it does, submit a notice of
         such borrowing as provided in Section 5.05 hereof.

                  (e) Each Lender (other than the Issuing Bank) shall pay to the
         Administrative Agent or the Multi-Currency Payment Agent, as the case
         may be, for account of the Issuing Bank at an account in New York, New
         York specified by the Administrative Agent (or the Multi-Currency
         Payment Agent, as the case may be) in Dollars and in immediately
         available funds the amount of such Lender's US$ Commitment Percentage
         or Multi-Currency Commitment Percentage, as the case may be, of any
         payment under a Letter of Credit issued under the US$ Commitments or
         the Multi-Currency Commitments, as the case may be, upon notice by the
         Issuing Bank (through the Administrative Agent) to such Lender
         requesting such payment and specifying such amount. Each such Lender's
         obligation to make such payment to the Administrative Agent or the
         Multi-Currency Payment Agent, as the case may be, for account of the
         Issuing Bank under this paragraph (e), and the Issuing Bank's right to
         receive the same, shall be absolute and unconditional and shall not be
         affected by any circumstance whatsoever (other than gross negligence or
         wilful misconduct of the Issuing Bank), including, without limitation,
         the failure of any other Lender to make its payment under this
         paragraph (e), the financial condition of the Company or the Borrowers
         (or any other account party), any failure to satisfy any condition
         precedent to any Loan, the existence of any Default or the termination
         of the Commitments. Each such payment to the Issuing Bank shall be made
         without any offset, abatement, withholding or reduction whatsoever. If
         any Lender shall default in its obligation to make any such payment to
         the Administrative Agent or the Multi-Currency Payment Agent, as the
         case may be, for account of the Issuing Bank, for so long as such
         default shall continue the Administrative Agent or the Multi-Currency
         Payment Agent, as the case may be, may at the request of the Issuing
         Bank withhold from any payments received by the Administrative Agent or
         the Multi-Currency Payment Agent, as the case may be, under this
         Agreement or any Note for account of such Lender the amount so in
         default and, to the extent so withheld, pay the same to the Issuing
         Bank in satisfaction of such defaulted obligation.

                                       5
<PAGE>

                  (f) Upon the making of each payment by a Lender to the Issuing
         Bank pursuant to paragraph (e) above in respect of any Letter of
         Credit, such Lender shall, automatically and without any further action
         on the part of the Administrative Agent (or the Multi-Currency Payment
         Agent, as the case may be), the Issuing Bank or such Lender, acquire
         (i) a participation in an amount equal to such payment in the
         Reimbursement Obligation owing to the Issuing Bank hereunder and under
         the Letter of Credit Documents relating to such Letter of Credit and
         (ii) a participation in a percentage equal to such Lender's US$
         Commitment Percentage or Multi-Currency Percentage, as the case may be,
         in any interest or other amounts payable by the relevant Borrower
         hereunder and under such Letter of Credit Documents in respect of such
         Reimbursement Obligation (other than the commissions, charges, costs
         and expenses payable to the Issuing Bank pursuant to paragraph (g) of
         this Section 2.08). Upon receipt by the Issuing Bank from or for
         account of the relevant Borrower of any payment in respect of any
         Reimbursement Obligation or any such interest or other amount
         (including by way of setoff or application of proceeds of any
         collateral security) the Issuing Bank shall promptly pay to the
         Administrative Agent (or the Multi-Currency Payment Agent, as the case
         may be) for account of each Lender entitled thereto such Lender's US$
         Commitment Percentage or Multi-Currency Percentage, as the case may be,
         of such payment, each such payment by the Issuing Bank to be made in
         the same money and funds in which received by the Issuing Bank. In the
         event any payment received by the Issuing Bank and so paid to the
         Lenders hereunder is rescinded or must otherwise be returned by the
         Issuing Bank, each Lender shall, upon the request of the Issuing Bank
         (through the Administrative Agent or the Multi-Currency Payment Agent,
         as the case may be), repay to the Issuing Bank (through the
         Administrative Agent or the Multi-Currency Payment Agent, as the case
         may be) the amount of such payment paid to such Lender, with interest
         at the rate specified in paragraph (j) of this Section 2.08.

                  (g) The Company shall pay to the Administrative Agent or the
         Multi-Currency Payment Agent, as the case may be, for account of the
         Lenders (ratably in accordance with their respective US$ Commitment
         Percentages or Multi-Currency Percentages, as the case may be) a letter
         of credit fee in Dollars in respect of each Letter of Credit in an
         amount equal to the Applicable L/C Percentage of the daily average
         undrawn stated amount of such Letter of Credit for the period from and
         including the date of issuance of such Letter of Credit (i) in the case
         of a Letter of Credit that expires in accordance with its terms, to and
         including such expiration date and (ii) in the case of a Letter of
         Credit that is drawn in full or is otherwise terminated other than on
         the stated expiration date of such Letter of Credit, to but excluding
         the date such Letter of Credit is drawn in full or is terminated (such
         fee to be non-refundable, to be paid in arrears on each Quarterly Date
         and on the Commitment Termination Date and on the date of expiry or
         termination or full utilization of such Letter of Credit and to be
         calculated for any day after giving effect to any payments made under
         such Letter of Credit on such day). In addition, the Company shall pay
         to the Administrative Agent or the Multi-Currency Payment Agent, as the
         case may be, for account of the Issuing Bank a fronting fee in Dollars
         in respect of each Letter of Credit in an amount equal to 0.25% per
         annum of the daily average undrawn stated amount of such Letter of
         Credit for the period from and including the date of issuance of such
         Letter of Credit (i) in the case of a Letter of Credit that expires in
         accordance with

                                       6
<PAGE>

         its terms, to and including such expiration date and (ii) in the case
         of a Letter of Credit that is drawn in full or is otherwise terminated
         other than on the stated expiration date of such Letter of Credit, to
         but excluding the date such Letter of Credit is drawn in full or is
         terminated (such fee to be non-refundable, to be paid in arrears on
         each Quarterly Date and on the Commitment Termination Date and to be
         calculated for any day after giving effect to any payments made under
         such Letter of Credit on such day) plus all commissions, charges,
         costs and expenses in the amounts customarily charged by the Issuing
         Bank from time to time in like circumstances with respect to the
         issuance of each Letter of Credit and drawings and other transactions
         relating thereto.

                  (h) Promptly following the end of each calendar month, the
         Issuing Bank shall deliver (through the Administrative Agent or the
         Multi-Currency Payment Agent, as the case may be) to each Lender and
         each Borrower a notice describing the aggregate amount of all Letters
         of Credit outstanding at the end of such month. Upon the request of any
         Lender from time to time, the Issuing Bank shall deliver any other
         information reasonably requested by such Lender with respect to each
         Letter of Credit then outstanding.

                  (i) The issuance by the Issuing Bank of each Letter of Credit
         shall, in addition to the conditions precedent set forth in Section 7
         hereof, be subject to the conditions precedent that (i) such Letter of
         Credit shall be in such form, contain such terms and support such
         transactions as shall be satisfactory to the Issuing Bank consistent
         with its then current practices and procedures with respect to letters
         of credit of the same type, (ii) such Letter of Credit shall be
         denominated in Dollars or a Multi-Currency and (iii) the relevant
         Borrower shall have executed and delivered such applications,
         agreements and other instruments relating to such Letter of Credit as
         the Issuing Bank shall have reasonably requested consistent with its
         then current practices and procedures with respect to letters of credit
         of the same type, provided that in the event of any conflict between
         any such application, agreement or other instrument and the provisions
         of this Agreement or any Security Document, the provisions of this
         Agreement and the Security Documents shall control.

                  (j) To the extent that any Lender shall fail to pay any amount
         required to be paid pursuant to paragraph (e) or (f) of this Section
         2.08 on the due date therefor, such Lender shall pay interest to the
         Issuing Bank (through the Administrative Agent or the Multi-Currency
         Payment Agent, as the case may be) on such amount from and including
         such due date to but excluding the date such payment is made at a rate
         per annum equal to the Federal Funds Effective Rate or, in the case of
         any amount payable in a currency other than Dollars, the rate
         determined by the Administrative Agent or the Multi-Currency Payment
         Agent (in the case of Letters of Credit issued under the Multi-Currency
         Commitments) in its discretion as the appropriate rate for interbank
         settlements, PROVIDED that if such Lender shall fail to make such
         payment to the Issuing Bank within three Business Days of such due
         date, then, retroactively to the due date, such Lender shall be

                                       7
<PAGE>

         obligated to pay interest on such amount at the rate then payable by
         the relevant Borrower on such amount.

                  (k) The issuance by the Issuing Bank of any modification or
         supplement to any Letter of Credit hereunder shall be subject to the
         same conditions as are applicable under this Section 2.08 to the
         issuance of new Letters of Credit, and no such modification or
         supplement shall be issued hereunder unless either (i) the respective
         Letter of Credit affected thereby would have complied with such
         conditions had it originally been issued hereunder in such modified or
         supplemented form or (ii) each Lender shall have consented thereto.

The Company hereby indemnifies and holds harmless each Lender (including the
Issuing Bank, the Administrative Agent and the Multi-Currency Payment Agent from
and against any and all claims and damages, losses, liabilities, costs or
expenses that such Lender, the Administrative Agent or the Multi-Currency
Payment Agent may incur (or that may be claimed against such Lender, the
Administrative Agent or the Multi-Currency Payment Agent by any Person
whatsoever) by reason of or in connection with the execution and delivery or
transfer of or payment or refusal to pay by the Issuing Bank under any Letter of
Credit; PROVIDED that the Company shall not be required to indemnify any Lender,
the Administrative Agent or the Multi-Currency Payment Agent for any claims,
damages, losses, liabilities, costs or expenses to the extent, but only to the
extent, caused by (x) the willful misconduct or gross negligence of the Issuing
Bank in determining whether a request presented under any Letter of Credit
complied with the terms of such Letter of Credit or (y) in the case of the
Issuing Bank, its failure to pay under any Letter of Credit after the
presentation to it of a request strictly complying with the terms and conditions
of such Letter of Credit. Nothing in this Section 2.08 is intended to limit the
other obligations of any Borrower, any Lender, the Administrative Agent or the
Multi-Currency Payment Agent under this Agreement.

                  2.09 CURRENCY FLUCTUATIONS, ETC. (a) Not later than 1:00 p.m.,
New York City time, on each Calculation Date, the Multi-Currency Payment Agent
shall (i) determine the Exchange Rate as of such Calculation Date with respect
to (x) each Multi-Currency for which there are at such time outstanding
Multi-Currency Loans or Letters of Credit issued under the Multi-Currency
Commitments and (y) the Canadian Dollar if there are at such time outstanding
non-Dollar-denominated US$-Canadian Loans, and (ii) give notice thereof to the
Multi-Currency Lenders which have committed to make Multi-Currency Loans in each
such Multi-Currency, to the US$-Canadian Lenders which have committed to make
US$-Canadian Loans in Canadian Dollars and to the Company. The Exchange Rates so
determined shall become effective on the first Business Day immediately
following the relevant Calculation Date (a "RESET DATE") and shall remain
effective until the next succeeding Reset Date.

                  (b) Not later than 5:00 p.m., New York City time, on each
Reset Date, the Multi-Currency Payment Agent shall (i) determine (x) the Dollar
Equivalent of the Multi-Currency Loans or Letter of Credit Liabilities under the
Multi-Currency Commitments in each Multi-Currency then outstanding (after giving
effect to any Multi-Currency Loans to be made or repaid

                                       8
<PAGE>

on such date) and (y) the Dollar Equivalent of the non-Dollar-denominated
US$-Canadian Loans or Letter of Credit Liabilities under the US$-Canadian
Commitments and denominated in Canadian Dollars then outstanding (after giving
effect to any non-Dollar-denominated US$-Canadian Loans to be made or repaid on
such date)and (ii) notify the Multi-Currency Lenders or the US$-Canadian
Lenders, as the case may be, and the Company of the results of such
determination.

                  (c) If on any Reset Date, the Dollar Equivalent of the
aggregate principal amount of Multi-Currency Loans and Letters of Credit issued
under the Multi-Currency Commitments outstanding exceeds 105% of the aggregate
principal amount of the Multi-Currency Commitments, then the Company shall,
within three Business Days after notice thereof from the Multi-Currency Payment
Agent, prepay (in any Multi-Currency as selected by the Company) Multi-Currency
Loans in an aggregate amount such that, after giving effect thereto, the Dollar
Equivalent of all such Multi-Currency Loans, together with Letters of Credit
issued under the Multi-Currency Commitments, shall be equal to or less than such
aggregate amount of Multi-Currency Commitments (and in the event that after such
prepayment, the Dollar Equivalent of the outstanding stated amount of the
Letters of Credit issued under the Multi-Currency Commitments is more than such
aggregate amount of the Multi-Currency Commitments, the Company shall provide
cash cover for the difference by paying to the Multi-Currency Payment Agent
immediately available funds in an amount equal to such difference, which funds
shall be retained by the Multi-Currency Payment Agent in the Collateral Account
as such collateral security for such Letter of Credit Liabilities). If any such
prepayment occurs on a day which is not the last day of the then current
Interest Period with respect thereto, the Company shall pay to the
Multi-Currency Lenders such amounts, if any, as may be required pursuant to
Section 6.05.

                  (d) If on any Reset Date, the Dollars Equivalent of the
aggregate principal amount outstanding ("Outstanding Amount") of
Dollar-denominated and non-Dollar-denominated US$-Canadian Loans exceeds 105% of
the aggregate principal amount of the US$-Canadian Commitments, then the Company
shall, within three Business Days after notice thereof from the Multi-Currency
Payment Agent, prepay (in Dollars or Canadian Dollars as selected by the
Company) US$-Canadian Loans in an aggregate amount such that, after giving
effect thereto, the Dollar Equivalent of all such US$-Canadian Loans shall be
equal to or less than such aggregate amount of US$-Canadian Commitment. If any
such prepayment occurs on a day which is not the last day of the then current
Interest Period with respect thereto, the Company shall pay to the US$-Canadian
Lenders such amounts, if any, as may be required pursuant to Section 6.05.

                                       9
<PAGE>

Amendment to Section 3

                  Section 3.  BORROWINGS, CONVERSIONS AND PREPAYMENTS.

                  3.01 PROCEDURE FOR US$ LOAN BORROWING, US$-CANADIAN LOAN
BORROWING, TRANCHE A TERM LOAN BORROWING, TRANCHE B TERM LOAN BORROWING AND
MULTI-CURRENCY BORROWING. (a) Each Borrower shall give the Administrative Agent
or the Multi-Currency Payment Agent notice of each US$ Loan, US$-Canadian Loan,
Multi-Currency Loan, Tranche A Term Loan and Tranche B Term Loan to be made
hereunder as provided in Section 5.05 hereof.

                  (b) Not later than 12:00 p.m. New York time on the date
specified for each borrowing in Dollars hereunder, each US$ Lender,
US$-Canadian Lender, Multi-Currency Lender, Tranche A Term Lender or Tranche
B Term Lender shall make available the amount of the US$ Loan, US$-Canadian
Loan, Tranche A Term Loan or Tranche B Term Loan to be made by it on such
date to the Administrative Agent, at an account in New York, New York
specified by the Administrative Agent, in immediately available funds, for
account of such Borrower. The amount so received by the Administrative Agent
shall, subject to the terms and conditions of this Agreement, be made
available to the Borrower by depositing the same, in immediately available
funds, in an account of the Borrower designated by the Borrower and
maintained with Chase in New York, New York.

                  (c) Not later than 11:00 a.m. London time on the date
specified for each such borrowing hereunder, each Multi-Currency Lender or,
if a US$-Canadian Loan is being made in Canadian Dollars, each US$-Canadian
Lender shall make available the amount of the Multi-Currency Loan or
US$-Canadian Loan, as the case may be, to be made by it on such date to the
Multi-Currency Payment Agent, at an account in London specified by the
Multi-Currency Payment Agent, in immediately available funds, for account of
such Borrower. The amount so received by the Multi-Currency Payment Agent
shall, subject to the terms and conditions of this Agreement, be made
available to the Borrower by depositing the same, in immediately available
funds, in an account of the Borrower designated by the Borrower.

                  3.02  PREPAYMENTS AND CONVERSIONS.

                  (a) OPTIONAL PREPAYMENTS AND CONVERSIONS. Each Borrower shall
have the right to prepay Loans and to convert Loans in Dollars of one Type into
Loans of the other Type, at any time or from time to time, provided, that the
relevant Borrower shall give the Administrative Agent or the Multi-Currency
Payment Agent, notice of each such prepayment as provided in Section 5.05
hereof. Any prepayment of Term Loans hereunder may not be reborrowed.

                  (b) MANDATORY PREPAYMENTS. (i) If on any date, the Company or
any Subsidiary of the Company shall receive Net Cash Proceeds from any issuance
subsequent to the Effective Date of Indebtedness other than Indebtedness
incurred pursuant to Section 9.08 hereof (except Section 9.08(vii)) (it being
understood that this Section 3.02(b) shall not constitute a waiver of any
provision of Section 9.08), then the Borrowers shall prepay the Loans (and/or
provide cover

                                       10
<PAGE>

for Letter of Credit Liabilities as specified in paragraph (d) below) in an
amount equal to such Net Cash Proceeds (less any prepayments of the C$ Loans
under Section 3.4(b) of Annex A hereto), but, the Revolving Commitments shall
not be subject to automatic reduction.

                  (ii) Amounts to be applied in connection with prepayments made
pursuant to this Section 3.02(b) shall be applied, FIRST, to the prepayment of
the Term Loans (which may not be reborrowed) and, SECOND, to the prepayment of
the Revolving Loans. Each prepayment of the Loans under this Section 3.02(b)
shall be accompanied by accrued interest to the date of such prepayment on the
amount prepaid.

                  (c) COMMITMENT REDUCTIONS; TERM LOAN PREPAYMENTS. (i) If on
any date, the Company or any Subsidiary of the Company shall receive Net Cash
Proceeds from any disposition of assets or any Recovery Event, then, unless such
disposition of assets or Recovery Event shall be a Reinvestment Event, the
Revolving Commitments shall be reduced or the Term Loans prepaid, as the case
may be, by an amount equal to such Net Cash Proceeds to the extent such Net Cash
Proceeds, together with all other such Net Cash Proceeds from dispositions of
assets or Recovery Events that are not Reinvestment Events, exceeds $15,000,000
in the then-current fiscal year of the Company; PROVIDED, that notwithstanding
the foregoing, (i) the aggregate Net Cash Proceeds from dispositions of assets
and Recovery Events that may be excluded from the foregoing requirement for a
Reinvestment Event shall not exceed 10% of the Consolidated Net Tangible Assets
of the Company as at the end of the immediately preceding fiscal year and (ii)
on each Reinvestment Prepayment Date, an amount equal to the Reinvestment
Prepayment Amount with respect to the relevant Reinvestment Event shall be
applied toward the reduction of the Revolving Commitments or the prepayment of
the Term Loans, as the case may be.

                  (ii) Amounts to be applied in connection with prepayments and
Revolving Commitment reductions made pursuant to this Section 3.02(c) shall be
applied, FIRST, to the prepayment of the Term Loans (which may not be
reborrowed) and, SECOND, to reduce permanently the Revolving Commitments. Each
prepayment of the Loans under this Section 3.02(c) shall be accompanied by
accrued interest to the date of such prepayment on the amount prepaid. To the
extent that, after giving effect to any such reduction of the Revolving
Commitments, the aggregate principal amount of the US$ Loans or the
Multi-Currency Loans and the aggregate amount of Letter of Credit Liabilities
under the US$ Commitments or the Multi-Currency Commitments, as the case may be,
would exceed such Commitments, the Borrowers shall, first, prepay Loans
thereunder and, second, provide cover for Letter of Credit Liabilities
thereunder as specified in paragraph (d) below, in an aggregate amount equal to
such excess. The Company shall notify the Administrative Agent promptly upon the
occurrence of any event giving rise to a prepayment or Commitment reduction
under this Section 3.02(c).

                  (d) COVER FOR LETTER OF CREDIT LIABILITIES. In the event that
the US$ Loans or the Multi-Currency Loans have been repaid in full, amounts
payable under Section 3.02(b) or 3.02(c) shall be applied to provide cash cover
for outstanding Letters of Credit under the US$ Commitments or the
Multi-Currency Commitments, as the case may be, in which event the Company shall
effect the same by paying to the Administrative Agent or the Multi-Currency
Payment Agent, as the case may be, immediately available funds in an amount
equal to the

                                       11
<PAGE>

required amount, which funds shall be retained by the Administrative Agent or
the Multi-Currency Payment Agent in the Collateral Account as collateral
security for such Letter of Credit Liabilities until such time as the Letters of
Credit under such Commitments shall have been terminated and all of the Letter
of Credit Liabilities paid in full.

                                       12
<PAGE>

Amendment to Section 4

                  Section 4.  PAYMENTS OF PRINCIPAL AND INTEREST.

                  4.01 REPAYMENT OF LOANS. (a) The Borrowers hereby promise to
pay to the Administrative Agent or the Multi-Currency Payment Agent, as the case
may be, for the account of each Revolving Lender the entire outstanding
principal amount of such Lender's Revolving Loans, and each Revolving Loan shall
mature, on the Commitment Termination Date.

                  (b) (i) The aggregate principal amount of the Tranche A Term
Loans shall mature and be payable in 6 consecutive quarterly installments, on
the dates and in the amounts set forth below:

                  INSTALLMENT                        PRINCIPAL AMOUNT

                  October 31, 2003                   $12,500,000
                  January 31, 2004                   $25,000,000
                  April 30, 2004                     $25,000,000
                  July 31, 2004                      $25,000,000
                  October 31, 2004                   $25,000,000
                  January 31, 2005                   $37,500,000

                  (ii) The aggregate principal amount of the Tranche B Term
Loans shall mature and be payable in 22 consecutive quarterly installments, on
the dates and in the amounts set forth below:

                  INSTALLMENT                        PRINCIPAL AMOUNT
                  -----------                        ----------------
                  November 30, 2000                       $250,000
                  February 28, 2001                       $250,000
                  May 31, 2001                            $250,000
                  August 31, 2001                         $250,000
                  November 30, 2001                       $250,000
                  February 28, 2002                       $250,000
                  May 31, 2002                            $250,000
                  August 31, 2002                         $250,000
                  November 30, 2002                       $250,000
                  February 28, 2003                       $250,000
                  May 31, 2003                            $250,000
                  August 31, 2003                         $250,000
                  November 30, 2003                       $250,000
                  February 29, 2004                       $250,000
                  May 31, 2004                            $250,000
                  August 31, 2004                         $250,000
                  November 30, 2004                       $250,000
                  February 28, 2005                       $250,000
                  May 31, 2005                         $48,000,000

                                       13
<PAGE>

                  August 31, 2005                      $48,000,000
                  November 31, 2005                    $48,000,000
                  February 28, 2006                    $51,500,000

                  4.02 INTEREST. Each Borrower will pay to the Administrative
Agent or, in the case of Multi-Currency Loans or non-Dollar-denominated
US$-Canadian Loans, to the Multi-Currency Payment Agent, for the account of each
Lender interest on the unpaid principal amount of each Loan made by such Lender
to such Borrower for the period commencing on the date of such Loan to but
excluding the date such Loan shall be paid in full, at the following rates per
annum:

                    (a) if such Loan is an ABR Loan, the Alternate Base Rate
               PLUS the Applicable Margin; and

                    (b) if such Loan is a Eurocurrency Loan, the Eurocurrency
               Rate PLUS the Applicable Margin.

                  Notwithstanding the foregoing, each Borrower hereby promises
to pay to the Administrative Agent or, in the case of Multi-Currency Loans or
non-Dollar-denominated US$-Canadian Loans, to the Multi-Currency Payment Agent,
for account of each Lender interest at the applicable Post-Default Rate (x) on
any principal of any Loan made by such Lender to such Borrower, on any
Reimbursement Obligation held by such Lender and on any other amount payable by
such Borrower hereunder or under the Note held by such Lender to or for account
of such Lender (but, if such amount is interest, only to the extent legally
enforceable), that shall not be paid in full when due (whether at stated
maturity, by acceleration, by mandatory prepayment or otherwise), for the period
from and including the due date thereof to but excluding the date the same is
paid in full and (y) during any period when an Event of Default shall have
occurred under Section 10.01(a) hereof and for so long as such Event of Default
shall be continuing, on any principal of any Loan made by such Lender to such
Borrower.

                  Accrued interest on each Loan shall be payable (i) if such
Loan is an ABR Loan, on each Quarterly Date, (ii) if such Loan is a Eurocurrency
Loan, on the last day of each Interest Period for such Loan (and, if such
Interest Period exceeds three months' duration, quarterly, commencing on the
first quarterly anniversary of the first day of such Interest Period), and (iii)
in any event, upon the payment, prepayment or conversion thereof, but only on
the principal so paid or prepaid or converted; PROVIDED that interest payable at
the Post- Default Rate shall be payable from time to time on demand of the
Administrative Agent (or the Multi-Currency Payment Agent, in the case of
Multi-Currency Loans or non-Dollar-denominated US$-Canadian Loans) or the
Majority Lenders. Promptly after the determination of any interest rate provided
for herein or any change therein, the Administrative Agent shall notify the
Lenders and each Borrower thereof.

                  Notwithstanding the foregoing provisions of this Section 4.02,
if at any time the rate of interest set forth above on any Loan of any Lender
(the "Stated Rate" for such Loan)

                                       14
<PAGE>

exceeds the maximum non- usurious interest rate permissible for such Lender to
charge commercial borrowers under applicable law (the "Maximum Rate" for such
Lender), the rate of interest charged on such Loan of such Lender hereunder
shall be limited to the Maximum Rate for such Lender.

                  In the event the Stated Rate for any Loan of a Lender that has
theretofore been subject to the preceding paragraph at any time is less than the
Maximum Rate for such Lender, the principal amount of such Loan shall bear
interest at the Maximum Rate for such Lender until the total amount of interest
paid to such Lender or accrued on its Loans hereunder equals the amount of
interest which would have been paid to such Lender or accrued on such Lender's
Loans hereunder if the Stated Rate had at all times been in effect.

                   In the event, upon payment in full of all amounts payable
hereunder, the total amount of interest paid to any Lender or accrued on such
Lender's Loans under the terms of this Agreement is less than the total amount
of interest which would have been paid to such Lender or accrued on such
Lender's Loans if the Stated Rate had, at all times, been in effect, then the
relevant Borrower shall, to the extent permitted by applicable law, pay to the
Administrative Agent or, in the case of Multi-Currency Loans or
non-Dollar-denominated US$-Canadian Loans, to the Multi-Currency Payment Agent,
for the account of such Lender an amount equal to the difference between (a) the
lesser of (i) the amount of interest which would have accrued on such Lender's
Loans if the Maximum Rate for such Lender had at all times been in effect or
(ii) the amount of interest which would have accrued on such Lender's Loans if
the Stated Rate had at all times been in effect and (b) the amount of interest
actually paid to such Lender or accrued on its Loans under this Agreement. In
the event any Lender ever receives, collects or applies as interest any sum in
excess of the Maximum Rate for such Lender, such excess amount shall be applied
to the reduction of the principal balance of its Loans or to other amounts
(other than interest) payable hereunder, and if no such principal is then
outstanding, such excess or part thereof remaining shall be paid to such
Borrower.

                                       15
<PAGE>

Amendment to Section 5

                  Section 5.  PAYMENTS; PRO RATA TREATMENT; COMPUTATIONS; ETC.

                  5.01 PAYMENTS. (a) Except to the extent otherwise provided
herein, all payments of principal, interest, Reimbursement Obligations and other
amounts to be made by any Borrower under the US$ Commitments, the US$-Canadian
Commitments, the Multi-Currency Commitments, the Tranche A Term Commitments or
the Tranche B Term Commitments and under the corresponding Notes shall (except
in the case of payments of principal and interest on Multi-Currency Loans or
Letter of Credit Liabilities incurred under the Multi-Currency Commitments or
non-Dollar-denominated US$-Canadian Loans) be made in Dollars, in immediately
available funds, to the Administrative Agent at an account in New York, New York
specified by the Administrative Agent, not later than 11:00 a.m. New York time
on the date on which such payment shall become due (each such payment made after
such time on such due date to be deemed to have been made on the next succeeding
Business Day). The Administrative Agent, or any Lender for whose account any
such payment is made, may (but shall not be obligated to) debit the amount of
any such payment which is not made by such time to any ordinary deposit account
of such Borrower with the Administrative Agent or such Lender, as the case may
be. The relevant Borrower shall, at the time of making each such payment,
specify to the Administrative Agent the Loans or other amounts payable by such
Borrower hereunder to which such payment is to be applied (and in the event that
it fails to so specify, or if an Event of Default has occurred and is
continuing, the Administrative Agent may apply such payment for the benefit of
the Lenders as it may elect in its sole discretion, but subject to the other
terms and conditions of this Agreement, including without limitation, Section
5.02 hereof). Each payment received by the Administrative Agent under the US$
Commitments, the US$-Canadian Commitments, the Multi-Currency Commitments, the
Tranche A Term Commitments or the Tranche B Term Commitments or under any
corresponding Note (except in the case of payment of principal and interest on
Multi-Currency Loans or Letter of Credit Liabilities incurred under the
Multi-Currency Commitments or non-Dollar-denominated US$-Canadian Loans) for the
account of a Lender shall be paid promptly to such Lender, in immediately
available funds, for the account of such Lender's Applicable Lending Office. If
the due date of any such payment would otherwise fall on a day which is not a
Business Day such date shall be extended to the next succeeding Business Day and
interest shall be payable for any principal so extended for the period of such
extension.

                  (b) Except to the extent otherwise provided herein, all
payments of principal and interest on (i) Multi-Currency Loans and Letter of
Credit Liabilities incurred under the Multi-Currency Commitments, (ii)
non-Dollar-denominated US$-Canadian Loans and (iii) under corresponding Notes
to be made by any Borrower shall be made in the currency of the applicable
Loan or Letter of Credit Liability for which payment is being made, in
immediately available funds, to the Multi-Currency Payment Agent at an
account in London specified by the Multi-Currency Payment Agent, not later
than 11:00 a.m. London time on the date on which such payment shall become
due (each such payment made after such time on such due date to be deemed to
have been made on the next succeeding Business Day). The Multi-Currency
Payment Agent, or any Lender for whose account any such payment is made, may
(but shall not be obligated to) debit the amount of any such payment which is
not made by such time to any

                                       16
<PAGE>

ordinary deposit account of such Borrower with the Multi-Currency Payment Agent
or such Lender, as the case may be. The relevant Borrower shall, at the time of
making each such payment, specify to the Multi-Currency Payment Agent the Loans
or other amounts payable by such Borrower hereunder to which such payment is to
be applied (and in the event that it fails to so specify, or if an Event of
Default has occurred and is continuing, the Multi-Currency Payment Agent may
apply such payment for the benefit of the Lenders as it may elect in its sole
discretion, but subject to the other terms and conditions of this Agreement,
including without limitation, Section 5.02 hereof). Each such payment received
by the Multi-Currency Payment Agent for the account of a Lender shall be paid
promptly to such Lender, in immediately available funds, for the account of such
Lender's Applicable Lending Office. If the due date of any such payment would
otherwise fall on a day which is not a Business Day such date shall be extended
to the next succeeding Business Day and interest shall be payable for any
principal so extended for the period of such extension.

                  (c) All payments made by each Borrower hereunder and under the
Notes shall be made without set-off or counterclaim.

                  5.02 PRO RATA TREATMENT. (a) With respect to the US$ Lenders,
except to the extent otherwise provided herein: (i) each borrowing from the US$
Lenders under Section 2.01 hereof shall be made from the US$ Lenders, each
payment of commitment fees under Section 2.03 hereof shall be made for the
account of the US$ Lenders, and each termination or reduction of the US$
Commitments under Section 2.02 hereof shall be applied to the US$ Commitments of
the US$ Lenders, PRO RATA according to the US$ Lenders' respective percentages
of the US$ Commitments, (ii) each payment by a Borrower of principal of or
interest on US$ Loans of a particular Type (other than payments in respect of
Loans of individual Lenders provided for by Section 6 hereof) shall be made to
the Administrative Agent for the account of the US$ Lenders PRO RATA in
accordance with the respective unpaid principal amounts of such US$ Loans held
by the US$ Lenders and (iii) each conversion of US$ Loans of a particular Type
(other than conversions of Loans of individual Lenders pursuant to Section 6.04
hereof) shall be made PRO RATA among the US$ Lenders in accordance with the
respective principal amounts of such US$ Loans held by the US$ Lenders.

                  (b) With respect to the US$-Canadian Lenders, except to the
extent otherwise provided herein: (i) each borrowing from the US$-Canadian
Lenders under Section 2.01 hereof shall be made from the US$-Canadian Lenders
and each termination or reduction of the US$-Canadian Commitments under Section
2.02 hereof shall be applied to the US$-Canadian Commitments of the US$-Canadian
Lenders, PRO RATA according to the US$-Canadian Lenders' respective percentages
of the US$-Canadian Commitments, (ii) each payment by a Borrower of principal of
or interest on US$-Canadian Loans of a particular Type (other than payments in
respect of Loans of individual Lenders provided for by Section 6 hereof) shall
be made to the Administrative Agent for the account of the US$-Canadian Lenders
PRO RATA in accordance with the respective unpaid principal amounts of such
US$-Canadian Loans held by the US$-Canadian Lenders and (iii) each conversion of
US$-Canadian Loans of a particular Type (other than conversions of Loans of
individual Lenders pursuant to Section 6.04 hereof) shall be made PRO RATA among
the US$-Canadian Lenders in accordance with the respective principal amounts of
such US$-Canadian Loans held by the US$-Canadian Lenders.

                                       17
<PAGE>

                  (c) With respect to the Multi-Currency Lenders, except to the
extent otherwise provided herein: (i) each borrowing from the Multi-Currency
Lenders under Section 2.01 hereof shall be made from the Multi-Currency Lenders,
each payment of commitment fees under Section 2.03 hereof shall be made for the
account of the Multi-Currency Lenders, and each termination or reduction of the
Multi-Currency Commitments under Section 2.02 hereof shall be applied to the
Multi-Currency Commitments of the Multi-Currency Lenders, PRO RATA according to
the Multi-Currency Lenders' respective percentages of the Multi-Currency
Commitments and (ii) each payment by a Borrower of principal of or interest on
Multi-Currency Loans (other than payments in respect of Loans of individual
Lenders provided for by Section 6 hereof) shall be made to the Multi-Currency
Payment Agent, in each case for the account of the Multi-Currency Lenders and
PRO RATA in accordance with the respective unpaid principal amounts of such
Multi-Currency Loans (whether denominated in Dollars or other currency) held by
the Multi-Currency Lenders.

                  (d) Any reduction of the Commitments under Section 2.02(b) or
3.02(c) and any mandatory prepayment under Section 3.02(b) shall be applied
ratably to the US$ Commitments, US$-Canadian Commitments and the Multi-Currency
Commitments.

                  (e) With respect to the Tranche A Term Lenders, except to the
extent otherwise provided herein: (i) the borrowing from the Tranche A Term
Lenders under Section 2.01 hereof shall be made from the Tranche A Term Lenders,
PRO RATA according to the Tranche A Term Lenders' respective percentages of the
Tranche A Term Commitments, (ii) each payment (or prepayment) by the Company of
principal or interest on Tranche A Term Loans of a particular Type (other than
payments in respect of Loans of individual Lenders provided for by Section 6
hereof) shall be made to the Administrative Agent for the account of the Tranche
A Term Lenders, PRO RATA in accordance with the respective unpaid principal
amounts of such Tranche A Term Loans held by the Tranche A Term Lenders and
(iii) each conversion of Tranche A Term Loans of a particular Type (other than
conversions of Loans of individual Lenders pursuant to Section 6.04 hereof)
shall be made PRO RATA among the Tranche A Term Lenders, in each case, in
accordance with the respective principal amounts of such Tranche A Term Loans
held by the Tranche A Term Lenders.

                  (f) With respect to the Tranche B Term Lenders, except to the
extent otherwise provided herein: (i) the borrowing from the Tranche B Term
Lenders under Section 2.01 hereof shall be made from the Tranche B Term Lenders,
PRO RATA according to the Tranche B Term Lenders' respective percentages of the
Tranche B Term Commitments, (ii) each payment (or prepayment) by the Company of
principal or interest on Tranche B Term Loans of a particular Type (other than
payments in respect of Loans of individual Lenders provided for by Section 6
hereof) shall be made to the Administrative Agent for the account of the Tranche
B Term Lenders, PRO RATA in accordance with the respective unpaid principal
amounts of such Tranche B Term Loans held by the Tranche B Term Lenders and
(iii) each conversion of Tranche B Term Loans of a particular Type (other than
conversions of Loans of individual Lenders pursuant to Section 6.04 hereof)
shall be made PRO RATA among the Tranche B Term Lenders, in each case, in

                                       18
<PAGE>

accordance with the respective principal amounts of such Tranche B Term Loans
held by the Tranche B Term Lenders.

                  (g) Each prepayment by the Company of the Term Loans as
provided by Section 3.02 hereof shall be applied PRO RATA to the Tranche A Term
Loans and the Tranche B Term Loans and to the installments of the Tranche A Term
Loans and the Tranche B Term Loans, PRO RATA according to the then outstanding
amounts thereof. Notwithstanding anything to the contrary in this Section 5.02
or in Section 3.02 hereof , with respect to the amount of any prepayment
described in Section 3.02 hereof that is allocated to Tranche B Term Loans, at
any time when Tranche A Term Loans remain outstanding, the Company will, in lieu
of applying such amount to the prepayment of Tranche B Term Loans, as provided
in Section 3.02 hereof, on or prior to the date specified in Section 5.05 for
such prepayment, give the Administrative Agent telephonic notice (promptly
confirmed in writing) requesting that the Administrative Agent notify, as
promptly as practicable, each Tranche B Term Lender of the offer by the Borrower
to prepay the relevant Term Loans of such Lender by an amount equal to the
portion of the prepayment applicable to such Lender's Tranche B Term Loans.
Within four Business Days after such notification by the Administrative Agent,
each such Tranche B Term Lender shall give the Administrative Agent and the
Company notice in writing indicating its full or partial acceptance or rejection
of such offer by the Company and in the case of a partial acceptance, the amount
of such portion of the prepayment for which such Tranche B Term Lender accepts
prepayment. Upon receipt of such notice from each such Tranche B Term Lender (it
being agreed that any Tranche B Term Lender not responding to such notification
from the Administrative Agent within such four Business Days shall be deemed to
have accepted in full such offer), the Company shall pay, as promptly as
practicable on or after the date so specified for such prepayment, (i) to the
relevant Tranche B Term Lenders the aggregate amount necessary to prepay that
portion of the outstanding relevant Term Loans in respect of which such Lenders
have accepted prepayment as described above, and (ii) to the Tranche A Term
Lenders an amount equal to the portion of the prepayment allocated to Tranche B
Term Loans that is not accepted by the relevant Lenders, and such amount shall
be applied to the prepayment of the Tranche A Term Loans.

                  5.03 COMPUTATIONS. Interest and fees shall be computed on the
basis of a year of 360 days (or 365 or 366 days, as the case may be, in the case
of (a) ABR Loans the interest rate payable on which is then based on the Prime
Rate and (b) Multi-Currency Loans denominated in Pounds Sterling) and actual
days elapsed (including the first day but excluding the last day) occurring in
the period for which payable.

                  5.04  MINIMUM AND MAXIMUM AMOUNTS; TYPES.

                  (a) US$ LOANS; Dollar-denominated US$-CANADIAN LOANS;
DOLLAR-DENOMINATED MULTI-CURRENCY LOANS; TRANCHE A TERM LOANS; AND TRANCHE B
TERM LOANS. Except for prepayments made pursuant to Section 3.02(b) hereof, each
borrowing, conversion and prepayment of principal of US$ Loans,
Dollar-denominated US$-Canadian Loans, Dollar-denominated Multi-Currency Loans,
Tranche A Term Loans and Tranche B Term Loans shall be in an aggregate principal
amount equal to (a) in the case of Eurocurrency Loans, $1,000,000 or a larger
multiple of $100,000, and (b) in the case of ABR Loans, $500,000 or a larger
multiple of $100,000 (borrowings, conversions or prepayments of Loans of
different Types or, in the case of

                                       19
<PAGE>

Eurocurrency Loans, having different Interest Periods, at the same time
hereunder to be deemed separate borrowings, conversions and prepayments for
purposes of the foregoing, one for Type or Interest Period); provided that (i)
any Loan may be in the aggregate amount of the unused portion of the relevant
Commitments, (ii) Loans may be prepaid in full and (ii) any borrowing or
prepayment of Loans that are ABR Loans may be in an aggregate principal amount
equal to $100,000 or a larger multiple of $100,000.

                  (b)  NON-DOLLAR-DENOMINATED MULTI-CURRENCY LOANS and
Non-Dollar-Denominated US$-Canadian Loans. Each Multi-Currency Loan other
than a Dollar-denominated Multi-Currency Loan shall be a Eurocurrency Loan,
and each US$-Canadian Loan other than a Dollar-denominated US$-Canadian Loan
shall be a Eurocurrency Loan. Except for prepayments made pursuant to Section
3.02(b) hereof, each borrowing, conversion and prepayment of principal of
non-Dollar-denominated Multi-Currency Loans and non-Dollar-denominated
US$-Canadian Loans shall be in an aggregate principal amount which is an
integral multiple of 100,000 units of the relevant Multi-Currency or 100,000
Canadian Dollars, as the case may be, and equal to or greater than an amount
the Dollar Equivalent of which is $1,000,000.

                  5.05  CERTAIN NOTICES.

                  (a) US$ LOANS AND Dollar-denominated US$ -CANADIAN LOANS.
Notices to the Administrative Agent of terminations or reductions of US$
Commitments, US$-Canadian Commitments, of borrowings, conversions and
prepayments of US$ Loans and Dollar-denominated US$-Canadian Loans and of the
duration of Interest Periods shall be irrevocable and shall be effective only
if received by the Administrative Agent not later than 1:00 p.m. New York
time on the number of Business Days prior to the date of the relevant
termination, reduction, borrowing, conversion and/or prepayment specified
below:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------

                          NOTICE                                     NUMBER OF
                                                                     BUSINESS
                                                                    DAYS PRIOR
--------------------------------------------------------------------------------
<S>                                                                       <C>
Termination or reduction of                                               3
Commitments
--------------------------------------------------------------------------------

Borrowing or prepayment of                                                1
ABR Loans
--------------------------------------------------------------------------------

Borrowing or prepayment of,                                               3
conversion of or into, or
duration of Interest Period
for Dollar-denominated Eurocurrency Loans
--------------------------------------------------------------------------------

Prepayments required pursuant                                             1
to Section 3.02(b) or 3.02(c) for Dollars
--------------------------------------------------------------------------------
</TABLE>

                                       20
<PAGE>

Each such notice of termination or reduction shall specify the amount thereof to
be terminated or reduced. Each such notice of borrowing, conversion or
prepayment shall specify the amount and Type of the Loans to be borrowed,
converted or prepaid (subject to Sections 3.02(a) and 5.04 hereof), the date of
borrowing, conversion or prepayment (which shall be a Business Day) and, in the
case of Eurocurrency Loans, the duration of the Interest Period therefor
(subject to the definition of Interest Period). Each such notice of duration of
an Interest Period shall specify the Loans to which such Interest Period is to
relate. The Administrative Agent shall promptly notify the affected Lenders of
the contents of each such notice. In the event that a Borrower fails to select
the duration of any Interest Period for any Eurocurrency Loans within the time
period and otherwise as provided in this Section 5.05, such Loans (if
outstanding as Eurocurrency Loans and denominated in Dollars) will be
automatically converted into ABR Loans on the last day of the then current
Interest Period for such Loans or (if outstanding as ABR Loans) will remain as,
or (if not then outstanding) will be made as, ABR Loans. Each Borrower shall
give a copy of each notice to be given by it pursuant to this Section 5.05(a)
with respect to dollar-denominated US$-Canadian Loans or Commitments, to the
Multi-Currency Payment Agent.

                  (b) MULTI-CURRENCY LOANS and Non-Dollar-Denominated
US$-Canadian Loans. Notices to the Multi-Currency Payment Agent of terminations
or reductions of Multi-Currency Commitments and US$-Canadian Commitments, of
borrowings and prepayments of Multi-Currency Loans and non-Dollar-denominated
US$-Canadian Loans and of the duration of Interest Periods shall be irrevocable
and shall be effective only if received by the Multi-Currency Payment Agent not
later than 9:00 a.m. London time on the number of Business Days prior to the
date of the relevant termination, reduction, borrowing and/or prepayment
specified below:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                          NOTICE                                  NUMBER OF
                                                                  BUSINESS
                                                                 DAYS PRIOR
--------------------------------------------------------------------------------
<S>                                                                    <C>
Termination or reduction of                                            3
Commitments
--------------------------------------------------------------------------------

Borrowing or prepayment of Multi-Currency Loans and                    3
non-Dollar-denominated US$-Canadian Loans
--------------------------------------------------------------------------------

Prepayments required pursuant                                          1
to Section 3.02(b)
--------------------------------------------------------------------------------
</TABLE>

Each such notice of termination or reduction shall specify the amount thereof to
be terminated or reduced. Each such notice of borrowing or prepayment shall
specify the amount of the Loans to be borrowed or prepaid (subject to Sections
3.02(a) and 5.04 hereof), the date of borrowing or prepayment (which shall be a
Business Day), the duration of the Interest Period therefor (subject to the
definition of Interest Period) and the currency of Loans to be borrowed. Each
such notice of duration of an Interest Period shall specify the Loans to which
such Interest Period is to relate. The Multi-Currency Payment Agent shall
promptly notify the affected Lenders of the contents of each such notice. Each
Borrower shall give a copy of each notice to be given by it pursuant to

                                       21
<PAGE>

this Section 5.05(b) with respect to non-Dollar-denominated US$-Canadian Loans
or Commitments to the Administrative Agent.

                  (c) TRANCHE A TERM LOANS AND TRANCHE B TERM LOANS. Notices to
the Administrative Agent of borrowing, conversions and prepayments of Tranche A
Term Loans and Tranche B Term Loans and of the duration of Interest Periods
shall be irrevocable and shall be effective only if received by the
Administrative Agent not later than 1:00 p.m. New York time on the number of
Business Days prior to the date of the relevant termination, reduction,
borrowing, conversion and/or prepayment specified below:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------

                                                             NUMBER OF
                          NOTICE                             BUSINESS
                                                            DAYS PRIOR
--------------------------------------------------------------------------------
<S>                                                               <C>
Borrowing or prepayment of                                        1
ABR Loans
--------------------------------------------------------------------------------

Borrowing or prepayment of,                                       3
conversion of or into, or
duration of Interest Period
for Dollar-denominated Eurocurrency Loans
--------------------------------------------------------------------------------

Prepayments required pursuant                                     1
to Section 3.02(b) or 3.02(c)
--------------------------------------------------------------------------------
</TABLE>

Each such notice of termination or reduction shall specify the amount thereof to
be terminated or reduced. Each such notice of borrowing, conversion or
prepayment shall specify the amount and Type of the Loans to be borrowed,
converted or prepaid (subject to Sections 3.02(a) and 5.04 hereof), the date of
borrowing, conversion or prepayment (which shall be a Business Day) and, in the
case of Eurocurrency Loans, the duration of the Interest Period therefor
(subject to the definition of Interest Period). Each such notice of duration of
an Interest Period shall specify the Loans to which such Interest Period is to
relate. The Administrative Agent shall promptly notify the affected Lenders of
the contents of each such notice. In the event that a Borrower fails to select
the duration of any Interest Period for any Eurocurrency Loans within the time
period and otherwise as provided in this Section 5.05, such Loans (if
outstanding as Eurocurrency Loans) will be automatically converted into ABR
Loans on the last day of the then current Interest Period for such Loans or (if
outstanding as ABR Loans) will remain as, or (if not then outstanding) will be
made as, ABR Loans.

                  5.06 NON-RECEIPT OF FUNDS BY THE ADMINISTRATIVE AGENT. Unless
the Administrative Agent or the Multi-Currency Payment Agent, as the case may
be, shall have been notified by a US$ Lender, US$-Canadian Lender,
Multi-Currency Lender, Tranche A Term Lender, Tranche B Term Lender or a
Borrower (the "PAYOR") prior to the date on which such Lender is to make payment
to the Administrative Agent or the Multi-Currency Payment Agent, as the case may
be, of the proceeds of a Loan to be made by it hereunder or the Borrower is to

                                       22
<PAGE>

make a payment to the Administrative Agent or the Multi-Currency Payment Agent,
as the case may be, for the account of one or more of the Lenders, as the case
may be (such payment being herein called the "REQUIRED PAYMENT"), which notice
shall be effective upon receipt, that the Payor does not intend to make the
Required Payment to the Administrative Agent or the Multi-Currency Payment
Agent, as the case may be, the Administrative Agent or the Multi-Currency
Payment Agent, as the case may be, may assume that the Required Payment has been
made and may, in reliance upon such assumption (but shall not be required to),
make the amount thereof available to the intended recipient on such date and, if
the Payor has not in fact made the Required Payment to the Administrative Agent
or the Multi-Currency Payment Agent, as the case may be, the recipient of such
payment shall, on demand, pay to the Administrative Agent or the Multi-Currency
Payment Agent, as the case may be, the amount made available to it together with
interest thereon in respect of the period commencing on the date such amount was
so made available by the Administrative Agent or the Multi-Currency Payment
Agent, as the case may be, until the date the Administrative Agent or the
Multi-Currency Payment Agent, as the case may be, recovers such amount at a rate
per annum equal to the Federal Funds Effective Rate for such period or, in the
case of an amount payable in a currency other than Dollars, the rate determined
by the Administrative Agent in its discretion of the appropriate rate for
interbank settlements.

                  5.07 SHARING OF PAYMENTS; WAIVER OF ENFORCEMENT WITHOUT
CONSENT. ETC. (a) Each Borrower agrees that, in addition to (and without
limitation of) any right of set-off, banker's lien or counterclaim a Lender may
otherwise have, each Lender shall be entitled, at its option, to offset balances
held by it or its affiliates for the account of the such Borrower at any of
their offices, in Dollars or in any other currency, against any principal of or
interest on any of such Lender's Loans or Reimbursement Obligations to such
Borrower hereunder, or any other obligation of such Borrower hereunder, which is
not paid when due (regardless of whether such balances are then due to such
Borrower), in which case it shall promptly notify the Company, the relevant
Borrower and the Administrative Agent (or the Multi-Currency Payment Agent, as
the case may be) thereof, provided that such Lender's failure to give such
notice shall not affect the validity thereof. Each Borrower agrees, to the
fullest extent it may effectively do so under applicable law, that any Person
purchasing a participation in the Loans to such Borrower made, or other
obligations held, by another Person, whether or not acquired pursuant to the
foregoing arrangements, may exercise all rights of set-off, banker's lien,
counterclaim or similar rights with respect to such participation as fully as if
such Lender were a direct holder of such Loans or other obligations in the
amount of such participation.

                  (b) If a Lender shall obtain payment of any principal of or
interest on any Loan made by it under this Agreement, or on any other obligation
then due to such Lender hereunder, through the exercise of any right of set-off,
banker's lien, counterclaim or similar right, or otherwise, it shall promptly
notify the Administrative Agent (or the Multi-Currency Payment Agent, as the
case may be) and purchase from the other Lenders participations in the Loans
made, or other obligations held, by the other Lenders in such amounts, and make
such other adjustments from time to time as shall be equitable to the end that
all the Lenders shall share the benefit of such payment (net of any expenses
which may be incurred by such Lender in obtaining or preserving such benefit)
pro rata in accordance with the unpaid principal and interest on the Loans or
other obligations then due to each of them. To such end all the Lenders shall
make appropriate adjustments among themselves (by the resale of participations
sold or otherwise) if

                                       23
<PAGE>

such payment is rescinded or must otherwise be restored (including the payment
of interest to the extent that the Lender obligated to return such funds is
obligated to return interest).

                  (c) Nothing contained herein shall require any Lender to
exercise any right of set-off, banker's lien, counterclaim or similar right or
shall affect the right of any Lender to exercise, and retain the benefits of
exercising, any such right with respect to any other indebtedness or obligation
of any Borrower.

                  (d) This Section 5.07 is for the benefit of the Lenders only
and does not constitute a waiver of any rights against any Borrower or any of
their Subsidiaries or against any property held as security for any obligations
hereunder or under any other Basic Document.

                  5.08 WITHHOLDING TAX EXEMPTION. (a) At least five Business
Days prior to the first date on which interest or fees are payable hereunder for
the account of any Lender, each Lender that is not incorporated under the laws
of the United States of America or a state thereof agrees that it will deliver,
to the extent it has not so delivered under the Existing Credit Agreement, to
each of the Company and the Administrative Agent two duly completed copies of
either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI (or any
subsequent versions thereof or successors thereto), or, in the case of a
Non-U.S. Lender claiming exemption from U.S. federal withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of "portfolio
interest", a statement substantially in the form of Exhibit K (any such
certificate an "EXEMPTION CERTIFICATE") and a Form W-8BEN (or any subsequent
versions thereof or successors thereto), certifying in either case that such
Lender is entitled to receive payments under this Agreement and the Notes
without deduction or withholding of any United States federal income taxes. Each
Lender which so delivers a Form W-8BEN or Form W-8ECI further undertakes to
deliver to each of the Company and the Administrative Agent (or the
Multi-Currency Payment Agent, in the case of Multi-Currency Lenders) two
additional copies of such form (or a successor form) on or before the date that
such form expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent form so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Company or the Administrative Agent (or the Multi-Currency
Payment Agent, as the case may be), in each case certifying that such Lender is
entitled to receive payments under this Agreement and the Notes without
deduction or withholding of any United States federal income taxes, unless an
event (including without limitation any change in treaty, law or regulation) has
occurred prior to the date on which any such delivery would otherwise be
required 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 advises the Company and the Administrative Agent (or the
Multi-Currency Payment Agent, as the case may be) that it is not capable of
receiving payments without any deduction or withholding of United States federal
income tax.

                  (b) Each Lender that is not incorporated or organized under
the laws of the jurisdiction under which a Foreign Subsidiary Borrower is
incorporated or organized shall, upon request by such Foreign Subsidiary
Borrower, deliver to such Foreign Subsidiary Borrower or

                                       24
<PAGE>

the applicable Governmental Authority, any form or certificate required in order
that any payment by such Foreign Subsidiary Borrower under this Agreement or any
Notes to such Lender may be made free and clear of, and without deduction or
withholding for or on account of any tax (or to allow any such deduction or
withholding to be at a reduced rate) imposed on such payment under the laws of
the jurisdiction under which such Foreign Subsidiary Borrower is incorporated or
organized, PROVIDED that such Lender is legally entitled to complete, execute
and deliver such form or certificate and such completion, execution or
submission would not materially prejudice the legal position of such Lender.

                  (c) All payments made by a Borrower or the Canadian Borrower
under this Agreement shall be made free and clear of, and without deduction or
withholding for or on account of, any present or future income, stamp or other
taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now
or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed
in lieu of net income taxes) imposed on the Administrative Agent, the
Multi-Currency Payment Agent, the Canadian Administrative Agent or any Lender as
a result of a present or former connection between the Administrative Agent, the
Multi-Currency Payment Agent, the Canadian Administrative Agent or such Lender
and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Administrative Agent, the Multi-Currency
Payment Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement or any
other Loan Document). If any such non-excluded taxes, levies, imposts, duties,
charges, fees, deductions or withholdings ("NON-EXCLUDED TAXES") or other taxes
are required to be withheld from any amounts payable to the Administrative
Agent, the Multi-Currency Payment Agent, the Canadian Administrative Agent or
any Lender hereunder, the amounts so payable to the Administrative Agent, the
Multi-Currency Payment Agent, the Canadian Administrative Agent or such Lender
shall be increased to the extent necessary to yield to the Administrative Agent,
the Multi-Currency Payment Agent, the Canadian Administrative Agent or such
Lender (after payment of all Non-Excluded Taxes and other taxes) interest or any
such other amounts payable hereunder at the rates or in the amounts specified in
this Agreement, PROVIDED, HOWEVER, that the relevant Borrower or the Canadian
Borrower shall not be required to increase any such amounts payable to any
Lender with respect to any Non-Excluded Taxes (i) that are attributable to such
Lender's failure to comply with the requirements of paragraph (a) or (b) of this
Section or (ii) that are United States withholding taxes imposed on amounts
payable to such Lender at the time the Lender becomes a party to this Agreement,
except to the extent that such Lender's assignor (if any) was entitled, at the
time of assignment, to receive additional amounts from such Borrower or the
Canadian Borrower with respect to such Non-Excluded Taxes pursuant to this
paragraph.

                  5.09 JUDGMENT CURRENCY. If for the purpose of obtaining
judgment in any court it is necessary to convert a sum due from any Borrower or
the Canadian Borrower hereunder or under any of the Notes or the C$ Notes in the
currency expressed to be payable herein (the "specified currency") 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 Administrative Agent could
purchase the specified currency with other such currency at the Administrative
Agent's New York Office on the Business Day

                                       25
<PAGE>

that is on or immediately following the day on which final judgment is given.
The obligations of each Borrower or the Canadian Borrower in respect of any sum
due to any Lender, the Administrative Agent, the Multi-Currency Payment Agent or
the Canadian Administrative Agent hereunder or under any Note or C$ Note shall,
notwithstanding any judgment in a currency other than the specified currency, be
discharged only to the extent that on the Business Day following receipt by such
Lender, the Administrative Agent, the Multi-Currency Payment Agent or the
Canadian Administrative Agent, as the case may be, of any sum adjudged to be so
due in such other currency such Lender, the Administrative Agent, the
Multi-Currency Payment Agent or the Canadian Administrative Agent as the case
may be, may in accordance with normal banking procedures purchase the specified
currency with such other currency. If the amount of the specified currency so
purchased is less than the sum originally due to such Lender, the Administrative
Agent, the Multi-Currency Payment Agent or the Canadian Administrative Agent, as
the case may be, in the specified currency, each Borrower and the Canadian
Borrower agrees, to the fullest extent it may effectively do so, as a separate
obligation and notwithstanding any such judgment, to indemnify such Lender, the
Administrative Agent, the Multi-Currency Payment Agent or the Canadian
Administrative Agent, as the case may be, against such loss, and if the amount
of the specified currency so purchased exceeds the sum originally due to any
Lender, the Administrative Agent the Multi-Currency Payment Agent or the
Canadian Administrative Agent, as the case may be, in the specified currency,
such Lender or the Administrative Agent, or the Multi-Currency Payment Agent, or
the Canadian Administrative Agent, as the case may be, agrees to remit such
excess to the appropriate Borrower or the Canadian Borrower.

                                       26<PAGE>

                                                                    EXHIBIT 10.1

                         COMMON STOCK PURCHASE AGREEMENT

            This COMMON STOCK PURCHASE AGREEMENT (this "Agreement") is dated as
of March 20, 2001 by and between 24/7 Media, Inc., a Delaware corporation (the
"Company"), and Maya Cove Holdings Inc. (the "Purchaser"), a British Virgin
Islands corporation.

            WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to Purchaser from
time to time as provided herein, and Purchaser shall purchase, up to $50,000,000
of Common Stock and the Warrant; and

            WHEREAS, such investments will be made by the Purchaser as statutory
underwriter of a registered indirect primary offering of such Common Stock by
the Company.

            NOW, THEREFORE, in consideration of the foregoing premises, and the
promises and covenants herein contained, the receipt and sufficiency of which
are hereby acknowledged by the parties hereto, the parties, intending to be
legally bound, hereby agree as follows:

                                   ARTICLE 1

                        PURCHASE AND SALE OF COMMON STOCK

            Section 1.1. PURCHASE AND SALE OF STOCK. Subject to the terms and
conditions of this Agreement, the Company may sell and issue to the Purchaser
and the Purchaser shall be obligated to purchase from the Company, up to an
aggregate of, $50,000,000 of the Common Stock and the Warrant, subject to the
terms herein (the "Commitment Amount").

            Section 1.2. PURCHASE PRICE AND INITIAL CLOSING. The Company agrees
to issue and sell to the Purchaser and, in consideration of and in express
reliance upon the representations, warranties, covenants, terms and conditions
of this Agreement, the Purchaser agrees to purchase that number of the Shares to
be issued in connection with each Draw Down. The delivery of executed documents
under this Agreement and the other agreements referred to herein and the payment
of the fees set forth in Article I of the Escrow Agreement, attached as EXHIBIT
B hereto, (the "Initial Closing") shall take place at the offices of Epstein
Becker & Green, P.C., 250 Park Avenue, New York, New York 10177 (i) within
fifteen (15) days from the date hereof, or (ii) such other time and place or on
such date as the Purchaser and the Company may agree upon (the "Initial Closing
Date"). Each party shall deliver all documents, instruments
<PAGE>

and writings required to be delivered by such party pursuant to this Agreement
at or prior to the Initial Closing.

                                    ARTICLE 2

                         REPRESENTATIONS AND WARRANTIES

            Section 2.1. REPRESENTATION AND WARRANTIES OF THE COMPANY. The
Company hereby makes the following representations and warranties to the
Purchaser:

                  (a) ORGANIZATION, GOOD STANDING AND POWER. The Company is a
      corporation duly incorporated validly existing and in good standing under
      the laws of the State of Delaware and has all requisite corporate
      authority to own, lease and operate its properties and assets and to carry
      on its business as now being conducted. The Company does not have any
      subsidiaries and does not own more than fifty percent (50%) of or control
      any other business entity except as set forth in the SEC Documents. The
      Company is duly qualified to do business and is in good standing as a
      foreign corporation in every jurisdiction in which the nature of the
      business conducted or property owned by it makes such qualification
      necessary, other than those in which the failure so to qualify would not
      have a Material Adverse Effect.

                  (b) AUTHORIZATION, ENFORCEMENT. (i) The Company has the
      requisite corporate power and corporate authority to enter into and
      perform its obligations under the Transaction Documents and to issue the
      Draw Down Shares pursuant to their respective terms, (ii) the execution
      and delivery of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated hereby and thereby
      have been duly authorized by all necessary corporate action and no further
      consent or authorization of the Company or its Board of Directors or
      stockholders is required, and (iii) the Transaction Documents have been
      duly executed and delivered by the Company and at the Initial Closing
      shall constitute valid and binding obligations of the Company enforceable
      against the Company in accordance with their terms, except as such
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation, conservatorship, receivership or
      similar laws relating to, or affecting generally the enforcement of,
      creditors' rights and remedies or by other equitable principles of general
      application.

                  (c) CAPITALIZATION. The authorized capital stock of the
      Company consists of 70,000,000 shares of Common Stock of which 26,322,752
      shares are issued and outstanding and 10,000,000 shares of preferred
      stock, $0.01 par value per share, of which none are issued and
      outstanding. All of the outstanding shares of the Company's Common Stock
      have been duly and validly authorized and are fully paid and
      non-assessable, except as set forth in the SEC Documents. Except as set
      forth in this Agreement and the Registration Rights Agreement and as set
      forth in the SEC Documents, or on SCHEDULE 2.1(c) hereto, no shares of
      Common Stock are entitled to preemptive rights or registration rights and
      there are no outstanding options, warrants,

                                       2
<PAGE>

      scrip, rights to subscribe to, calls or commitments of any character
      whatsoever relating to, or securities or rights convertible into, any
      shares of capital stock of the Company. Furthermore, except as set forth
      in this Agreement and as set forth in the SEC Documents or on SCHEDULE
      2.1(c), there are no contracts, commitments, understandings, or
      arrangements by which the Company is or may become bound to issue
      additional shares of the capital stock of the Company or options,
      securities or rights convertible into shares of capital stock of the
      Company. Except as set forth on SCHEDULE 2.1(c), the Company is not a
      party to any agreement granting registration rights to any person with
      respect to any of its equity or debt securities. Except for the
      Registration Rights Agreement and except as set forth on SCHEDULE 2.1(c),
      the Company is not a party to, and it has no knowledge of, any agreement
      restricting the voting or transfer of any shares of the capital stock of
      the Company. Except as set forth in the SEC Documents or on SCHEDULE
      2.1(c) hereto, the offer and sale of all capital stock, convertible
      securities, rights, warrants, or options of the Company issued prior to
      the Initial Closing complied with all applicable federal and state
      securities laws, and no stockholder has a right of rescission or damages
      with respect thereto which would have a Material Adverse Effect. The
      Company has made available to the Purchaser true and correct copies of the
      Company's articles or certificate of incorporation as in effect on the
      date hereof (the "Charter"), and the Company's bylaws as in effect on the
      date hereof (the "Bylaws"). The Company has not received any notice from
      the Principal Market questioning or threatening the continued inclusion of
      the Common Stock on such market.

                  (d) ISSUANCE OF SHARES. The Warrant Shares to be issued under
      this Agreement have been duly authorized by all necessary corporate action
      and, when paid for and issued in accordance with the terms hereof and the
      Warrant, the Warrant Shares shall be validly issued and outstanding, fully
      paid and non-assessable, and the Purchaser shall be entitled to all rights
      accorded to a holder of Common Stock.

                  (e) NO CONFLICTS. Except as set forth on Schedule 2.1(e), the
      execution, delivery and performance of this Agreement by the Company and
      the consummation by the Company of the transactions contemplated herein do
      not and will not (i) violate any provision of the Company's Charter or
      Bylaws, (ii) conflict with, or constitute a default (or an event which
      with notice or lapse of time or both would become a default) under, or
      give to others any rights of termination, amendment, acceleration or
      cancellation of, any agreement, mortgage, deed of trust, indenture, note,
      bond, license, lease agreement, instrument or obligation to which the
      Company is a party, (iii) create or impose a lien, charge or encumbrance
      on any property of the Company under any agreement or any commitment to
      which the Company is a party or by which the Company is bound or by which
      any of its respective properties or assets are bound, or (iv) result in a
      violation of any federal, state, local or other foreign statute, rule,
      regulation, order, judgment or decree (including any federal or state
      securities laws and regulations) applicable to the Company or any of its
      subsidiaries or by which any property or asset of the Company or any of
      its subsidiaries are bound or affected, except, in all cases, for such
      conflicts, defaults, termination, amendments, accelerations, cancellations
      and violations as would not, individually or in the aggregate, have a
      Material Adverse Effect. The business of the

                                       3
<PAGE>

      Company and its subsidiaries is not being conducted in violation of any
      laws, ordinances or regulations of any governmental entity, except for
      possible violations which singularly or in the aggregate do not and will
      not have a Material Adverse Effect. The Company is not required under any
      federal, state or local law, rule or regulation to obtain any consent,
      authorization or order of, or make any filing or registration with, any
      court or governmental agency in order for it to execute, deliver or
      perform any of its obligations under this Agreement, or issue and sell the
      Shares in accordance with the terms hereof (other than any filings which
      may be required to be made by the Company with the SEC or state securities
      administrators subsequent to the Initial Closing and any registration
      statement which may be filed pursuant hereto); PROVIDED, HOWEVER, that for
      purpose of the representation made in this sentence, the Company is
      assuming and relying upon the accuracy of the relevant representations and
      agreements of the Purchaser herein.

                  (f) SEC DOCUMENTS, FINANCIAL STATEMENTS. The Common Stock of
      the Company is registered pursuant to Section 12(g) of the Exchange Act,
      and, except as disclosed in the SEC Documents or on SCHEDULE 2.1(f)
      hereto, the Company has timely filed all reports, schedules, forms,
      statements and other documents required to be filed by it with the SEC
      pursuant to the reporting requirements of the Exchange Act, including
      material filed pursuant to Section 13(a) or 15(d) of the Exchange Act. The
      Company has delivered or made available to the Purchaser, through the
      EDGAR system or otherwise, true and complete copies of the SEC Documents
      filed with the SEC since December 31, 1998. The Company has not provided
      to the Purchaser any information which, according to applicable law, rule
      or regulation, should have been disclosed publicly by the Company but
      which has not been so disclosed, other than with respect to the
      transactions contemplated by this Agreement. As of their respective filing
      dates, the SEC Documents complied in all material respects with the
      requirements of the Exchange Act or the Securities Act, as applicable, and
      the rules and regulations of the SEC promulgated thereunder applicable to
      such documents, and, as of their respective filing dates, none of the SEC
      Documents contained any untrue statement of a material fact or omitted to
      state a material fact required to be stated therein or necessary in order
      to make the statements therein, in light of the circumstances under which
      they were made, not misleading. The financial statements of the Company
      included in the SEC Documents comply as to form in all material respects
      with applicable accounting requirements under GAAP and the published rules
      and regulations of the SEC or other applicable rules and regulations with
      respect thereto. Such financial statements have been prepared in
      accordance with GAAP applied on a consistent basis during the periods
      involved (except (i) as may be otherwise indicated in such financial
      statements or the notes thereto or (ii) in the case of unaudited interim
      statements, to the extent they may not include footnotes or may be
      condensed or summary statements), and fairly present in all material
      respects the financial position of the Company and its subsidiaries as of
      the dates thereof and the results of operations and cash flows for the
      periods then ended (subject, in the case of unaudited statements, to
      normal year-end audit adjustments).

                  (g) SUBSIDIARIES. The SEC Documents or Schedule 2.1(g) hereto
      sets forth each subsidiary of the Company, showing the jurisdiction of its
      incorporation or

                                       4
<PAGE>

      organization and showing the percentage of the Company's ownership of the
      outstanding stock or other interests of such subsidiary. For the purposes
      of this Agreement, "subsidiary" shall mean any corporation or other entity
      of which at least a majority of the securities or other ownership
      interests having ordinary voting power (absolutely or contingently) for
      the election of directors or other persons performing similar functions
      are at the time owned directly or indirectly by the Company and/or any of
      its other subsidiaries. All of the issued and outstanding shares of
      capital stock of each subsidiary have been duly authorized and validly
      issued, and are fully paid and non-assessable. There are no outstanding
      preemptive, conversion or other rights, options, warrants or agreements
      granted or issued by or binding upon any subsidiary for the purchase or
      acquisition of any shares of capital stock of any subsidiary or any other
      securities convertible into, exchangeable for or evidencing the rights to
      subscribe for any shares of such capital stock. Neither the Company nor
      any subsidiary is subject to any obligation (contingent or otherwise) to
      repurchase or otherwise acquire or retire any shares of the capital stock
      of any subsidiary or any convertible securities, rights, warrants or
      options of the type described in the preceding sentence. Neither the
      Company nor any subsidiary is a party to, nor has any knowledge of, any
      agreement restricting the voting or transfer of any shares of the capital
      stock of any subsidiary.

                  (h) NO MATERIAL ADVERSE EFFECT. Since the date of the
      financial statement contained in the most recently filed Form 10-Q (or
      10-QSB) or Form 10-K (or 10-KSB), whichever is most current, no Material
      Adverse Effect has occurred or exists with respect to the Company, except
      as disclosed in the SEC Documents or on SCHEDULE 2.1(H) hereto.

                  (i) NO UNDISCLOSED LIABILITIES. Except as disclosed in the SEC
      Documents or on SCHEDULE 2.1(I) hereto, neither the Company nor any of its
      subsidiaries has any liabilities, obligations, claims or losses (whether
      liquidated or unliquidated, secured or unsecured, absolute, accrued,
      contingent or otherwise) that would be required to be disclosed on a
      balance sheet of the Company or any subsidiary (including the notes
      thereto) in conformity with GAAP which are not disclosed in the SEC
      Documents, other than those incurred in the ordinary course of the
      Company's or its subsidiaries' respective businesses since such date and
      which, individually or in the aggregate, do not or would not have a
      Material Adverse Effect on the Company or its subsidiaries.

                  (j) NO UNDISCLOSED EVENTS OR CIRCUMSTANCES. Since the date of
      the financial statement contained in the most recently filed Form 10- Q
      (or 10-QSB) or Form 10-K (or 10-KSB), whichever is most current, no event
      or circumstance has occurred or exists with respect to the Company or its
      businesses, properties, prospects, operations or financial condition,
      that, under applicable law, rule or regulation, requires public disclosure
      or announcement prior to the date hereof by the Company but which has not
      been so publicly announced or disclosed in the SEC Documents.

                  (k) INDEBTEDNESS. The SEC Documents or SCHEDULE 2.1(K) hereto
      sets forth as of the date hereof all outstanding secured and unsecured
      Indebtedness of the Company or any subsidiary, or for which the Company or
      any subsidiary has

                                       5
<PAGE>

      commitments. For the purposes of this Agreement, "Indebtedness" shall mean
      (A) any liabilities for borrowed money or amounts owed in excess of
      $250,000 (other than trade accounts payable incurred in the ordinary
      course of business), (B) all guaranties, endorsements and contingent
      obligations in respect of Indebtedness of others, whether or not the same
      are or should be reflected in the Company's balance sheet (or the notes
      thereto), except guaranties by endorsement of negotiable instruments for
      deposit or collection or similar transactions in the ordinary course of
      business; and (C) the present value of any lease payments in excess of
      $250,000 due under leases required to be capitalized in accordance with
      GAAP. Neither the Company nor any subsidiary is in default with respect to
      any Indebtedness.

                  (l) TITLE TO ASSETS. Each of the Company and the subsidiaries
      has good and marketable title to all of its real and personal property
      reflected in the SEC Documents, free of any mortgages, pledges, charges,
      liens, security interests or other encumbrances, except for those
      indicated in the SEC Documents or on SCHEDULE 2.1(1) hereto or such that
      do not cause a Material Adverse Effect. All said leases of the Company and
      each of its subsidiaries are valid and subsisting and in full force and
      effect.

                  (m) ACTIONS PENDING. There is no action, suit, claim,
      investigation or proceeding pending or, to the knowledge of the Company,
      threatened against the Company or any subsidiary which questions the
      validity of this Agreement or the transactions contemplated hereby or any
      action taken or to be taken pursuant hereto or thereto. Except as set
      forth in the SEC Documents or on SCHEDULE 2.1(M) hereto, there is no
      action, suit, claim, investigation or proceeding pending or, to the
      knowledge of the Company, threatened, against or involving the Company,
      any subsidiary or any of their respective properties or assets. There are
      no outstanding orders, judgments, injunctions, awards or decrees of any
      court, arbitrator or governmental or regulatory body against the Company
      or any subsidiary.

                  (n) COMPLIANCE WITH LAW. The Company and each of its
      subsidiaries have all franchises, permits, licenses, consents and other
      governmental or regulatory authorizations and approvals necessary for the
      conduct of their respective businesses as now being conducted by them
      unless the failure to possess such franchises, permits, licenses, consents
      and other governmental or regulatory authorizations and approvals,
      individually or in the aggregate, could not reasonably be expected to have
      a Material Adverse Effect.

                  (o) TAXES. The Company and each subsidiary has filed all Tax
      Returns which it is required to file under applicable laws; all such Tax
      Returns are true and accurate and have been prepared in compliance with
      all applicable laws; the Company has paid all Taxes due and owing by it or
      any subsidiary (whether or not such Taxes are required to be shown on a
      Tax Return) and has withheld and paid over to the appropriate taxing
      authorities all Taxes which it is required to withhold from amounts paid
      or owing to any employee, stockholder, creditor or other third parties;
      and since December 31, 1999, the charges, accruals and reserves for Taxes
      with respect to the Company

                                       6
<PAGE>

      (including any provisions for deferred income taxes) reflected on the
      books of the Company are adequate to cover any Tax liabilities of the
      Company if its current tax year were treated as ending on the date hereof.

                  No claim has been made by a taxing authority in a jurisdiction
      where the Company does not file tax returns that the Company or any
      subsidiary is or may be subject to taxation by that jurisdiction. There
      are no foreign, federal, state or local tax audits or administrative or
      judicial proceedings pending or being conducted with respect to the
      Company or any subsidiary; no information related to Tax matters has been
      requested by any foreign, federal, state or local taxing authority; and,
      except as disclosed above, no written notice indicating an intent to open
      an audit or other review has been received by the Company or any
      subsidiary from any foreign, federal, state or local taxing authority.
      There are no material unresolved questions or claims concerning the
      Company's Tax liability. The Company (A) has not executed or entered into
      a closing agreement pursuant to ss. 7121 of the Internal Revenue Code or
      any predecessor provision thereof or any similar provision of state, local
      or foreign law; and (B) has not agreed to or is required to make any
      adjustments pursuant to ss. 481 (a) of the Internal Revenue Code or any
      similar provision of state, local or foreign law by reason of a change in
      accounting method initiated by the Company or any of its subsidiaries or
      has any knowledge that the IRS has proposed any such adjustment or change
      in accounting method, or has any application pending with any taxing
      authority requesting permission for any changes in accounting methods that
      relate to the business or operations of the Company. The Company has not
      been a United States real property holding corporation within the meaning
      of ss. 897(c)(2) of the Internal Revenue Code during the applicable period
      specified in ss. 897(c)(1)(A)(ii) of the Internal Revenue Code.

                  The Company has not made an election under ss. 341(f) of the
      Internal Revenue Code. The Company is not liable for the Taxes of another
      person that is not a subsidiary of the Company under (A) Treas. Reg. ss.
      1.1502-6 (or comparable provisions of state, local or foreign law), (B) as
      a transferee or successor, (C) by contract or indemnity or (D) otherwise.
      The Company is not a party to any tax sharing agreement. The Company has
      not made any payments, is not obligated to make payments nor is it a party
      to an agreement that could obligate it to make any payments that would not
      be deductible under ss. 280G of the Internal Revenue Code.

                  For purposes of this Section 2.1(o):

                  "IRS" means the United States Internal Revenue Service.

                  "TAX" or "TAXES" means federal, state, county, local, foreign,
      or other income, gross receipts, ad valorem, franchise, profits, sales or
      use, transfer, registration, excise, utility, environmental,
      communications, real or personal property, capital stock, license,
      payroll, wage or other withholding, employment, social security,
      severance, stamp, occupation, alternative or add-on minimum, estimated and
      other taxes of any kind

                                       7
<PAGE>

      whatsoever (including, without limitation, deficiencies, penalties,
      additions to tax, and interest attributable thereto) whether disputed or
      not.

                  "TAX RETURN" means any return, information report or filing
      with respect to Taxes, including any schedules attached thereto and
      including any amendment thereof.

                  (p) CERTAIN FEES. Except as set forth on SCHEDULE 2.1(P)
      hereto, no brokers, finders or financial advisory fees or commissions will
      be payable by the Company or any subsidiary with respect to the
      transactions contemplated by this Agreement.

                  (q) DISCLOSURE. To the best of the Company's knowledge,
      neither this Agreement or the Schedules hereto nor any other documents,
      certificates or instruments furnished to the Purchaser by or on behalf of
      the Company or any subsidiary in connection with the transactions
      contemplated by this Agreement contains any untrue statement of a material
      fact or omits to state a material fact necessary in order to make the
      statements made herein or therein, in the light of the circumstances under
      which they were made herein or therein, not misleading.

                  (r) OPERATION OF BUSINESS. The Company and each of the
      subsidiaries owns or possesses all patents, trademarks, service marks,
      trade names, copyrights, licenses and authorizations as set forth in the
      SEC Documents or on SCHEDULE 2.1(R) hereto, and all rights with respect to
      the foregoing, which are necessary for the conduct of its business as now
      conducted without any conflict with the rights of others.

                  (s) INSURANCE. Except as disclosed in the SEC Documents or on
      SCHEDULE 2.1(S) hereto, the Company carries or will have the benefit of
      insurance in such amounts and covering such risks as is adequate for the
      conduct of its business and the value of its properties and as is
      customary for companies engaging in similar businesses and similar
      industries.

                  (t) BOOKS AND RECORDS. The records and documents of the
      Company and its subsidiaries accurately reflect in all material respects
      the information relating to the business of the Company and the
      subsidiaries, the location and collection of their assets, and the nature
      of all transactions giving rise to the obligations or accounts receivable
      of the Company or any subsidiary.

                  (u) MATERIAL AGREEMENTS. Except as set forth in the SEC
      Documents, or on SCHEDULE 2.1(U) hereto, neither the Company nor any
      subsidiary is a party to any written or oral contract, instrument,
      agreement, commitment, obligation, plan or arrangement, a copy of which
      would be required to be filed with the SEC as an exhibit to a registration
      statement on Form S-1 or other applicable form (collectively, "Material
      Agreements") if the Company or any subsidiary were registering securities
      under the Securities Act. Except as set forth on SCHEDULE 2.1(U), the
      Company and each of its subsidiaries has in all material respects
      performed all the obligations required to be performed by them to date
      under the foregoing agreements, have received no notice of

                                       8
<PAGE>

      default and, to the best of the Company's knowledge are not in default
      under any Material Agreement now in effect, the result of which could
      cause a Material Adverse Effect. Except as set forth in the SEC Documents,
      no written or oral contract, instrument, agreement, commitment,
      obligation, plan or arrangement of the Company or of any subsidiary limits
      or shall limit the payment of dividends on the Company's Common Stock.

                  (v) TRANSACTIONS WITH AFFILIATES. Except as set forth in the
      SEC Documents or on SCHEDULE 2.1(V) hereto, there are no loans, leases,
      agreements, contracts, royalty agreements, management contracts or
      arrangements or other continuing transactions exceeding $100,000 between
      (A) the Company, any subsidiary or any of their respective customers or
      suppliers on the one hand, and (B) on the other hand, any officer,
      employee, consultant or director of the Company, or any of its
      subsidiaries, or any person owning 5% or more of the capital stock of the
      Company or any subsidiary or any member of the immediate family of such
      officer, employee, consultant, director or stockholder or any corporation
      or other entity controlled by such officer, employee, consultant, director
      or stockholder, or a member of the immediate family of such officer,
      employee, consultant, director or stockholder.

                  (w) SECURITIES LAWS. The Company has complied and will comply
      with all applicable federal and state securities laws in connection with
      the offer, issuance and sale of the Shares hereunder. Neither the Company
      nor anyone acting on its behalf, directly or indirectly, has or will sell,
      offer to sell or solicit offers to buy the Shares or similar securities
      to, or solicit offers with respect thereto from, or enter into any
      preliminary conversations or negotiations relating thereto with, any
      person (other than the Purchaser), so as to bring the issuance and sale of
      the Shares under the registration provisions of the Securities Act and
      applicable state securities laws. Neither the Company nor any of its
      affiliates, nor any person acting on its or their behalf, has engaged in
      any form of general solicitation or general advertising (within the
      meaning of Regulation D under the Securities Act) in connection with the
      offer or sale of the Shares.

                  (x) EMPLOYEES. Neither the Company nor any subsidiary has any
      collective bargaining arrangements or agreements covering any of its
      employees. Except as set forth in the SEC Documents or on SCHEDULE 2.1(X)
      hereto, neither the Company nor any subsidiary is in breach of any
      employment contract, agreement regarding proprietary information,
      noncompetition agreement, nonsolicitation agreement, confidentiality
      agreement, or any other similar contract or restrictive covenant, relating
      to the right of any officer, employee or consultant to be employed or
      engaged by the Company or such subsidiary. Except as set forth on Schedule
      2.1(x), since the date of the December 31, 1999 Form 10-K (or 10-KSB), no
      officer, consultant or key employee of the Company or any subsidiary whose
      termination, either individually or in the aggregate, could have a
      Material Adverse Effect, has terminated or, to the knowledge of the
      Company, has any present intention of terminating his or her employment or
      engagement with the Company or any subsidiary.

                                       9
<PAGE>

                  (y) ABSENCE OF CERTAIN DEVELOPMENTS. Except as disclosed in
      SEC Documents or on SCHEDULE 2.1(Y) hereto, since the date of the
      financial statement contained in the most recently filed Form 10-Q (or
      10-QSB) or Form 10-K (or 10KSB), whichever is most current, neither the
      Company nor any subsidiary has:

                        (i) issued any stock, bonds or other corporate
            securities or any rights, options or warrants with respect thereto;

                        (ii) borrowed any amount or incurred or become subject
            to any liabilities (absolute or contingent) except current
            liabilities incurred in the ordinary course of business which are
            comparable in nature and amount to the current liabilities incurred
            in the ordinary course of business during the comparable portion of
            its prior fiscal year, as adjusted to reflect the current nature and
            volume of the Company's or such subsidiary's business;

                        (iii) discharged or satisfied any lien or encumbrance or
            paid any obligation or liability (absolute or contingent), other
            than current liabilities paid in the ordinary course of business;

                        (iv) declared or made any payment or distribution of
            cash or other property to stockholders with respect to its stock, or
            purchased or redeemed, or made any agreements so to purchase or
            redeem, any shares of its capital stock;

                        (v) sold, assigned or transferred any other tangible
            assets, or canceled any debts or claims, except in the ordinary
            course of business;

                        (vi) sold, assigned or transferred any patent rights,
            trademarks, trade names, copyrights, trade secrets or other
            intangible assets or intellectual property rights, or disclosed any
            proprietary confidential information to any person except to
            customers in the ordinary course of business or to the Purchaser or
            its representatives;

                        (vii) suffered any material losses (except for
            anticipated losses consistent with prior quarters) or waived any
            rights of material value, whether or not in the ordinary course of
            business, or suffered the loss of any material amount of prospective
            business;

                        (viii) made any changes in employee compensation except
            in the ordinary course of business and consistent with past
            practices;

                        (ix) made capital expenditures or commitments therefor
            that aggregate in excess of $500,000;

                        (x) entered into any other material transaction, whether
            or not in the ordinary course of business;

                                       10
<PAGE>

                        (xi) suffered any material damage, destruction or
            casualty loss, whether or not covered by insurance;

                        (xii) experienced any material problems with labor or
            management in connection with the terms and conditions of their
            employment; or

                        (xiii) effected any two or more events of the foregoing
            kind which in the aggregate would be material to the Company or its
            subsidiaries.

                  (z) GOVERNMENTAL APPROVALS. Except as set forth in the SEC
      Documents or on SCHEDULE 2.1(Z) hereto, and except for the filing of any
      notice prior or subsequent to any Settlement Date that may be required
      under applicable federal or state securities laws (which if required,
      shall be filed on a timely basis), including the filing of a registration
      statement or post-effective amendment pursuant to this Agreement, no
      authorization, consent, approval, license, exemption of, filing or
      registration with any court or governmental department, commission, board,
      bureau, agency or instrumentality, domestic or foreign, is or will be
      necessary for, or in connection with, the delivery of the Shares, or for
      the performance by the Company of its obligations under this Agreement.

                  (aa) ACKNOWLEDGMENT REGARDING PURCHASER'S PURCHASE OF SHARES.
      Company acknowledges and agrees that Purchaser is acting solely in the
      capacity of arm's length purchaser with respect to this Agreement and the
      transactions contemplated hereunder. The Company further acknowledges that
      the Purchaser is not acting as a financial advisor or fiduciary of the
      Company (or in any similar capacity) with respect to this Agreement and
      the transactions contemplated hereunder. The Company further represents to
      the Purchaser that the Company's decision to enter into this Agreement has
      been based solely on (a) the Purchaser's representations and warranties in
      Section 3.2, and (b) the independent evaluation by the Company and its own
      representatives and counsel.

            Section 2.2. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The
Purchaser hereby makes the following representations and warranties to the
Company:

                  (a) ORGANIZATION AND STANDING OF THE PURCHASER. The Purchaser
      is a corporation duly incorporated, validly existing and in good standing
      under the laws of the British Virgin Islands.

                  (b) AUTHORIZATION AND POWER. The Purchaser has the requisite
      power and authority to enter into and perform the Transaction Documents
      and to purchase the Shares being sold to it hereunder. The execution,
      delivery and performance of the Transaction Documents by Purchaser and the
      consummation by it of the transactions contemplated hereby have been duly
      authorized by all necessary corporate action and at the Initial Closing
      shall constitute valid and binding obligations of the Purchaser
      enforceable against the Purchaser in accordance with their terms, except
      as such enforceability may be limited by applicable bankruptcy,
      insolvency, reorganization, moratorium, liquidation, conservatorship,
      receivership or similar laws relating to, or affecting generally the

                                       11
<PAGE>

      enforcement of, creditors' rights and remedies or by other equitable
      principles of general application

                  (c) NO CONFLICTS. The execution, delivery and performance of
      this Agreement and the consummation by the Purchaser of the transactions
      contemplated hereby or relating hereto do not and will not (i) result in a
      violation of the Purchaser's charter documents or bylaws or (ii) conflict
      with, or constitute a default (or an event which with notice or lapse of
      time or both would become a default) under, or give to others any rights
      of termination, amendment, acceleration or cancellation of any agreement,
      indenture or instrument to which the Purchaser is a party, or result in a
      violation of any law, rule, or regulation, or any order, judgment or
      decree of any court or governmental agency applicable to the Purchaser or
      its properties (except for such conflicts, defaults and violations as
      would not, individually or in the aggregate, have a Material Adverse
      Effect on Purchaser). The Purchaser is not required to obtain any consent,
      authorization or order of, or make any filing or registration with, any
      court or governmental agency in order for it to execute, deliver or
      perform any of its obligations under this Agreement or to purchase the
      Shares in accordance with the terms hereof.

                  (d) FINANCIAL RISKS. The Purchaser acknowledges that it is
      able to bear the financial risks associated with an investment in the
      Shares and that it has been given full access to such records of the
      Company and the subsidiaries and to the officers of the Company and the
      subsidiaries as it has deemed necessary or appropriate to conduct its due
      diligence investigation. The Purchaser is capable of evaluating the risks
      and merits of an investment in the Shares by virtue of its experience as
      an investor and its knowledge, experience, and sophistication in financial
      and business matters and the Purchaser is capable of bearing the entire
      loss of its investment in the Shares.

                  (e) ACCREDITED INVESTOR. The Purchaser is an "accredited
      investor" as defined in Regulation D promulgated under the Securities Act.

                  (f) GENERAL. The Purchaser understands that the Company is
      relying upon the truth and accuracy of the representations, warranties,
      agreements, acknowledgments and understandings of the Purchaser set forth
      herein in order to determine the suitability of the Purchaser to acquire
      the Shares.

                                       12
<PAGE>

                                    ARTICLE 3

                                    COVENANTS

            The Company covenants with the Purchaser as follows:

            Section 3.1. THE SHARES. As of the date of each applicable Draw
Down, the Company will have authorized and reserved, free of preemptive rights
and other similar contractual rights of stockholders, a sufficient number of
authorized but unissued shares of its Common Stock to cover the Draw Down Shares
to be issued in connection with such Draw Down requested under this Agreement.
The Draw Down Shares to be issued under this Agreement, when paid for and issued
in accordance with the terms hereof, shall be duly and validly issued and
outstanding, fully paid and non-assessable, and the Purchaser shall be entitled
to all rights accorded to a holder of Common Stock. Anything in this Agreement
to the contrary notwithstanding, (i) at no time will the Company request a Draw
Down which would result in the issuance of an aggregate number of shares of
Common Stock pursuant to this Agreement which exceeds 19.9% of the number of
shares of Common Stock issued and outstanding on the Initial Closing Date
without obtaining stockholder approval of such excess issuance, or such other
amount as would require stockholder approval under rules of the Principal Market
or otherwise without obtaining stockholder approval of such excess issuance, and
(ii) the Company may not make a Draw Down to the extent that, after such
purchase by the Purchaser, the sum of the number of shares of Common Stock
beneficially owned by the Purchaser and its affiliates would result in
beneficial ownership by the Purchaser and its affiliates of more than 9.9% of
the then outstanding shares of Common Stock. For purposes of the immediately
preceding sentence, beneficial ownership shall be determined in accordance with
Section 13(d) of the Exchange Act.

            Section 3.2. SECURITIES COMPLIANCE. If applicable, the Company shall
notify the Principal Market, in accordance with its rules and regulations, of
the transactions contemplated by this Agreement, and shall take all other
necessary action and proceedings as may be required and permitted by applicable
law, rule and regulation, for the legal and valid issuance of the Shares to the
Purchaser or subsequent holders.

            Section 3.3. REGISTRATION AND LISTING. The Company will cause its
Common Stock to continue to be registered under Sections 12(b) or 12(g) of the
Exchange Act, will comply in all respects with its reporting and filing
obligations under the Exchange Act, will comply with all requirements related to
any registration statement filed pursuant to this Agreement, and will not take
any action or file any document (whether or not permitted by the Securities Act
or the Exchange Act or the rules promulgated thereunder) to terminate or suspend
such registration or to terminate or suspend its reporting and filing
obligations under the Exchange Act or Securities Act, except as permitted
herein. The Company will take all action necessary to continue the listing or
trading of its Common Stock on the Principal Market and will

                                       13
<PAGE>

comply in all respects with the Company's reporting, filing and other
obligations under the bylaws or rules of the Principal Market and shall provide
the Purchaser with copies of any correspondence to or from such Principal Market
which questions or threatens delisting of the Common Stock, within three (3)
Trading Days of the Company's receipt thereof, until the Purchaser has disposed
of all of the Shares.

            Section 3.4. ESCROW ARRANGEMENT. The Company and the Purchaser shall
enter into an escrow arrangement with Epstein Becker & Green, P.C. (the "Escrow
Agent") in the form of EXHIBIT B hereto respecting payment against delivery of
the Shares.

            Section 3.5. REGISTRATION RIGHTS AGREEMENT. The Company and the
Purchaser shall enter into the Registration Rights Agreement in the Form of
EXHIBIT A hereto. Before the Purchaser shall be obligated to accept a Draw Down
request from the Company, the Company shall have caused a sufficient number of
shares of Common Stock to be registered to cover the Shares to be issued in
connection with such Draw Down.

            Section 3.6. ACCURACY OF REGISTRATION STATEMENT. On each Settlement
Date, the Registration Statement and the prospectus therein shall not contain
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary in order to make the statements
therein not misleading in light of the circumstances under which they were made;
and on such Settlement Date or date of filing the Registration Statement and the
prospectus therein will not include any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
PROVIDED, HOWEVER, the Company makes no representations or warranties as to the
information contained in or omitted from the Registration Statement and the
prospectus therein in reliance upon and in conformity with the information
furnished in writing to the Company by the Purchaser specifically for inclusion
in the Registration Statement and the prospectus therein.

            Section 3.7. COMPLIANCE WITH LAWS. The Company shall comply, and
cause each subsidiary to comply, with all applicable laws, rules, regulations
and orders, noncompliance with which could have a Material Adverse Effect.

            Section 3.8. KEEPING OF RECORDS AND BOOKS OF ACCOUNT. The Company
shall keep and cause each subsidiary to keep adequate records and books of
account, in which complete entries will be made in accordance with GAAP
consistently applied, reflecting all financial transactions of the Company and
its subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

            Section 3.9. OTHER AGREEMENTS. The Company shall not enter into any
agreement the terms of which such agreement would restrict or impair the ability
of the Company to perform its obligations under this Agreement.

            Section 3.10. NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION;
SUSPENSION OF RIGHT TO REQUEST A DRAW DOWN. THE COMPANY WILL PROMPTLY NOTIFY THE
PURCHASER IN WRITING

                                       14
<PAGE>

AND OBTAIN AN ACKNOWLEDGMENT FROM PURCHASER UPON THE OCCURRENCE OF ANY OF THE
FOLLOWING EVENTS IN RESPECT OF THE REGISTRATION STATEMENT OR RELATED PROSPECTUS
IN RESPECT OF THE SHARES: (i) receipt of any request for additional information
from the SEC or any other federal or state governmental authority during the
period of effectiveness of the Registration Statement the response to which
would require any amendments or supplements to the Registration Statement or
related prospectus; (ii) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Shares for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; (iv) the happening of any event that makes any statement made in the
Registration Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration Statement, related
prospectus or documents so that, in the case of the Registration Statement, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the related prospectus, it will
not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment to the Registration Statement would be appropriate. The Company shall
not deliver to the Purchaser any Draw Down Notice during the continuation of any
of the foregoing events. The Company shall promptly make available to the
Purchaser any such supplements or amendments to the related prospectus, at which
time, provided that the registration statement and any supplements and
amendments thereto are then effective, the Company may recommence the delivery
of Draw Down Notices.

            Section 3.11. CONSOLIDATION; MERGER. The Company shall not, at any
time after the date hereof, effect any merger or consolidation of the Company
with or into, or a transfer of all or substantially all of the assets of the
Company to, another entity (a "Consolidation Event") unless the resulting
successor or acquiring entity (if not the Company) assumes by written instrument
or by operation of law the obligation to deliver to the Purchaser such shares of
stock and/or securities as the Purchaser is entitled to receive pursuant to this
Agreement.

            Section 3.12. LIMITATION ON FUTURE FINANCING. The Company agrees
that it will not enter into any other equity line type of financing until the
earlier of (i) eighteen (18) months from the Effective Date, or (ii) sixty (60)
days after the entire Commitment Amount has been purchased by the Purchaser.
Further, except as to any sale of securities (i) in one or more private
placements where the purchasers do not have registration rights, (ii) pursuant
to any presently existing or future employee benefit plan which plan has been or
is approved by the Company's stockholders, (iii) pursuant to any compensatory
plan for a full-time employee or key consultant, (iv) in connection with a
strategic partnership or other business transaction, the principal purpose of
which is not simply to raise money, during the Commitment Period, the Purchaser
shall have a right of first refusal, to elect to participate, in transaction
pursuant to which the Company sells its securities for cash at a discount to the
then current market. Such right of first refusal must be

                                       15
<PAGE>

exercised in writing within five (5) Trading Days of the Purchaser's receipt of
notice of the proposed terms of such financing.

            Section 3.13. USE OF PROCEEDS. The proceeds from the sale of the
Shares will be used by the Company and its subsidiaries for general corporate
purposes.

            The Purchaser covenants with the Company as follows:

            Section 3.14. COMPLIANCE WITH LAW. The Purchaser agrees that its
trading activities with respect to shares of the Company's Common Stock will be
in compliance with all applicable state and federal securities laws, rules and
regulations and rules and regulations of the Principal Market on which the
Company's Common Stock is listed. Without limiting the generality of the
foregoing, the Purchaser agrees that it will, whenever required by federal
securities laws, deliver the prospectus included in the Registration Statement
to any purchaser of Shares from the Purchaser.

            Section 3.15. NO SHORT SALES. The Purchaser and its affiliates shall
not engage in short sales of the Company's Common Stock (as defined in
applicable SEC and the Principal Market rules) during the term of this
Agreement.

                                   ARTICLE 4

                  CONDITIONS TO INITIAL CLOSING AND DRAW DOWNS

            Section 4.1. CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY
TO SELL THE SHARES. The obligation hereunder of the Company to proceed to close
this Agreement and to issue and sell the Shares to the Purchaser is subject to
the satisfaction or waiver, at or before the Initial Closing, and as of each
Settlement Date of each of the conditions set forth below. These conditions are
for the Company's sole benefit and may be waived by the Company at any time in
its sole discretion.

                  (a) ACCURACY OF THE PURCHASER'S REPRESENTATIONS AND
      WARRANTIES. The representations and warranties of the Purchaser shall be
      true and correct in all material respects as of the date when made and as
      of the Initial Closing and as of each Settlement Date as though made at
      that time, except for representations and warranties that speak as of a
      particular date.

                  (b) PERFORMANCE BY THE PURCHASER. The Purchaser shall have
      performed, satisfied and complied in all material respects with all
      material covenants, agreements and conditions required by this Agreement
      to be performed, satisfied or complied with by the Purchaser at or prior
      to the Initial Closing and as of each Settlement Date.

                  (c) NO INJUNCTION. No statute, rule, regulation, executive
      order, decree, ruling or injunction shall have been enacted, entered,
      promulgated or endorsed by any

                                       16
<PAGE>

      court or governmental authority of competent jurisdiction which prohibits
      the consummation of any of the transactions contemplated by this
      Agreement.

            Section 4.2. CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER
TO CLOSE. The obligation hereunder of the Purchaser to perform its obligations
under this Agreement and to purchase the Shares is subject to the satisfaction
or waiver, at or before the Initial Closing, of each of the conditions set forth
below. These conditions are for the Purchaser's sole benefit and may be waived
by the Purchaser at any time in its sole discretion.

                  (a) ACCURACY OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES.
      Each of the representations and warranties of the Company shall be true
      and correct in all material respects as of the date when made and as of
      the Initial Closing as though made at that time (except for
      representations and warranties that speak as of a particular date).

                  (b) PERFORMANCE BY THE COMPANY. The Company shall have
      performed, satisfied and complied in all respects with all covenants,
      agreements and conditions required by this Agreement to be performed,
      satisfied or complied with by the Company at or prior to the Initial
      Closing.

                  (c) NO INJUNCTION. No statute, rule, regulation, executive
      order, decree, ruling or injunction shall have been enacted, entered,
      promulgated or endorsed by any court or governmental authority of
      competent jurisdiction which prohibits the consummation of any of the
      transactions contemplated by this Agreement.

                  (d) NO PROCEEDINGS OR LITIGATION. No action, suit or
      proceeding before any arbitrator or any governmental authority shall
      have been commenced, and no investigation by any governmental authority
      shall have been threatened, against the Purchaser or the Company or any
      subsidiary, or any of the officers, directors or affiliates of the
      Company or any subsidiary seeking to restrain, prevent or change the
      transactions contemplated by this Agreement, or seeking damages in
      connection with such transactions.

                  (e) OPINION OF COUNSEL, ETC. At the Initial Closing, the
      Purchaser shall have received an opinion of counsel to the Company, dated
      as of the Initial Closing Date, in the form of EXHIBIT C hereto.

                  (f) WARRANT. On the Initial Closing Date, the Company shall
      issue to the Purchaser a warrant certificate to purchase up to 100,000
      shares of Common Stock. The Warrant shall have a term from its date of
      issuance of three (3) years. The exercise price of the Warrant shall be
      150% of the average of the closing bid prices of the Common Stock during
      the fifteen (15) Trading Days immediately prior to the Initial Closing
      Date. The Common Stock underlying the Warrant will be registered in the
      Registration Statement referred to in Section 4.3 hereof. The Warrant
      shall be in the form of EXHIBIT E hereto.

                                       17
<PAGE>

            Section 4.3. CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER
TO ACCEPT A DRAW DOWN AND PURCHASE THE SHARES. The obligation hereunder of the
Purchaser to accept a Draw Down request and to acquire and pay for the Shares is
subject to the satisfaction at or before each Settlement Date, of each of the
conditions set forth below.

                  (a) SATISFACTION OF CONDITIONS TO INITIAL CLOSING. The Company
      shall have satisfied, or the Purchaser shall have waived at the Initial
      Closing, the conditions set forth in Section 4.2 hereof

                  (b) EFFECTIVE REGISTRATION STATEMENT. The Registration
      Statement registering the Shares shall have been declared effective by the
      SEC and shall remain effective on each Settlement Date.

                  (c) NO SUSPENSION. Trading in the Company's Common Stock shall
      not have been suspended by the SEC or the Principal Market (except for any
      suspension of trading of limited duration agreed to by the Company, which
      suspension shall be terminated prior to the delivery of each Draw Down
      Notice), and, at any time prior to such Draw Down Notice, trading in
      securities generally as reported on the Principal Market shall not have
      been suspended or limited, or minimum prices shall not have been
      established on securities whose trades are reported on the Principal
      Market unless the general suspension or limitation shall have been
      terminated prior to the delivery of such Draw Down Notice.

                  (d) MATERIAL ADVERSE EFFECT. No Material Adverse Effect and no
      Consolidation Event where the successor entity has not agreed to perform
      the Company's obligations shall have occurred.

                  (e) OPINION OF COUNSEL. The Purchaser shall have received (i)
      a "down-to-date" letter from the Company's counsel, confirming that there
      is no change from the counsel's previously delivered opinion, or else
      specifying with particularity the reason for any change and an opinion as
      to the additional items specified in EXHIBIT C hereto, and (ii) any other
      items set forth in the Escrow Agreement.

                                    ARTICLE 5

                                 DRAW DOWN TERMS

            Section 5.1. DRAW DOWN TERMS. Subject to the satisfaction of the
conditions set forth in this Agreement, the parties agree as follows:

                  (a) The Company, may, in its sole discretion, issue and
      exercise draw downs (each a "Draw Down") during the Commitment Period,
      which Draw Downs the Purchaser shall be obligated to accept during the
      Commitment Period, subject to the terms and conditions herein.

                                       18
<PAGE>

                  (b) Only one Draw Down shall be allowed in each Draw Down
      Pricing Period. There shall be at least five (5) Trading Days between Draw
      Down Pricing Periods. The number of shares of Common Stock purchased by
      the Purchaser with respect to each Draw Down shall be determined as set
      forth in Section 5.1(e) herein and settled on:

                        (i) as to the 1st through the 10th Trading Day after a
            Draw Down Pricing Period commences, the 12th Trading Day after such
            Draw Down Pricing Period commences;

                        (ii) as to the 11th through the 20th Trading Day after a
            Draw Down Pricing Period commences, the 22nd Trading Day after such
            Draw Down Pricing Period commences (such settlement periods and such
            settlement dates in subsection (i) and this subsection (ii) each
            referred to as a "Settlement Period" and a "Settlement Date",
            respectively).

                  (c) In connection with each Draw Down Pricing Period, the
      Company may set the Threshold Price in the Draw Down Notice.

                  (d) The minimum Investment Amount for any Draw Down shall be
      $250,000 and the maximum Investment Amount as to each Draw Down shall be
      6% of the EQY weighted average price field (as reported on Bloomberg
      Financial L.P. using the BLPH function) for the Common Stock for the sixty
      (60) calendar days immediately prior to the applicable Commencement Date
      (defined below) multiplied by the total trading volume in respect of the
      Common Stock for such period. Notwithstanding anything herein to the
      contrary, in the event the minimum Investment Amount is greater than the
      maximum Investment Amount, as to such Draw Down only, the minimum
      Investment Amount shall equal the maximum Investment Amount, but in no
      event shall the minimum Investment Amount be less than $100,000 such that
      if the maximum Investment Amount is less than $100,000, then the Company
      may not exercise a Draw Down at such time.

                  (e) The number of Shares of Common Stock to be issued on each
      Settlement Date shall be a number of shares equal to the sum of the
      quotients (for each trading day within the Settlement Period) of (x)
      1/20th of the Investment Amount, and (y) the Purchase Price on each
      Trading Day within the Settlement Period, subject to the following
      adjustments:

                        (i) if the VWAP on a given Trading Day is less than the
            Threshold Price, then that portion of the immediately pending
            Investment Amount to be paid on the Settlement Date shall be reduced
            by 1/20th of the Investment Amount and such Trading Day shall be
            withdrawn from the Settlement Period;

                        (ii) if during any Trading Day during the Settlement
            Period trading of the Common Stock on the Principal Market is
            suspended for more than

                                       19
<PAGE>

            three (3) hours, in the aggregate, or if any Trading Day during the
            Settlement Period is shortened because of a public holiday, then
            that portion of the immediately pending Investment Amount to be paid
            on the Settlement Date shall be reduced by 1/20th of the Investment
            Amount and such Trading Day shall be withdrawn from the Settlement
            Period; and

                        (iii) if during any Trading Day during the Settlement
            Period sales of Draw Down Shares pursuant to the Registration
            Statement are suspended by the Company in accordance with Section
            3(j) herein or Section 5(e) of the Registration Rights Agreement for
            more than three (3) hours, in the aggregate, during the Settlement
            Period, then that portion of the immediately pending Investment
            Amount to be paid on the Settlement Date shall be reduced by 1/20th
            of the Investment Amount and such Trading Day shall be withdrawn
            from the Settlement Period.

                  (f) The Company must inform the Purchaser by delivering a draw
      down notice, in the form of EXHIBIT D hereto (the "Draw Down Notice"), via
      facsimile transmission in accordance with Section 8.4 as to the amount of
      the Draw Down (the "Investment Amount") the Company wishes to exercise,
      before the first day of the Draw Down Pricing Period (the "Commencement
      Date"). If the Commencement Date is to be the date of the Draw Down
      Notice, the Draw Down Notice must be delivered to and receipt confirmed by
      the Purchaser at least one hour before trading commences on such date. At
      no time shall the Purchaser be required to purchase more than the maximum
      Investment Amount for a given Draw Down Pricing Period so that if the
      Company chooses not to exercise the maximum Investment Amount in a given
      Draw Down Pricing Period the Purchaser is not obligated to and shall not
      purchase more than the scheduled maximum Investment Amount in a subsequent
      Draw Down Pricing Period.

                  (g) On each Settlement Date, the Shares purchased by the
      Purchaser shall be delivered to The Depository Trust Company ("DTC") on
      the Purchaser's behalf. Upon the Company electronically delivering whole
      shares of Common Stock to the Purchaser or its designees via DTC through
      its Deposit Withdrawal Agent Commission ("DWAC") system by 1:00 p.m. EST,
      the Purchaser shall wire transfer immediately available funds to the
      Company's designated account on such day, less any fees as set forth in
      the Escrow Agreement, which fees shall be wired as directed in the Escrow
      Agreement. Upon the Company electronically delivering whole shares of
      Common Stock to the Purchaser or its designees DTC account via DWAC after
      1:00 p.m. EST, the Purchaser shall wire transfer next day available funds
      to the Company's designated account on such day, less any fees as set
      forth in the Escrow Agreement, which fees shall be wired as directed in
      the Escrow Agreement. In the event that either party elects to use the
      Escrow Agent, the Shares shall be credited by the Company to the DTC
      account designated by the Purchaser via DWAC upon receipt by the Escrow
      Agent of payment for the Draw Down Shares into the Escrow Agent's master
      escrow account, all as further set forth in the Escrow Agreement. The
      Escrow Agent shall be directed to pay the purchase price to the Company,
      net of one thousand dollars ($1,000) per Settlement as escrow

                                       20
<PAGE>

      expenses to the Escrow Agent and any additional fees as set forth in the
      Escrow Agreement.

                                    ARTICLE 6

                                   TERMINATION

            Section 6.1. TERM. The term of this Agreement shall begin on the
date hereof and shall end eighteen (18) months from the Effective Date or as
otherwise set forth in Section 6.2.

            Section 6.2. OTHER TERMINATION.

                  (a) This Agreement shall terminate upon one (1) Trading Day's
      notice if (i) an event resulting in a Material Adverse Effect has occurred
      and has not been cured for a period of thirty (30) days after giving
      notice thereof, (ii) the Common Stock is de-listed from the Principal
      Market unless such de-listing is in connection with the Company's
      subsequent listing of the Common Stock on the Nasdaq National Market,
      Nasdaq SmallCap Market, the American Stock Exchange or the New York Stock
      Exchange, or (iii) the Company files for protection from creditors under
      any applicable law.

                  (b) The Company may terminate this Agreement upon one (1)
      Trading Day's notice if the Purchaser shall fail to fund more than one
      properly noticed Draw Down within five (5) Trading Days of the end of the
      applicable Settlement Period.

            Section 6.3. EFFECT OF TERMINATION. In the event of termination by
the Company or the Purchaser, written notice thereof shall forthwith be given to
the other party and the transactions contemplated by this Agreement shall be
terminated without further action by either party. If this Agreement is
terminated as provided in Section 6.1 or 6.2 herein, this Agreement shall become
void and of no further force and effect, except for Sections 8.1, 8.2 and 8.9,
and Article 7 herein. Nothing in this Section 6.3 shall be deemed to release the
Company or the Purchaser from any liability for any breach under this Agreement,
or to impair the rights of the Company or the Purchaser to compel specific
performance by the other party of its obligations under this Agreement.

                                    ARTICLE 7

                                 INDEMNIFICATION

            Section 7.1. General Indemnity.

                  (a) The Company agrees to indemnify and hold harmless the
      Purchaser (and its directors, officers, affiliates, agents, successors and
      assigns) from and against any and all losses, liabilities, deficiencies,
      costs, damages and expenses (including, without

                                       21
<PAGE>

      limitation, reasonable attorneys' fees, charges and disbursements)
      incurred by the Purchaser as a result of any inaccuracy in or breach of
      the representations, warranties or covenants made by the Company herein.

                  (b) The Purchaser agrees to indemnify and hold harmless the
      Company and its directors, officers, affiliates, agents, successors and
      assigns from and against any and all losses, liabilities, deficiencies,
      costs, damages and expenses (including, without limitation, reasonable
      attorneys' fees, charges and disbursements) incurred by the Company as
      result of any material inaccuracy in or breach of the representations,
      warranties or covenants made by the Purchaser herein. Notwithstanding
      anything to the contrary herein, the Purchaser shall be liable under this
      Section 7.1(b) for only that amount as does not exceed the net proceeds to
      the Purchaser as a result of the sale of the Shares.

            Section 7.2. INDEMNIFICATION PROCEDURE. Any party entitled to
indemnification under this Article 7 (an "Indemnified Party") will give written
notice to the indemnifying party of any matters giving rise to a claim for
indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the indemnifying party of its obligations under this Article 7 except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought against an
Indemnified Party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment of counsel to the Indemnified Party a conflict of interest
between it and the indemnifying party may exist with respect of such action,
proceeding or claim, to assume the defense thereof with counsel reasonably
satisfactory to the Indemnified Party. In the event that the indemnifying party
advises an Indemnified Party that it will contest such a claim for
indemnification hereunder, or fails, within thirty (30) days of receipt of any
indemnification notice to notify, in writing, such person of its election to
defend, settle or compromise, at its sole cost and expense, any action,
proceeding or claim (or discontinues its defense at any time after it commences
such defense), then the Indemnified Party may, at its option, defend, settle or
otherwise compromise or pay such action or claim. In any event, unless and until
the indemnifying party elects in writing to assume and does so assume the
defense of any such claim, proceeding or action, the Indemnified Party's costs
(including reasonable attorneys' fees, charges and disbursements) and expenses
arising out of the defense, settlement or compromise of any such action, claim
or proceeding shall be losses subject to indemnification hereunder. The
Indemnified Party shall cooperate fully with the indemnifying party in
connection with any settlement negotiations or defense of any such action or
claim by the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the Indemnified Party, which relates to such
action or claim. The indemnifying party shall keep the Indemnified Party fully
apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. If the indemnifying party elects to defend
any such action or claim, then the Indemnified Party shall be entitled to
participate in such defense with counsel of its choice at its sole cost and
expense. The indemnifying party shall not be liable for any settlement of any
action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Article 7 to the contrary, the indemnifying
party shall not, without the Indemnified Party's

                                       22
<PAGE>

prior written consent, settle or compromise any claim or consent to entry of any
judgment in respect thereof which imposes any future obligation on the
Indemnified Party or which does not include, as an unconditional term thereof,
the giving by the claimant or the plaintiff to the Indemnified Party of a
release from all liability in respect of such claim. The indemnification
required by this Article 7 shall be made by periodic payments of the amount
thereof during the course of investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred, within ten (10)
Trading Days of written notice thereof to the indemnifying party so long as the
Indemnified Party irrevocably agrees to refund such moneys, with interest, if it
is ultimately determined by a court of competent jurisdiction that such party
was not entitled to indemnification. The indemnity agreements contained herein
shall be in addition to (a) any cause of action or similar rights of the
Indemnified Party against the indemnifying party or others, and (b) any
liabilities to which the indemnifying party may be subject.

                                    ARTICLE 8

                                  MISCELLANEOUS

            Section 8.1. FEES AND EXPENSES. Each of the parties to this
Agreement shall pay its own fees and expenses related to the transactions
contemplated by this Agreement; except that, the Company shall pay, at the
Initial Closing, a non-accountable expense allowance of $35,000 for the
Purchaser's legal, administrative and due diligence costs and expenses and any
other additional fees as set forth in the Escrow Agreement. In addition, the
Company shall pay all reasonable fees and expenses incurred by the Purchaser in
connection with any subsequent amendments, modifications or waivers of this
Agreement, the Escrow Agreement or the Registration Rights Agreement or incurred
in connection with the enforcement of this Agreement, the Escrow Agreement and
the Registration Rights Agreement, including, without limitation, all reasonable
attorneys' fees and expenses if such subsequent amendment, modification or
waiver is at the request of the Company. The Company shall pay all stamp or
other similar taxes and duties levied in connection with issuance of the Shares
pursuant hereto.

            Section 8.2. SPECIFIC ENFORCEMENT. The Company and the Purchaser
acknowledge and agree that irreparable damage would occur in the event that any
of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

            Section 8.3. ENTIRE AGREEMENT; AMENDMENT. The Transaction Documents
contain the entire understanding of the parties with respect to the matters
covered in the Transaction Documents. No provision of this Agreement may be
waived or amended other than by a written instrument signed by the party against
whom enforcement of any such amendment or waiver is sought and no condition to
closing any Draw Down in favor of the Purchaser may be waived by the Purchaser.

                                       23
<PAGE>

            Section 8.4. NOTICES. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery or facsimile at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:

If to the Company:            1250 Broadway
                              New York, New York 10001
                              Attn:  David Moore, CEO
                              Tel: (212) 231-7100
                              Fax:  (212) 764-1774

With copies to:               Proskauer Rose LLP
(which shall not constitute   1685 Broadway
notice)                       New York, New York 10036-8299
                              Attn: Ronald Papa, Esq.
                              Tel: (212) 969-3000
                              Fax: (212) 969-2000

If to Purchaser:              c/o Beacon Capital Management
                              Harbour House, 2nd Floor
                              Waterfront Drive
                              Road Town, Tortola
                              British Virgin Islands
                              Attn: David Sims
                              Fax: (284) 494-4090

with copies to:               Epstein Becker & Green P.C.
(which shall not constitute   250 Park Avenue
notice)                       New York, NY  10177-1211
                              Tel:  (212) 351-3771
                              Fax:  (212) 661-0989
                              Attn:  Robert F. Charron

            Any party hereto may from time to time change its address for
notices by giving written notice of such changed address to the other party
hereto in accordance herewith.

            Section 8.5. WAIVERS. No waiver by either party of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any other
provisions, condition or requirement hereof, nor

                                       24
<PAGE>

shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right accruing to it thereafter.

            Section 8.6. HEADINGS. The article, section and subsection headings
in this Agreement are for convenience only and shall not constitute a part of
this Agreement for any other purpose and shall not be deemed to limit or affect
any of the provisions hereof.

            Section 8.7. SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and assigns.
The parties hereto may not amend this Agreement or any rights or obligations
hereunder without the prior written consent of the Company and each Purchaser to
be affected by the amendment. After Initial Closing, the assignment by a party
to this Agreement of any rights hereunder shall not affect the obligations of
such party under this Agreement.

            Section 8.8. NO THIRD PARTY BENEFICIARIES.This Agreement is intended
for the benefit of the parties hereto and their respective permitted successors
and assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

            Section 8.9. GOVERNING LAW/ARBITRATION. This Agreement shall be
governed by and construed in accordance with the internal laws of the State of
New York, without giving effect to the choice of law provisions. The Company and
the Purchaser agree to submit themselves to the IN PERSONAM jurisdiction of the
state and federal courts situated within the Southern District of the State of
New York with regard to any controversy arising out of or relating to this
Agreement. Any dispute under this Agreement or any Exhibit attached hereto shall
be submitted to arbitration under the American Arbitration Association (the
"AAA") in New York City, New York, and shall be finally and conclusively
determined by the decision of a board of arbitration consisting of three (3)
members (hereinafter referred to as the "Board of Arbitration") selected as
according to the rules governing the AAA. The Board of Arbitration shall meet on
consecutive business days in New York City, New York, and shall reach and render
a decision in writing (concurred in by a majority of the members of the Board of
Arbitration) with respect to the amount, if any, which the losing party is
required to pay to the other party in respect of a claim filed. In connection
with rendering its decisions, the Board of Arbitration shall adopt and follow
the laws of the State of New York. To the extent practical, decisions of the
Board of Arbitration shall be rendered no more than thirty (30) calendar days
following commencement of proceedings with respect thereto. The Board of
Arbitration shall cause its written decision to be delivered to all parties
involved in the dispute. The Board of Arbitration shall be authorized and is
directed to enter a default judgment against any party refusing to participate
in the arbitration proceeding within thirty days of any deadline for such
participation. Any decision made by the Board of Arbitration (either prior to or
after the expiration of such thirty (30) calendar day period) shall be final,
binding and conclusive on the parties to the dispute, and entitled to be
enforced to the fullest extent permitted by law and entered in any court of
competent jurisdiction. The prevailing party shall be awarded its costs,
including attorneys' fees, from the non-prevailing party as part of the
arbitration award. Any party shall have the right to seek injunctive relief from
any court of competent jurisdiction in any case where such relief is available.
The prevailing party in such injunctive

                                       25
<PAGE>

action shall be awarded its costs, including reasonable attorneys' fees, from
the non-prevailing party.

            Section 8.10. COUNTERPARTS. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument and shall become effective when counterparts have been signed by
each party and delivered to the other parties hereto, it being understood that
all parties need not sign the same counterpart. Execution may be made by
delivery by facsimile.

            Section 8.11. PUBLICITY. Neither the Company nor the Purchaser shall
issue any press release or otherwise make any public statement or announcement
with respect to this Agreement or the transactions contemplated hereby or the
existence of this Agreement, without the prior written consent of the other
party. After the Initial Closing, the Company may issue a press release or
otherwise make a public statement or announcement with respect to this Agreement
or the transactions contemplated hereby or the existence of this Agreement;
PROVIDED, HOWEVER, that prior to issuing any such press release, making any such
public statement or announcement, the Company obtains the prior consent of the
Purchaser, which consent shall not be unreasonably withheld or delayed.

            Section 8.12. SEVERABILITY. The provisions of this Agreement are
severable and, in the event that The Board of Arbitration or any court or
officials of any regulatory agency of competent jurisdiction shall determine
that any one or more of the provisions or part of the provisions contained in
this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Agreement
and this Agreement shall be reformed and construed as if such invalid or illegal
or unenforceable provision, or part of such provision, had never been contained
herein, so that such provisions would be valid, legal and enforceable to the
maximum extent possible, so long as such construction does not materially
adversely effect the economic rights of either party hereto.

            Section 8.13. FURTHER ASSURANCES. From and after the date of this
Agreement, upon the request of the Purchaser or the Company, each of the Company
and the Purchaser shall execute and deliver such instruments, documents and
other writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this Agreement.

            Section 8.14. EFFECTIVENESS OF AGREEMENT. This Agreement shall
become effective only upon satisfaction of the conditions precedent to the
Initial Closing set forth in Article I of the Escrow Agreement.

                                    ARTICLE 9

                                   DEFINITIONS

            Section 9.1. Certain Definitions.

                                       26
<PAGE>

                  (a) "COMMENCEMENT DATE" shall have the meaning assigned to
      such term in Section 5.1(f) hereof.

                  (b) "COMMITMENT AMOUNT" shall have the meaning assigned to
      such term in Section 1.1 hereof.

                  (c) "COMMITMENT PERIOD" shall mean the period commencing on
      the Effective Date and expiring on the earliest to occur of (i) the date
      on which the Purchaser shall have exercised an aggregate amount of Draw
      Downs equal to the Commitment Amount, (ii) the date this Agreement is
      terminated in accordance with the terms hereof, or (iii) the date
      occurring eighteen (18) months from the Effective Date.

                  (d) "COMMON STOCK" shall mean the Company's common stock,
      $0.01 par value per share.

                  (e) "DRAW DOWN" shall have the meaning assigned to such term
      in Section 5.1(a) hereof.

                  (f) "DRAW DOWN NOTICE" shall have the meaning assigned to such
      term in Section 5.1(f) hereof.

                  (g) "DRAW DOWN PRICING PERIOD" shall mean a period of twenty
      (20) consecutive Trading Days beginning on the date specified in the Draw
      Down Notice (as defined in Section 5.1(f) herein); PROVIDED, HOWEVER, the
      Draw Down Pricing Period shall not begin before the day on which receipt
      of such notice is confirmed by the Purchaser.

                  (h) "EFFECTIVE DATE" shall mean the date the Registration
      Statement of the Company covering the Shares being subscribed for hereby
      is declared effective by the SEC.

                  (i) "EXCHANGE ACT" shall mean the Securities Exchange Act of
      1934, as amended, and the rules and regulations promulgated thereunder.

                  (j) "GAAP" shall mean the United States Generally Accepted
      Accounting Principles as those conventions, rules and procedures are
      determined by the Financial Accounting Standards Board and its predecessor
      agencies.

                  (k) "INITIAL CLOSING" shall have the meaning assigned to such
      term in Section 1.2 hereof.

                  (l) "INITIAL CLOSING DATE" shall have the meaning assigned to
      such term in Section 1.2 hereof.

                  (m) "INVESTMENT AMOUNT" shall have the meaning assigned to
      such term in Section 5.1(f) hereof.

                                       27
<PAGE>

                  (n) "MATERIAL ADVERSE EFFECT" shall mean any adverse effect on
      the business, operations, properties, or financial condition of the
      Company that is material and adverse to the Company and its subsidiaries
      and affiliates, taken as a whole and/or any condition, circumstance, or
      situation that would prohibit or otherwise materially interfere with the
      ability of the Company to perform any of its material obligations under
      this Agreement or the Registration Rights Agreement or to perform its
      obligations under any other Material Agreement (as defined in Section
      2.1(u)).

                  (o) "PRINCIPAL MARKET" shall mean initially the Nasdaq
      National Market and shall include the American Stock Exchange, the Nasdaq
      Small-Cap Market and the New York Stock Exchange if the Company becomes
      listed and trades on such market or exchange after the date hereof.

                  (p) "PURCHASE PRICE" shall mean, with respect to Draw Down
      Shares purchased during each applicable Settlement Period, 96.5% (the
      "Purchase Price Percentage") of the VWAP on the date in question; EXCEPT
      THAT, for each $50,000,000 increase in the Company's average market cap
      (calculated by multiplying the number of shares of Common Stock issued and
      outstanding by the VWAP of the Common Stock (the "Market Cap")) above
      $150,000,000 during the applicable Market Cap Period (as defined below),
      the Purchase Price Percentage as to such Draw Down only shall be increased
      by 0.25% until the Purchase Price Percentage equals 97%; PROVIDED,
      HOWEVER, each increase in the Purchase Price Percentage shall only occur
      if the corresponding increase in the Market Cap is maintained for at least
      the twenty (20) consecutive Trading Days immediately prior to the
      applicable Commencement Date (the "Market Cap Period"). By way of example,
      if the Market Cap on any Trading Day during the Market Cap Period is
      between $1 and $199,999,999, the Purchase Price Percentage shall be 96.5%.
      If the Market Cap is between $200,000,000 and $249,999,999 on each day
      during the entire Market Cap Period, the Purchase Price Percentage shall
      be 96.75%. If the Market Cap at any time during the subsequent Market Cap
      Period is less than $200,000,000, the Purchase Price Percentage shall
      return to 96.5% as to the subsequent Draw Down Pricing Period.

                  (q) "REGISTRATION Statement" shall mean the registration
      statement under the Securities Act, to be filed with the Securities and
      Exchange Commission for the registration of the Shares pursuant to the
      Registration Rights Agreement attached hereto as EXHIBIT A (the
      "Registration Rights Agreement).

                  (r) "SEC" shall mean the Securities and Exchange Commission.

                  (s) "SEC DOCUMENTS" shall mean the Company's latest Form 10-K
      or Form 10-KSB as of the time in question, all Forms 10-Q or 10-QSB and
      8-K filed thereafter, and the Proxy Statement for its latest fiscal year
      as of the time in question until such time as the Company no longer has an
      obligation to maintain the effectiveness of a Registration Statement as
      set forth in the Registration Rights Agreement.

                                       28
<PAGE>

                  (t) "SECURITIES ACT" shall mean the Securities and Exchange
      Act of 1934, as amended, and the rules and regulations promulgated
      thereunder.

                  (u) "SETTLEMENT" shall mean the delivery of the Draw Down
      Shares into the Purchaser's DTC account in exchange for payment therefor.

                  (v) "SETTLEMENT DATE" shall have the meaning assigned to such
      term in Section 5.1(b).

                  (w) "SETTLEMENT PERIOD" shall have the meaning assigned to
      such term in Section 5.1(b).

                  (x) "SHARES" shall mean, collectively, the shares of Common
      Stock of the Company being subscribed for hereunder (the "Draw Down
      Shares") and the shares of Common Stock issuable upon exercise of the
      Warrant (the "Warrant Shares").

                  (y) "THRESHOLD PRICE" shall mean the price per Share
      designated by the Company as the lowest VWAP during any Draw Down Pricing
      Period at which the Company will sell its Common Stock in accordance with
      this Agreement.

                  (z) "TRADING DAY" shall mean any day on which the Principal
      Market is open for business.

                  (aa) "TRANSACTION DOCUMENTS" shall mean this Agreement, the
      Registration Rights Agreement and the Escrow Agreement.

                  (bb) "VWAP" shall mean the daily volume weighted average price
      of the Company's Common Stock on the Principal Market as reported by
      Bloomberg Financial L.P. (based on a trading day from 9:30 a.m. Eastern
      Time to 4:02 p.m. Eastern Time) using the VAP function on the date in
      question.

                  (cc) "WARRANT" shall mean the warrant issued to the Purchaser
      pursuant to Section 4.2(f) hereof.

                            [SIGNATURE PAGE FOLLOWS]

                                       29
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorize officer as of this 21st day of
March, 2001.

                                        24/7 MEDIA, INC.

                                        By: /s/ DAVID J. MOORE_
                                            ------------------------------------
                                            David Moore, Chief Executive Officer

                                        MAYA COVE HOLDINGS INC.

                                        By: /s/ DAVID SIMS
                                            ------------------------------------
                                            David Sims, Director

                                       30

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