Document:

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                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

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                        Brand Intermediate Holdings, Inc.
                                     Issuer

               13% Senior Subordinated Pay-In-Kind Notes Due 2013

                                   ----------

                                    INDENTURE

                          Dated as of October 16, 2002

                                   ----------

               The Bank of New York Trust Company of Florida, N.A.
                                     Trustee

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<PAGE>

                              CROSS-REFERENCE TABLE

<Table>
<Caption>
  TIA                                                           Indenture
Section                                                          Section
-------                                                         ---------
<S>                                                           <C>
   310(a)(1) ............................................            7.10
      (a)(2) ............................................            7.10
      (a)(3) ............................................            N.A.
      (a)(4) ............................................            N.A.
      (a)(5) ............................................            7.10
      (b) ...............................................      7.08; 7.10
      (c) ...............................................            N.A.
   311(a) ...............................................            7.11
      (b) ...............................................            7.11
      (c) ...............................................            N.A.
   312(a) ...............................................            2.05
      (b) ...............................................           11.03
      (c) ...............................................           11.03
   313(a) ...............................................            7.06
      (b)(1) ............................................            7.06
      (b)(2) ............................................            7.06
      (c) ...............................................           11.02
      (d) ...............................................            7.06
   314(a) ...............................................      4.02; 4.11;
                                                                    11.02
      (b) ...............................................            N.A.
      (c)(1) ............................................           11.04
      (c)(2) ............................................           11.04
      (c)(3) ............................................            N.A.
      (d) ...............................................            N.A.
      (e) ...............................................           13.05
      (f) ...............................................            N.A.
   315(a) ...............................................            7.01
      (b) ...............................................     7.05; 11.02
      (c) ...............................................            7.01
      (d) ...............................................            7.01
      (e) ...............................................            6.11
   316(a)(last sentence) ................................           11.06
      (a)(1)(A) .........................................            6.05
      (a)(1)(B) .........................................            6.04
      (a)(2) ............................................            N.A.
      (b) ...............................................            6.07
   317(a)(1) ............................................            6.08
      (a)(2) ............................................            6.09
      (b) ...............................................            2.04
   318(a) ...............................................           11.01
</Table>

                           N.A. means Not Applicable.

----------

Note: This Cross-Reference Table shall not, for any purpose, be deemed to be
part of the Indenture.

<PAGE>
                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                        Page
                                                                                                        ----
<S>            <C>                                                                                      <C>
                                                  ARTICLE 1

                                        Definitions and Incorporation
                                                by Reference

SECTION 1.01.  Definitions..............................................................................   1
SECTION 1.02.  Other Definitions........................................................................  31
SECTION 1.03.  Incorporation by Reference of Trust Indenture Act........................................  32
SECTION 1.04.  Rules of Construction....................................................................  32

                                                  ARTICLE 2

                                               The Securities

SECTION 2.01.  Form and Dating..........................................................................  33
SECTION 2.02.  Execution and Authentication.............................................................  34
SECTION 2.03.  Registrar and Paying Agent...............................................................  34
SECTION 2.04.  Paying Agent To Hold Money in Trust......................................................  35
SECTION 2.05.  Securityholder Lists.....................................................................  35
SECTION 2.06.  Transfer and Exchange....................................................................  36
SECTION 2.07.  Replacement Securities...................................................................  36
SECTION 2.08.  Outstanding Securities...................................................................  36
SECTION 2.09.  Temporary Securities.....................................................................  37
SECTION 2.10.  Cancellation.............................................................................  37
SECTION 2.11.  Defaulted Interest.......................................................................  37
SECTION 2.12.  CUSIP Numbers............................................................................  37
SECTION 2.13.  Issuance of PIK Securities...............................................................  38

                                                  ARTICLE 3

                                                 Redemption

SECTION 3.01.  Notices to Trustee.......................................................................  39
SECTION 3.02.  Selection of Securities To Be Redeemed...................................................  39
SECTION 3.03.  Notice of Redemption.....................................................................  39
SECTION 3.04.  Effect of Notice of Redemption...........................................................  40
SECTION 3.05.  Deposit of Redemption Price..............................................................  40
SECTION 3.06.  Securities Redeemed in Part..............................................................  41
</Table>

<PAGE>
                                                                               2

<Table>
<S>            <C>                                                                                      <C>
                                                  ARTICLE 4

                                                  Covenants

SECTION 4.01.  Payment of Securities....................................................................  41
SECTION 4.02.  SEC Reports..............................................................................  41
SECTION 4.03.  Limitation on Indebtedness...............................................................  42
SECTION 4.04.  Limitation on Restricted Payments........................................................  47
SECTION 4.05.  Limitation on Restrictions on Distributions from Restricted Subsidiaries.................  54
SECTION 4.06.  Limitation on Sales of Assets and Subsidiary Stock.......................................  55
SECTION 4.07.  Limitation on Affiliate Transactions.....................................................  57
SECTION 4.08.  Limitation on the Sale or Issuance of Capital Stock of Restricted Subsidiaries...........  59
SECTION 4.09.  Change of Control........................................................................  60
SECTION 4.10.  Limitation on Line of Business...........................................................  62
SECTION 4.11.  Compliance Certificate...................................................................  62
SECTION 4.12.  Further Instruments and Acts.............................................................  62

                                                  ARTICLE 5

                                              Successor Company

SECTION 5.01.  When Company May Merge or Transfer Assets................................................  63

                                                  ARTICLE 6

                                            Defaults and Remedies

SECTION 6.01.  Events of Default........................................................................  64
SECTION 6.02.  Acceleration.............................................................................  66
SECTION 6.03.  Other Remedies...........................................................................  67
SECTION 6.04.  Waiver of Past Defaults..................................................................  67
SECTION 6.05.  Control by Majority......................................................................  67
SECTION 6.06.  Limitation on Suits......................................................................  68
SECTION 6.07.  Rights of Holders to Receive Payment.....................................................  68
SECTION 6.08.  Collection Suit by Trustee...............................................................  68
SECTION 6.09.  Trustee May File Proofs of Claim.........................................................  69
SECTION 6.10.  Priorities...............................................................................  69
SECTION 6.11.  Undertaking for Costs....................................................................  70
SECTION 6.12.  Waiver of Stay or Extension Laws.........................................................  70
</Table>

<PAGE>
                                                                               3

<Table>
<S>            <C>                                                                                      <C>
                                                  ARTICLE 7

                                                   Trustee

SECTION 7.01.  Duties of Trustee........................................................................  70
SECTION 7.02.  Rights of Trustee........................................................................  72
SECTION 7.03.  Individual Rights of Trustee.............................................................  72
SECTION 7.04.  Trustee's Disclaimer.....................................................................  73
SECTION 7.05.  Notice of Defaults.......................................................................  73
SECTION 7.06.  Reports by Trustee to Holders............................................................  73
SECTION 7.07.  Compensation and Indemnity...............................................................  73
SECTION 7.08.  Replacement of Trustee...................................................................  74
SECTION 7.09.  Successor Trustee by Merger..............................................................  76
SECTION 7.10.  Eligibility; Disqualification............................................................  76
SECTION 7.11.  Preferential Collection of Claims Against Company........................................  76

                                                  ARTICLE 8

                                     Discharge of Indenture; Defeasance

SECTION 8.01.  Discharge of Liability on Securities; Defeasance.........................................  77
SECTION 8.02.  Conditions to Defeasance.................................................................  78
SECTION 8.03.  Application of Trust Money...............................................................  79
SECTION 8.04.  Repayment to Company.....................................................................  79
SECTION 8.05.  Indemnity for Government Obligations.....................................................  80
SECTION 8.06.  Reinstatement............................................................................  80

                                                  ARTICLE 9

                                                 Amendments

SECTION 9.01.  Without Consent of Holders...............................................................  80
SECTION 9.02.  With Consent of Holders..................................................................  81
SECTION 9.03.  Compliance with Trust Indenture Act......................................................  83
SECTION 9.04.  Revocation and Effect of Consents and Waivers............................................  83
SECTION 9.05.  Notation on or Exchange of Securities....................................................  83
SECTION 9.06.  Trustee To Sign Amendments...............................................................  83
SECTION 9.07.  Payment for Consent......................................................................  84
</Table>

<PAGE>
                                                                               4

<Table>
<S>            <C>                                                                                      <C>
                                                 ARTICLE 10

                                                Subordination

SECTION 10.01.  Agreement To Subordinate................................................................  84
SECTION 10.02.  Liquidation, Dissolution, Bankruptcy....................................................  84
SECTION 10.03.  Default on Senior Indebtedness of the Company...........................................  85
SECTION 10.04.  Acceleration of Payment of Securities...................................................  87
SECTION 10.05.  When Distribution Must Be Paid Over.....................................................  87
SECTION 10.06.  Subrogation.............................................................................  87
SECTION 10.07.  Relative Rights.........................................................................  87
SECTION 10.08.  Subordination May Not Be Impaired by Company............................................  88
SECTION 10.09.  Rights of Trustee and Paying Agent......................................................  88
SECTION 10.10.  Distribution or Notice to Representative................................................  88
SECTION 10.11.  Article 10 Not To Prevent Events of Default or Limit Right To Accelerate................  89
SECTION 10.12.  Trust Moneys Not Subordinated...........................................................  89
SECTION 10.13.  Trustee Entitled To Rely................................................................  89
SECTION 10.14.  Trustee To Effectuate Subordination.....................................................  90
SECTION 10.15.  Trustee Not Fiduciary for Holders of Senior Indebtedness of the Company.................  90
SECTION 10.16.  Reliance by Holders of Senior Indebtedness of the Company on Subordination Provisions...  90

                                                 ARTICLE 11

                                                Miscellaneous

SECTION 11.01.  Trust Indenture Act Controls............................................................  90
SECTION 11.02.  Notices.................................................................................  91
SECTION 11.03.  Communication by Holders with Other Holders.............................................  91
SECTION 11.04.  Certificate and Opinion as to Conditions Precedent......................................  92
SECTION 11.05.  Statements Required in Certificate or Opinion...........................................  92
SECTION 11.06.  When Securities Disregarded.............................................................  92
SECTION 11.07.  Rules by Trustee, Paying Agent and Registrar............................................  93
SECTION 11.08.  Legal Holidays..........................................................................  93
SECTION 11.09.  Governing Law...........................................................................  93
SECTION 11.10.  No Recourse Against Others..............................................................  93
SECTION 11.11.  Successors..............................................................................  93
SECTION 11.12.  Multiple Originals......................................................................  94
SECTION 11.13.  Table of Contents; Headings.............................................................  94
</Table>

<PAGE>

                                                                               5

Rule 144A/Regulation S/IAI Appendix

Exhibit 1 - Form of Security

<PAGE>

                                    INDENTURE dated as of October 16, 2002,
                           among BRAND INTERMEDIATE HOLDINGS, INC., a Delaware
                           corporation (the "Company"), and The Bank of New York
                           Trust Company of Florida, N.A., a National
                           Association (the "Trustee").

                  Each party agrees as follows for the benefit of the other
parties and for the equal and ratable benefit of the Holders of the Company's
Securities and PIK Securities:

                                    ARTICLE 1

                   Definitions and Incorporation by Reference

                  SECTION 1.01. Definitions.

                  "2012 Securities" means the 12% Senior Subordinated Notes Due
2012 of Brand Services issued under the Brand Indenture.

                  "Additional Assets" means (1) any property, plant or equipment
used in a Related Business; (2) the Capital Stock of a Person that becomes a
Restricted Subsidiary as a result of the acquisition of such Capital Stock by
Brand Services or another Restricted Subsidiary; or (3) Capital Stock
constituting a minority interest in any Person that at such time is a Restricted
Subsidiary; provided, however, that any such Restricted Subsidiary described in
clause (2) or (3) above is primarily engaged in a Related Business.

                  "Affiliate" of any specified Person means any other Person,
directly or indirectly, controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition,
"control" when used with respect to any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing. For
purposes of Sections 4.04, 4.06 and 4.07 only, "Affiliate" shall also mean any
beneficial owner of Capital Stock representing 10% or more of the total voting
power of the Voting Stock (on a fully diluted

<PAGE>

                                                                               2

basis) of the Company or Brand Services, as applicable, or of rights or warrants
to purchase such Capital Stock (whether or not currently exercisable) and any
Person who would be an Affiliate of any such beneficial owner pursuant to the
first sentence hereof.

                  "Asset Disposition" means any sale, lease, transfer or other
disposition (or series of related sales, leases, transfers or dispositions) by
Brand Services or any Restricted Subsidiary, including any disposition by means
of a merger, consolidation or similar transaction (each referred to for the
purposes of this definition as a "disposition"), of:

                  (1) any shares of Capital Stock of a Restricted Subsidiary
         (other than directors' qualifying shares or shares required by
         applicable law to be held by a Person other than Brand Services or a
         Restricted Subsidiary),

                  (2) all or substantially all the assets of any division or
         line of business of Brand Services or any Restricted Subsidiary, or

                  (3) any other assets of Brand Services or any Restricted
         Subsidiary outside of the ordinary course of business of Brand Services
         or such Restricted Subsidiary

(other than, in the case of clauses (1), (2) and (3) above, (A) a disposition by
a Restricted Subsidiary to Brand Services or by Brand Services or a Restricted
Subsidiary to a Wholly Owned Subsidiary, (B) for purposes of Section 4.06 only,
(x) a disposition that constitutes a Restricted Payment permitted by Section
4.04 or a Permitted Investment and (y) a disposition of all or substantially all
the assets of Brand Services in accordance with Section 5.01, (C) sales or
grants of licenses to use the patents, trade secrets, know-how and other
intellectual property of Brand Services or its Restricted Subsidiaries to the
extent such license does not prohibit Brand Services or any Restricted
Subsidiary from using the intellectual property licensed or require Brand
Services or any Restricted Subsidiary to pay any fees for any such use; (D) the
disposition of cash or Temporary Cash Investments; (E) Investments and
Restricted Payments permitted by this Indenture; and (F) a disposition of assets
with a fair market value of less than $1,000,000).

<PAGE>
                                                                               3

                  "Attributable Debt" in respect of a Sale/Leaseback Transaction
means, as at the time of determination, the present value (discounted at the
interest rate borne by the Securities, compounded annually) of the total
obligations of the lessee for rental payments during the remaining term of the
lease included in such Sale/Leaseback Transaction (including any period for
which such lease has been extended); provided, however, that if such
Sale/Leaseback Transaction results in a Capital Lease Obligation, the amount of
Indebtedness represented thereby will be determined in accordance with the
definition of "Capital Lease Obligation".

                  "Average Life" means, as of the date of determination, with
respect to any Indebtedness, the quotient obtained by dividing (1) the sum of
the products of the numbers of years from the date of determination to the dates
of each successive scheduled principal payment of or redemption or similar
payment with respect to such Indebtedness multiplied by the amount of such
payment by (2) the sum of all such payments.

                  "Bank Indebtedness" means all Obligations pursuant to the
Credit Agreement.

                  "Board of Directors" with respect to a Person means the Board
of Directors of such Person or any committee thereof duly authorized to act on
behalf of such Board.

                  "Brand Holdings" means Brand Holdings, LLC, a Delaware limited
liability company, and its successors.

                  "Brand Indenture" means the indenture, dated as of October 16,
2002, among Brand Services, the Company, the Subsidiary Guarantors and The Bank
of New York Trust Company of Florida, N.A., as trustee.

                  "Brand Services" means Brand Services, Inc., a Delaware
corporation, and its successors.

                  "Business Day" means each day which is not a Legal Holiday.

                  "Capital Lease Obligation" means an obligation that is
required to be classified and accounted for as a capital lease for financial
reporting purposes in accordance with GAAP, and the amount of Indebtedness
represented by such obligation shall be the capitalized amount of such
obligation determined in accordance with

<PAGE>
                                                                               4

GAAP; and the Stated Maturity thereof shall be the date of the last payment of
rent or any other amount due under such lease prior to the first date upon which
such lease may be terminated by the lessee without payment of a penalty.

                  "Capital Stock" of any Person means any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) equity of such Person,
including any Preferred Stock, but excluding any debt securities convertible
into such equity.

                  "Change of Control" means the occurrence of any of the
following events:

                  (1) prior to the earlier to occur of (A) the first public
         offering of common stock of the Company or (B) the first public
         offering of common stock of Brand Services, the Permitted Holders cease
         to be the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under
         the Exchange Act), directly or indirectly, of a majority in the
         aggregate of the total voting power of the Voting Stock of the Company
         or Brand Services, whether as a result of issuance of securities of the
         Company or Brand Services, any merger, consolidation, liquidation or
         dissolution of the Company or Brand Services, or any direct or indirect
         transfer of securities by Parent or otherwise (for purposes of this
         clause (1) and clause (2) below, the Permitted Holders shall be deemed
         to beneficially own any Voting Stock of a Person (the "specified
         Person") held by any other Person (the "parent entity") so long as the
         Permitted Holders beneficially own (as so defined), directly or
         indirectly, in the aggregate a majority of the voting power of the
         Voting Stock of the parent entity);

                  (2) after the earlier to occur of (A) the first public
         offering of common stock of the Company or (B) the first public
         offering of common stock of Brand Services, any "person" (as such term
         is used in Sections 13(d) and 14(d) of the Exchange Act), other than
         one or more Permitted Holders, is or becomes the beneficial owner (as
         defined in clause (1) above, except that for purposes of this clause
         (2) such person shall be deemed to have "beneficial ownership" of all
         shares that any such person has the right to acquire, whether such
         right is exercisable immediately or only after the passage

<PAGE>
                                                                               5

         of time), directly or indirectly, of more than 35% of the total voting
         power of the Voting Stock of the Company or Brand Services and the
         Permitted Holders beneficially own (as defined in clause (1) above),
         directly or indirectly, in the aggregate a lesser percentage of the
         total voting power of the Voting Stock of the Company or Brand Services
         than such other person and do not have the right or ability by voting
         power, contract or otherwise to elect or designate for election a
         majority of the Board of Directors of the Company or Brand Services
         (for the purposes of this clause (2), such other person shall be deemed
         to beneficially own any Voting Stock of a specified person held by a
         parent entity, if such other person is the beneficial owner (as defined
         in this clause (2)), directly or indirectly, of more than 35% of the
         voting power of the Voting Stock of such parent entity and the
         Permitted Holders beneficially own (as defined in clause (1) above),
         directly or indirectly, in the aggregate a lesser percentage of the
         voting power of the Voting Stock of such parent entity and do not have
         the right or ability by voting power, contract or otherwise to elect or
         designate for election a majority of the board of directors of such
         parent entity);

                  (3) individuals who on the Issue Date constituted the Board of
         Directors of the Company or Brand Services (together with any new
         directors whose election by such Board of Directors of the Company or
         Brand Services or whose nomination for election by the shareholders of
         the Company or Brand Services, as the case may be, was approved by a
         vote of a majority of the directors of the Company or Brand Services,
         as the case may be, then still in office who were either directors on
         the Issue Date or whose election or nomination for election was
         previously so approved) cease for any reason to constitute a majority
         of the Board of Directors of the Company or Brand Services then in
         office;

                  (4) the adoption of a plan relating to the liquidation or
         dissolution of the Company or Brand Services; or

                  (5) the merger or consolidation of the Company or Brand
         Services with or into another Person or the merger of another Person
         with or into the Company or Brand Services, or the sale of all or
         substantially all the assets of the Company or Brand Services
         (determined on a consolidated basis) to another

<PAGE>
                                                                               6

         Person other than (i) a transaction in which the surviving or
         transferee Person is controlled by the Permitted Holders or (ii) a
         transaction following which (A) in the case of a merger or
         consolidation transaction, holders of securities that represented 100%
         of the Voting Stock of the Company or Brand Services immediately prior
         to such transaction (or other securities into which such securities are
         converted as part of such merger or consolidation transaction) own
         directly or indirectly at least a majority of the voting power of the
         Voting Stock of the surviving Person in such merger or consolidation
         transaction immediately after such transaction and in substantially the
         same proportion as before the transaction and (B) in the case of a sale
         of assets transaction, each transferee becomes an obligor in respect of
         the Securities and a Subsidiary of the transferor of such assets.

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

                  "Company" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the indenture securities.

                  "Consolidated Coverage Ratio" as of any date of determination
means the ratio of:

                  (x) the aggregate amount of EBITDA for the period of the most
         recent four consecutive fiscal quarters ending prior to the date of
         such determination for which financing statements are publicly
         available to

                  (y) Consolidated Interest Expense for such four fiscal
         quarters;

provided, however, that:

                  (1) if Brand Services or any Restricted Subsidiary has
         Incurred any Indebtedness since the beginning of such period that
         remains outstanding or if the transaction giving rise to the need to
         calculate the Consolidated Coverage Ratio is an Incurrence of
         Indebtedness, or both, EBITDA and Consolidated Interest Expense for
         such period shall be calculated after giving effect on a pro forma

<PAGE>
                                                                               7

         basis to such Indebtedness as if such Indebtedness had been Incurred on
         the first day of such period,

                  (2) if Brand Services or any Restricted Subsidiary has repaid,
         repurchased, defeased or otherwise discharged any Indebtedness since
         the beginning of such period or if any Indebtedness is to be repaid,
         repurchased, defeased or otherwise discharged (in each case other than
         Indebtedness Incurred under any revolving credit facility unless such
         Indebtedness has been permanently repaid and has not been replaced) on
         the date of the transaction giving rise to the need to calculate the
         Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense
         for such period shall be calculated on a pro forma basis as if such
         discharge had occurred on the first day of such period and as if Brand
         Services or such Restricted Subsidiary has not earned the interest
         income actually earned during such period in respect of cash or
         Temporary Cash Investments used to repay, repurchase, defease or
         otherwise discharge such Indebtedness,

                  (3) if since the beginning of such period Brand Services or
         any Restricted Subsidiary shall have made any Asset Disposition, EBITDA
         for such period shall be reduced by an amount equal to EBITDA (if
         positive) directly attributable to the assets which are the subject of
         such Asset Disposition for such period, or increased by an amount equal
         to EBITDA (if negative), directly attributable thereto for such period
         and Consolidated Interest Expense for such period shall be reduced by
         an amount equal to the Consolidated Interest Expense directly
         attributable to any Indebtedness of Brand Services or any Restricted
         Subsidiary repaid, repurchased, defeased or otherwise discharged with
         respect to Brand Services and its continuing Restricted Subsidiaries in
         connection with such Asset Disposition for such period (or, if the
         Capital Stock of any Restricted Subsidiary is sold, the Consolidated
         Interest Expense for such period directly attributable to the
         Indebtedness of such Restricted Subsidiary to the extent Brand Services
         and its continuing Restricted Subsidiaries are no longer liable for
         such Indebtedness after such sale),

                  (4) if since the beginning of such period Brand Services or
         any Restricted Subsidiary (by merger or otherwise) shall have made an
         Investment in any

<PAGE>
                                                                               8

         Restricted Subsidiary (or any person which becomes a Restricted
         Subsidiary) or an acquisition of assets, including any acquisition of
         assets occurring in connection with a transaction requiring a
         calculation to be made hereunder, which constitutes all or
         substantially all of an operating unit of a business, EBITDA and
         Consolidated Interest Expense for such period shall be calculated after
         giving pro forma effect thereto (including the Incurrence of any
         Indebtedness) as if such Investment or acquisition occurred on the
         first day of such period, and

                  (5) if since the beginning of such period any Person (that
         subsequently became a Restricted Subsidiary or was merged with or into
         Brand Services or any Restricted Subsidiary since the beginning of such
         period) shall have made any Asset Disposition, any Investment or
         acquisition of assets that would have required an adjustment pursuant
         to clause (3) or (4) above if made by Brand Services or a Restricted
         Subsidiary during such period, EBITDA and Consolidated Interest Expense
         for such period shall be calculated after giving pro forma effect
         thereto as if such Asset Disposition, Investment or acquisition
         occurred on the first day of such period.

For purposes of this definition, whenever pro forma effect is to be given to an
acquisition of assets, the amount of income or earnings relating thereto and the
amount of Consolidated Interest Expense associated with any Indebtedness
Incurred in connection therewith, the pro forma calculations shall be determined
in good faith by a responsible financial or accounting Officer of Brand
Services. Any such pro forma calculations may include operating expense
reductions (net of associated expenses) for such period resulting from the
acquisition or other Investment that is being given pro forma effect that would
be permitted pursuant to Rule 11-02 of Regulation S-X promulgated by the SEC. If
any Indebtedness bears a floating rate of interest and is being given pro forma
effect, the interest on such Indebtedness shall be calculated as if the rate in
effect on the date of determination had been the applicable rate for the entire
period (taking into account any Interest Rate Agreement applicable to such
Indebtedness if such Interest Rate Agreement has a remaining term in excess of
12 months).

                  "Consolidated Interest Expense" means, for any period, the
total interest expense of Brand Services and

<PAGE>
                                                                               9

its consolidated Restricted Subsidiaries, plus, to the extent not included in
such interest expense, and to the extent incurred by Brand Services or its
Restricted Subsidiaries, without duplication,

                  (1) interest expense attributable to capital leases and the
         interest expense attributable to leases constituting part of a
         Sale/Leaseback Transaction,

                  (2) amortization of debt discount and debt issuance cost,

                  (3) capitalized interest,

                  (4) non-cash interest expense,

                  (5) commissions, discounts and other fees and charges owed
         with respect to letters of credit and bankers' acceptance financing,

                  (6) net payments pursuant to Hedging Obligations,

                  (7) dividends accrued in respect of all Disqualified Stock of
         Brand Services and all Preferred Stock of any of the Subsidiaries of
         Brand Services, to the extent held by Persons other than Brand Services
         or a Wholly Owned Subsidiary (other than dividends payable solely in
         Capital Stock (other than Disqualified Stock of Brand Services);
         provided, however, that such dividends will be multiplied by a fraction
         the numerator of which is one and the denominator of which is one minus
         the effective combined tax rate of the issuer of such Preferred Stock
         (expressed as a decimal) for such period (as estimated by the Chief
         Financial Officer of Brand Services in good faith),

                  (8) interest incurred in connection with Investments in
         discontinued operations,

                  (9) interest accruing on any Indebtedness of any other Person
         to the extent such Indebtedness is Guaranteed by (or secured by the
         assets of) Brand Services or any Restricted Subsidiary, and

                  (10) the cash contributions to any employee stock ownership
         plan or similar trust to the extent such contributions are used by such
         plan or trust to pay interest or fees to any Person (other than Brand

<PAGE>
                                                                              10

         Services) in connection with Indebtedness Incurred by such plan or
         trust,

less, to the extent included in such total interest expense, the amortization
during such period of capitalized financing costs associated with the
Transactions.

                  "Consolidated Net Income" means, for any period, the net
income of Brand Services and its consolidated Subsidiaries; provided, however,
that there shall not be included in such Consolidated Net Income:

                  (1) any net income of any Person (other than Brand Services)
         if such Person is not a Restricted Subsidiary, except that

                           (A) subject to the exclusion contained in clause (4)
                  below, Brand Services' equity in the net income of any such
                  Person for such period shall be included in such Consolidated
                  Net Income up to the aggregate amount of cash actually
                  distributed by such Person during such period to Brand
                  Services or a Restricted Subsidiary as a dividend or other
                  distribution (subject, in the case of a dividend or other
                  distribution paid to a Restricted Subsidiary, to the
                  limitations contained in clause (3) below) and

                           (B) Brand Services' equity in a net loss of any such
                  Person for such period shall be included in determining such
                  Consolidated Net Income;

                  (2) any net income (or loss) of any Person acquired by Brand
         Services or a Subsidiary in a pooling of interests transaction for any
         period prior to the date of such acquisition;

                  (3) any net income of any Restricted Subsidiary if such
         Restricted Subsidiary is subject to restrictions, directly or
         indirectly, on the payment of dividends or the making of distributions
         by such Restricted Subsidiary, directly or indirectly, to Brand
         Services, except that

                           (A) subject to the exclusion contained in clause (4)
                  below, Brand Services' equity in the net income of any such
                  Restricted Subsidiary for such period shall be included in
                  such

<PAGE>
                                                                              11

                  Consolidated Net Income up to the aggregate amount of cash
                  that, at the date of calculation of such Consolidated Net
                  Income, could have been distributed by such Restricted
                  Subsidiary during such period to Brand Services or another
                  Restricted Subsidiary as a dividend or other distribution
                  (subject, in the case of a dividend or other distribution paid
                  to another Restricted Subsidiary, to the limitation contained
                  in this clause); and

                           (B) Brand Services' equity in a net loss of any such
                  Restricted Subsidiary for such period shall be included in
                  determining such Consolidated Net Income;

                  (4) any gain or loss realized upon the sale or other
         disposition of any assets of Brand Services, its consolidated
         Subsidiaries or any other Person (including pursuant to any
         sale-and-leaseback arrangement) which is not sold or otherwise disposed
         of in the ordinary course of business and any gain or loss realized
         upon the sale or other disposition of any Capital Stock of any Person;

                  (5) extraordinary gains or losses;

                  (6) the cumulative effect of a change in accounting
         principles;

                  (7) any non-recurring fees, charges or other expenses
         (including bonus and retention payments and severance expenses) made or
         incurred in connection with the Transactions;

                  (8) amortization charges resulting from purchase accounting
         adjustments with respect to the Transactions and other transactions
         occurring prior to the Issue Date; and

                  (9) the amount of amortization or write-off of deferred
         financing costs and debt issuance costs during such period and any
         premium or penalty paid in connection with redeeming or retiring
         Indebtedness prior to the stated maturity thereof pursuant to the
         agreement governing such Indebtedness, in each case in connection with
         the Transactions.

Notwithstanding the foregoing, for the purpose of Section 4.04 only, there shall
be excluded from Consolidated Net

<PAGE>
                                                                              12

Income any repurchases, repayments or redemptions of Investments, proceeds
realized on the sale of Investments or return of capital to Brand Services or a
Restricted Subsidiary to the extent such repurchases, repayments, redemptions,
proceeds or returns increase the amount of Restricted Payments permitted under
such section pursuant to Section 4.04(c)(3)(D).

                  "Credit Agreement" means the Credit Agreement to be entered
into by and among Brand Services, certain of its Subsidiaries, the Company, the
lenders referred to therein, Credit Suisse First Boston, as Administrative
Agent, and JPMorgan Chase Bank, as Syndication Agent, together with the related
documents thereto (including the term loans and revolving loans thereunder, any
guarantees and security documents), as amended, extended, renewed, restated,
supplemented or otherwise modified (in whole or in part, and without limitation
as to amount, terms, conditions, covenants and other provisions) from time to
time, and any agreement (and related document) governing Indebtedness incurred
to Refinance, in whole or in part, the borrowings and commitments then
outstanding or permitted to be outstanding under such Credit Agreement or a
successor Credit Agreement, whether by the same or any other lender or group of
lenders.

                  "Currency Agreement" means any foreign exchange contract,
currency swap agreement or other similar agreement with respect to currency
values.

                  "Default" means any event which is, or after notice or passage
of time or both would be, an Event of Default.

                  "Designated Senior Indebtedness" means, with respect to a
Person, (1) the Bank Indebtedness and (2) any other Senior Indebtedness of such
Person which, at the date of determination, has an aggregate principal amount
outstanding of, or under which, at the date of determination, the holders
thereof are committed to lend up to, at least $25.0 million and is specifically
designated by such Person in the instrument evidencing or governing such Senior
Indebtedness as "Designated Senior Indebtedness" for purposes of this Indenture.

                  "Disqualified Stock" means, with respect to any Person, any
Capital Stock which by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable at the option of the holder) or
upon the happening of any event:

<PAGE>
                                                                              13

                  (1) matures or is mandatorily redeemable (other than if
         redeemable only for Capital Stock of such Person which is not itself
         Disqualified Stock) pursuant to a sinking fund obligation or otherwise;

                  (2) is convertible or exchangeable at the option of the holder
         for Indebtedness or Disqualified Stock; or

                  (3) is mandatorily redeemable or must be purchased upon the
         occurrence of certain events or otherwise, in whole or in part,

in each case on or prior to the first anniversary of the Stated Maturity of the
Securities; provided, however, that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof giving holders thereof the right
to require such Person to purchase or redeem such Capital Stock upon the
occurrence of an "asset sale" or "change of control" occurring prior to the
first anniversary of the Stated Maturity of the Securities shall not constitute
Disqualified Stock if (1) the "asset sale" or "change of control" provisions
applicable to such Capital Stock are not more favorable to the holders of such
Capital Stock than the terms applicable to the Securities in Sections 4.06 and
4.09 of this Indenture and (2) any such requirement only becomes operative after
compliance with such terms applicable to the Securities, including the purchase
of any Securities tendered pursuant thereto.

The amount of any Disqualified Stock that does not have a fixed redemption,
repayment or repurchase price will be calculated in accordance with the terms of
such Disqualified Stock as if such Disqualified Stock were redeemed, repaid or
repurchased on any date on which the amount of such Disqualified Stock is to be
determined pursuant to this Indenture; provided, however, that if such
Disqualified Stock could not be required to be redeemed, repaid or repurchased
at the time of such determination, the redemption, repayment or repurchase price
will be the book value of such Disqualified Stock as reflected in the most
recent financial statements of such Person.

                  "EBITDA" for any period means the sum of Consolidated Net
Income, plus the following to the extent deducted in calculating such
Consolidated Net Income:

                  (1) all income tax expense of Brand Services and its
         consolidated Restricted Subsidiaries,

<PAGE>
                                                                              14

                  (2) Consolidated Interest Expense,

                  (3) depreciation and amortization expense of Brand Services
         and its consolidated Restricted Subsidiaries (excluding amortization
         expense attributable to a prepaid operating activity item that was paid
         in cash in a prior period),

                  (4) all other non-cash charges of Brand Services and its
         consolidated Restricted Subsidiaries (excluding any such non-cash
         charge to the extent that it represents an accrual of or reserve for
         cash expenditures in any future period) less all non-cash items of
         income (other than accrual of revenue in the ordinary course of
         business) of Brand Services and its consolidated Restricted
         Subsidiaries, and

                  (5) restructuring costs and acquisition integration costs and
         fees, including cash severance payments made in connection with the
         acquisitions,

in each case for such period. Notwithstanding the foregoing, the provision for
taxes based on the income or profits of, and the depreciation and amortization
and non-cash charges of, a Restricted Subsidiary shall be added to Consolidated
Net Income to compute EBITDA only to the extent (and in the same proportion,
including by reason of minority interests) that the net income of such
Restricted Subsidiary was included in calculating Consolidated Net Income and
only if a corresponding amount would be permitted at the date of determination
to be dividended to Brand Services by such Restricted Subsidiary without prior
approval (that has not been obtained), pursuant to the terms of its charter and
all agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to such Restricted Subsidiary or its
stockholders.

                  "Exchange Act" means the U.S. Securities Exchange Act of 1934,
as amended.

                  "Fair Market Value" means, with respect to any asset or
property, the price which could be negotiated in an arm's-length, free market
transaction, for cash, between a willing seller and a willing and able buyer,
neither of whom is under undue pressure or compulsion to complete the
transaction. Fair Market Value will be determined in good faith by the Board of
Directors, whose determination will be conclusive and evidenced by a resolution
of the Board of Directors; provided, however, that for purposes of Section
4.04(c)(3)(B), if the Fair

<PAGE>
                                                                              15

Market Value of the property or assets in question is so determined to be in
excess of $10.0 million, such determination must be confirmed by an Independent
Qualified Party.

                  "Foreign Subsidiary" means any Restricted Subsidiary of Brand
Services that is not organized under the laws of the United States or any State
thereof or the District of Columbia.

                  "GAAP" means generally accepted accounting principles in the
United States of America as in effect as of the Issue Date, including those set
forth in:

                  (1) the opinions and pronouncements of the Accounting
         Principles Board of the American Institute of Certified Public
         Accountants,

                  (2) statements and pronouncements of the Financial Accounting
         Standards Board,

                  (3) such other statements by such other entity as approved by
         a significant segment of the accounting profession, and

                  (4) the rules and regulations of the SEC governing the
         inclusion of financial statements (including pro forma financial
         statements) in periodic reports required to be filed pursuant to
         Section 13 of the Exchange Act, including opinions and pronouncements
         in staff accounting bulletins and similar written statements from the
         accounting staff of the SEC. All ratios and computations based on GAAP
         contained in this Indenture shall be computed in conformity with GAAP.

                  "Guarantee" means any obligation, contingent or otherwise, of
any Person directly or indirectly guaranteeing any Indebtedness of any Person
and any obligation, direct or indirect, contingent or otherwise, of such Person:

                  (1) to purchase or pay (or advance or supply funds for the
         purchase or payment of) such Indebtedness of such Person (whether
         arising by virtue of partnership arrangements, or by agreements to
         keep-well, to purchase assets, goods, securities or services, to
         take-or-pay or to maintain financial statement conditions or otherwise)
         or

<PAGE>
                                                                              16

                  (2) entered into for the purpose of assuring in any other
         manner the obligee of such Indebtedness of the payment thereof or to
         protect such obligee against loss in respect thereof (in whole or in
         part);

provided, however, that the term "Guarantee" shall not include endorsements for
collection or deposit in the ordinary course of business. The term "Guarantee"
used as a verb has a corresponding meaning. The term "Guarantor" shall mean any
Person Guaranteeing any obligation.

                  "Hedging Obligations" of any Person means the obligations of
such Person pursuant to any Interest Rate Agreement or Currency Agreement.

                  "Holder" or "Securityholder" means the Person in whose name a
Security is registered on the Registrar's books.

                  "Incur" means issue, assume, Guarantee, incur or otherwise
become liable for; provided, however, that any Indebtedness or Capital Stock of
a Person existing at the time such Person becomes a Restricted Subsidiary
(whether by merger, consolidation, acquisition or otherwise) shall be deemed to
be Incurred by such Person at the time it becomes a Restricted Subsidiary. The
term "Incurrence" when used as a noun shall have a correlative meaning. Solely
for purposes of determining compliance with Section 4.03:

                  (1) amortization of debt discount or the accretion of
         principal with respect to a non-interest bearing or other discount
         security,

                  (2) the payment of regularly scheduled interest in the form of
         additional Indebtedness of the same instrument or the payment of
         regularly scheduled dividends on Capital Stock in the form of
         additional Capital Stock of the same class and with the same terms, and

                  (3) the obligation to pay a premium in respect of Indebtedness
         arising in connection with the issuance of a notice of redemption or
         making of a mandatory offer to purchase such Indebtedness

will not be deemed to be the Incurrence of Indebtedness.

<PAGE>
                                                                              17

                  "Indebtedness" means, with respect to any Person on any date
of determination (without duplication):

                  (1) the principal in respect of (A) indebtedness of such
         Person for money borrowed and (B) indebtedness evidenced by notes,
         debentures, bonds or other similar instruments for the payment of which
         such Person is responsible or liable, including, in each case, any
         premium on such indebtedness to the extent such premium has become due
         and payable;

                  (2) all Capital Lease Obligations of such Person and all
         Attributable Debt in respect of Sale/Leaseback Transactions entered
         into by such Person;

                  (3) all obligations of such Person issued or assumed as the
         deferred purchase price of property, all conditional sale obligations
         of such Person and all obligations of such Person under any title
         retention agreement (but excluding trade accounts payable arising in
         the ordinary course of business);

                  (4) all obligations of such Person for the reimbursement of
         any obligor on any letter of credit, banker's acceptance or similar
         credit transaction (other than obligations with respect to letters of
         credit securing obligations (other than obligations described in
         clauses (1) through (3) above) entered into in the ordinary course of
         business of such Person to the extent such letters of credit are not
         drawn upon or, if and to the extent drawn upon, such drawing is
         reimbursed no later than the tenth Business Day following payment on
         the letter of credit);

                  (5) the principal component or liquidation preference of all
         obligations of such Person with respect to the redemption, repayment or
         other repurchase of any Disqualified Stock of such Person or, if such
         Person is Brand Services or a Restricted Subsidiary, any Preferred
         Stock (but excluding, in each case, any accrued dividends);

                  (6) all obligations of the type referred to in clauses (1)
         through (5) of other Persons and all dividends of other Persons for the
         payment of which, in either case, such Person is responsible or liable,
         directly or indirectly, as obligor, guarantor or otherwise, including
         by means of any Guarantee;

<PAGE>
                                                                              18

                  (7) all obligations of the type referred to in clauses (1)
         through (6) of other Persons secured by any Lien on any property or
         asset of such Person (whether or not such obligation is assumed by such
         Person), the amount of such obligation being deemed to be the lesser of
         the value of such property or assets and the amount of the obligation
         so secured; and

                  (8) to the extent not otherwise included in this definition,
         Hedging Obligations of such Person.

The amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above and the
maximum liability, upon the occurrence of the contingency giving rise to the
obligation, of any contingent obligations at such date; provided, however, that
in the case of Indebtedness sold at a discount, the amount of such Indebtedness
at any time will be the accreted value thereof at such time.

                  "Indenture" means this Indenture as amended or supplemented
from time to time.

                  "Independent Qualified Party" means an investment banking
firm, accounting firm or appraisal firm of national standing; provided, however,
that such firm is not an Affiliate of Brand Services.

                  "Interest Rate Agreement" means any interest rate swap
agreement, interest rate cap agreement or other financial agreement or
arrangement with respect to exposure to interest rates.

                  "Investment" in any Person means any direct or indirect
advance, loan (other than advances to customers in the ordinary course of
business that are recorded as accounts receivable on the balance sheet of the
lender) or other extensions of credit (including by way of Guarantee or similar
arrangement) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the account
or use of others), or any purchase or acquisition for value of Capital Stock,
Indebtedness or other similar instruments issued by such Person. Except as
otherwise provided for herein, the amount of an Investment shall be

<PAGE>
                                                                              19

its fair market value at the time the Investment is made and without giving
effect to subsequent changes in value.

                  For purposes of the definition of "Unrestricted Subsidiary",
the definition of "Restricted Payment" and Section 4.04:

                  (1) "Investment" shall include the portion (proportionate to
         Brand Services' equity interest in such Subsidiary) of the fair market
         value of the net assets of any Subsidiary of Brand Services at the time
         that such Subsidiary is designated an Unrestricted Subsidiary;
         provided, however, that upon a redesignation of such Subsidiary as a
         Restricted Subsidiary, Brand Services shall be deemed to continue to
         have a permanent "Investment" in an Unrestricted Subsidiary equal to an
         amount (if positive) equal to (x) Brand Services' "Investment" in such
         Subsidiary at the time of such redesignation less (y) the portion
         (proportionate to Brand Services' equity interest in such Subsidiary)
         of the fair market value of the net assets of such Subsidiary at the
         time of such redesignation; and

                  (2) any property transferred to or from an Unrestricted
         Subsidiary shall be valued at its fair market value at the time of such
         transfer, in each case as determined in good faith by the Board of
         Directors of Brand Services.

                  "Issue Date" means October 16, 2002.

                  "Lien" means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including any conditional sale or other
title retention agreement or lease in the nature thereof).

                  "Net Available Cash" from an Asset Disposition means cash
payments received therefrom (including any cash payments received by way of
deferred payment of principal pursuant to a note or installment receivable or
otherwise and proceeds from the sale or other disposition of any securities
received as consideration, but only as and when received, but excluding any
other consideration received in the form of assumption by the acquiring Person
of Indebtedness or other obligations relating to such properties or assets or
received in any other non-cash form), in each case net of:

                  (1) all legal, title and recording tax expenses, commissions
         and other fees and expenses incurred,

<PAGE>
                                                                              20

         and all Federal, state, provincial, foreign and local taxes required to
         be accrued as a liability under GAAP, as a consequence of such Asset
         Disposition,

                  (2) all payments made on any Indebtedness which is secured by
         any assets subject to such Asset Disposition, in accordance with the
         terms of any Lien upon or other security agreement of any kind with
         respect to such assets, or which must by its terms, or in order to
         obtain a necessary consent to such Asset Disposition, or by applicable
         law, be repaid out of the proceeds from such Asset Disposition,

                  (3) all distributions and other payments required to be made
         to minority interest holders in Restricted Subsidiaries as a result of
         such Asset Disposition, and

                  (4) the deduction of appropriate amounts provided by the
         seller as a reserve, in accordance with GAAP, against any liabilities
         associated with the property or other assets disposed in such Asset
         Disposition and retained by Brand Services or any Restricted Subsidiary
         after such Asset Disposition.

                  "Net Cash Proceeds", with respect to any issuance or sale of
Capital Stock or Indebtedness, means the cash proceeds of such issuance or sale
net of attorneys' fees, accountants' fees, underwriters' or placement agents'
fees, discounts or commissions and brokerage, consultant and other fees actually
incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.

                  "Obligations" means, with respect to any Indebtedness, all
obligations for principal, premium, interest, penalties, fees, indemnifications,
reimbursements, and other amounts payable pursuant to the documentation
governing such Indebtedness.

                  "Officer" means the Chairman of the Board, the President, any
Vice President, the Treasurer or the Secretary of Brand Services.

                  "Officers' Certificate" means a certificate signed by two
Officers.

<PAGE>
                                                                              21

                  "Opinion of Counsel" means a written opinion from legal
counsel who is acceptable to the Trustee. The counsel may be an employee of or
counsel to Brand Services or the Trustee.

                  "Parent Guaranty" means the Guarantee by the Company of the
obligations of Brand Services with respect to the 2012 Securities.

                  "Permitted Holders" means J.P. Morgan Partners, LLC, a
Delaware limited liability company, and any Persons controlled by it; JPMP
Global Investors, L.P., a Delaware limited partnership; JPMP Global Investors
(Cayman), L.P., a Cayman Islands Exempted Limited Partnership; JPMP Global
Investors (Cayman) II, L.P., a Cayman Islands Exempted Limited Partnership; JPMP
Global Investors A, L.P., a Delaware limited partnership; and J.P. Morgan
Partners (BHCA), L.P., a Delaware limited partnership.

                  "Permitted Investment" means an Investment by Brand Services
or any Restricted Subsidiary in:

                  (1) Brand Services, a Restricted Subsidiary or a Person that
         will, upon the making of such Investment, become a Restricted
         Subsidiary; provided, however, that the primary business of such
         Restricted Subsidiary is a Related Business;

                  (2) another Person if, as a result of such Investment, such
         other Person is merged or consolidated with or into, or transfers or
         conveys all or substantially all its assets to, Brand Services or a
         Restricted Subsidiary; provided, however, that such Person's primary
         business is a Related Business;

                  (3) cash and Temporary Cash Investments;

                  (4) receivables owing to Brand Services or any Restricted
         Subsidiary if created or acquired in the ordinary course of business
         and payable or dischargeable in accordance with customary trade terms;
         provided, however, that such trade terms may include such concessionary
         trade terms as Brand Services or any such Restricted Subsidiary deems
         reasonable under the circumstances;

                  (5) payroll, travel and similar advances to cover matters that
         are expected at the time of such

<PAGE>
                                                                              22

         advances ultimately to be treated as expenses for accounting purposes
         and that are made in the ordinary course of business;

                  (6) loans or advances to employees made (a) in the ordinary
         course of business consistent with past practices of Brand Services or
         such Restricted Subsidiary or (b) to purchase Capital Stock of Brand
         Services or Parent in connection with the Transactions in an aggregate
         amount not in excess of $5.0 million;

                  (7) stock, obligations or securities received in settlement of
         debts created in the ordinary course of business and owing to Brand
         Services or any Restricted Subsidiary or in satisfaction of judgments;

                  (8) any Person to the extent such Investment represents the
         non-cash portion of the consideration received for an Asset Disposition
         as permitted pursuant to Section 4.06;

                  (9) any Person where such Investment was acquired by Brand
         Services or any of its Restricted Subsidiaries (a) in exchange for any
         other Investment or accounts receivable held by Brand Services or any
         such Restricted Subsidiary in connection with or as a result of a
         bankruptcy, workout, reorganization or recapitalization of the issuer
         of such other Investment or accounts receivable or (b) as a result of a
         foreclosure by Brand Services or any of its Restricted Subsidiaries
         with respect to any secured Investment or other transfer of title with
         respect to any secured Investment in default;

                  (10) any person to the extent such Investments consist of
         prepaid expenses, negotiable instruments held for collection and lease,
         utility and workers' compensation, performance and other similar
         deposits made in the ordinary course of business by Brand Services or
         any Restricted Subsidiary;

                  (11) any Person to the extent such Investments consist of
         Hedging Obligations and Currency Agreements otherwise permitted under
         Section 4.03;

                  (12) Persons to the extent such Investments are in existence
         on the Issue Date;

<PAGE>
                                                                              23

                  (13) Persons to the extent such Investments, when taken
         together with all other Investments made pursuant to this clause (13)
         outstanding on the date such Investment is made, do not exceed the
         greater of $20.0 million and 3.5% of the total consolidated assets of
         Brand Services and its Restricted Subsidiaries, as set forth on Brand
         Services' consolidated balance sheet for the most recently ended fiscal
         quarter for which financial statements are publicly available.

                  "Person" means any individual, corporation, partnership,
limited liability company, joint venture, association, joint-stock company,
trust, unincorporated organization, government or any agency or political
subdivision thereof or any other entity.

                  "PIK Interest" means pay-in-kind interest payable on all
outstanding Securities in the form of the issuance of additional Securities on
the same terms and conditions and with the same CUSIP numbers (if available) as
the Securities being issued on the Issue Date.

                  "PIK Securities" means Securities issued as PIK Interest.

                  "Preferred Stock", as applied to the Capital Stock of any
Person, means Capital Stock of any class or classes (however designated) which
is preferred as to the payment of dividends or distributions, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of Capital Stock of any other class of
such Person.

                  "principal" of a Security means the principal of the Security
plus the premium, if any, payable on the Security which is due or overdue or is
to become due at the relevant time.

                  "Public Equity Offering" means an underwritten primary public
offering of common stock of the Company pursuant to an effective registration
statement under the Securities Act.

                  "Purchase Money Indebtedness" means Indebtedness of Brand
Services and its Restricted Subsidiaries incurred in the normal course of
business for the purpose of financing all or any part of the purchase price, or
the cost of installation or construction, of property or equipment.

<PAGE>
                                                                              24

                  "Rating Agency" means Standard & Poor's Ratings Group, Inc.
and Moody's Investors Service, Inc. or if Standard & Poor's Ratings Group, Inc.
or Moody's Investors Service, Inc. or both shall not make a rating on the
Securities publicly available, a nationally recognized statistical rating agency
or agencies, as the case may be, selected by Brand Services (as certified by a
resolution of the Board of Directors of Brand Services) which shall be
substituted for Standard & Poor's Ratings Group, Inc. or Moody's Investors
Service, Inc. or both, as the case may be.

                  "Refinance" means, in respect of any Indebtedness, to
refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or
to issue other Indebtedness in exchange or replacement for, such Indebtedness.
"Refinanced" and "Refinancing" shall have correlative meanings.

                  "Refinancing Indebtedness" means Indebtedness that Refinances
any Indebtedness of Brand Services or any Restricted Subsidiary existing on the
Issue Date or Incurred in compliance with this Indenture, including Indebtedness
that Refinances Refinancing Indebtedness; provided, however, that:

                  (1) such Refinancing Indebtedness has a Stated Maturity no
         earlier than the Stated Maturity of the Indebtedness being Refinanced;

                  (2) such Refinancing Indebtedness has an Average Life at the
         time such Refinancing Indebtedness is Incurred that is equal to or
         greater than the Average Life of the Indebtedness being Refinanced;

                  (3) such Refinancing Indebtedness has an aggregate principal
         amount (or, if Incurred with original issue discount, an aggregate
         issue price) that is equal to or less than the aggregate principal
         amount (or, if Incurred with original issue discount, the aggregate
         accreted value) then outstanding or committed (plus fees and expenses,
         including any premium and defeasance costs) under the Indebtedness
         being Refinanced; and

                  (4) if the Indebtedness being Refinanced is subordinated in
         right of payment to the Securities, such Refinancing Indebtedness is
         subordinated in right of payment to the Securities at least to the same
         extent as the Indebtedness being Refinanced;

<PAGE>
                                                                              25

provided further, however, that Refinancing Indebtedness shall not include (A)
Indebtedness of a Subsidiary that Refinances Indebtedness of Brand Services or
the Company, (B) Indebtedness of Brand Services or a Restricted Subsidiary that
Refinances Indebtedness of an Unrestricted Subsidiary or (C) Indebtedness of
Brand Services that Refinances Indebtedness of the Company.

                  "Registration Rights Agreement" means the Registration Rights
Agreement, dated October 16, 2002, among Brand Services, the Company, the
Subsidiary Guarantors, Credit Suisse First Boston Corporation and J.P. Morgan
Securities Inc.

                  "Related Business" means any business in which Brand Services
was engaged on the Issue Date and any business related, ancillary or
complementary to any business of Brand Services in which Brand Services was
engaged on the Issue Date.

                  "Representative" means, with respect to a Person, any trustee,
agent or representative (if any) for an issue of Senior Indebtedness of such
Person.

                  "Restricted Payment" with respect to any Person means:

                  (1) the declaration or payment of any dividends or any other
         distributions of any sort in respect of its Capital Stock (including
         any payment in connection with any merger or consolidation involving
         such Person) or similar payment to the direct or indirect holders of
         its Capital Stock (other than dividends or distributions payable solely
         in its Capital Stock (other than Disqualified Stock) and dividends or
         distributions payable solely to Brand Services or a Restricted
         Subsidiary, and other than pro rata dividends or other distributions
         made by a Subsidiary that is not a Wholly Owned Subsidiary to minority
         stockholders (or owners of an equivalent interest in the case of a
         Subsidiary that is an entity other than a corporation)),

                  (2) the purchase, redemption or other acquisition or
         retirement for value of any Capital Stock of Brand Holdings or the
         Company, if such Person is the Company, or of Brand Holdings, the
         Company or Brand Services, if such Person is Brand Services or a
         Restricted Subsidiary held by any Person (other than Brand Services or
         a Restricted Subsidiary), including in connection with any merger

<PAGE>
                                                                              26

         or consolidation and including the exercise of any option to exchange
         any Capital Stock (other than into Capital Stock of Brand Services that
         is not Disqualified Stock),

                  (3) the purchase, repurchase, redemption, defeasance or other
         acquisition or retirement for value, prior to scheduled maturity,
         scheduled repayment or scheduled sinking fund payment of any
         Subordinated Obligations of such Person (other than the purchase,
         repurchase or other acquisition of Subordinated Obligations purchased
         in anticipation of satisfying a sinking fund obligation, principal
         installment or final maturity, in each case due within one year of the
         date of such purchase, repurchase or other acquisition), or

                  (4) the making of any Investment (other than a Permitted
         Investment) in any Person.

                  "Restricted Subsidiary" means any Subsidiary of Brand Services
that is not an Unrestricted Subsidiary.

                  "Sale/Leaseback Transaction" means an arrangement relating to
property owned by Brand Services or a Restricted Subsidiary on the Issue Date or
thereafter acquired by Brand Services or a Restricted Subsidiary whereby Brand
Services or a Restricted Subsidiary transfers such property to a Person and
Brand Services or a Restricted Subsidiary leases it from such Person.

                  "SEC" means the U.S. Securities and Exchange Commission.

                  "Secured Indebtedness" means any Indebtedness of Brand
Services secured by a Lien.

                  "Securities" means the Securities issued under this Indenture.

                  "Securities Act" means the U.S. Securities Act of 1933, as
amended.

                  "Senior Indebtedness" means, with respect to a Person:

                  (1) Indebtedness of such Person, whether outstanding on the
         Issue Date or thereafter Incurred, and

<PAGE>
                                                                              27

                  (2) all other Obligations of such Person (including interest
         accruing on or after the filing of any petition in bankruptcy or for
         reorganization relating to such Person whether or not post-filing
         interest is allowed in such proceeding) in respect of Indebtedness
         described in clause (1) above

unless, in the case of clauses (1) and (2), in the instrument creating or
evidencing the same or pursuant to which the same is outstanding, it is provided
that such Indebtedness or other obligations are subordinate or pari passu in
right of payment to the Securities, the 2012 Securities, the Parent Guaranty or
the Subsidiary Guaranty of such Person, as the case may be; provided, however,
that Senior Indebtedness of such Person shall not include:

                  (1) any obligation of such Person to the Company or any
         Subsidiary,

                  (2) any liability for Federal, state, local or other taxes
         owed or owing by such Person,

                  (3) any accounts payable or other liability to trade creditors
         arising in the ordinary course of business (including guarantees
         thereof or instruments evidencing such liabilities),

                  (4) any Indebtedness or other Obligation of such Person which
         is subordinate or junior in any respect to any other Indebtedness or
         other Obligation of such Person,

                  (5) that portion of any Indebtedness which at the time of
         Incurrence is Incurred in violation of this Indenture, and

                  (6) any obligations of such Person with respect to any Capital
         Stock.

                  "Senior Subordinated Indebtedness" means, with respect to a
Person, the 2012 Securities (in the case of Brand Services), the Securities and
the Parent Guaranty (in the case of the Company), the Subsidiary Guaranty (in
the case of a Subsidiary Guarantor) and any other Indebtedness of such Person
that specifically provides that such Indebtedness is to rank pari passu with the
2012 Securities, the Securities and the Parent Guaranty or such Subsidiary
Guaranty, as the case may be, in right of payment and is not subordinated by its
terms in right of payment to any Indebtedness or other obligation of such Person
which is not Senior Indebtedness of such Person.

<PAGE>
                                                                              28

                  "Significant Subsidiary" means any Restricted Subsidiary that
would be a "Significant Subsidiary" of Brand Services within the meaning of Rule
1-02 under Regulation S-X promulgated by the SEC.

                  "Stated Maturity" means, with respect to any security, the
date specified in such security as the fixed date on which the final payment of
principal of such security is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase of such security at the option of the holder thereof upon the
happening of any contingency beyond the control of the issuer unless such
contingency has occurred).

                  "Subordinated Obligation" means, with respect to a Person, any
Indebtedness of such Person (whether outstanding on the Issue Date or thereafter
Incurred) which is subordinate or junior in right of payment to the Securities,
the 2012 Securities, the Parent Guaranty or a Subsidiary Guaranty of such
Person, as the case may be, pursuant to a written agreement to that effect.

                  "Subsidiary" means, in respect of any Person, any corporation,
association, partnership or other business entity of which more than 50% of the
total voting power of shares of Voting Stock is at the time owned or controlled,
directly or indirectly, by (1) such Person, (2) such Person and one or more
Subsidiaries of such Person or (3) one or more Subsidiaries of such Person.

                  "Subsidiary Guarantor" means each Subsidiary of Brand Services
that executes the Brand Indenture as a guarantor on the issue date of the 2012
Securities and each other Subsidiary of Brand Services that thereafter
guarantees the 2012 Securities pursuant to the terms of the Brand Indenture.

                  "Subsidiary Guaranty" means a Guarantee by a Subsidiary
Guarantor of the obligations of Brand Services with respect to the 2012
Securities.

                  "Temporary Cash Investments" means any of the following:

                  (1) any investment in direct obligations of the United States
         of America or any agency thereof or

<PAGE>
                                                                              29

         obligations guaranteed by the United States of America or any agency
         thereof,

                  (2) investments in demand and time deposit accounts,
         certificates of deposit and money market deposits maturing within 180
         days of the date of acquisition thereof issued by a bank or trust
         company which is organized under the laws of the United States of
         America, any state thereof or any foreign country recognized by the
         United States of America, and which bank or trust company has capital,
         surplus and undivided profits aggregating in excess of $50.0 million
         (or the foreign currency equivalent thereof) and has outstanding debt
         that is rated "A" (or such similar equivalent rating) or higher by at
         least one nationally recognized statistical rating organization (as
         defined in Rule 436 under the Securities Act) or any money-market fund
         sponsored by a registered broker dealer or mutual fund distributor,

                  (3) repurchase obligations with a term of not more than 30
         days for underlying securities of the types described in clause (1)
         above entered into with a bank meeting the qualifications described in
         clause (2) above,

                  (4) investments in commercial paper, maturing not more than 90
         days after the date of acquisition, issued by a corporation (other than
         an Affiliate of Brand Services) organized and in existence under the
         laws of the United States of America or any foreign country recognized
         by the United States of America with a rating at the time as of which
         any investment therein is made of "P-1" (or higher) according to
         Moody's Investors Service, Inc. or "A-1" (or higher) according to
         Standard and Poor's Ratings Group, and

                  (5) investments in securities with maturities of six months or
         less from the date of acquisition issued or fully guaranteed by any
         state, commonwealth or territory of the United States of America, or by
         any political subdivision or taxing authority thereof, and rated at
         least "A" by Standard & Poor's Ratings Group or "A" by Moody's
         Investors Service, Inc.

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S.C.
Sections 77aaa-77bbbb) as in effect on the date of this Indenture.

<PAGE>
                                                                              30

                  "Transactions" means, collectively, the following transaction
to occur on or prior to the Issue Date: (a) the consummation of the merger of
the Company and Brand Acquisition Corp., a Delaware corporation, pursuant to the
Agreement and Plan of Merger, dated as of August 9, 2002, among Brand Holdings,
LLC, Brand Acquisition Corp., DLJ Brand Holdings, Inc. and the sellers named
therein, (b) the execution and delivery of the Credit Agreement and the initial
borrowings thereunder, (c) the closing of the Tender Offer for and the receipt
of the requisite consents in connection with the consent solicitation in respect
of Brand Services' $130 million aggregate principal amount of its existing
10 1/4% Senior Notes Due 2008, (d) the equity contribution to the Company from
affiliates of J.P. Morgan Partners, LLC and other equity investors totaling
approximately $220 million, (e) the repurchase of $14.5 million aggregate
principal amount of Brand Services' existing 7.03% Subordinated Note Due 2008
and (f) the redemption of the Brand Services' $59.1 million aggregate
liquidation preference of its existing 14.5% Senior Exchangeable Preferred Stock
Due 2008.

                  "Trustee" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor.

                  "Trust Officer" means the Chairman of the Board, the President
or any other officer or assistant officer of the Trustee assigned by the Trustee
to administer its corporate trust matters.

                  "Uniform Commercial Code" means the New York Uniform
Commercial Code as in effect from time to time.

                  "Unrestricted Subsidiary" means:

                   (1) any Subsidiary of Brand Services that at the time of
         determination shall be designated an Unrestricted Subsidiary by the
         Board of Directors of Brand Services in the manner provided below; and

                  (2) any Subsidiary of an Unrestricted Subsidiary.

The Board of Directors of Brand Services may designate any Subsidiary of Brand
Services (including any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns
any Capital Stock or Indebtedness of, or owns or holds any Lien on any property
of, Brand

<PAGE>
                                                                              31

Services or any other Subsidiary of Brand Services that is not a Subsidiary of
the Subsidiary to be so designated; provided, however, that either (A) the
Subsidiary to be so designated has total assets of $1,000 or less or (B) if such
Subsidiary has assets greater than $1,000, such designation would be permitted
under Section 4.04. The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; provided, however, that immediately
after giving effect to such designation (A) Brand Services could Incur $1.00 of
additional Indebtedness under Section 4.03(b) and (B) no Default shall have
occurred and be continuing. Any such designation by the Board of Directors shall
be evidenced to the Trustee by promptly filing with the Trustee a copy of the
resolution of the Board of Directors of Brand Services giving effect to such
designation and an Officers' Certificate certifying that such designation
complied with the foregoing provisions.

                  "U.S. Government Obligations" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable at the issuer's option.

                  "Voting Stock" of a Person means all classes of Capital Stock
or other interests (including partnership interests) of such Person then
outstanding and normally entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof.

                  "Wholly Owned Subsidiary" means a Restricted Subsidiary all
the Capital Stock of which (other than directors' qualifying shares) is owned by
Brand Services or one or more Wholly Owned Subsidiaries.

                  SECTION 1.02. Other Definitions.

<Table>
<Caption>
                                                       Defined in
                           Term                         Section
                           ----                        ----------
<S>                                                    <C>
         "Affiliate Transaction" ................        4.07(a)
         "Bankruptcy Law" .......................        6.01
         "Blockage Notice" ......................       10.03
         "Change of Control Offer" ..............        4.09(b)
</Table>

<PAGE>
                                                                              32

<Table>
<S>                                                    <C>
         "covenant defeasance option" ...........        8.01(b)
         "Custodian" ............................        6.01
         "Event of Default" .....................        6.01
         "legal defeasance option" ..............        8.01(b)
         "Legal Holiday" ........................       11.08
         "Offer" ...............................         4.06(b)
         "pay the Securities" ...................       10.03
         "Paying Agent" .........................        2.03
         "Payment Blockage Period" ..............       10.03
         "Registrar".............................        2.03
         "Successor Company" ....................        5.01(a)(1)
</Table>

                  SECTION 1.03. Incorporation by Reference of Trust Indenture
Act. This Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

                  "Commission" means the SEC;

                  "indenture securities" means the Securities;

                  "indenture security holder" means a Securityholder;

                  "indenture to be qualified" means this Indenture;

                  "indenture trustee" or "institutional trustee" means the
Trustee; and

                  "obligor" on the indenture securities means the Company and
any other obligor on the indenture securities.

                  All other TIA terms used in this Indenture that are defined by
the TIA, defined by TIA reference to another statute or defined by SEC rule have
the meanings assigned to them by such definitions.

                  SECTION 1.04. Rules of Construction. Unless the context
otherwise requires:

<PAGE>
                                                                              33

                  (1) a term has the meaning assigned to it;

                  (2) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP;

                  (3) "or" is not exclusive;

                  (4) "including" means including without limitation;

                  (5) words in the singular include the plural and words in the
         plural include the singular;

                  (6) unsecured Indebtedness shall not be deemed to be
         subordinate or junior to Secured Indebtedness merely by virtue of its
         nature as unsecured Indebtedness;

                  (7) Secured Indebtedness shall not be deemed to be subordinate
         or junior to any other Secured Indebtedness merely because it has a
         junior priority with respect to the same collateral;

                  (8) the principal amount of any noninterest bearing or other
         discount security at any date shall be the principal amount thereof
         that would be shown on a balance sheet of the issuer dated such date
         prepared in accordance with GAAP;

                  (9) the principal amount of any Preferred Stock shall be (i)
         the maximum liquidation value of such Preferred Stock or (ii) the
         maximum mandatory redemption or mandatory repurchase price with respect
         to such Preferred Stock, whichever is greater; and

                  (10) all references to the date the Securities were originally
         issued shall refer to the Issue Date.

                                    ARTICLE 2

                                 The Securities

                  SECTION 2.01. Form and Dating. Provisions relating to the
Securities are set forth in the Rule 144A/Regulation S/IAI Appendix attached
hereto (the "Appendix"), which is hereby incorporated in and expressly made part
of this Indenture. The Securities

<PAGE>
                                                                              34

and the Trustee's certificate of authentication shall be substantially in the
form of Exhibit 1 to the Appendix, which is hereby incorporated in and expressly
made a part of this Indenture. The Securities may have notations, legends or
endorsements required by law, stock exchange rule, agreements to which the
Company is subject, if any, or usage (provided that any such notation, legend or
endorsement is in a form acceptable to the Company). Each Security shall be
dated the date of its authentication. The terms of the Securities set forth in
the Appendix are part of the terms of this Indenture.

                  SECTION 2.02. Execution and Authentication. Two Officers shall
sign the Securities for the Company by manual or facsimile signature.

                  If an Officer whose signature is on a Security no longer holds
that office at the time the Trustee authenticates the Security, the Security
shall be valid nevertheless.

                  A Security shall not be valid until an authorized signatory of
the Trustee manually signs the certificate of authentication on the Security.
The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

                  The Trustee shall authenticate and deliver Securities as set
forth in the Appendix.

                  The Trustee may appoint an authenticating agent reasonably
acceptable to the Company to authenticate the Securities. Unless limited by the
terms of such appointment, an authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Registrar, Paying Agent or agent
for service of notices and demands.

                  SECTION 2.03. Registrar and Paying Agent. The Company shall
maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent"). The Registrar
shall keep a register of the Securities and of their transfer and exchange. The
Company may have one or more co-registrars and one or more additional paying
agents. The term "Paying Agent" includes any additional paying agent.

<PAGE>
                                                                              35

                  The Company shall enter into an appropriate agency agreement
with any Registrar, Paying Agent or co-registrar not a party to this Indenture,
which shall incorporate the terms of the TIA. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify
the Trustee of the name and address of any such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.07. The
Company or any Wholly Owned Subsidiary incorporated or organized within the
United States of America may act as Paying Agent, Registrar, co-registrar or
transfer agent.

                  The Company initially appoints the Trustee as Registrar and
Paying Agent in connection with the Securities.

                  SECTION 2.04. Paying Agent To Hold Money in Trust. On or prior
to each due date of the principal of and interest on any Security, the Company
shall deposit with the Paying Agent a sum sufficient to pay such principal and
interest when so becoming due. The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that the Paying Agent shall hold in
trust for the benefit of Securityholders or the Trustee all money held by the
Paying Agent for the payment of principal of or interest on the Securities and
shall notify the Trustee of any default by the Company in making any such
payment. If the Company or a Subsidiary acts as Paying Agent, it shall segregate
the money held by it as Paying Agent and hold it as a separate trust fund. The
Company at any time may require a Paying Agent to pay all money held by it to
the Trustee and to account for any funds disbursed by the Paying Agent. Upon
complying with this Section 2.04, the Paying Agent shall have no further
liability for the money delivered to the Trustee.

                  SECTION 2.05. Securityholder Lists. The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of Securityholders. If the Trustee is not the
Registrar, the Company shall furnish to the Trustee, in writing at least five
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Securityholders.

<PAGE>
                                                                              36

                  SECTION 2.06. Transfer and Exchange. The Securities shall be
issued in registered form and shall be transferable only upon the surrender of a
Security for registration of transfer. When a Security is presented to the
Registrar or a co-registrar with a request to register a transfer, the Registrar
shall register the transfer as requested if the requirements of this Indenture
and Section 8-401(1) of the Uniform Commercial Code are met. When Securities are
presented to the Registrar or a co-registrar with a request to exchange them for
an equal principal amount of Securities of other denominations, the Registrar
shall make the exchange as requested if the same requirements are met.

                  SECTION 2.07. Replacement Securities. If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies
any other reasonable requirements of the Trustee. If required by the Trustee or
the Company, such Holder shall furnish an indemnity bond sufficient in the
judgment of the Company and the Trustee to protect the Company, the Trustee, the
Paying Agent, the Registrar and any co-registrar from any loss which any of them
may suffer if a Security is replaced. The Company and the Trustee may charge the
Holder for their expenses in replacing a Security.

                  Every replacement Security is an additional obligation of the
Company.

                  SECTION 2.08. Outstanding Securities. Securities outstanding
at any time are all Securities authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation and those described in
this Section 2.08 as not outstanding. A Security does not cease to be
outstanding because the Company or an Affiliate of the Company holds the
Security.

                  If a Security is replaced pursuant to Section 2.07, it ceases
to be outstanding unless the Trustee and the Company receive proof satisfactory
to them that the replaced Security is held by a bona fide purchaser.

                  If the Paying Agent segregates and holds in trust, in
accordance with this Indenture, on a redemption date or maturity date money
sufficient to pay all

<PAGE>
                                                                              37

principal and interest payable on that date with respect to the Securities (or
portions thereof) to be redeemed or maturing, as the case may be, and the Paying
Agent is not prohibited from paying such money to the Securityholders on that
date pursuant to the terms of this Indenture, then on and after that date such
Securities (or portions thereof) cease to be outstanding and interest on them
ceases to accrue.

                  SECTION 2.09. Temporary Securities. Until definitive
Securities are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of definitive Securities but may have variations that the Company
considers appropriate for temporary Securities. Without unreasonable delay, the
Company shall prepare and the Trustee shall authenticate definitive Securities
and deliver them in exchange for temporary Securities.

                  SECTION 2.10. Cancellation. The Company at any time may
deliver Securities to the Trustee for cancellation. The Registrar and the Paying
Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee and no one else shall
cancel and destroy (subject to the record retention requirements of the Exchange
Act) all Securities surrendered for registration of transfer, exchange, payment
or cancellation and deliver a certificate of such destruction to the Company
unless the Company directs the Trustee to deliver canceled Securities to the
Company. The Company may not issue new Securities to replace Securities it has
redeemed, paid or delivered to the Trustee for cancellation.

                  SECTION 2.11. Defaulted Interest. If the Company defaults in a
payment of interest on the Securities, the Company shall pay defaulted interest
(plus interest on such defaulted interest to the extent lawful) in any lawful
manner. The Company may pay the defaulted interest to the persons who are
Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee and shall promptly mail to each
Securityholder a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

                  SECTION 2.12. CUSIP Numbers. The Company in issuing the
Securities may use numbers assigned by the Committee on Uniform Securities
Identification Procedures

<PAGE>
                                                                              38

("CUSIP") and corresponding International Securities Identification Numbers
("ISIN") (if then generally in use) and, if so, the Trustee shall use CUSIP
numbers in notices of redemption as a convenience to Holders; provided, however,
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Company shall
promptly notify the Trustee of any change in the CUSIP or ISIN numbers.

                  SECTION 2.13. Issuance of PIK Securities. The Company shall be
entitled to issue PIK Securities under this Indenture which shall have identical
terms as the Securities issued on the Issue Date. The Securities issued on the
Issue Date and any PIK Securities shall be treated as a single class for all
purposes under this Indenture.

                  With respect to any PIK Securities, the Company shall deliver
to the Trustee:

                  (1) no later than the record date for the relevant interest
         payment date, a written notice setting forth the extent to which such
         interest payment will be made in the form of PIK Interest; and

                  (2) no later than one Business Day prior to the relevant
         interest payment date, an order to authenticate and deliver such PIK
         Securities.

                  Any PIK Securities shall, after being executed and
authenticated pursuant to Section 2.02, be (i) delivered by the Trustee to the
Securityholders as of the relevant record date at such Securityholders'
registered address if the Securities are then held in the form of certificated
Securities or (ii) deposited with or on behalf of DTC for the benefit of the
beneficial owners of the Securities as of the relevant record date if the
Securities are held in global form.

<PAGE>
                                                                              39

                                    ARTICLE 3

                                   Redemption

                  SECTION 3.01. Notices to Trustee. If the Company elects to
redeem Securities pursuant to paragraph 5 of the Securities, it shall notify the
Trustee in writing of the redemption date, the principal amount of Securities to
be redeemed and the paragraph of the Securities pursuant to which the redemption
will occur.

                  The Company shall give each notice to the Trustee provided for
in this Section 3.01 at least 60 days before the redemption date unless the
Trustee consents to a shorter period. Such notice shall be accompanied by an
Officers' Certificate and an Opinion of Counsel from the Company to the effect
that such redemption will comply with the conditions herein.

                  SECTION 3.02. Selection of Securities To Be Redeemed. If fewer
than all the Securities are to be redeemed, the Trustee shall select the
Securities to be redeemed pro rata or by lot or by a method that complies with
applicable legal and securities exchange requirements, if any, and that the
Trustee in its sole discretion shall deem to be fair and appropriate and in
accordance with methods generally used at the time of selection by fiduciaries
in similar circumstances. The Trustee shall make the selection from outstanding
Securities not previously called for redemption. The Trustee may select for
redemption portions of the principal of Securities that have denominations
larger than $1,000. Securities and portions of them the Trustee selects shall be
in principal amounts of $1,000 or a whole multiple of $1,000. Provisions of this
Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption. The Trustee shall notify the Company
promptly of the Securities or portions of Securities to be redeemed.

                  SECTION 3.03. Notice of Redemption. At least 30 days but not
more than 60 days before a date for redemption of Securities, the Company shall
mail a notice of redemption by first-class mail to each Holder of Securities to
be redeemed at such Holder's registered address.

                  The notice shall identify the Securities to be redeemed and
shall state:

                  (1) the redemption date;

                  (2) the redemption price;

<PAGE>
                                                                              40

                  (3) the name and address of the Paying Agent;

                  (4) that Securities called for redemption must be surrendered
         to the Paying Agent to collect the redemption price;

                  (5) if fewer than all the outstanding Securities are to be
         redeemed, the identification and principal amounts of the particular
         Securities to be redeemed;

                  (6) that, unless the Company defaults in making such
         redemption payment or the Paying Agent is prohibited from making such
         payment pursuant to the terms of this Indenture, interest on Securities
         (or portion thereof) called for redemption ceases to accrue on and
         after the redemption date; and

                  (7) that no representation is made as to the correctness or
         accuracy of the CUSIP number, if any, listed in such notice or printed
         on the Securities.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense. In such event,
the Company shall provide the Trustee with the information required by this
Section 3.03.

                  SECTION 3.04. Effect of Notice of Redemption. Once notice of
redemption is mailed, Securities called for redemption become due and payable on
the redemption date and at the redemption price stated in the notice. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption
price stated in the notice, plus accrued interest to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the related interest payment date). Failure to give
notice or any defect in the notice to any Holder shall not affect the validity
of the notice to any other Holder.

                  SECTION 3.05. Deposit of Redemption Price. Prior to the
redemption date, the Company shall deposit with the Paying Agent (or, if the
Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust)
money sufficient to pay the redemption price of and accrued interest on all
Securities to be redeemed on that date other than Securities or portions of
Securities called for redemption which have been delivered by the Company to the
Trustee for cancellation.

<PAGE>
                                                                              41

                  SECTION 3.06. Securities Redeemed in Part. Upon surrender of a
Security that is redeemed in part, the Company shall execute and the Trustee
shall authenticate for the Holder (at the Company's expense) a new Security
equal in principal amount to the unredeemed portion of the Security surrendered.

                                    ARTICLE 4

                                    Covenants

                  SECTION 4.01. Payment of Securities. The Company shall
promptly pay the principal of and interest on the Securities on the dates and in
the manner provided in the Securities and in this Indenture. Principal and
interest shall be considered paid on the date due if on such date the Trustee or
the Paying Agent holds in accordance with this Indenture money sufficient to pay
all principal and interest then due and the Trustee or the Paying Agent, as the
case may be, is not prohibited from paying such money to the Securityholders on
that date pursuant to the terms of this Indenture.

                  The Company shall pay interest on overdue principal at the
rate specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

                  SECTION 4.02. SEC Reports.

                  (a) Notwithstanding that the Company may not be subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company
shall file with the SEC (to the extent the SEC will accept such filings) and
provide the Trustee and Securityholders with such annual reports and such
information, documents and other reports as are specified in Sections 13 and
15(d) of the Exchange Act and applicable to a U.S. corporation subject to such
Sections, such information, documents and other reports to be so filed and
provided at the times specified for the filing of such information, documents
and reports under such Sections.

                  (b) At any time that any of the Company's Subsidiaries are
Unrestricted Subsidiaries, then the quarterly and annual financial information
required by Section 4.02(a) shall include a reasonably detailed presentation,
either on the face of the financial

<PAGE>
                                                                              42

statements or in the footnotes thereto, and in "Management's Discussion and
Analysis of Financial Condition and Results of Operations," of the financial
condition and results of operations of the Company and its Restricted
Subsidiaries separate from the financial condition and results of operations of
the Unrestricted Subsidiaries of the Company.

                  (c) The Company shall furnish to the Holder of the Securities
and to prospective investors, upon the requests of such Holders, any information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so
long any Securities are not freely transferable under the Securities Act.

                  (d) The Company shall comply with the other provisions of TIA
Section 314(a).

                  SECTION 4.03. Limitation on Indebtedness.

                  (a) The Company shall not Incur, directly or indirectly, any
Indebtedness, other than:

                  (1) the Securities and PIK Securities in accordance with the
         terms of this Indenture;

                  (2) the Guarantee by the Company of Indebtedness Incurred
         pursuant to the Credit Agreement;

                  (3) the Guarantee by the Company of obligations of Brand
         Services with respect to the 2012 Securities and any Refinancing
         Indebtedness thereof;

                  (4) Refinancing Indebtedness in respect of Indebtedness
         Incurred pursuant to clause (1);

                  (5) Indebtedness of the Company owed to and held by Brand
         Services or any Restricted Subsidiary or Indebtedness of Brand Services
         or a Restricted Subsidiary owed to and held by the Company; provided,
         however, that (A) any subsequent issuance or transfer of any Capital
         Stock or any other event that results in any such Restricted Subsidiary
         ceasing to be a Restricted Subsidiary or Brand Services ceasing to be a
         wholly-owned subsidiary of the Company, or any subsequent transfer of
         any such Indebtedness (except to the Company or a Restricted
         Subsidiary) shall be deemed, in each case, to constitute the Incurrence
         of such Indebtedness by the obligor thereon and (B) such Indebtedness
         is expressly subordinated to the prior payment in full in cash of all
         obligations with respect to the Securities;

<PAGE>
                                                                              43

                  (6) Indebtedness arising from agreements of the Company
         providing for indemnification, adjustment of purchase price or similar
         obligations, in each case, incurred in connection with the disposition
         of any business, assets or Subsidiary of the Company, other than
         Guarantees of Indebtedness Incurred by any Person acquiring all or any
         portion of such business, assets or Subsidiary; provided, however, that
         the maximum aggregate liability in respect of all such Indebtedness
         shall at no time exceed the gross proceeds actually received by the
         Company in connection with such disposition.

                  (b) The Company shall not permit Brand Services or any
Restricted Subsidiary to Incur, directly or indirectly, any Indebtedness;
provided, however, that Brand Services and the Subsidiary Guarantors shall be
entitled to Incur Indebtedness if, on the date of such Incurrence and after
giving effect thereto on a pro forma basis, no Default has occurred and is
continuing and the Consolidated Coverage Ratio exceeds 2.0 to 1.

                  (c) Notwithstanding Section 4.03(b), Brand Services and the
Restricted Subsidiaries shall be entitled to Incur any or all of the following
Indebtedness:

                  (1) Indebtedness Incurred by Brand Services and its Subsidiary
         Guarantors pursuant to the Credit Agreement; provided, however, that,
         immediately after giving effect to any such Incurrence, the aggregate
         principal amount of all Indebtedness Incurred under this Section
         4.03(c)(1) and then outstanding does not exceed $240.0 million less the
         sum of all principal payments with respect to such Indebtedness
         pursuant to Section 4.06(a)(3)(A);

                  (2) Indebtedness of Brand Services owed to and held by any
         Restricted Subsidiary or Indebtedness of a Restricted Subsidiary owed
         to and held by Brand Services or any Restricted Subsidiary; provided,
         however, that (A) any subsequent issuance or transfer of any Capital
         Stock or any other event that results in any such Restricted Subsidiary
         ceasing to be a Restricted Subsidiary or any subsequent transfer of
         such Indebtedness (except to Brand Services or a Restricted Subsidiary)
         shall be deemed, in each case, to constitute the Incurrence

<PAGE>
                                                                              44

         of such Indebtedness by the obligor thereon, (B) if Brand Services is
         the obligor on such Indebtedness, such Indebtedness is expressly
         subordinated to the prior payment in full in cash of all obligations
         with respect to the Securities and (C) if a Subsidiary Guarantor is the
         obligor on such Indebtedness and such Indebtedness is owed to and held
         by a Restricted Subsidiary that is not a Subsidiary Guarantor, such
         Indebtedness is expressly subordinated to the prior payment in full in
         cash of all obligations of such obligor with respect to its Subsidiary
         Guaranty;

                  (3) the 2012 Securities issued on the Issue Date and any notes
         issued in exchange therefor pursuant to the Registration Rights
         Agreement;

                  (4) Indebtedness outstanding on the Issue Date (other than
         Indebtedness described in clause (1), (2) or (3) of this Section
         4.03(c));

                  (5) Indebtedness of a Restricted Subsidiary Incurred and
         outstanding on or prior to the date on which such Subsidiary was
         acquired by Brand Services (other than Indebtedness Incurred in
         connection with, or to provide all or any portion of the funds or
         credit support utilized to consummate, the transaction or series of
         related transactions pursuant to which such Subsidiary became a
         Subsidiary or was acquired by Brand Services); provided, however, that
         on the date of such acquisition and after giving effect thereto on a
         pro forma basis, no Default has occurred and is continuing and the
         Consolidated Coverage Ratio exceeds 2.0 to 1;

                  (6) Refinancing Indebtedness in respect of Indebtedness
         Incurred pursuant to Section 4.03(b) or pursuant to clause (3), (4) or
         (5) of this Section 4.03(c) or this clause (6); provided, however, that
         to the extent such Refinancing Indebtedness directly or indirectly
         Refinances Indebtedness of a Subsidiary Incurred pursuant to clause
         (5), such Refinancing Indebtedness shall be Incurred only by such
         Subsidiary;

                  (7) Hedging Obligations consisting of Interest Rate Agreements
         directly related to Indebtedness permitted to be Incurred by Brand
         Services and its Restricted Subsidiaries pursuant to this Indenture;

<PAGE>
                                                                              45

                  (8) Capital Lease Obligations and Purchase Money Indebtedness
         which, when taken together with all other Capital Lease Obligations
         Incurred pursuant to this clause (8) outstanding on the date of such
         Incurrence (including Refinancings thereof that do not result in an
         increase in the aggregate principal amount of Indebtedness of such
         Person as of the date of such proposed Refinancing (plus the amount of
         any premium required to be paid under the terms of the instrument
         governing such Indebtedness and plus the amount of reasonable expenses
         incurred by Brand Services in connection with such Refinancing)), do
         not exceed $15.0 million;

                  (9) obligations in respect of performance, bid and surety
         bonds and completion guarantees provided by Brand Services or any
         Restricted Subsidiary in the ordinary course of business;

                  (10) Indebtedness arising from the honoring by a bank or other
         financial institution of a check, draft or similar instrument drawn
         against insufficient funds in the ordinary course of business;
         provided, however, that such Indebtedness is extinguished within five
         Business Days of its Incurrence;

                  (11) Indebtedness consisting of the Subsidiary Guaranty of a
         Subsidiary Guarantor and any Guarantee by a Subsidiary Guarantor of
         Indebtedness Incurred pursuant to Section 4.03(b) or pursuant to clause
         (1), (2), (3) or (4) of this Section 4.03(c) or pursuant to clause (6)
         of this Section 4.03(c) to the extent the Refinancing Indebtedness
         Incurred thereunder directly or indirectly Refinances Indebtedness
         Incurred pursuant to Section 4.03(b) or pursuant to clause (3) or (4)
         of this Section 4.03(c);

                  (12) Indebtedness Incurred for working capital purposes by
         Foreign Subsidiaries which, when taken together with all other
         Indebtedness Incurred pursuant to this clause (12), does not exceed
         $15.0 million;

                  (13) Indebtedness arising from agreements of Brand Services or
         a Restricted Subsidiary providing for indemnification, adjustment of
         purchase price or similar obligations, in each case, incurred in
         connection with the disposition of any business, assets or Subsidiary,
         other than Guarantees of

<PAGE>
                                                                              46

         Indebtedness Incurred by any Person acquiring all or any portion of
         such business, assets or Subsidiary; provided, however, that the
         maximum aggregate liability in respect of all such Indebtedness shall
         at no time exceed the gross proceeds actually received by Brand
         Services or the Restricted Subsidiary in connection with such
         disposition;

                  (14) Indebtedness under Currency Agreements entered into to
         hedge business transactions entered into in the ordinary course of
         business of Brand Services and the Restricted Subsidiaries that relate
         to Indebtedness of Brand Services and its Subsidiary Guarantors;
         provided, however, that in the case of Currency Agreements that relate
         to Indebtedness of Brand Services or its Subsidiary Guarantors, such
         Currency Agreements do not increase the Indebtedness of Brand Services
         and its Restricted Subsidiaries outstanding other than as a result of
         fluctuations in foreign currency exchange rates or by reason of fees,
         indemnities and compensation payable thereunder; and

                  (15) Indebtedness of Brand Services or of any of its
         Subsidiary Guarantors in an aggregate principal amount which, when
         taken together with all other Indebtedness of Brand Services and its
         Restricted Subsidiaries outstanding on the date of such Incurrence
         Incurred pursuant to this clause (15) (other than Indebtedness
         permitted by clauses (1) through (14) above or Section 4.03(b)) does
         not exceed $25.0 million.

                  (d) Notwithstanding the foregoing, neither Brand Services nor
any Subsidiary Guarantor shall Incur any Indebtedness pursuant to Section
4.03(c) if the proceeds thereof are used, directly or indirectly, to Refinance
any Subordinated Obligations of Brand Services or any Subsidiary Guarantor
unless such Indebtedness shall be subordinated to the 2012 Securities or the
applicable Subsidiary Guaranty to at least the same extent as such Subordinated
Obligations.

                  (e) For purposes of determining compliance with this Section
4.03:

                  (1) any Indebtedness remaining outstanding under the Credit
         Agreement after the application of the net proceeds from the sale of
         the Securities shall be treated as Incurred on the Issue Date under
         Section 4.03(c)(1) above;

<PAGE>
                                                                              47

                  (2) in the event that an item of Indebtedness (or any portion
         thereof) meets the criteria of more than one of the types of
         Indebtedness described herein, the Company, in its sole discretion,
         shall classify such item of Indebtedness (or any portion thereof) at
         the time of Incurrence and shall only be required to include the amount
         and type of such Indebtedness in one of the above clauses;

                  (3) the Company shall be entitled at the time of Incurrence to
         divide and classify an item of Indebtedness in more than one of the
         types of Indebtedness described herein; and

                  (4) following the date of its Incurrence, any Indebtedness
         originally classified as Incurred pursuant to one of the clauses in
         Section 4.03(c) may later be reclassified by the Company such that it
         will be deemed as having been Incurred pursuant to Section 4.03(b) or
         another clause in Section 4.03(c) above, as applicable, to the extent
         that such reclassified Indebtedness could be Incurred pursuant to such
         new paragraph or clause at the time of such reclassification.

                  (f) Notwithstanding clauses (a),(b) or (c) of this Section
4.03, none of the Company, Brand Services and any Subsidiary Guarantor shall
Incur (1) any Indebtedness if such Indebtedness is subordinate or junior in
ranking in any respect to any Senior Indebtedness of such Person, as applicable,
unless such Indebtedness is Senior Subordinated Indebtedness or is expressly
subordinated in right of payment to Senior Subordinated Indebtedness of such
Person or (2) any Secured Indebtedness that is not Senior Indebtedness of such
Person unless contemporaneously therewith such Person makes effective provision
to secure the Securities, the 2012 Securities or the Parent Guaranty or relevant
Subsidiary Guaranty, as applicable, equally and ratably with (or on a senior
basis to, in the case of Indebtedness subordinated in right of payment to the
Securities, the 2012 Securities or the Parent Guaranty or relevant Subsidiary
Guaranty, as applicable) such Secured Indebtedness for so long as such Secured
Indebtedness is secured by a Lien.

                  SECTION 4.04. Limitation on Restricted Payments.

<PAGE>
                                                                              48

                  (a) The Company shall not, directly or indirectly, make a
Restricted Payment (1) if, at the time that the Company makes such Restricted
Payment, a Default has occurred and is continuing (or would result therefrom) or
(ii) if the amount of such Restricted Payment (or any portion thereof) is
attributable to Restricted Payments made by Brand Services or a Restricted
Subsidiary to the Company pursuant to Section 4.04(a) of the Brand Indenture,
except to the extent that such Restricted Payment (or such portion) does not
exceed that amount that could have been paid to the Company as a Restricted
Payment pursuant to Section 4.04(a) of the Brand Indenture if, in the Brand
Indenture, Consolidated Interest Expense were deemed to also include on a pro
forma basis for such period the Consolidated Interest Expense of the Company
(net of any related reductions in income tax expense) for such period. In
addition, during the period commencing with the fifth anniversary of the Issue
Date, the Company shall not, directly or indirectly, make a Restricted Payment
except to the extent that, after giving effect to such Restricted Payment, it
has cash on hand that is sufficient to pay in cash all interest that will be due
to and payable on the Securities on the interest payment date next following the
date of such Restricted Payment; provided, however, that the Company may make
the Restricted Payments set forth below:

                  (1) dividends to Brand Holdings to be used by Brand Holdings
         solely to pay its fees required to maintain its corporate existence and
         to pay for general corporate and overhead expenses (including salaries
         and other compensation of the employees) incurred by Brand Holdings in
         the ordinary course of its business; provided, however, that such
         dividends shall not exceed $0.5 million in any calendar year;

                  (2) dividends to Brand Holdings to the extent used by Brand
         Holdings solely to pay to applicable tax authorities in cash tax
         obligations incurred by Brand Holdings in the ordinary course of
         business; and

                  (3) the repurchase or other acquisition of, or payments to any
         parent of the Company to permit such parent to repurchase or otherwise
         acquire, shares of Capital Stock of a parent of the Company, the
         Company or any of its Subsidiaries from employees, former employees,
         directors or former directors of a parent of the Company, the Company
         or any of its Subsidiaries (or permitted transferees of such

<PAGE>
                                                                              49

         employees, former employees, directors or former directors), pursuant
         to the terms of the agreements (including employment agreements) or
         plans (or amendments thereto) approved by the Board of Directors of the
         Company under which such individuals purchase or sell, or are granted
         the option to purchase or sell, shares of such Capital Stock; provided,
         however, that the aggregate amount of such repurchases and other
         acquisition shall not exceed $2.5 million in any fiscal year; provided
         further, however, that the aggregate amount of Restricted Payments
         permitted (but not made) pursuant to this Section 4.04(a)(3) in prior
         fiscal years may be carried forward to each succeeding fiscal year,
         with up to a maximum amount of $7.0 million over the term of the
         Securities.

                  (b) During the period commencing with the fifth anniversary of
the Issue Date, the Company shall cause Brand Services and its Subsidiaries to
make Restricted Payments in amounts sufficient to satisfy the Company's
obligation, if any, to pay cash interest on the Securities on each interest
payment date; provided, however, that the making of such interest payment, and
the making of such Restricted Payment, in each case would not constitute a
default under the Credit Agreement or the Brand Indenture or, if applicable, any
Refinancing Indebtedness in respect thereof.

                  (c) The Company shall not permit Brand Services or any
Restricted Subsidiary, directly or indirectly, to make a Restricted Payment if
at the time the Company or such Restricted Subsidiary makes such Restricted
Payment:

                  (1) a Default shall have occurred and be continuing (or would
         result therefrom);

                  (2) Brand Services is not entitled to Incur an additional
         $1.00 of Indebtedness under Section 4.03(b); or

                  (3) the aggregate amount of such Restricted Payment and all
         other Restricted Payments since the Issue Date would exceed the sum of
         (without duplication):

                           (A) 50% of the Consolidated Net Income accrued during
                  the period (treated as one accounting period) from the
                  beginning of the fiscal quarter immediately following the
                  fiscal quarter during which the Issue Date occurs to

<PAGE>
                                                                              50

                  the end of the most recent fiscal quarter prior to the date of
                  such Restricted Payment for which financial statements have
                  been made publicly available (or, in case such Consolidated
                  Net Income shall be a deficit, minus 100% of such deficit;
                  plus

                           (B) 100% of the aggregate Net Cash Proceeds and Fair
                  Market Value of property or assets (other than Indebtedness
                  and Capital Stock, except that Capital Stock of a Person that
                  is or becomes a Restricted Subsidiary shall be valued in
                  accordance with Brand Services' interest in the Fair Market
                  Value of such Person's property and assets, exclusive of
                  goodwill or any similar intangible asset) received by Brand
                  Services from the issuance or sale of its Capital Stock (other
                  than Disqualified Stock) subsequent to the Issue Date (other
                  than (i) an issuance or sale to a Subsidiary of Brand
                  Services, (ii) an issuance or sale to an employee stock
                  ownership plan or to a trust established by Brand Services or
                  any of its Subsidiaries for the benefit of their employees
                  with respect to amounts funded or Guaranteed by the Company,
                  Brand Services or any of their Subsidiaries and (iii) in
                  exchange for the proceeds of loans or advances made pursuant
                  to clause (6) under the definition of "Permitted Investment")
                  and 100% of any cash contribution received by Brand Services
                  from its shareholders subsequent to the Issue Date; plus

                           (C) the amount by which Indebtedness of Brand
                  Services is reduced on Brand Services' balance sheet upon the
                  conversion or exchange (other than by a Subsidiary of Brand
                  Services) subsequent to the Issue Date of any Indebtedness of
                  Brand Services convertible or exchangeable for Capital Stock
                  (other than Disqualified Stock) of Brand Services (less the
                  amount of any cash, or the fair value of any other property,
                  distributed by Brand Services upon such conversion or
                  exchange); provided, however, that the foregoing amount shall
                  not exceed the Net Cash Proceeds received by Brand Services or
                  any Restricted Subsidiary from the sale of such Indebtedness
                  (excluding Net Cash Proceeds from sales to a Subsidiary of
                  Brand Services or to an employee stock ownership plan or to a
                  trust established by Brand Services or any of its Subsidiaries
                  for the benefit of their employees

<PAGE>
                                                                              51

                  with respect to amounts funded or Guaranteed by the Company,
                  Brand Services or any of their Subsidiaries); plus

                           (D) an amount equal to the sum of (x) the net
                  reduction in the Investments (other than Permitted
                  Investments) made by Brand Services or any Restricted
                  Subsidiary in any Person resulting from repurchases,
                  repayments or redemptions of such Investments by such Person,
                  proceeds realized on the sale of such Investment and proceeds
                  representing the return of capital (excluding dividends and
                  distributions), in each case received by Brand Services or any
                  Restricted Subsidiary, and (y) to the extent such Person is an
                  Unrestricted Subsidiary, the portion (proportionate to Brand
                  Services' equity interest in such Subsidiary) of the fair
                  market value of the net assets of such Unrestricted Subsidiary
                  at the time such Unrestricted Subsidiary is designated a
                  Restricted Subsidiary; provided, however, that the foregoing
                  sum shall not exceed, in the case of any such Person or
                  Unrestricted Subsidiary, the amount of Investments (excluding
                  Permitted Investments) previously made (and treated as a
                  Restricted Payment) by Brand Services or any Restricted
                  Subsidiary in such Person or Unrestricted Subsidiary.

                  (d) The provisions of Section 4.04(b) shall not prohibit:

                  (1) any Restricted Payment made out of the Net Cash Proceeds
         of the substantially concurrent sale of, or made by exchange for,
         Capital Stock of Brand Services (other than Disqualified Stock and
         other than Capital Stock issued or sold to a Subsidiary of Brand
         Services or an employee stock ownership plan or to a trust established
         by Brand Services or any of its Subsidiaries for the benefit of their
         employees with respect to amounts funded or Guaranteed by the Company,
         Brand Services or any of their Subsidiaries) or a substantially
         concurrent capital contribution received by Brand Services from its
         shareholders; provided, however, that (A) such Restricted Payment shall
         be excluded in the calculation of the amount of Restricted Payments and
         (B) the Net Cash Proceeds from such sale or such capital contribution
         (to the extent so used for such

<PAGE>
                                                                              52

         Restricted Payment) shall be excluded from the calculation of amounts
         under Section 4.04(c)(3)(B);

                  (2) any purchase, repurchase, redemption, defeasance or other
         acquisition or retirement for value of Subordinated Obligations of
         Brand Services or any Subsidiary Guarantor made by exchange for, or out
         of the proceeds of the substantially concurrent sale of, Subordinated
         Obligations of such Person which is permitted to be Incurred pursuant
         to Section 4.03; provided, however, that such purchase, repurchase,
         redemption, defeasance or other acquisition or retirement for value
         shall be excluded in the calculation of the amount of Restricted
         Payments;

                  (3) dividends paid within 60 days after the date of
         declaration thereof if at such date of declaration such dividend would
         have complied with this Section 4.04; provided, however, that at the
         time of payment of such dividend, no other Default shall have occurred
         and be continuing (or result therefrom); provided further, however,
         that such dividend shall be included in the calculation of the amount
         of Restricted Payments;

                  (4) so long as no Default has occurred and is continuing, the
         repurchase or other acquisition of, or payments to any parent of Brand
         Services to permit such parent to repurchase or otherwise acquire,
         shares of Capital Stock of a parent of Brand Services, Brand Services
         or any of its Subsidiaries from employees, former employees, directors
         or former directors of a parent of Brand Services, Brand Services or
         any of its Subsidiaries (or permitted transferees of such employees,
         former employees, directors or former directors), pursuant to the terms
         of the agreements (including employment agreements) or plans (or
         amendments thereto) approved by the Board of Directors of Brand
         Services under which such individuals purchase or sell or are granted
         the option to purchase or sell, shares of such Capital Stock; provided,
         however, that the aggregate amount of such repurchases and other
         acquisition shall not exceed $2.5 million in any fiscal year; provided
         further, however, that the aggregate amount of Restricted Payments
         permitted (but not made) pursuant to this Section 4.04(d)(4) in prior
         fiscal years may be carried forward to each succeeding fiscal year,
         with up to a maximum amount of $7.0 million over the term of the
         Securities;

<PAGE>
                                                                              53

         provided still further, however, that such repurchases and other
         acquisitions shall be included in the calculation of the amount of
         Restricted Payments;

                  (5) dividends to the Company to be used by the Company solely
         to pay its fees required to maintain its corporate existence and to pay
         for general corporate and overhead expenses (including overhead
         expenses of Brand Holdings and salaries and other compensation of the
         employees) incurred by the Company in the ordinary course of its
         business; provided, however, that such dividends shall not exceed $0.5
         million in any calendar year; provided further, however, that such
         dividends shall be excluded in the calculation of the amount of
         Restricted Payments;

                  (6) dividends to the Company to the extent used by the Company
         solely to pay to applicable tax authorities in cash tax obligations
         incurred by the Company in the ordinary course of business; provided,
         however, that such calculations shall be excluded in the calculation of
         the amount of Restricted Payments;

                  (7) payments of dividends on Disqualified Stock issued in
         accordance with Section 4.03; provided, however, that such dividends
         shall be excluded in the calculation of the amount of Restricted
         Payments;

                  (8) Restricted Payments made with Net Available Cash from
         Asset Dispositions remaining after application thereof as required by
         Section 4.06; provided, however, that such Restricted Payments shall be
         included in the calculation of the amount of Restricted Payments;

                  (9) repurchases of Capital Stock deemed to occur upon exercise
         of stock options if such Capital Stock represents a portion of the
         exercise price of such options; provided, however, that such Restricted
         Payments shall be excluded in the calculation of the amount of
         Restricted Payments;

                  (10) payments and distributions made to consummate the
         Transactions; provided, however, that such Restricted Payments shall be
         excluded in the calculation of the amount of Restricted Payments; and

<PAGE>
                                                                              54

                  (11) Restricted Payments in an amount which, when taken
         together with all Restricted Payments made pursuant to this Section
         4.04(d)(11), does not exceed $10.0 million; provided, however, that (A)
         at the time of each such Restricted Payment, no Default shall have
         occurred and be continuing (or result therefrom) and (B) such dividends
         shall be included in the calculation of the amount of Restricted
         Payments.

                  SECTION 4.05. Limitation on Restrictions on Distributions from
Restricted Subsidiaries. The Company shall not, and shall not permit Brand
Services or any Restricted Subsidiary to, create or otherwise cause or permit to
exist or become effective any consensual encumbrance or restriction on the
ability of Brand Services or any Restricted Subsidiary to (a) pay dividends or
make any other distributions on its Capital Stock or pay any Indebtedness or
other obligations owed to the Company, (b) make any loans or advances to the
Company or (c) transfer any of its property or assets to the Company, except:

                  (1) with respect to clauses (a), (b) and (c),

                           (A) any encumbrance or restriction pursuant to an
                  agreement (including the Credit Agreement as in effect on the
                  Issue Date and the Brand Indenture) in effect at or entered
                  into on the Issue Date;

                           (B) any encumbrance or restriction with respect to a
                  Restricted Subsidiary pursuant to an agreement existing on or
                  prior to the date on which such Restricted Subsidiary was
                  acquired by Brand Services (other than Indebtedness Incurred
                  as consideration in, or to provide all or any portion of the
                  funds or credit support utilized to consummate, the
                  transaction or series of related transactions pursuant to
                  which such Restricted Subsidiary became a Restricted
                  Subsidiary or was acquired by Brand Services) and outstanding
                  on such date;

                           (C) any encumbrance or restriction pursuant to an
                  agreement effecting a Refinancing of Indebtedness Incurred
                  pursuant to an agreement referred to in Section 4.05(1)(A) or
                  4.05(1)(B) or this Section 4.05(1)(C) or contained in any
                  amendment to an agreement referred to in Section

<PAGE>
                                                                              55

                  4.05(1)(A) or 4.05(1)(B) or this Section 4.05(1)(C); provided,
                  however, that the encumbrances and restrictions with respect
                  to Brand Services or such Restricted Subsidiary contained in
                  any such refinancing agreement or amendment are no less
                  favorable to the Securityholders than encumbrances and
                  restrictions with respect to Brand Services or such Restricted
                  Subsidiary contained in such predecessor agreements;

                           (D) any encumbrance or restriction with respect to a
                  Restricted Subsidiary imposed pursuant to an agreement entered
                  into for the sale or disposition of all or substantially all
                  the Capital Stock or assets of such Restricted Subsidiary
                  pending the closing of such sale or disposition; and

                           (E) any encumbrance or restriction pursuant to
                  applicable law; and

                  (2) with respect to clause (c) only,

                           (A) any encumbrance or restriction consisting of
                  customary nonassignment provisions in leases governing
                  leasehold interests to the extent such provisions restrict the
                  transfer of the lease or the property leased thereunder; and

                           (B) any encumbrance or restriction contained in
                  security agreements or mortgages securing Indebtedness of
                  Brand Services or a Restricted Subsidiary to the extent such
                  encumbrance or restriction restricts the transfer of the
                  property subject to such security agreements or mortgages.

                  SECTION 4.06. Limitation on Sales of Assets and Subsidiary
Stock.

                  (a) The Company shall not permit Brand Services or any
Restricted Subsidiary to, directly or indirectly, consummate any Asset
Disposition unless (1) Brand Services or such Restricted Subsidiary receives
consideration at the time of such Asset Disposition at least equal to the fair
market value (including as to the value of all non-cash consideration), as
determined in good faith by the Board of Directors of Brand Services, of the
shares and assets subject to such Asset Disposition; (2) at least 75% of the
consideration

<PAGE>
                                                                              56

thereof received by Brand Services or such Restricted Subsidiary is in the form
of cash or cash equivalents; and (3) an amount equal to 100% of the Net
Available Cash from such Asset Disposition is applied by Brand Services (or such
Restricted Subsidiary, as the case may be) (A) first, to the extent Brand
Services elects (or is required by the terms of any Indebtedness), to prepay,
repay, redeem or purchase Senior Indebtedness of Brand Services or Indebtedness
(other than any Preferred Stock or Disqualified Stock) of a Wholly Owned
Subsidiary (in each case other than Indebtedness owed to Brand Services or an
Affiliate of Brand Services) within one year from the later of the date of such
Asset Disposition or the receipt of such Net Available Cash; (B) second, to the
extent of the balance of such Net Available Cash after application in accordance
with clause (A), to the extent Brand Services elects, to acquire Additional
Assets within one year from the later of the date of such Asset Disposition or
the receipt of such Net Available Cash; and (C) third, to the extent of the
balance of such Net Available Cash after application in accordance with clauses
(A) and (B), to make an offer to the holders of the 2012 Securities (and to
holders of other Senior Subordinated Indebtedness of Brand Services designated
by Brand Services) to purchase 2012 Securities (and such other Senior
Subordinated Indebtedness of Brand Services) pursuant to and subject to the
conditions of Section 4.06(b); provided, however, that in connection with any
prepayment, repayment or purchase of Indebtedness pursuant to clause (A) or (C)
above, Brand Services or such Restricted Subsidiary shall permanently retire
such Indebtedness and shall cause the related loan commitment (if any) to be
permanently reduced in an amount equal to the principal amount so prepaid,
repaid or purchased. Notwithstanding the foregoing provisions of this Section
4.06, Brand Services and the Restricted Subsidiaries shall not be required to
apply any Net Available Cash in accordance with this Section 4.06(a) except to
the extent that the aggregate Net Available Cash from all Asset Dispositions
which is not applied in accordance with this Section 4.06(a) exceeds $5.0
million. Pending application of Net Available Cash pursuant to this Section
4.06(a), such Net Available Cash shall be invested in Temporary Cash Investments
or applied to temporarily reduce revolving credit indebtedness.

                  For the purposes of this Section 4.06(a), the following are
deemed to be cash or cash equivalents: (1) the assumption of Indebtedness of
Brand Services (other than obligations in respect of Disqualified Stock of Brand
Services) or any Restricted Subsidiary (other

<PAGE>
                                                                              57

than obligations in respect of Disqualified Stock and Preferred Stock of a
Subsidiary Guarantor) and the release of Brand Services or such Restricted
Subsidiary from all liability on such Indebtedness in connection with such Asset
Disposition and (2) securities received by Brand Services or any Restricted
Subsidiary from the transferee that are promptly converted by Brand Services or
such Restricted Subsidiary into cash, to the extent of the cash received in that
conversion.

                  (b) In the event of an Asset Disposition that requires the
purchase of 2012 Securities (and other Senior Subordinated Indebtedness of Brand
Services) pursuant to Section 4.06(a)(3)(C), Brand Services shall purchase 2012
Securities tendered pursuant to an offer by Brand Services for the 2012
Securities (and such other Senior Subordinated Indebtedness of Brand Services)
(the "Offer") at a purchase price of 100% of their principal amount (or, in the
event such other Senior Subordinated Indebtedness of Brand Services was issued
with significant original issue discount, 100% of the accreted value thereof)
without premium, plus accrued but unpaid interest (or, in respect of such other
Senior Subordinated Indebtedness of Brand Services, such lesser price, if any,
as may be provided for by the terms of such Senior Subordinated Indebtedness) in
accordance with the procedures (including prorating in the event of
oversubscription) set forth in Section 4.06(c). If the aggregate purchase price
of Securities (and any other Senior Subordinated Indebtedness) tendered pursuant
to the Offer exceeds the Net Available Cash allotted to their purchase, Brand
Services shall select the Securities and other Senior Subordinated Indebtedness
to be purchased on a pro rata basis but in round denominations, which in the
case of the 2012 Securities will be denominations of $1,000 principal amount or
multiples thereof. The Company shall not be required to cause Brand Services to
make an offer to purchase 2012 Securities (and other Senior Subordinated
Indebtedness of Brand Services) pursuant to this Section 4.06 if the Net
Available Cash available therefor is less than $5.0 million (which lesser amount
shall be carried forward for purposes of determining whether such an Offer is
required with respect to the Net Available Cash from any subsequent Asset
Disposition). Upon completion of such an offer to purchase, Net Available Cash
shall be deemed to be reduced by the aggregate amount of such offer.

                  (c) The Company shall cause Brand Services to comply, to the
extent applicable, with the requirements of Section 14(e) of the Exchange Act
and any other

<PAGE>
                                                                              58

securities laws or regulations in connection with the repurchase of Securities
pursuant to this Section 4.06. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section 4.06,
the Company shall cause Brand Services to comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations
under this Section 4.06 by virtue of Brand Services' compliance with such
securities laws or regulations.

                  SECTION 4.07. Limitation on Affiliate Transactions.

                  (a) The Company shall not, and shall not permit Brand Services
or any Restricted Subsidiary to, enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property, employee
compensation arrangements or the rendering of any service) with, or for the
benefit of, any Affiliate of the Company or Brand Services (an "Affiliate
Transaction") unless (1) the terms of the Affiliate Transaction are no less
favorable to the Company, Brand Services or such Restricted Subsidiary than
those that could be obtained at the time of the Affiliate Transaction in
arm's-length dealings with a Person who is not an Affiliate; (2) if such
Affiliate Transaction involves an amount in excess of $3.0 million, the terms of
the Affiliate Transaction are set forth in writing and a majority of the
non-employee directors of the Company or Brand Services, as applicable,
disinterested with respect to such Affiliate Transaction have determined in good
faith that the criteria set forth in clause (1) are satisfied and have approved
the relevant Affiliate Transaction as evidenced by a resolution of such Board of
Directors; and (3) if such Affiliate Transaction involves an amount in excess of
$10.0 million, the Board of Directors of the Company or Brand Services, as
applicable, shall also have received a written opinion from an Independent
Qualified Party to the effect that such Affiliate Transaction is fair, from a
financial standpoint, to the Company or Brand Services and its Restricted
Subsidiaries, as applicable, or is not less favorable to the Company or Brand
Services and its Restricted Subsidiaries than could reasonably be expected to be
obtained at the time in an arm's-length transaction with a Person who was not an
Affiliate.

                  (b) The provisions of Section 4.07(a) shall not prohibit (1)
any Investment (other than a Permitted Investment) or other Restricted Payment,
in each case permitted to be made pursuant to Section 4.04; (2) any

<PAGE>
                                                                              59

issuance of securities by the Company, Brand Services or its Restricted
Subsidiaries, or other payments, awards or grants in cash, securities or
otherwise pursuant to, or the funding of, employment arrangements, stock options
and stock ownership plans approved by the Board of Directors of the Company or
Brand Services, as applicable, (3) loans or advances to employees by the
Company, Brand Services or its Restricted Subsidiaries, in the ordinary course
of business in accordance with the past practices of the Company, Brand Services
or its Restricted Subsidiaries, as applicable, but in any event not to exceed
$3.0 million in the aggregate outstanding at any one time; (4) the payment by
the Company, Brand Services or its Restricted Subsidiaries of reasonable fees to
directors of the Company, Brand Services and its Restricted Subsidiaries, as
applicable, who are not employees of the Company, Brand Services or its
Restricted Subsidiaries; (5) any transaction of the Company or Brand Services
with a Restricted Subsidiary or joint venture or similar entity which would
constitute an Affiliate Transaction solely because the Company, Brand Services
or a Restricted Subsidiary owns an equity interest in or otherwise controls such
Restricted Subsidiary, joint venture or similar entity; and (6) the issuance or
sale of any Capital Stock (other than Disqualified Stock) of the Company or
Brand Services to Affiliates of Brand Services.

                  SECTION 4.08. Limitation on the Sale or Issuance of Capital
Stock of Restricted Subsidiaries.

                  (a) The Company (1) shall not sell, lease, transfer or
otherwise dispose of any Capital Stock of Brand Services to any Person (other
than to a Wholly Owned Subsidiary) and (2) shall not permit Brand Services to
issue any of its Capital Stock (other than, if necessary, shares of its Capital
Stock constituting directors' or other legally required qualifying shares) to
any Person (other than to the Company or a Wholly Owned Subsidiary), unless
immediately after giving effect to such issuance, sale or other disposition, the
Company does not own any Capital Stock of Brand Services.

                  (b) The Company shall not permit Brand Services or any
Restricted Subsidiary to (1) sell, lease, transfer or otherwise dispose of any
Capital Stock of any Restricted Subsidiary to any Person (other than to Brand
Services or a Wholly Owned Subsidiary) or (2) issue any Capital Stock of any
Restricted Subsidiaries (other than, if necessary, shares of its Capital Stock
constituting directors' or other legally required qualifying shares)

<PAGE>
                                                                              60

to any Person (other than to Brand Services or a Wholly Owned Subsidiary),
unless (A) immediately after giving effect to such issuance, sale or other
disposition, neither Brand Services nor any of its Subsidiaries own any Capital
Stock of such Restricted Subsidiary or (B) immediately after giving effect to
such issuance, sale or other disposition, such Restricted Subsidiary would no
longer constitute a Restricted Subsidiary and any Investment in such Person
remaining after giving effect thereto is treated as a new Investment by Brand
Services and such Investment would be permitted to be made under Section 4.04 if
made on the date of such issuance, sale or other disposition. Notwithstanding
the foregoing, the issuance or sale of shares of Capital Stock of any Restricted
Subsidiary of Brand Services will not violate the provisions of the immediately
preceding sentence if such shares are issued or sold in connection with (x) the
formation or capitalization of a Restricted Subsidiary or (y) a single
transaction or a series of substantially contemporaneous transactions whereby
such Restricted Subsidiary becomes a Restricted Subsidiary of Brand Services by
reason of the acquisition of securities or assets from another Person.

                  SECTION 4.09. Change of Control.

                  (a) Upon the occurrence of a Change of Control, each Holder
shall have the right to require that the Company repurchase such Holder's
Securities at a purchase price in cash equal to 101% of the principal amount
thereof on the date of purchase plus accrued and unpaid interest, if any, to the
date of purchase (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date), in
accordance with the terms contemplated in Section 4.09(b). In the event that at
the time of such Change of Control the terms of the Senior Indebtedness of the
Company (including its guarantee under the Credit Agreement) restrict or
prohibit the purchase of Securities pursuant to this Section 4.09, then prior to
the mailing of the notice to Holders provided for in Section 4.09(b) below but
in any event within 30 days following any Change of Control, the Company shall
(1) repay in full all such Senior Indebtedness or (2) obtain the requisite
consents under the agreements governing such Senior Indebtedness to permit the
repurchase of the Securities as provided for in Section 4.09(b).

                  (b) Within 30 days following any Change of Control, the
Company shall mail a notice to each Holder with a copy to the Trustee (the
"Change of Control Offer") stating:

<PAGE>
                                                                              61

                  (1) that a Change of Control has occurred and that such Holder
         has the right to require the Company to purchase such Holder's
         Securities at a purchase price in cash equal to 101% of the principal
         amount thereof on the date of purchase, plus accrued and unpaid
         interest, if any, to the date of purchase (subject to the right of
         Holders of record on the relevant record date to receive interest on
         the relevant interest payment date);

                  (2) the circumstances and relevant facts regarding such Change
         of Control (including information with respect to pro forma historical
         income, cash flow and capitalization, in each case after giving effect
         to such Change of Control);

                  (3) the purchase date (which shall be no earlier than 30 days
         nor later than 60 days from the date such notice is mailed); and

                  (4) the instructions determined by the Company, consistent
         with this Section 4.09, that a Holder must follow in order to have its
         Securities purchased.

                  (c) Holders electing to have a Security purchased will be
required to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least three Business Days
prior to the purchase date. Holders will be entitled to withdraw their election
if the Trustee or the Company receives not later than one Business Day prior to
the purchase date, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of the Security which was
delivered for purchase by the Holder and a statement that such Holder is
withdrawing his election to have such Security purchased.

                  (d) On the purchase date, all Securities purchased by the
Company under this Section 4.09 shall be delivered by the Company to the Trustee
for cancellation, and the Company shall pay the purchase price plus accrued and
unpaid interest, if any, to the Holders entitled thereto.

                  (e) Notwithstanding the foregoing provisions of this Section
4.09, the Company shall not be required to

<PAGE>
                                                                              62

make a Change of Control Offer upon a Change of Control if a third party makes
the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in Section 4.09(b) and purchases all
Securities validly tendered and not withdrawn under such Change of Control
Offer.

                  (f) The Company shall comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Securities pursuant to
this Section 4.09. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 4.09, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations under this Section 4.09 by virtue of its
compliance with such securities laws or regulations.

                  SECTION 4.10. Limitation on Line of Business.

                  (a) The Company shall not engage in any business other than
the ownership of equity of Brand Services and the issuance of its own
securities.

                  (b) The Company shall not permit Brand Services or any
Restricted Subsidiary to engage in any business other than a Related Business.

                  SECTION 4.11. Compliance Certificate. The Company shall
deliver to the Trustee within 120 days after the end of each fiscal year of the
Company an Officers' Certificate stating that in the course of the performance
by the signers of their duties as Officers of the Company they would normally
have knowledge of any Default and whether or not the signers know of any Default
that occurred during such period. If they do, the certificate shall describe the
Default, its status and what action the Company is taking or proposes to take
with respect thereto. The Company also shall comply with TIA Section 314(a)(4).

                  SECTION 4.12. Further Instruments and Acts. Upon request of
the Trustee, the Company shall execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

<PAGE>
                                                                              63

                                    ARTICLE 5

                                Successor Company

                  SECTION 5.01. When Company May Merge or Transfer Assets.

                  (a) The Company shall not consolidate with or merge with or
into, or convey, transfer or lease, in one transaction or a series of
transactions, directly or indirectly, all or substantially all its assets to,
any Person, unless:

                  (1) the resulting, surviving or transferee Person (the
         "Successor Company") shall be a Person organized and existing under the
         laws of the United States of America, any State thereof or the District
         of Columbia and the Successor Company (if not the Company) shall
         expressly assume, by an indenture supplemental hereto, executed and
         delivered to the Trustee, in form satisfactory to the Trustee, all the
         obligations of the Company under the Securities and this Indenture;

                  (2) immediately after giving pro forma effect to such
         transaction (and treating any Indebtedness which becomes an obligation
         of the Successor Company or any Subsidiary as a result of such
         transaction as having been Incurred by such Successor Company or such
         Subsidiary at the time of such transaction), no Default shall have
         occurred and be continuing; and

                  (3) the Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger or transfer and such supplemental indenture (if
         any) comply with this Indenture.

                  For purposes of this Section 5.01(a), the sale, lease,
conveyance, assignment, transfer or other disposition of all or substantially
all of the properties and assets of one or more Subsidiaries of the Company,
which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and
assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

                  The Successor Company shall be the successor to the Company
and shall succeed to, and be substituted for, and may exercise every right and
power of, the Company

<PAGE>
                                                                              64

under this Indenture, and the predecessor Company, except in the case of a
lease, shall be released from the obligation to pay the principal of and
interest on the Securities.

                                    ARTICLE 6

                              Defaults and Remedies

                  SECTION 6.01. Events of Default. An "Event of Default" occurs
if:

                  (1) the Company defaults in any payment of interest when the
         same becomes due and payable, whether or not such payment shall be
         prohibited by Article 10, and such default continues for a period of 30
         days;

                  (2) the Company (i) defaults in the payment of the principal
         of any Security when the same becomes due and payable at its Stated
         Maturity, upon optional redemption, upon declaration of acceleration or
         otherwise, whether or not such payment shall be prohibited by Article
         10, or (ii) fails to purchase Securities when required pursuant to this
         Indenture or the Securities, whether or not such purchase shall be
         prohibited by Article 10;

                  (3) the Company fails to comply with Section 5.01;

                  (4) the Company, Brand Services or any Restricted Subsidiary
         fails to comply with Section 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08,
         4.09 or 4.10 (other than a failure to purchase Securities when required
         under Section 4.06 or 4.09) and such failure continues for 30 days
         after the notice specified below;

                  (5) the Company, Brand Services or any Restricted Subsidiary
         fails to comply with any of its agreements in the Securities or this
         Indenture (other than those referred to in clause (1), (2), (3) or (4)
         above) and such failure continues for 60 days after the notice
         specified below;

                  (6) Indebtedness of the Company, Brand Services or any
         Significant Subsidiary is not paid within any

<PAGE>
                                                                              65

         applicable grace period after final maturity or is accelerated by the
         holders thereof because of a default and the total amount of such
         Indebtedness unpaid or accelerated exceeds $12.0 million, or its
         foreign currency equivalent at the time;

                  (7) the Company, Brand Services or any Significant Subsidiary
         pursuant to or within the meaning of any Bankruptcy Law:

                           (A) commences a voluntary case;

                           (B) consents to the entry of an order for relief
                  against it in an involuntary case;

                           (C) consents to the appointment of a Custodian of it
                  or for any substantial part of its property; or

                           (D) makes a general assignment for the benefit of its
                  creditors;

         or takes any comparable action under any foreign laws relating to
         insolvency;

                  (8) a court of competent jurisdiction enters an order or
         decree under any Bankruptcy Law that:

                           (A) is for relief against the Company, Brand Services
                  or any Significant Subsidiary in an involuntary case;

                           (B) appoints a Custodian of the Company, Brand
                  Services or any Significant Subsidiary or for any substantial
                  part of its property; or

                           (C) orders the winding up or liquidation of the
                  Company, Brand Services or any Significant Subsidiary;

         or any similar relief is granted under any foreign laws and the order
         or decree remains unstayed and in effect for 60 days; or

                  (9) any judgment or decree for the payment of money in excess
         of $12.0 million or its foreign currency equivalent at the time is
         entered against the Company, Brand Services or any Significant
         Subsidiary, remains outstanding for a period of 30 days following the
         entry of such judgment or decree and is not discharged, waived or the
         execution thereof stayed.

<PAGE>
                                                                              66

                  The foregoing will constitute Events of Default whatever the
reason for any such Event of Default and whether it is voluntary or involuntary
or is effected by operation of law or pursuant to any judgment, decree or order
of any court or any order, rule or regulation of any administrative or
governmental body.

                  The term "Bankruptcy Law" means Title 11, United States Code,
or any similar Federal or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.

                  A Default under clauses (4) or (5) is not an Event of Default
until the Trustee or the holders of at least 25% in principal amount of the
outstanding Securities notify the Company of the Default and the Company does
not cure such Default within the time specified after receipt of such notice.
Such notice must specify the Default, demand that it be remedied and state that
such notice is a "Notice of Default".

                  The Company shall deliver to the Trustee, within 30 days after
the occurrence thereof, written notice in the form of an Officers' Certificate
of any Event of Default under clause (6) or (9) and any event which with the
giving of notice or the lapse of time would become an Event of Default under
clause (4) or (5), its status and what action the Company is taking or proposes
to take with respect thereto.

                  SECTION 6.02. Acceleration. If an Event of Default (other than
an Event of Default specified in Section 6.01(7) or (8) with respect to the
Company) occurs and is continuing, the Trustee by notice to the Company, or the
Holders of at least 25% in principal amount of the Securities by notice to the
Company and the Trustee, may declare the principal of and accrued but unpaid
interest on all the Securities to be due and payable. Upon such a declaration,
such principal and interest shall be due and payable immediately. If an Event of
Default specified in Section 6.01(7) or (8) with respect to the Company occurs,
the principal of and interest on all the Securities shall ipso facto become and
be immediately due and payable without any declaration or other act on the part
of the Trustee or any Securityholders. The Holders of a majority in principal
amount of the Securities by notice to the

<PAGE>
                                                                              67

Trustee may rescind an acceleration and its consequences if the rescission would
not conflict with any judgment or decree and if all existing Events of Default
have been cured or waived except nonpayment of principal or interest that has
become due solely because of acceleration. No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

                  SECTION 6.03. Other Remedies. If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities or this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Securities or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Securityholder in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative.

                  SECTION 6.04. Waiver of Past Defaults. The Holders of a
majority in principal amount of the Securities by notice to the Trustee may
waive an existing Default and its consequences except (i) a Default in the
payment of the principal of or interest on a Security, (ii) a Default arising
from the failure to redeem or purchase any Security when required pursuant to
this Indenture or (iii) a Default in respect of a provision that under Section
9.02 cannot be amended without the consent of each Securityholder affected. When
a Default is waived, it is deemed cured, but no such waiver shall extend to any
subsequent or other Default or impair any consequent right.

                  SECTION 6.05. Control by Majority. The Holders of a majority
in principal amount of the Securities may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. However, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 7.01, that the Trustee determines is unduly prejudicial to
the rights of other Securityholders or would involve the Trustee in personal
liability; provided, however, that the Trustee may take any other

<PAGE>
                                                                              68

action deemed proper by the Trustee that is not inconsistent with such
direction. Prior to taking any action hereunder, the Trustee shall be entitled
to indemnification satisfactory to it in its sole discretion against all losses
and expenses caused by taking or not taking such action.

                  SECTION 6.06. Limitation on Suits. Except to enforce the right
to receive payment of principal, premium (if any) or interest when due, no
Securityholder may pursue any remedy with respect to this Indenture or the
Securities unless:

                  (1) the Holder gives to the Trustee written notice stating
         that an Event of Default is continuing;

                  (2) the Holders of at least 25% in principal amount of the
         outstanding Securities make a written request to the Trustee to pursue
         the remedy;

                  (3) such Holder or Holders offer to the Trustee reasonable
         security or indemnity against any loss, liability or expense;

                  (4) the Trustee does not comply with the request within 60
         days after receipt of the request and the offer of security or
         indemnity; and

                  (5) the Holders of a majority in principal amount of the
         outstanding Securities do not give the Trustee a direction inconsistent
         with the request during such 60-day period.

                  A Securityholder may not use this Indenture to prejudice the
rights of another Securityholder or to obtain a preference or priority over
another Securityholder.

                  SECTION 6.07. Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of principal of and interest on the Securities held by such
Holder, on or after the respective due dates expressed in the Securities, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

                  SECTION 6.08. Collection Suit by Trustee. If an Event of
Default specified in Section 6.01(1) or (2)

<PAGE>
                                                                              69

occurs and is continuing, the Trustee may recover judgment in its own name and
as trustee of an express trust against the Company for the whole amount then due
and owing (together with interest on any unpaid interest to the extent lawful)
and the amounts provided for in Section 7.07.

                  SECTION 6.09. Trustee May File Proofs of Claim. The Trustee
may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee and the Securityholders
allowed in any judicial proceedings relative to the Company, its creditors or
its property and, unless prohibited by law or applicable regulations, may vote
on behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section
7.07.

                  SECTION 6.10. Priorities. If the Trustee collects any money or
property pursuant to this Article 6, it shall pay out the money or property in
the following order:

                  FIRST: to the Trustee for amounts due under Section 7.07;

                  SECOND: to holders of Senior Indebtedness of the Company, to
         the extent required by Article 10;

                  THIRD: to Securityholders for amounts due and unpaid on the
         Securities for principal and interest, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Securities for principal and interest, respectively; and

                  FOURTH: to the Company.

                  The Trustee may fix a record date and payment date for any
payment to Securityholders pursuant to this Section 6.10. At least 15 days
before such record date, the Company shall mail to each Securityholder and the

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                                                                              70

Trustee a notice that states the record date, the payment date and amount to be
paid.

                  SECTION 6.11. Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by
Holders of more than 10% in principal amount of the Securities.

                  SECTION 6.12. Waiver of Stay or Extension Laws. The Company
(to the extent it may lawfully do so) shall not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, which may affect the covenants or the performance of this Indenture; and
the Company (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and shall not hinder, delay or impede
the execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

                                    ARTICLE 7

                                     Trustee

                  SECTION 7.01. Duties of Trustee.

                  (a) If an Event of Default has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture and
use the same degree of care and skill in their exercise as a prudent Person
would exercise or use under the circumstances in the conduct of such Person's
own affairs.

                  (b)  Except during the continuance of an Event of Default:

                  (1) the Trustee undertakes to perform such duties and only
         such duties as are specifically set

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                                                                              71

         forth in this Indenture and no implied covenants or obligations shall
         be read into this Indenture against the Trustee; and

                  (2) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture.

                  (c) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own wilful misconduct,
except that:

                  (1) this paragraph does not limit the effect of Section
7.01(b);

                  (2) the Trustee shall not be liable for any error of judgment
         made in good faith by a Trust Officer unless it is proved that the
         Trustee was negligent in ascertaining the pertinent facts; and

                  (3) the Trustee shall not be liable with respect to any action
         it takes or omits to take in good faith in accordance with a direction
         received by it pursuant to Section 6.05.

                  (d) Every provision of this Indenture that in any way relates
to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

                  (e) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.

                  (f) Money held in trust by the Trustee need not be segregated
from other funds except to the extent required by law.

                  (g) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

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                                                                              72

                  (h) Every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 7.01 and to the provisions of the TIA.

                  SECTION 7.02. Rights of Trustee.

                  (a) The Trustee may rely on any document believed by it to be
genuine and to have been signed or presented by the proper person. The Trustee
need not investigate any fact or matter stated in the document.

                  (b) Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate or an Opinion of Counsel. The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
the Officers' Certificate or Opinion of Counsel.

                  (c) The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due
care.

                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that, without limiting the effect of
Section 7.01(b), the Trustee's conduct does not constitute wilful misconduct or
negligence.

                  (e) The Trustee may consult with counsel, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and
the Securities shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the advice or opinion of such counsel.

                  (f) In case an Event of Default occurs and is continuing, the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Securityholders, unless such Securityholders shall have offered to the Trustee
reasonable indemnity or security against any loss, liability or expense which
might be incurred by it in compliance with such request or direction.

                  SECTION 7.03. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may

<PAGE>
                                                                              73

become the owner or pledgee of Securities and may otherwise deal with the
Company or its Affiliates with the same rights it would have if it were not
Trustee. Any Paying Agent, Registrar, co-registrar or co-paying agent may do the
same with like rights. However, the Trustee must comply with Sections 7.10 and
7.11.

                  SECTION 7.04. Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation, warranty or certification as to the
validity or adequacy of this Indenture or the Securities except as contained in
the Trustee's certificate of authentication. The Trustee shall not be
accountable for the Company's use of the proceeds from the issuance and sale of
the Securities and shall not be responsible for any statement of the Company,
any underwriter or placement agent or any other Person made in connection with
the issuance and sale of the Securities, whether oral or written and whether
contained in this Indenture, any offering document or any other document,
certificate or instrument.

                  SECTION 7.05. Notice of Defaults. If a Default occurs and is
continuing and if it is known to the Trustee, the Trustee shall mail to each
Securityholder notice of the Default within 90 days after it occurs. Except in
the case of a Default in payment of principal of or interest on any Security,
the Trustee may withhold the notice if and so long as a committee of its Trust
Officers in good faith determines that withholding the notice is in the
interests of Securityholders.

                  SECTION 7.06. Reports by Trustee to Holders. As promptly as
practicable after each October 15 beginning with the October following the date
of this Indenture, and in any event prior to December 15 in each year, the
Trustee shall mail to each Securityholder a brief report dated as of October 15
that complies with TIA Section 313(a). The Trustee also shall comply with TIA
Section 313(b).

                  A copy of each report at the time of its mailing to
Securityholders shall be filed with the SEC and each stock exchange (if any) on
which the Securities are listed. The Company agrees to notify promptly the
Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof.

                  SECTION 7.07. Compensation and Indemnity. The Company shall
pay to the Trustee from time to time such compensation as agreed to between the
Company and the

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                                                                              74

Trustee for its acceptance of the responsibilities under this Indenture. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable disbursements, advancements and expenses incurred or
made by it, including costs of collection, in addition to the compensation for
its services. Such expenses shall include the reasonable compensation and
expenses, disbursements and advances of the Trustee's agents, counsel,
accountants and experts. The Company shall indemnify the Trustee against any and
all loss, liability or expense (including attorneys' fees) incurred by it in
connection with the administration of this trust and the performance of its
duties hereunder, including the costs and expenses of enforcing this Indenture
against the Company (including this Section 7.07) and defending itself against
any claim (whether asserted by the Company or any Securityholder or any other
Person) or liability in connection with the exercise or performance of any of
its possession or duties hereunder. The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity. Failure by the Trustee to
so notify the Company shall not relieve the Company of its obligations
hereunder. The Company shall defend the claim and the Trustee may have separate
counsel and the Company shall pay the fees and expenses of such counsel. The
Company need not reimburse any expense or indemnify against any loss, liability
or expense incurred by the Trustee through the Trustee's own wilful misconduct,
negligence or bad faith.

                  To secure the Company's payment obligations in this Section
7.07, the Trustee shall have a lien prior to the Securities on all money or
property held or collected by the Trustee other than money or property held in
trust to pay principal of and interest on particular Securities. Such lien shall
survive the satisfaction and discharge of this Indenture.

                  The Company's payment obligations pursuant to this Section
7.07 shall survive the resignation and removal of the Trustee and the discharge
of this Indenture. When the Trustee incurs expenses after the occurrence of a
Default specified in Section 6.01(7) or (8) with respect to the Company, the
expenses are intended to constitute expenses of administration under the
Bankruptcy Law.

                  SECTION 7.08. Replacement of Trustee. The Trustee may resign
at any time by so notifying the

<PAGE>
                                                                              75

Company. The Holders of a majority in principal amount of the Securities may
remove the Trustee by so notifying the Trustee and may appoint a successor
Trustee. The Company shall remove the Trustee if:

                  (1) the Trustee fails to comply with Section 7.10;

                  (2) the Trustee is adjudged bankrupt or insolvent;

                  (3) a receiver or other public officer takes charge of the
         Trustee or its property; or

                  (4) the Trustee otherwise becomes incapable of acting.

                  If the Trustee resigns, is removed by the Company or by the
Holders of a majority in principal amount of the Securities and such Holders do
not reasonably promptly appoint a successor Trustee, or if a vacancy exists in
the office of Trustee for any reason (the Trustee in such event being referred
to herein as the retiring Trustee), the Company shall promptly appoint a
successor Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Securityholders. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 7.07.

                  If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee or the
Holders of 10% in principal amount of the Securities may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

                  If the Trustee fails to comply with Section 7.10, any
Securityholder may petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee.

<PAGE>
                                                                              76

                  Notwithstanding the replacement of the Trustee pursuant to
this Section, the Company's obligations under Section 7.07 shall continue for
the benefit of the retiring Trustee.

                  SECTION 7.09. Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee.

                  In case at the time such successor or successors by merger,
conversion or consolidation to the Trustee shall succeed to the trusts created
by this Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the
full force which it is anywhere in the Securities or in this Indenture provided
that the certificate of the Trustee shall have.

                  SECTION 7.10. Eligibility; Disqualification. The Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Trustee shall
have a combined capital and surplus of at least $50,000,000 as set forth in its
most recent published annual report of condition. The Trustee shall comply with
TIA Section 310(b); provided, however, that there shall be excluded from the
operation of TIA Section 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of
the Company are outstanding if the requirements for such exclusion set forth in
TIA Section 310(b)(1) are met.

                  SECTION 7.11. Preferential Collection of Claims Against
Company. The Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in TIA Section 311(b). A Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

<PAGE>
                                                                              77

                                    ARTICLE 8

                       Discharge of Indenture; Defeasance

                  SECTION 8.01. Discharge of Liability on Securities;
Defeasance.

                  (a) When (1) the Company delivers to the Trustee all
outstanding Securities (other than Securities replaced pursuant to Section 2.07)
for cancellation or (2) all outstanding Securities have become due and payable,
whether at maturity or on a redemption date as a result of the mailing of a
notice of redemption pursuant to Article 3 hereof and the Company irrevocably
deposits with the Trustee funds sufficient to pay at maturity or upon redemption
all outstanding Securities, including interest thereon to maturity or such
redemption date (other than Securities replaced pursuant to Section 2.07), and
if in either case the Company pays all other sums payable hereunder by the
Company, then this Indenture shall, subject to Section 8.01(c), cease to be of
further effect. The Trustee shall acknowledge satisfaction and discharge of this
Indenture on demand of the Company accompanied by an Officers' Certificate and
an Opinion of Counsel and at the cost and expense of the Company.

                  (b) Subject to Sections 8.01(c) and 8.02, the Company at any
time may terminate (1) all its obligations under the Securities and this
Indenture ("legal defeasance option") or (2) its obligations under Sections
4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09 and 4.10 and the operation of
Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case of
Sections 6.01(7) and (8), with respect only to Significant Subsidiaries)
("covenant defeasance option"). The Company may exercise its legal defeasance
option notwithstanding its prior exercise of its covenant defeasance option.

                  If the Company exercises its legal defeasance option, payment
of the Securities may not be accelerated because of an Event of Default with
respect thereto. If the Company exercises its covenant defeasance option,
payment of the Securities may not be accelerated because of an Event of Default
specified in Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in
the case of Sections 6.01(7) and (8), with respect only to Significant
Subsidiaries).

<PAGE>
                                                                              78

                  Upon satisfaction of the conditions set forth herein and upon
request of the Company, the Trustee shall acknowledge in writing the discharge
of those obligations that the Company terminates.

                  (c) Notwithstanding clauses (a) and (b) above, the Company's
obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and 7.08 and in
this Article 8 shall survive until the Securities have been paid in full.
Thereafter, the Company's obligations in Sections 7.07, 8.04 and 8.05 shall
survive.

                  SECTION 8.02. Conditions to Defeasance. The Company may
exercise its legal defeasance option or its covenant defeasance option only if:

                  (1) the Company irrevocably deposits in trust with the Trustee
         money or U.S. Government Obligations for the payment of principal of
         and interest on the Securities to maturity or redemption, as the case
         may be;

                  (2) the Company delivers to the Trustee a certificate from a
         nationally recognized firm of independent accountants expressing their
         opinion that the payments of principal and interest when due and
         without reinvestment on the deposited U.S. Government Obligations plus
         any deposited money without investment will provide cash at such times
         and in such amounts as will be sufficient to pay principal and interest
         when due on all the Securities to maturity or redemption, as the case
         may be;

                  (3) 123 days pass after the deposit is made and during the
         123-day period no Default specified in Sections 6.01(7) or (8) with
         respect to the Company occurs which is continuing at the end of the
         period;

                  (4) the deposit does not constitute a default under any other
         agreement binding on the Company and is not prohibited by Article 10;

                  (5) the Company delivers to the Trustee an Opinion of Counsel
         to the effect that the trust resulting from the deposit does not
         constitute, or is qualified as, a regulated investment company under
         the Investment Company Act of 1940;

                  (6) in the case of the legal defeasance option, the Company
         shall have delivered to the Trustee an Opinion of Counsel stating that
         (A) the Company has

<PAGE>
                                                                              79

         received from, or there has been published by, the Internal Revenue
         Service a ruling or (B) since the date of this Indenture there has been
         a change in the applicable Federal income tax law, in either case to
         the effect that, and based thereon such Opinion of Counsel shall
         confirm that, the Securityholders will not recognize income, gain or
         loss for Federal income tax purposes as a result of such defeasance and
         will be subject to Federal income tax on the same amounts, in the same
         manner and at the same times as would have been the case if such
         defeasance had not occurred;

                  (7) in the case of the covenant defeasance option, the Company
         shall have delivered to the Trustee an Opinion of Counsel to the effect
         that the Securityholders will not recognize income, gain or loss for
         Federal income tax purposes as a result of such covenant defeasance and
         will be subject to Federal income tax on the same amounts, in the same
         manner and at the same times as would have been the case if such
         covenant defeasance had not occurred; and

                  (8) the Company delivers to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent to the defeasance and discharge of the Securities as
         contemplated by this Article 8 have been complied with.

                  Before or after a deposit, the Company may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future date in
accordance with Article 3.

                  SECTION 8.03. Application of Trust Money. The Trustee shall
hold in trust money or U.S. Government Obligations deposited with it pursuant to
this Article 8. It shall apply the deposited money and the money from U.S.
Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal of and interest on the Securities. Money
and securities so held in trust are not subject to Article 10.

                  SECTION 8.04. Repayment to Company. The Trustee and the Paying
Agent shall promptly turn over to the Company upon request any excess money or
securities held by them at any time.

<PAGE>
                                                                              80

                  Subject to any applicable abandoned property law, the Trustee
and the Paying Agent shall pay to the Company upon request any money held by
them for the payment of principal or interest that remains unclaimed for two
years, and, thereafter, Securityholders entitled to the money must look to the
Company for payment as general creditors.

                  SECTION 8.05. Indemnity for Government Obligations. The
Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against deposited U.S. Government Obligations or
the principal and interest received on such U.S. Government Obligations.

                  SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article 8 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article 8 until such time as the Trustee
or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article 8; provided, however, that, if the
Company has made any payment of interest on or principal of any Securities
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such payment from the
money or U.S. Government Obligations held by the Trustee or Paying Agent.

                                    ARTICLE 9

                                   Amendments

                  SECTION 9.01. Without Consent of Holders. The Company and the
Trustee may amend this Indenture or the Securities without notice to or consent
of any Securityholder:

                  (1) to cure any ambiguity, omission, defect or inconsistency;

                  (2) to comply with Article 5;

<PAGE>
                                                                              81

                  (3) to provide for uncertificated Securities in addition to or
         in place of certificated Securities; provided, however, that the
         uncertificated Securities are issued in registered form for purposes of
         Section 163(f) of the Code or in a manner such that the uncertificated
         Securities are described in Section 163(f)(2)(B) of the Code;

                  (4) to add Guarantees with respect to the Securities,
         including any Guarantees by Subsidiaries of the Company, or to secure
         the Securities;

                  (5) to add to the covenants of the Company for the benefit of
         the Holders or to surrender any right or power herein conferred upon
         the Company;

                  (6) to comply with any requirements of the SEC in connection
         with qualifying, or maintaining the qualification of, this Indenture
         under the TIA; or

                  (7) to make any change that does not adversely affect the
         rights of any Securityholder.

                  An amendment under this Section 9.01 may not make any change
that adversely affects the rights under Article 10 of any holder of Senior
Indebtedness of the Company then outstanding unless the holders of such Senior
Indebtedness (or any group or representative thereof authorized to give a
consent) consent to such change.

                  After an amendment under this Section 9.01 becomes effective,
the Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section 9.01.

                  SECTION 9.02. With Consent of Holders. The Company and the
Trustee may amend this Indenture or the Securities without notice to any
Securityholder but with the written consent of the Holders of at least a
majority in principal amount of the Securities then outstanding (including
consents obtained in connection with a tender offer or exchange for the
Securities). However, without the consent of each Securityholder affected
thereby, an amendment may not:

                  (1) reduce the amount of Securities whose Holders must consent
         to an amendment;

<PAGE>
                                                                              82

                  (2) reduce the rate of or extend the time for payment of
         interest on any Security;

                  (3) reduce the principal amount of or extend the Stated
         Maturity of any Security;

                  (4) reduce the amount payable upon the redemption of any
         Security or change the time at which any Security may be redeemed in
         accordance with Article 3;

                  (5) make any Security payable in money other than that stated
         in the Security;

                  (6) impair the right of any Securityholder to receive payment
         of principal of and interest on such Holder's Securities on or after
         the due dates therefor or to institute suit for the enforcement of any
         payment on or with respect to such Holder's Securities;

                  (7) make any changes in the ranking or priority of any
         Security that would adversely affect the Securityholders; or

                  (8) make any change in Section 6.04 or 6.07 or the second
         sentence of this Section 9.02.

                  It shall not be necessary for the consent of the Holders under
this Section 9.02 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent approves the substance thereof.

                  An amendment under this Section 9.02 may not make any change
that adversely affects the rights under Article 10 of any holder of Senior
Indebtedness of the Company then outstanding unless the holders of such Senior
Indebtedness (or any group or representative thereof authorized to give a
consent) consent to such change.

                  After an amendment under this Section 9.02 becomes effective,
the Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section 9.02.

<PAGE>
                                                                              83

                  SECTION 9.03. Compliance with Trust Indenture Act. Every
amendment to this Indenture or the Securities shall comply with the TIA as then
in effect.

                  SECTION 9.04. Revocation and Effect of Consents and Waivers. A
consent to an amendment or a waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of that Security or portion of the Security
that evidences the same debt as the consenting Holder's Security, even if
notation of the consent or waiver is not made on the Security. However, any such
Holder or subsequent Holder may revoke the consent or waiver as to such Holder's
Security or portion of the Security if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective. After an
amendment or waiver becomes effective, it shall bind every Securityholder. An
amendment or waiver becomes effective upon the execution of such amendment or
waiver by the Trustee.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Securityholders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Securityholders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to give such consent or to revoke any consent
previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date.

                  SECTION 9.05. Notation on or Exchange of Securities. If an
amendment changes the terms of a Security, the Trustee may require the Holder of
the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security regarding the changed terms and return it to the
Holder. Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Security shall issue and the Trustee shall authenticate a
new Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such
amendment.

                  SECTION 9.06. Trustee To Sign Amendments. The Trustee shall
sign any amendment authorized pursuant to this Article 9 if the amendment does
not adversely affect

<PAGE>
                                                                              84

the rights, duties, liabilities or immunities of the Trustee. If it does, the
Trustee may but need not sign it. In signing such amendment the Trustee shall be
entitled to receive indemnity reasonably satisfactory to it and to receive, and
(subject to Section 7.01) shall be fully protected in relying upon, an Officers'
Certificate and an Opinion of Counsel stating that such amendment is authorized
or permitted by this Indenture.

                  SECTION 9.07. Payment for Consent. Neither the Company nor any
Affiliate of the Company shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Securities unless such consideration is
offered to be paid to all Holders that so consent, waive or agree to amend in
the time frame set forth in solicitation documents relating to such consent,
waiver or agreement.

                                   ARTICLE 10

                                  Subordination

                  SECTION 10.01. Agreement To Subordinate. The Company agrees,
and each Securityholder by accepting a Security agrees, that the Indebtedness
evidenced by the Securities is subordinated in right of payment, to the extent
and in the manner provided in this Article 10, to the prior payment of all
Senior Indebtedness of the Company and that the subordination is for the benefit
of and enforceable by the holders of such Senior Indebtedness. The Securities
shall in all respects rank pari passu with all other Senior Subordinated
Indebtedness of the Company, and only Indebtedness of the Company which is
Senior Indebtedness of the Company shall rank senior to the Securities in
accordance with the provisions set forth herein. All provisions of this Article
10 shall be subject to Section 10.12.

                  SECTION 10.02. Liquidation, Dissolution, Bankruptcy. Upon any
payment or distribution of the assets of the Company to creditors upon a total
or partial liquidation or a total or partial dissolution of

<PAGE>
                                                                              85

the Company or in a bankruptcy, reorganization, insolvency, receivership or
similar proceeding relating to the Company or its property:

                  (1) holders of Senior Indebtedness of the Company shall be
         entitled to receive payment in full in cash of such Senior Indebtedness
         before Securityholders shall be entitled to receive any payment of
         principal of or interest on the Securities;

                  (2) until such Senior Indebtedness of the Company is paid in
         full in cash, any payment or distribution to which Securityholders
         would be entitled but for this Article 10 shall be made to holders of
         such Senior Indebtedness as their interests may appear, except that
         Securityholders may receive shares of Capital Stock and any
         subordinated debt obligations that are subordinated to all securities
         issued in respect of claims of such Senior Indebtedness; and

                  (3) if a distribution is made to Securityholders that, due to
         this Article 10, should not have been made to them, such
         Securityholders are required to hold it in trust for the holders of
         Senior Indebtedness of the Company and pay it over to them as their
         interests may appear.

                  SECTION 10.03. Default on Senior Indebtedness of the Company.
The Company shall not pay the principal of, premium, if any, or interest on the
Securities or make any deposit pursuant to Section 8.01 and may not purchase,
redeem or otherwise retire any Securities (collectively, "pay the Securities")
if either of the following (a "Payment Default") occurs (1) any Obligation on
any Designated Senior Indebtedness of the Company is not paid in full in cash
when due; or (2) any other default on Designated Senior Indebtedness of the
Company occurs and the maturity of such Designated Senior Indebtedness is
accelerated in accordance with its terms, unless, in either case, the Payment
Default has been cured or waived and any such acceleration has been rescinded or
such Designated Senior Indebtedness has been paid in full in cash; provided,
however, that the Company shall be entitled to pay the Securities without regard
to the foregoing if the Company and the Trustee receive written notice approving
such payment from the Representatives of all Designated Senior Indebtedness with
respect to which the Payment Default has occurred and is continuing.

<PAGE>
                                                                              86

                  During the continuance of any default (other than a Payment
Default) with respect to any Designated Senior Indebtedness of the Company
pursuant to which the maturity thereof may be accelerated without further notice
(except such notice as may be required to effect such acceleration) or the
expiration of any applicable grace periods, the Company shall not pay the
Securities for a period (a "Payment Blockage Period") commencing upon the
receipt by the Trustee (with a copy to the Company) of written notice (a
"Blockage Notice") of such default from the Representative of such Designated
Senior Indebtedness specifying an election to effect a Payment Blockage Period
and ending 179 days thereafter. The Payment Blockage Period shall end earlier if
such Payment Blockage Period is terminated (1) by written notice to the Trustee
and the Company from the Person or Persons who gave such Blockage Notice; (2)
because the default giving rise to such Blockage Notice is cured, waived or
otherwise no longer continuing; or (3) because such Designated Senior
Indebtedness has been discharged or repaid in full in cash. Notwithstanding the
provisions described in the immediately preceding two sentences (but subject to
the provisions contained in the first sentence of this Section 10.03), unless
the holders of such Designated Senior Indebtedness or the Representative of such
Designated Senior Indebtedness shall have accelerated the maturity of such
Designated Senior Indebtedness, the Company shall be entitled to resume payments
on the Securities after termination of such Payment Blockage Period. The
Securities shall not be subject to more than one Payment Blockage Period in any
consecutive 360-day period, irrespective of the number of defaults with respect
to Designated Senior Indebtedness of the Company during such period; provided,
however, that if any Blockage Notice is delivered to the Trustee by or on behalf
of any holders of Designated Senior Indebtedness of the Company (other than the
Bank Indebtedness), the Representative of holders of Bank Indebtedness shall be
entitled to give another Blockage Notice within such period; provided further,
however, that in no event shall the total number of days during which any
Payment Blockage Period or Periods is in effect exceed 179 days in the aggregate
during any 360-consecutive-day period, and there must be 181 days during any
360-consecutive-day period during which no Payment Blockage Period is in effect.

                  For purposes of this Section 10.03, no default or event of
default which existed or was continuing on the date of the commencement of any
Payment Blockage Period with respect to the Designated Senior Indebtedness

<PAGE>
                                                                              87

of the Company initiating such Payment Blockage Period shall be, or be made, the
basis of the commencement of a subsequent Payment Blockage Period by the
Representative of such Designated Senior Indebtedness, whether or not within a
period of 360 consecutive days, unless such default or event of default shall
have been cured or waived for a period of not less than 90 consecutive days.

                  SECTION 10.04. Acceleration of Payment of Securities. If
payment of the Securities is accelerated because of an Event of Default, the
Company or the Trustee shall promptly notify the holders of the Designated
Senior Indebtedness of the Company (or their Representatives) of the
acceleration.

                  If any Designated Senior Indebtedness is outstanding, the
Company shall not be permitted to pay the Securities until five Business Days
after the Representatives of all the issues of Designated Senior Indebtedness
receive notice of such acceleration and, thereafter, may pay the Securities only
if this Indenture otherwise permits payment at that time.

                  SECTION 10.05. When Distribution Must Be Paid Over. If a
distribution is made to Securityholders that because of this Article 10 should
not have been made to them, the Securityholders who receive the distribution
shall hold it in trust for holders of Senior Indebtedness of the Company and pay
it over to them as their interests may appear.

                  SECTION 10.06. Subrogation. After all Senior Indebtedness of
the Company is paid in full and until the Securities are paid in full,
Securityholders shall be subrogated to the rights of holders of such Senior
Indebtedness to receive distributions applicable to such Senior Indebtedness. A
distribution made under this Article 10 to holders of such Senior Indebtedness
which otherwise would have been made to Securityholders is not, as between the
Company and Securityholders, a payment by the Company on such Senior
Indebtedness.

                  SECTION 10.07. Relative Rights. This Article 10 defines the
relative rights of Securityholders and holders of Senior Indebtedness of the
Company. Nothing in this Indenture shall:

                  (1) impair, as between the Company and Securityholders, the
         obligation of the Company, which is absolute and unconditional, to pay

<PAGE>
                                                                              88

         principal of and interest on the Securities in accordance with their
         terms; or

                  (2) prevent the Trustee or any Securityholder from exercising
         its available remedies upon a Default, subject to the rights of holders
         of Senior Indebtedness of the Company to receive distributions
         otherwise payable to Securityholders.

                  SECTION 10.08. Subordination May Not Be Impaired by Company.
No right of any holder of Senior Indebtedness of the Company to enforce the
subordination of the Indebtedness evidenced by the Securities shall be impaired
by any act or failure to act by the Company or by its failure to comply with
this Indenture.

                  SECTION 10.09. Rights of Trustee and Paying Agent.
Notwithstanding Section 10.03, the Trustee or Paying Agent shall continue to
make payments on the Securities and shall not be charged with knowledge of the
existence of facts that under this Article 10 would prohibit the making of any
such payments unless, not less than two Business Days prior to the date of such
payment, a Trust Officer of the Trustee receives notice satisfactory to it that
such payments are prohibited by this Article 10. The Company, the Registrar or
co-registrar, the Paying Agent, a Representative or a holder of Senior
Indebtedness of the Company shall be entitled to give the notice; provided,
however, that, if an issue of Senior Indebtedness of the Company has a
Representative, only the Representative shall be entitled to give the notice.

                  The Trustee in its individual or any other capacity shall be
entitled to hold Senior Indebtedness of the Company with the same rights it
would have if it were not Trustee. The Registrar and co-registrar and the Paying
Agent shall be entitled to do the same with like rights. The Trustee shall be
entitled to all the rights set forth in this Article 10 with respect to any
Senior Indebtedness of the Company which may at any time be held by it, to the
same extent as any other holder of such Senior Indebtedness; and nothing in
Article 7 shall deprive the Trustee of any of its rights as such holder. Nothing
in this Article 10 shall apply to claims of, or payments to, the Trustee under
or pursuant to Section 7.07.

                  SECTION 10.10. Distribution or Notice to Representative.
Whenever any Person is to make a distribution or give a notice to holders of
Senior

<PAGE>
                                                                              89

Indebtedness of the Company, such Person shall be entitled to make such
distribution or give such notice to their Representative (if any).

                  SECTION 10.11. Article 10 Not To Prevent Events of Default or
Limit Right To Accelerate. The failure to make a payment pursuant to the
Securities by reason of any provision in this Article 10 shall not be construed
as preventing the occurrence of a Default. Nothing in this Article 10 shall have
any effect on the right of the Securityholders or the Trustee to accelerate the
maturity of the Securities.

                  SECTION 10.12. Trust Moneys Not Subordinated. Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds
of U.S. Government Obligations held in trust under Article 8 by the Trustee for
the payment of principal of and interest on the Securities shall not be
subordinated to the prior payment of any Senior Indebtedness of the Company or
subject to the restrictions set forth in this Article 10, and none of the
Securityholders shall be obligated to pay over any such amount to the Company or
any holder of Senior Indebtedness of the Company or any other creditor of the
Company.

                  SECTION 10.13. Trustee Entitled To Rely. Upon any payment or
distribution pursuant to this Article 10, the Trustee and the Securityholders
shall be entitled to rely (1) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 10.02
are pending, (2) upon a certificate of the liquidating trustee or agent or other
Person making such payment or distribution to the Trustee or to the
Securityholders or (3) upon the Representatives of Senior Indebtedness of the
Company for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of such Senior Indebtedness and other
Indebtedness of the Company, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article 10. In the event that the Trustee determines, in good faith,
that evidence is required with respect to the right of any Person as a holder of
Senior Indebtedness of the Company to participate in any payment or distribution
pursuant to this Article 10, the Trustee shall be entitled to request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of such Senior Indebtedness held by such Person, the extent to which
such Person is entitled to participate in such

<PAGE>
                                                                              90

payment or distribution and other facts pertinent to the rights of such Person
under this Article 10, and, if such evidence is not furnished, the Trustee shall
be entitled to defer any payment to such Person pending judicial determination
as to the right of such Person to receive such payment. The provisions of
Sections 7.01 and 7.02 shall be applicable to all actions or omissions of
actions by the Trustee pursuant to this Article 10.

                  SECTION 10.14. Trustee To Effectuate Subordination. Each
Securityholder by accepting a Security authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination between the Securityholders and the holders of
Senior Indebtedness of the Company as provided in this Article 10 and appoints
the Trustee as attorney-in-fact for any and all such purposes.

                  SECTION 10.15. Trustee Not Fiduciary for Holders of Senior
Indebtedness of the Company. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness of the Company and shall
not be liable to any such holders if it shall mistakenly pay over or distribute
to Securityholders or the Company or any other Person, money or assets to which
any holders of Senior Indebtedness of the Company shall be entitled by virtue of
this Article 10 or otherwise.

                  SECTION 10.16. Reliance by Holders of Senior Indebtedness of
the Company on Subordination Provisions. Each Securityholder by accepting a
Security acknowledges and agrees that the foregoing subordination provisions
are, and are intended to be, an inducement and a consideration to each holder of
any Senior Indebtedness of the Company, whether such Senior Indebtedness was
created or acquired before or after the issuance of the Securities, to acquire
and continue to hold, or to continue to hold, such Senior Indebtedness and such
holder of such Senior Indebtedness shall be deemed conclusively to have relied
on such subordination provisions in acquiring and continuing to hold, or in
continuing to hold, such Senior Indebtedness.

                                   ARTICLE 11

                                  Miscellaneous

                  SECTION 11.01. Trust Indenture Act Controls. If any provision
of this Indenture limits, qualifies or

<PAGE>
                                                                              91

conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.

                  SECTION 11.02. Notices. Any notice or communication shall be
in writing and delivered in person or mailed by first-class mail addressed as
follows:

         if to the Company, Parent or any Subsidiary Guarantor:

         Brand Intermediate Holdings, Inc.
         15450 South Outer Highway 40
         Suite 270
         Chesterfield, Mo. 63017
         Attention: Jeffrey W. Peterson

         if to the Trustee:

         The Bank of New York Trust Company of Florida, N.A.
         Plaza of the Americas
         600 North Pearl Street
         Suite 420
         Dallas, Texas 75201
         Attention: Corporate Trust Division

                  The Company, Parent, any Subsidiary Guarantor or the Trustee
by notice to the other may designate additional or different addresses for
subsequent notices or communications.

                  Any notice or communication mailed to a Securityholder shall
be mailed to the Securityholder at the Securityholder's address as it appears on
the registration books of the Registrar and shall be sufficiently given if so
mailed within the time prescribed.

                  Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

                  SECTION 11.03. Communication by Holders with Other Holders.
Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, Parent, any Subsidiary Guarantor, the Trustee, the
Registrar and anyone else shall have the protection of TIA Section 312(c).

<PAGE>
                                                                              92

                  SECTION 11.04. Certificate and Opinion as to Conditions
Precedent. Upon any request or application by the Company to the Trustee to take
or refrain from taking any action under this Indenture, the Company shall
furnish to the Trustee:

                  (1) an Officers' Certificate in form and substance reasonably
         satisfactory to the Trustee stating that, in the opinion of the
         signers, all conditions precedent, if any, provided for in this
         Indenture relating to the proposed action have been complied with; and

                  (2) an Opinion of Counsel in form and substance reasonably
         satisfactory to the Trustee stating that, in the opinion of such
         counsel, all such conditions precedent have been complied with.

                  SECTION 11.05. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture shall include:

                  (1) a statement that the individual making such certificate or
         opinion has read such covenant or condition;

                  (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3) a statement that, in the opinion of such individual, he
         has made such examination or investigation as is necessary to enable
         him to express an informed opinion as to whether or not such covenant
         or condition has been complied with; and

                  (4) a statement as to whether or not, in the opinion of such
         individual, such covenant or condition has been complied with.

                  SECTION 11.06. When Securities Disregarded. In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or by any Person directly or indirectly controlling or

<PAGE>
                                                                              93

controlled by or under direct or indirect common control with the Company shall
be disregarded and deemed not to be outstanding, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which the Trustee knows are so
owned shall be so disregarded. Also, subject to the foregoing, only Securities
outstanding at the time shall be considered in any such determination.

                  SECTION 11.07. Rules by Trustee, Paying Agent and Registrar.
The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar and the Paying Agent may make reasonable rules
for their functions.

                  SECTION 11.08. Legal Holidays. A "Legal Holiday" is a
Saturday, a Sunday or a day on which banking institutions are not required to be
open in the State of New York. If a payment date is a Legal Holiday, payment
shall be made on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period. If a regular record date is a
Legal Holiday, the record date shall not be affected.

                  SECTION 11.09. Governing Law. This Indenture and the
Securities shall be governed by, and construed in accordance with, the laws of
the State of New York but without giving effect to applicable principles of
conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby.

                  SECTION 11.10. No Recourse Against Others. A director,
officer, employee, incorporator or stockholder, as such, of the Company, Parent
or any Subsidiary Guarantor shall not have any liability for any obligations of
the Company under the Securities or this Indenture or of Parent or any such
Subsidiary Guarantor under the Parent Guaranty or any Subsidiary Guaranty, as
the case may be, or this Indenture or for any claim based on, in respect of or
by reason of such obligations or their creation. By accepting a Security, each
Securityholder shall waive and release all such liability. The waiver and
release shall be part of the consideration for the issue of the Securities.

                  SECTION 11.11. Successors. All agreements of the Company,
Parent or any Subsidiary Guarantor in this Indenture and the Securities shall
bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors.

<PAGE>
                                                                              94

                  SECTION 11.12. Multiple Originals. The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. One signed copy is enough to
prove this Indenture.

                  SECTION 11.13. Table of Contents; Headings. The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

<PAGE>
                                                                              95

                  IN WITNESS WHEREOF, the parties have caused this Indenture to
be duly executed as of the date first written above.

                                       BRAND INTERMEDIATE HOLDINGS, INC.,

                                            by
                                               ---------------------------------
                                               Name:
                                               Title:

<PAGE>
                                                                              96

                                       THE BANK OF NEW YORK TRUST COMPANY OF
                                       FLORIDA, N.A.,

                                            by
                                               ---------------------------------
                                               Name:
                                               Title:

<PAGE>

                                             RULE 144A/REGULATION S/IAI APPENDIX

                        PROVISIONS RELATING TO SECURITIES

         1. Definitions

         1.1 Definitions

         Capitalized terms used but not otherwise defined in this Appendix shall
have the meanings assigned in the Indenture. For the purposes of this Appendix
the following terms shall have the meanings indicated below:

                  "Applicable Procedures" means, with respect to any transfer or
transaction involving a Temporary Regulation S Global Security or beneficial
interest therein, the rules and procedures of the Depository, Euroclear and
Clearstream for such a Temporary Regulation S Global Security, in each case to
the extent applicable to such transaction and as in effect from time to time.

                  "Clearstream" means Clearstream Banking, societe anonyme, or
any successor securities clearing agency.

                  "Definitive Security" means a certificated Initial Security or
Exchange Security or Private Exchange Security bearing, if required, the
restricted securities legend set forth in Section 2.3(e).

                  "Depository" means The Depository Trust Company, its nominees
and their respective successors.

                  "Distribution Compliance Period", with respect to any
Securities, means the period of 40 consecutive days beginning on and including
the later of (i) the day on which such Securities are first offered to Persons
other than distributors (as defined in Regulation S under the Securities Act) in
reliance on Regulation S and (ii) the Issue Date with respect to such
Securities.

                  "Euroclear" means Euroclear Bank S.A./N.V., as operator of the
Euroclear System, or any successor securities clearing agency.

                  "IAI" means an institutional "accredited investor," as defined
in Rule 501(a)(1),(2),(3) and (7) of Regulation D under the Securities Act.

                  "Initial Purchasers" means, with respect to the Securities
issued on the Issue Date, Credit Suisse First Boston Corporation and J.P. Morgan
Securities Inc.

                  "Purchase Agreement" means, with respect to the Securities
issued on the Issue Date, the Purchase Agreement, dated October 16, 2002, among
the Company and the Initial Purchasers.

<PAGE>
                                                                               2

                  "QIB" means a "qualified institutional buyer" as defined in
Rule 144A.

                  "Rule 144A Securities" means all Securities offered and sold
to QIBs in reliance on Rule 144A.

                  "Securities" means (1) $35 million aggregate principal amount
of 13% Senior Subordinated Pay-In-Kind Notes Due 2013 issued on the Issue Date
and (2) PIK Securities, if any, issued by the Company pursuant to the Indenture.

                  "Securities Act" means the Securities Act of 1933.

                  "Securities Custodian" means the custodian with respect to a
Global Security (as appointed by the Depository), or any successor Person
thereto, and shall initially be the Trustee.

                  "Transfer Restricted Securities" means Securities that bear or
are required to bear the legend relating to restrictions on transfer relating to
the Securities Act set forth in Section 2.3(e) hereto.

         1.2 Other Definitions

<Table>
<Caption>
                                                                                                  Defined in
         Term                                                                                      Section:
         ----                                                                                     ----------
<S>                                                                                               <C>
"Agent Members".....................................................................................2.1(b)
"Global Security"...................................................................................2.1(a)
"Permanent Regulation S Global Security.............................................................2.1(a)
"Regulation S"......................................................................................2.1(a)
"Rule 144A".........................................................................................2.1(a)
"Rule 144A Global Security..........................................................................2.1(a)
"Temporary Regulation S Global Security.............................................................2.1(a)
</Table>

         2. The Securities

         2.1 (a) Form and Dating. The Securities will be offered and sold by the
Company pursuant to a Purchase Agreement. The Securities will be resold
initially only to (i) QIBs in reliance on Rule 144A under the Securities

<PAGE>
                                                                               3

Act ("Rule 144A"), (ii) IAIs and (iii) Persons other than U.S. Persons (as
defined in Regulation S) in reliance on Regulation S under the Securities Act
("Regulation S"). Securities may thereafter be transferred to, among others,
QIBs, IAIs and purchasers in reliance on Regulation S, subject to the
restrictions on transfer set forth herein. Securities initially resold pursuant
to Rule 144A (collectively, the "Rule 144A Global Security") and to IAIs
(collectively, the "IAI Global Security") shall be issued initially in the form
of one or more permanent global Securities in definitive, fully registered form,
and Securities initially resold pursuant to Regulation S (collectively, the
"Temporary Regulation S Global Security") shall be issued initially in the form
of one or more temporary global securities in definitive, fully registered form,
in each case without interest coupons and with the global securities legend and
restricted securities legend set forth in Exhibit 1 hereto, which shall be
deposited on behalf of the purchasers of the Securities represented thereby with
the Securities Custodian and registered in the name of the Depository or a
nominee of the Depository, duly executed by the Company and authenticated by the
Trustee as provided in this Indenture. Beneficial ownership interests in the
Temporary Regulation S Global Security will not be exchangeable for interests in
the Rule 144A Global Security, the IAI Global Security, a permanent global
security (the "Permanent Regulation S Global Security") or any other Security
without a legend containing restrictions on transfer of such Security prior to
the expiration of the Distribution Compliance Period and then only upon
certification in form reasonably satisfactory to the Trustee that beneficial
ownership interests in such Temporary Regulation S Global Security are owned
either by non-U.S. persons or U.S. persons who purchased such interests in a
transaction that did not require registration under the Securities Act. The Rule
144A Global Security, the IAI Global Security, the Temporary Regulation S Global
Security and the Permanent Regulation S Global Security are collectively
referred to herein as "Global Securities". The aggregate principal amount of the
Global Securities may from time to time be increased or decreased by adjustments
made on the records of the Trustee and the Depository or its nominee as
hereinafter provided.

                  (b) Book-Entry Provisions. This Section 2.1(b) shall apply
only to a Global Security deposited with or on behalf of the Depository.

<PAGE>
                                                                               4

                  The Company shall execute and the Trustee shall, in accordance
with this Section 2.1(b), authenticate and deliver initially one or more Global
Securities that (a) shall be registered in the name of the Depository for such
Global Security or Global Securities or the nominee of such Depository and (b)
shall be delivered by the Trustee to such Depository or pursuant to such
Depository's instructions or held by the Trustee as custodian for the
Depository.

                  Members of, or participants in, the Depository ("Agent
Members") shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depository or by the Trustee as the
custodian of the Depository or under such Global Security, and the Company, the
Trustee and any agent of the Company or the Trustee shall be entitled to treat
the Depository as the absolute owner of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee or any agent of the Company or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by
the Depository or impair, as between the Depository and its Agent Members, the
operation of customary practices of such Depository governing the exercise of
the rights of a holder of a beneficial interest in any Global Security.

                  (c) Certificated Securities. Except as provided in this
Section 2.1 or Section 2.3 or 2.4, owners of beneficial interests in Global
Securities shall not be entitled to receive physical delivery of Definitive
Securities.

         2.2 Authentication

                  The Trustee shall authenticate and deliver: (1) on the Issue
Date, an aggregate principal amount of $35 million of 13% Senior Subordinated
Pay-In-Kind Notes Due 2013 and (2) any PIK Securities for an original issue in
an aggregate principal amount specified in the written order of the Company
pursuant to Section 2.02 of the Indenture, in each case upon a written order of
the Company signed by two Officers or by an Officer and either an Assistant
Treasurer or an Assistant Secretary of the Company. Such order shall specify the
amount of the Securities to be authenticated and the date on which the original
issue of Securities is to be authenticated.

<PAGE>
                                                                               5

         2.3 Transfer and Exchange

                  (a) Transfer and Exchange of Definitive Securities. When
Definitive Securities are presented to the Registrar or a co-registrar with a
request:

                  (x)      to register the transfer of such Definitive
                           Securities; or

                  (y)      to exchange such Definitive Securities for an equal
                           principal amount of Definitive Securities of other
                           authorized denominations,

the Registrar or co-registrar shall register the transfer or make the exchange
as requested if its reasonable requirements for such transaction are met;
provided, however, that the Definitive Securities surrendered for transfer or
exchange:

                  (i)      shall be duly endorsed or accompanied by a written
                           instrument of transfer in form reasonably
                           satisfactory to the Company and the Registrar or
                           co-registrar, duly executed by the Holder thereof or
                           its attorney duly authorized in writing; and

                  (ii)     if such Definitive Securities are required to bear a
                           restricted securities legend, they are being
                           transferred or exchanged pursuant to an effective
                           registration statement under the Securities Act,
                           pursuant to Section 2.3(b) or pursuant to clause (A),
                           (B) or (C) below, and are accompanied by the
                           following additional information and documents, as
                           applicable:

                           (A)      if such Definitive Securities are being
                                    delivered to the Registrar by a Holder for
                                    registration in the name of such Holder,
                                    without transfer, a certification from such
                                    Holder to that effect; or

                           (B)      if such Definitive Securities are being
                                    transferred to the Company, a certification
                                    to that effect; or

                           (C)      if such Definitive Securities are being
                                    transferred (x) pursuant to an exemption
                                    from registration in

<PAGE>
                                                                               6

                                    accordance with Rule 144A, Regulation S or
                                    Rule 144 under the Securities Act; or (y) in
                                    reliance upon another exemption from the
                                    requirements of the Securities Act: (i) a
                                    certification to that effect (in the form
                                    set forth on the reverse of the Security)
                                    and (ii) if the Company so requests, an
                                    opinion of counsel or other evidence
                                    reasonably satisfactory to it as to the
                                    compliance with the restrictions set forth
                                    in the legend set forth in Section
                                    2.3(e)(i).

                  (b) Restrictions on Transfer of a Definitive Security for a
Beneficial Interest in a Global Security. A Definitive Security may not be
exchanged for a beneficial interest in a Rule 144A Global Security, an IAI
Global Security or a Permanent Regulation S Global Security except upon
satisfaction of the requirements set forth below. Upon receipt by the Trustee of
a Definitive Security, duly endorsed or accompanied by appropriate instruments
of transfer, in form satisfactory to the Trustee, together with:

                  (i)      certification, in the form set forth on the reverse
                           of the Security, that such Definitive Security is
                           either (A) being transferred to a QIB in accordance
                           with Rule 144A, (B) being transferred to an IAI or
                           (C) is being transferred after expiration of the
                           Distribution Compliance Period by a Person who
                           initially purchased such Security in reliance on
                           Regulation S to a buyer who elects to hold its
                           interest in such Security in the form of a beneficial
                           interest in the Permanent Regulation S Global
                           Security; and

                  (ii)     written instructions directing the Trustee to make,
                           or to direct the Securities Custodian to make, an
                           adjustment on its books and records with respect to
                           such Rule 144A Global Security (in the case of a
                           transfer pursuant to clause (b)(i)(A)), IAI Global
                           Security (in the case of a transfer pursuant to
                           clause (b)(i)(B)) or Permanent Regulation S Global
                           Security (in the case of a transfer pursuant to
                           clause (b)(i)(C)) to reflect an increase in the
                           aggregate principal amount of the Securities

<PAGE>
                                                                               7

                           represented by the Rule 144A Global Security, IAI
                           Global Security or Permanent Regulation S Global
                           Security, as applicable, such instructions to contain
                           information regarding the Depository account to be
                           credited with such increase,

then the Trustee shall cancel such Definitive Security and cause, or direct the
Securities Custodian to cause, in accordance with the standing instructions and
procedures existing between the Depository and the Securities Custodian, the
aggregate principal amount of Securities represented by the Rule 144A Global
Security, IAI Global Security or Permanent Regulation S Global Security, as
applicable, to be increased by the aggregate principal amount of the Definitive
Security to be exchanged and shall credit or cause to be credited to the account
of the Person specified in such instructions a beneficial interest in the Rule
144A Global Security, IAI Global Security or Permanent Regulation S Global
Security, as applicable, equal to the principal amount of the Definitive
Security so canceled. If no Rule 144A Global Securities, IAI Global Securities
or Permanent Regulation S Global Securities, as applicable, are then
outstanding, the Company shall issue and the Trustee shall authenticate, upon
written order of the Company in the form of an Officers' Certificate of the
Company, a new Rule 144A Global Security, IAI Global Security or Permanent
Regulation S Global Security, as applicable, in the appropriate principal
amount.

                  (c) Transfer and Exchange of Global Securities.

                  (i)      The transfer and exchange of Global Securities or
                           beneficial interests therein shall be effected
                           through the Depository, in accordance with this
                           Indenture (including applicable restrictions on
                           transfer set forth herein, if any) and the procedures
                           of the Depository therefor. A transferor of a
                           beneficial interest in a Global Security shall
                           deliver to the Registrar a written order given in
                           accordance with the Depository's procedures
                           containing information regarding the participant
                           account of the Depository to be credited with a
                           beneficial interest in the Global Security. The
                           Registrar shall, in accordance with such
                           instructions, instruct the Depository to credit to
                           the account of the Person specified in such
                           instructions a

<PAGE>
                                                                               8

                           beneficial interest in the Global Security and to
                           debit the account of the Person making the transfer
                           the beneficial interest in the Global Security being
                           transferred.

                  (ii)     If the proposed transfer is a transfer of a
                           beneficial interest in one Global Security to a
                           beneficial interest in another Global Security, the
                           Registrar shall reflect on its books and records the
                           date and an increase in the principal amount of the
                           Global Security to which such interest is being
                           transferred in an amount equal to the principal
                           amount of the interest to be so transferred, and the
                           Registrar shall reflect on its books and records the
                           date and a corresponding decrease in the principal
                           amount of the Global Security from which such
                           interest is being transferred.

                  (iii)    Notwithstanding any other provisions of this Appendix
                           (other than the provisions set forth in Section 2.4),
                           a Global Security may not be transferred as a whole
                           except by the Depository to a nominee of the
                           Depository or by a nominee of the Depository to the
                           Depository or another nominee of the Depository or by
                           the Depository or any such nominee to a successor
                           Depository or a nominee of such successor Depository.

                  (iv)     In the event that a Global Security is exchanged for
                           Definitive Securities pursuant to Section 2.4 of this
                           Appendix, prior to the consummation of a Registered
                           Exchange Offer or the effectiveness of a Shelf
                           Registration Statement with respect to such
                           Securities, such Securities may be exchanged only in
                           accordance with such procedures as are substantially
                           consistent with the provisions of this Section 2.3
                           (including the certification requirements set forth
                           on the reverse of the Securities intended to ensure
                           that such transfers comply with Rule 144A, Regulation
                           S or another applicable exemption under the
                           Securities Act, as the case may be) and

<PAGE>
                                                                               9

                           such other procedures as may from time to time be
                           adopted by the Company.

                  (d) Restrictions on Transfer of Temporary Regulation S Global
Securities. During the Distribution Compliance Period, beneficial ownership
interests in Temporary Regulation S Global Securities may only be sold, pledged
or transferred through Euroclear or Clearstream in accordance with the
Applicable Procedures and only (i) to the Company, (ii) so long as such Security
is eligible for resale pursuant to Rule 144A, to a Person whom the selling
holder reasonably believes is a QIB that purchases for its own account or for
the account of a QIB to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 144A, (iii) to an IAI who is purchasing for
its own account or for the account of another institutional investor, in each
case in a minimum principal amount of the Securities of $250,000, for investment
purposes and not with a view to or for offer or sale in connection with any
distribution in violation of the Securities Act, (iv) in an offshore transaction
in accordance with Regulation S, (v) pursuant to an exemption from registration
under the Securities Act provided by Rule 144 (if applicable) under the
Securities Act or (vi) pursuant to an effective registration statement under the
Securities Act, in each case in accordance with any applicable securities laws
of any State of the United States.

                  (e) Legend.

                  (i) Except as permitted by the following paragraphs (ii),
         (iii) and (iv), each Security certificate evidencing the Global
         Securities (and all Securities issued in exchange therefor or in
         substitution thereof) shall bear a legend in substantially the
         following form:

                  THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
                  TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
                  SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND
                  THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE
                  TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
                  APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
                  SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY
                  MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION
                  5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

<PAGE>
                                                                              10

                  THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE
                  COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED
                  OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) IN THE
                  UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES
                  IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
                  UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
                  REQUIREMENTS OF RULE 144A, (III) TO AN "ACCREDITED INVESTOR"
                  WITHIN THE MEANING OF RULE 501(a)(1),(2),(3) OR (7) UNDER THE
                  SECURITIES ACT THAT IS AN INSTITUTIONAL INVESTOR ACQUIRING THE
                  SECURITIES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN
                  INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
                  PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT
                  PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN
                  CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
                  SECURITIES ACT, (IV) OUTSIDE THE UNITED STATES IN AN OFFSHORE
                  TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES
                  ACT, (V) PURSUANT TO EXEMPTION FROM REGISTRATION UNDER THE
                  SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE)
                  OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
                  THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI) IN
                  ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
                  THE UNITED STATES AND OTHER JURISDICTIONS, AND (B) THE HOLDER
                  WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
                  PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS
                  REFERRED TO IN (A) ABOVE.

                  Each Definitive Security will also bear the following
additional legend:

                  IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO
                  THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
                  INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO
                  CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
                  RESTRICTIONS.

                  (ii) Upon any sale or transfer of a Transfer Restricted
         Security (including any Transfer Restricted Security represented by a
         Global Security) pursuant to Rule 144 under the Securities Act, the
         Registrar shall permit the transferee thereof to exchange such Transfer
         Restricted Security for a certificated Security that does not

<PAGE>
                                                                              11

         bear the legend set forth above and rescind any restriction on the
         transfer of such Transfer Restricted Security, if the transferor
         thereof certifies in writing to the Registrar that such sale or
         transfer was made in reliance on Rule 144 (such certification to be in
         the form set forth on the reverse of the Security).

                  (f) Cancellation or Adjustment of Global Security. At such
time as all beneficial interests in a Global Security have either been exchanged
for Definitive Securities, redeemed, purchased or canceled, such Global Security
shall be returned to the Depository for cancellation or retained and canceled by
the Trustee. At any time prior to such cancellation, if any beneficial interest
in a Global Security is exchanged for certificated Securities, redeemed,
purchased or canceled, the principal amount of Securities represented by such
Global Security shall be reduced and an adjustment shall be made on the books
and records of the Trustee (if it is then the Securities Custodian for such
Global Security) with respect to such Global Security, by the Trustee or the
Securities Custodian, to reflect such reduction.

                  (g) Obligations with Respect to Transfers and Exchanges of
Securities.

                  (i) To permit registrations of transfers and exchanges, the
         Company shall execute and the Trustee shall authenticate Definitive
         Securities and Global Securities at the Registrar's or co-registrar's
         request.

                  (ii) No service charge shall be made for any registration of
         transfer or exchange, but the Company may require payment of a sum
         sufficient to cover any transfer tax, assessments, or similar
         governmental charge payable in connection therewith (other than any
         such transfer taxes, assessments or similar governmental charge payable
         upon exchange or transfer pursuant to Sections 3.06, 4.06, 4.09 and
         9.05 of the Indenture).

                  (iii) The Registrar or co-registrar shall not be required to
         register the transfer of or exchange of (a) any Definitive Security
         selected for redemption in whole or in part pursuant to Article 3 of
         this Indenture, except the unredeemed portion of any Definitive
         Security being redeemed in part or (b) any Security for a period
         beginning 15 Business Days before the mailing of a notice of an offer
         to

<PAGE>
                                                                              12

         repurchase or redeem Securities or 15 Business Days before an interest
         payment date.

                  (iv) Prior to the due presentation for registration of
         transfer of any Security, the Company, the Trustee, the Paying Agent,
         the Registrar or any co-registrar may deem and treat the person in
         whose name a Security is registered as the absolute owner of such
         Security for the purpose of receiving payment of principal of and
         interest on such Security and for all other purposes whatsoever,
         whether or not such Security is overdue, and none of the Company, the
         Trustee, the Paying Agent, the Registrar or any co-registrar shall be
         affected by notice to the contrary.

                  (v) All Securities issued upon any transfer or exchange
         pursuant to the terms of this Indenture shall evidence the same debt
         and shall be entitled to the same benefits under this Indenture as the
         Securities surrendered upon such transfer or exchange.

                  (h) No Obligation of the Trustee.

                  (i) The Trustee shall have no responsibility or obligation to
         any beneficial owner of a Global Security, a member of, or a
         participant in the Depository or other Person with respect to the
         accuracy of the records of the Depository or its nominee or of any
         participant or member thereof, with respect to any ownership interest
         in the Securities or with respect to the delivery to any participant,
         member, beneficial owner or other Person (other than the Depository) of
         any notice (including any notice of redemption) or the payment of any
         amount, under or with respect to such Securities. All notices and
         communications to be given to the Holders and all payments to be made
         to Holders under the Securities shall be given or made only to or upon
         the order of the registered Holders (which shall be the Depository or
         its nominee in the case of a Global Security). The rights of beneficial
         owners in any Global Security shall be exercised only through the
         Depository subject to the applicable rules and procedures of the
         Depository. The Trustee may rely and shall be fully protected in
         relying upon information furnished by the Depository with respect to
         its members, participants and any beneficial owners.

<PAGE>
                                                                              13

                  (ii) The Trustee shall have no obligation or duty to monitor,
         determine or inquire as to compliance with any restrictions on transfer
         imposed under this Indenture or under applicable law with respect to
         any transfer of any interest in any Security (including any transfers
         between or among Depository participants, members or beneficial owners
         in any Global Security) other than to require delivery of such
         certificates and other documentation or evidence as are expressly
         required by, and to do so if and when expressly required by, the terms
         of this Indenture, and to examine the same to determine substantial
         compliance as to form with the express requirements hereof.

         2.4 Certificated Securities

                  (a) A Global Security deposited with the Depository or with
the Trustee as Securities Custodian for the Depository pursuant to Section 2.1
shall be transferred to the beneficial owners thereof in the form of Definitive
Securities in an aggregate principal amount equal to the principal amount of
such Global Security, in exchange for such Global Security, only if such
transfer complies with Section 2.3 hereof and (i) the Depository notifies the
Company that it is unwilling or unable to continue as Depository for such Global
Security and the Depository fails to appoint a successor depositary or if at any
time such Depository ceases to be a "clearing agency" registered under the
Exchange Act and, in either case, a successor Depository is not appointed by the
Company within 90 days of such notice, or (ii) an Event of Default has occurred
and is continuing or (iii) the Company, in its sole discretion, notifies the
Trustee in writing that it elects to cause the issuance of Definitive Securities
under this Indenture.

                  (b) Any Global Security that is transferable to the beneficial
owners thereof pursuant to this Section shall be surrendered by the Depository
to the Trustee located at its principal corporate trust office in the Borough of
Manhattan, The City of New York, to be so transferred, in whole or from time to
time in part, without charge, and the Trustee shall authenticate and deliver,
upon such transfer of each portion of such Global Security, an equal aggregate
principal amount of Definitive Securities of authorized denominations. Any
portion of a Global Security transferred pursuant to this Section shall be
executed, authenticated and delivered only in denominations of $1,000 principal
amount and any integral multiple thereof and registered in such names as

<PAGE>
                                                                              14

the Depository shall direct. Any Definitive Security delivered in exchange for
an interest in the Transfer Restricted Security shall, except as otherwise
provided by Section 2.3(e) hereof, bear the restricted securities legend set
forth in Exhibit 1 hereto.

                  (c) Subject to the provisions of Section 2.4(b) hereof, the
registered Holder of a Global Security shall be entitled to grant proxies and
otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action which a Holder is
entitled to take under this Indenture or the Securities.

                  (d) In the event of the occurrence of one of the events
specified in Section 2.4(a) hereof, the Company shall promptly make available to
the Trustee a reasonable supply of Definitive Securities in definitive, fully
registered form without interest coupons.

<PAGE>
                                                                       EXHIBIT 1
                                                                              to
                                             RULE 144A/REGULATION S/IAI APPENDIX

                           [FORM OF FACE OF SECURITY]

                           [Global Securities Legend]

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

                  [[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER
THE COMMENCEMENT OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE
UNITED STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE
OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

                         [Restricted Securities Legend]

                  THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND THIS SECURITY MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY
NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

                  THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE
COMPANY THAT (A) THIS SECURITY MAY BE

<PAGE>
                                                                               2

OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II)
WITHIN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) TO AN "ACCREDITED
INVESTOR" WITHIN THE MEANING OF RULE 501(a)(1),(2),(3) OR (7) UNDER THE
SECURITIES ACT THAT IS AN INSTITUTIONAL INVESTOR ACQUIRING THE SECURITIES FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR,
IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION
WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (IV) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (V) PURSUANT TO EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I)
THROUGH (VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES AND OTHER JURISDICTIONS, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT
OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

                 [Temporary Regulation S Global Security Legend]

                  EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN
THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOT BE EXCHANGEABLE FOR
INTERESTS IN THE PERMANENT REGULATION S GLOBAL SECURITY OR ANY OTHER SECURITY
REPRESENTING AN INTEREST IN THE SECURITIES REPRESENTED HEREBY WHICH DO NOT
CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF
THE "40-DAY DISTRIBUTION COMPLIANCE PERIOD" (WITHIN THE MEANING OF RULE
903(b)(2) OF REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON
CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH
BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO
PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION
UNDER THE SECURITIES ACT. DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD,
BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY
MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED THROUGH EUROCLEAR BANK S.A./N.A., AS
OPERATOR OF THE EUROCLEAR SYSTEM OR CLEARSTREAM BANKING, SOCIETE ANONYME AND
ONLY (I) TO THE COMPANY, (II) WITHIN THE UNITED STATES TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER

<PAGE>
                                                                               3

(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (III) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF RULE 501(a)(1),(2),(3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
INSTITUTIONAL INVESTOR ACQUIRING THE SECURITIES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, (IV) OUTSIDE THE UNITED STATES IN A TRANSACTION
IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (V)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES AND OTHER JURISDICTIONS. HOLDERS OF INTERESTS
IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOTIFY ANY PURCHASER OF THIS
SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

                  BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
SECURITY MAY BE EXCHANGED FOR INTERESTS IN A RULE 144A GLOBAL SECURITY ONLY IF
(1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN
COMPLIANCE WITH RULE 144A AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL
SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM
ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL
SECURITY IS BEING TRANSFERRED (A) TO A PERSON WHO THE TRANSFEROR REASONABLY
BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A,
(B) TO A PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF
THE UNITED STATES AND OTHER JURISDICTIONS.

                  BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
SECURITY MAY BE EXCHANGED FOR INTERESTS IN AN IAI GLOBAL SECURITY ONLY IF (1)
SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN
COMPLIANCE WITH AN EXEMPTION UNDER THE SECURITIES ACT AND (2) THE TRANSFEROR OF
THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN
CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE
REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO AN "ACCREDITED
INVESTOR" WITHIN THE MEANING OF RULE 501(a)(1),(2),(3) OR (7) UNDER THE
SECURITIES ACT THAT IS AN INSTITUTIONAL INVESTOR

<PAGE>
                                                                               4

ACQUIRING THE SECURITIES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF
THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR
FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE
STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

                  BENEFICIAL INTERESTS IN A RULE 144A GLOBAL SECURITY OR AN IAI
GLOBAL SECURITY MAY BE TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF
AN INTEREST IN THE REGULATION S GLOBAL SECURITY, WHETHER BEFORE OR AFTER THE
EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR
FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO
THIS CERTIFICATE) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE
WITH RULE 903 OR 904 OF REGULATION S, RULE 144 (IF AVAILABLE) OR ANOTHER
APPLICABLE EXEMPTION UNDER THE SECURITIES ACT (IF AVAILABLE) AND THAT, IF SUCH
TRANSFER OCCURS PRIOR TO THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE
PERIOD, THE INTEREST TRANSFERRED WILL BE HELD IMMEDIATELY THEREAFTER THROUGH
EUROCLEAR BANK S.A./N.A. OR CLEARSTREAM BANKING SOCIETE ANONYME.

                         [Definitive Securities Legend]

                  IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO
THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH
THE FOREGOING RESTRICTIONS.

<PAGE>
                                                                               5

                                                                     CUSIP _____
No. _____________                                                    $__________

                13% Senior Subordinated Pay-In-Kind Note Due 2013

                  Brand Intermediate Holdings, Inc., a Delaware corporation,
promises to pay to           , or registered assigns, the principal sum of
                Dollars on October 15, 2013.

                  Interest Payment Dates: April 15 and October 15.

                  Record Dates: April 1 and October 1.

<PAGE>
                                                                               6

                  Additional provisions of this Security are set forth on the
other side of this Security.

Dated:

                                       BRAND INTERMEDIATE
                                       HOLDINGS, INC.

                                            by
                                               ---------------------------------
                                               Name:
                                               Title:

                                            by
                                               ---------------------------------
                                               Name:
                                               Title:

<PAGE>
                                                                               7

TRUSTEE'S CERTIFICATE OF
         AUTHENTICATION

THE BANK OF NEW YORK TRUST COMPANY OF FLORIDA, N.A.
  as Trustee, certifies
           that this is one of
           the Securities referred
           to in the Indenture.

by
   -------------------------------
        Authorized Signatory

<PAGE>
                                                                               8

                       [FORM OF REVERSE SIDE OF SECURITY]

                13% Senior Subordinated Pay-In-Kind Note Due 2013

1. Interest

                  Brand Intermediate Holdings, Inc., a Delaware corporation
(such corporation, and its successors and assigns under the Indenture
hereinafter referred to, being herein called the "Company"), promises to pay
interest on the principal amount of this Security at the rate per annum shown
above. The Company will pay interest semiannually on April 15 and October of
each year, commencing April 15, 2003.

                  The Company may, at its option, in lieu of payment of interest
in cash on the Securities, pay interest on the Securities through the issuance
of PIK Securities in an aggregate principal amount equal to the amount of
interest (rounded to the nearest whole cent) that would be payable with respect
to the Securities if such interest were paid in cash; provided, however, that on
the interest payment dates occurring after the fifth anniversary of the issuance
of the Securities, the Company shall pay interest on the Securities in cash to
the extent that dividends, distributions and other restricted payments from
Brand Services and its restricted subsidiaries could have been made, whether or
not actually made, at any time during the interest payment period immediately
preceding the applicable interest payment date in accordance with the
limitations in the covenants governing dividends, distributions and other
restricted payments contained in (a) Section 4.04 of the Indenture, dated as of
October 16, 2002, among Brand Services, the Company, the subsidiary guarantors
listed on the signature pages thereto and The Bank of New York Trust Company of
Florida, N.A., as trustee (the "Brand Indenture"), and (b) the Credit Agreement,
dated as of October 16, 2002, among Brand Services, certain of its subsidiaries,
the Company, the lenders referred to therein, Credit Suisse First Boston, as
Administrative Agent, and JPMorgan Chase Bank, as Syndication Agent, and
permitted refinancing thereof (other than such dividends, distributions or other
restricted payments that could be or have been made to the Company pursuant to
clauses (4),(5) and (6) of Section 4.04(b) of the Brand Indenture. On each
interest payment date on which the Company elects to pay interest in the form of
PIK

<PAGE>
                                                                               9

Securities, the Trustee will, at the Company's request, authenticate and deliver
PIK Securities for original issuance to the holders of the Securities on the
relevant record date, as shown by the records of the Register, in the aggregate
principal amount required to pay such interest. Any PIK Securities so issued
will be dated the applicable interest payment date, will bear interest from and
after such date, will mature on October 15, 2013 and will be governed by, and
subject to the terms, provisions and conditions of, the Indenture and will have
the same rights and benefits as the Securities. Any PIK Securities will be
issued with the designation "PIK" on the face of such PIK Securities.

                  Interest on the Securities will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from
October 16, 2002. Interest on overdue principal will be paid by the Issuer at 1%
per annum in excess of the rate shown above and the Issuer will pay interest on
overdue installments of interest at such higher rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

2. Method of Payment

                  The Company will pay interest on the Securities (except
defaulted interest) to the Persons who are registered holders of Securities at
the close of business on the April 1 or October 1 next preceding the interest
payment date even if Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying
Agent to collect principal payments. The Company will pay principal and interest
in money of the United States that at the time of payment is legal tender for
payment of public and private debts. Payments in respect of the Securities
represented by a Global Security (including principal, premium, if any, and
interest) will be made by wire transfer of immediately available funds to the
accounts specified by The Depository Trust Company. The Company will make all
payments in respect of a certificated Security (including principal, premium, if
any, and interest) by mailing a check to the registered address of each Holder
thereof; provided, however, that payments on a certificated Security will be
made by wire transfer to a U.S. dollar account maintained by the payee with a
bank in the United States if such Holder elects payment by wire transfer by
giving written notice to the Trustee or the Paying Agent to such effect
designating

<PAGE>
                                                                              10

such account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar

                  Initially, The Bank of New York Trust Company of Florida,
N.A., a National Association (the "Trustee"), will act as Paying Agent and
Registrar. The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice. The Company or any of its domestically incorporated
Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4. Indenture

                  The Company issued the Securities under an Indenture, dated as
of October 16 2002 ("Indenture"), among the Company and the Trustee. The terms
of the Securities include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
Section 77aaa-77bbbb) as in effect on the date of the Indenture (the "Act").
Terms defined in the Indenture and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms.

                  The Securities are general unsecured obligations of the
Company. The Securities issued on the Issue Date and any PIK Securities will be
treated as a single class for all purposes under the Indenture. The Indenture
contains covenants that limit the ability of the Company and its subsidiaries to
incur additional indebtedness; pay dividends or distributions on, or redeem or
repurchase capital stock; make investments; issue or sell capital stock of
subsidiaries; engage in transactions with affiliates; transfer or sell assets;
guarantee indebtedness; change their line of business; restrict dividends or
other payments of subsidiaries; consolidate, merge or transfer all or
substantially all of its assets and the assets of its subsidiaries. These
covenants are subject to important exceptions and qualifications.

<PAGE>
                                                                              11

5. Optional Redemption

                  Except as set forth below, the Company shall not be entitled
to redeem the Securities at its option prior to October 15, 2007.

                  On and after October 15, 2007, the Company shall be entitled
at its option to redeem all or a portion of the Securities upon not less than 30
nor more than 60 days' notice, at the redemption prices (expressed in
percentages of principal amount on the redemption date), plus accrued interest
to the redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date), if redeemed during the 12-month period commencing on October 15 of the
years set forth below:

<Table>
<Caption>
                                                     Redemption
                  Period                               Price
                  ------                             ----------
<S>                                                  <C>
                  2007                                106.500%
                  2008                                104.333
                  2009                                102.167
                  2010 and thereafter                 100.000%
</Table>

                  In addition, prior to October 15, 2005, the Company shall be
entitled at its option on one or more occasions to redeem Securities (which
includes PIK Securities, if any) in an aggregate principal amount not to exceed
35% of the aggregate principal amount of the Securities (which includes PIK
Securities, if any) originally issued at a redemption price (expressed as a
percentage of principal amount) of 113%, plus accrued and unpaid interest to the
redemption date, with the net cash proceeds from one or more Public Equity
Offerings; provided, however, that (1) at least 65% of such aggregate principal
amount of Securities (which includes PIK Securities, if any) remains outstanding
immediately after the occurrence of each such redemption (other than Securities
held, directly or indirectly, by the Company or its Affiliates); and (2) each
such redemption occurs within 60 days after the date of the related Public
Equity Offering.

6. Notice of Redemption

                  Notice of redemption will be mailed at least 30 days but not
more than 60 days before the redemption date to each Holder of Securities to be
redeemed at its registered address. Securities in denominations larger than
$1,000 principal amount may be redeemed in part but only in whole multiples of
$1,000. Securities in

<PAGE>
                                                                              12

denominations of $1,000 principal amount or less may be redeemed in whole but
not in part. If money sufficient to pay the redemption price of and accrued
interest on all Securities (or portions thereof) to be redeemed on the
redemption date is deposited with the Paying Agent on or before the redemption
date and certain other conditions are satisfied, on and after such date interest
ceases to accrue on such Securities (or such portions thereof) called for
redemption.

7. Put Provisions

                  Upon a Change of Control, any Holder of Securities will have
the right to cause the Company to repurchase all of the Securities of such
Holder at a repurchase price equal to 101% of the principal amount of the
Securities to be repurchased plus accrued interest to the date of repurchase
(subject to the right of holders of record on the relevant record date to
receive interest due on the related interest payment date) as provided in, and
subject to the terms of, the Indenture.

8. Subordination

                  The Securities are subordinated to Senior Indebtedness of the
Company, as defined in the Indenture. To the extent provided in the Indenture,
Senior Indebtedness of the Company must be paid before the Securities may be
paid. The Company agrees, and each Securityholder by accepting a Security
agrees, to the subordination provisions contained in the Indenture and
authorizes the Trustee to give it effect and appoints the Trustee as
attorney-in-fact for such purpose.

9. Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of $1,000 principal amount and whole multiples of $1,000. A Holder
may transfer or exchange Securities in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law
or permitted by the Indenture. The Registrar need not register the transfer or
exchange of any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed)
or any Securities for a

<PAGE>
                                                                              13

period of 15 days before a selection of Securities to be redeemed or 15 days
before an interest payment date.

10. Persons Deemed Owners

                  The registered Holder of this Security may be treated as the
owner of it for all purposes.

11. Unclaimed Money

                  If money for the payment of principal or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to
the Company at its request unless an abandoned property law designates another
Person. After any such payment, Holders entitled to the money must look only to
the Company and not to the Trustee for payment.

12. Discharge and Defeasance

                  Subject to certain conditions, the Company at any time shall
be entitled to terminate some or all of its obligations under the Securities and
the Indenture if the Company deposits with the Trustee money or U.S. Government
Obligations for the payment of principal and interest on the Securities to
redemption or maturity, as the case may be.

13. Amendment; Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture and the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the Securities
and (ii) any default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal amount outstanding of
the Securities. Subject to certain exceptions set forth in the Indenture,
without the consent of any Securityholder, the Company and the Trustee shall be
entitled to amend the Indenture or the Securities to cure any ambiguity,
omission, defect or inconsistency, or to comply with Article 5 of the Indenture,
or to provide for uncertificated Securities in addition to or in place of
certificated Securities, or to add

<PAGE>
                                                                              14

guarantees with respect to the Securities, including Subsidiary Guaranties, or
to secure the Securities, or to add additional covenants or surrender rights and
powers conferred on the Company, or to comply with any request of the SEC in
connection with qualifying the Indenture under the Act, or to make certain
changes in the subordination provisions, or to make any change that does not
adversely affect the rights of any Securityholder.

14. Defaults and Remedies

                  Under the Indenture, Events of Default include (i) default for
30 days in payment of interest on the Securities; (ii) default in payment of
principal on the Securities at maturity, upon redemption pursuant to paragraph 5
of the Securities, upon acceleration or otherwise, or failure by the Company to
redeem or purchase Securities when required; (iii) failure by the Company, Brand
Services or any Restricted Subsidiary to comply with other agreements in the
Indenture or the Securities, in certain cases subject to notice and lapse of
time; (iv) certain accelerations (including failure to pay within any grace
period after final maturity) of other Indebtedness of the Company, Brand
Services or any Significant Subsidiary if the amount accelerated (or so unpaid)
exceeds $12.0 million; (v) certain events of bankruptcy or insolvency with
respect to the Company, Brand Services and the Significant Subsidiaries; and
(vi) certain judgments or decrees for the payment of money in excess of $12.0
million. If an Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the Securities may declare all
the Securities to be due and payable immediately. Certain events of bankruptcy
or insolvency are Events of Default which will result in the Securities being
due and payable immediately upon the occurrence of such Events of Default.

                  Securityholders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may refuse to
enforce the Indenture or the Securities unless it receives indemnity or security
satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Securityholders notice of any
continuing Default (except a Default in payment of principal or interest) if it
determines that withholding notice is not opposed to the interest of the
Holders.

<PAGE>
                                                                              15

15. Trustee Dealings with the Company

                  Subject to certain limitations imposed by the Act, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

16. No Recourse Against Others

                  A director, officer, employee or stockholder, as such, of the
Company or the Trustee shall not have any liability for any obligations of the
Company under the Securities or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a
Security, each Securityholder waives and releases all such liability. The waiver
and release are part of the consideration for the issue of the Securities.

17. Authentication

                  This Security shall not be valid until an authorized signatory
of the Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

18. Abbreviations

                  Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

19. CUSIP Numbers

                  Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures the Company has caused CUSIP numbers
to be printed on the Securities and has directed the Trustee to use CUSIP
numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the

<PAGE>
                                                                              16

accuracy of such numbers either as printed on the Securities or as contained in
any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

20. Governing Law.

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

                  The Company will furnish to any Securityholder upon written
request and without charge to the Securityholder a copy of the Indenture which
has in it the text of this Security in larger type. Requests may be made to:

         Brand Intermediate Holdings, Inc.
         15450 South Outer Highway 40
         Suite 270
         Chesterfield, Mo. 63017
         Attention: Jeffrey W. Peterson

<PAGE>
                                                                              17

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

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

         (Print or type assignee's name, address and zip code)

         (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint                           agent to transfer this
Security on the books of the Company. The agent may substitute another to act
for him.

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

Date:                  Your Signature:
      ----------------                 -----------------------------------------

--------------------------------------------------------------------------------
Sign exactly as your name appears on the other side of this Security.

In connection with any transfer of any of the Securities evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act after the later of the date of original issuance
of such Securities and the last date, if any, on which such Securities were
owned by the Company or any Affiliate of the Company, the undersigned confirms
that such Securities are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

         (1)      [ ]      to the Company;

         (2)      [ ]      pursuant to an effective registration statement under
                           the Securities Act of 1933;

<PAGE>
                                                                              18

         (3)      [ ]      inside the United States to a "qualified
                           institutional buyer" (as defined in Rule 144A under
                           the Securities Act of 1933) that purchases for its
                           own account or for the account of a qualified
                           institutional buyer to whom notice is given that such
                           transfer is being made in reliance on Rule 144A, in
                           each case pursuant to and in compliance with Rule
                           144A under the Securities Act of 1933;

         (4)      [ ]      to an "accredited investor" within the meaning of
                           Rule 501(a)(1),(2),(3) or (7) under the Securities
                           Act that is an institutional investor acquiring the
                           securities for its own account or for the account of
                           such an institutional accredited investor, in each
                           case in a minimum principal amount of the securities
                           of $250,000, for investment purposes and not with a
                           view to or for offer or sale in connection with any
                           distribution in violation of the Securities Act;

         (5)      [ ]      outside the United States in an offshore transaction
                           within the meaning of Regulation S under the
                           Securities Act in compliance with Rule 904 under the
                           Securities Act of 1933; or

         (6)      [ ]      pursuant to the exemption from registration provided
                           by Rule 144 under the Securities Act of 1933.

         Unless one of the boxes is checked, the Trustee will refuse to register
         any of the Securities evidenced by this certificate in the name of any
         person other than the registered holder thereof; provided, however,
         that if box (5 or (6 is checked, the Trustee shall be entitled to
         require, prior to registering any such transfer of the Securities, such
         legal opinions, certifications and other information as the Company has
         reasonably requested to confirm that such transfer is being made
         pursuant to an exemption from, or in a transaction not subject to, the
         registration requirements of the Securities Act of 1933, such as the
         exemption provided by Rule 144 under such Act.

<PAGE>
                                                                              19

                                                 -------------------------------
                                                            Signature

Signature Guarantee:

-----------------------------                    -------------------------------
Signature must be guaranteed                                Signature

         Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

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

              TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

                  The undersigned represents and warrants that it is purchasing
this Security for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a
"qualified institutional buyer" within the meaning of Rule 144A under the
Securities Act of 1933, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Dated:
       -----------------               -----------------------------------------
                                       NOTICE: To be executed by an executive
                                               officer

<PAGE>
                                                                              20

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The following increases or decreases in this Global Security
have been made:

<Table>
<Caption>
                                                                       Principal amount     Signature of
                         Amount of decrease     Amount of increase     of this Global       authorized officer
                         in Principal           in Principal           Security following   of Trustee or
Date of                  amount of this         amount of this         such decrease or     Securities
Exchange                 Global Security        Global Security        increase)            Custodian
--------                 ------------------     ------------------     ------------------   ------------------
<S>                      <C>                    <C>                    <C>                  <C>

</Table>

<PAGE>
                                                                              21

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Security purchased by the
Company pursuant to Section 4.06 or 4.09 of the Indenture, check the box:

                                      [ ]

                  If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 4.06 or 4.09 of the Indenture,
state the amount in principal amount: $__________

Date:                                  Your Signature:
      ------------------                               -------------------------
                                                       (Sign exactly as your
                                                       name appears on the other
                                                       side of this Security.)

Signature Guarantee:
                     -----------------------------------------------------------
                                    (Signature must be guaranteed)

         Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.<PAGE>
                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

                                CREDIT AGREEMENT

                          DATED AS OF OCTOBER 16, 2002

                                      AMONG

                              BRAND SERVICES, INC.,
                                  AS BORROWER,

                           THE LENDERS LISTED HEREIN,
                                   AS LENDERS,

                           CREDIT SUISSE FIRST BOSTON,
                            AS ADMINISTRATIVE AGENT,

                              JP MORGAN CHASE BANK,
                              AS SYNDICATION AGENT,

      ANTARES CAPITAL CORPORATION AND GENERAL ELECTRIC CAPITAL CORPORATION,
                           AS CO-DOCUMENTATION AGENTS,

                                       AND

           CREDIT SUISSE FIRST BOSTON AND J.P. MORGAN SECURITIES INC.,
                                 AS CO-ARRANGERS

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                           Page No.
                                                                                                           --------
<S>                                                                                                        <C>

Section 1.            DEFINITIONS................................................................................2

         1.1      Certain Defined Terms..........................................................................2

         1.2      Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement............33

         1.3      Other Definitional Provisions and Rules of Construction.......................................33

Section 2.            AMOUNTS AND TERMS OF COMMITMENTS AND LOANS................................................33

         2.1      Commitments; Making of Loans; the Register; Notes.............................................33

         2.2      Interest on the Loans.........................................................................42

         2.3      Fees..........................................................................................47

         2.4      Repayments, Prepayments and Reductions in Revolving Loan Commitments; General
                  Provisions Regarding Payments; Application of Proceeds of Collateral and Payments
                  Under Guaranties..............................................................................48

         2.5      Use of Proceeds...............................................................................57

         2.6      Special Provisions Governing LIBOR Rate Loans.................................................57

         2.7      Increased Costs; Taxes; Capital Adequacy......................................................59

         2.8      Statement of Lenders; Obligation of Lenders and Issuing Lenders to Mitigate...................63

         2.9      Replacement of a Lender.......................................................................64

Section 3.            LETTERS OF CREDIT.........................................................................65

         3.1      Issuance of Letters of Credit and Lenders' Purchase of Participations Therein.................65

         3.2      Letter of Credit Fees.........................................................................69

         3.3      Drawings and Reimbursement of Amounts Paid Under Letters of Credit............................70

         3.4      Obligations Absolute..........................................................................74

         3.5      Nature of Issuing Lenders' Duties.............................................................75

Section 4.            CONDITIONS TO LOANS AND LETTERS OF CREDIT.................................................76

         4.1      Conditions to Initial Loans...................................................................76

         4.2      Conditions to Supplemental Term Loans.........................................................83

         4.3      Conditions to All Loans.......................................................................83

         4.4      Conditions to Letters of Credit...............................................................84
</Table>

                                       i
<PAGE>

<Table>
<S>                                                                                                        <C>

Section 5.            BORROWER'S REPRESENTATIONS AND WARRANTIES.................................................85

         5.1      Organization, Powers, Qualification, Good Standing, Business and Subsidiaries.................85

         5.2      Authorization of Borrowing, etc...............................................................86

         5.3      Financial Condition...........................................................................87

         5.4      No Material Adverse Change; No Restricted Junior Payments.....................................88

         5.5      Title to Properties; Liens; Real Property; Intellectual Property..............................88

         5.6      Litigation; Adverse Facts.....................................................................89

         5.7      Payment of Taxes..............................................................................89

         5.8      Performance of Agreements; Material Contracts.................................................89

         5.9      Governmental Regulation.......................................................................90

         5.10     Securities Activities.........................................................................90

         5.11     Employee Benefit Plans........................................................................90

         5.12     Certain Fees..................................................................................91

         5.13     Environmental Protection......................................................................91

         5.14     Employee Matters..............................................................................92

         5.15     Solvency......................................................................................92

         5.16     Matters Relating to Collateral................................................................92

         5.17     Disclosure....................................................................................93

         5.18     Subordinated Indebtedness.....................................................................93

         5.19     Related Agreements............................................................................94

Section 6.            BORROWER'S AFFIRMATIVE COVENANTS..........................................................94

         6.1      Financial Statements and Other Reports........................................................94

         6.2      Corporate Existence, etc......................................................................99

         6.3      Payment of Taxes and Claims; Tax Consolidation ..............................................100

         6.4      Maintenance of Properties; Insurance; Application of Net Insurance/ Condemnation
                  Proceeds.....................................................................................100

         6.5      Inspection Rights; Lender Meeting............................................................102

         6.6      Compliance with Laws, etc....................................................................102

         6.7      Environmental Matters........................................................................103

         6.8      Execution of Subsidiary Guaranty and Personal Property Collateral Documents After the
                  Closing Date.................................................................................104

         6.9      Matters Relating to Additional Real Property Collateral......................................105
</Table>

                                       ii
<PAGE>
<Table>
<S>                                                                                                        <C>

Section 7.            BORROWER'S NEGATIVE COVENANTS............................................................106

         7.1      Indebtedness.................................................................................107

         7.2      Liens and Related Matters....................................................................108

         7.3      Investments; Acquisitions....................................................................110

         7.4      Contingent Obligations.......................................................................113

         7.5      Restricted Junior Payments...................................................................113

         7.6      Financial Covenants..........................................................................115

         7.7      Restriction on Fundamental Changes; Asset Sales..............................................116

         7.8      Consolidated Capital Expenditures............................................................117

         7.9      Transactions with Shareholders and Affiliates................................................118

         7.10     Limitations on Sales and Lease-Backs.........................................................118

         7.11     Conduct of Business..........................................................................119

         7.12     Amendments or Waivers of Certain Agreements; Amendments of Documents Relating to
                  Subordinated Indebtedness....................................................................119

         7.13     Fiscal Year..................................................................................120

Section 8.            EVENTS OF DEFAULT........................................................................120

         8.1      Failure to Make Payments When Due............................................................120

         8.2      Default in Other Agreements..................................................................120

         8.3      Breach of Certain Covenants..................................................................120

         8.4      Breach of Warranty...........................................................................121

         8.5      Other Defaults Under Loan Documents..........................................................121

         8.6      Involuntary Bankruptcy; Appointment of Receiver, etc.........................................121

         8.7      Voluntary Bankruptcy; Appointment of Receiver, etc...........................................121

         8.8      Judgments and Attachments....................................................................122

         8.9      Dissolution..................................................................................122

         8.10     Employee Benefit Plans.......................................................................122

         8.11     Change in Control............................................................................122

         8.12     Invalidity of Loan Documents; Failure of Security; Repudiation of Obligations................122

Section 9.            ADMINISTRATIVE AGENT.....................................................................123

         9.1      Appointment..................................................................................123

         9.2      Powers and Duties; General Immunity..........................................................125
</Table>

                                       iii
<PAGE>
<Table>
<S>                                                                                                        <C>

         9.3      Independent Investigation by Lenders; No Responsibility For Appraisal of
                  Creditworthiness.............................................................................126

         9.4      Right to Indemnity...........................................................................126

         9.5      Successor Administrative Agent and Swing Line Lender.........................................127

         9.6      Collateral Documents and Guaranties..........................................................127

         9.7      Duties of Other Agents.......................................................................128

         9.8      Administrative Agent May File Proofs of Claim................................................128

Section 10.           MISCELLANEOUS............................................................................129

         10.1     Successors and Assigns; Assignments and Participations in Loans and Letters of Credit........129

         10.2     Expenses.....................................................................................133

         10.3     Indemnity....................................................................................134

         10.4     Set-Off; Security Interest in Deposit Accounts...............................................135

         10.5     Ratable Sharing..............................................................................136

         10.6     Amendments and Waivers.......................................................................136

         10.7     Independence of Covenants....................................................................138

         10.8     Notices; Effectiveness of Signatures.........................................................138

         10.9     Survival of Representations, Warranties and Agreements.......................................138

         10.10    Failure or Indulgence Not Waiver; Remedies Cumulative........................................139

         10.11    Marshalling; Payments Set Aside..............................................................139

         10.12    Severability.................................................................................139

         10.13    Obligations Several; Independent Nature of Lenders' Rights; Damage Waiver....................139

         10.14    Release of Security Interest or Guaranty.....................................................140

         10.15    Applicable Law...............................................................................140

         10.16    Construction of Agreement; Nature of Relationship............................................140

         10.17    Consent to Jurisdiction and Service of Process...............................................141

         10.18    Waiver of Jury Trial.........................................................................142

         10.19    Confidentiality..............................................................................142

         10.20    Counterparts; Effectiveness..................................................................143

Signature pages ...............................................................................................S-1
</Table>

                                       iv
<PAGE>

                                    EXHIBITS

I                   FORM OF NOTICE OF BORROWING
II                  FORM OF NOTICE OF CONVERSION/CONTINUATION
III                 FORM OF REQUEST FOR ISSUANCE
IV                  FORM OF TERM B NOTE
V                   FORM OF SUPPLEMENTAL TERM NOTE
VI                  FORM OF REVOLVING NOTE
VII                 FORM OF SWING LINE NOTE
VIII                FORM OF LC FACILITY NOTE
IX                  FORM OF COMPLIANCE CERTIFICATE
X                   FORM OF OPINION OF BORROWER COUNSEL
XI                  FORM OF OPINION OF O'MELVENY & MYERS LLP
XII                 FORM OF ASSIGNMENT AGREEMENT
XIII                FORM OF FINANCIAL CONDITION CERTIFICATE
XIV                 FORM OF SUBSIDIARY GUARANTY
XV                  FORM OF SECURITY AGREEMENT
XVI                 FORM OF PARENT GUARANTY
XVII                FORM OF SUPPLEMENTAL TERM LOAN ACCEPTANCE
XVIII               FORM OF COLLATERAL ACCESS AGREEMENT

                                       v
<PAGE>

                                    SCHEDULES

2.1               LENDERS' COMMITMENTS AND PRO RATA SHARES

4.1C              CORPORATE AND CAPITAL STRUCTURE; OWNERSHIP

4.1K              CLOSING DATE ENVIRONMENTAL REPORTS

4.1M              CLOSING DATE MORTGAGED PROPERTIES

5.1               SUBSIDIARIES OF BORROWER

5.5B              REAL PROPERTY

5.5C              INTELLECTUAL PROPERTY

5.6               LITIGATION

5.7               TAXES

5.8               MATERIAL CONTRACTS

5.11              CERTAIN EMPLOYEE BENEFIT PLANS

5.13              ENVIRONMENTAL MATTERS

7.1               CERTAIN EXISTING INDEBTEDNESS

7.2               CERTAIN EXISTING LIENS

7.3               CERTAIN EXISTING INVESTMENTS

7.4               CERTAIN CONTINGENT OBLIGATIONS

                                       vi
<PAGE>

                              BRAND SERVICES, INC.

                                CREDIT AGREEMENT

                  This CREDIT AGREEMENT is dated as of October 16, 2002 and
entered into by and among BRAND SERVICES, INC., a Delaware corporation
("BORROWER"), THE FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE PAGES HEREOF
(each individually referred to herein as a "LENDER" and collectively as
"LENDERS"), JPMORGAN CHASE BANK ("JPMCB"), as syndication agent for Lenders (in
such capacity, "SYNDICATION AGENT"), CREDIT SUISSE FIRST BOSTON ("CSFB"), as
administrative agent for Lenders (in such capacity, "ADMINISTRATIVE AGENT") and,
together with J.P. MORGAN SECURITIES INC. ("JPMSI"), joint lead arranger and
book manager (collectively with JPMSI, in such capacity, the "CO-ARRANGERS"),
and ANTARES CAPITAL CORPORATION and GENERAL ELECTRIC CAPITAL CORPORATION, as
co-documentation agents for Lenders (collectively, in such capacity,
"CO-DOCUMENTATION AGENTS").

                                    RECITALS

                  WHEREAS, Holdings (this and other capitalized terms used in
these recitals without definition being used as defined in subsection 1.1) and
its direct wholly-owned Subsidiary, Merger Sub, have been formed by J.P. Morgan
Partners, certain of its affiliates and certain other investors, in each case
existing on the Closing Date (the "EQUITY INVESTORS") for the purpose of
acquiring all of the outstanding shares of capital stock of Borrower;

                  WHEREAS, on or before the Closing Date, Holdings will own all
of the outstanding shares of capital stock of Merger Sub;

                  WHEREAS, on the Closing Date, Merger Sub will be merged with
and into Parent (the "MERGER") pursuant to the Merger Agreement, with Parent
being the surviving corporation in such Merger;

                  WHEREAS, after giving effect to the Merger, (x) Holdings will
own all of the outstanding shares of capital stock of Parent and (y) Parent will
directly own all of the outstanding shares of capital stock of Borrower;

                  WHEREAS, Lenders, at the request of Borrower, have agreed to
extend up to $200,000,000 of senior secured credit facilities to Borrower
comprised of (i) a term loan facility of up to $130,000,000, the proceeds of
which will be used to (x) fund the Refinancing, (y) finance the Existing
Preferred Stock Purchase and (z) pay Transaction Costs; and (ii) (x) a revolving
loan facility of up to $50,000,000, the proceeds of which will be used to
provide financing for working capital and other general corporate purposes of
Borrower and its Subsidiaries and to provide a portion of the Refinancing on the
Closing Date and (y) a letter of credit facility of up to $20,000,000;

                  WHEREAS, Borrower desires to secure all of the Obligations
hereunder and under the other Loan Documents by granting to Administrative
Agent, on behalf of Lenders, a

<PAGE>

first priority Lien on substantially all of its real, personal and mixed
property, including a pledge of all of the capital stock of its Domestic
Subsidiaries and 65% of the capital stock of its Foreign Subsidiaries; and

                  WHEREAS, Parent and certain Subsidiaries of Borrower have
agreed to guarantee the Obligations hereunder and under the other Loan Documents
and to secure their guaranties by granting to Administrative Agent, on behalf of
Lenders, a first priority Lien on substantially all of their real, personal and
mixed property, including a pledge of all of the capital stock of their Domestic
Subsidiaries and 65% of the capital stock of their Foreign Subsidiaries:

                  NOW, THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, Borrower, Lenders,
Syndication Agent, Co-Documentation Agents, Co-Arrangers and Administrative
Agent agree as follows:

SECTION 1. DEFINITIONS

         1.1      CERTAIN DEFINED TERMS.

                  The following terms used in this Agreement shall have the
following meanings:

                  "ADDITIONAL MORTGAGED PROPERTY" has the meaning assigned to
that term in subsection 6.9.

                  "ADDITIONAL MORTGAGES" has the meaning assigned to that term
in subsection 6.9.

                  "ADDITIONAL COSTS" means, for any period, solely to the extent
deducted in determining Consolidated Net Income for such period, (i) management
fees paid on or before the Closing Date directly or indirectly by Borrower to
DLJ Merchant Banking Partners or any of its Affiliates in respect of periods
ending on or before the Closing Date; (ii) Transaction Costs; (iii) any success
bonuses paid by Borrower to management of Borrower in connection with the
transactions contemplated by the Loan Documents and the Related Agreements to
occur on or before the Closing Date, in each case, to the extent paid in Cash
during the Fiscal Quarter ending December 31, 2002 or March 31, 2003; provided
that the aggregate amount of such success bonuses shall not exceed $5,000,000
and (iv) Severance Costs for such period.

                  "ADJUSTED LIBOR RATE" means, for any Interest Rate
Determination Date with respect to an Interest Period for a LIBOR Rate Loan, the
rate per annum obtained by dividing (i) the offered quotation to first class
banks in the London interbank market by the Reference Lender for U.S. dollar
deposits of amounts in same day funds comparable to the principal amount of the
LIBOR Rate Loan of the Reference Lender for which the Adjusted LIBOR Rate is
then being determined with maturities comparable to such Interest Period as of
approximately 10:00 A.M. (New York City time) on such Interest Rate
Determination Date by (ii) a percentage equal to 100% minus the stated maximum
rate of all reserve requirements (including any marginal, emergency,
supplemental, special or other reserves) applicable on such Interest Rate
Determination Date to any member bank of the Federal Reserve System in respect
of

                                       2
<PAGE>

"Eurocurrency Liabilities" as defined in Regulation D (or any successor category
of liabilities under Regulation D).

                  "ADMINISTRATIVE AGENT" has the meaning assigned to that term
in the introduction to this Agreement and also means and includes any successor
Administrative Agent appointed pursuant to subsection 9.5A.

                  "AFFECTED LENDER" has the meaning assigned to that term in
subsection 2.6C.

                  "AFFECTED LOANS" has the meaning assigned to that term in
subsection 2.6C.

                  "AFFILIATE", as applied to any Person, means any other Person
directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlling", "controlled by" and "under common
control with"), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of that Person, whether through the ownership of voting securities or
by contract or otherwise.

                  "AGENTS" means Administrative Agent, Syndication Agent,
Co-Arrangers, and Co-Documentation Agents.

                  "AGREEMENT" means this Credit Agreement dated as of October
16, 2002, as it may be amended, supplemented or otherwise modified from time to
time.

                  "APPLICABLE CONSOLIDATED LEVERAGE RATIO" means the
Consolidated Leverage Ratio calculated as of the date for which a Pricing
Certificate has been delivered pursuant to subsection 6.1(iv) and such
Applicable Consolidated Leverage Ratio shall remain in effect as set forth in
subsections 2.4B(iii)(c) and 2.4B(iii)(e).

                  "APPROVED FUND" means a Fund that is administered or managed
by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an
Affiliate of an entity that administers or manages a Lender.

                  "ASSET SALE" means the sale by Parent or any of its
Subsidiaries to any Person other than Borrower or any of its wholly-owned
Subsidiaries of (i) any of the stock of any of Parent's Subsidiaries, (ii)
substantially all of the assets of any division or line of business of Borrower
or any of its Subsidiaries, or (iii) any other assets (whether tangible or
intangible) of Borrower or any of its Subsidiaries (other than (a) inventory
sold in the ordinary course of business, (b) damaged or lost rental equipment
sold to customers of Borrower and its Subsidiaries in the ordinary course of
business consistent with past business practices, (c) obsolete or worn out
equipment in an aggregate principal amount not to exceed $5,000,000 in any
Fiscal Year, (d) sales, assignments, transfers or dispositions of accounts in
the ordinary course of business for purposes of collection and (e) any such
other assets to the extent that the aggregate value of such assets sold in any
single transaction or related series of transactions is equal to $500,000 or
less).

                                       3
<PAGE>

                  "ASSIGNMENT AGREEMENT" means an Assignment Agreement in
substantially the form of Exhibit XII annexed hereto.

                  "BANKRUPTCY CODE" means Title 11 of the United States Code
entitled "Bankruptcy", as now and hereafter in effect, or any successor statute.

                  "BASE RATE" means, at any time, the higher of (i) the Prime
Rate or (ii) the rate which is 1/2 of 1% in excess of the Federal Funds
Effective Rate. Any change in the Base Rate due to a change in the Prime Rate or
the Federal Funds Effective Rate shall be effective on the effective date of
such change.

                  "BASE RATE LOANS" means Loans bearing interest at rates
determined by reference to the Base Rate as provided in subsection 2.2A.

                  "BASE RATE MARGIN" means the margin over Base Rate used in
determining the rate of interest on Base Rate Loans pursuant to subsection 2.2A.

                  "BORROWER" has the meaning assigned to that term in the
introduction to this Agreement.

                  "BORROWER CERTIFICATE OF INCORPORATION" means the Certificate
of Incorporation of Borrower, in the form delivered to Administrative Agent and
Lenders prior to the execution of this Agreement and as such Certificate of
Incorporation may be further amended from time to time thereafter to the extent
permitted under subsection 7.12.

                  "BUSINESS DAY" means (i) for all purposes other than as
covered by clause (ii) below, any day excluding Saturday, Sunday and any day
which is a legal holiday under the laws of the State of New York or is a day on
which banking institutions located in such state are authorized or required by
law or other governmental action to close, and (ii) with respect to all notices,
determinations, fundings and payments in connection with the Adjusted LIBOR Rate
or any LIBOR Rate Loans, any day that is a Business Day described in clause (i)
above and that is also a day for trading by and between banks in Dollar deposits
in the London interbank market.

                  "CAPITAL LEASE", as applied to any Person, means any lease of
any property (whether real, personal or mixed) by that Person as lessee that, in
conformity with GAAP, is accounted for as a capital lease on the balance sheet
of that Person.

                  "CAPITAL STOCK" means the capital stock or other equity
interests of a Person.

                  "CASH" means money, currency or a credit balance in a Deposit
Account.

                  "CASH EQUITY CONTRIBUTIONS" has the meaning assigned to that
term in subsection 4.1R.

                  "CASH EQUIVALENTS" means, as at any date of determination, (i)
marketable securities (a) issued or directly and unconditionally guaranteed as
to interest and principal by the United States Government or (b) issued by any
agency of the United States the obligations of

                                       4
<PAGE>

which are backed by the full faith and credit of the United States, in each case
maturing within one year after such date; (ii) marketable direct obligations
issued by any state of the United States of America or any political subdivision
of any such state or any public instrumentality thereof, in each case maturing
within one year after such date and having, at the time of the acquisition
thereof, the highest rating obtainable from either Standard & Poor's ("S&P") or
Moody's Investors Service, Inc. ("MOODY'S"); (iii) commercial paper maturing no
more than nine months from the date of creation thereof, which is issued by (A)
a corporation (other than any Loan Party) organized under the laws of the United
States of America or any state thereof or the District of Columbia and having,
at the time of the acquisition thereof, a rating of at least A-1 from S&P or at
least P-1 from Moody's or (B) any Lender (or its holding company); (iv) time
deposits, certificates of deposit or bankers' acceptances maturing within one
year after such date and issued or accepted by any Lender or by any commercial
bank organized under the laws of the United States of America or any state
thereof or the District of Columbia that (a) is at least "adequately
capitalized" (as defined in the regulations of its primary Federal banking
regulator) and (b) has Tier 1 capital (as defined in such regulations) of not
less than $500,000,000; (v) shares of any money market mutual fund that (a) has
at least 95% of its assets invested continuously in the types of investments
referred to in clauses (i) through (iii) above, (b) has net assets of not less
than $1,000,000,000, and (c) has the highest rating obtainable from either S&P
or Moody's; and (vi) short-term tax-exempt securities rated not lower than
MIG-1/1+ by either Moody's or S&P with provisions for liquidity or maturity
accommodations of 183 days or less and (vii) any interest bearing account in
Canadian dollars maintained with a Schedule A Bank in Canada.

                  "CHANGE IN CONTROL" means any of the following: (i) any Person
acting in concert with one or more other Persons (other than the Existing
Investors) shall have acquired beneficial ownership, directly or indirectly, of
Securities of Holdings (or other Securities convertible into such Securities)
representing more than 50% of the combined voting power of all Securities of
Holdings entitled to vote in the election of members of the Governing Body of
Holdings, other than Securities having such power only by reason of the
happening of a contingency; (ii) (A) prior to an IPO, Holdings shall cease to
beneficially own and control 100% of the issued and outstanding shares of
capital stock of Parent entitled (without regard to the occurrence of any
contingency) to vote for the election of members of the Governing Body of Parent
and, (B) after an IPO, Holdings shall cease to beneficially own and control at
least 35% of the issued and outstanding shares of capital stock of Parent
entitled (without regard to the occurrence of any contingency) to vote for the
election of members of the Governing Body of Parent; (iii) the occurrence of a
change in the composition of the Governing Body of Parent or Borrower such that
a majority of the members of any such Governing Body are not Continuing
Directors; (iv) the failure at any time of Parent to legally and beneficially
own and control 100% of the issued and outstanding shares of capital stock of
Borrower (other than the Existing Preferred Stock) or the failure at any time of
Parent to have the ability to elect all of the Governing Body of Borrower and
(v) the occurrence of any "Change of Control" as defined in the Senior
Subordinated Note Indenture or the Parent Junior Subordinated Note Indenture. As
used herein, the term "beneficially own" or "beneficial ownership" shall have
the meaning set forth in the Exchange Act and the rules and regulations
promulgated thereunder.

                                       5
<PAGE>

                  "CLASS" means, as applied to Lenders, each of the following
four classes of Lenders: (i) Lenders having Term B Loan Exposure, (ii) Lenders
having Supplemental Term Loan Exposure, if any, (iii) Lenders having Revolving
Loan Exposure, and (iv) Lenders having LC Facility Exposure.

                  "CLOSING DATE" means the date on which the initial Loans are
made.

                  "CLOSING DATE MORTGAGED PROPERTY" has the meaning assigned to
that term in subsection 4.1M.

                  "CLOSING DATE MORTGAGES" has the meaning assigned to that term
in subsection 4.1M.

                  "CO-ARRANGERS" has the meaning assigned to that term in the
introduction to this Agreement.

                  "COLLATERAL" means, collectively, all of the real, personal
and mixed property (including Capital Stock) in which Liens are purported to be
granted pursuant to the Collateral Documents as security for the Obligations.

                  "COLLATERAL ACCESS AGREEMENT" means any landlord waiver,
mortgagee waiver, bailee letter or any similar acknowledgement or agreement of
any landlord or mortgagee in respect of any Real Property Asset where any
Collateral is located or any warehouseman or processor in possession of any
inventory or equipment of any Loan Party, substantially in the form of Exhibit
XVIII annexed hereto, with such changes as may be agreed by Borrower and
Administrative Agent in the reasonable exercise of its discretion.

                  "COLLATERAL ACCOUNT" has the meaning assigned to that term in
the Security Agreement.

                  "COLLATERAL DOCUMENTS" means the Security Agreement, the
Mortgages and all other instruments or documents delivered by any Loan Party
pursuant to this Agreement or any of the other Loan Documents in order to grant
to Administrative Agent, on behalf of Lenders, a Lien on any real, personal or
mixed property of that Loan Party as security for the Obligations.

                  "COMMERCIAL LETTER OF CREDIT" means any letter of credit or
similar instrument issued for the purpose of providing the primary payment
mechanism in connection with the purchase of any materials, goods or services by
Borrower or any of its Subsidiaries in the ordinary course of business of
Borrower or such Subsidiary.

                  "COMMITMENTS" means the commitments of Lenders to make Loans
as set forth in subsection 2.1A and subsection 3.3.

                  "COMPLIANCE CERTIFICATE" means a certificate substantially in
the form of Exhibit IX annexed hereto.

                                       6
<PAGE>

                  "CONSOLIDATED CAPITAL EXPENDITURES" means, for any period, the
sum of the aggregate of all expenditures (whether paid in cash or other
consideration or accrued as a liability and including that portion of Capital
Leases which is capitalized on the consolidated balance sheet of Parent and its
Subsidiaries) by Parent and its Subsidiaries during that period that, in
conformity with GAAP, are included in "additions to property, plant or
equipment" or comparable items reflected in the consolidated statement of cash
flows of Parent and its Subsidiaries. For purposes of this definition, the
purchase price of equipment that is purchased simultaneously with the trade-in
of existing equipment or with insurance proceeds shall be included in
Consolidated Capital Expenditures only to the extent of the gross amount of such
purchase price less the credit granted by the seller of such equipment for the
equipment being traded in at such time or the amount of such proceeds, as the
case may be; provided, that Consolidated Capital Expenditures shall not include
Investments made under subsection 7.3(xi).

                  "CONSOLIDATED CASH INTEREST EXPENSE" means, for any period,
Consolidated Interest Expense for such period excluding, however, any interest
expense not payable in Cash (including amortization of discount and amortization
of debt issuance costs).

                  "CONSOLIDATED CURRENT ASSETS" means, as at any date of
determination, the total assets of Parent and its Subsidiaries on a consolidated
basis which may properly be classified as current assets in conformity with
GAAP, excluding Cash and Cash Equivalents.

                  "CONSOLIDATED CURRENT LIABILITIES" means, as at any date of
determination, the total liabilities of Parent and its Subsidiaries on a
consolidated basis which may properly be classified as current liabilities in
conformity with GAAP.

                  "CONSOLIDATED EBITDA" means, for any period, the sum, without
duplication, of the amounts for such period of (i) Consolidated Net Income, (ii)
Consolidated Interest Expense, (iii) provisions for taxes based on the income of
Parent and its Subsidiaries, (iv) total depreciation expense, (v) total
amortization expense, (vi) any Additional Costs to the extent paid in Cash
during such period, and (vii) other non-cash items (other than any such non-cash
item to the extent it represents an accrual of or reserve for cash expenditures
in any future period), but only, in the case of clauses (ii)-(vii), to the
extent deducted in the calculation of Consolidated Net Income, less other
non-cash items added in the calculation of Consolidated Net Income (other than
any such non-cash item to the extent it results in the receipt of cash payments
in any future period), all of the foregoing as determined on a consolidated
basis for Parent and its Subsidiaries in conformity with GAAP.

                  "CONSOLIDATED EXCESS CASH FLOW" means, for any period, an
amount (if positive) equal to (i) the sum, without duplication, of the amounts
for such period of (a) Consolidated EBITDA and (b) the Consolidated Working
Capital Adjustment minus (ii) the sum, without duplication, of the amounts for
such period of (a) voluntary and scheduled repayments of Consolidated Total Debt
(excluding repayments of Revolving Loans except to the extent the Revolving Loan
Commitments are permanently reduced in connection with such repayments), (b)
Consolidated Capital Expenditures (net of any proceeds of any related financings
with respect to such expenditures), (c) Consolidated Cash Interest Expense, (d)
the provision for current taxes based on the income of Parent and its
Subsidiaries and payable in cash with respect

                                       7
<PAGE>

to such period, and (e) to the extent not included in Consolidated Working
Capital Adjustment, (A) any cash consideration paid by Borrower or any of its
Subsidiaries in connection with any Permitted Acquisitions (net of any amount of
Indebtedness incurred or assumed in connection therewith) actually made during
such period and as and to the extent permitted under subsection 7.3(xi) and (B)
Restricted Junior Payments actually made in cash during such period and as and
to the extent permitted under subsection 7.5.

                  "CONSOLIDATED INTEREST EXPENSE" means, for any period, total
interest expense (including that portion attributable to Capital Leases in
accordance with GAAP and capitalized interest) of Parent and its Subsidiaries on
a consolidated basis with respect to all outstanding Indebtedness of Parent and
its Subsidiaries, including all commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers' acceptance
financing, net costs under Interest Rate Agreements and amounts referred to in
subsection 2.3 payable to Administrative Agent and Lenders that is considered
interest expense in accordance with GAAP, but excluding, however, any such
amounts referred to in subsection 2.3 on or before the Closing Date.

                  "CONSOLIDATED LEVERAGE RATIO" means, as at any date, the ratio
of (a) Consolidated Total Debt as at such date to (b) Consolidated EBITDA for
the consecutive four Fiscal Quarters ending on such date.

                  "CONSOLIDATED NET INCOME" means, for any period, the net
income (or loss) of Parent and its Subsidiaries on a consolidated basis for such
period taken as a single accounting period determined in conformity with GAAP;
provided that there shall be excluded (i) the income (or loss) of any Person
(other than a Subsidiary of Borrower) in which any other Person (other than
Borrower or any of its Subsidiaries) has a joint interest, except to the extent
of the amount of dividends or other distributions actually paid to Borrower or
any of its Subsidiaries by such Person during such period, (ii) the income (or
loss) of any Person accrued prior to the date it becomes a Subsidiary of
Borrower or is merged into or consolidated with Borrower or any of its
Subsidiaries or that Person's assets are acquired by Borrower or any of its
Subsidiaries, (iii) the income of any Subsidiary of Borrower to the extent that
the declaration or payment of dividends or similar distributions by that
Subsidiary of that income is not at the time permitted by operation of the terms
of its charter or any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to that Subsidiary, (iv) any
after-tax gains or losses attributable to asset sales or returned surplus assets
of any Pension Plan, and (v) (to the extent not included in clauses (i) through
(iv) above) any net extraordinary gains or net non-cash extraordinary losses.

                  "CONSOLIDATED TOTAL DEBT" means, as at any date of
determination, the aggregate stated balance sheet amount of all Indebtedness of
Parent and its Subsidiaries, determined on a consolidated basis in accordance
with GAAP.

                  "CONSOLIDATED WORKING CAPITAL" means, as at any date of
determination, the excess (or deficit) of Consolidated Current Assets over
Consolidated Current Liabilities.

                                       8
<PAGE>

                  "CONSOLIDATED WORKING CAPITAL ADJUSTMENT" means, for any
period on a consolidated basis, the amount (which may be a negative number) by
which Consolidated Working Capital as of the beginning of such period exceeds
(or is less than) Consolidated Working Capital as of the end of such period.

                  "CONTINGENT OBLIGATION", as applied to any Person, means any
direct or indirect liability, contingent or otherwise, of that Person (i) with
respect to any Indebtedness, lease, dividend or other obligation of another if
the primary purpose or intent thereof by the Person incurring the Contingent
Obligation is to provide assurance to the obligee of such obligation of another
that such obligation of another will be paid or discharged, or that any
agreements relating thereto will be complied with, or that the holders of such
obligation will be protected (in whole or in part) against loss in respect
thereof, (ii) with respect to any letter of credit issued for the account of
that Person or as to which that Person is otherwise liable for reimbursement of
drawings, or (iii) under Hedge Agreements. Contingent Obligations shall include
(a) the direct or indirect guaranty, endorsement (otherwise than for collection
or deposit in the ordinary course of business), co-making, discounting with
recourse or sale with recourse by such Person of the obligation of another, (b)
the obligation to make take-or-pay or similar payments if required regardless of
non-performance by any other party or parties to an agreement, and (c) any
liability of such Person for the obligation of another through any agreement
(contingent or otherwise) (1) to purchase, repurchase or otherwise acquire such
obligation or any security therefor, or to provide funds for the payment or
discharge of such obligation (whether in the form of loans, advances, stock
purchases, capital contributions or otherwise) or (2) to maintain the solvency
or any balance sheet item, level of income or financial condition of another if,
in the case of any agreement described under subclauses (1) or (2) of this
sentence, the primary purpose or intent thereof is as described in the preceding
sentence. The amount of any Contingent Obligation shall be equal to the amount
of the obligation so guaranteed or otherwise supported or, if less, the amount
to which such Contingent Obligation is specifically limited.

                  "CONTINUING DIRECTORS" means as of any date of determination,
any member of the Board of Directors of Parent or Borrower who (i) was a member
of such Board of Directors on the Closing Date or (ii) was nominated for
election or elected to such Board of Directors with the affirmative vote of a
majority of the Continuing Directors who were members of such Board of Directors
at the time of such nomination or election.

                  "CONTRACTUAL OBLIGATION", as applied to any Person, means any
provision of any Security issued by that Person or of any material indenture,
mortgage, deed of trust, contract, undertaking, agreement or other instrument to
which that Person is a party or by which it or any of its properties is bound or
to which it or any of its properties is subject.

                  "CSFB" has the meaning assigned to that term in the
introduction to this Agreement.

                  "CURRENCY AGREEMENT" means any foreign exchange contract,
currency swap agreement, futures contract, option contract, synthetic cap or
other similar agreement or arrangement to which Borrower or any of its
Subsidiaries is a party.

                                       9
<PAGE>

                  "DEPOSIT ACCOUNT" means a demand, time, savings, passbook or
similar account maintained with a Person engaged in the business of banking,
including a savings bank, savings and loan association, credit union or trust
company.

                  "DOLLARS" and the sign "$" mean the lawful money of the United
States of America.

                  "DOMESTIC SUBSIDIARY" means any Subsidiary of Borrower that is
incorporated or organized under the laws of the United States of America, any
state thereof or in the District of Columbia.

                  "ELIGIBLE ASSIGNEE" means (i) any Lender, any Affiliate of any
Lender and any Approved Fund of any Lender; and (ii) (a) a commercial bank
organized under the laws of the United States or any state thereof; (b) a
savings and loan association or savings bank organized under the laws of the
United States or any state thereof; (c) a commercial bank organized under the
laws of any other country or a political subdivision thereof; provided that (1)
such bank is acting through a branch or agency located in the United States or
(2) such bank is organized under the laws of a country that is a member of the
Organization for Economic Cooperation and Development or a political subdivision
of such country; and (d) any other entity that is an "accredited investor" (as
defined in Regulation D under the Securities Act) that extends credit or buys
loans as one of its businesses including insurance companies, mutual funds and
lease financing companies; provided that neither Borrower nor any Affiliate of
Borrower shall be an Eligible Assignee.

                  "EMPLOYEE BENEFIT PLAN" means any "employee benefit plan" as
defined in Section 3(3) of ERISA which is maintained or contributed to by
Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates,
or with respect to which there is any potential outstanding liability of
Borrower.

                  "ENVIRONMENTAL CLAIM" means any investigation, notice, notice
of violation, claim, action, suit, proceeding, demand, abatement order or other
order or directive (conditional or otherwise), by any Government Authority or
any other Person, arising (i) pursuant to or in connection with any actual or
alleged violation of any Environmental Law, (ii) in connection with any
Hazardous Materials or any actual or alleged Hazardous Materials Activity, or
(iii) in connection with any actual or alleged damage, injury, threat or harm to
health, safety, natural resources or the environment.

                  "ENVIRONMENTAL LAWS" means any and all current or future
statutes, ordinances, orders, rules, regulations, guidance documents, judgments,
Governmental Authorizations, or any other requirements of any Government
Authority relating to (i) environmental matters, including those relating to any
Hazardous Materials Activity, (ii) the generation, use, storage, transportation
or disposal of Hazardous Materials, or (iii) occupational safety and health,
industrial hygiene, land use or the protection of human, plant or animal health
or welfare, in any manner applicable to Borrower or any of its Subsidiaries or
any Facility.

                                       10
<PAGE>

                  "EQUITY INVESTORS" has the meaning assigned to that term in
the Recitals to this Agreement.

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

                  "ERISA AFFILIATE", as applied to any Person, means (i) any
corporation that is a member of a controlled group of corporations within the
meaning of Section 414(b) of the Internal Revenue Code of which that Person is a
member; (ii) any trade or business (whether or not incorporated) that is a
member of a group of trades or businesses under common control within the
meaning of Section 414(c) of the Internal Revenue Code of which that Person is a
member; and (iii) any member of an affiliated service group within the meaning
of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any
corporation described in clause (i) above or any trade or business described in
clause (ii) above is a member. Any former ERISA Affiliate of a Person or any of
its Subsidiaries shall continue to be considered an ERISA Affiliate of such
Person or such Subsidiary within the meaning of this definition with respect to
the period such entity was an ERISA Affiliate of such Person or such Subsidiary
and with respect to liabilities arising after such period for which such Person
or such Subsidiary could be liable under the Internal Revenue Code or ERISA.

                  "ERISA EVENT" means (i) a "reportable event" within the
meaning of Section 4043 of ERISA and the regulations issued thereunder with
respect to any Pension Plan (excluding those for which the provision for 30-day
notice to the PBGC has been waived by regulation); (ii) the failure to meet the
minimum funding standard of Section 412 of the Internal Revenue Code with
respect to any Pension Plan (whether or not waived in accordance with Section
412(d) of the Internal Revenue Code) or the failure to make by its due date a
required installment under Section 412(m) of the Internal Revenue Code with
respect to any Pension Plan or the failure to make any required contribution to
a Multiemployer Plan; (iii) the provision by the administrator of any Pension
Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate
such plan in a distress termination described in Section 4041(c) of ERISA; (iv)
the withdrawal by Borrower, any of its Subsidiaries or any of their respective
ERISA Affiliates from any Pension Plan with two or more contributing sponsors or
the termination of any such Pension Plan, in either case which results in
liability pursuant to Section 4063 or 4064 of ERISA; (v) the institution by the
PBGC of proceedings to terminate any Pension Plan, or the occurrence of any
event or condition which might constitute grounds under ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan;
(vi) the imposition of liability on Borrower, any of its Subsidiaries or any of
their respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA
or by reason of the application of Section 4212(c) of ERISA; (vii) the
withdrawal of Borrower, any of its Subsidiaries or any of their respective ERISA
Affiliates in a complete or partial withdrawal (within the meaning of Sections
4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential
withdrawal liability therefor, or the receipt by Borrower, any of its
Subsidiaries or any of their respective ERISA Affiliates of notice from any
Multiemployer Plan that it is in reorganization or insolvency pursuant to
Section 4241 or 4245 of ERISA, or that it intends to terminate or has terminated
under Section 4041A or 4042 of ERISA; (viii) the assertion of a material claim
(other than routine claims for benefits) against any Employee Benefit Plan other
than a Multiemployer

                                       11
<PAGE>

Plan or the assets thereof, or against Borrower, any of its Subsidiaries or any
of their respective ERISA Affiliates in connection with any Employee Benefit
Plan; (ix) receipt from the Internal Revenue Service of notice of the failure of
any Pension Plan (or any other Employee Benefit Plan intended to be qualified
under Section 401(a) of the Internal Revenue Code) to qualify under Section
401(a) of the Internal Revenue Code, or the failure of any trust forming part of
any Pension Plan to qualify for exemption from taxation under Section 501(a) of
the Internal Revenue Code; or (x) the imposition of a Lien pursuant to Section
401(a)(29) or 412(n) of the Internal Revenue Code or pursuant to ERISA with
respect to any Pension Plan.

                  "EVENT OF DEFAULT" means each of the events set forth in
Section 8.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended from time to time, and any successor statute.

                  "EXISTING CREDIT AGREEMENT" means that certain Amended and
Restated Credit Agreement dated as of March 17, 1999 between Borrower, the
various financial institutions party thereto from time to time, DLJ Capital
Funding, Inc., as syndication agent, Bank of America National Trust & Saving
Association, as swing line lender, letter of credit issuer and administrative
agent, as amended, supplemented or otherwise modified to the date hereof.

                  "EXISTING NOTES" means $130.0 million aggregate principal
amount of 10.25% Senior Notes due 2008, issued pursuant to the Existing Notes
Indenture.

                  "EXISTING NOTES INDENTURE" means that certain Indenture dated
as of February 15, 1998, between Borrower, as issuer, and U.S. Trust Company of
Texas, N.A., as trustee, as amended, supplemented or otherwise modified to the
date hereof.

                  "EXISTING PREFERRED STOCK" means 14.50% Senior Exchangeable
Preferred Stock due 2008 of Borrower, par value of $0.01.

                  "EXISTING PREFERRED STOCK PURCHASE" has the meaning assigned
to that term in subsection 2.5A.

                  "FACILITIES" means any and all real property (including all
buildings, fixtures or other improvements located thereon) now, hereafter or
heretofore owned, leased, operated or used by any of the Loan Parties or any of
their respective predecessors or Affiliates.

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

                                       12
<PAGE>

                  "FINANCIAL PLAN" has the meaning assigned to that term in
subsection 6.1(xii).

                  "FIRST PRIORITY" means, with respect to any Lien purported to
be created in any Collateral pursuant to any Collateral Document, that (i) such
Lien is perfected and has priority over any other Lien on such Collateral (other
than Liens permitted pursuant to subsection 7.2) and (ii) such Lien is the only
Lien (other than Liens permitted pursuant to subsection 7.2) to which such
Collateral is subject.

                  "FISCAL QUARTER" means a fiscal quarter of any Fiscal Year.

                  "FISCAL YEAR" means the fiscal year of the Loan Parties ending
on December 31 of each calendar year. For purposes of this Agreement, any
particular Fiscal Year shall be designated by reference to the calendar year in
which such Fiscal Year ends.

                  "FLOOD HAZARD PROPERTY" means a Closing Date Mortgaged
Property or an Additional Mortgaged Property located in an area designated by
the Federal Emergency Management Agency as having special flood or mud slide
hazards.

                  "FOREIGN SUBSIDIARY" means any Subsidiary of Borrower that is
not a Domestic Subsidiary.

                  "FUND" means any Person (other than a natural Person) that is
(or will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its
business.

                  "FUNDING AND PAYMENT OFFICE" means (i) the office of
Administrative Agent and Swing Line Lender located at Eleven Madison Avenue, New
York, New York 10010-3629 or (ii) such other office of Administrative Agent and
Swing Line Lender as may from time to time hereafter be designated as such in a
written notice delivered by Administrative Agent and Swing Line Lender to
Borrower and each Lender.

                  "FUNDING DATE" means the date of the funding of a Loan.

                  "GAAP" means, subject to the limitations on the application
thereof set forth in subsection 1.2, generally accepted accounting principles
set forth in opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession, in each case as the same are applicable to the
circumstances as of the date of determination.

                  "GOVERNING BODY" means the board of directors or other body
having the power to direct or cause the direction of the management and policies
of a Person that is a corporation, partnership, trust or limited liability
company.

                                       13
<PAGE>

                  "GOVERNMENT AUTHORITY" means any political subdivision or
department thereof, any other governmental or regulatory body, commission,
central bank, board, bureau, organ or instrumentality or any court, in each case
whether federal, state, local or foreign.

                  "GOVERNMENTAL AUTHORIZATION" means any permit, license,
registration, authorization, plan, directive, consent, order or consent decree
of or from, or notice to, any Government Authority.

                  "GRANTING LENDER" has the meaning assigned to that term in
subsection 10.1B(iii).

                  "GUARANTIES" means the Parent Guaranty and the Subsidiary
Guaranty.

                  "HAZARDOUS MATERIALS" means (i) any chemical, material or
substance at any time defined as or included in the definition of "hazardous
substances", "hazardous wastes", "hazardous materials", "extremely hazardous
waste", "acutely hazardous waste", "radioactive waste", "biohazardous waste",
"pollutant", "toxic pollutant", "contaminant", "restricted hazardous waste",
"infectious waste", "toxic substances", or any other term or expression intended
to define, list or classify substances by reason of properties harmful to
health, safety or the indoor or outdoor environment (including harmful
properties such as ignitability, corrosivity, reactivity, carcinogenicity,
toxicity, reproductive toxicity, "TCLP toxicity" or "EP toxicity" or words of
similar import under any applicable Environmental Laws); (ii) any oil,
petroleum, petroleum fraction or petroleum derived substance; (iii) any drilling
fluids, produced waters and other wastes associated with the exploration,
development or production of crude oil, natural gas or geothermal resources;
(iv) any flammable substances or explosives; (v) any radioactive materials; (vi)
any asbestos-containing materials; (vii) urea formaldehyde foam insulation;
(viii) electrical equipment which contains any oil or dielectric fluid
containing polychlorinated biphenyls; (ix) pesticides; and (x) any other
chemical, material or substance, exposure to which is prohibited, limited or
regulated by any Government Authority or which may or could pose a hazard to the
health and safety of the owners, occupants or any Persons in the vicinity of any
Facility or to the indoor or outdoor environment.

                  "HAZARDOUS MATERIALS ACTIVITY" means any past, current,
proposed or threatened activity, event or occurrence involving any Hazardous
Materials, including the use, manufacture, possession, storage, holding,
presence, existence, location, Release, threatened Release, discharge,
placement, generation, transportation, processing, construction, treatment,
abatement, removal, remediation, disposal, disposition or handling of any
Hazardous Materials, and any corrective action or response action with respect
to any of the foregoing.

                  "HEDGE AGREEMENT" means an Interest Rate Agreement or a
Currency Agreement designed to hedge against fluctuations in interest rates or
currency values, respectively.

                  "HOLDINGS" means Brand Holdings, LLC, a Delaware limited
liability company.

                                       14
<PAGE>

                  "INDEBTEDNESS", as applied to any Person, means (i) all
indebtedness for borrowed money, (ii) that portion of obligations with respect
to Capital Leases that is properly classified as a liability on a balance sheet
in conformity with GAAP, (iii) notes payable and drafts accepted representing
extensions of credit whether or not representing obligations for borrowed money,
(iv) any obligation owed for all or any part of the deferred purchase price of
property or services (excluding any such obligations incurred under ERISA),
which purchase price is (a) due more than six months from the date of incurrence
of the obligation in respect thereof or (b) evidenced by a note or similar
written instrument, and (v) all indebtedness secured by any Lien on any property
or asset owned or held by that Person regardless of whether the indebtedness
secured thereby shall have been assumed by that Person or is nonrecourse to the
credit of that Person. Obligations under Interest Rate Agreements and Currency
Agreements constitute (1) in the case of Hedge Agreements, Contingent
Obligations, and (2) in all other cases, Investments, and in neither case
constitute Indebtedness.

                  "INDEMNIFIED LIABILITIES" has the meaning assigned to that
term in subsection 10.3.

                  "INDEMNITEE" has the meaning assigned to that term in
subsection 10.3.

                  "INTELLECTUAL PROPERTY" means all patents, trademarks,
tradenames, copyrights, technology, software, know-how and processes used in or
necessary for the conduct of the business of Borrower and its Subsidiaries as
currently conducted that are material to the condition (financial or otherwise),
business or operations of Borrower and its Subsidiaries, taken as a whole.

                  "INTEREST PAYMENT DATE" means (i) with respect to any Base
Rate Loan, the last Business Day of March, June, September and December of each
year, commencing on the first such date to occur after the Closing Date, and
(ii) with respect to any LIBOR Rate Loan, the last day of each Interest Period
applicable to such Loan; provided that in the case of each Interest Period of
longer than three months "Interest Payment Date" shall also include each date
that is three months, or a multiple thereof, after the commencement of such
Interest Period.

                  "INTEREST PERIOD" has the meaning assigned to that term in
subsection 2.2B.

                  "INTEREST RATE AGREEMENT" means any interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement or other
similar agreement or arrangement to which Parent or any of its Subsidiaries is a
party.

                  "INTEREST RATE DETERMINATION DATE", with respect to any
Interest Period, means the second Business Day prior to the first day of such
Interest Period.

                  "INTERNAL REVENUE CODE" means the Internal Revenue Code of
1986, as amended to the date hereof and from time to time hereafter, and any
successor statute.

                  "INVESTMENT" means (i) any direct or indirect purchase or
other acquisition by Parent or any of its Subsidiaries of, or of a beneficial
interest in, any Securities of any other

                                       15
<PAGE>

Person (including any Subsidiary of Borrower), (ii) any direct or indirect
redemption, retirement, purchase or other acquisition for value, by any
Subsidiary of Borrower from any Person other than Borrower or any of its
Subsidiaries, of any equity Securities of such Subsidiary, (iii) any direct or
indirect loan, advance (other than advances to employees for moving,
entertainment and travel expenses, drawing accounts and similar expenditures in
the ordinary course of business) or capital contribution by Parent or any of its
Subsidiaries to any other Person, including all indebtedness and accounts
receivable from that other Person that are not current assets or did not arise
from sales to that other Person in the ordinary course of business, or (iv)
Interest Rate Agreements or Currency Agreements not constituting Hedge
Agreements. The amount of any Investment shall be the original cost of such
Investment plus the cost of all additions thereto, without any adjustments for
increases or decreases in value, or write-ups, write-downs or write-offs with
respect to such Investment (other than adjustments for the repayment of, or the
refund of capital with respect to, the original principal amount of any such
Investment).

                  "IP COLLATERAL" means, collectively, the Intellectual Property
that constitutes Collateral under the Security Agreement.

                  "ISSUING LENDER", means (i) Revolving Issuing Lender and (ii)
LC Facility Issuing Lender.

                  "IPO" means any initial public offering of the common stock of
Parent.

                  "JOINT VENTURE" means a joint venture, partnership or other
similar arrangement, whether in corporate, partnership or other legal form.

                  "LANDLORD CONSENT AND ESTOPPEL", with respect to any Leasehold
Property, means a letter, certificate or other instrument in writing from the
lessor under the related lease, reasonably satisfactory in form and substance to
Administrative Agent, pursuant to which such lessor agrees, for the benefit of
Administrative Agent, (i) that without any further consent of such lessor or any
further action on the part of the Loan Party holding such Leasehold Property,
such Leasehold Property may be encumbered pursuant to a Mortgage and may be
assigned to the purchaser at a foreclosure sale or in a transfer in lieu of such
a sale (and to a subsequent third party assignee if Administrative Agent, any
Lender, or an Affiliate of either so acquires such Leasehold Property), (ii)
that such lessor shall not terminate such lease as a result of a default by such
Loan Party thereunder without first giving Administrative Agent notice of such
default and at least 60 days (or, if such default cannot reasonably be cured by
Administrative Agent within such period, such longer period as may reasonably be
required) to cure such default, (iii) to the matters contained in a Collateral
Access Agreement, and (iv) to such other matters relating to such Leasehold
Property as Administrative Agent may reasonably request.

                  "LC FACILITY CERTIFICATE OF DEPOSIT" has the meaning assigned
to that term in subsection 3.1C.

                  "LC FACILITY COMMITMENT" means the commitment of a LC Facility
Lender to acquire participations in LC Facility Letters of Credit and make LC
Facility Loans pursuant to

                                       16
<PAGE>

subsection 2.1A(v), and "LC Facility Commitments" means such commitments of all
LC Facility Lenders in the aggregate.

                  "LC FACILITY EXPOSURE", with respect to any LC Facility
Lender, means, as of any date of determination (i) prior to the termination of
the LC Facility Commitments, that LC Facility Lender's LC Facility Commitment,
and (ii) after the termination of the LC Facility Commitments, the sum of (a)
the aggregate outstanding principal amount of the LC Facility Loans of that LC
Facility Lender plus (b) in the event that LC Facility Lender is a LC Facility
Issuing Lender, the aggregate LC Facility Letter of Credit Usage in respect of
all LC Facility Letters of Credit issued by that LC Facility Lender (in each
case net of any participations purchased by other LC Facility Lenders in such LC
Facility Letters of Credit or in any unreimbursed drawings thereunder) plus (c)
the aggregate amount of all participations purchased by that LC Facility Lender
in any outstanding LC Facility Letters of Credit or any unreimbursed drawings
under any LC Facility Letters of Credit.

                  "LC FACILITY ISSUING LENDER" means the LC Facility Lender that
agrees or is otherwise obligated to issue such Letter of Credit, determined as
provided in subsection 3.1B.

                  "LC FACILITY LENDER" means a Lender that has a LC Facility
Commitment and/or that has an outstanding LC Facility Loan.

                  "LC FACILITY LETTER OF CREDIT" or "LC FACILITY LETTERS OF
CREDIT" means Standby Letters of Credit issued or to be issued by LC Facility
Issuing Lenders pursuant to subsection 3.1.

                  "LC FACILITY LETTER OF CREDIT REIMBURSEMENT DATE" has the
meaning assigned to that term in subsection 3.3B(ii).

                  "LC FACILITY LETTER OF CREDIT USAGE" means, as at any date of
determination, the sum of (i) the maximum aggregate amount which is or at any
time thereafter may become available for drawing under all LC Facility Letters
of Credit then outstanding plus (ii) the aggregate amount of all drawings under
LC Facility Letters of Credit honored by LC Facility Issuing Lenders and not
theretofore reimbursed by Borrower.

                  "LC FACILITY LOANS" means the loans deemed made by LC Facility
Lenders to Borrower pursuant to subsection 3.3B and subsection 3.3C.

                  "LEASEHOLD PROPERTY" means any leasehold interest of any Loan
Party as lessee under any lease of real property.

                  "LENDER" and "LENDERS" means the Persons identified as
"Lenders" and listed on the signature pages of this Agreement, together with
their successors and permitted assigns pursuant to subsection 10.1, and the term
"Lenders" shall include Swing Line Lender unless the context otherwise requires;
provided that the term "LENDERS", when used in the context of a particular
Commitment, shall mean Lenders having that Commitment.

                                       17
<PAGE>

                  "LETTER OF CREDIT" or "LETTERS OF CREDIT" means (i) Revolving
Letters of Credit and (ii) LC Facility Letters of Credit.

                  "LIBOR RATE LOANS" means Loans bearing interest at rates
determined by reference to the Adjusted LIBOR Rate as provided in subsection
2.2A.

                  "LIBOR RATE MARGIN" means the margin over the Adjusted LIBOR
Rate used in determining the rate of interest on LIBOR Rate Loans pursuant to
subsection 2.2A.

                  "LIEN" means any lien, mortgage, pledge, assignment, security
interest, charge or encumbrance of any kind (including any conditional sale or
other title retention agreement, any lease in the nature thereof, and any
agreement to give any security interest) and any option, trust or other
preferential arrangement having the practical effect of any of the foregoing.

                  "LOAN" or "LOANS" means one or more of the Term B Loans,
Supplemental Term Loans, Revolving Loans, Swing Line Loans or LC Facility Loans
or any combination thereof.

                  "LOAN DOCUMENTS" means this Agreement, the Notes, the Letters
of Credit (and any applications for, or reimbursement agreements or other
documents or certificates executed by Borrower in favor of an Issuing Lender
relating to, the Letters of Credit), the Guaranties and the Collateral
Documents.

                  "LOAN PARTY" means each of Parent, Borrower and any of
Borrower's Subsidiaries from time to time executing a Loan Document, and the
"Loan Parties" means all such Persons, collectively.

                  "MARGIN STOCK" has the meaning assigned to that term in
Regulation U of the Board of Governors of the Federal Reserve System as in
effect from time to time.

                  "MATERIAL ADVERSE EFFECT" means (i) a material adverse effect
upon the business, operations, properties, assets or condition (financial or
otherwise) of Parent and its Subsidiaries taken as a whole or (ii) the material
impairment of the ability of any Loan Party to perform, or of Administrative
Agent or Lenders to enforce, the Obligations.

                  "MATERIAL CONTRACT" means any contract or other arrangement to
which Parent or any of its Subsidiaries is a party (other than the Loan
Documents) for which breach, nonperformance, cancellation or failure to renew
could reasonably be expected to have a Material Adverse Effect.

                  "MATERIAL REAL PROPERTY" means, as of any date of
determination, (i) any fee interest in real property of any Loan Party having a
fair market value of $4,000,000 or more and (ii) a Leasehold Property reasonably
determined by Administrative Agent to be of material value as Collateral or of
material importance to the operations of Borrower and where Borrower or any
Subsidiary Guarantor holds on a regular basis at such Leasehold Property
personal property with a fair market value in excess of (or such Borrower or
Subsidiary Guarantor anticipates that the

                                       18
<PAGE>

fair market value of such personal property held on a regular basis will, at any
time during the term of such lease, exceed) $10,000,000.

                  "MATERIAL SUBSIDIARY" means any Domestic Subsidiary which, on
a consolidated basis for such Domestic Subsidiary and its Subsidiaries, holds,
owns or contributes, as the case may be, 5% or more of the gross revenues,
assets or EBITDA of Parent and its Subsidiaries, on a consolidated basis.

                  "MAXIMUM CONSOLIDATED NET CAPITAL EXPENDITURES AMOUNT" has the
meaning assigned to that term in subsection 7.8.

                  "MERGER" has the meaning assigned to that term in the Recitals
to this Agreement.

                  "MERGER AGREEMENT" means that certain Agreement and Plan of
Merger among Holdings, Brand Acquisition Corp., Parent and the Sellers named
therein dated as of August 9, 2002, in the form delivered to Administrative
Agent and Lenders prior to the execution of this Agreement and as such Agreement
may be amended from time to time thereafter to the extent permitted under
subsection 7.12.

                  "MERGER SUB" means Brand Acquisition Corp., Inc., a Delaware
corporation.

                  "MORTGAGE" means (i) a security instrument (whether designated
as a deed of trust or a mortgage or by any similar title) executed and delivered
by any Loan Party, substantially in the form agreed upon by Borrower and
Administrative Agent as of the Closing Date or in such other form as may be
approved by Administrative Agent in its sole discretion, in each case with such
changes thereto as may be recommended by Administrative Agent's local counsel
based on local laws or customary local mortgage or deed of trust practices, or
(ii) at Administrative Agent's option, in the case of an Additional Mortgaged
Property, an amendment to an existing Mortgage, in form satisfactory to
Administrative Agent, adding such Additional Mortgaged Property to the Real
Property Assets encumbered by such existing Mortgage, in either case as such
security instrument or amendment may be amended, supplemented or otherwise
modified from time to time. "Mortgages" means all such instruments, including
the Closing Date Mortgages and any Additional Mortgages, collectively.

                  "MULTIEMPLOYER PLAN" means any Pension Plan that is a
"multiemployer plan" as defined in Section 3(37) of ERISA.

                  "NET ASSET SALE PROCEEDS", with respect to any Asset Sale,
means Cash payments (including any Cash received by way of deferred payment
pursuant to, or by monetization of, a note receivable or otherwise, but only as
and when so received) received from such Asset Sale, net of any bona fide direct
costs, fees and expenses incurred in connection with such Asset Sale, including,
without limitation, (i) income taxes reasonably estimated to be actually payable
within two years of the date of such Asset Sale as a result of any gain
recognized in connection with such Asset Sale, (ii) payment of the outstanding
principal amount of, premium or penalty, if any, and interest on any
Indebtedness (other than the Loans) that is secured by a Lien on the stock or

                                       19
<PAGE>

assets in question and that is required to be repaid under the terms thereof as
a result of such Asset Sale and (iii) all reasonable and customary legal,
investment banking, brokerage, accounting and other professional fees, sales
commissions and disbursements and all other reasonable fees, expenses and
charges, in each case actually incurred in connection with such Asset Sale.

                  "NET DEBT SECURITIES PROCEEDS" has the meaning assigned to
that term in subsection 2.4B(iii)(d).

                  "NET EQUITY SECURITIES PROCEEDS" has the meaning assigned to
that term in subsection 2.4B(iii)(c).

                  "NET INSURANCE/CONDEMNATION PROCEEDS" means any Cash payments
or proceeds received by Parent or any of its Subsidiaries (i) under any business
interruption or casualty insurance policy in respect of a covered loss
thereunder or (ii) as a result of the taking of any assets of Parent or any of
its Subsidiaries by any Person pursuant to the power of eminent domain,
condemnation or otherwise, or pursuant to a sale of any such assets to a
purchaser with such power under threat of such a taking, in each case net of any
actual and reasonable documented costs incurred by Parent or any of its
Subsidiaries in connection with the adjustment or settlement of any claims of
Parent or such Subsidiary in respect thereof and any proceeds or awards required
to be paid to a creditor (other than Lenders) which holds a first-priority Lien
permitted under the Loan Documents on the property which is the subject of such
casualty or condemnation event described above.

                  "NEW BUSINESS" means, with respect to any Permitted
Acquisition, the property, assets or business acquired by Borrower or any of its
Subsidiaries in such Permitted Acquisition.

                  "NON-US LENDER" means a Lender that is organized under the
laws of any jurisdiction other than the United States or any state or other
political subdivision thereof.

                  "NOTES" means one or more of the Term B Notes, Supplemental
Term Notes, Revolving Notes, Swing Line Note or LC Facility Notes or any
combination thereof.

                  "NOTICE OF BORROWING" means a notice substantially in the form
of Exhibit I annexed hereto.

                  "NOTICE OF CONVERSION/CONTINUATION" means a notice
substantially in the form of Exhibit II annexed hereto.

                  "OBLIGATIONS" means all obligations of every nature of each
Loan Party from time to time owed to Administrative Agent, any other Agent,
Lenders or any of them under the Loan Documents, whether for principal,
interest, reimbursement of amounts drawn under Letters of Credit, fees,
expenses, indemnification or otherwise.

                  "OFFICER" means the president, chief executive officer, a vice
president, chief financial officer, treasurer, general partner (if an
individual), managing member (if an individual)

                                       20
<PAGE>

or other individual appointed by the Governing Body or the Organizational
Documents of a corporation, partnership, trust or limited liability company to
serve in a similar capacity as the foregoing.

                  "OFFICER'S CERTIFICATE", as applied to any Person that is a
corporation, partnership, trust or limited liability company, means a
certificate executed on behalf of such Person by one or more Officers of such
Person or one or more Officers of a general partner or a managing member if such
general partner or managing member is a corporation, partnership, trust or
limited liability company.

                  "OPERATING LEASE", as applied to any Person, means any lease
(including leases that may be terminated by the lessee at any time) of any
property (whether real, personal or mixed) that is not a Capital Lease other
than any such lease under which that Person is the lessor.

                  "ORGANIZATIONAL DOCUMENTS" means the documents (including
Bylaws, if applicable) pursuant to which a Person that is a corporation,
partnership, trust or limited liability company is organized.

                  "PARENT" means DLJ Brand Holdings, Inc., a Delaware
corporation, which shall change its name to "Brand Intermediate Holdings, Inc."
upon the consummation of the Merger.

                  "PARENT CERTIFICATE OF INCORPORATION" means the Amended
Certificate of Incorporation of Parent, in the form delivered to Administrative
Agent and Lenders prior to the execution of this Agreement and as such Amended
Certificate of Incorporation may be further amended from time to time thereafter
to the extent permitted under subsection 7.12.

                  "PARENT GUARANTY" means the Parent Guaranty executed and
delivered by Parent on the Closing Date, substantially in the form of Exhibit
XVI annexed hereto, as such Parent Guaranty may thereafter be amended,
supplemented or otherwise modified from time to time.

                  "PARENT JUNIOR SUBORDINATED NOTE INDENTURE" means the
Indenture entered into by Parent and the trustee named therein pursuant to which
the Parent Junior Subordinated Notes were issued in the form approved by
Co-Arrangers pursuant to subsection 4.1Q and as such Indenture may be amended,
supplemented or otherwise modified from time to time thereafter pursuant to
subsection 7.12.

                  "PARENT JUNIOR SUBORDINATED NOTES" means the 13% Senior
Subordinated Notes due 2013 of Parent issued pursuant to the Parent Junior
Subordinated Note Indenture.

                  "PARENT JUNIOR SUBORDINATED NOTES ISSUE DATE" means October
16, 2002.

                  "PARTICIPANT" means a purchaser of a participation in the
rights and obligations under this Agreement pursuant to subsection 10.1C.

                  "PATRIOT ACT" means the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (USA PATRIOT Act).

                                       21
<PAGE>

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

                  "PENSION PLAN" means any Employee Benefit Plan, other than a
Multiemployer Plan, that is subject to Section 412 of the Internal Revenue Code
or Section 302 of ERISA.

                  "PERMITTED ACQUISITION" means any acquisition, by purchase or
otherwise, of all or substantially all of the business, property or fixed assets
of, or stock or other evidence of beneficial ownership of, any Person or any
division or line of business of any Person by Borrower or any of its
Subsidiaries permitted under and made in accordance with subsection 7.3(xi).

                  "PERMITTED ACQUISITION CLOSING DATE" has the meaning assigned
to that term in subsection 7.3(xi).

                  "PERMITTED ENCUMBRANCES" means the following types of Liens
(excluding any such Lien imposed pursuant to Section 401(a)(29) or 412(n) of the
Internal Revenue Code or by ERISA, any such Lien relating to or imposed in
connection with any Environmental Claim but including any of the foregoing to
the extent such Liens are not delinquent or are being contested in good faith by
appropriate proceedings and excluding any such Lien expressly prohibited by any
applicable terms of any of the Collateral Documents):

                  (i) Liens for taxes, assessments or governmental charges or
         claims the payment of which is not, at the time, required by subsection
         6.3;

                  (ii) statutory Liens of landlords, Liens of collecting banks
         under the UCC on items in the course of collection, statutory Liens and
         rights of set-off of banks, statutory Liens of carriers, warehousemen,
         mechanics, repairmen, workmen and materialmen, and other Liens imposed
         by law, in each case incurred in the ordinary course of business (a)
         for amounts not yet overdue or (b) for amounts that are overdue and
         that (in the case of any such amounts overdue for a period in excess of
         30 days) are being contested in good faith by appropriate proceedings,
         so long as (1) such reserves or other appropriate provisions, if any,
         as shall be required by GAAP shall have been made for any such
         contested amounts, and (2) in the case of a Lien with respect to any
         portion of the Collateral, such contest proceedings conclusively
         operate to stay the sale of any portion of the Collateral on account of
         such Lien;

                  (iii) Liens incurred or deposits made in the ordinary course
         of business in connection with workers' compensation, unemployment
         insurance and other types of governmental insurance benefits or social
         security, or to secure the performance of tenders, statutory
         obligations, insurance obligations, surety and appeal bonds, bids,
         leases, government contracts, trade contracts, performance and
         return-of-money bonds and other similar obligations (exclusive of
         obligations for the payment of borrowed money), so long as no
         foreclosure, sale or similar proceedings have been commenced with
         respect to any portion of the Collateral on account thereof;

                                       22
<PAGE>

                  (iv) any attachment or judgment Lien not constituting an Event
         of Default under subsection 8.8;

                  (v) (a) licenses (with respect to Intellectual Property and
         other property), leases (other than leases of scaffolding equipment) or
         subleases granted to third parties in accordance with any applicable
         terms of the Collateral Documents and not interfering in any material
         respect with the ordinary conduct of the business of Borrower or any of
         its Subsidiaries or resulting in a material diminution in the value of
         any Collateral as security for the Obligations and (b) leases of
         scaffolding equipment granted to customers of Borrower or any of its
         Subsidiaries in the ordinary conduct of the business of Borrower or any
         such Subsidiary;

                  (vi) (a) easements, rights-of-way, restrictions,
         encroachments, and other minor defects or irregularities in title, in
         each case which do not and will not interfere in any material respect
         with the ordinary conduct of the business of Borrower or any of its
         Subsidiaries or result in a material diminution in the value of any
         Collateral as security for the Obligations; and (b) in the case of any
         property covered by a Mortgage, encumbrances disclosed in the title
         insurance policy issued to, and reasonably approved by, Administrative
         Agent;

                  (vii) any (a) interest or title of a lessor or sublessor under
         any lease not prohibited by this Agreement, (b) Lien or restriction
         that the interest or title of such lessor or sublessor may be subject
         to, or (c) subordination of the interest of the lessee or sublessee
         under such lease to any Lien or restriction referred to in the
         preceding clause (b), so long as the holder of such Lien or restriction
         agrees to recognize the rights of such lessee or sublessee under such
         lease;

                  (viii) Liens arising from filing UCC financing statements
         relating solely to leases not prohibited by this Agreement;

                  (ix) Liens in favor of customs and revenue authorities arising
         as a matter of law to secure payment of customs duties in connection
         with the importation of goods;

                  (x) any zoning or similar law or right reserved to or vested
         in any governmental office or agency to control or regulate the use of
         any real property;

                  (xi) Liens granted pursuant to the Collateral Documents; and

                  (xii) Liens securing obligations (other than obligations
         representing Indebtedness for borrowed money) under operating,
         reciprocal easement or similar agreements entered into in the ordinary
         course of business of Borrower and its Subsidiaries.

                  "PERSON" means and includes natural persons, corporations,
limited partnerships, general partnerships, limited liability companies, limited
liability partnerships, joint stock companies, Joint Ventures, associations,
companies, trusts, banks, trust companies, land trusts,

                                       23
<PAGE>

business trusts or other organizations, whether or not legal entities, and
governments (whether federal, state or local, domestic or foreign, and including
political subdivisions thereof) and agencies or other administrative or
regulatory bodies thereof.

                  "PLEDGED COLLATERAL" means, collectively, the "Pledged
Collateral" as defined in the Security Agreement.

                  "POTENTIAL EVENT OF DEFAULT" means a condition or event that,
after notice or lapse of time or both, would constitute an Event of Default.

                  "PRICING CERTIFICATE" means an Officer's Certificate of
Borrower certifying the Consolidated Leverage Ratio as at the last day of any
Fiscal Quarter and setting forth the calculation of such Consolidated Leverage
Ratio in reasonable detail, which Officer's Certificate may be delivered to
Administrative Agent at any time on or after the date of delivery by Borrower of
the Compliance Certificate with respect to the period ending on the last day of
such Fiscal Quarter.

                  "PRIME RATE" means the rate that Administrative Agent
announces from time to time as its prime lending rate, as in effect from time to
time. The Prime Rate is a reference rate and does not necessarily represent the
lowest or best rate actually charged to any customer. Administrative Agent or
any other Lender may make commercial loans or other loans at rates of interest
at, above or below the Prime Rate.

                  "PROCEEDINGS" means any action, suit, proceeding (whether
administrative, judicial or otherwise), governmental investigation or
arbitration.

                  "PROPERTY SALE-LEASEBACK" means any sale or transfer of real
property acquired after the Closing Date (other than any such real property
acquired in a Permitted Acquisition) by Borrower or any of its Subsidiaries to
any other Person and with respect to which Borrower or any such Subsidiary
becomes and remain liable as lessee, guarantor or other surety with respect to
any such lease.

                  "PRO FORMA BASIS" means, as of any date of determination, the
compliance of Borrower with the financial covenants set forth in subsection 7.6A
and 7.6B as of the last day of the four Fiscal Quarter period most recently
ended prior to such date of determination for which the relevant financial
information is available (the "COMPLIANCE PERIOD"), after giving effect on a pro
forma basis to any Permitted Acquisitions made during such Compliance Period and
any dispositions made during such Compliance Period (other than sales of
inventory in the ordinary course of business and dispositions of obsolete
equipment) on the following basis:

                  (i) any Indebtedness incurred or assumed by Borrower or any of
         its Subsidiaries in connection with such Permitted Acquisitions and any
         Indebtedness repaid in connection with such Permitted Acquisitions or
         dispositions shall be deemed to have been incurred or repaid,
         respectively, as of the first day of the Compliance Period;

                                       24
<PAGE>

                  (ii) if such Indebtedness incurred or assumed by Borrower or
         any of its Subsidiaries in connection with such Permitted Acquisitions
         has a floating or formula rate, then the rate of interest for such
         Indebtedness for the applicable period shall be computed as if the rate
         in effect for such Indebtedness on the relevant measurement date had
         been the applicable rate for the entire applicable period;

                  (iii) income statement items (whether positive or negative)
         attributable to the property or business acquired or disposed of in
         such Permitted Acquisitions or dispositions shall be included as if
         such acquisitions or dispositions took place on the first day of such
         Compliance Period on a pro forma basis; and

                  (iv) any historical extraordinary non-recurring costs or
         expenses or other verifiable costs or expenses that will not continue
         after the acquisition or disposition date may be eliminated and other
         expenses and cost reductions may be reflected on a basis consistent
         with Regulation S-X promulgated by the Securities and Exchange
         Commission.

                  With respect to any such Permitted Acquisitions, such pro
forma calculations shall be based on the audited or reviewed financial results
to the extent delivered in compliance with clause (f) of subsection 7.3(xi). All
pro forma adjustments shall be approved for use in such calculations by
Administrative Agent.

                  "PRO RATA SHARE" means (i) with respect to all payments,
computations and other matters relating to the Term B Loan Commitment or the
Term B Loan of any Lender, the percentage obtained by dividing (x) the Term B
Loan Exposure of that Lender by (y) the aggregate Term B Loan Exposure of all
Lenders, (ii) with respect to all payments, computations and other matters
relating to the Supplemental Term Loans of any Lender, the percentage obtained
by dividing (x) the Supplemental Term Loan Exposure of that Lender by (y) the
aggregate Supplemental Term Loan Exposure of all Lenders, (iii) with respect to
all payments, computations and other matters relating to the Revolving Loan
Commitment or the Revolving Loans of any Lender or any Letters of Credit issued
or participations therein deemed purchased by any Lender or any assignments of
any Swing Line Loans deemed purchased by any Lender, the percentage obtained by
dividing (x) the Revolving Loan Exposure of that Lender by (y) the aggregate
Revolving Loan Exposure of all Lenders, (iv) with respect to all payments,
computations and other matters relating to the LC Facility Commitment or the LC
Facility Loans of any LC Facility Lender or any LC Facility Letters of Credit
issued or participations therein deemed purchased by any LC Facility Lender, the
percentage obtained by dividing (x) the LC Facility Exposure of that LC Facility
Lender by (y) the aggregate LC Facility Exposure of all Lenders, and (v) for all
other purposes with respect to each Lender, the percentage obtained by dividing
(x) the sum of the Term B Loan Exposure of that Lender plus the Supplemental
Term Loan Exposure of that Lender plus the Revolving Loan Exposure of that
Lender plus the LC Facility Exposure of that Lender by (y) the sum of the
aggregate Term B Loan Exposure of all Lenders plus the aggregate Supplemental
Term Loan Exposure of all Lenders plus the aggregate Revolving Loan Exposure of
all Lenders plus the aggregate LC Facility Exposure of all Lenders, in any such
case as the applicable percentage may be adjusted by assignments permitted
pursuant to subsection 10.1. The initial Pro Rata Share of each Lender for
purposes of each of clauses (i),

                                       25
<PAGE>

(iii) and (iv) of the preceding sentence is set forth opposite the name of that
Lender in Schedule 2.1 annexed hereto.

                  "PTO" means the United States Patent and Trademark Office or
any successor or substitute office in which filings are necessary or, in the
opinion of Administrative Agent, desirable in order to create or perfect Liens
on any IP Collateral.

                  "PURCHASE MONEY INDEBTEDNESS" means Indebtedness of Borrower
or any other Subsidiary of Borrower incurred in connection with the purchase of
assets or other property for the business of such Borrower or such Subsidiary
for the purposes of financing all or any part of the purchase price or cost of
construction or improvement of property, plant or equipment used in the business
of Borrower or such Subsidiary; provided that (x) the recourse of the Lenders
with respect to such Indebtedness is limited solely to such Borrower or such
Subsidiary, as the case may be, (y) the only Lien granted by such Borrower or
such Subsidiary, as the case may be, securing such Indebtedness (which amount
shall not exceed 125% of the purchase price of the asset or property (net of
taxes and soft costs)) is on the assets or other property so purchased (and the
proceeds of such assets or other property) and (z) such Indebtedness is without
recourse to any other Loan Party.

                  "REAL PROPERTY ASSET" means, at any time of determination, any
interest then owned by any Loan Party in any real property.

                  "REFERENCE LENDER" means CSFB.

                  "REFINANCING" has the meaning assigned to that term in
subsection 2.5A.

                  "REFUNDED SWING LINE LOANS" has the meaning assigned to that
term in subsection 2.1A(iii).

                  "REGISTER" has the meaning assigned to that term in subsection
2.1D.

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

                  "RELATED AGREEMENTS" means, collectively, the Parent
Certificate of Incorporation, the Borrower Certificate of Incorporation, the
Merger Agreement, the Senior Subordinated Notes Indenture and the Parent Junior
Subordinated Note Indenture.

                  "RELEASE" means any release, spill, emission, leaking,
pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal,
dumping, leaching or migration of Hazardous Materials into the indoor or outdoor
environment (including the abandonment or disposal of any barrels, containers or
other closed receptacles containing any Hazardous Materials), including the
movement of any Hazardous Materials through the air, soil, surface water or
groundwater.

                  "REPAYABLE NET ASSET SALE PROCEEDS" has the meaning assigned
to that term in subsection 2.4B(iii)(a).

                                       26
<PAGE>

                  "REQUEST FOR ISSUANCE" means a request substantially in the
form of Exhibit III annexed hereto.

                  "REQUISITE CLASS LENDERS" means, at any time of determination,
(i) for Lenders holding Term B Loans, Lenders holding more than 50% of the
aggregate Term B Loan Exposure of all Lenders; (ii) for Lenders holding
Supplemental Term Loans, Lenders holding more than 50% of the aggregate
Supplemental Term Loan Exposure of all Lenders, (iii) for Lenders holding
Revolving Loans, Lenders holding more than 50% of the aggregate Revolving Loan
Exposure of all Lenders, and (iv) for Lenders holding LC Facility Loans, Lenders
holding more than 50% of the aggregate LC Facility Exposure of all Lenders.

                  "REQUISITE LENDERS" means Lenders having or holding more than
50% of the sum of the aggregate Term B Loan Exposure of all Lenders plus the
aggregate Supplemental Term Loan Exposure of all Lenders plus the aggregate
Revolving Loan Exposure of all Lenders plus the aggregate LC Facility Exposure
of all Lenders.

                  "RESTRICTED JUNIOR PAYMENT" means (i) any dividend or other
distribution, direct or indirect, on account of any shares of any class of stock
of Borrower or Parent now or hereafter outstanding, except a dividend payable
solely in shares of that class of stock to the holders of that class, (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of stock
of Borrower or Parent now or hereafter outstanding, (iii) any payment made to
retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire shares of any class of stock of Borrower or Parent now
or hereafter outstanding, and (iv) any payment or prepayment of principal of,
premium, if any, or interest on, or redemption, purchase, retirement, defeasance
(including in-substance or legal defeasance), sinking fund or similar payment
with respect to, any Subordinated Indebtedness.

                  "REVOLVING ISSUING LENDER" means the Revolving Lender that
agrees or is otherwise obligated to issue such Revolving Letter of Credit,
determined as provided in subsection 3.1B(ii).

                  "REVOLVING LENDER" means a Lender that has a Revolving Loan
Commitment and/or that has an outstanding Revolving Loan.

                  "REVOLVING LETTER OF CREDIT" or "REVOLVING LETTERS OF CREDIT"
means Commercial Letters of Credit and Standby Letters of Credit issued or to be
issued by Revolving Issuing Lenders for the account of Borrower pursuant to
subsection 3.1.

                  "REVOLVING LETTER OF CREDIT USAGE" means, as at any date of
determination, the sum of (i) the maximum aggregate amount which is or at any
time thereafter may become available for drawing under all Revolving Letters of
Credit then outstanding plus (ii) the aggregate amount of all drawings under
Revolving Letters of Credit honored by Revolving Issuing Lenders and not
theretofore reimbursed out of the proceeds of Revolving Loans pursuant to
subsection 3.3B or otherwise reimbursed by Borrower.

                                       27
<PAGE>

                  "REVOLVING LOAN COMMITMENT" means the commitment of a
Revolving Lender to make Revolving Loans to Borrower pursuant to subsection
2.1A(ii), and "REVOLVING LOAN COMMITMENTS" means such commitments of all
Revolving Lenders in the aggregate.

                  "REVOLVING LOAN COMMITMENT TERMINATION DATE" means October 16,
2008.

                  "REVOLVING LOAN EXPOSURE", with respect to any Revolving
Lender, means, as of any date of determination (i) prior to the termination of
the Revolving Loan Commitments, that Lender's Revolving Loan Commitment, and
(ii) after the termination of the Revolving Loan Commitments, the sum of (a) the
aggregate outstanding principal amount of the Revolving Loans of that Lender
plus (b) in the event that Lender is a Revolving Issuing Lender, the aggregate
Revolving Letter of Credit Usage in respect of all Revolving Letters of Credit
issued by that Lender (in each case net of any participations purchased by other
Revolving Lenders in such Letters of Credit or in any unreimbursed drawings
thereunder) plus (c) the aggregate amount of all participations purchased by
that Revolving Lender in any outstanding Letters of Credit or any unreimbursed
drawings under any Revolving Letters of Credit plus (d) in the case of Swing
Line Lender, the aggregate outstanding principal amount of all Swing Line Loans
(net of any assignments thereof purchased by other Revolving Lenders) plus (e)
the aggregate amount of all assignments purchased by that Lender in any
outstanding Swing Line Loans.

                  "REVOLVING LOANS" means the Loans made by Revolving Lenders to
Borrower pursuant to subsection 2.1A(ii).

                  "REVOLVING NOTES" means (i) the promissory notes of Borrower
issued pursuant to subsection 2.1E(i)(1)(b) on the Closing Date and/or (ii) any
promissory notes issued by Borrower pursuant to the second to last sentence of
subsection 10.1B(i) in connection with assignments of the Revolving Loan
Commitments and Revolving Loans of any Revolving Lenders, in each case
substantially in the form of Exhibit VI annexed hereto, as they may be amended,
supplemented or otherwise modified from time to time.

                  "REVOLVING REIMBURSEMENT DATE" has the meaning assigned to
that term in subsection 3.3B(i).

                  "SECURITIES" means any stock, shares, partnership interests,
voting trust certificates, certificates of interest or participation in any
profit-sharing agreement or arrangement, options, warrants, bonds, debentures,
notes, or other evidences of indebtedness, secured or unsecured, convertible,
subordinated, certificated or uncertificated, or otherwise, or in general any
instruments commonly known as "securities" or any certificates of interest,
shares or participations in temporary or interim certificates for the purchase
or acquisition of, or any right to subscribe to, purchase or acquire, any of the
foregoing.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended
from time to time, and any successor statute.

                                       28
<PAGE>

                  "SECURITY AGREEMENT" means the Security Agreement executed and
delivered on the Closing Date, substantially in the form of Exhibit XV annexed
hereto, as such Security Agreement may thereafter be amended, supplemented or
otherwise modified from time to time.

                  "SENIOR SUBORDINATED NOTE INDENTURE" means the Indenture
entered into by Borrower and the trustee named therein pursuant to which the
Senior Subordinated Notes are issued in the form approved by Co-Arrangers
pursuant to subsection 4.1P and as such Indenture may be amended, supplemented
or otherwise modified from time to time thereafter to the extent permitted under
subsection 7.12.

                  "SENIOR SUBORDINATED NOTES" means the 12% Senior Subordinated
Notes due 2012 of Borrower, issued pursuant to the Senior Subordinated Note
Indenture.

                  "SEVERANCE COSTS" means, for any period, severance costs of
Borrower and its Subsidiaries incurred in connection with a restructuring of the
operations of Borrower and its Subsidiaries or a Permitted Acquisition; provided
that the calculation of any such Severance Costs shall be set forth in an
Officer's Certificate in form and substance reasonably satisfactory to
Administrative Agent which shall be delivered to Administrative Agent, together
with its delivery of any financial statements required to be delivered pursuant
to subsection 6.1; and provided, further that the aggregate amount of such
Severance Costs shall not exceed $5,000,000 in any Fiscal Year.

                  "SOLVENT", with respect to any Person, means that as of the
date of determination both (i)(a) the then fair saleable value of the property
of such Person is (1) greater than the total amount of liabilities (including
contingent liabilities) of such Person and (2) not less than the amount that
will be required to pay the probable liabilities on such Person's then existing
debts as they become absolute and due considering all financing alternatives and
potential asset sales reasonably available to such Person; (b) such Person's
capital is not unreasonably small in relation to its business or any
contemplated or undertaken transaction; and (c) such Person does not intend to
incur, or believe (nor should it reasonably believe) that it will incur, debts
beyond its ability to pay such debts as they become due; and (ii) such Person is
"solvent" within the meaning given that term and similar terms under applicable
laws relating to fraudulent transfers and conveyances. For purposes of this
definition, the amount of any contingent liability at any time shall be computed
as the amount that, in light of all of the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an
actual or matured liability.

                  "SPC" has the meaning assigned to that term in subsection
10.1B(iii).

                  "STANDBY LETTER OF CREDIT" means any standby letter of credit
or similar instrument issued for the purpose of supporting (i) Indebtedness of
Borrower or any of its Subsidiaries in respect of industrial revenue or
development bonds or financings, (ii) workers' compensation liabilities of
Borrower or any of its Subsidiaries, (iii) the obligations of third party
insurers of Borrower or any of its Subsidiaries arising by virtue of the laws of
any jurisdiction requiring third party insurers, (iv) obligations with respect
to Capital Leases or Operating Leases of Borrower or any of its Subsidiaries,
and (v) performance, payment, deposit or surety

                                       29
<PAGE>

obligations of Borrower or any of its Subsidiaries, in any case if required by
law or governmental rule or regulation or in accordance with custom and practice
in the industry.

                  "SUBORDINATED INDEBTEDNESS" means the (i) Senior Subordinated
Notes, (ii) Parent Junior Subordinated Notes and (iii) any other Indebtedness of
Parent and its Subsidiaries incurred from time to time and subordinated in right
of payment to the Obligations.

                  "SUBSIDIARY", with respect to any Person, means any
corporation, partnership, trust, limited liability company, association, Joint
Venture or other business entity of which more than 50% of the total voting
power of shares of stock or other ownership interests entitled (without regard
to the occurrence of any contingency) to vote in the election of the members of
the Governing Body is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person or a
combination thereof.

                  "SUBSIDIARY GUARANTOR" means any Domestic Subsidiary of
Borrower that is a Material Subsidiary that executes and delivers a counterpart
of the Subsidiary Guaranty on the Closing Date or from time to time thereafter
pursuant to subsection 6.8.

                  "SUBSIDIARY GUARANTY" means the Subsidiary Guaranty executed
and delivered by existing Subsidiaries of Borrower on the Closing Date and to be
executed and delivered by additional Subsidiaries of Borrower from time to time
thereafter in accordance with subsection 6.8, substantially in the form of
Exhibit XIV annexed hereto, as such Subsidiary Guaranty may hereafter be
amended, supplemented or otherwise modified from time to time.

                  "SUPPLEMENTAL COLLATERAL AGENT" has the meaning assigned to
that term in subsection 9.1B.

                  "SUPPLEMENTAL EXCESS YIELD" means (i) the Supplemental Upfront
Fee Percentage divided by (ii) four; provided that, in the event that the stated
maturity date with respect to the Supplemental Term Loans is less than four
years from the initial Funding Date of the Supplemental Term Loans, the
Supplemental Upfront Fee Percentage shall be divided by such lesser period of
time (expressed as a number of years rounded to one decimal place based on the
total number of months to such stated maturity date divided by 12).

                  "SUPPLEMENTAL TERM LOAN AVAILABILITY EXPIRATION DATE" means
the earlier of (x) the third anniversary of the Closing Date and (y) the
maturity of the Term B Loans.

                  "SUPPLEMENTAL TERM LOAN COMMITMENT" means the commitment of a
Lender to make a Supplemental Term Loan to Borrower pursuant to subsection
2.1A(iv), and "SUPPLEMENTAL TERM LOAN COMMITMENTS" means such commitments of all
Lenders in the aggregate.

                  "SUPPLEMENTAL TERM LOAN EXPOSURE", with respect to any Lender,
means, as of any date of determination the outstanding principal amount of the
Supplemental Term Loans of that Lender.

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<PAGE>

                  "SUPPLEMENTAL TERM LOANS" means the Loans made by Lenders to
Borrower pursuant to subsection 2.1A(iv).

                  "SUPPLEMENTAL TERM NOTES" means (i) the promissory notes of
Borrower issued pursuant to subsection 2.1E(ii) and/or (ii) any promissory notes
issued by Borrower pursuant to the second to last sentence of subsection
10.1B(i) in connection with assignments of the Supplemental Term Loans of any
Lenders, in each case substantially in the form of Exhibit V annexed hereto, as
they may be amended, supplemented or otherwise modified from time to time.

                  "SUPPLEMENTAL UPFRONT FEE PERCENTAGE" means (i) the aggregate
amount of upfront fees payable with respect to the Supplemental Term Loans
including, without limitation, contingent fees and original issue discount
(other than any arrangement, underwriting or other fees payable solely to any
Co-Arranger or Co-Arrangers with respect to the Supplemental Term Loans) divided
by (ii) the aggregate amount of such Supplemental Term Loans.

                  "SUPPLEMENTAL YIELD" means the sum of (i) the LIBOR Rate
Margin with respect to the Supplemental Term Loans and/or the Base Rate Margin
with respect to the Supplemental Term Loans plus (ii) the Supplemental Excess
Yield.

                  "SWING LINE LENDER" means CSFB, or any Person serving as a
successor Administrative Agent hereunder, in its capacity as Swing Line Lender
hereunder.

                  "SWING LINE LOAN COMMITMENT" means the commitment of Swing
Line Lender to make Swing Line Loans to Borrower pursuant to subsection
2.1A(iii).

                  "SWING LINE LOANS" means the Loans made by Swing Line Lender
to Borrower pursuant to subsection 2.1A(iii).

                  "SWING LINE NOTE" means (i) the promissory note of Borrower
issued pursuant to subsection 2.1E(i)(2) on the Closing Date and/or (ii) any
promissory note issued by Borrower to any successor Administrative Agent and
Swing Line Lender pursuant to the last sentence of subsection 9.5B, in each case
substantially in the form of Exhibit VII annexed hereto, as it may be amended,
supplemented or otherwise modified from time to time.

                  "TAX" or "TAXES" means any present or future tax, levy,
impost, duty, charge, fee, deduction or withholding of any nature and whatever
called, by whomsoever, on whomsoever and wherever imposed, levied, collected,
withheld or assessed, including interest, penalties, additions to tax and any
similar liabilities with respect thereto; except that, in the case of a Lender,
there shall be excluded (i) taxes that are imposed on the overall net income or
net profits (including franchise taxes imposed in lieu thereof) (a) by the
United States, (b) by any other Government Authority under the laws of which
such Lender is organized or has its principal office or maintains its applicable
lending office, or (c) by any jurisdiction solely as a result of a present or
former connection between such Lender and such jurisdiction (other than any such
connection arising solely from such Lender having executed, delivered or
performed its obligations or received a payment under, or enforced, any of the
Loan Documents), and (ii) any

                                       31
<PAGE>

branch profits taxes imposed by the United States or any similar tax imposed by
any other jurisdiction in which such Lender is located.

                  "TERM B EXCESS YIELD" means (i) the Term B Upfront Fee
Percentage divided by (ii) four.

                  "TERM B UPFRONT FEE PERCENTAGE" means 0.25%.

                  "TERM B YIELD" means the sum of (i) the LIBOR Rate Margin in
effect with respect to the Term B Loans and/or the Base Rate Margin in effect
with respect to the Term B Loans plus (ii) the Term B Excess Yield.

                  "TERM B LOAN COMMITMENT" means the commitment of a Lender to
make a Term B Loan to Borrower pursuant to subsection 2.1A(i), and "TERM B LOAN
COMMITMENTS" means such commitments of all Lenders in the aggregate.

                  "TERM B LOAN EXPOSURE", with respect to any Lender, means, as
of any date of determination (i) prior to the funding of the Term B Loans, that
Lender's Term B Loan Commitment, and (ii) after the funding of the Term B Loans,
the outstanding principal amount of the Term B Loan of that Lender.

                  "TERM B LOAN MATURITY DATE" means October 16, 2009.

                  "TERM B LOANS" means the Loans made by Lenders to Borrower
pursuant to subsection 2.1A(i).

                  "TERM B NOTES" means (i) the promissory notes of Borrower
issued pursuant to subsection 2.1E(i)(1)(a) on the Closing Date and/or (ii) any
promissory notes issued by Borrower pursuant to the last sentence of subsection
10.1B(i) in connection with assignments of the Term B Loan Commitments or Term B
Loans of any Lenders, in each case substantially in the form of Exhibit IV
annexed hereto, as they may be amended, supplemented or otherwise modified from
time to time.

                  "TERM LOANS" means, collectively, the Term B Loans and the
Supplemental Term Loans.

                  "TITLE COMPANY" means one or more title insurance companies
reasonably satisfactory to Administrative Agent.

                  "TOTAL UTILIZATION OF LC COMMITMENT" means, as at any date of
determination, the sum of (i) the aggregate principal amount of all outstanding
LC Facility Loans plus (ii) the LC Facility Letter of Credit Usage.

                  "TOTAL UTILIZATION OF REVOLVING LOAN COMMITMENTS" means, as at
any date of determination, the sum of (i) the aggregate principal amount of all
outstanding Revolving Loans plus (ii) the aggregate principal amount of all
outstanding Swing Line Loans plus (iii) the Revolving Letter of Credit Usage.

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<PAGE>

                  "TRANSACTION COSTS" means the fees, costs and expenses payable
by Parent and its Subsidiaries on or before the Closing Date (or promptly
thereafter in connection with the transactions occurring on the Closing Date) in
connection with the transactions contemplated by the Loan Documents.

                  "UCC" means the Uniform Commercial Code as in effect in any
applicable jurisdiction.

         1.2      ACCOUNTING TERMS; UTILIZATION OF GAAP FOR PURPOSES OF
                  CALCULATIONS UNDER AGREEMENT.

                  Except as otherwise expressly provided in this Agreement, all
accounting terms not otherwise defined herein shall have the meanings assigned
to them in conformity with GAAP. Financial statements and other information
required to be delivered by Borrower to Lenders pursuant to clauses (ii), (iii)
and (xii) of subsection 6.1 shall be prepared in accordance with GAAP as in
effect at the time of such preparation (and delivered together with the
reconciliation statements provided for in subsection 6.1(v)). Calculations in
connection with the definitions, covenants and other provisions of this
Agreement shall utilize GAAP as in effect on the date of determination, applied
in a manner consistent with that used in preparing the financial statements
referred to in subsection 5.3. If at any time any change in GAAP would affect
the computation of any financial ratio or requirement set forth in any Loan
Document, and Borrower, Administrative Agent or Requisite Lenders shall so
request, Administrative Agent, Lenders and Borrower shall negotiate in good
faith to amend such ratio or requirement to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of Requisite Lenders);
provided that, until so amended, such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and Borrower shall
provide to Administrative Agent and Lenders reconciliation statements provided
for in subsection 6.1(v).

         1.3      OTHER DEFINITIONAL PROVISIONS AND RULES OF CONSTRUCTION.

                  A. Any of the terms defined herein may, unless the context
otherwise requires, be used in the singular or the plural, depending on the
reference.

                  B. References to "Sections" and "subsections" shall be to
Sections and subsections, respectively, of this Agreement unless otherwise
specifically provided. Section and subsection headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose or be given any substantive effect.

                  C. The use in any of the Loan Documents of the word "include"
or "including", when following any general statement, term or matter, shall not
be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or
matters, whether or not nonlimiting language (such as "without limitation" or
"but not limited to" or words of similar import) is used with reference thereto,
but rather shall be deemed to refer to all other items or matters that fall
within the broadest possible scope of such general statement, term or matter.

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<PAGE>

SECTION 2. AMOUNTS AND TERMS OF COMMITMENTS AND LOANS

         2.1      COMMITMENTS; MAKING OF LOANS; THE REGISTER; NOTES.

                  A. COMMITMENTS. Subject to the terms and conditions of this
Agreement and in reliance upon the representations and warranties of Borrower
herein set forth, each Lender hereby severally agrees to make the Loans as
described in subsections 2.1A(i), 2.1A(ii), 2.1A(iv) and 2.1A(v) and Swing Line
Lender hereby agrees to make the Swing Line Loans as described in subsection
2.1A(iii).

                  (i) Term B Loans. Each Lender that has a Term B Loan
         Commitment severally agrees to lend to Borrower on the Closing Date an
         amount not exceeding its Pro Rata Share of the aggregate amount of the
         Term B Loan Commitments to be used for the purposes identified in
         subsection 2.5A. The amount of each Lender's Term B Loan Commitment is
         set forth opposite its name on Schedule 2.1 annexed hereto and the
         aggregate amount of the Term B Loan Commitments is $130,000,000;
         provided that the Term B Loan Commitments of Lenders shall be adjusted
         to give effect to any assignments of the Term B Loan Commitments
         pursuant to subsection 10.1B. Each Lender's Term B Loan Commitment
         shall expire immediately and without further action on October 30, 2002
         if the Term B Loans are not made on or before that date. Borrower may
         make only one borrowing under the Term B Loan Commitments. Amounts
         borrowed under this subsection 2.1A(i) and subsequently repaid or
         prepaid may not be reborrowed.

                  (ii) Revolving Loans. Each Revolving Lender severally agrees,
         subject to the limitations set forth below with respect to the maximum
         amount of Revolving Loans permitted to be outstanding from time to
         time, to lend to Borrower from time to time during the period from the
         Closing Date to but excluding the Revolving Loan Commitment Termination
         Date an aggregate amount not exceeding its Pro Rata Share of the
         aggregate amount of the Revolving Loan Commitments to be used for the
         purposes identified in subsection 2.5B. The original amount of each
         Revolving Lender's Revolving Loan Commitment is set forth opposite its
         name on Schedule 2.1 annexed hereto and the aggregate original amount
         of the Revolving Loan Commitments is $50,000,000; provided that the
         Revolving Loan Commitments of Revolving Lenders shall be adjusted to
         give effect to any assignments of the Revolving Loan Commitments
         pursuant to subsection 10.1B and shall be reduced from time to time by
         the amount of any reductions thereto made pursuant to subsection 2.4.
         Each Revolving Lender's Revolving Loan Commitment shall expire on the
         Revolving Loan Commitment Termination Date and all Revolving Loans and
         all other amounts owed hereunder with respect to the Revolving Loans
         and the Revolving Loan Commitments shall be paid in full no later than
         that date; provided that each Revolving Lender's Revolving Loan
         Commitment shall expire immediately and without further action on
         October 30, 2002 if the Term B Loans are not made on or before that
         date. Amounts borrowed under this subsection 2.1A(ii) may be repaid and
         reborrowed to but excluding the Revolving Loan Commitment Termination
         Date.

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<PAGE>

                  Anything contained in this Agreement to the contrary
         notwithstanding, the Revolving Loans and the Revolving Loan Commitments
         shall be subject to the limitation that in no event shall the Total
         Utilization of Revolving Loan Commitments at any time exceed the
         Revolving Loan Commitments then in effect.

                  (iii) Swing Line Loans.

                           (a) General Provisions. Swing Line Lender hereby
                  agrees, subject to the limitations set forth below with
                  respect to the maximum amount of Swing Line Loans permitted to
                  be outstanding from time to time, to make a portion of the
                  Revolving Loan Commitments available to Borrower from time to
                  time during the period from the Closing Date to but excluding
                  the Revolving Loan Commitment Termination Date by making Swing
                  Line Loans to Borrower in an aggregate amount not exceeding
                  the amount of the Swing Line Loan Commitment to be used for
                  the purposes identified in subsection 2.5B, notwithstanding
                  the fact that such Swing Line Loans, when aggregated with
                  Swing Line Lender's outstanding Revolving Loans and Swing Line
                  Lender's Pro Rata Share of the Revolving Letter of Credit
                  Usage then in effect, may exceed Swing Line Lender's Revolving
                  Loan Commitment. The original amount of the Swing Line Loan
                  Commitment is $15,000,000; provided that any reduction of the
                  Revolving Loan Commitments made pursuant to subsection 2.4
                  that reduces the aggregate Revolving Loan Commitments to an
                  amount less than the then current amount of the Swing Line
                  Loan Commitment shall result in an automatic corresponding
                  reduction of the Swing Line Loan Commitment to the amount of
                  the Revolving Loan Commitments, as so reduced, without any
                  further action on the part of Borrower, Administrative Agent
                  or Swing Line Lender. The Swing Line Loan Commitment shall
                  expire on the Revolving Loan Commitment Termination Date and
                  all Swing Line Loans and all other amounts owed hereunder with
                  respect to the Swing Line Loans shall be paid in full no later
                  than that date; provided that the Swing Line Loan Commitment
                  shall expire immediately and without further action on October
                  30, 2002 if the Term B Loans are not made on or before that
                  date. Amounts borrowed under this subsection 2.1A(iii) may be
                  repaid and reborrowed to but excluding the Revolving Loan
                  Commitment Termination Date.

                  Anything contained in this Agreement to the contrary
         notwithstanding, the Swing Line Loans and the Swing Line Loan
         Commitment shall be subject to the limitation that in no event shall
         the Total Utilization of Revolving Loan Commitments at any time exceed
         the Revolving Loan Commitments then in effect.

                           (b) Swing Line Loan Prepayment with Proceeds of
                  Revolving Loans. With respect to any Swing Line Loans that
                  have not been voluntarily prepaid by Borrower pursuant to
                  subsection 2.4B(i), Swing Line Lender may, at any time in its
                  sole and absolute discretion, deliver to Administrative Agent
                  (with a copy to Borrower), no later than 10:00 A.M. (New York
                  City time) on the first Business Day in advance of the
                  proposed Funding Date, a notice requesting Revolving Lenders
                  to make Revolving Loans that are Base Rate Loans on such
                  Funding

                                       35
<PAGE>

                  Date in an amount equal to the amount of such Swing Line Loans
                  (the "REFUNDED SWING LINE LOANS") outstanding on the date such
                  notice is given. Borrower hereby acknowledges and agrees to
                  the giving of such notice and approves the borrowing of the
                  Revolving Loans effected thereby. Anything contained in this
                  Agreement to the contrary notwithstanding, (1) the proceeds of
                  such Revolving Loans made by Revolving Lenders other than
                  Swing Line Lender shall be immediately delivered by
                  Administrative Agent to Swing Line Lender (and not to
                  Borrower) and applied to repay a corresponding portion of the
                  Refunded Swing Line Loans and (2) on the day such Revolving
                  Loans are made, Swing Line Lender's Pro Rata Share of the
                  Refunded Swing Line Loans shall be deemed to be paid with the
                  proceeds of a Revolving Loan made by Swing Line Lender, and
                  such portion of the Swing Line Loans deemed to be so paid
                  shall no longer be outstanding as Swing Line Loans and shall
                  no longer be due under the Swing Line Note, if any, of Swing
                  Line Lender but shall instead constitute part of Swing Line
                  Lender's outstanding Revolving Loans and shall be due under
                  the Revolving Note, if any, of Swing Line Lender. Borrower
                  hereby authorizes Administrative Agent and Swing Line Lender
                  to charge any accounts Administrative Agent and/or Swing Line
                  Lender may have in Borrower's name (up to the amount available
                  in each such account) in order to immediately pay Swing Line
                  Lender the amount of the Refunded Swing Line Loans to the
                  extent the proceeds of such Revolving Loans made by Revolving
                  Lenders, including the Revolving Loan deemed to be made by
                  Swing Line Lender, are not sufficient to repay in full the
                  Refunded Swing Line Loans. If any portion of any such amount
                  paid (or deemed to be paid) to Swing Line Lender should be
                  recovered by or on behalf of Borrower from Swing Line Lender
                  in any bankruptcy proceeding, in any assignment for the
                  benefit of creditors or otherwise, the loss of the amount so
                  recovered shall be ratably shared among all Lenders in the
                  manner contemplated by subsection 10.5.

                           (c) Swing Line Loan Assignments. If for any reason
                  (1) Revolving Loans are not made upon the request of Swing
                  Line Lender as provided in the immediately preceding paragraph
                  in an amount sufficient to repay any amounts owed to Swing
                  Line Lender in respect of any outstanding Swing Line Loans or
                  (2) the Revolving Loan Commitments are terminated at a time
                  when any Swing Line Loans are outstanding, each Revolving
                  Lender shall be deemed to, and hereby agrees to, have
                  purchased an assignment of such outstanding Swing Line Loans
                  in an amount equal to its Pro Rata Share (calculated, in the
                  case of the foregoing clause (2), immediately prior to such
                  termination of the Revolving Loan Commitments) of the unpaid
                  amount of such Swing Line Loans together with accrued interest
                  thereon. Upon one Business Day's notice from Swing Line
                  Lender, each Revolving Lender shall deliver to Swing Line
                  Lender an amount equal to its respective assignment in same
                  day funds at the Funding and Payment Office. In order to
                  further evidence such assignment (and without prejudice to the
                  effectiveness of the assignment provisions set forth above),
                  each Revolving Lender agrees to enter into an Assignment
                  Agreement at the request of Swing

                                       36
<PAGE>

                  Line Lender in form and substance reasonably satisfactory to
                  Swing Line Lender. In the event any Revolving Lender fails to
                  make available to Swing Line Lender the amount of such
                  Revolving Lender's assignment as provided in this paragraph,
                  Swing Line Lender shall be entitled to recover such amount on
                  demand from such Revolving Lender together with interest
                  thereon at the rate customarily used by Swing Line Lender for
                  the correction of errors among banks for three Business Days
                  and thereafter at the Base Rate. In the event Swing Line
                  Lender receives a payment of any amount in which other
                  Revolving Lenders have purchased assignments as provided in
                  this paragraph, Swing Line Lender shall promptly distribute to
                  each such other Revolving Lender its Pro Rata Share of such
                  payment.

                           (d) Revolving Lenders' Obligations. Anything
                  contained herein to the contrary notwithstanding, each
                  Revolving Lender's obligation to make Revolving Loans for the
                  purpose of repaying any Refunded Swing Line Loans pursuant to
                  subsection 2.1A(iii)(b) and each Revolving Lender's obligation
                  to purchase an assignment of any unpaid Swing Line Loans
                  pursuant to the immediately preceding paragraph shall be
                  absolute and unconditional and shall not be affected by any
                  circumstance, including (1) any set-off, counterclaim,
                  recoupment, defense or other right which such Revolving Lender
                  may have against Swing Line Lender, Borrower or any other
                  Person for any reason whatsoever; (2) the occurrence or
                  continuation of an Event of Default or a Potential Event of
                  Default; (3) any adverse change in the business, operations,
                  properties, assets, condition (financial or otherwise) or
                  prospects of Parent or any of its Subsidiaries; (4) any breach
                  of this Agreement or any other Loan Document by any party
                  thereto; or (5) any other circumstance, happening or event
                  whatsoever, whether or not similar to any of the foregoing;
                  provided that such obligations of each Revolving Lender are
                  subject to the condition that (x) Swing Line Lender believed
                  in good faith that all conditions under Section 4 to the
                  making of the applicable Refunded Swing Line Loans or other
                  unpaid Swing Line Loans, as the case may be, were satisfied at
                  the time such Refunded Swing Line Loans or unpaid Swing Line
                  Loans were made or (y) the satisfaction of any such condition
                  not satisfied had been waived in accordance with subsection
                  10.6 prior to or at the time such Refunded Swing Line Loans or
                  other unpaid Swing Line Loans were made.

                  (iv) Supplemental Term Loans.

                           (a) Supplemental Term Loans. At any time prior to the
                  Supplemental Term Loan Availability Expiration Date, subject
                  to the requirements of this subsection 2.1A(iv) and the other
                  terms and conditions of this Agreement and in reliance upon
                  the representations and warranties of Borrower herein set
                  forth, Borrower may propose to incur Supplemental Term Loans
                  in accordance with clause (b) of this subsection 2.1A(iv) to
                  be used solely for the purposes identified in subsection 2.5C.
                  The aggregate amount of Supplemental Term Loans shall not
                  exceed $75,000,000. The Supplemental Term Loans shall have
                  terms identical to the Term B Loans; provided that fees
                  payable to lenders for their Supplemental

                                       37
<PAGE>
                  Term Loan commitments and interest payable on the Supplemental
                  Term Loans will be as determined at the time such commitment
                  becomes effective. Supplemental Term Loans may only be
                  incurred (x) with the written consent of Administrative Agent,
                  (y) solely in connection with a Permitted Acquisition and (z)
                  if at the time of such incurrence no Event of Default or
                  Potential Event of Default shall have occurred and be
                  continuing or shall be caused thereby. Amounts borrowed under
                  this subsection 2.1A(iv) and subsequently repaid or prepaid
                  may not be reborrowed.

                           (b) Procedure for Requesting Supplemental Term Loans.
                  If Borrower desires to incur Supplemental Term Loans, Borrower
                  may request any one or more Lenders, selected by Borrower in
                  its sole discretion, to make Supplemental Term Loans up to a
                  stated maximum aggregate principal amount and at proposed
                  interest rates and fees for the Supplemental Term Loan set
                  forth in such request (provided that such terms shall be in
                  accordance with subsection 2.1A(iv)(a) and provided further,
                  that Borrower shall, concurrently with such request, notify
                  Administrative Agent, and Administrative Agent shall
                  thereafter notify all Lenders, of such request). Any Lender
                  requested by Borrower to do so may (but is not obligated to)
                  make Supplemental Term Loans. If Lenders (including Lenders
                  not initially selected by Borrower) are not willing to provide
                  all of the Supplemental Term Loans requested on the proposed
                  terms, with the written consent of Administrative Agent (such
                  consent not to be unreasonably withheld), Borrower may request
                  one or more Persons meeting the requirements of the definition
                  of "Eligible Assignee" (each a "PROSPECTIVE LENDER"), by
                  execution of a Supplemental Term Loan Acceptance substantially
                  in the form of Exhibit XVII hereunder, to become a Lender
                  hereunder and make Supplemental Term Loans. If one or more
                  Lenders or Prospective Lenders agree to make Supplemental Term
                  Loans, Borrower shall give written notice to Administrative
                  Agent specifying the aggregate amount of the Supplemental Term
                  Loans to be made, the amount of Supplemental Term Loans to be
                  made by each Lender or Prospective Lender, the proposed
                  Funding Date of such Supplemental Term Loans and the interest
                  rates and fees payable with respect to such Supplemental Term
                  Loans. Borrower and Administrative Agent shall agree in
                  writing on all conditions (other than those specified in
                  subsections 4.2 and 4.3) to the making of such Supplemental
                  Term Loans. Upon the making of the Supplemental Term Loans,
                  subsection 2.4A shall be deemed amended to provide for the
                  amount and date of the scheduled payments of principal thereon
                  and subsection 2.2A(iii) shall be deemed amended to specify
                  the interest rate or rates applicable to the Supplemental
                  Loans, each Lender making Supplemental Term Loans shall
                  receive a Supplemental Term Note pursuant to subsection
                  2.1E(ii), with appropriate insertions, to evidence the
                  Supplemental Term Loan made by it, and Borrower shall pay to
                  Administrative Agent (for distribution to each Lender making
                  Supplemental Term Loans) the fees payable for such Loans.
                  Notwithstanding anything to the contrary contained herein, in
                  the event that the Supplemental Yield received by any lender
                  with respect to the Supplemental Term Loans of that Lender or
                  Prospective Lender, as

                                       38
<PAGE>

                  the case may be, exceeds the Term B Yield received by any
                  Lender with respect to the Term B Loans of that Lender by an
                  amount in excess of 0.50% (the amount of such excess, the
                  "DIFFERENTIAL YIELD AMOUNT"), Borrower shall, in conjunction
                  with the funding of the Supplemental Term Loans, (i) increase
                  the LIBOR Rate Margin with respect to the Term B Loans and the
                  Base Rate Margin with respect to the Term B Loans (it being
                  understood that any such increase of the LIBOR Rate Margin
                  with respect to the Terms B Loans and the Base Rate Margin
                  with respect to the Term B Loans shall remain in effect for
                  the term of this Agreement, subject to any additional increase
                  pursuant to this provision), and/or (ii) pay upfront fees to
                  the Lenders having Term B Loans on the Term B Loans, in an
                  aggregate amount equal to the Differential Yield Amount.

                  (v) LC Facility Commitment. Each LC Facility Lender severally
         agrees, subject to the limitations set forth in subsection 3.1A with
         respect to the Total Utilization of LC Facility Commitments, (i) to
         acquire participations in LC Facility Letters of Credit pursuant to
         subsection 3.1C and (ii) to make LC Facility Loans to Borrower pursuant
         to subsection 3.3C from time to time during the period from (and
         including) the Closing Date to (with respect to LC Facility Loans) but
         excluding the Revolving Loan Commitment Termination Date in an
         aggregate amount not exceeding its Pro Rata Share of the aggregate
         amount of the LC Facility Commitments to be used for the purposes
         identified in subsection 2.5B. The original amount of each LC Facility
         Lender's LC Facility Commitment is set forth opposite its name on
         Schedule 2.1 annexed hereto and the aggregate original amount of the LC
         Facility Commitments is $20,000,000; provided that the LC Facility
         Commitments of LC Facility Lenders shall be adjusted to give effect to
         any assignments of the LC Facility Loan Commitments pursuant to
         subsection 10.1B and shall be reduced from time to time by the amount
         of any reductions thereto made pursuant to subsection 2.4. Each LC
         Facility Lender's LC Facility Commitment shall expire on the Revolving
         Loan Commitment Termination Date and all LC Facility Loans and all
         other amounts owed hereunder with respect to the LC Facility Loans and
         the LC Facility Commitments shall be paid in full no later than that
         date; provided that each LC Facility Lender's LC Facility Commitment
         shall expire immediately and without further action on October 30, 2002
         if the Term B Loans are not made on or before that date. LC Facility
         Loans borrowed pursuant to subsection 3.3C(i) may be prepaid without
         reducing the LC Facility Commitments; provided, however, that LC
         Facility Loans may not be reborrowed as such.

                  B. BORROWING MECHANICS. Term Loans or Revolving Loans made on
any Funding Date (other than Revolving Loans made pursuant to a request by Swing
Line Lender pursuant to subsection 2.1A(ii) or Revolving Loans made pursuant to
subsection 3.3B) shall be in an aggregate minimum amount of (a) for Term Loans,
$2,500,000 and multiples of $500,000 in excess of that amount and (b) for
Revolving Loans, $2,000,000 and multiples of $500,000 in excess of that amount.
Swing Line Loans made on any Funding Date shall be in an aggregate minimum
amount of $500,000 and multiples of $100,000 in excess of that amount. Whenever
Borrower desires that Lenders make Term Loans or Revolving Loans it shall
deliver to Administrative Agent a duly executed Notice of Borrowing no later
than 12:00 Noon (New York

                                       39
<PAGE>

City time) at least three Business Days in advance of the proposed Funding Date
(in the case of a LIBOR Rate Loan) or at least one Business Day in advance of
the proposed Funding Date (in the case of a Base Rate Loan). Whenever Borrower
desires that Swing Line Lender make a Swing Line Loan, it shall deliver to Swing
Line Lender, with a copy to Administrative Agent, a duly executed Notice of
Borrowing no later than 12:00 Noon (New York City time) on the proposed Funding
Date. Term Loans and Revolving Loans may be continued as or converted into Base
Rate Loans and LIBOR Rate Loans in the manner provided in subsection 2.2D. In
lieu of delivering a Notice of Borrowing, Borrower may give Administrative Agent
telephonic notice by the required time of any proposed borrowing under this
subsection 2.1B; provided that such notice shall be promptly confirmed in
writing by delivery of a duly executed Notice of Borrowing to Administrative
Agent on or before the applicable Funding Date.

                  Neither Administrative Agent nor any Lender shall incur any
liability to Borrower in acting upon any telephonic notice referred to above
that Administrative Agent believes in good faith to have been given by an
Officer or other person authorized to borrow on behalf of Borrower or for
otherwise acting in good faith under this subsection 2.1B or under subsection
2.2D, and upon funding of Loans by Lenders, and upon conversion or continuation
of the applicable basis for determining the interest rate with respect to any
Loans pursuant to subsection 2.2D, in each case in accordance with this
Agreement, pursuant to any such telephonic notice Borrower shall have effected
Loans or a conversion or continuation, as the case may be, hereunder.

                  Borrower shall notify Administrative Agent prior to the
funding of any Loans in the event that any of the matters to which Borrower is
required to certify in the applicable Notice of Borrowing is no longer true and
correct as of the applicable Funding Date, and the acceptance by Borrower of the
proceeds of any Loans shall constitute a re-certification by Borrower, as of the
applicable Funding Date, as to the matters to which Borrower is required to
certify in the applicable Notice of Borrowing.

                  Except as otherwise provided in subsections 2.6B, 2.6C and
2.6G, a Notice of Borrowing for, or a Notice of Conversion/Continuation for
conversion to, or continuation of, a LIBOR Rate Loan (or telephonic notice in
lieu thereof) shall be irrevocable, and Borrower shall be bound to make a
borrowing or to effect a conversion or continuation in accordance therewith.

                  C. DISBURSEMENT OF FUNDS. All Term B Loans, LC Facility Loans,
Supplemental Term Loans and Revolving Loans shall be made by Lenders
simultaneously and proportionately to their respective Pro Rata Shares, it being
understood that neither Administrative Agent nor any Lender shall be responsible
for any default by any other Lender in that other Lender's obligation to make a
Loan requested hereunder nor shall the Commitment of any Lender to make the
particular type of Loan requested be increased or decreased as a result of a
default by any other Lender in that other Lender's obligation to make a Loan
requested hereunder. Promptly after receipt by Administrative Agent of a Notice
of Borrowing pursuant to subsection 2.1B (or telephonic notice in lieu thereof),
Administrative Agent shall notify each Lender for that type of Loan of the
proposed borrowing. Each such Lender shall make the amount of its Loan available
to Administrative Agent not later than 2:00 P.M. (New York City time) on the
applicable Funding Date, in same day funds in Dollars, at the Funding and
Payment

                                       40
<PAGE>

Office. Except as provided in subsection 2.1A(iii) or subsection 3.3B with
respect to Revolving Loans used to repay Refunded Swing Line Loans or to
reimburse any Revolving Issuing Lender or LC Facility Issuing Lender, as the
case may be, for the amount of a drawing under a Revolving Letter of Credit or
LC Facility Letter of Credit, as the case may be, issued by it and with respect
to any Swing Line Loans, upon satisfaction or waiver of the conditions precedent
specified in subsections 4.1 (in the case of Loans made on the Closing Date) and
4.3 (in the case of all Loans), Administrative Agent shall make the proceeds of
such Loans available to Borrower on the applicable Funding Date, in same day
funds in Dollars equal to the proceeds of all such Loans received by
Administrative Agent from Lenders. In the case of Swing Line Loans, upon
satisfaction or waiver of the conditions precedent specified in subsection 4.3,
Swing Line Lender shall make the amount of its Swing Line Loan available to
Borrower not later than 2:00 P.M. (New York City time) on the applicable Funding
Date, in same day funds in Dollars and pursuant to the instructions in the
Notice of Borrowing for such Swing Line Loan.

                  Unless Administrative Agent shall have been notified by any
Lender prior to a Funding Date for any Loans that such Lender does not intend to
make available to Administrative Agent the amount of such Lender's Loan
requested on such Funding Date, Administrative Agent may assume that such Lender
has made such amount available to Administrative Agent on such Funding Date and
Administrative Agent may, in its sole discretion, but shall not be obligated to,
make available to Borrower a corresponding amount on such Funding Date. If such
corresponding amount is not in fact made available to Administrative Agent by
such Lender, Administrative Agent shall be entitled to recover such
corresponding amount on demand from such Lender together with interest thereon,
for each day from such Funding Date until the date such amount is paid to
Administrative Agent, at the customary rate set by Administrative Agent for the
correction of errors among banks for three Business Days and thereafter at the
Base Rate. If such Lender does not pay such corresponding amount forthwith upon
Administrative Agent's demand therefor, Administrative Agent shall promptly
notify Borrower and Borrower shall immediately pay such corresponding amount to
Administrative Agent together with interest thereon, for each day from such
Funding Date until the date such amount is paid to Administrative Agent, at the
rate payable under this Agreement for Base Rate Loans. Nothing in this
subsection 2.1C shall be deemed to relieve any Lender from its obligation to
fulfill its Commitments hereunder or to prejudice any rights that Borrower may
have against any Lender as a result of any default by such Lender hereunder.

                  D. THE REGISTER.

                  Administrative Agent, acting for these purposes solely as an
agent of Borrower (it being acknowledged that Administrative Agent, in such
capacity, and its officers, directors, employees, agent and affiliates shall
constitute Indemnitees under subsection 10.3), shall maintain (and make
available for inspection by Borrower and Lenders upon reasonable prior notice at
reasonable times) at its address referred to in subsection 10.8 a register for
the recordation of, and shall record, the names and addresses of Lenders and the
Term B Loan Commitment, LC Facility Commitment, Supplemental Term Loan
Commitment, Revolving Loan Commitment, Swing Line Loan Commitment, Term B Loan,
LC Facility Loans, Supplemental Term Loans, Revolving Loans and Swing Line Loans
of each Lender from time to time (the "REGISTER"). Borrower, Administrative
Agent and Lenders shall deem and treat the

                                       41
<PAGE>

Persons listed as Lenders in the Register as the holders and owners of the
corresponding Commitments and Loans listed therein for all purposes hereof; all
amounts owed with respect to any Commitment or Loan shall be owed to the Lender
listed in the Register as the owner thereof; and any request, authority or
consent of any Person who, at the time of making such request or giving such
authority or consent, is listed in the Register as a Lender shall be conclusive
and binding on any subsequent holder, assignee or transferee of the
corresponding Commitments or Loans. Each Lender shall record on its internal
records (and make available for inspection by Administrative Agent upon
reasonable prior notice) the amount of its Loans and Commitments and each
payment in respect hereof, and any such recordation shall be conclusive and
binding on Borrower, absent manifest error, subject to the entries in the
Register, which shall, absent manifest error, govern in the event of any
inconsistency with any Lender's records. Failure to make any recordation in the
Register or in any Lender's records, or any error in such recordation, shall not
affect any Loans or Commitments or any Obligations in respect of any Loans.

                  E. NOTES. At the request of any Lender, Borrower shall execute
and deliver (i) on the Closing Date (1) to such Lender (a) a Term B Note
substantially in the form of Exhibit IV annexed hereto to evidence any such
Lender's Term B Loan, in the principal amount of that Lender's Term B Loan and
with other appropriate insertions, (b) a Revolving Note substantially in the
form of Exhibit VI annexed hereto to evidence any such Revolving Lender's
Revolving Loans, in the principal amount of that Lender's Revolving Loan
Commitment and with other appropriate insertions and (c) a LC Facility Note
substantially in the form of Exhibit VIII annexed hereto to evidence any such
Lender's LC Facility Loans, in the principal amount of that LC Facility Lender's
LC Facility Loan Commitment, and (2) to Swing Line Lender a Swing Line Note
substantially in the form of Exhibit VII annexed hereto to evidence Swing Line
Lender's Swing Line Loans, in the principal amount of the Swing Line Loan
Commitment and with other appropriate insertions and (ii) on the date of the
making of each Supplemental Term Loan, a Supplemental Term Note substantially in
the form of Exhibit V annexed hereto to evidence any such Lender's Supplemental
Term Loan, in the principal amount of that Lender's Supplemental Term Loan and
with other appropriate insertions.

                  Administrative Agent may deem and treat the payee of any Note
as the owner thereof for all purposes hereof unless and until an Assignment
Agreement effecting the assignment or transfer thereof shall have been accepted
by Administrative Agent as provided in subsection 10.1B(ii). Any request,
authority or consent of any person or entity who, at the time of making such
request or giving such authority or consent, is the holder of any Note shall be
conclusive and binding on any subsequent holder, assignee or transferee of that
Note or of any Note or Notes issued in exchange therefor.

         2.2      INTEREST ON THE LOANS.

                  A. RATE OF INTEREST. Subject to the provisions of subsections
2.6 and 2.7, each Term B Loan, each Supplemental Term Loan, each LC Facility
Loan and each Revolving Loan shall bear interest on the unpaid principal amount
thereof from the date made through maturity (whether by acceleration or
otherwise) at a rate determined by reference to the Base Rate or the Adjusted
LIBOR Rate. Subject to the provisions of subsection 2.7, each Swing Line Loan
shall bear interest on the unpaid principal amount thereof from the date made
through

                                       42
<PAGE>

maturity (whether by acceleration or otherwise) at a rate determined by
reference to the Base Rate. The applicable basis for determining the rate of
interest with respect to any Term B Loan, any Supplemental Term Loan or any
Revolving Loan shall be selected by Borrower initially at the time a Notice of
Borrowing is given with respect to such Loan pursuant to subsection 2.1B, and
the basis for determining the interest rate with respect to any Term B Loan, any
Supplemental Term Loan or any Revolving Loan may be changed from time to time
pursuant to subsection 2.2D. If on any day a Term B Loan, Supplemental Term Loan
or Revolving Loan is outstanding with respect to which notice has not been
delivered to Administrative Agent in accordance with the terms of this Agreement
specifying the applicable basis for determining the rate of interest, then for
that day that Loan shall bear interest determined by reference to the Base Rate.

                  (i) Subject to the provisions of subsections 2.2E, 2.2G and
         2.7, the Revolving Loans shall bear interest through maturity as
         follows:

                           (a) if a Base Rate Loan, then at the sum of the Base
                  Rate plus the Base Rate Margin set forth in the table below
                  opposite the Consolidated Leverage Ratio for the four Fiscal
                  Quarter period for which the applicable Pricing Certificate
                  has been delivered pursuant to subsection 6.1(iv); or

                           (b) if a LIBOR Rate Loan, then at the sum of the
                  Adjusted LIBOR Rate plus the LIBOR Rate Margin set forth in
                  the table below opposite the Consolidated Leverage Ratio for
                  the four Fiscal Quarter period for which the applicable
                  Pricing Certificate has been delivered pursuant to subsection
                  6.1(iv):

<Table>
<Caption>
                                               CONSOLIDATED              LIBOR RATE              BASE
                                              LEVERAGE RATIO               MARGIN             RATE MARGIN
                                              --------------             ----------           -----------
<S>                                          <C>                        <C>                  <C>
Greater than
or equal to                                      3.50:1.00                  3.50%                2.25%

Greater than or equal to                         3.00:1.00
but less than                                    3.50:1.00                  3.25%                2.00%

Less than                                        3.00:1.00                  3.00%                1.75%
</Table>

         ; provided that, until the delivery of the Pricing Certificate for the
         second Fiscal Quarter ending after the Closing Date, the applicable
         margin for Revolving Loans that are LIBOR Rate Loans shall be 3.50% per
         annum and for Revolving Loans that are Base Rate Loans shall be 2.25%
         per annum.

                  (ii) Subject to the provisions of subsections 2.2E, 2.2G and
         2.7, the Term B Loans and the LC Facility Loans shall bear interest
         through maturity as follows:

                                       43
<PAGE>

                           (a) if a Base Rate Loan, then at the sum of the Base
                  Rate plus the Base Rate Margin set forth in the table below
                  opposite the Consolidated Leverage Ratio for the four Fiscal
                  Quarter period for which the applicable Pricing Certificate
                  has been delivered pursuant to subsection 6.1(iv); or

                           (b) if a LIBOR Rate Loan, then at the sum of the
                  Adjusted LIBOR Rate plus the LIBOR Rate Margin set forth in
                  the table below opposite the Consolidated Leverage Ratio for
                  the four Fiscal Quarter period for which the applicable
                  Pricing Certificate has been delivered pursuant to subsection
                  6.1(iv):

<Table>
<Caption>
                                                 CONSOLIDATED                 LIBOR RATE               BASE
                                                LEVERAGE RATIO                  MARGIN              RATE MARGIN
                                                --------------                ----------            -----------
<S>                                           <C>                            <C>                   <C>
         Greater than
         or equal to                              3.50:1.00                     4.00%                  2.75%

         Less than                                3.50:1.00                     3.75%                  2.50%
</Table>

         ; provided that, until the delivery of the Pricing Certificate for the
         second Fiscal Quarter ending after the Closing Date, the applicable
         margin for Term B Loans and the LC Facility Loan that are LIBOR Rate
         Loans shall be 4.00% per annum and for Term B Loans that are Base Rate
         Loans shall be 2.75% per annum.

                  (iii) Subject to the provisions of subsections 2.2E, 2.2G and
         2.7, the Supplemental Term Loans shall bear interest through maturity
         at a rate agreed among Borrower, the Lenders making such Supplemental
         Term Loans and Administrative Agent and as permitted by subsection
         2.1A(iv), and this subsection 2.2A(iii) shall be deemed amended on each
         date Supplemental Term Loans are made to set forth herein the interest
         rate borne by such Loans.

                  (iv) Upon delivery of the Pricing Certificate by Borrower to
         Administrative Agent pursuant to subsection 6.1(iv), the Base Rate
         Margin and the LIBOR Rate Margin shall automatically be adjusted in
         accordance with such Pricing Certificate, such adjustment to become
         effective on the next succeeding Business Day following the receipt by
         Administrative Agent of such Pricing Certificate (subject to the
         provisions of the foregoing clauses (i) and (ii)); provided that, if at
         any time a Pricing Certificate is not delivered at the time required
         pursuant to subsection 6.1(iv), from the time such Pricing Certificate
         was required to be delivered until delivery of such Pricing
         Certificate, the applicable margins shall be the maximum percentage
         amount for the relevant Loan set forth above.

                  (v) Subject to the provisions of subsections 2.2E, 2.2G and
         2.7, the Swing Line Loans shall bear interest through maturity at the
         sum of the Base Rate plus the applicable Base Rate Margin for Revolving
         Loans.

                                       44
<PAGE>

                  B. INTEREST PERIODS. In connection with each LIBOR Rate Loan,
Borrower may, pursuant to the applicable Notice of Borrowing or Notice of
Conversion/Continuation, as the case may be, select an interest period (each an
"INTEREST PERIOD") to be applicable to such Loan, which Interest Period shall
be, at Borrower's option, either a one, two, three or six month period or, (x)
if deposits in the London interbank market are available for all Lenders for
such period (as determined by Administrative Agent) or (y) if such deposits are
not available for certain Lenders, with the consent of each such Lender, a nine
or twelve month period; provided that:

                  (i) the initial Interest Period for any LIBOR Rate Loan shall
         commence on the Funding Date in respect of such Loan, in the case of a
         Loan initially made as a LIBOR Rate Loan, or on the date specified in
         the applicable Notice of Conversion/Continuation, in the case of a Loan
         converted to a LIBOR Rate Loan;

                  (ii) in the case of immediately successive Interest Periods
         applicable to a LIBOR Rate Loan continued as such pursuant to a Notice
         of Conversion/Continuation, each successive Interest Period shall
         commence on the day on which the next preceding Interest Period
         expires;

                  (iii) if an Interest Period would otherwise expire on a day
         that is not a Business Day, such Interest Period shall expire on the
         next succeeding Business Day; provided that, if any Interest Period
         would otherwise expire on a day that is not a Business Day but is a day
         of the month after which no further Business Day occurs in such month,
         such Interest Period shall expire on the next preceding Business Day;

                  (iv) any Interest Period that begins on the last Business Day
         of a calendar month (or on a day for which there is no numerically
         corresponding day in the calendar month at the end of such Interest
         Period) shall, subject to clause (v) of this subsection 2.2B, end on
         the last Business Day of a calendar month;

                  (v) no Interest Period with respect to any portion of the Term
         B Loans shall extend beyond the Term B Loan Maturity Date, no Interest
         Period with respect to any Supplemental Term Loan shall extend beyond
         the Supplemental Term Loan Availability Expiration Date, and no
         Interest Period with respect to any portion of the Revolving Loans
         shall extend beyond the Revolving Loan Commitment Termination Date;

                  (vi) no Interest Period with respect to any type of Term B
         Loans shall extend beyond a date on which Borrower is required to make
         a scheduled payment of principal of such type of Term B Loans, unless
         the sum of (a) the aggregate principal amount of such type of Term B
         Loans that are Base Rate Loans plus (b) the aggregate principal amount
         of such type of Term B Loans that are LIBOR Rate Loans with Interest
         Periods expiring on or before such date equals or exceeds the principal
         amount required to be paid on such type of Term B Loans on such date;

                  (vii) no Interest Period with respect to any type of
         Supplemental Term Loans shall extend beyond a date on which Borrower is
         required to make a scheduled payment of principal of such type of
         Supplemental Term Loans, unless the sum of (a) the

                                       45
<PAGE>

         aggregate principal amount of such type of Supplemental Term Loans that
         are Base Rate Loans plus (b) the aggregate principal amount of such
         type of Supplemental Term Loans that are LIBOR Rate Loans with Interest
         Periods expiring on or before such date equals or exceeds the principal
         amount required to be paid on such type of Supplemental Term Loans on
         such date;

                  (viii) no Interest Period with respect to any portion of the
         Revolving Loans shall extend beyond the date on which a permanent
         reduction of the Revolving Loan Commitments is scheduled to occur
         unless the sum of (a) the aggregate principal amount of Revolving Loans
         that are Base Rate Loans plus (b) the aggregate principal amount of
         Revolving Loans that are LIBOR Rate Loans with Interest Periods
         expiring on or before such date plus (c) the excess of the Revolving
         Loan Commitments then in effect over the aggregate principal amount of
         Revolving Loans then outstanding equals or exceeds the permanent
         reduction of the Revolving Loan Commitments that is scheduled to occur
         on such date;

                  (ix) there shall be no more than 8 Interest Periods
         outstanding at any time; and

                  (x) in the event Borrower fails to specify an Interest Period
         for any LIBOR Rate Loan in the applicable Notice of Borrowing or Notice
         of Conversion/Continuation, Borrower shall be deemed to have selected
         an Interest Period of one month.

                  C. INTEREST PAYMENTS. Subject to the provisions of subsection
2.2E, interest on each Loan shall be payable in arrears on and to each Interest
Payment Date applicable to that Loan, upon any prepayment of that Loan (to the
extent accrued on the amount being prepaid) and at maturity (including final
maturity); provided that in the event any Swing Line Loans or any Revolving
Loans that are Base Rate Loans are prepaid pursuant to subsection 2.4B(i),
interest accrued on such Loans through the date of such prepayment shall be
payable on the next succeeding Interest Payment Date applicable to Base Rate
Loans (or, if earlier, at final maturity).

                  D. CONVERSION OR CONTINUATION. Subject to the provisions of
subsection 2.6, Borrower shall have the option (i) to convert at any time all or
any part of its outstanding Term B Loans, Supplemental Term Loans, LC Facility
Loans or Revolving Loans equal to $2,500,000 and multiples of $500,000 in excess
of that amount from Loans bearing interest at a rate determined by reference to
one basis to Loans bearing interest at a rate determined by reference to an
alternative basis or (ii) upon the expiration of any Interest Period applicable
to a LIBOR Rate Loan, to continue all or any portion of such Loan equal to
$2,500,000 and multiples of $500,000 in excess of that amount as a LIBOR Rate
Loan; provided, however, that a LIBOR Rate Loan may only be converted into a
Base Rate Loan on the expiration date of an Interest Period applicable thereto.

                  Borrower shall deliver a duly executed Notice of
Conversion/Continuation to Administrative Agent no later than 12:00 Noon (New
York City time) at least one Business Day in advance of the proposed conversion
date (in the case of a conversion to a Base Rate Loan) and at least three
Business Days in advance of the proposed conversion/continuation date (in the
case of a conversion to, or a continuation of, a LIBOR Rate Loan). In lieu of
delivering a Notice of

                                       46
<PAGE>

Conversion/Continuation, Borrower may give Administrative Agent telephonic
notice by the required time of any proposed conversion/continuation under this
subsection 2.2D; provided that such notice shall be promptly confirmed in
writing by delivery of a duly executed Notice of Conversion/Continuation to
Administrative Agent on or before the proposed conversion/continuation date.
Upon receipt of written or telephonic notice of any proposed
conversion/continuation under this subsection 2.2D, Administrative Agent shall
promptly notify each Lender of the Loan subject to the Notice of
Conversion/Continuation.

                  E. DEFAULT RATE. Upon the occurrence and during the
continuation of any Event of Default, the outstanding principal amount of all
Loans and, to the extent permitted by applicable law, any interest payments
thereon not paid when due and any fees and other amounts then due and payable
hereunder, shall thereafter bear interest (including post-petition interest in
any proceeding under the Bankruptcy Code or other applicable bankruptcy laws)
payable upon demand at a rate that is 2% per annum in excess of the interest
rate otherwise payable under this Agreement with respect to the applicable Loans
(or, in the case of any such fees and other amounts, at a rate which is 2% per
annum in excess of the interest rate otherwise payable under this Agreement for
Base Rate Loans); provided that, in the case of LIBOR Rate Loans, upon the
expiration of the Interest Period in effect at the time any such increase in
interest rate is effective such LIBOR Rate Loans shall thereupon become Base
Rate Loans and shall thereafter bear interest payable upon demand at a rate
which is 2% per annum in excess of the interest rate otherwise payable under
this Agreement for Base Rate Loans. Payment or acceptance of the increased rates
of interest provided for in this subsection 2.2E is not a permitted alternative
to timely payment and shall not constitute a waiver of any Event of Default or
otherwise prejudice or limit any rights or remedies of Administrative Agent or
any Lender.

                  F. COMPUTATION OF INTEREST. Interest on the Loans shall be
computed on the basis of a 360-day year, in each case for the actual number of
days elapsed in the period during which it accrues. In computing interest on any
Loan, the date of the making of such Loan or the first day of an Interest Period
applicable to such Loan or, with respect to a Base Rate Loan being converted
from a LIBOR Rate Loan, the date of conversion of such LIBOR Rate Loan to such
Base Rate Loan, as the case may be, shall be included, and the date of payment
of such Loan or the expiration date of an Interest Period applicable to such
Loan or, with respect to a Base Rate Loan being converted to a LIBOR Rate Loan,
the date of conversion of such Base Rate Loan to such LIBOR Rate Loan, as the
case may be, shall be excluded; provided that if a Loan is repaid on the same
day on which it is made, one day's interest shall be paid on that Loan.

                  G. MAXIMUM RATE. Notwithstanding the foregoing provisions of
this subsection 2.2, in no event shall the rate of interest payable by Borrower
with respect to any Loan exceed the maximum rate of interest permitted to be
charged under applicable law.

         2.3      FEES.

                  A. COMMITMENT FEES. Borrower agrees to pay to Administrative
Agent, for distribution to each Revolving Lender in proportion to that Lender's
Pro Rata Share, commitment fees for the period from and including the Closing
Date to and excluding the Revolving Loan Commitment Termination Date equal to
the average of the daily excess of the

                                       47
<PAGE>

Revolving Loan Commitments over the sum of (i) the aggregate principal amount of
outstanding Revolving Loans (but not any outstanding Swing Line Loans) plus (ii)
the Revolving Letter of Credit Usage multiplied by a rate per annum equal to the
percentage set forth in the table below opposite the Consolidated Leverage Ratio
for the four Fiscal Quarter period for which the applicable Pricing Certificate
has been delivered pursuant to subsection 6.1(iv):

<Table>
<Caption>
                               CONSOLIDATED                          COMMITMENT
                              LEVERAGE RATIO                       FEE PERCENTAGE
<S>                                                             <C>
                          3.00:1.00 or greater                          0.50%
                          Less than 3.00:1.00                          0.375%
</Table>

such commitment fees to be calculated on the basis of a 360-day year and the
actual number of days elapsed and to be payable quarterly in arrears on the last
Business Day of March, June, September and December of each year, commencing on
the first such date to occur after the Closing Date, and on the Revolving Loan
Commitment Termination Date; provided that until the delivery of the Pricing
Certificate for the second Fiscal Quarter ending after the Closing Date, the
applicable commitment fee percentage shall be 0.50% per annum. Upon delivery of
the Pricing Certificate by Borrower to Administrative Agent pursuant to
subsection 6.1(iv), the applicable commitment fee percentage shall automatically
be adjusted in accordance with such Pricing Certificate, such adjustment to
become effective on the next succeeding Business Day following the receipt by
Administrative Agent of such Pricing Certificate; provided that, if at any time
a Pricing Certificate is not delivered at the time required pursuant to
subsection 6.1(iv), from the time such Pricing Certificate was required to be
delivered until delivery of such Pricing Certificate, the applicable commitment
fee percentage shall be the maximum percentage amount set forth above.

                  B. Supplemental Term Loan Fees. Borrower agrees to pay to
Administrative Agent on each date of the making of Supplemental Term Loans for
distribution to each Lender making a Supplemental Term Loan on such date, in
accordance with its Pro Rata Share, a fee in an amount agreed upon by Borrower
and the Lenders making Supplemental Term Loans on such date.

                  C. OTHER FEES. Borrower agrees to pay to Administrative Agent
such fees in the amounts and at the times separately agreed upon between
Borrower and Administrative Agent or Co-Arrangers, as the case may be.

         2.4      REPAYMENTS, PREPAYMENTS AND REDUCTIONS IN REVOLVING LOAN
                  COMMITMENTS; GENERAL PROVISIONS REGARDING PAYMENTS;
                  APPLICATION OF PROCEEDS OF COLLATERAL AND PAYMENTS UNDER
                  GUARANTIES.

                  A. SCHEDULED PAYMENTS OF TERM B LOANS. Borrower shall make
principal payments on the Term B Loans in installments on the dates and in the
amounts set forth below:

                                       48
<PAGE>

<Table>
<Caption>
                                                               SCHEDULED REPAYMENT OF
                           DATE                                     TERM B LOANS
                           ----                                ----------------------
<S>                                                            <C>
                  March 31, 2003                                   $      325,000
                  June 30, 2003                                    $      325,000
                  September 30, 2003                               $      325,000
                  December 31, 2003                                $      325,000
                  March 31, 2004                                   $      325,000
                  June 30, 2004                                    $      325,000
                  September 30, 2004                               $      325,000
                  December 31, 2004                                $      325,000
                  March 31, 2005                                   $      325,000
                  June 30, 2005                                    $      325,000
                  September 30, 2005                               $      325,000
                  December 31, 2005                                $      325,000
                  March 31, 2006                                   $      325,000
                  June 30, 2006                                    $      325,000
                  September 30, 2006                               $      325,000
                  December 31, 2006                                $      325,000
                  March 31, 2007                                   $      325,000
                  June 30, 2007                                    $      325,000
                  September 30, 2007                               $      325,000
                  December 31, 2007                                $      325,000
                  March 31, 2008                                   $      325,000
                  June 30, 2008                                    $      325,000
                  September 30, 2008                               $      325,000
                  December 31, 2008                                $      325,000
                  March 31, 2009                                   $   30,550,000
                  June 30, 2009                                    $   30,550,000
                  September 30, 2009                               $   30,550,000
                  Term B Loan Maturity Date                        $   30,550,000
                                                                   --------------
                  TOTAL:                                           $  130,000,000
</Table>

                                       49
<PAGE>

; provided that the scheduled installments of principal of the Term B Loans set
forth above shall be reduced in connection with any voluntary or mandatory
prepayments of the Term B Loans in accordance with subsection 2.4B(iv); and
provided, further, that the Term B Loans and all other amounts owed hereunder
with respect to the Term B Loans shall be paid in full no later than the Term B
Loan Maturity Date, and the final installment payable by Borrower in respect of
the Term B Loans on such date shall be in an amount, if such amount is different
from that specified above, sufficient to repay all amounts owing by Borrower
under this Agreement with respect to the Term B Loans.

                  B. PREPAYMENTS AND UNSCHEDULED REDUCTIONS IN COMMITMENTS.

                  (i) Voluntary Prepayments. Borrower may, upon written or
         telephonic notice to Administrative Agent on or prior to 12:00 Noon
         (New York City time) on the date of prepayment, which notice, if
         telephonic, shall be promptly confirmed in writing, at any time and
         from time to time prepay any Swing Line Loan on any Business Day in
         whole or in part in an aggregate minimum amount of $500,000 and
         multiples of $100,000 in excess of that amount. Borrower may, upon not
         less than one Business Day's prior written or telephonic notice, in the
         case of Base Rate Loans, and three Business Days' prior written or
         telephonic notice, in the case of LIBOR Rate Loans, in each case given
         to Administrative Agent by 12:00 Noon (New York City time) on the date
         required and, if given by telephone, promptly confirmed in writing to
         Administrative Agent (who shall promptly notify each Lender for the
         Loans to be prepaid), at any time and from time to time prepay any
         Loans on any Business Day in whole or in part in an aggregate minimum
         amount of (a) for Term Loans, $2,500,000 and multiples of $500,000 in
         excess of that amount and (b) for Revolving Loans, $1,000,000 and
         multiples of $500,000 in excess of that amount; provided, however, that
         a LIBOR Rate Loan may only be prepaid on the expiration of the Interest
         Period applicable thereto unless Borrower pays on such date of
         prepayment all amounts owing to Lenders under subsection 2.6D. Notice
         of prepayment having been given as aforesaid shall be irrevocable and
         the principal amount of the Loans specified in such notice shall become
         due and payable on the prepayment date specified therein. Any such
         voluntary prepayment shall be applied as specified in subsection
         2.4B(iv).

                  (ii) Voluntary Reductions of Commitments. Borrower may, upon
         not less than three Business Days' prior written or telephonic notice
         confirmed in writing to Administrative Agent (who shall promptly notify
         each Revolving Lender or LC Facility Lender, as the case may be, of
         such notice), at any time and from time to time terminate in whole or
         permanently reduce in part, without premium or penalty, (a) the
         Revolving Loan Commitments in an amount up to the amount by which the
         Revolving Loan Commitments exceed the Total Utilization of Revolving
         Loan Commitments at the time of such proposed termination or reduction;
         provided that any such partial reduction of the Revolving Loan
         Commitments shall be in an aggregate minimum amount of $1,000,000 and
         multiples of $500,000 in excess of that amount and (b) the LC Facility
         Commitments in an amount up to the amount by which the LC Facility
         Commitments exceed the Total Utilization of LC Facility Commitments at
         the time of such proposed termination or

                                       50
<PAGE>

         reduction; provided that any such partial reduction of the LC Facility
         Commitments shall be in an aggregate minimum amount of $2,500,000 and
         multiples of $500,000 in excess of that amount. Borrower's notice to
         Administrative Agent shall designate the date (which shall be a
         Business Day) of such termination or reduction and the amount of any
         partial reduction, and such termination or reduction of the Revolving
         Loan Commitments or LC Facility Commitment, as the case may be, shall
         be effective on the date specified in Borrower's notice and shall
         reduce the Revolving Loan Commitment or LC Facility Commitment, as the
         case may be, of each Revolving Lender or LC Facility Lender,
         respectively, proportionately to its Pro Rata Share. Any such voluntary
         reduction of the Revolving Loan Commitments or LC Facility Commitment,
         as the case may be, shall be applied as specified in subsection
         2.4B(iv).

                  (iii) Mandatory Prepayments and Mandatory Reductions of
         Revolving Loan Commitments. The Loans shall be prepaid and/or the
         Revolving Loan Commitments and/or the LC Facility Commitment as the
         case may be, shall be permanently reduced in the amounts and under the
         circumstances set forth below, all such prepayments and/or reductions
         to be applied as set forth below or as more specifically provided in
         subsection 2.4B(iv):

                           (a) Prepayments and Reductions From Net Asset Sale
                  Proceeds. Within 3 Business Days of receipt by Parent or any
                  of its Subsidiaries of any Net Asset Sale Proceeds in respect
                  of Asset Sales in an aggregate amount in excess of $3,000,000
                  in any Fiscal Year (any such Net Asset Sale Proceeds being the
                  "REPAYABLE NET ASSET SALE PROCEEDS"), Borrower shall either
                  (1) prepay the Loans and/or the Revolving Loan Commitments
                  and/or the LC Facility Commitment, as the case may be, shall
                  be permanently reduced in an aggregate amount equal to such
                  Net Asset Sale Proceeds or (2) so long as no Potential Event
                  of Default or Event of Default shall have occurred and be
                  continuing, deliver to Administrative Agent an Officer's
                  Certificate setting forth (x) that portion of such Net Asset
                  Sale Proceeds that Parent or such Subsidiary intends to
                  reinvest in equipment or other productive assets of the
                  general type used in the business of Parent and its
                  Subsidiaries within 365 days of such date of receipt and (y)
                  the proposed use of such portion of the Net Asset Sale
                  Proceeds and such other information with respect to such
                  reinvestment as Administrative Agent may reasonably request,
                  and Parent shall, or shall cause one or more of its
                  Subsidiaries to, promptly and diligently apply such portion to
                  such reinvestment purposes; provided, however, that pending
                  such reinvestment, such portion of the Net Asset Sale Proceeds
                  shall be applied to prepay outstanding Revolving Loans
                  (without a reduction in Revolving Loan Commitments) to the
                  full extent thereof. In addition, Borrower shall, no later
                  than 365 days after receipt of such Net Asset Sale Proceeds
                  that have not theretofore been applied to the Obligations or
                  that have not been so reinvested as provided above, make an
                  additional prepayment of the Loans (and/or the Revolving Loan
                  Commitments and/or the LC Facility Commitments, as the case
                  may be, shall be permanently reduced) in the full amount of
                  all such Net Asset Sale Proceeds.

                                       51
<PAGE>

                           (b) Prepayments and Reductions from Net
                  Insurance/Condemnation Proceeds. No later than the third
                  Business Day following the date of receipt by Administrative
                  Agent or by Parent or any of its Subsidiaries of any Net
                  Insurance/Condemnation Proceeds that are required to be
                  applied to prepay the Loans and/or reduce the Revolving Loan
                  Commitments and/or the LC Facility Commitment, as the case may
                  be, pursuant to the provisions of subsection 6.4C, Borrower
                  shall prepay the Loans and/or the Revolving Loan Commitments
                  shall be permanently reduced in an aggregate amount equal to
                  the amount of such Net Insurance/Condemnation Proceeds.

                           (c) Prepayments and Reductions Due to Issuance of
                  Equity Securities. On the first Business Day following receipt
                  by Parent (or, solely in the case of clause (z) below,
                  Holdings) or any of its Subsidiaries of the Cash proceeds (any
                  such proceeds, net of underwriting discounts and commissions
                  and other reasonable costs and expenses associated therewith,
                  including reasonable legal fees and expenses, being "NET
                  EQUITY SECURITIES PROCEEDS") from (x) the issuance of any
                  equity Securities of Parent or any of its Subsidiaries, (y)
                  from any capital contribution to Parent by any holder of
                  equity Securities thereof (other than Net Equity Securities
                  Proceeds from any capital contribution to Parent by Holdings
                  with the proceeds of equity Securities issued by Holdings to
                  the Equity Investors) or (z) from the initial public offering
                  of equity Securities of Holdings or any successors thereto,
                  Borrower shall apply an aggregate amount equal to 50% of such
                  Net Securities Proceeds to prepay the Loans and/or the
                  Revolving Loan Commitments and/or the LC Facility Commitments,
                  as the case may be, shall be permanently reduced; provided
                  that if the Applicable Consolidated Leverage Ratio is less
                  than 3.00:1.00 at the time of such issuance (after giving pro
                  forma effect to the intended application of such proceeds), no
                  portion of such Net Equity Securities Proceeds shall be
                  required to be prepaid (except as shall be prepaid in such
                  intended application).

                           (d) Prepayments and Reductions Due to Issuance of
                  Debt Securities. On the first Business Day following receipt
                  by Parent or any of its Subsidiaries of the Cash proceeds (any
                  such proceeds, net of underwriting discounts and commissions
                  and other reasonable costs and expenses associated therewith,
                  including reasonable legal fees and expenses, being "NET DEBT
                  SECURITIES PROCEEDS") from the issuance of any debt Securities
                  of Parent or any of its Subsidiaries (other than Indebtedness
                  permitted pursuant to subsection 7.1), Borrower shall prepay
                  the Loans and/or the Revolving Loan Commitments and/or the LC
                  Facility Commitment, as the case may be, shall be permanently
                  reduced in an aggregate amount equal to such Net Debt
                  Securities Proceeds.

                           (e) Prepayments and Reductions from Consolidated
                  Excess Cash Flow. In the event that there shall be
                  Consolidated Excess Cash Flow for any Fiscal Year (commencing
                  with Fiscal Year 2003), Borrower shall, no later than 90 days
                  (the "EXCESS CASH FLOW PAYMENT DATE") (or no later than 5
                  Business Days after any earlier date on which Borrower may be
                  required to deliver year-

                                       52
<PAGE>

                  end financial statements pursuant to subsection 6.1(iii);
                  provided that such date is no later than the Excess Cash Flow
                  Payment Date) after the end of such Fiscal Year, prepay the
                  Loans and/or the Revolving Loan Commitments and/or the LC
                  Facility Commitments, as the case may be, shall be permanently
                  reduced in an aggregate amount equal to 50% of such
                  Consolidated Excess Cash Flow; provided that for any Fiscal
                  Year in which the Applicable Consolidated Leverage Ratio as at
                  the last day thereof is less than 3.00:1.00, no portion of the
                  Consolidated Excess Cash Flow shall be required to be prepaid;
                  and provided, further, that such mandatory prepayment shall be
                  required only in an amount equal to the amount necessary to
                  reduce the Applicable Consolidated Leverage Ratio, as at the
                  last day of the immediately preceding Fiscal Year, to
                  3.00:1.00.

                           (f) Calculations of Net Proceeds Amounts; Additional
                  Prepayments and Reductions Based on Subsequent Calculations.
                  Concurrently with any prepayment of the Loans and/or reduction
                  of the Revolving Loan Commitments and/or the LC Facility
                  Commitments, as the case may be, pursuant to subsections
                  2.4B(iii)(a)-(e), Borrower shall deliver to Administrative
                  Agent an Officer's Certificate demonstrating the calculation
                  of the amount of the applicable Net Asset Sale Proceeds, Net
                  Insurance/Condemnation Proceeds, Net Equity Securities
                  Proceeds, Net Debt Securities Proceeds or Consolidated Excess
                  Cash Flow, as the case may be, that gave rise to such
                  prepayment and/or reduction. In the event that Borrower shall
                  subsequently determine that the actual amount was greater than
                  the amount set forth in such Officer's Certificate, Borrower
                  shall promptly make an additional prepayment of the Loans
                  (and/or, if applicable, the Revolving Loan Commitments and/or
                  the LC Facility Commitment, as the case may be, shall be
                  permanently reduced) in an amount equal to the amount of such
                  excess, and Borrower shall concurrently therewith deliver to
                  Administrative Agent an Officer's Certificate demonstrating
                  the derivation of the additional amount resulting in such
                  excess.

                           (g) Prepayments Due to Reductions or Restrictions of
                  Revolving Loan Commitments. Borrower shall from time to time
                  prepay first the Swing Line Loans and second the Revolving
                  Loans to the extent necessary so that the Total Utilization of
                  Revolving Loan Commitments shall not at any time exceed the
                  Revolving Loan Commitments then in effect.

                           (h) Prepayments Due to Reductions or Restrictions of
                  LC Facility Commitments. Borrower shall from time to time
                  prepay the LC Facility Loans to the extent necessary so that
                  the Total Utilization of LC Commitments shall not at any time
                  exceed the LC Facility Commitments then in effect.

                  (iv) Application of Prepayments.

                           (a) Application of Voluntary Prepayments by Type of
                  Loans and Order of Maturity. Any voluntary prepayments
                  pursuant to subsection 2.4B(i) shall be applied as specified
                  by Borrower in the applicable notice of prepayment;

                                       53
<PAGE>

                  provided that in the event Borrower fails to specify the Loans
                  to which any such prepayment shall be applied, such prepayment
                  shall be applied first to repay outstanding Swing Line Loans
                  to the full extent thereof, second to repay outstanding
                  Revolving Loans and/or LC Facility Loans, as the case may be,
                  to the full extent thereof, and third to repay outstanding
                  Term Loans to the full extent thereof. Any voluntary
                  prepayments of the Revolving Loans and the LC Facility Loans
                  pursuant to subsection 2.4B(i) shall be applied to prepay the
                  Revolving Loans and the LC Facility Loans on a pro rata basis
                  (in accordance with the respective outstanding principal
                  amounts thereof). Any voluntary prepayments of the Term Loans
                  pursuant to subsection 2.4B(i) shall be applied to prepay the
                  Term B Loans and the Supplemental Term Loans on a pro rata
                  basis (in accordance with the respective outstanding principal
                  amounts thereof) and to reduce the scheduled installments of
                  principal of the Term B Loans and the Supplemental Term Loans
                  set forth in subsections 2.4A on a pro rata basis (in
                  accordance with the respective outstanding principal amounts
                  thereof) to each remaining scheduled installment of principal
                  of the Term B Loans and the Supplemental Term Loans, as the
                  case may be, set forth in subsections 2.4A, respectively.

                           (b) Application of Mandatory Prepayments by Type of
                  Loans. Except as provided in subsection 2.4D, any amount
                  required to be applied as a mandatory prepayment of the Loans
                  and/or a reduction of the Revolving Loan Commitments pursuant
                  to subsections 2.4B(iii)(a)-(f) shall be applied first to
                  prepay the Term Loans to the full extent thereof, second, to
                  the extent of any remaining portion of such amount, to prepay
                  the Swing Line Loans to the full extent thereof and to
                  permanently reduce the Revolving Loan Commitments by the
                  amount of such prepayment, third, to the extent of any
                  remaining portion of such amount, to prepay the Revolving
                  Loans and/or the LC Facility Loans, as the case may be, to the
                  full extent thereof and to further permanently reduce the
                  Revolving Loan Commitments, and/or the LC Facility Commitments
                  as the case may be, by the amount of such prepayment, and
                  fourth, to the extent of any remaining portion of such amount,
                  to further permanently reduce the Revolving Loan Commitments
                  and/or the LC Facility Commitments, as the case may be, to the
                  full extent thereof. Any mandatory reduction of Revolving
                  Commitments and/or LC Facility Commitment, as the case may be,
                  pursuant to this subsection 2.4B shall be in proportion to
                  each Revolving Lender's Pro Rata Share and LC Facility Lender,
                  respectively.

                           (c) Application of Mandatory Prepayments of Term
                  Loans to Term B Loans and Supplemental Term Loans and the
                  Scheduled Installments of Principal Thereof. Any mandatory
                  prepayments of the Term Loans pursuant to subsection 2.4B(iii)
                  shall be applied to prepay the Term B Loans and the
                  Supplemental Term Loans on a pro rata basis (in accordance
                  with the respective outstanding principal amounts thereof) and
                  shall be applied to reduce the scheduled installments of
                  principal of the Term B Loans or the Supplemental

                                       54
<PAGE>

                  Term Loans, as the case may be, set forth in subsection 2.4A,
                  respectively, on a pro rata basis (in accordance with the
                  respective outstanding principal amounts thereof) to each
                  remaining scheduled installment of principal of the Term B
                  Loans and the Supplemental Term Loans, as the case may be, set
                  forth in subsections 2.4A, that is unpaid at the time of such
                  prepayment.

                           (d) Application of Mandatory Prepayments of Revolving
                  Loans and LC Facility Loans. Any mandatory prepayments of the
                  Revolving Loans or the LC Facility Loans, as the case may be,
                  pursuant to subsection 2.4B(iii) shall be applied to prepay
                  the Revolving Loans and the LC Facility Loans on a pro rata
                  basis (in accordance with the respective outstanding principal
                  amounts thereof).

                           (e) Application of Prepayments to Base Rate Loans and
                  LIBOR Rate Loans. Considering Term B Loans, Supplemental Term
                  Loans, Revolving Loans and LC Facility Loans being prepaid
                  separately, any prepayment thereof shall be applied first to
                  Base Rate Loans to the full extent thereof before application
                  to LIBOR Rate Loans, in each case in a manner that minimizes
                  the amount of any payments required to be made by Borrower
                  pursuant to subsection 2.6D.

                  C. GENERAL PROVISIONS REGARDING PAYMENTS.

                  (i) Manner and Time of Payment. All payments by Borrower of
         principal, interest, fees and other Obligations shall be made in
         Dollars in same day funds, without defense, setoff or counterclaim,
         free of any restriction or condition, and delivered to Administrative
         Agent not later than 12:00 Noon (New York City time) on the date due at
         the Funding and Payment Office for the account of Lenders; funds
         received by Administrative Agent after that time on such due date shall
         be deemed to have been paid by Borrower on the next succeeding Business
         Day. Borrower hereby authorizes Administrative Agent to charge any
         accounts Administrative Agent may have in Borrower's name in order to
         cause timely payment to be made to Administrative Agent of all
         principal, interest, fees and expenses due hereunder (subject to
         sufficient funds being available in its accounts for that purpose).

                  (ii) Application of Payments to Principal and Interest. Except
         as provided in subsection 2.2C, all payments in respect of the
         principal amount of any Loan shall include payment of accrued interest
         on the principal amount being repaid or prepaid, and all such payments
         (and, in any event, any payments in respect of any Loan on a date when
         interest is due and payable with respect to such Loan) shall be applied
         to the payment of interest before application to principal.

                  (iii) Apportionment of Payments. Aggregate principal and
         interest payments in respect of Term Loans, LC Facility Loans, LC
         Facility Loans and Revolving Loans shall be apportioned among all
         outstanding Loans to which such payments relate, in each case
         proportionately to Lenders' respective Pro Rata Shares. Administrative
         Agent shall promptly distribute to each Lender its Pro Rata Share of
         all such payments received by Administrative Agent and the commitment
         fees of such Lender, if any, when received by

                                       55
<PAGE>

         Administrative Agent pursuant to subsection 2.3. Notwithstanding the
         foregoing provisions of this subsection 2.4C(iii), if, pursuant to the
         provisions of subsection 2.6C, any Notice of Conversion/Continuation is
         withdrawn as to any Affected Lender or if any Affected Lender makes
         Base Rate Loans in lieu of its Pro Rata Share of any LIBOR Rate Loans,
         Administrative Agent shall give effect thereto in apportioning payments
         received thereafter.

                  (iv) Payments on Business Days. Whenever any payment to be
         made hereunder shall be stated to be due on a day that is not a
         Business Day, such payment shall be made on the preceding Business Day.

                  (v) Notation of Payment. Each Lender agrees that before
         disposing of any Note held by it, or any part thereof (other than by
         granting participations therein), that Lender will make a notation
         thereon of all Loans evidenced by that Note and all principal payments
         previously made thereon and of the date to which interest thereon has
         been paid; provided that the failure to make (or any error in the
         making of) a notation of any Loan made under such Note shall not limit
         or otherwise affect the obligations of Borrower hereunder or under such
         Note with respect to any Loan or any payments of principal or interest
         on such Note.

                  D. APPLICATION OF PROCEEDS OF COLLATERAL AND PAYMENTS AFTER
EVENT OF DEFAULT.

                  Upon the occurrence and during the continuation of an Event of
Default, either if requested by Requisite Lenders or upon termination of the
Revolving Loan Commitments (a) all payments received on account of the
Obligations, whether from Borrower, from any Guarantor or otherwise, shall be
applied by Administrative Agent against the Obligations and (b) all proceeds
received by Administrative Agent in respect of any sale of, collection from, or
other realization upon all or any part of the Collateral under any Collateral
Document may, in the discretion of Administrative Agent, be held by
Administrative Agent as Collateral for, and/or (then or at any time thereafter)
applied in full or in part by Administrative Agent against, the applicable
Secured Obligations (as defined in such Collateral Document), in each case in
the following order of priority:

                  (i) to the payment of all costs and expenses of such sale,
         collection or other realization, all other expenses, liabilities and
         advances made or incurred by Administrative Agent in connection
         therewith, and all amounts for which Administrative Agent is entitled
         to compensation (including the fees described in subsection 2.3),
         reimbursement and indemnification under any Loan Document and all
         advances made by Administrative Agent thereunder for the account of the
         applicable Loan Party, and to the payment of all costs and expenses
         paid or incurred by Administrative Agent in connection with the Loan
         Documents, all in accordance with subsections 9.4, 10.2 and 10.3 and
         the other terms of this Agreement and the Loan Documents;

                  (ii) thereafter, to the payment of all other Obligations for
         the ratable benefit of the holders thereof (subject to the provisions
         of subsection 2.4C(ii) hereof); and

                                       56
<PAGE>

                  (iii) thereafter, to the payment to or upon the order of such
         Loan Party or to whosoever may be lawfully entitled to receive the same
         or as a court of competent jurisdiction may direct.

         2.5      USE OF PROCEEDS.

                  A. TERM B LOANS. The proceeds of the Term B Loans shall be
applied by Borrower to (i) (a) repay existing Indebtedness outstanding under the
Existing Credit Agreement in the aggregate principal amount of approximately
$20,000,000, plus accrued and unpaid interest thereon and (b) redeem certain
Existing Notes (collectively, the "REFINANCING"), (ii) repurchase the Existing
Preferred Stock (the "EXISTING PREFERRED STOCK PURCHASE"), and (iii) pay
Transaction Costs.

                  B. REVOLVING LOANS; LETTER OF CREDIT FACILITY LOANS; SWING
LINE LOANS. The proceeds of (x) any Revolving Loans made on the Closing Date
shall be applied to fund a portion of the Refinancing and (y) any Revolving
Loans, any Letter of Credit Facility Loans and any Swing Line Loans made after
the Closing Date shall be applied by Borrower for working capital and other
general corporate purposes, which may include the making of intercompany loans
to any of Borrower's Subsidiaries, in accordance with subsection 7.1(iv), for
their own general corporate purposes and to finance Permitted Acquisitions.

                  C. SUPPLEMENTAL TERM LOANS. The proceeds of the Supplemental
Term Loans shall be used solely to finance Permitted Acquisitions.

                  D. MARGIN REGULATIONS. No portion of the proceeds of any
borrowing under this Agreement shall be used by Borrower or any of its
Subsidiaries in any manner that might cause the borrowing or the application of
such proceeds to violate Regulation U, Regulation T or Regulation X of the Board
of Governors of the Federal Reserve System or any other regulation of such Board
or to violate the Exchange Act, in each case as in effect on the date or dates
of such borrowing and such use of proceeds.

         2.6      SPECIAL PROVISIONS GOVERNING LIBOR RATE LOANS.

                  Notwithstanding any other provision of this Agreement to the
contrary, the following provisions shall govern with respect to LIBOR Rate Loans
as to the matters covered:

                  A. DETERMINATION OF APPLICABLE INTEREST RATE. As soon as
practicable after 10:00 A.M. (New York City time) on each Interest Rate
Determination Date, Administrative Agent shall determine (which determination
shall, absent manifest error, be conclusive and binding upon all parties) the
interest rate that shall apply to the LIBOR Rate Loans for which an interest
rate is then being determined for the applicable Interest Period and shall
promptly give notice thereof (in writing or by telephone confirmed in writing)
to Borrower and each Lender.

                  B. INABILITY TO DETERMINE APPLICABLE INTEREST RATE. In the
event that Administrative Agent shall have determined (which determination shall
be conclusive and binding upon all parties hereto), on any Interest Rate
Determination Date that by reason of

                                       57
<PAGE>

circumstances affecting the London interbank market adequate and fair means do
not exist for ascertaining the interest rate applicable to such Loans on the
basis provided for in the definition of Adjusted LIBOR Rate, Administrative
Agent shall on such date give notice (by telefacsimile or by telephone confirmed
in writing) to Borrower and each Lender of such determination, whereupon (i) no
Loans may be made as, or converted to, LIBOR Rate Loans until such time as
Administrative Agent notifies Borrower and Lenders that the circumstances giving
rise to such notice no longer exist and (ii) any Notice of Borrowing or Notice
of Conversion/Continuation given by Borrower with respect to the Loans in
respect of which such determination was made shall be deemed to be for a Base
Rate Loan.

                  C. ILLEGALITY OR IMPRACTICABILITY OF LIBOR RATE LOANS. In the
event that on any date any Lender shall have determined (which determination
shall be conclusive and binding upon all parties hereto but shall be made only
after consultation with Borrower and Administrative Agent) that the making,
maintaining or continuation of its LIBOR Rate Loans (i) has become unlawful as a
result of compliance by such Lender in good faith with any law, treaty,
governmental rule, regulation, guideline or order (or would conflict with any
such treaty, governmental rule, regulation, guideline or order not having the
force of law even though the failure to comply therewith would not be unlawful)
or (ii) has become impracticable, or would cause such Lender material hardship,
as a result of contingencies occurring after the date of this Agreement which
materially and adversely affect the London interbank market or the position of
such Lender in that market, then, and in any such event, such Lender shall be an
"AFFECTED LENDER" and it shall on that day give notice (by telefacsimile or by
telephone confirmed in writing) to Borrower and Administrative Agent of such
determination (which notice Administrative Agent shall promptly transmit to each
other Lender). Thereafter (a) the obligation of the Affected Lender to make
Loans as, or to convert Loans to, LIBOR Rate Loans shall be suspended until such
notice shall be withdrawn by the Affected Lender, (b) to the extent such
determination by the Affected Lender relates to a LIBOR Rate Loan then being
requested by Borrower pursuant to a Notice of Borrowing or a Notice of
Conversion/Continuation, the Affected Lender shall make such Loan as (or convert
such Loan to, as the case may be) a Base Rate Loan, (c) the Affected Lender's
obligation to maintain its outstanding LIBOR Rate Loans (the "AFFECTED LOANS")
shall be terminated at the earlier to occur of the expiration of the Interest
Period then in effect with respect to the Affected Loans or when required by
law, and (d) the Affected Loans shall automatically convert into Base Rate Loans
on the date of such termination. Notwithstanding the foregoing, to the extent a
determination by an Affected Lender as described above relates to a LIBOR Rate
Loan then being requested by Borrower pursuant to a Notice of Borrowing or a
Notice of Conversion/Continuation, Borrower shall have the option, subject to
the provisions of subsection 2.6D, to rescind such Notice of Borrowing or Notice
of Conversion/Continuation as to all Lenders by giving notice (by telefacsimile
or by telephone confirmed in writing) to Administrative Agent of such rescission
on the date on which the Affected Lender gives notice of its determination as
described above (which notice of rescission Administrative Agent shall promptly
transmit to each other Lender). Except as provided in the immediately preceding
sentence, nothing in this subsection 2.6C shall affect the obligation of any
Lender other than an Affected Lender to make or maintain Loans as, or to convert
Loans to, LIBOR Rate Loans in accordance with the terms of this Agreement.

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                  D. COMPENSATION FOR BREAKAGE OR NON-COMMENCEMENT OF INTEREST
PERIODS. Borrower shall compensate each Lender, upon written request by that
Lender pursuant to subsection 2.8, for all reasonable losses, expenses and
liabilities (including any interest paid by that Lender to lenders of funds
borrowed by it to make or carry its LIBOR Rate Loans and any loss, expense or
liability sustained by that Lender in connection with the liquidation or
re-employment of such funds) which that Lender may sustain: (i) if for any
reason (other than a default by that Lender) a borrowing of any LIBOR Rate Loan
does not occur on a date specified therefor in a Notice of Borrowing or a
telephonic request therefor, or a conversion to or continuation of any LIBOR
Rate Loan does not occur on a date specified therefor in a Notice of
Conversion/Continuation or a telephonic request therefor, (ii) if any prepayment
or other principal payment or any conversion of any of its LIBOR Rate Loans
(including any prepayment or conversion occasioned by the circumstances
described in subsection 2.6C) occurs on a date prior to the last day of an
Interest Period applicable to that Loan, (iii) if any prepayment of any of its
LIBOR Rate Loans is not made on any date specified in a notice of prepayment
given by Borrower, or (iv) as a consequence of any other default by Borrower in
the repayment of its LIBOR Rate Loans when required by the terms of this
Agreement.

                  E. BOOKING OF LIBOR RATE LOANS. Any Lender may make, carry or
transfer LIBOR Rate Loans at, to, or for the account of any of its branch
offices or the office of an Affiliate of that Lender.

                  F. ASSUMPTIONS CONCERNING FUNDING OF LIBOR RATE LOANS.
Calculation of all amounts payable to a Lender under this subsection 2.6 and
under subsection 2.7A shall be made as though that Lender had funded each of its
LIBOR Rate Loans through the purchase of a LIBOR deposit bearing interest at the
rate obtained pursuant to clause (i) of the definition of Adjusted LIBOR Rate in
an amount equal to the amount of such LIBOR Rate Loan and having a maturity
comparable to the relevant Interest Period, whether or not its LIBOR Rate Loans
had been funded in such manner.

                  G. LIBOR RATE LOANS AFTER DEFAULT. After the occurrence of and
during the continuation of a Potential Event of Default or an Event of Default,
(i) Borrower may not have a Loan be made or maintained as, or converted to, a
LIBOR Rate Loan after the expiration of any Interest Period then in effect for
that Loan and (ii) subject to the provisions of subsection 2.6D, any Notice of
Borrowing or Notice of Conversion/Continuation given by Borrower with respect to
a requested borrowing or conversion/continuation that has not yet occurred shall
be deemed to be for a Base Rate Loan or, if the conditions to making a Loan set
forth in subsection 4.3 cannot then be satisfied, to be rescinded by Borrower.

         2.7      INCREASED COSTS; TAXES; CAPITAL ADEQUACY.

                  A. COMPENSATION FOR INCREASED COSTS. Subject to the provisions
of subsection 2.7B (which shall be controlling with respect to the matters
covered thereby), in the event that any Lender (including any Issuing Lender)
shall determine (which determination shall, absent manifest error, be final and
conclusive and binding upon all parties hereto) that any law, treaty or
governmental rule, regulation or order, or any change therein or in the
interpretation, administration or application thereof (including the
introduction of any new law, treaty or

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governmental rule, regulation or order), or any determination of a court or
other Government Authority, in each case that becomes effective after the date
hereof, or compliance by such Lender with any guideline, request or directive
issued or made after the date hereof by any central bank or other Government
Authority (whether or not having the force of law):

                  (i) subjects such Lender to any additional Tax with respect to
         this Agreement or any of its obligations hereunder (including with
         respect to issuing or maintaining any Letters of Credit or purchasing
         or maintaining any participations therein or maintaining any Commitment
         hereunder) or any payments to such Lender of principal, interest, fees
         or any other amount payable hereunder;

                  (ii) imposes, modifies or holds applicable any reserve,
         special deposit, compulsory loan, insurance charge or similar
         requirement against assets held by, or deposits or other liabilities in
         or for the account of, or advances or loans by, or other credit
         extended by, or any other acquisition of funds by, any office of such
         Lender (other than any such reserve or other requirements with respect
         to LIBOR Rate Loans that are reflected in the definition of LIBOR
         Rate); or

                  (iii) imposes any other condition (other than with respect to
         Taxes) on or affecting such Lender or its obligations hereunder or the
         London interbank market;

and the result of any of the foregoing is to increase the cost to such Lender of
agreeing to make, making or maintaining its Loans or Commitments or agreeing to
issue, issuing or maintaining any Letter of Credit or agreeing to purchase,
purchasing or maintaining any participation therein or to reduce any amount
received or receivable by such Lender with respect thereto; then, in any such
case, Borrower shall promptly pay to such Lender, upon receipt of the statement
referred to in subsection 2.8A, such additional amount or amounts (in the form
of an increased rate of, or a different method of calculating, interest or
otherwise as such Lender in its sole discretion shall determine) as may be
necessary to compensate such Lender for any such increased cost or reduction in
amounts received or receivable hereunder.

                  B. TAXES.

                  (i) Payments to Be Free and Clear. All sums payable by
         Borrower under this Agreement and the other Loan Documents shall be
         paid free and clear of, and without any deduction or withholding on
         account of, any Tax imposed, levied, collected, withheld or assessed by
         or within the United States of America or any political subdivision in
         or of the United States of America or any other jurisdiction from or to
         which a payment is made by or on behalf of Borrower or by any
         federation or organization of which the United States of America or any
         such jurisdiction is a member at the time of payment.

                  (ii) Grossing-up of Payments. If Borrower or any other Person
         is required by law to make any deduction or withholding on account of
         any such Tax from any sum paid or payable by Borrower to Administrative
         Agent or any Lender under any of the Loan Documents:

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<PAGE>

                           (a) Borrower shall notify Administrative Agent of any
                  such requirement or any change in any such requirement as soon
                  as Borrower becomes aware of it;

                           (b) Borrower shall pay any such Tax when such Tax is
                  due, such payment to be made (if the liability to pay is
                  imposed on Borrower) for its own account or (if that liability
                  is imposed on Administrative Agent or such Lender, as the case
                  may be) on behalf of and in the name of Administrative Agent
                  or such Lender;

                           (c) the sum payable by Borrower in respect of which
                  the relevant deduction, withholding or payment is required
                  shall be increased to the extent necessary to ensure that,
                  after the making of that deduction, withholding or payment,
                  Administrative Agent or such Lender, as the case may be,
                  receives on the due date a net sum equal to what it would have
                  received had no such deduction, withholding or payment been
                  required or made; and

                           (d) within 30 days after paying any sum from which it
                  is required by law to make any deduction or withholding, and
                  within 30 days after the due date of payment of any Tax which
                  it is required by clause (b) above to pay, Borrower shall
                  deliver to Administrative Agent evidence satisfactory to the
                  other affected parties of such deduction, withholding or
                  payment and of the remittance thereof to the relevant taxing
                  or other authority;

provided that no such additional amount shall be required to be paid to any
Lender under clause (c) above except to the extent that any change after the
date on which such Lender became a Lender in any such requirement for a
deduction, withholding or payment as is mentioned therein shall result in an
increase in the rate of such deduction, withholding or payment from that in
effect on the date on which such Lender became a Lender, in respect of payments
to such Lender.

         (iii) Evidence of Exemption from U.S. Withholding Tax.

                           (a) Each Non-US Lender shall deliver to
                  Administrative Agent and to Borrower, on or prior to the
                  Closing Date (in the case of each Lender listed on the
                  signature pages hereof) or on or prior to the date of the
                  Assignment Agreement pursuant to which it becomes a Lender (in
                  the case of each other Lender), and at such other times as may
                  be necessary in the determination of Borrower or
                  Administrative Agent (each in the reasonable exercise of its
                  discretion), two original copies of Internal Revenue Service
                  Form W-8BEN or W-8ECI (or any successor forms) properly
                  completed and duly executed by such Lender, or, in the case of
                  a Non-US Lender claiming exemption from United States federal
                  withholding tax under Section 871(h) or 881(c) of the Internal
                  Revenue Code with respect to payments of "portfolio interest",
                  a form W-8BEN, and, in the case of a Lender that has certified
                  in writing to Administrative Agent that it is not a "bank" (as
                  defined in Section 881(c)(3)(A) of the Internal Revenue Code),
                  a certificate of

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<PAGE>

                  such Lender certifying that such Lender is not (i) a "bank"
                  for purposes of Section 881(c) of the Internal Revenue Code,
                  (ii) a ten-percent shareholder (within the meaning of Section
                  871(h)(3)(B) of the Internal Revenue Code) of Borrower or
                  Parent or (iii) a controlled foreign corporation related to
                  Borrower (within the meaning of Section 864(d)(4) of the
                  Internal Revenue Code) in each case together with any other
                  certificate or statement of exemption required under the
                  Internal Revenue Code or the regulations issued thereunder to
                  establish that such Lender is not subject to United States
                  withholding tax with respect to any payments to such Lender of
                  interest payable under any of the Loan Documents.

                           (b) Each Non-US Lender, to the extent it does not act
                  or ceases to act for its own account with respect to any
                  portion of any sums paid or payable to such Lender under any
                  of the Loan Documents (for example, in the case of a typical
                  participation by such Lender), shall deliver to Administrative
                  Agent and to Borrower, on or prior to the Closing Date (in the
                  case of each Lender listed on the signature pages hereof), on
                  or prior to the date of the Assignment Agreement pursuant to
                  which it becomes a Lender (in the case of each other Lender),
                  or on such later date when such Lender ceases to act for its
                  own account with respect to any portion of any such sums paid
                  or payable, and at such other times as may be necessary in the
                  determination of Borrower or Administrative Agent (each in the
                  reasonable exercise of its discretion), (1) two original
                  copies of the forms or statements required to be provided by
                  such Lender under subsection 2.7B(iii)(a), properly completed
                  and duly executed by such Lender, to establish the portion of
                  any such sums paid or payable with respect to which such
                  Lender acts for its own account that is not subject to United
                  States withholding tax, and (2) two original copies of
                  Internal Revenue Service Form W-8IMY (or any successor forms)
                  properly completed and duly executed by such Lender, together
                  with any information, if any, such Lender chooses to transmit
                  with such form, and any other certificate or statement of
                  exemption required under the Internal Revenue Code or the
                  regulations issued thereunder, to establish that such Lender
                  is not acting for its own account with respect to a portion of
                  any such sums payable to such Lender.

                           (c) Each Non-US Lender hereby agrees, from time to
                  time after the initial delivery by such Lender of such forms,
                  whenever a lapse in time or change in circumstances renders
                  such forms, certificates or other evidence so delivered
                  obsolete or inaccurate in any material respect, that such
                  Lender shall promptly (1) deliver to Administrative Agent and
                  to Borrower two original copies of renewals, amendments or
                  additional or successor forms, properly completed and duly
                  executed by such Lender, together with any other certificate
                  or statement of exemption required in order to confirm or
                  establish that such Lender is not subject to United States
                  withholding tax with respect to payments to such Lender under
                  the Loan Documents and, if applicable, that such Lender does
                  not act for its own account with respect to any portion of
                  such payment, or (2) notify Administrative

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<PAGE>

                  Agent and Borrower of its inability to deliver any such forms,
                  certificates or other evidence.

                           (d) Borrower shall not be required to pay any
                  additional amount to any Non-US Lender under clause (c) of
                  subsection 2.7B(ii), (1) with respect to any Tax required to
                  be deducted or withheld on the basis of the information,
                  certificates or statements of exemption such Lender chooses to
                  transmit with an Internal Revenue Service Form W-8IMY pursuant
                  to subsection 2.7B(iii)(b)(2) or (2) if such Lender shall have
                  failed to satisfy the requirements of clause (a), (b) or
                  (c)(1) of this subsection 2.7B(iii); provided that if such
                  Lender shall have satisfied the requirements of subsection
                  2.7B(iii)(a) on the date such Lender became a Lender, nothing
                  in this subsection 2.7B(iii)(d) shall relieve Borrower of its
                  obligation to pay any amounts pursuant to subsection
                  2.7B(ii)(c) in the event that, as a result of any change in
                  any applicable law, treaty or governmental rule, regulation or
                  order, or any change in the interpretation, administration or
                  application thereof, such Lender is no longer properly
                  entitled to deliver forms, certificates or other evidence at a
                  subsequent date establishing the fact that such Lender is not
                  subject to withholding as described in subsection
                  2.7B(iii)(a).

                  C. CAPITAL ADEQUACY ADJUSTMENT. If any Lender shall have
determined that the adoption, effectiveness, phase-in or applicability after the
date hereof of any law, rule or regulation (or any provision thereof) regarding
capital adequacy, or any change therein or in the interpretation or
administration thereof by any Government Authority charged with the
interpretation or administration thereof, or compliance by any Lender with any
guideline, request or directive regarding capital adequacy (whether or not
having the force of law) of any such Government Authority, has or would have the
effect of reducing the rate of return on the capital of such Lender or any
corporation controlling such Lender as a consequence of, or with reference to,
such Lender's Loans or Commitments or Letters of Credit or participations
therein or other obligations hereunder with respect to the Loans or the Letters
of Credit to a level below that which such Lender or such controlling
corporation could have achieved but for such adoption, effectiveness, phase-in,
applicability, change or compliance (taking into consideration the policies of
such Lender or such controlling corporation with regard to capital adequacy),
then from time to time, within five Business Days after receipt by Borrower from
such Lender of the statement referred to in subsection 2.8A, Borrower shall pay
to such Lender such additional amount or amounts as will compensate such Lender
or such controlling corporation on an after-tax basis for such reduction.

         2.8      STATEMENT OF LENDERS; OBLIGATION OF LENDERS AND ISSUING
                  LENDERS TO MITIGATE.

                  A. STATEMENTS. Each Lender claiming compensation or
reimbursement pursuant to subsection 2.6D, 2.7 or 2.8B shall deliver to Borrower
(with a copy to Administrative Agent) a written statement, setting forth in
reasonable detail the basis of the calculation of such compensation or
reimbursement, which statement shall be conclusive and binding upon all parties
hereto absent manifest error.

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<PAGE>

                  B. MITIGATION. Each Lender and Issuing Lender agrees that, as
promptly as practicable after the officer of such Lender or Issuing Lender
responsible for administering the Loans or Letters of Credit of such Lender or
Issuing Lender, as the case may be, becomes aware of the occurrence of an event
or the existence of a condition that would cause such Lender to become an
Affected Lender or that would entitle such Lender or Issuing Lender to receive
payments under subsection 2.7, use reasonable effort to make, issue, fund or
maintain the Commitments of such Lender or the Affected Loans or Letters of
Credit of such Lender or Issuing Lender through another lending or letter of
credit office of such Lender or Issuing Lender, if (i) as a result thereof the
circumstances which would cause such Lender to be an Affected Lender would cease
to exist or the additional amounts which would otherwise be required to be paid
to such Lender or Issuing Lender pursuant to subsection 2.7 would be materially
reduced and (ii) as determined by such Lender or Issuing Lender in its sole
discretion, such action would not otherwise be disadvantageous to such Lender or
Issuing Lender; provided that such Lender or Issuing Lender will not be
obligated to utilize such other lending or letter of credit office pursuant to
this subsection 2.8B unless Borrower agrees to pay all incremental expenses
incurred by such Lender or Issuing Lender as a result of utilizing such other
lending or letter of credit office as described above.

         2.9      REPLACEMENT OF A LENDER.

                  If Borrower receives a statement of amounts due pursuant to
subsection 2.8A from a Lender, a Revolving Lender defaults in its obligations to
fund a Revolving Loan pursuant to this Agreement, a Lender (a "NON-CONSENTING
LENDER") refuses to consent to an amendment, modification or waiver of this
Agreement that, pursuant to subsection 10.6, requires consent of 100% of the
Lenders (and such amendment, modification or waiver shall have been approved by
Requisite Lenders) or 100% of the Lenders with Obligations directly affected or
a Lender becomes an Affected Lender (any such Lender, a "SUBJECT LENDER"), so
long as (i) no Event of Default shall have occurred and be continuing and
Borrower has obtained a commitment from another Lender or an Eligible Assignee
to purchase at par the Subject Lender's Loans and assume the Subject Lender's
Commitments and all other obligations of the Subject Lender hereunder, (iii)
such Lender is not an Issuing Lender with respect to any Letters of Credit
outstanding (unless all such Letters of Credit are terminated or arrangements
acceptable to such Issuing Lender (such as a "back-to-back" letter of credit)
are made) and (iv), if applicable, the Subject Lender is unwilling to withdraw
the notice delivered to Borrower pursuant to subsection 2.8 and/or is unwilling
to remedy its default upon 10 days prior written notice to the Subject Lender
and Administrative Agent, Borrower may require the Subject Lender to assign all
of its Loans and Commitments to such other Lender, Lenders, Eligible Assignee or
Eligible Assignees pursuant to the provisions of subsection 10.1B; provided
that, prior to or concurrently with such replacement, (1) the Subject Lender
shall have received payment in full of all principal, interest, fees and other
amounts (including all amounts under subsections 2.6D, 2.7 and/or 2.8B (if
applicable)) through such date of replacement and a release from its obligations
under the Loan Documents, (2) the processing fee required to be paid by
subsection 10.1B(i) shall have been paid to Administrative Agent, and (3) all of
the requirements for such assignment contained in subsection 10.1B, including,
without limitation, the consent of Administrative Agent (if required) and the
receipt by Administrative Agent of an executed

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Assignment Agreement and other supporting documents, have been fulfilled, and
(4) in the event such Subject Lender is a Non-Consenting Lender, each assignee
shall consent, at the time of such assignment, to each matter in respect of
which such Subject Lender was a Non-Consenting Lender and Borrower also requires
each other Subject Lender that is a Non-Consenting Lender to assign its Loans
and Commitments.

SECTION 3. LETTERS OF CREDIT

         3.1      ISSUANCE OF LETTERS OF CREDIT AND LENDERS' PURCHASE OF
                  PARTICIPATIONS THEREIN.

                  A. LETTERS OF CREDIT.

                  (i) Revolving Letters of Credit. In addition to Borrower
         requesting that Revolving Lenders make Revolving Loans pursuant to
         subsection 2.1A(ii) and that Swing Line Lender make Swing Line Loans
         pursuant to subsection 2.1A(iii), Borrower may request, in accordance
         with the provisions of this subsection 3.1, from time to time during
         the period from the Closing Date to but excluding the 30th day prior to
         the Revolving Loan Commitment Termination Date, that one or more
         Revolving Lenders issue Revolving Letters of Credit payable on a sight
         basis for the account of Borrower for the purposes specified in the
         definitions of Commercial Letters of Credit and Standby Letters of
         Credit. Subject to the terms and conditions of this Agreement and in
         reliance upon the representations and warranties of Borrower herein set
         forth, any one or more Revolving Lenders may, but (except as provided
         in subsection 3.1B(ii)) shall not be obligated to, issue such Revolving
         Letters of Credit in accordance with the provisions of this subsection
         3.1; provided that Borrower shall not request that any Revolving Lender
         issue (and no Revolving Lender shall issue):

                           (a) any Revolving Letter of Credit if, after giving
                  effect to such issuance, the Total Utilization of Revolving
                  Loan Commitments would exceed the Revolving Loan Commitments
                  then in effect;

                           (b) any Revolving Letter of Credit if, after giving
                  effect to such issuance, the Revolving Letter of Credit Usage
                  would exceed $20,000,000;

                           (c) any Standby Letter of Credit having an expiration
                  date later than the earlier of (1) ten days prior to the
                  Revolving Loan Commitment Termination Date and (2) the date
                  which is one year from the date of issuance of such Standby
                  Letter of Credit; provided that the immediately preceding
                  clause (2) shall not prevent any Revolving Issuing Lender from
                  agreeing that a Standby Letter of Credit will automatically be
                  extended for one or more successive periods not to exceed one
                  year each unless such Revolving Issuing Lender elects not to
                  extend for any such additional period; and provided, further,
                  that such Revolving Issuing Lender shall elect not to extend
                  such Standby Letter of Credit if it has knowledge that an
                  Event of Default has occurred and is continuing (and has not
                  been waived

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<PAGE>

                  in accordance with subsection 10.6) at the time such Revolving
                  Issuing Lender must elect whether or not to allow such
                  extension;

                           (d) any Standby Letter of Credit issued for the
                  purpose of supporting (1) trade payables or (2) any
                  Indebtedness constituting "antecedent debt" (as that term is
                  used in Section 547 of the Bankruptcy Code);

                           (e) any Commercial Letter of Credit having an
                  expiration date (1) later than the earlier of (x) the date
                  which is 30 days prior to the Revolving Loan Commitment
                  Termination Date and (y) the date which is 180 days from the
                  date of issuance of such Commercial Letter of Credit or (2)
                  that is otherwise unacceptable to the applicable Revolving
                  Issuing Lender in its reasonable discretion; or

                           (f) any LC Revolving Letter of Credit denominated in
                  a currency other than Dollars.

                  (ii) Facility Letters of Credit. In addition, Borrower may
         request, in accordance with the provisions of this subsection 3.1, from
         time to time during the period from the Closing Date to but excluding
         the 30th day prior to the Revolving Loan Commitment Termination Date,
         that one or more LC Facility Lenders issue LC Facility Letters of
         Credit payable on a sight basis for the account of Borrower for the
         purposes specified in the definition of Standby Letters of Credit.
         Subject to the terms and conditions of this Agreement and in reliance
         upon the representations and warranties of Borrower herein set forth,
         any one or more LC Facility Lenders may but (except as provided in
         subsection 3.1B(ii)) shall not be obligated to, issue such Letter of
         Credit in accordance with the provisions 3.1; provided that Borrower
         shall not request that any LC Facility Lender issue (and no LC Facility
         Lender shall issue):

                           (a) any LC Facility Letter of Credit if, after giving
                  effect to such issuance, the Total Utilization of LC Facility
                  Commitments would exceed the LC Facility Commitments then in
                  effect;

                           (b) any LC Facility Letter of Credit having an
                  expiration date later than the earlier of (1) ten days prior
                  to the Revolving Loan Commitment Termination Date and (2) the
                  date which is one year from the date of issuance of such LC
                  Facility Letter of Credit; provided that the immediately
                  preceding clause (2) shall not prevent any Issuing Lender from
                  agreeing that a LC Facility Letter of Credit will
                  automatically be extended for one or more successive periods
                  not to exceed one year each unless such LC Facility Issuing
                  Lender elects not to extend for any such additional period;
                  and provided, further, that such LC Facility Issuing Lender
                  shall elect not to extend such LC Facility Letter of Credit if
                  it has knowledge that an Event of Default has occurred and is
                  continuing (and has not been waived in accordance with
                  subsection 10.6) at the time such LC Facility Issuing Lender
                  must elect whether or not to allow such extension; and

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                           (c) any LC Facility Letter of Credit issued for the
                  purpose of supporting (1) trade payables or (2) any
                  Indebtedness constituting "antecedent debt" (as that term is
                  used in Section 547 of the bankruptcy Code); or

                           (d) any LC Facility Letter of Credit denominated in a
                  currency other than Dollars.

                  B. MECHANICS OF ISSUANCE.

                  (i) Request for Issuance. Whenever Borrower desires the
         issuance of a Letter of Credit, it shall deliver to the proposed
         Issuing Lender (with a copy to Administrative Agent if Administrative
         Agent is not the proposed Issuing Lender) a Request for Issuance of
         Letter of Credit, substantially in the form of Exhibit III annexed
         hereto no later than 12:00 Noon (New York City time) at least three
         Business Days (in the case of Standby Letters of Credit) or five
         Business Days (in the case of Commercial Letters of Credit), or in each
         case such shorter period as may be agreed to by the Issuing Lender in
         any particular instance, in advance of the proposed date of issuance.
         The Issuing Lender, in its reasonable discretion, may require changes
         in the text of the proposed Letter of Credit or any documents described
         in or attached to the Request for Issuance. In furtherance of the
         provisions of subsection 10.8, and not in limitation thereof, Borrower
         may submit Requests for Issuance by telefacsimile and Administrative
         Agent and Issuing Lenders may rely and act upon any such Request for
         Issuance without receiving an original signed copy thereof. No Letter
         of Credit shall require payment against a conforming demand for payment
         to be made thereunder on the same business day (under the laws of the
         jurisdiction in which the office of the Issuing Lender to which such
         demand for payment is required to be presented is located) that such
         demand for payment is presented if such presentation is made after
         10:00 A.M. (in the time zone of such office of the Issuing Lender) on
         such business day.

                  (ii) Borrower shall notify the applicable Issuing Lender (and
         Administrative Agent, if Administrative Agent is not such Issuing
         Lender) prior to the issuance of any Letter of Credit in the event that
         any of the matters to which Borrower is required to certify in the
         applicable Request for Issuance is no longer true and correct as of the
         proposed date of issuance of such Letter of Credit, and upon the
         issuance of any Letter of Credit Borrower shall be deemed to have
         re-certified, as of the date of such issuance, as to the matters to
         which Borrower is required to certify in the applicable Request for
         Issuance.

                  (iii) Determination of Issuing Lender. (a) Upon receipt by a
         proposed Revolving Issuing Lender of a Request for Issuance pursuant to
         subsection 3.1B(i) requesting the issuance of a Revolving Letter of
         Credit, (1) in the event Administrative Agent is the proposed Revolving
         Issuing Lender, Administrative Agent shall be the Revolving Issuing
         Lender with respect to such Revolving Letter of Credit, notwithstanding
         the fact that the Revolving Letter of Credit Usage with respect to such
         Revolving Letter of Credit and with respect to all other Revolving
         Letters of Credit issued by Administrative Agent, when aggregated with
         Administrative Agent's

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<PAGE>

         outstanding Revolving Loans and Swing Line Loans, may exceed
         Administrative Agent's Revolving Loan Commitment then in effect; and
         (2) in the event any other Revolving Lender is the proposed Revolving
         Issuing Lender, such Revolving Lender shall promptly notify Borrower
         and Administrative Agent whether or not, in its sole discretion, it has
         elected to issue such Revolving Letter of Credit, and (x) if such
         Revolving Lender so elects to issue such Revolving Letter of Credit it
         shall be the Revolving Issuing Lender with respect thereto and (y) if
         such Revolving Lender fails to so promptly notify Borrower and
         Administrative Agent or declines to issue such Revolving Letter of
         Credit, Borrower may request Administrative Agent or another Revolving
         Lender to be the Revolving Issuing Lender with respect to such
         Revolving Letter of Credit in accordance with the provisions of this
         subsection 3.1B and (b) upon receipt by a proposed LC Facility Issuing
         Lender of a Request for Issuance pursuant to subsection 3.1B(i)
         requesting the issuance of a LC Facility Letter of Credit, (1) in the
         event Administrative Agent is the proposed LC Facility Issuing Lender,
         Administrative Agent shall be the LC Facility Issuing Lender with
         respect to such LC Facility Letter of Credit, notwithstanding the fact
         that the LC Facility Letter of Credit Usage with respect to such LC
         Facility Letter of Credit and with respect to all other LC Facility
         Letters of Credit issued by Administrative Agent, may exceed
         Administrative Agent's LC Facility Loan Commitment then in effect; and
         (2) in the event any other LC Facility Lender is the proposed Issuing
         Lender, such LC Facility Lender shall promptly notify Borrower and
         Administrative Agent whether or not, in its sole discretion, it has
         elected to issue such LC Facility Letter of Credit, and (x) if such LC
         Facility Lender so elects to issue such LC Facility Letter of Credit it
         shall be the LC Facility Issuing Lender with respect thereto and (y) if
         such LC Facility Lender fails to so promptly notify Borrower and
         Administrative Agent or declines to issue such LC Facility Letter of
         Credit, Borrower may request Administrative Agent or another LC
         Facility Lender to be the LC Facility Issuing Lender with respect to
         such LC Facility Letter of Credit in accordance with the provisions of
         this subsection 3.1B.

                  (iv) Issuance of Letter of Credit. Upon satisfaction or waiver
         (in accordance with subsection 10.6) of the conditions set forth in
         subsection 4.4, the Issuing Lender shall issue the requested Letter of
         Credit in accordance with the Issuing Lender's standard operating
         procedures.

                  (v) Notification to Revolving Lenders and LC Facility Lenders.
         Upon the issuance of or amendment to any Letter of Credit the
         applicable Issuing Lender shall promptly notify Administrative Agent
         and Borrower of such issuance or amendment in writing and such notice
         shall be accompanied by a copy of such Letter of Credit or amendment.
         Upon receipt of such notice (or, if Administrative Agent is the Issuing
         Lender, together with such notice), Administrative Agent shall notify
         each Revolving Lender or LC Facility Lender, as the case may be, in
         writing of such issuance or amendment and the amount of such Revolving
         Lender's or LC Facility Lender's, as the case may be, respective
         participation in such Letter of Credit or amendment.

                  C. PURCHASE OF PARTICIPATIONS IN LETTERS OF CREDIT.
Immediately upon the issuance of (i) each Revolving Letter of Credit, each
Revolving Lender shall be deemed to, and

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hereby agrees to, have irrevocably purchased from the Revolving Issuing Lender a
participation in such Revolving Letter of Credit and any drawings honored
thereunder in an amount equal to such Revolving Lender's Pro Rata Share of the
maximum amount that is or at any time may become available to be drawn
thereunder and (ii) each LC Facility Letter of Credit, each LC Facility Lender
shall be deemed to, and hereby agrees to, have irrevocably purchased from the LC
Facility Issuing Lender a participation in such LC Facility Letter of Credit and
any drawings honored thereunder in an amount equal to such LC Facility Lender's
Pro Rata Share of the maximum amount that is or at any time may become available
to be drawn thereunder; provided that any LC Facility Lender may elect to
purchase from such LC Facility Issuing Lender a certificate of deposit (each a
"LC FACILITY CERTIFICATE OF DEPOSIT" and collectively, the "LC FACILITY
CERTIFICATES OF DEPOSIT") for such LC Facility Letter of Credit in an amount
equal to such LC Facility Lender's Pro Rata Share of the maximum amount that is
or at any time may become available to be drawn thereunder, but such purchase of
such LC Facility Certificates of Deposit, if any, shall not in any way limit any
of such LC Facility Lender's obligations under this Agreement including, without
limitation, under subsection 3.3.

Any arrangements with respect to any such LC Certificates of Deposit shall be
reasonably satisfactory to each of the applicable Issuing Lender, the
Administrative Agent and the applicable LC Facility Lender.

         3.2      LETTER OF CREDIT FEES.

                  Borrower agrees to pay the following amounts with respect to
Letters of Credit issued hereunder:

                  (i) with respect to any Revolving Letter of Credit, (a) a
         fronting fee, payable directly to the applicable Revolving Issuing
         Lender for its own account, equal to 0.25% per annum of the daily
         amount available to be drawn under such Revolving Letter of Credit and
         (b) a letter of credit fee, payable to Administrative Agent for the
         account of Revolving Lenders, equal to the applicable LIBOR Rate Margin
         for the Revolving Loans multiplied by the daily amount available to be
         drawn under such Revolving Letter of Credit, each such fronting fee or
         letter of credit fee to be payable in arrears on and to (but excluding)
         the last Business Day of March, June, September and December of each
         year and computed on the basis of a 360-day year for the actual number
         of days elapsed;

                  (ii) with respect to any LC Facility Letter of Credit, (a) a
         fronting fee, payable directly to the applicable LC Facility Issuing
         Lender for its own account, equal to 0.25% per annum of the daily
         amount available to be drawn under such LC Facility Letter of Credit
         and (b) a letter of credit facility fee, payable to Administrative
         Agent for the account of LC Facility Lenders, equal to the applicable
         LIBOR Rate Margin for the Term B Loans multiplied by the daily amount
         of the difference between (x) LC Facility Commitments less (y) any
         outstanding LC Facility Loans, each such fronting fee or letter of
         credit fee to be payable in arrears on and to (but excluding) the last
         Business Day of March, June, September and December of each year and
         computed on the basis of a 360-day year for the actual number of days
         elapsed; and

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                  (iii) with respect to the issuance, amendment or transfer of
         each Letter of Credit and each payment of a drawing made thereunder
         (without duplication of the fees payable under clause (i) above),
         documentary and processing charges payable directly to the applicable
         Issuing Lender for its own account in accordance with such Issuing
         Lender's standard schedule for such charges in effect at the time of
         such issuance, amendment, transfer or payment, as the case may be.

                  (iv) For purposes of calculating any fees payable under clause
         (i) of this subsection 3.2, the daily amount available to be drawn
         under any Letter of Credit shall be determined as of the close of
         business on any date of determination. Promptly upon receipt by
         Administrative Agent of any amount described in clause (i)(b) or clause
         (ii)(b) of this subsection 3.2, Administrative Agent shall distribute
         to each Revolving Lender or LC Facility Lender, as the case may be, its
         Pro Rata Share of such amount.

         3.3      DRAWINGS AND REIMBURSEMENT OF AMOUNTS PAID UNDER LETTERS OF
                  CREDIT.

                  A. RESPONSIBILITY OF ISSUING LENDER WITH RESPECT TO DRAWINGS.
In determining whether to honor any drawing under any Letter of Credit by the
beneficiary thereof, the Issuing Lender shall be responsible only to examine the
documents delivered under such Letter of Credit with reasonable care so as to
ascertain whether they appear on their face to be in accordance with the terms
and conditions of such Letter of Credit.

                  B. REIMBURSEMENT BY BORROWER OF AMOUNTS PAID UNDER LETTERS OF
CREDIT.

                  (i) Reimbursement by Borrower of Amounts Paid Under Revolving
         Letters of Credit. In the event a Revolving Issuing Lender has
         determined to honor a drawing under a Revolving Letter of Credit issued
         by it, such Revolving Issuing Lender shall immediately notify Borrower
         and Administrative Agent, and Borrower shall reimburse such Revolving
         Issuing Lender on "REVOLVING LC REIMBURSEMENT DATE") in an amount in
         Dollars and in same day funds equal to the amount of such payment;
         provided that, anything contained in this Agreement to the contrary
         notwithstanding, (a) unless Borrower shall have notified Administrative
         Agent and such Revolving Issuing Lender prior to 10:00 A.M. (New York
         City time) on the date such drawing is honored that Borrower intends to
         reimburse such Revolving Issuing Lender for the amount of such payment
         with funds other than the proceeds of Revolving Loans, Borrower shall
         be deemed to have given a timely Notice of Borrowing to Administrative
         Agent requesting Revolving Lenders to make Revolving Loans that are
         Base Rate Loans on the Revolving LC Reimbursement Date in an amount in
         Dollars equal to the amount of such payment and (b) subject to
         satisfaction or waiver of the conditions specified in subsection 4.3B,
         Revolving Lenders shall, on the Revolving LC Reimbursement Date, make
         Revolving Loans that are Base Rate Loans in the amount of such payment,
         the proceeds of which shall be applied directly by Administrative Agent
         to reimburse such Revolving Issuing Lender for the amount of such
         payment; and provided, further, that if for any reason proceeds of
         Revolving Loans are not received by such Revolving Issuing Lender on
         the Revolving LC Reimbursement Date in an amount equal to the amount of
         such payment, Borrower shall reimburse such Revolving Issuing Lender,
         on demand, in an amount in

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         same day funds equal to the excess of the amount of such payment over
         the aggregate amount of such Revolving Loans, if any, which are so
         received. Nothing in this subsection 3.3B(i) shall be deemed to relieve
         any Revolving Lender from its obligation to make Revolving Loans on the
         terms and conditions set forth in this Agreement, and Borrower shall
         retain any and all rights it may have against any Revolving Lender
         resulting from the failure of such Revolving Lender to make such
         Revolving Loans under this subsection 3.3B.

                  (ii) Reimbursement by Borrower of Amounts Paid Under LC
         Facility Letters of Credit. In the event a LC Facility Issuing Lender
         has determined to honor a drawing under a LC Facility Letter of Credit
         issued by it, such LC Facility Issuing Lender shall immediately notify
         Borrower and Administrative Agent, and Borrower shall reimburse such LC
         Facility Issuing Lender on or before the Business Day immediately
         following the date on which such drawing is honored (the "LC FACILITY
         LETTER OF CREDIT REIMBURSEMENT DATE") in an amount in Dollars and in
         same day funds equal to the amount of such payment; provided that,
         anything contained in this Agreement to the contrary notwithstanding,
         (a) unless Borrower shall have notified Administrative Agent and such
         LC Credit Facility Issuing Lender prior to 10:00 A.M. (New York City
         time) on the date such drawing is honored that Borrower intends to
         reimburse such LC Facility Issuing Lender for the amount of such
         payment with funds other than the proceeds of LC Facility Loans,
         Borrower shall be deemed to have given a timely Notice of Borrowing to
         Administrative Agent requesting LC Facility Issuing Lenders to make LC
         Facility Loans that are Base Rate Loans on the LC Facility Letter of
         Credit Reimbursement Date in an amount in Dollars equal to the amount
         of such payment and (b) subject to satisfaction or waiver of the
         conditions specified in subsection 4.3B, LC Facility Lenders shall, on
         the LC Facility Letter of Credit Reimbursement Date, make LC Facility
         Loans that are Base Rate Loans in the amount of such payment, the
         proceeds of which shall be applied directly by Administrative Agent to
         reimburse such LC Facility Issuing Lender for the amount of such
         payment; and provided, further, that if for any reason proceeds of LC
         Facility Loans are not received by such LC Facility Issuing Lender on
         the LC Facility Letter of Credit Reimbursement Date in an amount equal
         to the amount of such payment, Borrower shall reimburse such LC
         Facility Issuing Lender, on demand, in an amount in same day funds
         equal to the excess of the amount of such payment over the aggregate
         amount of such LC Facility Loans, if any, which are so received.
         Nothing in this subsection 3.3B(ii) shall be deemed to relieve any LC
         Facility Lender from its obligation to make LC Facility Loans on the
         terms and conditions set forth in this Agreement, and Borrower shall
         retain any and all rights it may have against any LC Facility Lender
         resulting from the failure of such LC Facility Lender to make such LC
         Facility Loans under this subsection 3.3B.

                  C. PAYMENT BY LENDERS OF UNREIMBURSED AMOUNTS PAID UNDER
LETTERS OF CREDIT.

                  (i) (a) Payment by Revolving Lenders. In the event that
         Borrower shall fail for any reason to reimburse any Revolving Issuing
         Lender as provided in subsection 3.3B(i) in an amount equal to the
         amount of any payment by such Revolving

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         Issuing Lender under a Revolving Letter of Credit issued by it, such
         Revolving Issuing Lender shall promptly notify Administrative Agent who
         will notify each other Revolving Lender of the unreimbursed amount of
         such honored drawing and of such other Revolving Lender's respective
         participation therein based on such Revolving Lender's Pro Rata Share.
         Each Revolving Lender shall make available to Administrative Agent for
         the benefit of such Revolving Issuing Lender an amount equal to its
         respective participation, in Dollars and in same day funds, at the
         Funding and Payment Office, not later than 12:00 Noon (New York City
         time) on the first business day after the date notified by
         Administrative Agent. In the event that any Revolving Lender fails to
         make available to Administrative Agent for the benefit of such
         Revolving Issuing Lender on such business day the amount of such
         Revolving Lender's participation in such Revolving Letter of Credit as
         provided in this subsection 3.3C(i)(a), such Revolving Issuing Lender
         shall be entitled to recover such amount on demand from such Revolving
         Lender together with interest thereon at the rate customarily used by
         such Revolving Issuing Lender for the correction of errors among banks
         for three Business Days and thereafter at the Base Rate. Nothing in
         this subsection 3.3C(i)(a) shall be deemed to prejudice the right of
         any Revolving Lender to recover from any Revolving Issuing Lender any
         amounts made available by such Revolving Lender to such Revolving
         Issuing Lender pursuant to this subsection 3.3C(i)(a) in the event that
         it is determined by the final judgment of a court of competent
         jurisdiction that the payment with respect to a Letter of Credit by
         such Revolving Issuing Lender in respect of which payment was made by
         such Revolving Lender constituted gross negligence or willful
         misconduct on the part of such Revolving Issuing Lender.

                           (b) Payment by LC Facility Lenders. In the event that
                  Borrower shall fail for any reason to reimburse any LC
                  Facility Issuing Lender as provided in subsection 3.3B(ii) in
                  an amount equal to the amount of any payment by such LC
                  Facility Issuing Lender under a LC Facility Letter of Credit
                  issued by it, such LC Facility Issuing Lender shall promptly
                  notify Administrative Agent who will notify each other LC
                  Facility Lender of the unreimbursed amount of such honored
                  drawing and of such other LC Facility Lender's respective
                  participation therein based on such LC Facility Lender's Pro
                  Rata Share. Each LC Facility Lender shall make available to
                  Administrative Agent for the benefit of such LC Facility
                  Issuing Lender an amount equal to its respective
                  participation, in Dollars and in same day funds, at the
                  Funding and Payment Office, not later than 12:00 Noon (New
                  York City time) on the first business day after the date
                  notified by Administrative Agent. In the event that any LC
                  Facility Lender fails to make available to Administrative
                  Agent for the benefit of such LC Facility Issuing Lender on
                  such business day the amount of such LC Facility Lender's
                  participation in such Letter of Credit as provided in this
                  subsection 3.3C(i)(b), such LC Facility Issuing Lender shall
                  be entitled to recover such amount on demand from such LC
                  Facility Lender together with interest thereon at the rate
                  customarily used by such LC Facility Issuing Lender for the
                  correction of errors among banks for three Business Days and
                  thereafter at the Base Rate. Nothing in this subsection
                  3.3C(i)(b) shall be deemed to prejudice the right of any
                  Lender to

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                  recover from any LC Facility Issuing Lender any amounts made
                  available by such LC Facility Lender to such LC Facility
                  Issuing Lender pursuant to this subsection 3.3C(i)(b) in the
                  event that it is determined by the final judgment of a court
                  of competent jurisdiction that the payment with respect to a
                  LC Facility Letter of Credit by such LC Facility Issuing
                  Lender in respect of which payment was made by such LC
                  Facility Lender constituted gross negligence or willful
                  misconduct on the part of such LC Facility Issuing Lender.

                  (ii) Distribution to Lenders of Reimbursements Received From
         Borrower. In the event any Issuing Lender shall have been reimbursed by
         other Revolving Lenders or LC Facility Lender, as the case may be,
         pursuant to subsection 3.3C(i) for all or any portion of any payment by
         such Issuing Lender under a Letter of Credit issued by it, such Issuing
         Lender shall distribute to the Administrative Agent on behalf of each
         other Revolving Lender or LC Facility Lender as the case may be, that
         has paid all amounts payable by it under subsection 3.3C(i) with
         respect to such payment such other Revolving Lender's Pro Rata Share or
         LC Facility Lender's Pro Rata Share, as the case may be, of all
         payments subsequently received by such Issuing Lender from Borrower in
         reimbursement of such payment under the Letter of Credit when such
         payments are received. Any such distribution shall be made to a
         Revolving Lender or LC Facility Lender as the case may be.

                  D. INTEREST ON AMOUNTS PAID UNDER LETTERS OF CREDIT.

                  (i) Payment of Interest by Borrower. Borrower agrees to pay to
         each Issuing Lender, with respect to payments under any Letters of
         Credit issued by it, interest on the amount paid by such Issuing Lender
         in respect of each such payment from the date a drawing is honored to
         but excluding the date such amount is reimbursed by Borrower (including
         any such reimbursement out of the proceeds of Revolving Loans pursuant
         to subsection 3.3B) at a rate equal to (a) with respect to Revolving
         Letters of Credit, (1) for the period from the date such drawing is
         honored to but excluding the Reimbursement Date, the rate then in
         effect under this Agreement with respect to Revolving Loans that are
         Base Rate Loans and (2) thereafter, a rate which is 2% per annum in
         excess of the rate of interest otherwise payable under this Agreement
         with respect to Revolving Loans that are Base Rate Loans and (b) with
         respect to LC Facility Letters of Credit, (1) for the period from the
         date such drawing is honored to but excluding the Reimbursement Date,
         the rate then in effect under this Agreement with respect to Term B
         Loans that are Base Rate Loans and (2) thereafter, a rate which is 2%
         per annum in excess of the rate of interest otherwise payable under
         this Agreement with respect to Term B Loans that are Base Rate Loans.
         Interest payable pursuant to this subsection 3.3D(i) shall be computed
         on the basis of a 360-day year for the actual number of days elapsed in
         the period during which it accrues and shall be payable on demand or,
         if no demand is made, on the date on which the related drawing under a
         Letter of Credit is reimbursed in full.

                  (ii) Distribution of Interest Payments by Issuing Lender.
         Promptly upon receipt by any Issuing Lender of any payment of interest
         pursuant to subsection 3.3D(i) with respect to a payment under a Letter
         of Credit issued by it, (a) such Issuing Lender

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         shall distribute to Administrative Agent on behalf of each other
         Revolving Lender or LC Facility Lender, as the case may be, out of the
         interest received by such Issuing Lender in respect of the period from
         the date such drawing is honored to but excluding the date on which
         such Issuing Lender is reimbursed for the amount of such payment
         (including any such reimbursement out of the proceeds of Revolving
         Loans pursuant to subsection 3.3B), the amount that such other
         Revolving Lender or LC Facility Lender, as the case may be, would have
         been entitled to receive in respect of the letter of credit fee that
         would have been payable in respect of such Letter of Credit for such
         period pursuant to subsection 3.2 if no drawing had been honored under
         such Letter of Credit, and (b) in the event such Issuing Lender shall
         have been reimbursed by other Revolving Lenders or LC Facility Lender,
         as the case may be, pursuant to subsection 3.3C(i) for all or any
         portion of such payment, such Issuing Lender shall distribute to
         Administrative Agent on behalf of each other Revolving Lender or LC
         Facility Lender, as the case may be, that has paid all amounts payable
         by it under subsection 3.3C(i) with respect to such payment such other
         Revolving Lender's Pro Rata Share or LC Facility Lender's Pro Rata
         Share, as the case may be, of any interest received by such Issuing
         Lender in respect of that portion of such payment so reimbursed by
         other Revolving Lenders or LC Facility Lender, as the case may be, for
         the period from the date on which such Issuing Lender was so reimbursed
         by other Revolving Lenders or LC Facility Lenders, as the case may be,
         to but excluding the date on which such portion of such payment is
         reimbursed by Borrower. Administrative Agent shall distribute any such
         amounts to a Revolving Lender or LC Facility Lender, as the case may
         be.

         3.4      OBLIGATIONS ABSOLUTE.

                  The obligation of Borrower to reimburse each Revolving Issuing
Lender and each LC Facility Lender, as the case may be, for payments under the
Letters of Credit issued by it and to repay any Revolving Loans made by
Revolving Lenders pursuant to subsection 3.3B(i) and any LC Facility Loans made
by LC Facility Lenders pursuant to subsection 3.3B(ii), as the case may be, and
the obligations of Revolving Lenders and LC Facility Lenders, as the case may
be, under subsection 3.3C(i) and 3.3C(ii), respectively, shall be unconditional
and irrevocable and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances including any of the following circumstances:

                  (i) any lack of validity or enforceability of any Letter of
         Credit;

                  (ii) the existence of any claim, set-off, defense or other
         right which Borrower or any Lender may have at any time against a
         beneficiary or any transferee of any Letter of Credit (or any Persons
         for whom any such transferee may be acting), any Issuing Lender or
         other Revolving Lender or LC Facility Lender or any other Person or, in
         the case of a Revolving Lender or LC Facility Lender, against Borrower,
         whether in connection with this Agreement, the transactions
         contemplated herein or any unrelated transaction (including any
         underlying transaction between Borrower or one of its Subsidiaries and
         the beneficiary for which any Letter of Credit was procured);

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                  (iii) any draft or other document presented under any Letter
         of Credit proving to be forged, fraudulent, invalid or insufficient in
         any respect or any statement therein being untrue or inaccurate in any
         respect;

                  (iv) payment by the applicable Issuing Lender under any Letter
         of Credit against presentation of a draft or other document which does
         not substantially comply with the terms of such Letter of Credit;

                  (v) any adverse change in the business, operations,
         properties, assets, condition (financial or otherwise) or prospects of
         Parent or any of its Subsidiaries;

                  (vi) any breach of this Agreement or any other Loan Document
         by any party thereto;

                  (vii) any other circumstance or happening whatsoever, whether
         or not similar to any of the foregoing; or

                  (viii) the fact that an Event of Default or a Potential Event
         of Default shall have occurred and be continuing;

provided, in each case, that payment by the applicable Issuing Lender under the
applicable Letter of Credit shall not have constituted gross negligence or
willful misconduct of such Issuing Lender under the circumstances in question
(as determined by a final judgment of a court of competent jurisdiction).

         3.5      NATURE OF ISSUING LENDERS' DUTIES.

                  As between Borrower and any Issuing Lender, Borrower assumes
all risks of the acts and omissions of, or misuse of the Letters of Credit
issued by such Issuing Lender by, the respective beneficiaries of such Letters
of Credit. In furtherance and not in limitation of the foregoing, such Issuing
Lender shall not be responsible for: (i) the form, validity, sufficiency,
accuracy, genuineness or legal effect of any document submitted by any party in
connection with the application for and issuance of any such Letter of Credit,
even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency
of any instrument transferring or assigning or purporting to transfer or assign
any such Letter of Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, which may prove to be invalid or ineffective for
any reason; (iii) failure of the beneficiary of any such Letter of Credit to
comply fully with any conditions required in order to draw upon such Letter of
Credit; (iv) errors, omissions, interruptions or delays in transmission or
delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether
or not they be in cipher; (v) errors in interpretation of technical terms; (vi)
any loss or delay in the transmission or otherwise of any document required in
order to make a drawing under any such Letter of Credit or of the proceeds
thereof; (vii) the misapplication by the beneficiary of any such Letter of
Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any
consequences arising from causes beyond the control of such Issuing Lender,
including any act or omission by a

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Government Authority, and none of the above shall affect or impair, or prevent
the vesting of, any of such Issuing Lender's rights or powers hereunder.

                  In furtherance and extension and not in limitation of the
specific provisions set forth in the first paragraph of this subsection 3.5, any
action taken or omitted by any Issuing Lender under or in connection with the
Letters of Credit issued by it or any documents and certificates delivered
thereunder, if taken or omitted in good faith, shall not put such Issuing Lender
under any resulting liability to Borrower.

                  Notwithstanding anything to the contrary contained in this
subsection 3.5, Borrower shall retain any and all rights it may have against any
Issuing Lender for any liability arising solely out of the gross negligence or
willful misconduct of such Issuing Lender, as determined by a final judgment of
a court of competent jurisdiction.

SECTION 4. CONDITIONS TO LOANS AND LETTERS OF CREDIT

                  The obligations of Lenders to make Loans and the issuance of
Letters of Credit hereunder are subject to the satisfaction of the following
conditions.

         4.1      CONDITIONS TO INITIAL LOANS.

                  The obligations of Lenders to make the Term B Loans and any
Revolving Loans to be made on the Closing Date are, in addition to the
conditions precedent specified in subsection 4.3, subject to prior or concurrent
satisfaction of the following conditions:

                  A. LOAN PARTY DOCUMENTS. On or before the Closing Date,
Borrower shall, and shall cause each other Loan Party to, deliver to Lenders (or
to Administrative Agent with sufficient originally executed copies, where
appropriate, for each Lender) the following with respect to Borrower or such
Loan Party, as the case may be, each, unless otherwise noted, dated the Closing
Date:

                  (i) Copies of the Organizational Documents of such Person, (A)
         in the case of Borrower and Parent, certified by the Secretary of State
         of its jurisdiction of organization or, if such document is of a type
         that may not be so certified, certified by the secretary or similar
         officer of Borrower or Parent, as the case may be, and (B) in the case
         of any other Loan Party, certified by the secretary or similar officer
         of the applicable Loan Party, together with a good standing certificate
         from the Secretary of State of its jurisdiction of organization and
         each other state in which such Person is qualified to do business and,
         to the extent generally available, a certificate or other evidence of
         good standing as to payment of any applicable franchise or similar
         taxes from the appropriate taxing authority of each of such
         jurisdictions, each dated a recent date prior to the Closing Date;

                  (ii) Resolutions of the Governing Body of such Person
         approving and authorizing the execution, delivery and performance of
         the Loan Documents to which it is a party, certified as of the Closing
         Date by the secretary or similar officer of such Person as being in
         full force and effect without modification or amendment;

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                  (iii) Signature and incumbency certificates of the officers of
         such Person executing the Loan Documents to which it is a party;

                  (iv) Executed originals of the Loan Documents to which such
         Person is a party; and

                  (v) Such other documents as Administrative Agent or
         Co-Arrangers may reasonably request.

                  B. FEES. Borrower shall have paid to Administrative Agent, for
distribution (as appropriate) to Administrative Agent and Lenders, the fees
payable on the Closing Date referred to in subsection 2.3.

                  C. CORPORATE AND CAPITAL STRUCTURE; OWNERSHIP.

                  (i) Corporate Structure. The corporate organizational
         structure of Holdings and its Subsidiaries, after giving effect to the
         Merger, shall be as set forth on Schedule 4.1C annexed hereto.

                  (ii) Capital Structure and Ownership. The capital structure
         and ownership of Holdings and its Subsidiaries, after giving effect to
         the Merger, shall be and as set forth on Schedule 4.1C annexed hereto.

                  D. REPRESENTATIONS AND WARRANTIES; PERFORMANCE OF AGREEMENTS.
Borrower shall have delivered to Administrative Agent an Officer's Certificate,
in form and substance satisfactory to Administrative Agent, to the effect that
the representations and warranties in Section 5 are true, correct and complete
in all material respects on and as of the Closing Date to the same extent as
though made on and as of that date (or, to the extent such representations and
warranties specifically relate to an earlier date, that such representations and
warranties were true, correct and complete in all material respects on and as of
such earlier date) and that Borrower shall have performed in all material
respects all agreements and satisfied all conditions which this Agreement
provides shall be performed or satisfied by it on or before the Closing Date
except as otherwise disclosed to and agreed to in writing by Administrative
Agent.

                  E. FINANCIAL STATEMENTS; PRO FORMA FINANCIAL STATEMENTS. On or
before the Closing Date, Administrative Agent shall have received from Borrower
(i) audited financial statements of Parent and its Subsidiaries for the fiscal
year ended December 31, 2001, including balance sheets and income and cash flow
statements, audited by KPMG LLP and prepared in conformity with GAAP, together
with such accountants' report thereon, (ii) unaudited interim financial
statements of Parent and its Subsidiaries for the fiscal quarter ended June 30,
2002, (iii) a pro forma balance sheet of Parent and its Subsidiaries as of the
Closing Date, giving effect to the Merger and the transactions contemplated by
this Agreement, and (iv) projected financial statements (including balance
sheets, income and cash flow statements) of Parent and its Subsidiaries for the
6-year period after the Closing Date, giving effect to the Merger and the
transactions contemplated by this Agreement, all of the foregoing in form and
substance satisfactory to Co-Arrangers.

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                  F. OPINIONS OF COUNSEL TO LOAN PARTIES. Lenders shall have
received originally executed copies of a written opinion of Mayer, Brown, Rowe &
Maw, counsel for the Loan Parties, in form and substance reasonably satisfactory
to Administrative Agent and its counsel, dated as of the Closing Date and
setting forth substantially the matters in the opinions designated in Exhibit X
annexed hereto and as to such other matters as Administrative Agent acting on
behalf of Lenders may reasonably request (this Credit Agreement constituting a
written request by Borrower to such counsel to deliver such opinions to
Lenders).

                  G. OPINIONS OF ADMINISTRATIVE AGENT'S COUNSEL. Lenders shall
have received originally executed copies of one or more favorable written
opinions of O'Melveny & Myers LLP, counsel to Administrative Agent, dated as of
the Closing Date, substantially in the form of Exhibit XI annexed hereto.

                  H. SOLVENCY ASSURANCES. On the Closing Date, Administrative
Agent and Lenders shall have received a Financial Condition Certificate dated
the Closing Date and signed by the chief financial officer of Borrower,
substantially in the form of Exhibit XIII annexed hereto and with appropriate
attachments, in each case demonstrating that, after giving effect to the
consummation of the transactions contemplated by the Loan Documents, each of
Parent, Borrower and each Subsidiary Guarantor will be Solvent.

                  I. EVIDENCE OF INSURANCE. Administrative Agent shall have
received a certificate from Borrower's insurance broker or other evidence
satisfactory to it that all insurance required to be maintained pursuant to
subsection 6.4 is in full force and effect and that Administrative Agent on
behalf of Lenders has been named as additional insured and/or loss payee
thereunder to the extent required under subsection 6.4.

                  J. NECESSARY GOVERNMENTAL AUTHORIZATIONS AND CONSENTS;
EXPIRATION OF WAITING PERIODS, ETC. Borrower shall have obtained all material
Governmental Authorizations and all consents of other Persons, in each case that
are necessary or advisable in connection with the transactions contemplated by
the Loan Documents and the continued operation of the business conducted by
Parent and its Subsidiaries in substantially the same manner as conducted prior
to the Closing Date. Each such Governmental Authorization and consent shall be
in full force and effect, except in a case where the failure to obtain or
maintain a Governmental Authorization or consent, either individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect. All applicable waiting periods shall have expired without any action
being taken or threatened by any competent authority that would restrain,
prevent or otherwise impose material adverse conditions on the transactions
contemplated by the Loan Documents or the financing thereof. No action, request
for stay, petition for review or rehearing, reconsideration, or appeal with
respect to any of the foregoing shall be pending, and the time for any
applicable Government Authority to take action to set aside its consent on its
own motion shall have expired.

                  K. ENVIRONMENTAL REPORTS. Administrative Agent shall have
received reports and other information, in form, scope and substance
satisfactory to Administrative Agent, regarding environmental matters relating
to the Facilities, which reports shall include a Phase I environmental
assessment for each of the Facilities listed in Schedule 4.1K annexed hereto

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which (a) conforms to the ASTM Standard Practice for Environmental Site
Assessments: Phase I Environmental Site Assessment Process, E 1527, and (b) was
conducted no more than six months prior to the Closing Date by one or more
environmental consulting firms reasonably satisfactory to Administrative Agent
and (c) includes an assessment of asbestos-containing materials at such
Facilities.

                  L. SECURITY INTERESTS IN PERSONAL AND MIXED PROPERTY.
Administrative Agent shall have received evidence satisfactory to it that each
Loan Party shall have taken or caused to be taken all such actions, executed and
delivered or caused to be executed and delivered all such agreements, documents
and instruments, and made or caused to be made all such filings and recordings
(other than the filing or recording of items described in clauses (ii), (iii)
and (iv) below) that may be necessary or, in the opinion of Administrative
Agent, desirable in order to create in favor of Administrative Agent, for the
benefit of Lenders, a valid and (upon such filing and recording) perfected First
Priority security interest in the entire personal and mixed property Collateral.
Such actions shall include the following:

                  (i) Stock Certificates and Instruments. Delivery to
         Administrative Agent of (a) certificates (which certificates shall be
         accompanied by irrevocable undated stock powers, duly endorsed in blank
         and otherwise satisfactory in form and substance to Administrative
         Agent) representing all Capital Stock pledged pursuant to the Security
         Agreement and (b) all promissory notes or other instruments (duly
         endorsed, where appropriate, in a manner satisfactory to Administrative
         Agent) evidencing any Collateral;

                  (ii) Lien Searches and UCC Termination Statements. Delivery to
         Administrative Agent of (a) the results of a recent search, by a Person
         satisfactory to Administrative Agent, of all effective UCC financing
         statements and fixture filings and all judgment and tax lien filings
         which may have been made with respect to any personal or mixed property
         of any Loan Party, together with copies of all such filings disclosed
         by such search, and (b) UCC termination statements duly executed by all
         applicable Persons for filing in all applicable jurisdictions as may be
         necessary to terminate any effective UCC financing statements or
         fixture filings disclosed in such search (other than any such financing
         statements or fixture filings in respect of Liens permitted to remain
         outstanding pursuant to the terms of this Agreement).

                  (iii) UCC Financing Statements and Fixture Filings. Delivery
         to Administrative Agent of UCC financing statements and, where
         appropriate, fixture filings, duly executed by each applicable Loan
         Party (if required) with respect to all personal and mixed property
         Collateral of such Loan Party, for filing in all jurisdictions as may
         be necessary or, in the opinion of Administrative Agent, desirable to
         perfect the security interests created in such Collateral pursuant to
         the Collateral Documents;

                  (iv) PTO Cover Sheets, Etc. Delivery to Administrative Agent
         of all cover sheets or other documents or instruments required to be
         filed with the PTO in order to create or perfect Liens in respect of
         any IP Collateral;

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                  (v) Opinions of Local Counsel. Delivery to Administrative
         Agent of an opinion of counsel (which counsel shall be reasonably
         satisfactory to Administrative Agent) under the laws of each
         jurisdiction in which any Loan Party or any personal or mixed property
         Collateral is located with respect to the creation and perfection of
         the security interests in favor of Administrative Agent in such
         Collateral and such other matters governed by the laws of such
         jurisdiction regarding such security interests as Administrative Agent
         may reasonably request, in each case in form and substance reasonably
         satisfactory to Administrative Agent.

                  M. CLOSING DATE MORTGAGES; CLOSING DATE MORTGAGE POLICIES;
ETC. Administrative Agent shall have received from Borrower and each applicable
Subsidiary Guarantor:

                  (i) Closing Date Mortgages. Fully executed and notarized
         Mortgages (each a "CLOSING DATE MORTGAGE" and, collectively, the
         "CLOSING DATE MORTGAGES"), in proper form for recording in all
         appropriate places in all applicable jurisdictions, encumbering each
         Real Property Asset listed in Schedule 4.1M annexed hereto (each a
         "CLOSING DATE MORTGAGED PROPERTY" and, collectively, the "CLOSING DATE
         MORTGAGED PROPERTIES");

                  (ii) Opinions of Local Counsel. An opinion of counsel (which
         counsel shall be reasonably satisfactory to Administrative Agent) in
         each state in which a Closing Date Mortgaged Property is located with
         respect to the enforceability of the form(s) of Closing Date Mortgages
         to be recorded in such state and such other matters as Administrative
         Agent may reasonably request, in each case in form and substance
         reasonably satisfactory to Administrative Agent;

                  (iii) Title Insurance. (a) ALTA mortgagee title insurance
         policies or unconditional commitments therefor (the "CLOSING DATE
         MORTGAGE POLICIES") issued by the Title Company with respect to the
         Closing Date Mortgaged Properties listed in Part A of Schedule 4.1M
         annexed hereto, in amounts not less than the respective amounts
         designated therein with respect to any particular Closing Date
         Mortgaged Properties, insuring fee simple title to, or a valid
         leasehold interest in, each such Closing Date Mortgaged Property vested
         in such Loan Party and assuring Administrative Agent that the
         applicable Closing Date Mortgages create valid and enforceable First
         Priority mortgage Liens on the respective Closing Date Mortgaged
         Properties encumbered thereby, subject only to a Permitted Encumbrance,
         a standard survey exception, and any other matters approved in writing
         by Administrative Agent for inclusion in the Closing Date Mortgage
         Policies, which Closing Date Mortgage Policies (1) shall include an
         endorsement for mechanics' liens, for future advances under this
         Agreement and for any other matters reasonably requested by
         Administrative Agent and (2) shall provide for affirmative insurance
         and such reinsurance as Administrative Agent may reasonably request,
         all of the foregoing in form and substance reasonably satisfactory to
         Administrative Agent; and (b) evidence satisfactory to Administrative
         Agent that such Loan Party has (i) delivered to the Title Company all
         certificates and affidavits required by the Title Company in connection
         with the issuance of the Closing Date Mortgage Policies and (ii) paid
         to the Title Company or to the appropriate governmental authorities

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         all expenses and premiums of the Title Company in connection with the
         issuance of the Closing Date Mortgage Policies and all recording and
         stamp taxes (including mortgage recording and intangible taxes) payable
         in connection with recording the Closing Date Mortgages in the
         appropriate real estate records;

                  (iv) Title Reports. With respect to each Closing Date
         Mortgaged Property listed in Part B of Schedule 4.1M annexed hereto, a
         title report issued by the Title Company with respect thereto, dated
         not more than 30 days prior to the Closing Date and satisfactory in
         form and substance to Administrative Agent;

                  (v) Copies of Documents Relating to Title Exceptions. Copies
         of all recorded documents listed as exceptions to title or otherwise
         referred to in the Closing Date Mortgage Policies (except for any
         recorded documents in connection with Permitted Encumbrances) to the
         extent such documents are not delivered with the title reports
         delivered pursuant to subsection 4.1M(iv);

                  (vi) Matters Relating to Flood Hazard Properties. (a)
         Evidence, which may be in the form of a letter from an insurance broker
         or a municipal engineer, as to whether (1) any Closing Date Mortgaged
         Property is a Flood Hazard Property and (2) the community in which any
         such Flood Hazard Property is located is participating in the National
         Flood Insurance Program, (b) if there are any such Flood Hazard
         Properties, such Loan Party's written acknowledgement of receipt of
         written notification from Administrative Agent (1) as to the existence
         of each such Flood Hazard Property and (2) as to whether the community
         in which each such Flood Hazard Property is located is participating in
         the National Flood Insurance Program, and (c) in the event any such
         Flood Hazard Property is located in a community that participates in
         the National Flood Insurance Program, evidence that Borrower has
         obtained flood insurance in respect of such Flood Hazard Property to
         the extent required under the applicable regulations of the Board of
         Governors of the Federal Reserve System; and

                  (vii) Environmental Indemnity. If requested by Administrative
         Agent, an environmental indemnity agreement, satisfactory in form and
         substance to Administrative Agent and its counsel, with respect to the
         indemnification of Administrative Agent and Lenders for any liabilities
         that may be imposed on or incurred by any of them as a result of any
         Hazardous Materials Activity.

                  N. MATTERS RELATING TO EXISTING INDEBTEDNESS OF BORROWER AND
ITS SUBSIDIARIES.

                  (i) Termination of Existing Credit Agreement and Related
         Liens; Existing Letters of Credit. On the Closing Date, Borrower and
         its Subsidiaries shall have (a) repaid in full all Indebtedness
         outstanding under the Existing Credit Agreement (the aggregate
         principal amount of which Indebtedness shall not exceed $20,050,700),
         (b) terminated any commitments to lend or make other extensions of
         credit thereunder, (c) delivered to Administrative Agent all documents
         or instruments necessary to release all Liens securing Indebtedness or
         other obligations of Parent and its Subsidiaries

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         thereunder, and (d) made arrangements satisfactory to Administrative
         Agent with respect to the cancellation of any letters of credit
         outstanding thereunder or the issuance of Letters of Credit to support
         the obligations of Parent and its Subsidiaries with respect thereto.

                  (ii) Redemption of Existing Notes. Borrower shall have
         redeemed certain Existing Notes for aggregate consideration, including
         accrued interest and premiums, not to exceed $142,200,000.

                  (iii) Existing Indebtedness to Remain Outstanding.
         Administrative Agent shall have received an Officer's Certificate of
         Borrower stating that, after giving effect to the transactions
         described in this subsection 4.1N, the Indebtedness of the Loan Parties
         (other than Indebtedness under the Loan Documents, the Senior
         Subordinated Note Indenture and the Parent Junior Subordinated Note
         Indenture) shall not exceed $25,000,000 and shall be Indebtedness
         permitted pursuant to subsection 7.1. The terms and conditions of such
         Indebtedness shall be in form and substance satisfactory to
         Administrative Agent.

                  O. RELATED AGREEMENTS. Administrative Agent shall have
received a fully executed or conformed copy of the Merger Agreement and each
other Related Agreement and any documents executed in connection therewith, and
the Merger Agreement and each other Related Agreement shall be in full force and
effect, in compliance in all material respects with applicable laws and
regulations, and no provision thereof shall have been amended, supplemented,
waived or otherwise modified in any respect determined by Co-Arrangers to be
material, in each case without the prior written consent of Co-Arrangers.

                  P. DEBT CAPITALIZATION OF BORROWER. On or before the Closing
Date, Borrower shall have issued and sold Senior Subordinated Notes in an
aggregate principal amount of approximately $146,000,000 pursuant to
documentation reasonably satisfactory in form and substance to Co-Arrangers.

                  Q. DEBT CAPITALIZATION OF PARENT. On or before the Closing
Date, Parent shall have issued and sold Parent Junior Subordinated Notes in an
aggregate principal amount of at least $35,000,000 (which, when added to the
proceeds of the Senior Subordinated Notes and the Cash Equity Contributions
shall be not less than the amount necessary to consummate the Merger).

                  R. EQUITY CAPITALIZATION. On or before the Closing Date,
Holdings shall have received concurrently with the Merger a non-refundable cash
equity contribution (the "CASH EQUITY CONTRIBUTIONS") of not less than
$220,000,000 (up to $7,500,000 of which shall be in the form of rollover equity
from certain existing members of management of Borrower) pursuant to
documentation reasonably satisfactory in form and substance to Co-Arrangers.

                  S. USE OF PROCEEDS. Borrower shall have provided evidence
reasonably satisfactory to Co-Arrangers that the proceeds of the debt
capitalization of Borrower and Parent and the Cash Equity Contributions
described in subsections 4.1P, 4.1Q and 4.1R above (i) are in an aggregate
amount not less than the amount necessary to consummate the Merger and pay

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Merger Transaction Costs and (ii) have been irrevocably committed, prior to the
application of any Term B Loans made on the Closing Date, to the payment of the
consideration for the Merger and Merger Transaction Costs.

                  T. CONSUMMATION OF MERGER.

                  (i) All conditions to the Merger set forth in the Merger
         Agreement shall have been satisfied or the fulfillment of any such
         conditions shall have been waived and in the case of a waiver of a
         material condition, with the consent of the Co-Arrangers;

                  (ii) The Merger shall become effective concurrently with the
         making of the Loans in accordance with the terms of the Merger
         Agreement and any documents executed or delivered in connection
         therewith and in accordance with the laws of the State of Delaware; and

                  (iii) The Transaction Costs should not exceed $38,800,000, and
         Administrative Agent shall have received evidence to its satisfaction
         to such effect.

                  U. NO LITIGATION. Other than as set forth on Schedule 5.6,
there shall not be pending or threatened any Proceeding in any court or before
any arbitrator or Government Authority that could reasonably be expected to have
a Material Adverse Effect on the Loan Parties, the Merger or the transactions
contemplated by this AGREEMENT.

                  V. COMPLETION OF PROCEEDINGS. All corporate and other
proceedings taken or to be taken in connection with the transactions
contemplated hereby and all documents incidental thereto not previously found
acceptable by Administrative Agent, acting on behalf of Lenders, and its counsel
shall be satisfactory in form and substance to Administrative Agent and such
counsel, and Administrative Agent and such counsel shall have received all such
counterpart originals or certified copies of such documents as Administrative
Agent may reasonably request.

         4.2      CONDITIONS TO SUPPLEMENTAL TERM LOANS.

                  The obligations of the Lenders making Supplemental Term Loans
to make Supplemental Term Loans shall be, in addition to the conditions
precedent specified in subsection 4.3, subject to prior or concurrent
satisfaction of each condition agreed to by Borrower, all Lenders making
Supplemental Term Loans and Administrative Agent in writing prior to the Funding
Date for such Supplemental Term Loans.

         4.3      CONDITIONS TO ALL LOANS.

                  The obligations of Lenders to make Loans on each Funding Date
are subject to the following further conditions precedent:

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                  A. Administrative Agent shall have received before that
Funding Date, in accordance with the provisions of subsection 2.1B, an
originally executed Notice of Borrowing, in each case signed by a duly
authorized Officer of Borrower.

                  B. AS OF THAT FUNDING DATE:

                  (i) The representations and warranties contained herein and in
         the other Loan Documents shall be true, correct and complete in all
         material respects on and as of that Funding Date to the same extent as
         though made on and as of that date, except to the extent such
         representations and warranties specifically relate to an earlier date,
         in which case such representations and warranties shall have been true,
         correct and complete in all material respects on and as of such earlier
         date; provided that where a representation and warranty is already
         qualified as to materiality, the materiality qualifier in this clause
         shall be disregarded for purposes of this condition;

                  (ii) No event shall have occurred and be continuing or would
         result from the consummation of the borrowing contemplated by such
         Notice of Borrowing that would constitute an Event of Default or a
         Potential Event of Default;

                  (iii) Each Loan Party shall have performed in all material
         respects all agreements and satisfied all conditions which this
         Agreement provides shall be performed or satisfied by it on or before
         that Funding Date; and

                  (iv) No order, judgment or decree of any arbitrator or
         Government Authority shall purport to enjoin or restrain any Lender
         from making the Loans to be made by it on that Funding Date.

         4.4      CONDITIONS TO LETTERS OF CREDIT.

                  The issuance of any Letter of Credit hereunder (whether or not
the applicable Issuing Lender is obligated to issue such Letter of Credit) is
subject to the following conditions precedent:

                  A. On or before the date of issuance of the initial Letter of
Credit pursuant to this Agreement, the initial Loans shall have been made.

                  B. On or before the date of issuance of such Letter of Credit,
Administrative Agent shall have received, in accordance with the provisions of
subsection 3.1B(i), an originally executed Request for Issuance (or a facsimile
copy thereof) in each case signed by a duly authorized Officer of Borrower,
together with all other information specified in subsection 3.1B(i) and such
other documents or information as the applicable Issuing Lender may reasonably
require in connection with the issuance of such Letter of Credit.

                  C. On the date of issuance of such Letter of Credit, all
conditions precedent described in subsection 4.3B shall be satisfied to the same
extent as if the issuance of such Letter

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of Credit were the making of a Loan and the date of issuance of such Letter of
Credit were a Funding Date.

SECTION 5. BORROWER'S REPRESENTATIONS AND WARRANTIES

                  In order to induce Lenders to enter into this Agreement and to
make the Loans, to induce Issuing Lenders to issue Letters of Credit and to
induce Revolving Lenders or LC Facility Lenders, as the case may be, to purchase
participations therein, Borrower represents and warrants to each Lender:

         5.1      ORGANIZATION, POWERS, QUALIFICATION, GOOD STANDING, BUSINESS
                  AND SUBSIDIARIES.

                  A. ORGANIZATION AND POWERS. Each Loan Party is a corporation,
partnership, trust or limited liability company duly organized and in good
standing under the laws of its jurisdiction of organization as specified in
Schedule 5.1 annexed hereto. Each Loan Party has all requisite power and
authority to own and operate its properties, to carry on its business as now
conducted and as proposed to be conducted (except, in each case, where a lack of
such corporate power and authority could not be expected to have, individually
or in the aggregate, a Material Adverse Effect), to enter into the Loan
Documents to which it is a party and to carry out the transactions contemplated
thereby.

                  B. QUALIFICATION AND GOOD STANDING. Each Loan Party is
qualified to do business and is in good standing to the extent required under
the laws of its jurisdiction of incorporation and is duly qualified to do
business and is in good standing as a foreign corporation to the extent required
under the laws of each jurisdiction where the nature of its business and
operations requires such qualification, except in jurisdictions where the
failure to be so qualified or in good standing has not had and could not
reasonably be expected to result in a Material Adverse Effect.

                  C. CONDUCT OF BUSINESS. Parent and its Subsidiaries are
engaged only in the businesses permitted to be engaged in pursuant to subsection
7.11.

                  D. SUBSIDIARIES. All of the Subsidiaries of Holdings and their
jurisdictions of organization as of the Closing Date and immediately after
giving effect to the Merger are identified in Schedule 5.1 annexed hereto, as
said Schedule 5.1 may be supplemented from time to time pursuant to the
provisions of subsection 6.1(xv). The Capital Stock of each of the Subsidiaries
of Holdings identified in Schedule 5.1 annexed hereto (as so supplemented) is a
corporation, partnership, trust or limited liability company duly authorized,
validly issued, fully paid and nonassessable and none of such Capital Stock
constitutes Margin Stock. Each of the Subsidiaries of Holdings identified in
Schedule 5.1 annexed hereto (as so supplemented) is duly organized, validly
existing and in good standing under the laws of its respective jurisdiction of
organization set forth therein, has all requisite power and authority to own and
operate its properties and to carry on its business as now conducted and as
proposed to be conducted, and is qualified to do business and in good standing
in every jurisdiction where it is necessary to carry out its business and
operations, in each case except where failure to be so qualified or in good

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standing or a lack of such power and authority has not had and could not
reasonably be expected to result in a Material Adverse Effect. Schedule 5.1
annexed hereto (as so supplemented) correctly sets forth as of the Closing Date
and immediately after giving effect to the Merger the ownership interest of
Holdings and each of its Subsidiaries in each of the Subsidiaries of Holdings
identified therein.

         5.2      AUTHORIZATION OF BORROWING, ETC.

                  A. AUTHORIZATION OF BORROWING. The execution, delivery and
performance of the Loan Documents and the Related Agreements have been duly
authorized by all necessary action on the part of each Loan Party that is a
party thereto.

                  B. NO CONFLICT. The execution, delivery and performance by the
Loan Parties of the Loan Documents and the Related Agreements to which they are
parties and the consummation of the transactions contemplated by the Loan
Documents and such Related Agreements do not and will not (i) violate any
provision of any law or any governmental rule or regulation applicable to Parent
or any of its Subsidiaries, the Organizational Documents of Parent or any of its
Subsidiaries or any order, judgment or decree of any court or other Government
Authority binding on Parent or any of its Subsidiaries, (ii) conflict with,
result in a breach of or constitute (with due notice or lapse of time or both) a
default under any Contractual Obligation of Parent or any of its Subsidiaries,
(iii) result in or require the creation or imposition of any Lien upon any of
the properties or assets of Parent or any of its Subsidiaries (other than any
Liens created under any of the Loan Documents in favor of Administrative Agent
on behalf of Lenders or as otherwise permitted under this Agreement), or (iv)
require any approval of stockholders or any approval or consent of any Person
under any Contractual Obligation of Parent or any of its Subsidiaries, except
for such approvals or consents which will be obtained on or before the Closing
Date and except, in each case, to the extent such violation, conflict, breach,
Lien or failure to obtain such approval or consent could not reasonably be
expected to result in a Material Adverse Effect.

                  C. GOVERNMENTAL CONSENTS. The execution, delivery and
performance by the Loan Parties of the Loan Documents to which they are parties
and the consummation of the transactions contemplated by the Loan Documents do
not and will not require any Governmental Authorization, except as has been duly
obtained and is in full force and effect unless the failure to obtain such
Governmental Authorization could not reasonably be expected to have a Material
Adverse Effect.

                  D. BINDING OBLIGATION. Each of the Loan Documents has been
duly executed and delivered by each Loan Party that is a party thereto and is
the legally valid and binding obligation of such Loan Party, enforceable against
such Loan Party in accordance with its respective terms, except as may be
limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or similar laws relating to or limiting creditors' rights generally
or by equitable principles (whether considered in a proceeding in equity or at
law) relating to enforceability.

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<PAGE>

                  E. VALID ISSUANCE OF SENIOR SUBORDINATED NOTES. Borrower has
the power and authority to issue the Senior Subordinated Notes. The Senior
Subordinated Notes when executed and delivered or issued and paid for, as the
case may be, will be the legally valid and binding obligations of Borrower,
enforceable against Borrower in accordance with their respective terms, except
as may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or similar laws relating to or limiting creditors'
rights generally or by equitable principles (whether considered in a proceeding
in equity or at law) relating to enforceability. The Senior Subordinated Notes
when executed and delivered or issued and sold will either (a) have been
registered or qualified under applicable federal and state securities laws or
(b) be exempt therefrom.

                  F. VALID ISSUANCE OF PARENT JUNIOR SUBORDINATED NOTES. Parent
has the power and authority to issue the Parent Junior Subordinated Notes. The
Parent Junior Subordinated Notes when executed and delivered or issued and paid
for, as the case may be, will be the legally valid and binding obligations of
Parent, enforceable against Parent in accordance with their respective terms,
except as may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws relating to or limiting creditors' rights generally or by
equitable principles relating to enforceability. The Parent Junior Subordinated
Notes when executed and delivered or issued and sold will either (a) have been
registered or qualified under applicable federal and state securities laws or
(b) be exempt therefrom.

         5.3      FINANCIAL CONDITION.

                  Borrower has heretofore delivered to Lenders, at Lenders'
request, (i) the audited consolidated balance sheet of Parent and its
Subsidiaries as at December 31, 2001 and the related consolidated statements of
income, stockholders' equity and cash flows of Parent and its Subsidiaries for
the Fiscal Year then ended and (ii) the unaudited consolidated balance sheets of
Borrower and its Subsidiaries as at March 31, 2002 and June 30, 2002 and the
related unaudited consolidated statements of income, stockholders' equity and
cash flows of Parent and its Subsidiaries for the periods then ended. All such
statements were prepared in conformity with GAAP and fairly present, in all
material respects, the financial position (on a consolidated basis) of the
entities described in such financial statements as at the respective dates
thereof and the results of operations and cash flows (on a consolidated basis)
of the entities described therein for each of the periods then ended, subject,
in the case of any such unaudited financial statements, to changes resulting
from audit and normal year-end adjustments. Neither Parent nor any of its
Subsidiaries has any Contingent Obligation, contingent liability or liability
for taxes, long-term lease or unusual forward or long-term commitment that is
not reflected in the foregoing financial statements or the notes thereto or that
is otherwise contemplated or permitted under this Agreement and, as of any
Funding Date subsequent to the Closing Date, is not reflected in the most recent
financial statements delivered to Lenders pursuant to subsection 6.1 or the
notes thereto and that, in any such case, is material in relation to the
business, operations, properties, assets, condition (financial or otherwise) or
prospects of Parent or any of its Subsidiaries taken as a whole.

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         5.4      NO MATERIAL ADVERSE CHANGE; NO RESTRICTED JUNIOR PAYMENTS.

                  Since December 31, 2001, no event or change has occurred that
has resulted in or evidences, either in any case or in the aggregate, a Material
Adverse Effect. Neither Parent nor any of its Subsidiaries has directly or
indirectly declared, ordered, paid or made, or set apart any sum or property
for, any Restricted Junior Payment or agreed to do so except as permitted by
subsection 7.5.

         5.5      TITLE TO PROPERTIES; LIENS; REAL PROPERTY; INTELLECTUAL
                  PROPERTY.

                  A. TITLE TO PROPERTIES; LIENS. Except to the extent that the
failure to do so could not reasonably be expected to have a Material Adverse
Effect, Parent and its Subsidiaries have (i) good, sufficient and legal title to
(in the case of fee interests in real property), (ii) valid leasehold interests
in (in the case of leasehold interests in real or personal property), or (iii)
good title to (in the case of all other personal property), all of their
respective properties and assets reflected in the financial statements referred
to in subsection 5.3 or in the most recent financial statements delivered
pursuant to subsection 6.1, in each case except for assets disposed of since the
date of such financial statements in the ordinary course of business or as
otherwise permitted under subsection 7.7. Except as permitted by this Agreement
or any other Loan Document, all such properties and assets are free and clear of
Liens.

                  B. REAL PROPERTY. As of the Closing Date (and immediately
after giving effect to the Merger), Schedule 5.5B annexed hereto contains a
true, accurate and complete list of (i) all fee interests in any Real Property
Assets and (ii) all leases, subleases or assignments of leases (together with
all amendments, modifications, supplements, renewals or extensions of any
thereof) affecting each Real Property Asset, regardless of whether a Loan Party
is the landlord or tenant (whether directly or as an assignee or successor in
interest) under such lease, sublease or assignment. Except as specified in
Schedule 5.5B annexed hereto, each agreement listed in clause (ii) of the
immediately preceding sentence is in full force and effect and Borrower does not
have knowledge of any default that has occurred and is continuing thereunder,
and each such agreement constitutes the legally valid and binding obligation of
each applicable Loan Party, enforceable against such Loan Party in accordance
with its terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors'
rights generally or by equitable principles.

                  C. INTELLECTUAL PROPERTY. As of the Closing Date (and
immediately after giving effect to the Merger), Parent and its Subsidiaries own
or have the right to use, all Intellectual Property used in the conduct of their
business, except where the failure to own or have such right to use, in the
aggregate could not reasonably be expected to result in a Material Adverse
Effect. Each of Parent and its Subsidiaries has taken all reasonable steps to
protect its Intellectual Property and maintain all registrations and pending
applications thereto. Other than as set forth on Schedule 5.6, no claim has been
asserted and is pending by any Person challenging or questioning the use of any
such Intellectual Property or the validity or effectiveness of any such
Intellectual Property, except for such claims that in the aggregate could not
reasonably be expected to result in a Material Adverse Effect. The use of such
Intellectual Property by Parent and its Subsidiaries and the anticipated use
following the Merger does not violate any license or

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infringe on the rights of any Person, except for such claims and infringements
that, in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect. All federal and state and all foreign registrations of and
applications for Intellectual Property, and material unregistered Intellectual
Property, that are owned or licensed by Borrower or any of its Subsidiaries on
the Closing Date are described on Schedule 5.5C annexed hereto.

         5.6      LITIGATION; ADVERSE FACTS.

                  Other than as set forth on Schedule 5.6, there are no
Proceedings (whether or not purportedly on behalf of Parent or any of its
Subsidiaries) at law or in equity, or before or by any court or other Government
Authority (including any Environmental Claims) that are pending or, to the
knowledge of Parent, threatened against or affecting Parent or any of its
Subsidiaries or any property of Parent or any of its Subsidiaries and that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. Neither Parent nor any of its Subsidiaries (i) is in
violation of any applicable laws (including Environmental Laws) that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect, or (ii) is subject to or in default with respect to any
final judgments, writs, injunctions, decrees, rules or regulations of any court
or other Government Authority that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect.

         5.7      PAYMENT OF TAXES.

                  Except to the extent permitted by subsection 6.3, all Tax
returns and reports of the Loan Parties required to be filed by any of them have
been timely filed, and all Taxes shown on such tax returns to be due and payable
and all Taxes, assessments, fees and other governmental charges upon the Loan
Parties and upon their respective properties, assets, income, businesses and
franchises that are due and payable have been paid when due except for any such
Tax, assessment, fee or charge that is being actively contested by such Loan
Party in good faith and by appropriate proceedings; provided that such reserves
or other appropriate provisions, if any, as shall be required in accordance with
GAAP shall have been made or provided therefor. Except as set forth on Schedule
5.7, none of Parent or any of its Subsidiaries has received written notice from
any taxing authority of any assessment (or proposed assessment) against any of
the Loan Parties that is not being actively contested by such Loan Party in good
faith and by appropriate proceedings; provided that such reserves or other
appropriate provisions, if any, as shall be required in accordance with GAAP
shall have been made or provided therefor.

         5.8      PERFORMANCE OF AGREEMENTS; MATERIAL CONTRACTS.

                  A. No Loan Party is in default in the performance, observance
or fulfillment of any of the obligations, covenants or conditions contained in
any of its Contractual Obligations, and no condition exists that, with the
giving of notice or the lapse of time or both, would constitute such a default,
except where (i) such default or defaults are being contested in good faith by
appropriate proceedings or (ii) the consequences, direct or indirect, of such
default or defaults, if any, could not reasonably be expected to result in a
Material Adverse Effect.

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                  B. Schedule 5.8 contains a true, correct and complete list of
all the Material Contracts in effect on the Closing Date. Except as described on
Schedule 5.8, all such Material Contracts are in full force and effect and no
material defaults currently exist thereunder.

         5.9      GOVERNMENTAL REGULATION.

                  No Loan Party is subject to regulation under the Public
Utility Holding Company Act of 1935, the Federal Power Act, the Interstate
Commerce Act or the Investment Company Act of 1940 or under any other federal or
state statute or regulation which may limit its ability to incur Indebtedness or
which may otherwise render all or any portion of the Obligations unenforceable.

         5.10     SECURITIES ACTIVITIES.

                  A. No Loan Party is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying any Margin Stock.

                  B. Following application of the proceeds of each Loan, not
more than 25% of the value of the assets (either of Borrower only or of the Loan
Parties on a consolidated basis) subject to the provisions of subsection 7.2 or
7.7 or subject to any restriction contained in any agreement or instrument,
between Borrower and any Lender or any Affiliate of any Lender, relating to
Indebtedness and within the scope of subsection 8.2, will be Margin Stock.

         5.11     EMPLOYEE BENEFIT PLANS.

                  A. Each of the Loan Parties and each of their respective ERISA
Affiliates are in compliance in all material respects with all applicable
provisions and requirements of ERISA and the regulations and published
interpretations thereunder with respect to each Employee Benefit Plan, and have
performed all their obligations under each Employee Benefit Plan. Each Employee
Benefit Plan that is intended to qualify under Section 401(a) of the Internal
Revenue Code has received a favorable determination letter from the Internal
Revenue Service that it is so qualified and since the date of each most recent
letter, there has been no event, condition or circumstance that has adversely
affected or is likely to adversely affect such qualified status.

                  B. No ERISA Event has occurred or is reasonably expected to
occur.

                  C. Except to the extent required under Section 4980B of the
Internal Revenue Code or other applicable law or except as set forth in Schedule
5.11 annexed hereto, no Employee Benefit Plan provides health or welfare
benefits (through the purchase of insurance or otherwise) for any retired or
former employee of any Loan Party or any of their respective ERISA Affiliates.

                  D. As of the most recent valuation date for any Pension Plan,
and excluding for purposes of such computation all Pension Plans which have no
unfunded benefit liabilities (as defined in Section 4001(a)(18) of ERISA), the
sum of:

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                  (i) the unfunded benefit liabilities (as defined in Section
         4001(a)(18) of ERISA) individually or in the aggregate for all Pension
         Plans to which any Loan Party has ever contributed; and

                  (ii) the potential liability that the Loan Party could
         reasonably be expected to incur as the result of the unfunded benefit
         liabilities (as defined in Section 4001(a)(18) of ERISA), individually
         or in the aggregate, for all Pension Plans to which no Loan Party has
         ever contributed (assuming amortization of such unfunded benefit
         liabilities over ten years);

does not exceed $2,000,000.

                  E. As of the most recent valuation date for each Multiemployer
Plan for which the actuarial report is available, the potential liability of the
Loan Parties and their respective ERISA Affiliates for a complete withdrawal
from such Multiemployer Plan (within the meaning of Section 4203 of ERISA), when
aggregated with such potential liability for a complete withdrawal from all
Multiemployer Plans, based on information available pursuant to Section 4221(e)
of ERISA, does not exceed $2,000,000.

         5.12     CERTAIN FEES.

                  No broker's or finder's fee or commission will be payable with
respect to this Agreement or any of the transactions contemplated hereby and
Borrower hereby indemnifies Lenders against, and agrees that it will hold
Lenders harmless from, any claim, demand or liability for any such broker's or
finder's fees alleged to have been incurred in connection herewith or therewith
and any expenses (including reasonable fees, expenses and disbursements of
counsel) arising in connection with any such claim, demand or liability.

         5.13     ENVIRONMENTAL PROTECTION.

                  Except as set forth in Schedule 5.13 annexed hereto:

                  (i) none of the Loan Parties nor any of their respective
         current Facilities or operations nor, to Borrower's knowledge, any of
         the Loan Parties' respective former Facilities or operations, are
         subject to any outstanding written order, consent decree or settlement
         agreement with any Person relating to (a) any Environmental Law, (b)
         any Environmental Claim, or (c) any Hazardous Materials Activity that,
         in each case, individually or in the aggregate, could reasonably be
         expected to result in a Material Adverse Effect;

                  (ii) none of the Loan Parties has received any letter or
         request for information under Section 104 of the Comprehensive
         Environmental Response, Compensation, and Liability Act (42 U.S.C.
         Section 9604) or any comparable state law;

                  (iii) there are and, to Borrower's knowledge, have been no
         conditions, occurrences, or Hazardous Materials Activities that could
         reasonably be expected to form

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<PAGE>

         the basis of an Environmental Claim against Parent or any of its
         Subsidiaries that, individually or in the aggregate, could reasonably
         be expected to result in a Material Adverse Effect;

                  (iv) none of the Loan Parties nor, to Borrower's knowledge,
         any predecessor of any of the Loan Parties has filed any notice under
         any Environmental Law indicating past or present treatment of Hazardous
         Materials at any Facility, and none of the Loan Parties' operations
         involves the generation, transportation, treatment, storage or disposal
         of hazardous waste, as defined under 40 C.F.R. Parts 260-270 or any
         state equivalent;

                  (v) compliance with all current or reasonably foreseeable
         future requirements pursuant to or under Environmental Laws would not,
         individually or in the aggregate, be reasonably expected to result in a
         Material Adverse Effect.

         5.14     EMPLOYEE MATTERS.

                  There is no strike or work stoppage in existence or threatened
involving any of the Loan Parties that could reasonably be expected to result in
a Material Adverse Effect.

         5.15     SOLVENCY.

                  Each Loan Party is and, upon the incurrence of any Obligations
by such Loan Party on any date on which this representation is made, will be,
Solvent.

         5.16     MATTERS RELATING TO COLLATERAL.

                  A. CREATION, PERFECTION AND PRIORITY OF LIENS. The execution
and delivery of the Collateral Documents by the Loan Parties, together with (i)
the actions taken on or prior to the date hereof pursuant to subsections 4.1L,
4.1M, 6.8 and 6.9 and (ii) the delivery to Administrative Agent of any Pledged
Collateral not delivered to Administrative Agent at the time of execution and
delivery of the applicable Collateral Document (all of which Pledged Collateral
has been so delivered) are effective to create in favor of Administrative Agent
for the benefit of Lenders, as security for the respective Secured Obligations
(as defined in the applicable Collateral Document in respect of any Collateral),
a valid First Priority Lien on all of the Collateral, and all filings and other
actions necessary or desirable to perfect and maintain the perfection and First
Priority status of such Liens have been duly made or taken and remain in full
force and effect, other than the filing of any UCC financing statements
delivered to Administrative Agent for filing (but not yet filed) and the
periodic filing of UCC continuation statements in respect of UCC financing
statements filed by or on behalf of Administrative Agent.

                  B. GOVERNMENTAL AUTHORIZATIONS. No authorization, approval or
other action by, and no notice to or filing with, any Government Authority is
required for either (i) the pledge or grant by any Loan Party of the Liens
purported to be created in favor of Administrative Agent pursuant to any of the
Collateral Documents or (ii) the exercise by Administrative Agent of any rights
or remedies in respect of any Collateral (whether specifically granted or
created pursuant to any of the Collateral Documents or created or provided for
by applicable law), except for

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filings or recordings contemplated by subsection 5.16A and except as may be
required, in connection with the disposition of any Pledged Collateral, by laws
generally affecting the offering and sale of securities.

                  C. ABSENCE OF THIRD-PARTY FILINGS. Except such as may have
been filed in favor of Administrative Agent as contemplated by subsection 5.16A,
filings for Liens which will be released on the Closing Date in connection with
the Refinancing and to evidence permitted lease obligations and other Liens
permitted pursuant to subsection 7.2, (i) no effective UCC financing statement,
fixture filing or other instrument similar in effect covering all or any part of
the Collateral is on file in any filing or recording office and (ii) no
effective filing covering all or any part of the IP Collateral is on file in the
PTO.

                  D. MARGIN REGULATIONS. The pledge of the Pledged Collateral
pursuant to the Collateral Documents does not violate Regulation T, U or X of
the Board of Governors of the Federal Reserve System.

                  E. INFORMATION REGARDING COLLATERAL. All written information
supplied to Administrative Agent by or on behalf of any Loan Party with respect
to any of the Collateral (in each case taken as a whole with respect to any
particular Collateral) is accurate and complete in all material respects.

         5.17     DISCLOSURE.

                  No material representation or warranty of the Loan Parties
contained in any Loan Document or in any other document, certificate or written
statement furnished to Lenders by or on behalf of any of the Loan Parties for
use in connection with the transactions contemplated by this Agreement contains
any untrue statement of a material fact or omits to state a material fact (known
to Borrower, in the case of any document not furnished by it) necessary in order
to make the statements contained herein or therein not misleading in light of
the circumstances in which the same were made. Any projections, including
forecasts, budgets, forward-looking statements and pro forma financial
information (the "PROJECTIONS") contained in such materials are based upon good
faith estimates and assumptions believed by Borrower to be reasonable at the
time made, it being recognized by Lenders that such Projections are not to be
viewed as facts and that actual results during the period or periods covered by
any such Projections may differ from the projected results. There are no facts
known (or which should upon the reasonable exercise of diligence be known) to
Borrower (other than matters of a general economic nature) that, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse
Effect and that have not been disclosed herein or in such other documents,
certificates and statements furnished to Lenders for use in connection with the
transactions contemplated hereby.

         5.18     SUBORDINATED INDEBTEDNESS.

                  The Obligations constitute senior indebtedness that is
entitled to the benefits of the subordination provisions, if any, of all
Indebtedness of Parent and its Subsidiaries (including without limitation, the
Senior Subordinated Notes and the Parent Junior Subordinated Notes).

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<PAGE>

         5.19     RELATED AGREEMENTS.

                  A. WARRANTIES OF SELLER. Subject to the qualifications set
forth therein, each of the representations and warranties given by Parent and
Borrower to Holdings and Merger Sub in the Merger Agreement is true and correct
in all material respects as of the date hereof (or as of any earlier date to
which such representation and warranty specifically relates) and will be true
and correct in all material respects as of the Closing Date (or as of such
earlier date, as the case may be), subject to the qualifications set forth in
the schedules to the Merger Agreement.

                  B. WARRANTIES OF BUYER. Subject to the qualifications set
forth therein, each of the representations and warranties given by Holdings and
Merger Sub to Parent and Borrower in the Merger Agreement is true and correct in
all material respects as of the date hereof and will be true and correct in all
material respects as of the Closing Date.

                  C. SURVIVAL. Notwithstanding anything in the Merger Agreement
to the contrary, the representations and warranties of Borrower set forth in
subsections 5.19A and 5.19B shall, solely for purposes of this Agreement,
survive the Closing Date for the benefit of Lenders.

         5.20     LEASEHOLD PROPERTY.

                  As of the Closing Date, (a) neither Borrower nor any of the
Subsidiary Guarantors has any Leasehold Property that is a Material Real
Property and (b) neither Borrower nor any of the Subsidiary Guarantors has any
Leasehold Property where Borrower or any such Subsidiary Guarantor physically
maintains on a regular basis personal property with an aggregate fair market
value equal to or in excess of $5,000,000.

SECTION 6. BORROWER'S AFFIRMATIVE COVENANTS

                  Borrower covenants and agrees that, so long as any of the
Commitments hereunder shall remain in effect and until payment in full of all of
the Loans and other Obligations and the cancellation or expiration of all
Letters of Credit, unless Requisite Lenders shall otherwise give prior written
consent, Borrower shall perform, and shall cause each other Loan Party to
perform, all covenants in this Section 6.

         6.1      FINANCIAL STATEMENTS AND OTHER REPORTS.

                  Borrower will maintain, and cause Parent and other
Subsidiaries to maintain, a system of accounting established and administered in
accordance with sound business practices to permit preparation of financial
statements in conformity with GAAP. Borrower will deliver to Administrative
Agent for distribution to Lenders:

                  (i) Events of Default, etc.: Within 3 Business Days of any
         Officer of Borrower obtaining knowledge (a) of any condition or event
         that constitutes an Event of Default or Potential Event of Default, or
         becoming aware that any Lender has given any notice (other than to
         Administrative Agent) or taken any other action with respect to a
         claimed Event of Default or Potential Event of Default, (b) that any
         Person has given any

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         notice to any of the Loan Parties or taken any other action with
         respect to a claimed default or event or condition of the type referred
         to in subsection 8.2, (c) of any condition or event that would be
         required to be disclosed in a current report filed by any Loan Party
         with the Securities and Exchange Commission on Form 8-K if such Loan
         Party was required to file such reports under the Exchange Act, or (d)
         of the occurrence of any event or change that has caused or evidences,
         either in any case or in the aggregate, a Material Adverse Effect, an
         Officer's Certificate specifying the nature and period of existence of
         such condition, event or change, or specifying the notice given or
         action taken by any such Person and the nature of such claimed Event of
         Default, Potential Event of Default, default, event or condition, and
         what action such Loan Party has taken, is taking and proposes to take
         with respect thereto;

                  (ii) Quarterly Financials: as soon as available and in any
         event within the earlier of (a) 45 days after the end of each of the
         first three Fiscal Quarters of each Fiscal Year and (b) if the Borrower
         is a public reporting company at such time, such earlier date as the
         Securities and Exchange Commission requires the filing of such
         information (or, if Borrower is required to file such information on a
         Form 10-Q with the Securities and Exchange Commission, promptly
         following such filing), (a) the consolidated balance sheet of Parent
         and its Subsidiaries as at the end of such Fiscal Quarter and the
         related consolidated statements of income, stockholders' equity and
         cash flows of Parent and its Subsidiaries for such Fiscal Quarter and
         for the period from the beginning of the then current Fiscal Year to
         the end of such Fiscal Quarter, setting forth in each case in
         comparative form the corresponding figures for the corresponding
         periods of the previous Fiscal Year and the corresponding figures from
         the Financial Plan for the current Fiscal Year, all in reasonable
         detail and certified by the chief financial officer of Parent that they
         fairly present, in all material respects, the financial condition of
         Parent and its Subsidiaries as at the dates indicated and the results
         of their operations and their cash flows for the periods indicated,
         subject to changes resulting from audit and normal year-end
         adjustments, and (b) a narrative report describing the operations of
         Parent and its Subsidiaries in the form prepared for presentation to
         senior management for such Fiscal Quarter and for the period from the
         beginning of the then current Fiscal Year to the end of such Fiscal
         Quarter (it being understood that the foregoing requirements may be
         satisfied by delivery of Borrower's report to the Securities and
         Exchange Commission on Form 10-Q);

                  (iii) Year-End Financials: as soon as available and in any
         event within the earlier of (a) 90 days after the end of each Fiscal
         Year or (b) if the Borrower is a public reporting company at such time,
         such earlier date as the Securities and Exchange Commission requires
         the filing of such information (or, if Borrower is required to file
         such information on a Form 10-K with the Securities and Exchange
         Commission, promptly following such filing), (a) the consolidated
         balance sheet of Parent and its Subsidiaries as at the end of such
         Fiscal Year and the related consolidated statements of income,
         stockholders' equity and cash flows of Parent and its Subsidiaries for
         such Fiscal Year, setting forth in each case in comparative form the
         corresponding figures for the previous Fiscal Year and the
         corresponding figures from the Financial Plan for the Fiscal

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<PAGE>

         Year covered by such financial statements, all in reasonable detail and
         certified by the chief financial officer of Parent that they fairly
         present, in all material respects, the financial condition of Parent
         and its Subsidiaries as at the dates indicated and the results of their
         operations and their cash flows for the periods indicated, (b) a
         narrative report describing the operations of Parent and its
         Subsidiaries in the form prepared for presentation to senior management
         for such Fiscal Year (it being understood that the foregoing
         requirements may be satisfied by delivery of Borrower's report to the
         Securities and Exchange Commission on Form 10-K), and (c) in the case
         of such consolidated financial statements, a report thereon of KPMG LLP
         or other independent certified public accountants of recognized
         national standing selected by Parent and reasonably satisfactory to
         Administrative Agent, which report shall be unqualified, shall express
         no doubts about the ability of Parent and its Subsidiaries to continue
         as a going concern, and shall state that such consolidated financial
         statements fairly present, in all material respects, the consolidated
         financial position of Parent and its Subsidiaries as at the dates
         indicated and the results of their operations and their cash flows for
         the periods indicated in conformity with GAAP applied on a basis
         consistent with prior years (except as otherwise disclosed in such
         financial statements) and that the examination by such accountants in
         connection with such consolidated financial statements has been made in
         accordance with generally accepted auditing standards;

                  (iv) Pricing and Compliance Certificates: together with each
         delivery of financial statements pursuant to subdivisions (ii) and
         (iii) above, (a) an Officer's Certificate of Borrower stating that the
         signers have reviewed the terms of this Agreement and have made, or
         caused to be made under their supervision, a review in reasonable
         detail of the transactions and condition of Parent and its Subsidiaries
         during the accounting period covered by such financial statements and
         that such review has not disclosed the existence during or at the end
         of such accounting period, and that the signers do not have knowledge
         of the existence as at the date of such Officer's Certificate, of any
         condition or event that constitutes an Event of Default or Potential
         Event of Default, or, if any such condition or event existed or exists,
         specifying the nature and period of existence thereof and what action
         Borrower has taken, is taking and proposes to take with respect
         thereto; and (b) a Compliance Certificate demonstrating in reasonable
         detail compliance during and at the end of the applicable accounting
         periods with the restrictions contained in Section 7, in each case to
         the extent compliance with such restrictions is required to be tested
         at the end of the applicable accounting period; in addition, on or
         before the 45th day following the end of each Fiscal Quarter, a Pricing
         Certificate demonstrating in reasonable detail the calculation of the
         Consolidated Leverage Ratio as of the end of the four-Fiscal Quarter
         period then ended;

                  (v) Reconciliation Statements: if, as a result of any change
         in accounting principles and policies from those used in the
         preparation of the audited financial statements referred to in
         subsection 5.3, the consolidated financial statements of Parent and its
         Subsidiaries delivered pursuant to subdivisions (ii), (iii) or (xii) of
         this subsection 6.1 will differ in any material respect from the
         consolidated financial statements that would have been delivered
         pursuant to such subdivisions had no such

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         change in accounting principles and policies been made, then (a)
         together with the first delivery of financial statements pursuant to
         subdivision (ii), (iii) or (xii) of this subsection 6.1 following such
         change, consolidated financial statements of Parent and its
         Subsidiaries for (y) the current Fiscal Year to the effective date of
         such change and (z) two full Fiscal Years immediately preceding the
         Fiscal Year in which such change is made, in each case prepared on a
         pro forma basis as if such change had been in effect during such
         periods, and (b) together with each delivery of financial statements
         pursuant to subdivision (ii), (iii) or (xii) of this subsection 6.1
         following such change, if required pursuant to subsection 1.2, a
         written statement of the chief accounting officer or chief financial
         officer of Borrower setting forth the differences (including any
         differences that would affect any calculations relating to the
         financial covenants set forth in subsection 7.6) which would have
         resulted if such financial statements had been prepared without giving
         effect to such change;

                  (vi) Accountants' Certification: together with each delivery
         of consolidated financial statements pursuant to subdivision (iii)
         above, a written statement by the independent certified public
         accountants giving the report thereon (a) stating that their audit
         examination has included a review of the terms of this Agreement and
         the other Loan Documents as they relate to accounting matters, (b)
         stating whether, in connection with their audit examination, any
         condition or event that constitutes an Event of Default or Potential
         Event of Default has come to their attention and, if such a condition
         or event has come to their attention, specifying the nature and period
         of existence thereof; provided that such accountants shall not be
         liable by reason of any failure to obtain knowledge of any such Event
         of Default or Potential Event of Default that would not be disclosed in
         the course of their audit examination, and (c) stating that based on
         their audit examination nothing has come to their attention that causes
         them to believe either or both that the information contained in the
         certificates delivered therewith pursuant to subdivision (iv) above is
         not correct or that the matters set forth in the Compliance
         Certificates delivered therewith pursuant to clause (b) of subdivision
         (iv) above for the applicable Fiscal Year are not stated in accordance
         with the terms of this Agreement;

                  (vii) Accountants' Reports: promptly upon receipt thereof
         (unless restricted by applicable professional standards), copies of all
         material reports submitted to Parent or Borrower by independent
         certified public accountants in connection with each annual, interim or
         special audit of the financial statements of Parent and its
         Subsidiaries made by such accountants, including any comment letter
         submitted by such accountants to management in connection with their
         annual audit;

                  (viii) SEC Filings and Press Releases: promptly upon their
         becoming available, copies of (a) all financial statements, reports,
         notices and proxy statements sent or made available generally by Parent
         and/or Borrower to its security holders or by any of their respective
         Subsidiaries to its security holders other than Parent and/or Borrower
         or another Subsidiary of Parent and/or Borrower, (b) all regular and
         periodic reports and all registration statements (other than on Form
         S-8 or a similar form) and prospectuses, if any, filed by Parent and/or
         Borrower or any of their respective Subsidiaries with any securities
         exchange or with the Securities and Exchange Commission or any

                                       97
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         governmental or private regulatory authority, and (c) all press
         releases and other statements made available generally by Parent and/or
         Borrower or any of their respective Subsidiaries to the public
         concerning material developments in the business of Parent and/or
         Borrower or any of their respective Subsidiaries that would be required
         to be disclosed in a current report filed by Parent and/or Borrower or
         any of their respective Subsidiaries with the Securities and Exchange
         Commission on Form 8-K if Parent and/or Borrower or such Subsidiary
         were required to file such reports under the Exchange Act;

                  (ix) Litigation or Other Proceedings: (a) promptly upon any
         Officer of any Loan Party obtaining knowledge of (1) the institution
         of, or non-frivolous threat of, any Proceeding against or affecting any
         Loan Party or any property of any Loan Party not previously disclosed
         in writing by any Loan Party to Lenders or (2) any material development
         in any Proceeding that, in any case:

                           (x) if adversely determined, has a reasonable
                  possibility of giving rise to a Material Adverse Effect; or

                           (y) seeks to enjoin or otherwise prevent the
                  consummation of, or to recover any damages or obtain relief as
                  a result of, the transactions contemplated hereby;

         written notice thereof together with such other information as may be
         reasonably available to Borrower to enable Lenders and their counsel to
         evaluate such matters; and (b) promptly upon request by Administrative
         Agent, a schedule of all Proceedings delivered by Borrower to its
         independent certified public accountants in connection with the report
         prepared by them on the consolidated financial statements of Parent and
         its Subsidiaries for each Fiscal Year, and promptly after request by
         Administrative Agent such other information as may be reasonably
         requested by Administrative Agent to enable Administrative Agent and
         its counsel to evaluate any of such Proceedings;

                  (x) ERISA Events: promptly upon becoming aware of the
         occurrence of or forthcoming occurrence of any ERISA Event, a written
         notice specifying the nature thereof, what action Parent, any of its
         Subsidiaries or any of their respective ERISA Affiliates has taken, is
         taking or proposes to take with respect thereto and, when known, any
         action taken or threatened by the Internal Revenue Service, the
         Department of Labor or the PBGC with respect thereto;

                  (xi) ERISA Notices: with reasonable promptness, copies of (a)
         all notices received by Parent, any of its Subsidiaries or any of their
         respective ERISA Affiliates from a Multiemployer Plan sponsor
         concerning an ERISA Event; and (b) copies of such other documents or
         governmental reports or filings relating to any Employee Benefit Plan
         as Administrative Agent shall reasonably request;

                  (xii) Financial Plans: as soon as practicable and in any event
         no later than 30 days after the beginning of each Fiscal Year, a
         consolidated plan and financial forecast for such Fiscal Year (the
         "FINANCIAL PLAN" for such Fiscal Year) prepared in reasonable

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         detail by an Officer of the Borrower and in form and substance
         substantially consistent with the financial projections previously
         provided to Lenders pursuant to subsection 4.1, including (a) a
         forecasted consolidated balance sheets and forecasted consolidated
         statements of income and cash flows of Parent and its Subsidiaries for
         such Fiscal Year, together with a pro forma Compliance Certificate for
         such Fiscal Year and an explanation of the assumptions on which such
         forecasts are based and (b) such other information and projections as
         Administrative Agent may reasonably request;

                  (xiii) Insurance: as soon as practicable after any material
         change in insurance coverage maintained by the Loan Parties notice
         thereof to Administrative Agent specifying the changes and reasons
         therefor;

                  (xiv) Governing Body: with reasonable promptness, written
         notice of any change in the Governing Body of Parent or Borrower;

                  (xv) New Subsidiaries: promptly upon any Person becoming a
         Subsidiary of Parent or Borrower, a written notice setting forth with
         respect to such Person (a) the date on which such Person became such
         Subsidiary and (b) all of the data required to be set forth in Schedule
         5.1 annexed hereto with respect to all Subsidiaries of the Loan Parties
         (it being understood that such written notice shall be deemed to
         supplement Schedule 5.1 annexed hereto for all purposes of this
         Agreement);

                  (xvi) Subordinated Debt Notices: promptly upon receipt by
         Parent or any of its Subsidiaries of any notice with respect to any
         Subordinated Indebtedness, and promptly upon the giving of notice by
         Parent or any of its Subsidiaries with respect to any Subordinated
         Indebtedness, in each case relating to any default or payment or
         prepayment of principal or premium, if any, redemption, purchase,
         retirement, defeasance (including in-substance or legal defeasance),
         sinking fund or similar payment with respect to such Subordinated
         Indebtedness, a copy of such notice; and

                  (xvii) Other Information: with reasonable promptness, such
         other information and data with respect to any Loan Party as from time
         to time may be reasonably requested by any Lender.

         6.2      CORPORATE EXISTENCE, ETC.

                  Except as permitted under subsection 7.7, Borrower will, and
will cause each of the other Loan Parties to, at all times preserve and keep in
full force and effect its existence in the jurisdiction of organization
specified on Schedule 5.1 and all rights and franchises material to its
business; provided, however, that no Loan Party shall be required to preserve
any such right or franchise if the Governing Body of such Loan Party shall
determine that the preservation thereof is no longer desirable in the conduct of
the business of such Loan Party and that the loss thereof could not reasonably
be expected to have a Material Adverse Effect.

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         6.3      PAYMENT OF TAXES AND CLAIMS; TAX CONSOLIDATION.

                  A. Borrower will, and will cause each of the other Loan
Parties to, pay all taxes, assessments and other governmental charges imposed
upon it or any of its properties or assets or in respect of any of its income,
businesses or franchises before any penalty accrues thereon, and all claims
(including claims for labor, services, materials and supplies) for sums that
have become due and payable and that by law have or may become a Lien upon any
of its properties or assets, prior to the time when any penalty or fine shall be
incurred with respect thereto; provided that no such tax, assessment, charge or
claim need be paid if it is being contested in good faith by appropriate
proceedings, so long as (i) such reserve or other appropriate provision, if any,
as shall be required in conformity with GAAP shall have been made therefor and
(ii) in the case of a charge, tax, assessment or claim which has or may become a
Lien against any of the Collateral, such proceedings conclusively operate to
stay the sale of any portion of the Collateral to satisfy such charge or claim.

                  B. Borrower will not, nor will it permit any of the other Loan
Parties to, file or consent to the filing of any consolidated income tax return
with any Person (other than Parent or any of its Subsidiaries).

         6.4      MAINTENANCE OF PROPERTIES; INSURANCE; APPLICATION OF NET
                  INSURANCE/CONDEMNATION PROCEEDS.

                  A. MAINTENANCE OF PROPERTIES. Except to the extent that the
failure to do so could not reasonably be expected to have a Material Adverse
Effect, Borrower will, and will cause each of the other Loan Parties to, (i)
with respect to all material properties used or useful in the business of the
Loan Parties, maintain or cause to be maintained such material properties in
good repair, working order and condition, ordinary wear and tear excepted, and
from time to time make or cause to be made all appropriate repairs, renewals and
replacements thereof and (ii) with respect to Intellectual Property, maintain
such Intellectual Property as valid and enforceable and from time to time make
or cause to be made all appropriate filings thereof.

                  B. INSURANCE. Borrower will maintain or cause to be
maintained, with financially sound and reputable insurers, such public liability
insurance, third party property damage insurance, business interruption
insurance and casualty insurance with respect to liabilities, losses or damage
in respect of the assets, properties and businesses of the Loan Parties as may
customarily be carried or maintained under similar circumstances by corporations
of established reputation engaged in similar businesses, in each case in such
amounts (giving effect to self-insurance), with such deductibles, covering such
risks and otherwise on such terms and conditions as shall be customary for
corporations similarly situated in the industry. Without limiting the generality
of the foregoing, Borrower will maintain or cause to be maintained (i) flood
insurance with respect to each Flood Hazard Property that is located in a
community that participates in the National Flood Insurance Program, in each
case in compliance with any applicable regulations of the Board of Governors of
the Federal Reserve System, and (ii) replacement value casualty insurance on the
Collateral under such policies of insurance, with such insurance companies, in
such amounts, with such deductibles, and covering such risks as are at all times
satisfactory to Administrative Agent in its commercially reasonable judgment.

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Each such policy of insurance shall (a) name Administrative Agent for the
benefit of Lenders as an additional insured thereunder as its interests may
appear and (b) in the case of each business interruption and casualty insurance
policy, (x) contain a loss payable clause or endorsement, satisfactory in form
and substance to Administrative Agent, that names Administrative Agent for the
benefit of Lenders as the loss payee thereunder for any covered loss in excess
of $5,000,000 and (y) provides for at least 30 days prior written notice to
Administrative Agent of any modification or cancellation of such policy.

                  C. APPLICATION OF NET INSURANCE/CONDEMNATION PROCEEDS.

                  (i) Business Interruption Insurance. Upon receipt by any Loan
         Party of any business interruption insurance proceeds constituting Net
         Insurance/Condemnation Proceeds, (a) so long as no Event of Default or
         Potential Event of Default shall have occurred and be continuing, such
         Loan Party may retain and apply such Net Insurance/Condemnation
         Proceeds for working capital purposes, and (b) if an Event of Default
         or Potential Event of Default shall have occurred and be continuing,
         Borrower shall apply an amount equal to such Net Insurance/Condemnation
         Proceeds to prepay the Loans (and/or the Revolving Loan Commitments
         shall be reduced) as provided in subsection 2.4B;

                  (ii) Net Insurance/Condemnation Proceeds Received by Borrower.
         Upon receipt by any Loan Party of any Net Insurance/Condemnation
         Proceeds (other than from business interruption insurance) in excess of
         $2,500,000, (a) so long as no Event of Default or Potential Event of
         Default shall have occurred and be continuing, Borrower shall, or shall
         cause any other Loan Party to, promptly and diligently apply such Net
         Insurance/Condemnation Proceeds to pay or reimburse the costs of
         repairing, restoring or replacing the assets in respect of which such
         Net Insurance/Condemnation Proceeds were received or, to the extent not
         so applied, to prepay the Loans (and/or the Revolving Loan Commitments
         shall be reduced) as provided in subsection 2.4B, and (b) if an Event
         of Default or Potential Event of Default shall have occurred and be
         continuing, Borrower shall apply an amount equal to such Net
         Insurance/Condemnation Proceeds to prepay the Loans (and/or the
         Revolving Loan Commitments shall be reduced) as provided in subsection
         2.4B.

                  (iii) Net Insurance/Condemnation Proceeds Received by
         Administrative Agent. Upon receipt by Administrative Agent of any Net
         Insurance/Condemnation Proceeds as loss payee, (a) if and to the extent
         Borrower would have been required to apply such Net
         Insurance/Condemnation Proceeds (if it had received them directly) to
         prepay the Loans and/or reduce the Revolving Loan Commitments,
         Administrative Agent shall, and Borrower hereby authorizes
         Administrative Agent to, apply such Net Insurance/Condemnation Proceeds
         to prepay the Loans (and/or the Revolving Loan Commitments shall be
         reduced) as provided in subsection 2.4B, and (b) to the extent the
         foregoing clause (a) does not apply and (1) the aggregate amount of
         such Net Insurance/Condemnation Proceeds received (and reasonably
         expected to be received) by Administrative Agent in respect of any
         covered loss does not exceed $10,000,000, Administrative Agent shall
         deliver such Net Insurance/Condemnation Proceeds to

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         Borrower, and Borrower shall, or shall cause any other Loan Party to,
         as soon as reasonably practicable, apply such Net
         Insurance/Condemnation Proceeds to the costs of repairing, restoring,
         or replacing the assets in respect of which such Net
         Insurance/Condemnation Proceeds were received, and (2) if the aggregate
         amount of Net Insurance/Condemnation Proceeds received (and reasonably
         expected to be received) by Administrative Agent in respect of any
         covered loss exceeds $10,000,000, Administrative Agent shall hold such
         Net Insurance/Condemnation Proceeds pursuant to the terms of the
         Security Agreement and, so long as Borrower or any other Loan Party
         proceeds diligently to repair, restore or replace the assets of such
         Loan Party in respect of which such Net Insurance/Condemnation Proceeds
         were received, Administrative Agent shall from time to time disburse to
         such Loan Party from the Collateral Account, to the extent of any such
         Net Insurance/Condemnation Proceeds remaining therein in respect of the
         applicable covered loss, amounts necessary to pay the cost of such
         repair, restoration or replacement after the receipt by Administrative
         Agent of invoices or other documentation reasonably satisfactory to
         Administrative Agent relating to the amount of costs so incurred and
         the work performed (including, if required by Administrative Agent,
         lien releases and architects' certificates); provided, however, that if
         at any time Administrative Agent reasonably determines that such
         repair, restoration or replacement cannot be completed with the Net
         Insurance/Condemnation Proceeds then held by Administrative Agent for
         such purpose, together with funds otherwise available to Borrower for
         such purpose, or that such repair, restoration or replacement cannot be
         completed within 365 days after the receipt by Administrative Agent of
         such Net Insurance/Condemnation Proceeds, Administrative Agent shall,
         and Borrower hereby authorizes Administrative Agent to, apply such Net
         Insurance/ Condemnation Proceeds to prepay the Loans (and/or the
         Revolving Loan Commitments shall be reduced) as provided in subsection
         2.4B.

         6.5      INSPECTION RIGHTS; LENDER MEETING.

                  A. INSPECTION RIGHTS. Borrower shall, and shall cause each of
the other Loan Parties to, permit any authorized representatives designated by
any Lender to visit and inspect any of the properties of any Loan Party, to
inspect, copy and take extracts from its and their financial and accounting
records, and to discuss its and their affairs, finances and accounts with its
and their officers and independent public accountants (provided that Parent or
its Subsidiaries may, if it so chooses, be present at or participate in any such
discussion), all upon reasonable notice and, except during the continuance of an
Event of Default, no more than once per year.

                  B. LENDER MEETING. During the continuance of an Event of
Default, Borrower will, upon the request of Administrative Agent or Requisite
Lenders, participate in a meeting of Administrative Agent and Lenders to be held
at Borrower's principal offices (or at such other location as may be agreed to
by Borrower and Administrative Agent) at such time as may be agreed to by
Borrower and Administrative Agent.

         6.6      COMPLIANCE WITH LAWS, ETC.

                  Borrower shall comply, and shall cause each of the other Loan
Parties to comply, with the requirements of all applicable laws, rules,
regulations and orders of any Government

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Authority (including all Environmental Laws), noncompliance with which could
reasonably be expected to result in, individually or in the aggregate, a
Material Adverse Effect.

         6.7      ENVIRONMENTAL MATTERS.

                  A. ENVIRONMENTAL DISCLOSURE. Borrower will deliver to
Administrative Agent and Lenders:

                  (i) Environmental Audits and Reports. As soon as practicable
         following receipt thereof, copies of all environmental audits,
         investigations, analyses and reports of any kind or character, whether
         prepared by personnel of Parent or any of its Subsidiaries or by
         independent consultants, governmental authorities or any other Persons,
         with respect to significant environmental matters at any Facility that,
         individually or in the aggregate, could reasonably be expected to
         result in a Material Adverse Effect or with respect to any
         Environmental Claims that, individually or in the aggregate, could
         reasonably be expected to result in a Material Adverse Effect;

                  (ii) Notice of Certain Releases, Remedial Actions, Etc.
         Promptly upon the occurrence thereof, written notice describing in
         reasonable detail (a) any Release required to be reported to any
         federal, state or local governmental or regulatory agency under any
         applicable Environmental Laws, (b) any remedial action taken by any
         Loan Party or any other Person in response to (1) any Hazardous
         Materials Activities the existence of which could reasonably be
         expected to result in one or more Environmental Claims having,
         individually or in the aggregate, a Material Adverse Effect, or (2) any
         Environmental Claims that, individually or in the aggregate, could
         reasonably be expected to result in a Material Adverse Effect.

                  (iii) Written Communications Regarding Environmental Claims,
         Releases, Etc. As soon as practicable following the sending or receipt
         thereof by any Loan Party, a copy of any and all written communications
         with respect to (a) any Environmental Claims that, individually or in
         the aggregate, could reasonably be expected to result in a Material
         Adverse Effect, (b) any Release required to be reported to any federal,
         state or local governmental or regulatory agency, and (c) any request
         for information from any governmental agency that suggests such agency
         is investigating whether such Loan Party may be potentially responsible
         for any Hazardous Materials Activity that, individually or in the
         aggregate, could reasonably be expected to result in a Material Adverse
         Effect.

                  (iv) Notice of Certain Proposed Actions Having Environmental
         Impact. Prompt written notice describing in reasonable detail (a) any
         proposed acquisition of stock, assets, or property by any Loan Party
         that could reasonably be expected to (1) expose any Loan Party to, or
         result in, Environmental Claims that could reasonably be expected to
         result in, individually or in the aggregate, a Material Adverse Effect
         or (2) affect the ability of any Loan Party to maintain in full force
         and effect all material Governmental Authorizations required under any
         Environmental Laws for its operations and (b) any proposed action to be
         taken by any Loan Party to commence manufacturing or other industrial
         operations or to modify current operations in a manner that could

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         reasonably be expected to subject the Loan Parties to any material
         additional obligations or requirements under any Environmental Laws
         that could reasonably be expected to result in, individually or in the
         aggregate, a Material Adverse Effect.

                  B. BORROWER'S ACTIONS REGARDING HAZARDOUS MATERIALS
ACTIVITIES, ENVIRONMENTAL CLAIMS AND VIOLATIONS OF ENVIRONMENTAL LAWS.

                  (i) Remedial Actions Relating to Hazardous Materials
         Activities. Borrower shall, in compliance with all applicable
         Environmental Laws, promptly undertake, and shall cause each other Loan
         Party promptly to undertake, any and all investigations, studies,
         sampling, testing, abatement, cleanup, removal, remediation or other
         response actions necessary to remove, remediate, clean up or abate any
         Hazardous Materials Activity on, under or about any Facility that is in
         violation of any Environmental Laws or that presents a material risk of
         giving rise to an Environmental Claim that could reasonably be expected
         to result, individually or in the aggregate, in a Material Adverse
         Effect.

                  (ii) Actions with Respect to Environmental Claims and
         Violations of Environmental Laws. Borrower shall promptly take, and
         shall cause each other Loan Party promptly to take, any and all actions
         necessary to (i) cure any violation of applicable Environmental Laws by
         Borrower or such Loan Party that could reasonably be expected to result
         in, individually or in the aggregate, a Material Adverse Effect and
         (ii) make an appropriate response to any Environmental Claim against
         any Loan Party and discharge any obligations it may have to any Person
         thereunder where failure to do so could reasonably be expected to
         result in, individually or in the aggregate, a Material Adverse Effect.

         6.8      EXECUTION OF SUBSIDIARY GUARANTY AND PERSONAL PROPERTY
                  COLLATERAL DOCUMENTS AFTER THE CLOSING DATE.

                  A. EXECUTION OF SUBSIDIARY GUARANTY AND PERSONAL PROPERTY
COLLATERAL DOCUMENTS. In the event that any Person becomes a Material Subsidiary
of Borrower after the date hereof, Borrower will promptly notify Administrative
Agent of that fact and cause such Material Subsidiary to execute and deliver to
Administrative Agent a counterpart of the Subsidiary Guaranty and Security
Agreement and to take all such further actions and execute all such further
documents and instruments (including actions, documents and instruments
comparable to those described in subsection 4.1L) as may be necessary or, in the
opinion of Administrative Agent, desirable to create in favor of Administrative
Agent, for the benefit of Lenders, a valid and perfected First Priority Lien on
all of the personal and mixed property assets of such Material Subsidiary
described in the applicable forms of Collateral Documents. In addition, as
provided in the Security Agreement, Borrower shall, or shall cause the Material
Subsidiary that owns the Capital Stock of such Person, to execute and deliver to
Administrative Agent a supplement to the Security Agreement and to deliver to
Administrative Agent all certificates representing such Capital Stock of such
Person (accompanied by irrevocable undated stock powers, duly endorsed in
blank).

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                  B. FOREIGN SUBSIDIARIES. In the event that any Person becomes
a Foreign Subsidiary of Borrower after the date hereof, Borrower will promptly
notify Administrative Agent of that fact and, if such Subsidiary is directly
owned by Borrower or a Domestic Subsidiary, cause such Subsidiary to execute and
deliver to Administrative Agent such documents and instruments and take such
further actions (including actions, documents and instruments comparable to
those described in subsection 4.1L) as may be necessary, or in the reasonable
opinion of Administrative Agent, desirable to create in favor of Administrative
Agent, for the benefit of Lenders, a valid and perfected First Priority Lien on
65% of the capital stock of such Foreign Subsidiary.

                  C. SUBSIDIARY ORGANIZATIONAL DOCUMENTS, LEGAL OPINIONS, ETC.
Borrower shall deliver to Administrative Agent, together with such Loan
Documents, (i) certified copies of such Material Subsidiary's Organizational
Documents, together with a good standing certificate from the Secretary of State
of the jurisdiction of its organization, (ii) a certificate executed by the
secretary or similar officer of such Material Subsidiary as to (a) the fact that
the attached resolutions of the Governing Body of such Material Subsidiary
approving and authorizing the execution, delivery and performance of such Loan
Documents are in full force and effect and have not been modified or amended and
(b) the incumbency and signatures of the officers of such Material Subsidiary
executing such Loan Documents, (iii) an executed supplement to the Security
Agreement evidencing the pledge of the Capital Stock of such Material Subsidiary
by Borrower or a Subsidiary of Borrower that owns such Capital Stock,
accompanied by certificate evidencing such Capital Stock, together with an
irrevocable undated stock powers duly endorsed in blank and satisfactory in form
and substance to Administrative Agent, and (iv) a favorable opinion of counsel
to such Material Subsidiary, in form and substance satisfactory to
Administrative Agent and its counsel, as to (a) the due organization and good
standing of such Material Subsidiary, (b) the due authorization, execution and
delivery by such Material Subsidiary of such Loan Documents, (c) the
enforceability of such Loan Documents against such Material Subsidiary and (d)
such other matters (including matters relating to the creation and perfection of
Liens in any Collateral pursuant to such Loan Documents) as Administrative Agent
may reasonably request, all of the foregoing to be satisfactory in form and
substance to Administrative Agent and its counsel.

         6.9      MATTERS RELATING TO ADDITIONAL REAL PROPERTY COLLATERAL.

                  A. ADDITIONAL MORTGAGES, ETC. From and after the Closing Date,
in the event that (i) Parent, Borrower or any Subsidiary Guarantor acquires any
Material Real Property or (ii) at the time any Person becomes a Subsidiary
Guarantor, such Person owns or holds any Material Real Property, in either case
excluding any such Real Property Asset the encumbrancing of which requires the
consent of any applicable lessor or then-existing senior lienholder, where
Parent and its Subsidiaries have attempted in good faith, but are unable, to
obtain such lessor's or senior lienholder's consent (any such non-excluded
Material Real Property described in the foregoing clause (i) or (ii) being an
"ADDITIONAL MORTGAGED PROPERTY"), Parent, Borrower or such Subsidiary Guarantor
shall deliver to Administrative Agent, as soon as practicable after such Person
acquires such Mortgaged Property or becomes a Subsidiary Guarantor, as the case
may be, a fully executed and notarized Mortgage in proper form for recording in
all appropriate places in all applicable jurisdictions, encumbering the

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interest of such Loan Party in such Mortgaged Property and such opinions,
appraisal, documents, title insurance, environmental reports that may be
reasonably required by Administrative Agent.

                  B. REAL ESTATE APPRAISALS. Borrower shall, and shall cause
each of the other Loan Parties to, permit an independent real estate appraiser
reasonably satisfactory to Administrative Agent, upon reasonable notice, to
visit and inspect any Additional Mortgaged Property for the purpose of preparing
an appraisal of such Additional Mortgaged Property satisfying the requirements
of any applicable laws and regulations (in each case to the extent required
under such laws and regulations as determined by Administrative Agent in its
discretion).

                  C. COLLATERAL ACCESS AGREEMENT. From and after the Closing
Date, in the event that (i) Parent, Borrower or any Subsidiary Guarantor
acquires any Leasehold Property or (ii) at the time any Person becomes a
Subsidiary Guarantor, such Person owns or holds any Leasehold Property, in
either case, (x) that is not a Material Property and (y) where Parent, Borrower
or any such Subsidiary Guarantor holds on a regular basis at such Leasehold
Property, personal property with a fair market value in excess of (or Parent,
Borrower or such Subsidiary Guarantor anticipates that the fair market value of
such personal property held on a regular basis will, at any time during the term
of such lease, equal to or exceed) $5,000,000, Parent, Borrower or such
Subsidiary Guarantor, as the case may be, shall use its respective commercially
reasonable efforts to deliver to Administrative Agent, as soon as practicable
after such Person acquires such Leasehold Property or becomes a Subsidiary
Guarantor, as the case may be, a fully executed Collateral Access Agreement.

                  D. OPTIONAL GUARANTY. In the event that any Subsidiary of
Parent executes a guaranty of the Senior Subordinated Notes or the Parent Junior
Subordinated Notes, Borrower will cause such Subsidiary to execute and deliver
to Administrative Agent a counterpart of the Subsidiary Guaranty and Security
Agreement, and cause each such Subsidiary to take, all such further action and
execute all such further documents and instruments (including actions, documents
and instruments comparable to those described in subsection 4.1L) as may be
necessary in the opinion of Administrative Agent, desirable to create in favor
of Administrative Agent, for the benefit of Lenders, a valid First Priority Lien
on substantially all personal property and all Material Real Property of each
such Subsidiary described in the applicable forms of Collateral Documents.

SECTION 7. BORROWER'S NEGATIVE COVENANTS

                  Borrower covenants and agrees that, so long as any of the
Commitments hereunder shall remain in effect and until payment in full of all of
the Loans and other Obligations and the cancellation or expiration of all
Letters of Credit, unless Requisite Lenders shall otherwise give prior written
consent, Borrower shall perform, and shall cause each of the other Loan Parties
to perform, all covenants in this Section 7.

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         7.1      INDEBTEDNESS.

                  Parent and Borrower shall not, and shall not permit any of
their respective Subsidiaries to, directly or indirectly, create, incur, assume
or guaranty, or otherwise become or remain directly or indirectly liable with
respect to, any Indebtedness, except:

                  (i) Loan Parties may become and remain liable with respect to
         the Obligations;

                  (ii) Parent, Borrower and their respective Subsidiaries may
         become and remain liable with respect to Contingent Obligations
         permitted by subsection 7.4 and, upon any matured obligations actually
         arising pursuant thereto, the Indebtedness corresponding to the
         Contingent Obligations so extinguished;

                  (iii) Borrower and its Subsidiaries may become and remain
         liable with respect to Indebtedness in respect of (i) Capital Leases
         and (ii) Purchase Money Indebtedness aggregating (with respect to
         clauses (i) and (ii)) not in excess of $15,000,000 outstanding at any
         one time;

                  (iv) Borrower may become and remain liable with respect to
         Indebtedness to any Subsidiary Guarantor, and any Subsidiary of
         Borrower may become and remain liable with respect to Indebtedness to
         Borrower or any other Subsidiary Guarantor of Borrower; provided that
         (a) all such intercompany Indebtedness shall be evidenced by promissory
         notes, (b) all such intercompany Indebtedness owed by Borrower to any
         Subsidiary Guarantor shall be subordinated in right of payment to the
         payment in full of the Obligations pursuant to the terms of the
         applicable promissory notes or an intercompany subordination agreement,
         (c) any payment by any Subsidiary of Borrower under any guaranty of the
         Obligations shall result in a pro tanto reduction of the amount of any
         intercompany Indebtedness owed by such Subsidiary to Borrower or to any
         of its Subsidiaries for whose benefit such payment is made, and (d) the
         aggregate principal amount of all Indebtedness of all Subsidiaries of
         Borrower that are not Subsidiary Guarantors to Borrower and the
         Subsidiary Guarantors shall not exceed $10,000,000 at any time
         outstanding;

                  (v) Borrower may remain liable with respect to Indebtedness
         evidenced by the Senior Subordinated Notes in an aggregate principal
         amount not to exceed $146,000,000;

                  (vi) Borrower or a Subsidiary of Borrower may become and
         remain liable with respect to Indebtedness of any Person assumed in
         connection with any acquisition of such Person permitted under
         subsection 7.3 and a Person that becomes a direct or indirect
         wholly-owned Subsidiary of Borrower as a result of any acquisition
         permitted under subsection 7.3 may remain liable with respect to
         Indebtedness existing on the date of such acquisition; provided that
         such Indebtedness is not created in anticipation of such acquisition;
         and provided, further that such Indebtedness does not in the aggregate
         exceed at any time outstanding $5,000,000;

                                      107
<PAGE>

                  (vii) Foreign Subsidiaries of Borrower may become and remain
         liable with respect to other Indebtedness in an aggregate principal
         amount not to exceed $10,000,000 at any time outstanding;

                  (viii) Borrower and its Subsidiaries, as applicable, may
         remain liable with respect to, Indebtedness described in Schedule 7.1
         annexed hereto;

                  (ix) Borrower and its Subsidiaries, as applicable, may become
         and remain liable with respect to Indebtedness which refinances,
         refunds or replaces the Indebtedness described in Schedule 7.1,
         pursuant to documentation in form and substance reasonably satisfactory
         to Administrative Agent; provided that (w) such refinancing
         Indebtedness shall be incurred by Borrower or such applicable
         Subsidiary, as the case may be, that incurred the Indebtedness being
         refinanced that is described in Schedule 7.1, (x) the maturity date of
         such refinancing Indebtedness shall be no earlier than the maturity
         date of the Indebtedness described in Schedule 7.1 that is being
         refinanced, (y) the weighted average life to maturity of such
         refinancing Indebtedness at the time of such refinancing is no less
         than the weighted average life to maturity of the Indebtedness being
         refinanced, and (z) the aggregate principal amount of such refinancing
         Indebtedness shall be less than the lesser of (1) the sum of the
         aggregate principal amount of the Indebtedness being refinanced as of
         the date of such refinancing plus all related costs, fees and expenses
         related to the refinancing and (2) the aggregate principal amount of
         such Indebtedness as of the Closing Date;

                  (x) Parent may remain liable with respect to Indebtedness
         evidenced by the Parent Junior Subordinated Notes in an aggregate
         principal amount not to exceed $35,000,000 (as such amount may be
         increased to the extent of paid-in-kind payments after the Closing Date
         in accordance with the terms of the Parent Junior Subordinated Notes);
         and

                  (xi) Borrower and its Subsidiaries may become and remain
         liable with respect to other Indebtedness in an aggregate principal
         amount not to exceed $15,000,000 at any time outstanding.

         7.2      LIENS AND RELATED MATTERS.

                  A. PROHIBITION ON LIENS. Each of Parent and Borrower shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly,
create, incur, assume or permit to exist any Lien on or with respect to any
property or asset of any kind (including any document or instrument in respect
of goods or accounts receivable) of Parent, Borrower or such Subsidiary, whether
now owned or hereafter acquired, or any income or profits therefrom, or file or
permit the filing of, or permit to remain in effect, any financing statement or
other similar notice of any Lien with respect to any such property, asset,
income or profits under the UCC or under any similar recording or notice
statute, except:

                  (i) Permitted Encumbrances;

                                      108
<PAGE>

                  (ii) Liens on any asset existing at the time of acquisition of
         such asset by Borrower or a Subsidiary, or Liens to secure the payment
         of all or any part of the purchase price of an asset upon the
         acquisition of such asset by Borrower or a Subsidiary or to secure any
         Indebtedness permitted hereby incurred by Borrower or a Subsidiary at
         the time of or within ninety days after the acquisition of such asset,
         which Indebtedness is incurred for the purpose of financing all or any
         part of the purchase price thereof; provided, however, that the Lien
         shall apply only to the asset so acquired and proceeds thereof; and
         provided, further, that all such Liens do not in the aggregate secure
         Indebtedness in excess of $15,000,000 at any time;

                  (iii) Liens described in Schedule 7.2 annexed hereto;

                  (iv) Other Liens securing Indebtedness in an aggregate amount
         not to exceed $5,000,000 at any time outstanding; and

                  (v) Liens on assets of Foreign Subsidiaries securing
         Indebtedness permitted pursuant to subsection 7.1(vii).

                  B. EQUITABLE LIEN IN FAVOR OF LENDERS. If Parent or any of its
Subsidiaries shall create or assume any Lien upon any of its properties or
assets, whether now owned or hereafter acquired, other than Liens excepted by
the provisions of subsection 7.2A, it shall make or cause to be made effective
provision whereby the Obligations will be secured by such Lien equally and
ratably with any and all other Indebtedness secured thereby as long as any such
Indebtedness shall be so secured; provided that, notwithstanding the foregoing,
this covenant shall not be construed as a consent by Requisite Lenders to the
creation or assumption of any such Lien not permitted by the provisions of
subsection 7.2A.

                  C. NO FURTHER NEGATIVE PLEDGES. Neither Parent nor any of its
Subsidiaries shall enter into any agreement (other than an agreement prohibiting
only the creation of Liens securing Subordinated Indebtedness) prohibiting the
creation or assumption of any Lien upon any of its properties or assets, whether
now owned or hereafter acquired, except with respect to specific property
encumbered to secure payment of particular Indebtedness or to be sold pursuant
to an executed agreement with respect to an Asset Sale.

                  D. NO RESTRICTIONS ON SUBSIDIARY DISTRIBUTIONS TO BORROWER OR
OTHER SUBSIDIARIES. Parent will not, and will not permit any of its Subsidiaries
to, create or otherwise cause or suffer to exist or become effective any
consensual encumbrance or restriction of any kind on the ability of any such
Subsidiary to (i) pay dividends or make any other distributions on any of such
Subsidiary's Capital Stock owned by Borrower or any other Subsidiary of
Borrower, (ii) repay or prepay any Indebtedness owed by such Subsidiary to
Borrower or any other Subsidiary of Borrower, (iii) make loans or advances to
Borrower or any other Subsidiary of Borrower, or (iv) transfer any of its
property or assets to Borrower or any other Subsidiary of Borrower, except (a)
as provided in this Agreement and (b) as may be provided in an agreement with
respect to an Asset Sale (but solely with respect to the assets subject to such
Asset Sale).

                                      109
<PAGE>

         7.3      INVESTMENTS; ACQUISITIONS.

                  Each of Parent and Borrower shall not, and shall not permit
any of its Subsidiaries to, directly or indirectly, make or own any Investment
in any Person, including any Joint Venture, or acquire, by purchase or
otherwise, all or substantially all the business, property or fixed assets of,
or Capital Stock or other ownership interest of any Person, or any division or
line of business of any Person except:

                  (i) Parent and its Subsidiaries may make and own Investments
         in Cash Equivalents (and may continue to hold such Investments
         notwithstanding that such Investments may no longer qualify as a Cash
         Equivalent);

                  (ii) Parent and its Subsidiaries may continue to own the
         Investments owned by them as of the Closing Date in any Subsidiaries of
         Parent, Parent may make and own additional equity Investments in
         Borrower and Borrower and Subsidiary Guarantors may make and own
         additional equity Investments in their respective Subsidiary
         Guarantors;

                  (iii) Borrower and its Subsidiaries may make intercompany
         loans to the extent permitted under subsection 7.1(iv);

                  (iv) Borrower and its Subsidiaries may make Consolidated
         Capital Expenditures permitted by subsection 7.8;

                  (v) Borrower and its Subsidiaries may continue to own the
         Investments owned by them and described in Schedule 7.3 annexed hereto;

                  (vi) Borrower and its Subsidiaries may make additional
         Investments in their respective wholly-owned Foreign Subsidiaries;
         provided that (a) the amount of all such Investments constituting
         equity Investments does not exceed $10,000,000 in the aggregate for all
         such Investments since the Closing Date and (b) the amount of all such
         Investments constituting loans or advances permitted under subsection
         7.1(iv) does not exceed $10,0000,000 in aggregate principal amount at
         any time outstanding;

                  (vii) Borrower and its Subsidiaries may make and own other
         Investments in an aggregate amount not to exceed at any time
         $10,000,000;

                  (viii) Borrower may acquire and hold obligations of one or
         more officers or other employees of Borrower or its Subsidiaries in
         connection with such officers' or employees' acquisition of shares of
         Parent's common stock in an aggregate amount at any time outstanding
         not to exceed $5,000,000 (to the extent that such acquisition and
         holding do not violate any applicable law or regulation);

                  (ix) Borrower and its Subsidiaries may receive and hold
         promissory notes and other non-cash consideration received in
         connection with any Asset Sale permitted by subsection 7.7;

                                      110
<PAGE>
                  (x) Borrower and its Subsidiaries may acquire Securities in
         connection with the satisfaction or enforcement of Indebtedness or
         claims due or owing to Borrower or any of its Subsidiaries or as
         security for any such Indebtedness or claim; and

                  (xi) after the Closing Date, Borrower and its Subsidiaries may
         consummate Permitted Acquisitions upon the satisfaction of the
         following conditions:

                           (a) on the date of consummation of such acquisition
                  (such date being the "PERMITTED ACQUISITION CLOSING DATE" for
                  such acquisition), EBITDA attributable to the New Business or
                  Person so acquired shall have a positive EBITDA for the four
                  Fiscal Quarter period most recently ended (calculated, as
                  applicable, in accordance with the definition of "Consolidated
                  EBITDA" herein and clause (iv) of the definition of "Pro Forma
                  Basis"); provided, however, that the satisfaction of the
                  condition contained in this clause (a) shall not be required
                  in connection with any Permitted Acquisition in which the
                  aggregate consideration paid by Borrower and its Subsidiaries
                  is less than $10,000,000;

                           (b) Borrower shall have complied with the
                  requirements of subsections 6.8 and 6.9, to the extent
                  applicable, on or promptly following the Permitted Acquisition
                  Closing Date;

                           (c) Borrower shall have delivered a disclosure
                  statement updating each of the Schedules to this Agreement and
                  the other Loan Documents to reflect any factual revisions or
                  modifications to the information set forth therein resulting
                  from such acquisition; provided that any such update which
                  alters the substantive effect of any representation or
                  warranty, covenant or any other term or condition of this
                  Agreement or any other Loan Document or which discloses an
                  event or circumstance that, in any case, would otherwise
                  require the consent of Administrative Agent, Requisite Lenders
                  or Lenders to such modification, event or circumstance, shall
                  not constitute a modification of this Agreement or any other
                  Loan Document or a permitted disclosure hereunder or
                  thereunder, and shall not excuse any Event of Default or
                  Potential Event of Default which may otherwise arise in
                  connection therewith, without written consent required
                  hereunder of Administrative Agent, Requisite Lenders or
                  Lenders, as the case may be;

                           (d) (x) the sum of (1) the aggregate amount of Cash
                  consideration paid by Borrower and its Subsidiaries for
                  Permitted Acquisitions and (2) the aggregate amount of
                  Indebtedness assumed or created in connection with any such
                  Permitted Acquisitions, shall not exceed $15,000,000 in any
                  Fiscal Year and (y) the aggregate amount of consideration
                  consisting of equity Securities of Holdings or Parent paid by
                  Borrower and its Subsidiaries for Permitted Acquisitions shall
                  not exceed $15,000,000 in any Fiscal Year;

                           (e) after giving effect to such acquisition, (1)
                  Borrower and its Subsidiaries shall not be engaged in any
                  business not permitted by

                                      111
<PAGE>

                  subsection 7.11, (2) Borrower shall be in compliance on a pro
                  forma basis after giving effect to such acquisition (and any
                  Indebtedness incurred in connection therewith) with each of
                  the financial covenants contained in subsection 7.6, (3) no
                  Event of Default or Potential Event of Default shall have
                  occurred and be continuing or would result from such
                  acquisition, and (4) Borrower shall have delivered to
                  Administrative Agent an Officer's Certificate to the effect
                  set forth in the foregoing clauses (1) through (3) and a
                  Compliance Certificate to evidence clause (2);

                           (f) (x) prior to the consummation of any Permitted
                  Acquisition having EBITDA attributable to the New Business or
                  Person so acquired (calculated, as applicable, in accordance
                  with the definition of "Consolidated EBITDA" herein or such
                  other definition of EBITDA as may be reasonably acceptable to
                  Administrative Agent for the four Fiscal Quarter period most
                  recently ended prior to the Permitted Acquisition Closing Date
                  (the "RELEVANT PERIOD")) equal to or greater than (A) 5% of
                  Consolidated EBITDA of Parent and its Subsidiaries (calculated
                  without giving effect to such Permitted Acquisition) for the
                  Relevant Period or (B) 10% of the total consolidated revenues
                  of Parent and its Subsidiaries (calculated without giving
                  effect to such Permitted Acquisition) for the Relevant Period,
                  Borrower shall deliver to Administrative Agent a copy,
                  prepared in conformity with GAAP (subject to year-end
                  adjustments and the absence of footnotes), of audited
                  financial statements of the Person or New Business so acquired
                  as of the last day of the Relevant Period and (y) prior to the
                  consummation of any Permitted Acquisition having EBITDA
                  attributable to the New Business or Person so acquired
                  (calculated, as applicable, in accordance with the definition
                  of "Consolidated EBITDA" herein or such other definition of
                  EBITDA as may be reasonably acceptable to Administrative Agent
                  for the Relevant Period) less than (A) 5% of Consolidated
                  EBITDA of Parent and its Subsidiaries (calculated without
                  giving effect to such Permitted Acquisition) for the Relevant
                  Period or (B) 10% of total consolidated revenues of Parent and
                  its Subsidiaries (calculated without giving effect to such
                  Permitted Acquisition) for the Relevant Period, Borrower shall
                  deliver to Administrative Agent a copy, prepared in conformity
                  with GAAP (subject to year-end adjustments and the absence of
                  footnotes), of reviewed financial statements of the Person or
                  New Business so acquired as of the last day of the Relevant
                  Period; and

                           (g) on or before the Permitted Acquisition Closing
                  Date, Lenders shall have received from Borrower such other
                  documents and information (including financial information) in
                  respect of such Permitted Acquisition and New Business as any
                  Lender may reasonably request.

                                      112
<PAGE>

         7.4      CONTINGENT OBLIGATIONS.

                  Each of Parent and Borrower shall not, and shall not permit
any of its Subsidiaries to, directly or indirectly, create or become or remain
liable with respect to any Contingent Obligation, except:

                  (i) (a) Subsidiaries of Borrower may become and remain liable
         with respect to Contingent Obligations in respect of the Subsidiary
         Guaranty, and (b) Parent may become and remain liable with respect to
         Contingent Obligations in respect of the Parent Guaranty;

                  (ii) Borrower may become and remain liable with respect to
         Contingent Obligations in respect of Letters of Credit;

                  (iii) Borrower may become and remain liable with respect to
         Contingent Obligations under Hedge Agreements entered into for
         non-speculative purposes with respect to Indebtedness in an aggregate
         notional principal amount not to exceed at any time $40,000,000;

                  (iv) Borrower and its Subsidiaries may become and remain
         liable with respect to Contingent Obligations in respect of customary
         indemnification and purchase price adjustment obligations incurred in
         connection with Asset Sales or other sales of assets consistent with
         past business practices;

                  (v) Borrower and its Subsidiaries, as applicable, may remain
         liable with respect to Contingent Obligations described in Schedule 7.4
         annexed hereto; and

                  (vi) Borrower and its Subsidiaries may become and remain
         liable with respect to other Contingent Obligations; provided that the
         maximum aggregate liability, contingent or otherwise, of Borrower and
         its Subsidiaries in respect of all such Contingent Obligations shall at
         no time exceed $5,000,000.

         7.5      RESTRICTED JUNIOR PAYMENTS.

                  Parent and Borrower shall not, and shall not permit any of
their respective Subsidiaries to, directly or indirectly, declare, order, pay,
make or set apart any sum for any Restricted Junior Payment; provided that (i)
Borrower and Parent, as the case may be, may make Restricted Junior Payments (x)
on the Closing Date, (1) to consummate the Refinancing and the Merger and (2) to
pay an advisory fee to JPMorgan Partners in an aggregate amount not to exceed
$5,000,000 and (y) on or before November 16, 2002, to consummate the Existing
Preferred Stock Purchase, (ii) (x) Borrower may make regularly scheduled
payments of interest in respect of any Senior Subordinated Notes in accordance
with the terms of, and only to the extent required by, and subject to the
subordination provisions contained in, the Senior Subordinated Note Indenture,
as such indenture may be amended from time to time to the extent permitted under
subsection 7.12B, (y) Parent may make regularly scheduled payments of interest
in kind in respect of any Parent Junior Subordinated Notes in accordance with
the terms of, and

                                      113
<PAGE>

only to the extent required by, and subject to the subordination provisions
contained in, the Parent Junior Subordinated Note Indenture, as such agreement
may be amended from time to time to the extent permitted under subsection 7.12B,
and (z) after the fifth anniversary of the Parent Junior Subordinated Notes
Issue Date and, so long as no Event of Default or Potential Event of Default
shall have occurred and be continuing on the date such Restricted Junior Payment
is declared or to be made, nor would an Event of Default or Potential Event of
Default result from the making of such Restricted Junior Payment, (1) Parent may
make regularly scheduled payments of interest in cash in respect of any Parent
Junior Subordinated Notes in accordance with the terms of, and subject to the
subordination provisions contained in, the Parent Junior Subordinated Note
Indenture, as such agreement may be amended from time to time to the extent
permitted under subsection 7.12B and (2) Borrower may make Restricted Junior
Payments to Parent in an amount necessary to permit Parent to make Restricted
Junior Payments in accordance with the immediately preceding clause (z)(1), so
long as Parent applies the amount of any such Restricted Junior Payment for such
purpose, (iii) Borrower may make Restricted Junior Payments to Parent (a) in an
aggregate amount not to exceed $500,000 in any Fiscal Year, to the extent
necessary to permit Parent to pay its overhead expenses and (b) in an amount
necessary to permit Parent to discharge the consolidated tax liabilities of
Parent and its Subsidiaries paid in cash, in each case so long as Parent applies
the amount of any such Restricted Junior Payment for such purpose, (iv) Borrower
may make Restricted Junior Payments to pay Additional Costs in accordance with
the definition of Additional Costs, and (v) so long as (A) no Event of Default
or Potential Event of Default shall have occurred and be continuing on the date
such Restricted Junior Payment is declared or to be made, nor would an Event of
Default or Potential Event of Default result from the making of such Restricted
Junior Payment, (B) after giving effect to the making of such Restricted Junior
Payment Borrower shall be in pro forma compliance with each of the covenants
contained in subsection 7.6 for the most recent full Fiscal Quarter immediately
preceding the date of the payment of such Restricted Junior Payment for which
the relevant financial information has been delivered pursuant to clauses (ii)
and (iii) of subsection 6.1, and (C) Borrower shall have delivered to
Administrative Agent an Officer's Certificate in form and substance satisfactory
to Administrative Agent (including a calculation of the compliance with the
covenants contained in subsection 7.6) certifying as to the accuracy of the
foregoing clauses (A) and (B) above, (1) Borrower may make Restricted Junior
Payments to Parent to the extent necessary to permit Parent to purchase, redeem,
acquire or otherwise retire for value shares of Capital Stock of Parent held by
directors, officers or employees of Parent or Borrower or any of their
respective Subsidiaries, or options on any such shares or related stock
appreciation rights or similar securities owned by such directors, officers or
employees (or their estates of beneficiaries under their estates), in all cases
only upon death, disability, retirement, termination of employment or pursuant
to the terms of such stock option plan or any other agreement under which such
shares of Capital Stock, options, related rights or similar securities were
issued, in an aggregate amount not to exceed $2,500,000 in any Fiscal Year;
provided that Borrower may carry forward to each succeeding Fiscal Year the
aggregate amount of Restricted Payments permitted (but not made) pursuant to
this subsection 7.5(v)(1) in prior Fiscal Years, with up to a maximum amount of
$7,000,000 over the term of this Agreement and (2) Borrower may make Restricted
Junior Payments in an aggregate amount not to exceed $2,000,000 in any Fiscal
Year; provided that Borrower may carry forward to each succeeding Fiscal Year
the aggregate amount

                                      114
<PAGE>

of Restricted Payments permitted (but not made) pursuant to this subsection
7.5(v)(2) in prior Fiscal Years, with up to a maximum amount of $5,000,000
during the term of this Agreement.

         7.6      FINANCIAL COVENANTS.

                  A. MINIMUM INTEREST COVERAGE RATIO. Each Loan Party shall not
permit the ratio of (i) Consolidated EBITDA to (ii) Consolidated Cash Interest
Expense, in each case calculated on a Pro Forma Basis, for any four-Fiscal
Quarter period ending during any of the periods set forth below to be less than
the correlative ratio indicated:

<Table>
<Caption>
                                                                      MINIMUM INTEREST
                          PERIOD                                       COVERAGE RATIO
                          ------                                      ----------------
<S>                                                                   <C>
 Closing Date through September 30, 2003                                 2.05:1.00
 October 1, 2003 through March 31, 2004                                  2.15:1.00
 April 1, 2004 through June 30, 2004                                     2.20:1.00
 July 1, 2004 through September 30, 2004                                 2.25:1.00
 October 1, 2004 through March 31, 2005                                  2.35:1.00
 April 1, 2005 through June 30, 2005                                     2.40:1.00
 July 1, 2005 through September 30, 2005                                 2.45:1.00
 October 1, 2005 and thereafter                                          2.50:1.00
</Table>

                  B. MAXIMUM LEVERAGE RATIO. Each Loan Party shall not permit
the Consolidated Leverage Ratio, calculated on a Pro Forma Basis as of the last
day of the most recently ended Fiscal Quarter ending during any of the periods
set forth below to exceed the correlative ratio indicated:

<Table>
<Caption>
                         PERIOD                                   MAXIMUM LEVERAGE RATIO
                         ------                                   ----------------------
<S>                                                               <C>
Closing Date through September 30, 2003                                 5.25:1.00
October 1, 2003 through December 31, 2003                               4.95:1.00
January 1, 2004 through March 31, 2004                                  4.80:1.00
April 1, 2004 through June 30, 2004                                     4.60:1.00
</Table>

                                      115
<PAGE>

<Table>
<Caption>
                         PERIOD                                   MAXIMUM LEVERAGE RATIO
                         ------                                   ----------------------
<S>                                                               <C>
July 1, 2004 through September 30, 2004                                 4.40:1.00
October 1, 2004 through December 31, 2004                               4.20:1.00
January 1, 2005 through March 31, 2005                                  4.10:1.00
April 1, 2005 through June 30, 2005                                     4.00:1.00
July 1, 2005 through September 30, 2005                                 3.90:1.00
October 1, 2005 through December 31, 2005                               3.80:1.00
January 1, 2006 through March 31, 2006                                  3.70:1.00
April 1, 2006 through June 30, 2006                                     3.60:1.00
July 1, 2006 and thereafter                                             3.50:1.00
</Table>

         7.7      RESTRICTION ON FUNDAMENTAL CHANGES; ASSET SALES.

                  Each of Parent and Borrower shall not, and shall not permit
any of its Subsidiaries to, alter the corporate, capital or legal structure of
Parent or any of its Subsidiaries, or enter into any transaction of merger or
consolidation, or liquidate, wind-up or dissolve itself (or suffer any
liquidation or dissolution), or convey, sell, lease or sub-lease (as lessor or
sublessor), transfer or otherwise dispose of, in one transaction or a series of
transactions, all or any part of its business, property or assets (including its
notes or receivables and Capital Stock of a Subsidiary, whether newly issued or
outstanding), whether now owned or hereafter acquired, except:

                  (i) (x) any Subsidiary of Borrower may be merged with or into
         Borrower or any wholly-owned Subsidiary Guarantor, or be liquidated,
         wound up or dissolved, or all or any part of its business, property or
         assets may be conveyed, sold, leased, transferred or otherwise disposed
         of, in one transaction or a series of transactions, to Borrower or any
         wholly-owned Subsidiary Guarantor; provided that, in the case of such a
         merger, Borrower or such wholly-owned Subsidiary Guarantor shall be the
         continuing or surviving Person and (y) any Foreign Subsidiary of
         Borrower may be merged with or into any other Foreign Subsidiary of
         Borrower, or be liquidated, wound up or dissolved, or all or any part
         of its business, property or assets may be conveyed, sold, leased,
         transferred or otherwise disposed of, in one transaction or a series of
         transactions, to any Foreign Subsidiary of Borrower;

                  (ii) Borrower and its Subsidiaries may sell or otherwise
         dispose of assets in transactions that do not constitute Asset Sales;
         provided that the consideration received for such assets shall be in an
         amount at least equal to the fair market value thereof;

                                      116
<PAGE>

                  (iii) Borrower and its Subsidiaries may dispose of obsolete,
         worn out or surplus property in the ordinary course of business;

                  (iv) Borrower and its Subsidiaries may make Asset Sales of
         assets having a fair market value not in excess of $10,000,000 in any
         Fiscal Year and $25,000,000 in the aggregate for all such Asset Sales
         during the term of this Agreement; provided that (a) the consideration
         received for such assets shall be in an amount at least equal to the
         fair market value thereof; (b) the sole consideration received shall
         consist of not less than 80% in Cash; and (c) the proceeds of such
         Asset Sales shall be applied as required by subsection 2.4B(iii)(a) or
         subsection 2.4D;

                  (v) in order to resolve disputes that occur in the ordinary
         course of business, Borrower and its Subsidiaries may discount or
         otherwise compromise for less than the face value thereof, notes or
         accounts receivable;

                  (vi) Borrower or a Subsidiary may sell or dispose of shares of
         Capital Stock of any of its Subsidiaries in order to qualify members of
         the Governing Body of the Subsidiary if required by applicable law; and

                  (vii) Any Person may substantially simultaneously be merged or
         consolidated with or into Borrower or any Subsidiary if the acquisition
         of the Capital Stock of such Person by Borrower or such Subsidiary
         would have been permitted pursuant to subsection 7.3; provided that (a)
         in the case of Borrower, Borrower shall be the continuing or surviving
         Person, (b) if a Subsidiary is not the surviving or continuing Person,
         the surviving Person becomes a Subsidiary and complies with the
         provisions of subsection 6.8 and (c) no Potential Event of Default or
         Event of Default shall have occurred or be continuing after giving
         effect thereto.

         7.8      CONSOLIDATED CAPITAL EXPENDITURES.

                  (i) Each of Parent and Borrower shall not, and shall not
         permit its Subsidiaries to, make or incur Consolidated Capital
         Expenditures net of any proceeds received by Borrower from the sale of
         scaffolding (other than new scaffolding), in any Fiscal Year indicated
         below, in an aggregate amount in excess of the corresponding amount
         (the "MAXIMUM CONSOLIDATED NET CAPITAL EXPENDITURES AMOUNT") set forth
         below opposite such Fiscal Year; provided that the Maximum Consolidated
         Net Capital Expenditures Amount for any Fiscal Year shall be increased
         by an amount equal to the excess, if any, of the Maximum Consolidated
         Net Capital Expenditures Amount for the previous Fiscal Year over the
         actual amount of Consolidated Capital Expenditures (net of any proceeds
         received by Borrower or any Subsidiary from the sale of scaffolding
         equipment (other than scaffolding inventory held for sale in the
         ordinary course of business)) for such previous Fiscal Year; provided,
         further, that in no event shall the amount of such increase exceed 50%
         of the Maximum Consolidated Net Capital Expenditures Amount for such
         previous Fiscal Year (prior to any adjustment in accordance with this
         proviso):

                                      117
<PAGE>

<Table>
<Caption>
                                                                  MAXIMUM CONSOLIDATED NET
                                    FISCAL YEAR                     CAPITAL EXPENDITURES
                                    -----------                   ------------------------
<S>                                                              <C>
                                       2002                             $20,000,000
                                       2003                             $20,000,000
                                       2004                             $20,000,000
                             2005 and each Fiscal Year
                                    thereafter                          $25,000,000
</Table>

                  (ii) Notwithstanding anything contained herein to the
         contrary, Borrower and its Subsidiaries may make or incur Consolidated
         Capital Expenditures actually made or incurred with cash capital
         contributions made after the Closing Date to Borrower or any of its
         Subsidiaries by Equity Investors (through Holdings and Parent) and
         specifically identified in a certificate delivered by an Officer of
         Borrower to Administrative Agent on or about the time such capital
         contribution is made; provided that the aggregate amount of all such
         Consolidated Capital Expenditures made or incurred after the Closing
         Date shall not exceed $20,000,000.

         7.9      TRANSACTIONS WITH SHAREHOLDERS AND AFFILIATES.

                  Each of Parent and Borrower shall not, and shall not permit
any of its Subsidiaries to, directly or indirectly, enter into or permit to
exist any transaction (including the purchase, sale, lease or exchange of any
property or the rendering of any service) with any holder of 10% or more of any
class of equity Securities of Holdings, Parent or Borrower or with any Affiliate
of Holdings, Parent or Borrower or of any such holder, on terms that are less
favorable to Borrower or such other Loan Party, as the case may be, than those
that might be obtained at the time from Persons who are not such a holder or
Affiliate; provided that the foregoing restriction shall not apply to (i) any
transaction between Parent or Borrower and any of the wholly-owned Subsidiaries
of Parent or between any of the wholly-owned Subsidiaries of Parent, (ii)
reasonable and customary fees paid to members of the Governing Bodies of Parent
and its Subsidiaries, (iii) any success bonuses paid on the Closing Date by
Borrower to management of Borrower in connection with the transactions
contemplated by the Loan Documents and the Related Documents to occur on or
before the Closing Date; provided that the aggregate amount of such success
bonuses shall not exceed $5,000,000 or (iv) any advisory fee paid by Parent or
Borrower to JP Morgan Partners on the Closing Date in an aggregate amount not to
exceed $5,000,000.

         7.10     LIMITATIONS ON SALES AND LEASE-BACKS.

                  Each of Parent and Borrower shall not, and shall not permit
any of its Subsidiaries to, directly or indirectly, become or remain liable as
lessee or as a guarantor or other surety with

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respect to any lease, whether an Operating Lease or a Capital Lease, of any
property (whether real, personal or mixed), whether now owned or hereafter
acquired, (i) that Parent or any of its Subsidiaries has sold or transferred or
is to sell or transfer to any other Person (other than Parent or any of its
Subsidiaries) or (ii) that Parent or any of its Subsidiaries intends to use for
substantially the same purpose as any other property that has been or is to be
sold or transferred by Parent or any of its Subsidiaries to any Person (other
than Parent or any of its Subsidiaries) in connection with such lease; provided,
however, that Borrower and its Subsidiaries may become and remain liable as
lessee, guarantor or other surety with respect to any such lease, to the extent
that the aggregate proceeds resulting from the sale of any such property in
connection with any such transaction, together with the Net Asset Sales Proceeds
that are not Repayable Net Asset Sale Proceeds pursuant to subsection 2.4B(iii),
shall not exceed $3,000,000 in any Fiscal Year; and provided, further, that
Borrower and its Subsidiaries may make Property Sale-Leasebacks.

         7.11     CONDUCT OF BUSINESS.

From and after the Closing Date, Borrower shall not, and shall not permit any of
its Subsidiaries to, engage in any business other than (i) the businesses (and
immaterial ancillary businesses) engaged in by Borrower and its Subsidiaries on
the Closing Date and similar or related businesses and (ii) such other lines of
business as may be consented to by Requisite Lenders. Parent shall not (i)
engage in any business other than entering into and performing its obligations
under and in accordance with the Loan Documents and Related Agreements to which
it is a party and other activities incidental thereto or (ii) own any assets
other than (a) the capital stock of Borrower and (b) Cash and Cash Equivalents
in an amount not to exceed $500,000 at any one time for the purpose of paying
general operating expenses of Parent or otherwise holding such Cash or Cash
Equivalent pending application.

         7.12     AMENDMENTS OR WAIVERS OF CERTAIN AGREEMENTS; AMENDMENTS OF
                  DOCUMENTS RELATING TO SUBORDINATED INDEBTEDNESS.

                  A. AMENDMENTS OR WAIVERS OF CERTAIN AGREEMENTS. Neither Parent
nor Borrower nor any of its Subsidiaries will agree to any material amendment
to, or waive any of its material rights under, any Related Agreement after the
Closing Date without in each case obtaining the prior written consent of
Requisite Lenders to such amendment or waiver.

                  B. AMENDMENTS OF DOCUMENTS RELATING TO SUBORDINATED
INDEBTEDNESS. Borrower shall not, and shall not permit any of its Subsidiaries
to, amend or otherwise change the terms of any Subordinated Indebtedness, or
make any payment consistent with an amendment thereof or change thereto, if the
effect of such amendment or change is to increase the interest rate on such
Subordinated Indebtedness, change (to earlier dates) any dates upon which
payments of principal or interest are due thereon, change any event of default
or condition to an event of default with respect thereto (other than to
eliminate any such event of default or increase any grace period related
thereto), change the redemption, prepayment or defeasance provisions thereof,
change the subordination provisions thereof (or of any guaranty thereof), or
change any collateral therefor (other than to release such collateral), or if
the effect of such amendment or change, together with all other amendments or
changes made, is to increase materially the obligations of the obligor
thereunder or to confer any additional rights on the

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holders of such Subordinated Indebtedness (or a trustee or other representative
on their behalf) which would be adverse to Borrower or Lenders.

         7.13     FISCAL YEAR.

                  Neither Parent nor Borrower shall change its Fiscal Year-end
from December 31.

SECTION 8. EVENTS OF DEFAULT

                  If any of the following conditions or events ("EVENTS OF
DEFAULT") shall occur:

         8.1      FAILURE TO MAKE PAYMENTS WHEN DUE.

                  Failure by Borrower to pay any installment of principal of any
Loan when due, whether at stated maturity, by acceleration, by notice of
voluntary prepayment, by mandatory prepayment or otherwise; failure by Borrower
to pay when due any amount payable to an Issuing Lender in reimbursement of any
drawing under a Letter of Credit; or failure by Borrower to pay any interest on
any Loan or any fee or any other amount due under this Agreement within 3
Business Days after the date due; or

         8.2      DEFAULT IN OTHER AGREEMENTS.

                  (i) Failure of any Loan Party to pay when due any principal of
         or interest on or any other amount payable in respect of one or more
         items of Indebtedness (other than Indebtedness referred to in
         subsection 8.1) or Contingent Obligations in an individual principal
         amount of $3,000,000 or more or with an aggregate principal amount of
         $6,000,000 or more, in each case beyond the end of any grace period
         provided therefor; or

                  (ii) breach or default by any Loan Party with respect to any
         other material term of (a) one or more items of Indebtedness or
         Contingent Obligations in the individual or aggregate principal amounts
         referred to in clause (i) above or (b) any loan agreement, mortgage,
         indenture or other agreement relating to such item(s) of Indebtedness
         or Contingent Obligation(s), if the effect of such breach or default is
         to cause, or to permit the holder or holders of that Indebtedness or
         Contingent Obligation(s) (or a trustee on behalf of such holder or
         holders) to cause, that Indebtedness or Contingent Obligation(s) to
         become or be declared due and payable prior to its stated maturity or
         the stated maturity of any underlying obligation, as the case may be
         (upon the giving or receiving of notice, lapse of time, both, or
         otherwise); or

         8.3      BREACH OF CERTAIN COVENANTS.

                  Failure of Borrower to perform or comply with any term or
condition contained in subsection 2.5, 6.1(i), or 6.2 or Section 7 of this
Agreement; or

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         8.4      BREACH OF WARRANTY.

                  Any representation, warranty, certification or other statement
made by Borrower or any of the other Loan Parties in any Loan Document or in any
statement or certificate at any time given by any of the Loan Parties in writing
pursuant hereto or thereto or in connection herewith or therewith shall be false
in any material respect on the date as of which made; or

         8.5      OTHER DEFAULTS UNDER LOAN DOCUMENTS.

                  Any Loan Party shall default in the performance of or
compliance with any term contained in this Agreement or any of the other Loan
Documents, other than any such term referred to in any other subsection of this
Section 8, and such default shall not have been remedied or waived within 30
days after the earlier of (i) an Officer of Borrower or such Loan Party becoming
aware of such default or (ii) receipt by Borrower and such Loan Party of notice
from Administrative Agent or any Lender of such default; or

         8.6      INVOLUNTARY BANKRUPTCY; APPOINTMENT OF RECEIVER, ETC.

                  (i) A court having jurisdiction in the premises shall enter a
         decree or order for relief in respect of Parent, Borrower or any
         Material Subsidiary of Parent in an involuntary case under the
         Bankruptcy Code or under any other applicable bankruptcy, insolvency or
         similar law now or hereafter in effect, which decree or order is not
         stayed; or any other similar relief shall be granted under any
         applicable federal or state law; or

                  (ii) an involuntary case shall be commenced against Parent,
         Borrower or any other Material Subsidiary of Parent under the
         Bankruptcy Code or under any other applicable bankruptcy, insolvency or
         similar law now or hereafter in effect; or a decree or order of a court
         having jurisdiction in the premises for the appointment of a receiver,
         liquidator, sequestrator, trustee, custodian or other officer having
         similar powers over Parent, Borrower or any Material Subsidiary of
         Parent, or over all or a substantial part of its property, shall have
         been entered; or there shall have occurred the involuntary appointment
         of an interim receiver, trustee or other custodian of Parent, Borrower
         or any Material Subsidiary of Parent for all or a substantial part of
         its property; or a warrant of attachment, execution or similar process
         shall have been issued against any substantial part of the property of
         Parent, Borrower or any Material Subsidiary of Parent, and any such
         event described in this clause (ii) shall continue for 60 days unless
         dismissed, bonded or discharged; or

         8.7      VOLUNTARY BANKRUPTCY; APPOINTMENT OF RECEIVER, ETC.

                  (i) Parent, Borrower or any Material Subsidiary of Parent
         shall have an order for relief entered with respect to it or commence a
         voluntary case under the Bankruptcy Code or under any other applicable
         bankruptcy, insolvency or similar law now or hereafter in effect, or
         shall consent to the entry of an order for relief in an involuntary
         case, or to the conversion of an involuntary case to a voluntary case,
         under any such law, or shall consent to the appointment of or taking
         possession by a receiver, trustee or other

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         custodian for all or a substantial part of its property; or Parent,
         Borrower or any Material Subsidiary of Parent shall make any assignment
         for the benefit of creditors; or

                  (ii) Parent, Borrower or any Material Subsidiary of Parent
         shall be unable, or shall fail generally, or shall admit in writing its
         inability, to pay its debts as such debts become due; or the Governing
         Body of Parent, Borrower or any Material Subsidiary of Parent (or any
         committee thereof) shall adopt any resolution or otherwise authorize
         any action to approve any of the actions referred to in clause (i)
         above or this clause (ii); or

         8.8      JUDGMENTS AND ATTACHMENTS.

                  Any money judgment, writ or warrant of attachment or similar
process involving (i) in any individual case an amount in excess of $3,000,000
or (ii) in the aggregate at any time an amount in excess of $6,000,000 (in
either case not adequately covered by insurance as to which a solvent and
unaffiliated insurance company has acknowledged coverage) shall be entered or
filed against Parent or any of its Subsidiaries or any of their respective
assets and shall remain undischarged, unvacated, unbonded or unstayed for a
period of 60 days (or in any event later than five days prior to the date of any
proposed sale thereunder); or

         8.9      DISSOLUTION.

                  Any order, judgment or decree shall be entered against
Borrower or any other Loan Party decreeing the dissolution or split up of
Borrower or such other Loan Party and such order shall remain undischarged or
unstayed for a period in excess of 30 days; or

         8.10     EMPLOYEE BENEFIT PLANS.

                  There shall occur one or more ERISA Events which individually
or in the aggregate results in or might reasonably be expected to result in
liability of any Loan Party in excess of $5,000,000 during the term of this
Agreement; or there shall exist an amount of liability from unfunded benefit
liabilities, calculated in accordance with the provisions of subsection 5.11D,
which exceeds $5,000,000; or

         8.11     CHANGE IN CONTROL.

                  A Change in Control shall have occurred; or

         8.12     INVALIDITY OF LOAN DOCUMENTS; FAILURE OF SECURITY; REPUDIATION
                  OF OBLIGATIONS.

                  At any time after the execution and delivery thereof, (i) any
Loan Document or any provision thereof, for any reason other than the
satisfaction in full of all Obligations, shall cease to be in full force and
effect (other than in accordance with its terms) or shall be declared to be null
and void, (ii) Administrative Agent shall not have or shall cease to have a
valid and perfected First Priority Lien in any Collateral purported to be
covered by the Collateral Documents, in each case for any reason other than the
failure of Administrative Agent or any Lender to take any action within its
control and except to the extent that (a) such event relates to

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assets of Borrower or any of its Subsidiaries which are, individually and in the
aggregate, immaterial and (b) such event is insured under a title policy issued
to Administrative Agent for the benefit of Lenders and the relevant insurer
accepts in writing liability for any loss or damage sustained by Administrative
Agent as a result of it ceasing to have a valid and perfected First Priority
Lien under the insured Mortgage and acknowledges in writing that the insured
Mortgage is fully covered by the title insurance policy and that Administrative
Agent's recovery is not subject to any restrictions other than the provisions,
conditions and stipulations set forth in the relevant title insurance policy, or
(iii) any Loan Party shall contest the validity or enforceability of any Loan
Document or any provision thereof in writing or deny in writing that it has any
further liability, including with respect to future advances by Lenders, under
any Loan Document or any provision thereof to which it is a party.

THEN (i) upon the occurrence of any Event of Default described in subsection 8.6
or 8.7, each of (a) the unpaid principal amount of and accrued interest on the
Loans, (b) an amount equal to the maximum amount that may at any time be drawn
under all Letters of Credit then outstanding (whether or not any beneficiary
under any such Letter of Credit shall have presented, or shall be entitled at
such time to present, the drafts or other documents or certificates required to
draw under such Letter of Credit), and (c) all other Obligations shall
automatically become immediately due and payable, without presentment, demand,
protest or other requirements of any kind, all of which are hereby expressly
waived by Borrower, and the obligation of each Lender to make any Loan, the
obligation of Administrative Agent to issue any Letter of Credit and the right
of any Lender to issue any Letter of Credit hereunder shall thereupon terminate,
and (ii) upon the occurrence and during the continuation of any other Event of
Default, Administrative Agent shall, upon the written request or with the
written consent of Requisite Lenders, by written notice to Borrower, declare all
or any portion of the amounts described in clauses (a) through (c) above to be,
and the same shall forthwith become, immediately due and payable, and the
obligation of each Lender to make any Loan, the obligation of Administrative
Agent to issue any Letter of Credit and the right of any Lender to issue any
Letter of Credit hereunder shall thereupon terminate; provided that the
foregoing shall not affect in any way the obligations of Revolving Lenders or LC
Facility Lenders, as the case may be, under subsection 3.3C(i) or the
obligations of Revolving Lenders to purchase assignments of any unpaid Swing
Line Loans as provided in subsection 2.1A(iii).

                  Any amounts described in clause (b) above, when received by
Administrative Agent, shall be held by Administrative Agent pursuant to the
terms of the Security Agreement and shall be applied as therein provided.

SECTION 9. ADMINISTRATIVE AGENT

         9.1      APPOINTMENT.

                  A. APPOINTMENT OF ADMINISTRATIVE AGENT. CSFB is hereby
appointed Administrative Agent hereunder and under the other Loan Documents.
Each Lender hereby authorizes Administrative Agent to act as its agent in
accordance with the terms of this Agreement and the other Loan Documents.
Administrative Agent agrees to act upon the express conditions contained in this
Agreement and the other Loan Documents, as applicable. The

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provisions of this Section 9 are solely for the benefit of Administrative Agent
and Lenders and no Loan Party shall have rights as a third party beneficiary of
any of the provisions thereof. In performing its functions and duties under this
Agreement, Administrative Agent (other than as provided in subsection 2.1D)
shall act solely as an agent of Lenders and does not assume and shall not be
deemed to have assumed any obligation towards or relationship of agency or trust
with or for Borrower or any other Loan Party.

                  B. APPOINTMENT OF SUPPLEMENTAL COLLATERAL AGENTS. It is the
purpose of this Agreement and the other Loan Documents that there shall be no
violation of any law of any jurisdiction denying or restricting the right of
banking corporations or associations to transact business as agent or trustee in
such jurisdiction. It is recognized that in case of litigation under this
Agreement or any of the other Loan Documents, and in particular in case of the
enforcement of any of the Loan Documents, or in case Administrative Agent deems
that by reason of any present or future law of any jurisdiction it may not
exercise any of the rights, powers or remedies granted herein or in any of the
other Loan Documents or take any other action which may be desirable or
necessary in connection therewith, it may be necessary that Administrative Agent
appoint an additional individual or institution as a separate trustee,
co-trustee, collateral agent or collateral co-agent (any such additional
individual or institution being referred to herein individually as a
"SUPPLEMENTAL COLLATERAL AGENT" and collectively as "SUPPLEMENTAL COLLATERAL
AGENTS").

                  In the event that Administrative Agent appoints a Supplemental
Collateral Agent with respect to any Collateral, (i) each and every right,
power, privilege or duty expressed or intended by this Agreement or any of the
other Loan Documents to be exercised by or vested in or conveyed to
Administrative Agent with respect to such Collateral shall be exercisable by and
vest in such Supplemental Collateral Agent to the extent, and only to the
extent, necessary to enable such Supplemental Collateral Agent to exercise such
rights, powers and privileges with respect to such Collateral and to perform
such duties with respect to such Collateral, and every covenant and obligation
contained in the Loan Documents and necessary to the exercise or performance
thereof by such Supplemental Collateral Agent shall run to and be enforceable by
either Administrative Agent or such Supplemental Collateral Agent, and (ii) the
provisions of this Section 9 and of subsections 10.2 and 10.3 that refer to
Administrative Agent shall inure to the benefit of such Supplemental Collateral
Agent and all references therein to Administrative Agent shall be deemed to be
references to Administrative Agent and/or such Supplemental Collateral Agent, as
the context may require.

                  Should any instrument in writing from Borrower or any other
Loan Party be required by any Supplemental Collateral Agent so appointed by
Administrative Agent for more fully and certainly vesting in and confirming to
him or it such rights, powers, privileges and duties, Borrower shall, or shall
cause such Loan Party to, execute, acknowledge and deliver any and all such
instruments promptly upon request by Administrative Agent. In case any
Supplemental Collateral Agent, or a successor thereto, shall die, become
incapable of acting, resign or be removed, all the rights, powers, privileges
and duties of such Supplemental Collateral Agent, to the extent permitted by
law, shall vest in and be exercised by Administrative Agent until the
appointment of a new Supplemental Collateral Agent.

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         9.2      POWERS AND DUTIES; GENERAL IMMUNITY.

                  A. POWERS; DUTIES SPECIFIED. Each Lender irrevocably
authorizes Administrative Agent to take such action on such Lender's behalf and
to exercise such powers, rights and remedies hereunder and under the other Loan
Documents as are specifically delegated or granted to Administrative Agent by
the terms hereof and thereof, together with such powers, rights and remedies as
are reasonably incidental thereto. Administrative Agent shall have only those
duties and responsibilities that are expressly specified in this Agreement and
the other Loan Documents. Administrative Agent may exercise such powers, rights
and remedies and perform such duties by or through its agents or employees.
Administrative Agent shall not have, by reason of this Agreement or any of the
other Loan Documents, a fiduciary relationship in respect of any Lender or
Borrower; and nothing in this Agreement or any of the other Loan Documents,
expressed or implied, is intended to or shall be so construed as to impose upon
Administrative Agent any obligations in respect of this Agreement or any of the
other Loan Documents except as expressly set forth herein or therein.

                  B. NO RESPONSIBILITY FOR CERTAIN MATTERS. No Agent shall be
responsible to any Lender for the execution, effectiveness, genuineness,
validity, enforceability, collectibility or sufficiency of this Agreement or any
other Loan Document or for any representations, warranties, recitals or
statements made herein or therein or made in any written or oral statements or
in any financial or other statements, instruments, reports or certificates or
any other documents furnished or made by such Agent to Lenders or by or on
behalf of any Loan Party to such Agent or any Lender in connection with the Loan
Documents and the transactions contemplated thereby or for the financial
condition or business affairs of Borrower or any other Person liable for the
payment of any Obligations, nor shall such Agent be required to ascertain or
inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained in any of the Loan Documents or as
to the use of the proceeds of the Loans or the use of the Letters of Credit or
as to the existence or possible existence of any Event of Default or Potential
Event of Default. Anything contained in this Agreement to the contrary
notwithstanding, Administrative Agent shall not have any liability arising from
confirmations of the amount of outstanding Loans, the Revolving Letter of Credit
Usage or the LC Facility Letter of Credit Usage or the component amounts
thereof.

                  C. EXCULPATORY PROVISIONS. No Agent or any of its officers,
directors, employees or agents shall be liable to Lenders for any action taken
or omitted by such Agent under or in connection with any of the Loan Documents
except to the extent caused by such Agent's gross negligence or willful
misconduct. An Agent shall be entitled to refrain from any act or the taking of
any action (including the failure to take an action) in connection with this
Agreement or any of the other Loan Documents or from the exercise of any power,
discretion or authority vested in it hereunder or thereunder unless and until
such Agent shall have received instructions in respect thereof from Requisite
Lenders (or such other Lenders as may be required to give such instructions
under subsection 10.6) and, upon receipt of such instructions from Requisite
Lenders (or such other Lenders, as the case may be), such Agent shall be
entitled to act or (where so instructed) refrain from acting, or to exercise
such power, discretion or authority, in accordance with such instructions.
Without prejudice to the generality of the foregoing, (i) each Agent shall be
entitled to rely, and shall be fully protected in relying, upon any
communication,

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instrument or document believed by it to be genuine and correct and to have been
signed or sent by the proper person or persons, and shall be entitled to rely
and shall be protected in relying on opinions and judgments of attorneys (who
may be attorneys for Parent and its Subsidiaries), accountants, experts and
other professional advisors selected by it; and (ii) no Lender shall have any
right of action whatsoever against an Agent as a result of such Agent acting or
(where so instructed) refraining from acting under this Agreement or any of the
other Loan Documents in accordance with the instructions of Requisite Lenders
(or such other Lenders as may be required to give such instructions under
subsection 10.6).

                  D. AGENTS ENTITLED TO ACT AS LENDER. The agency hereby created
shall in no way impair or affect any of the rights and powers of, or impose any
duties or obligations upon, an Agent in its individual capacity as a Lender
hereunder. With respect to its participation in the Loans and the Letters of
Credit, an Agent shall have the same rights and powers hereunder as any other
Lender and may exercise the same as though it were not performing the duties and
functions delegated to it hereunder, and the term "Lender" or "Lenders" or any
similar term shall, unless the context clearly otherwise indicates, include each
Agent in its individual capacity. An Agent and its Affiliates may accept
deposits from, lend money to, acquire equity interests in and generally engage
in any kind of commercial banking, investment banking, trust, financial advisory
or other business with Parent or any of its Affiliates as if it were not
performing the duties specified herein, and may accept fees and other
consideration from any Loan Party for services in connection with this Agreement
and otherwise without having to account for the same to Lenders.

         9.3      INDEPENDENT INVESTIGATION BY LENDERS; NO RESPONSIBILITY FOR
                  APPRAISAL OF CREDITWORTHINESS.

                  Each Lender agrees that it has made its own independent
investigation of the financial condition and affairs of the Loan Parties in
connection with the making of the Loans and the issuance of Letters of Credit
hereunder and that it has made and shall continue to make its own appraisal of
the creditworthiness of the Loan Parties. No Agent shall have any duty or
responsibility, either initially or on a continuing basis, to make any such
investigation or any such appraisal on behalf of Lenders or to provide any
Lender with any credit or other information with respect thereto, whether coming
into its possession before the making of the Loans or at any time or times
thereafter, and no Agent shall have any responsibility with respect to the
accuracy of or the completeness of any information provided to Lenders.

         9.4      RIGHT TO INDEMNITY.

                  Each Lender, in proportion to its Pro Rata Share, severally
agrees to indemnify each Agent and its officers, directors, employees, agents,
attorneys, professional advisors and Affiliates to the extent that any such
Person shall not have been reimbursed by any Loan Party, for and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses (including counsel fees and disbursements and fees and
disbursements of any financial advisor engaged by Agents) or disbursements of
any kind or nature whatsoever which may be imposed on, incurred by or asserted
against an Agent or and other such Persons in exercising the powers, rights and
remedies of an Agent or performing duties of an Agent

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hereunder or under the other Loan Documents or otherwise in its capacity as
Agent in any way relating to or arising out of this Agreement or the other Loan
Documents; provided that no Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of an Agent resulting from such Agent's gross
negligence or willful misconduct. If any indemnity furnished to an Agent or any
other such Person for any purpose shall, in the opinion of such Agent, be
insufficient or become impaired, such Agent may call for additional indemnity
and cease, or not commence, to do the acts indemnified against until such
additional indemnity is furnished.

         9.5      SUCCESSOR ADMINISTRATIVE AGENT AND SWING LINE LENDER.

                  A. SUCCESSOR ADMINISTRATIVE AGENT. Any Agent may resign at any
time by giving 30 days' prior written notice thereof to Lenders and Borrower.
Upon any such notice of resignation, Requisite Lenders may, with prior written
consent of Borrower (which consent shall not be unreasonably withheld) appoint a
successor Administrative Agent; provided that no consent of Borrower shall be
required during the occurrence of an Event of Default hereunder. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, that successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent and the retiring Administrative Agent shall
be discharged from its duties and obligations under this Agreement. After any
retiring Agent's resignation hereunder as an Agent, the provisions of this
Section 9 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was an Agent under this Agreement.

                  B. SUCCESSOR SWING LINE LENDER. Any resignation of
Administrative Agent pursuant to subsection 9.5A shall also constitute the
resignation of CSFB or its successor as Swing Line Lender, and any successor
Administrative Agent appointed pursuant to subsection 9.5A shall, upon its
acceptance of such appointment, become the successor Swing Line Lender for all
purposes hereunder. In such event (i) Borrower shall prepay any outstanding
Swing Line Loans made by the retiring or removed Administrative Agent in its
capacity as Swing Line Lender, (ii) upon such prepayment, the retiring
Administrative Agent and Swing Line Lender shall surrender any Swing Line Note
held by it to Borrower for cancellation, and (iii) if so requested by the
successor Administrative Agent and Swing Line Lender in accordance with
subsection 2.1E, Borrower shall issue a new Swing Line Note to the successor
Administrative Agent and Swing Line Lender substantially in the form of Exhibit
VII annexed hereto, in the principal amount of the Swing Line Loan Commitment
then in effect and with other appropriate insertions.

         9.6      COLLATERAL DOCUMENTS AND GUARANTIES.

                  Each Lender hereby further authorizes Administrative Agent, on
behalf of and for the benefit of Lenders, to enter into each Collateral Document
as secured party and to be the agent for and representative of Lenders under
each Guaranty and each Lender agrees to be bound by the terms of each Collateral
Document and each Guaranty; provided that Administrative Agent shall not (i)
enter into or consent to any material amendment, modification, termination or
waiver of any provision contained in any Collateral Document or Guaranty or (ii)
release any

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Collateral (except as otherwise expressly permitted or required pursuant to the
terms of this Agreement or the applicable Collateral Document), in each case
without the prior consent of Requisite Lenders (or, if required pursuant to
subsection 10.6, all Lenders); provided, further, however, that, without further
written consent or authorization from Lenders, Administrative Agent may execute
any documents or instruments necessary to (a) release any Lien encumbering any
item of Collateral that is the subject of a sale or other disposition of assets
permitted by this Agreement or to which Requisite Lenders have otherwise
consented, (b) release any Subsidiary Guarantor from the Subsidiary Guaranty if
all of the Capital Stock of such Subsidiary Guarantor is sold to any Person
(other than an Affiliate of Borrower) pursuant to a sale or other disposition
permitted hereunder or to which Requisite Lenders have otherwise consented or
(c) subordinate the Liens of Administrative Agent, on behalf of Lenders, to any
Liens permitted by subsection 7.2; provided that, in the case of a sale of such
item of Collateral or stock referred to in subdivision (a) or (b), the
requirements of subsection 10.14 are satisfied. Anything contained in any of the
Loan Documents to the contrary notwithstanding, Borrower, Administrative Agent
and each Lender hereby agree that (1) no Lender shall have any right
individually to realize upon any of the Collateral under any Collateral Document
or to enforce any Guaranty, it being understood and agreed that all powers,
rights and remedies under the Collateral Documents and the Guaranties may be
exercised solely by Administrative Agent for the benefit of Lenders in
accordance with the terms thereof, and (2) in the event of a foreclosure by
Administrative Agent on any of the Collateral pursuant to a public or private
sale, Administrative Agent or any Lender may be the purchaser of any or all of
such Collateral at any such sale and Administrative Agent, as agent for and
representative of Lenders (but not any Lender or Lenders in its or their
respective individual capacities unless Requisite Lenders shall otherwise agree
in writing) shall be entitled, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Collateral sold
at any such public sale, to use and apply any of the Obligations as a credit on
account of the purchase price for any collateral payable by Administrative Agent
at such sale.

         9.7      DUTIES OF OTHER AGENTS.

                  Co-Documentation Agents, Syndication Agent and each of the
Co-Arrangers shall have no right (except, in the case of Co-Arrangers, such
rights as are expressly set forth herein), power, obligation, liability,
responsibility or duty under this Agreement other than those applicable to all
Lenders as such. Without limiting the foregoing, none of such Agents shall have
or be deemed to have a fiduciary relationship with any Lender.

         9.8      ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM.

                  In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to Parent, Borrower or any of the other
Subsidiaries of Parent, Administrative Agent (irrespective of whether the
principal of any Loan shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether Administrative Agent shall
have made any demand on Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise

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                  (i) to file and prove a claim for the whole amount of
         principal and interest owing and unpaid in respect of the Loans and any
         other Obligations that are owing and unpaid and to file such other
         papers or documents as may be necessary or advisable in order to have
         the claims of Lenders and Agents (including any claim for the
         reasonable compensation, expenses, disbursements and advances of
         Lenders and Agents and their agents and counsel and all other amounts
         due Lenders and Agents under subsections 2.3 and 10.2) allowed in such
         judicial proceeding, and

                  (ii) to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to Administrative Agent and, in the event that
Administrative Agent shall consent to the making of such payments directly to
Lenders, to pay to Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of Agents and their agents
and counsel, and any other amounts due Agents under subsections 2.3 and 10.2.

                  Nothing herein contained shall be deemed to authorize
Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lenders or to authorize
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

SECTION 10. MISCELLANEOUS

         10.1     SUCCESSORS AND ASSIGNS; ASSIGNMENTS AND PARTICIPATIONS IN
                  LOANS AND LETTERS OF CREDIT.

                  A. GENERAL. This Agreement shall be binding upon the parties
hereto and their respective successors and assigns and shall inure to the
benefit of the parties hereto and the successors and assigns of Lenders (it
being understood that Lenders' rights of assignment are subject to the further
provisions of this subsection 10.1). Neither Borrower's rights or obligations
hereunder nor any interest therein may be assigned or delegated by Borrower
without the prior written consent of all Lenders (and any attempted assignment
or transfer by Borrower without such consent shall be null and void). No sale,
assignment or transfer or participation of any Revolving Letter of Credit or LC
Facility Letter of Credit, as the case may be, or any participation therein may
be made separately from a sale, assignment, transfer or participation of a
corresponding interest in the Revolving Loan Commitment and the Revolving Loans
of the Revolving Lenders or in the LC Facility Commitment and the LC Facility
Loans of the LC Facility Lenders, as the case may be, effecting such sale,
assignment, transfer or participation. Anything contained herein to the contrary
notwithstanding, except as provided in subsection 2.1A(iii) and subsection 10.5,
the Swing Line Loan Commitment and the Swing Line Loans of Swing Line Lender may
not be sold, assigned or transferred as described below to any Person other than
a successor Administrative Agent and Swing Line Lender to the extent
contemplated by subsection 9.5. Nothing in this Agreement, expressed or implied,
shall be

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construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, the Affiliates of each of Administrative Agent and Lenders)
any legal or equitable right, remedy or claim under or by reason of this
Agreement.

                  B. ASSIGNMENTS.

                  (i) Amounts and Terms of Assignments. Any Lender may assign to
         one or more Eligible Assignees all or any portion of its rights and
         obligations under this Agreement; provided that (a), except (1) in the
         case of an assignment of the entire remaining amount of the assigning
         Lender's rights and obligations under this Agreement or (2) in the case
         of an assignment to a Lender or an Affiliate of a Lender or an Approved
         Fund of a Lender, the aggregate amount of the Revolving Loan Exposure,
         Term B Loan Exposure, Supplemental Term Loan Exposure or LC Facility
         Exposure, as the case may be, of the assigning Lender and the assignee
         subject to each such assignment shall not be less than $5,000,000, in
         the case of any assignment of a Revolving Loan, $1,000,000, in the case
         of any assignment of a Term Loan, or $2,500,000, in the case of any
         assignment of a LC Facility Loan, unless each of Administrative Agent
         and, so long as no Event of Default has occurred and is continuing,
         Borrower otherwise consents (each such consent not to be unreasonably
         withheld or delayed), (b) each partial assignment shall be made as an
         assignment of a proportionate part of all the assigning Lender's rights
         and obligations under this Agreement with respect to the Loan or the
         Commitment assigned, (c) the parties to each assignment shall execute
         and deliver to Administrative Agent an Assignment Agreement, together
         with a processing and recordation fee of $3,500 (at Administrative
         Agent's discretion) and the Eligible Assignee, if it shall not be a
         Lender, shall deliver to Administrative Agent information reasonably
         requested by Administrative Agent, including such forms, certificates
         or other evidence, if any, with respect to United States federal income
         tax withholding matters and with respect to information requested under
         the Patriot Act as the assignee under such Assignment Agreement may be
         required to deliver to Administrative Agent pursuant to subsection
         2.7B(iii), (d) in the case of an assignment of all or a portion of a
         Revolving Loan Commitment of any Lender, Administrative Agent, Swing
         Line Lender and each Revolving Issuing Lender shall have given their
         prior written consent to such assignment, (e) in the case of an
         assignment of all or a portion of a LC Facility commitment of any
         Lender, Administrative Agent and each LC Facility Issuing Lender shall
         have given their prior written consent to such assignment, and (f),
         except in the case of an assignment to another Lender (and except as
         provided in subclauses (d) and (e) of this sentence), an Affiliate of a
         Lender or an Approved Fund of a Lender, Administrative Agent and, if no
         Event of Default has occurred and is continuing, Borrower, shall have
         consented thereto (which consent shall not be unreasonably withheld).
         Upon such execution, delivery and consent, from and after the effective
         date specified in such Assignment Agreement, (y) the assignee
         thereunder shall be a party hereto and, to the extent that rights and
         obligations hereunder have been assigned to it pursuant to such
         Assignment Agreement, shall have the rights and obligations of a Lender
         hereunder and (z) the assigning Lender thereunder shall, to the extent
         that rights and obligations hereunder have been assigned by

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         it pursuant to such Assignment Agreement, relinquish its rights (other
         than any rights which survive the termination of this Agreement under
         subsection 10.9B) and be released from its obligations under this
         Agreement (and, in the case of an Assignment Agreement covering all or
         the remaining portion of an assigning Lender's rights and obligations
         under this Agreement, such Lender shall cease to be a party hereto;
         provided that, anything contained in any of the Loan Documents to the
         contrary notwithstanding, if such Lender is the Issuing Lender with
         respect to any outstanding Letters of Credit such Lender shall continue
         to have all rights and obligations of an Issuing Lender with respect to
         such Letters of Credit until the cancellation or expiration of such
         Letters of Credit and the reimbursement of any amounts drawn
         thereunder). The assigning Lender shall, upon the effectiveness of such
         assignment or as promptly thereafter as practicable, surrender its
         Notes, if any, to Administrative Agent for cancellation, and thereupon
         new Notes shall, if so requested by the assignee and/or the assigning
         Lender in accordance with subsection 2.1E, be issued to the assignee
         and/or to the assigning Lender, substantially in the form of Exhibit
         IV, Exhibit V or Exhibit VI annexed hereto, as the case may be, with
         appropriate insertions, to reflect the new Commitments and/or
         outstanding Term B Loans and/or outstanding Revolving Loans and/or
         Supplemental Term Loans and/or LC Facility Loans, as the case may be,
         of the assignee and/or the assigning Lender. Other than as provided in
         subsection 2.1A(iii) and subsection 10.5, any assignment or transfer by
         a Lender of rights or obligations under this Agreement that does not
         comply with this subsection 10.1B shall be treated for purposes of this
         Agreement as a sale by such Lender of a participation in such rights
         and obligations in accordance with subsection 10.1C.

                  (ii) Acceptance by Administrative Agent; Recordation in
         Register. Upon its receipt of an Assignment Agreement executed by an
         assigning Lender and an assignee representing that it is an Eligible
         Assignee, together with the processing and recordation fee referred to
         in subsection 10.1B(i) and any forms, certificates or other evidence
         with respect to United States federal income tax withholding matters
         that such assignee may be required to deliver to Administrative Agent
         pursuant to subsection 2.7B(iii), Administrative Agent shall, if
         Administrative Agent has consented to the assignment evidenced thereby
         (to the extent such consent is required pursuant to subsection
         10.1B(i)), (a) accept such Assignment Agreement by executing a
         counterpart thereof as provided therein (which acceptance shall
         evidence any required consent of Administrative Agent to such
         assignment) and (b) record the information contained therein in the
         Register. Administrative Agent shall maintain a copy of each Assignment
         Agreement delivered to and accepted by it as provided in this
         subsection 10.1B(ii).

                  (iii) Special Purpose Funding Vehicles. Notwithstanding
         anything to the contrary contained in this subsection 10.1B, any Lender
         (a "GRANTING LENDER") may grant to a special purpose funding vehicle (a
         "SPC"), identified as such in writing from time to time by the Granting
         Lender to Administrative Agent, the option to provide to Borrower all
         or any part of any Loan that such Granting Lender would otherwise be
         obligated to make to Borrower; provided that (i) nothing herein shall
         constitute a commitment by any SPC to make any Loan and (ii) if an SPC
         elects not to exercise such option or otherwise fails to provide all or
         any part of such Loan, the Granting Lender

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         shall be obligated to make such Loan. The making of a Term B Loan,
         Supplemental Term Loan, LC Facility Loan or Revolving Loan by an SPC
         hereunder shall utilize the Term B Loan Commitment, Supplemental Term
         Loan Commitment, LC Facility Commitment or Revolving Loan Commitment,
         as applicable, of the Granting Lender to the same extent, and as if,
         such Loan were made by such Granting Lender. Each party hereto hereby
         agrees that no SPC shall be liable for any indemnity or similar payment
         obligation under this Agreement (all liability for which shall remain
         with the Granting Lender). In furtherance of the foregoing, each party
         hereto hereby agrees (which agreement shall survive the termination of
         this Agreement) that, prior to the date that is one year and one day
         after the payment in full of all outstanding commercial paper or other
         senior indebtedness of any SPC, it will not institute against, or join
         any other person in instituting against, such SPC any bankruptcy,
         reorganization, arrangement, insolvency or liquidation proceedings
         under the laws of the United States or any State thereof. In addition,
         notwithstanding anything to the contrary contained in this subsection
         10.1, any SPC may (i) with notice to, but without the prior written
         consent of, Administrative Agent and without paying any processing fee
         therefor, assign all or a portion of its interests in any Loan to the
         Granting Lender or to any financial institutions (consented to by
         Administrative Agent) providing liquidity and/or credit support to or
         for the account of such SPC to support the funding or maintenance of
         any Loans and (ii) disclose on a confidential basis any non-public
         information relating to its Loans to any rating agency, commercial
         paper dealer or provider of any surety, guarantee or credit or
         liquidity enhancement to such SPC. This section may not be amended
         without the written consent of each SPC.

                  C. PARTICIPATIONS. Any Lender may, without the consent of, or
notice to, Borrower or Administrative Agent, sell participations to one or more
Persons (other than a natural Person or Borrower or any of its Affiliates) in
all or a portion of such Lender's rights and/or obligations under this
Agreement; provided that (i) such Lender's obligations under this Agreement
shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) Borrower,
Administrative Agent and Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, modification or waiver directly affecting (i) the extension of
the regularly scheduled maturity of any portion of the principal amount of or
interest on any Loan allocated to such participation or (ii) a reduction of the
principal amount of or the rate of interest payable on any Loan allocated to
such participation. Subject to the further provisions of this subsection 10.1C,
Borrower agrees that each Participant shall be entitled to the benefits of
subsections 2.6D and 2.7 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to subsection 10.1B. To the extent
permitted by law, each Participant also shall be entitled to the benefits of
subsection 10.4 as though it were a Lender, provided such Participant agrees to
be subject to subsection 10.5 as though it were a Lender. A Participant shall
not be entitled to receive any

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greater payment under subsections 2.6D and 2.7 than the applicable Lender would
have been entitled to receive with respect to the participation sold to such
Participant unless the sale of the participation to such Participant is made
with Borrower's prior written consent. A Participant that would be a Non-US
Lender if it were a Lender shall not be entitled to the benefits of subsection
2.7 unless Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of Borrower, to comply with
subsection 2.7B(iii) as though it were a Lender.

                  D. PLEDGES AND ASSIGNMENTS. Any Lender may at any time pledge
or assign a security interest in all or any portion of its Loans, and the other
Obligations owed to such Lender, to secure obligations of such Lender, including
without limitation any pledge or assignment to secure obligations to any Federal
Reserve Bank; provided that (i) no Lender shall be relieved of any of its
obligations hereunder as a result of any such assignment or pledge and (ii) in
no event shall any assignee or pledgee be considered to be a "Lender" or be
entitled to require the assigning Lender to take or omit to take any action
hereunder.

                  E. INFORMATION. Each Lender may furnish any information
concerning Parent and its Subsidiaries in the possession of that Lender from
time to time to assignees and participants (including prospective assignees and
participants), subject to subsection 10.19.

                  F. AGREEMENTS OF LENDERS. Each Lender listed on the signature
pages hereof hereby agrees (i) that it is an Eligible Assignee described in
clause (ii) of the definition thereof; (ii) that it has experience and expertise
in the making of loans such as the Loans; and (iii) that it will make its Loans
for its own account in the ordinary course of its business and without a view to
distribution of such Loans within the meaning of the Securities Act or the
Exchange Act or other federal securities laws (it being understood that, subject
to the provisions of this subsection 10.1, the disposition of such Loans or any
interests therein shall at all times remain within its exclusive control). Each
Lender that becomes a party hereto pursuant to an Assignment Agreement shall be
deemed to agree that the agreements of such Lender contained in Section 2(c) of
such Assignment Agreement are incorporated herein by this reference.

         10.2     EXPENSES.

                  Whether or not the transactions contemplated hereby shall be
consummated, Borrower agrees to pay promptly (i) all reasonable costs and
expenses of negotiation, preparation and execution of the Loan Documents and any
consents, amendments, waivers or other modifications thereto; (ii) all costs and
expenses of furnishing all opinions by counsel for Borrower (including any
opinions requested by Agents or Lenders as to any legal matters arising
hereunder) and of each Loan Party's performance of and compliance with all
agreements and conditions on its part to be performed or complied with under
this Agreement and the other Loan Documents including with respect to confirming
compliance with environmental, insurance and solvency requirements; (iii) all
reasonable fees, expenses and disbursements of counsel to Administrative Agent
(including allocated costs of internal counsel) in connection with the
negotiation, preparation, execution and administration of the Loan Documents and
any consents, amendments, waivers or other modifications thereto and any other
documents or matters requested by Borrower; (iv) all costs and expenses of
creating and perfecting Liens in favor of

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Administrative Agent on behalf of Lenders pursuant to any Collateral Document,
including filing and recording fees, expenses and taxes, stamp or documentary
taxes, search fees, title insurance premiums, and reasonable fees, expenses and
disbursements of counsel to Administrative Agent and of counsel providing any
opinions that Administrative Agent or Requisite Lenders may request in respect
of the Collateral Documents or the Liens created pursuant thereto; (v) all costs
and expenses (including the reasonable fees, expenses and disbursements of any
auditors, accountants or appraisers and any environmental or other consultants,
advisors and agents employed or retained by Administrative Agent or its counsel)
of obtaining and reviewing any appraisals provided for under subsection 6.9B and
any environmental audits or reports provided for under subsection 6.9A; (vi) all
costs and expenses incurred by Administrative Agent in connection with the
custody or preservation of any of the Collateral; (vii) all other costs and
expenses incurred by Administrative Agent in connection with the syndication of
the Commitments; (viii) all costs and expenses, including reasonable attorneys'
fees (including reasonable allocated costs of internal counsel) and fees, costs
and expenses of accountants, advisors and consultants, incurred by
Administrative Agent and its counsel relating to efforts to (a) evaluate or
assess any Loan Party, its business or financial condition and (b) protect,
evaluate, assess or dispose of any of the Collateral; and (ix) all costs and
expenses, including reasonable attorneys' fees (including reasonable allocated
costs of internal counsel), reasonable fees, costs and expenses of accountants,
advisors and consultants and costs of settlement, incurred by Administrative
Agent and Lenders in enforcing any Obligations of or in collecting any payments
due from any Loan Party hereunder or under the other Loan Documents (including
in connection with the sale of, collection from, or other realization upon any
of the Collateral or the enforcement of the Loan Documents) or in connection
with any refinancing or restructuring of the credit arrangements provided under
this Agreement in the nature of a "work-out" or pursuant to any insolvency or
bankruptcy proceedings.

         10.3     INDEMNITY.

                  In addition to the payment of expenses pursuant to subsection
10.2, whether or not the transactions contemplated hereby shall be consummated,
Borrower agrees to defend (subject to Indemnitees' selection of counsel),
indemnify, pay and hold harmless Agents and Lenders (including Issuing Lenders),
and the officers, directors, employees, agents and Affiliates of Agents and
Lenders (collectively called the "INDEMNITEES"), from and against any and all
Indemnified Liabilities (as hereinafter defined); provided that Borrower shall
not have any obligation to any Indemnitee hereunder with respect to any
Indemnified Liabilities to the extent such Indemnified Liabilities arise from
the gross negligence or willful misconduct of that Indemnitee as determined by a
final judgment of a court of competent jurisdiction.

                  As used herein, "INDEMNIFIED LIABILITIES" means, collectively,
any and all liabilities, obligations, losses, damages (including natural
resource damages), penalties, actions, judgments, suits, claims (including
Environmental Claims), costs (including the reasonable costs of any
investigation, study, sampling, testing, abatement, cleanup, removal,
remediation or other response action necessary to remove, remediate, clean up or
abate any Hazardous Materials Activity), expenses and disbursements of any kind
or nature whatsoever (including the reasonable fees and disbursements of counsel
for Indemnitees in connection with any investigative, administrative or judicial
proceeding commenced or threatened by any Person,

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whether or not any such Indemnitee shall be designated as a party or a potential
party thereto, and any fees or expenses incurred by Indemnitees in enforcing
this indemnity), whether direct, indirect or consequential and whether based on
any federal, state or foreign laws, statutes, rules or regulations (including
securities and commercial laws, statutes, rules or regulations and Environmental
Laws), on common law or equitable cause or on contract or otherwise, that may be
imposed on, incurred by, or asserted against any such Indemnitee, in any manner
relating to or arising out of (i) this Agreement or the other Loan Documents or
the transactions contemplated hereby or thereby (including Lenders' agreement to
make the Loans hereunder or the use or intended use of the proceeds thereof or
the issuance of Letters of Credit hereunder or the use or intended use of any
thereof, the failure of an Issuing Lender to honor a drawing under a Letter of
Credit as a result of any act or omission, whether rightful or wrongful, of any
present or future de jure or de facto Government Authority, or any enforcement
of any of the Loan Documents (including any sale of, collection from, or other
realization upon any of the Collateral or the enforcement of the Guaranties),
(ii) the statements contained in the commitment letter delivered by any Lender
to Borrower with respect thereto, or (iii) any Environmental Claim or any
Hazardous Materials Activity relating to or arising from, directly or
indirectly, any past or present activity, operation, land ownership, or practice
of any Loan Party.

                  To the extent that the undertakings to defend, indemnify, pay
and hold harmless set forth in this subsection 10.3 may be unenforceable in
whole or in part because they are violative of any law or public policy,
Borrower shall contribute the maximum portion that it is permitted to pay and
satisfy under applicable law to the payment and satisfaction of all Indemnified
Liabilities incurred by Indemnitees or any of them.

         10.4     SET-OFF; SECURITY INTEREST IN DEPOSIT ACCOUNTS.

                  In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, upon the
occurrence of any Event of Default each Lender is hereby authorized by Borrower
at any time or from time to time, without notice to Borrower or to any other
Person, any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special, time or
demand, provisional or final, including Indebtedness evidenced by certificates
of deposit, whether matured or unmatured, but not including trust accounts) and
any other Indebtedness at any time held or owing by that Lender or any Affiliate
of that Lender to or for the credit or the account of Borrower and each other
Loan Party against and on account of the Obligations of Borrower or any other
Loan Party to that Lender (or any Affiliate of that Lender) or to any other
Lender (or any Affiliate of any other Lender) under this Agreement, the Letters
of Credit and participations therein and the other Loan Documents, including all
claims of any nature or description arising out of or connected with this
Agreement, the Letters of Credit and participations therein or any other Loan
Document, irrespective of whether or not (i) that Lender shall have made any
demand hereunder or (ii) the principal of or the interest on the Loans or any
amounts in respect of the Letters of Credit or any other amounts due hereunder
shall have become due and payable pursuant to Section 8 and although said
obligations and liabilities, or any of them, may be contingent or unmatured.
Borrower hereby further grants to Administrative Agent and each Lender a
security interest in all deposits and accounts maintained with Administrative
Agent or such Lender as security for the Obligations.

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         10.5     RATABLE SHARING.

                  Lenders hereby agree among themselves that if any of them
shall, whether by voluntary payment (other than a voluntary prepayment of Loans
made and applied in accordance with the terms of this Agreement), by realization
upon security, through the exercise of any right of set-off or banker's lien, by
counterclaim or cross action or by the enforcement of any right under the Loan
Documents or otherwise, or as adequate protection of a deposit treated as cash
collateral under the Bankruptcy Code, receive payment or reduction of a
proportion of the aggregate amount of principal, interest, amounts payable in
respect of Letters of Credit, fees and other amounts then due and owing to that
Lender hereunder or under the other Loan Documents (collectively, the "AGGREGATE
AMOUNTS DUE" to such Lender) that is greater than the proportion received by any
other Lender in respect of the Aggregate Amounts Due to such other Lender, then
the Lender receiving such proportionately greater payment shall (i) notify
Administrative Agent and each other Lender of the receipt of such payment and
(ii) apply a portion of such payment to purchase assignments (which it shall be
deemed to have purchased from each seller of an assignment simultaneously upon
the receipt by such seller of its portion of such payment) of the Aggregate
Amounts Due to the other Lenders so that all such recoveries of Aggregate
Amounts Due shall be shared by all Lenders in proportion to the Aggregate
Amounts Due to them; provided that if all or part of such proportionately
greater payment received by such purchasing Lender is thereafter recovered from
such Lender upon the bankruptcy or reorganization of Borrower or otherwise,
those purchases shall be rescinded and the purchase prices paid for such
assignments shall be returned to such purchasing Lender ratably to the extent of
such recovery, but without interest. Borrower expressly consents to the
foregoing arrangement and agrees that any purchaser of an assignment so
purchased may exercise any and all rights of a Lender as to such assignment as
fully as if that Lender had complied with the provisions of subsection 10.1B
with respect to such assignment. In order to further evidence such assignment
(and without prejudice to the effectiveness of the assignment provisions set
forth above), each purchasing Lender and each selling Lender agree to enter into
an Assignment Agreement at the request of a selling Lender or a purchasing
Lender, as the case may be, in form and substance reasonably satisfactory to
each such Lender.

         10.6     AMENDMENTS AND WAIVERS.

                  No amendment, modification, termination or waiver of any
provision of this Agreement or of the Notes, and no consent to any departure by
Borrower therefrom, shall in any event be effective without the written
concurrence of Requisite Lenders; provided that no such amendment, modification,
termination, waiver or consent shall, without the consent of (a) each Lender
with Obligations directly affected (whose consent shall be sufficient for any
such amendment, modification, termination or waiver without the consent of
Requisite Lenders) (1) reduce the principal amount of any Loan, (2) increase the
maximum aggregate amount of (x) Revolving Letters of Credit or (y) LC Facility
Letters of Credit, (3) postpone the scheduled final maturity date or any
scheduled principal payment of any Loan, (4) postpone the date on which any
interest or any fees are payable, (5) decrease the interest rate borne by any
Loan (other than any waiver of any increase in the interest rate applicable to
any of the Loans pursuant to subsection 2.2E) or the amount of any fees payable
hereunder), (6) reduce the amount or postpone the due date of any amount payable
in respect of any Letter of Credit, (7) extend the

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expiration date of any Letter of Credit beyond the Revolving Loan Commitment
Termination Date, (8) change in any manner the obligations of (x) Revolving
Lenders relating to the purchase of participations in Revolving Letters of
Credit or (y) LC Facility Lenders relating to the purchase of participations in
LC Facility Letters of Credit, or (9) increase the amount of any of the
Commitments; (b) each Lender, (1) change in any manner the definition of "Class"
or the definition of "Pro Rata Share" or the definition of "Requisite Class
Lenders" or the definition of "Requisite Lenders" (except for any changes
resulting solely from an increase in Commitments approved by Requisite Lenders
or the addition of a class of loans under this Agreement approved by Requisite
Lenders), (2) change in any manner any provision of this Agreement that, by its
terms, expressly requires the approval or concurrence of all Lenders, (3)
increase the maximum duration of Interest Periods permitted hereunder, (4)
release any Lien granted in favor of Administrative Agent with respect to all or
substantially all of the Collateral or release Parent from its obligations under
the Parent Guaranty or release any Subsidiary Guarantor from its obligations
under the Subsidiary Guaranty, in each case other than in accordance with the
terms of the Loan Documents or (5) change in any manner or waive the provisions
contained in subsection 8.1 or this subsection 10.6. In addition, (i) any
amendment, modification, termination or waiver of any of the provisions
contained in Section 4 shall be effective only if evidenced by a writing signed
by or on behalf of Administrative Agent and Requisite Lenders, (ii) no
amendment, modification, termination or waiver of any provision of any Note
shall be effective without the written concurrence of the Lender which is the
holder of that Note, (iii) no amendment, modification, termination or waiver of
any provision of subsection 2.1A(iii) or of any other provision of this
Agreement relating to the Swing Line Loan Commitment or the Swing Line Loans
shall be effective without the written concurrence of Swing Line Lender, (iv) no
amendment, modification, termination or waiver of any provision of Section 3
shall be effective without the written concurrence of Administrative Agent and,
with respect to the purchase of participations in Letters of Credit, without the
written concurrence of each Issuing Lender that has issued an outstanding Letter
of Credit or has not been reimbursed for a payment under a Letter of Credit, and
(v) no amendment, modification, termination or waiver of any provision of
Section 9 or of any other provision of this Agreement which, by its terms,
expressly requires the approval or concurrence of Administrative Agent (and, as
applicable, any other Agent) shall be effective without the written concurrence
of Administrative Agent (and, as applicable such other Agent), and (vi) no
amendment, modification, termination or waiver of any provision of subsection
2.4 that has the effect of changing any voluntary or mandatory prepayments, or
Commitment reductions applicable to a Class in a manner that disproportionately
disadvantages such Class relative to any other Class shall be effective without
the written concurrence of Requisite Class Lenders of such affected Class (it
being understood and agreed that any amendment, modification, termination or
waiver of any such provision which only postpones or reduces any voluntary or
mandatory prepayment, or Commitment reduction from those set forth in subsection
2.4 with respect to one Class but not any other Class shall be deemed to
disproportionately disadvantage such one Class but not to disproportionately
disadvantage any such other Class for purposes of this clause (vi)).
Administrative Agent may, but shall have no obligation to, with the concurrence
of any Lender, execute amendments, modifications, waivers or consents on behalf
of that Lender. Any waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it was given. No notice to or
demand on Borrower in any case shall entitle Borrower to any other or further
notice

                                      137
<PAGE>

or demand in similar or other circumstances. Any amendment, modification,
termination, waiver or consent effected in accordance with this subsection 10.6
shall be binding upon each Lender at the time outstanding, each future Lender
and, if signed by Borrower, on Borrower.

         10.7     INDEPENDENCE OF COVENANTS.

                  All covenants hereunder shall be given independent effect so
that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or would
otherwise be within the limitations of, another covenant shall not avoid the
occurrence of an Event of Default or Potential Event of Default if such action
is taken or condition exists.

         10.8     NOTICES; EFFECTIVENESS OF SIGNATURES.

                  Unless otherwise specifically provided herein, any notice or
other communication herein required or permitted to be given shall be in writing
and may be personally served, or sent by telefacsimile or United States mail or
courier service and shall be deemed to have been given when delivered in person
or by courier service, upon receipt of telefacsimile in complete and legible
form, or three (3) Business Days after depositing it in the United States mail
with postage prepaid and properly addressed; provided that notices to
Administrative Agent, Swing Line Lender and any Issuing Lender shall not be
effective until received. For the purposes hereof, the address of each party
hereto shall be as set forth under such party's name on the signature pages
hereof or (i) as to Borrower and Administrative Agent, such other address as
shall be designated by such Person in a written notice delivered to the other
parties hereto and (ii) as to each other party, such other address as shall be
designated by such party in a written notice delivered to Administrative Agent.
Electronic mail and Internet and intranet websites may be used to distribute
routine communications, such as financial statements and other information;
provided, however, that no signature with respect to any notice, request,
agreement, waiver, amendment or other document or any notice that is intended to
have binding effect may be sent by electronic mail.

                  Loan Documents and notices under the Loan Documents may be
transmitted and/or signed by telefacsimile. The effectiveness of any such
documents and signatures shall, subject to applicable law, have the same force
and effect as an original copy with manual signatures and shall be binding on
all Loan Parties, Agents and Lenders. Administrative Agent may also require that
any such documents and signature be confirmed by a manually-signed copy thereof;
provided, however, that the failure to request or deliver any such
manually-signed copy shall not affect the effectiveness of any facsimile
document or signature.

         10.9     SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

                  A. All representations, warranties and agreements made herein
shall survive the execution and delivery of this Agreement and the making of the
Loans and the issuance of the Letters of Credit hereunder.

                                      138
<PAGE>

                  B. Notwithstanding anything in this Agreement or implied by
law to the contrary, the agreements of Borrower set forth in subsections 2.6D,
2.7, 10.2, 10.3, 10.4, 10.17 and 10.18 and the agreements of Lenders set forth
in subsections 9.2C, 9.4, 10.5 and 10.18 shall survive the payment of the Loans,
the cancellation or expiration of the Letters of Credit and the reimbursement of
any amounts drawn thereunder, and the termination of this Agreement.

         10.10    FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE.

                  No failure or delay on the part of an Agent or any Lender in
the exercise of any power, right or privilege hereunder or under any other Loan
Document shall impair such power, right or privilege or be construed to be a
waiver of any default or acquiescence therein, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other power, right or privilege. All rights and
remedies existing under this Agreement and the other Loan Documents are
cumulative to, and not exclusive of, any rights or remedies otherwise available.

         10.11    MARSHALLING; PAYMENTS SET ASIDE.

                  Neither any Agent nor any Lender shall be under any obligation
to marshal any assets in favor of Borrower or any other party or against or in
payment of any or all of the Obligations. To the extent that Borrower makes a
payment or payments to Administrative Agent or Lenders (or to Administrative
Agent for the benefit of Lenders), or Agents or Lenders enforce any security
interests or exercise their rights of setoff, and such payment or payments or
the proceeds of such enforcement or setoff or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, any other state or federal law, common law or any equitable
cause, then, to the extent of such recovery, the obligation or part thereof
originally intended to be satisfied, and all Liens, rights and remedies therefor
or related thereto, shall be revived and continued in full force and effect as
if such payment or payments had not been made or such enforcement or setoff had
not occurred.

         10.12    SEVERABILITY.

                  In case any provision in or obligation under this Agreement or
the Notes shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby.

         10.13    OBLIGATIONS SEVERAL; INDEPENDENT NATURE OF LENDERS' RIGHTS;
                  DAMAGE WAIVER.

                  The obligations of Lenders hereunder are several and no Lender
shall be responsible for the obligations or Commitments of any other Lender
hereunder. Nothing contained herein or in any other Loan Document, and no action
taken by Lenders pursuant hereto or thereto, shall be deemed to constitute
Lenders, or Lenders and Borrower, as a partnership, an association, a Joint
Venture or any other kind of entity. The amounts payable at any time

                                      139
<PAGE>

hereunder 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 it shall not be necessary for any other Lender to be joined as an
additional party in any proceeding for such purpose.

                  To the extent permitted by law, each Loan Party shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with or as a result
of this Agreement (including, without limitation, subsection 2.1C hereof), any
other Loan Document, any transaction contemplated by the Loan Documents, any
Loan or the use of proceeds thereof.

         10.14    RELEASE OF SECURITY INTEREST OR GUARANTY.

                  Upon the proposed sale or other disposition of any Collateral
that is permitted by this Agreement or to which Requisite Lenders have otherwise
consented, or the sale or other disposition of all of the Capital Stock of a
Subsidiary Guarantor to any Person (other than an Affiliate of Borrower)
permitted by this Agreement or to which Requisite Lenders have otherwise
consented, for which a Loan Party desires to obtain a security interest release
or a release of the Subsidiary Guaranty from Administrative Agent, such Loan
Party shall deliver an Officer's Certificate (i) stating that the Collateral or
the Capital Stock subject to such disposition is being sold or otherwise
disposed of in compliance with the terms hereof and (ii) specifying the
Collateral or Capital Stock being sold or otherwise disposed of in the proposed
transaction. Upon the receipt of such Officer's Certificate, Administrative
Agent shall, at such Loan Party's expense, so long as Administrative Agent (a)
has no reason to believe that the facts stated in such Officer's Certificate are
not true and correct and (b), if the sale or other disposition of such item of
Collateral or Capital Stock constitutes an Asset Sale, shall have received
evidence satisfactory to it that arrangements satisfactory to it have been made
for delivery of the Net Asset Sale Proceeds if and as required by subsection
2.4, execute and deliver such releases of its security interest in such
Collateral or such Subsidiary Guaranty, as may be reasonably requested by such
Loan Party.

         10.15    APPLICABLE LAW.

                  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION
5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE APPLICATION OF ANOTHER LAW.

         10.16    CONSTRUCTION OF AGREEMENT; NATURE OF RELATIONSHIP.

                  Each of the parties hereto acknowledges that (i) it has been
represented by counsel in the negotiation and documentation of the terms of this
Agreement, (ii) it has had full and fair opportunity to review and revise the
terms of this Agreement, (iii) this Agreement has

                                      140
<PAGE>

been drafted jointly by all of the parties hereto, and (iv) neither
Administrative Agent nor any Lender or other Agent has any fiduciary
relationship with or duty to Borrower arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between
Administrative Agent, the other Agents and Lenders, on one hand, and Borrower,
on the other hand, in connection herewith or therewith is solely that of debtor
and creditor. Accordingly, each of the parties hereto acknowledges and agrees
that the terms of this Agreement shall not be construed against or in favor of
another party.

         10.17    CONSENT TO JURISDICTION AND SERVICE OF PROCESS.

                  ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST BORROWER ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY OBLIGATIONS
THEREUNDER, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND
DELIVERING THIS AGREEMENT, BORROWER, FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, IRREVOCABLY

                  (I) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE
         JURISDICTION AND VENUE OF SUCH COURTS;

                  (II) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;

                  (III) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
         PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED
         MAIL, RETURN RECEIPT REQUESTED, TO BORROWER AT ITS ADDRESS PROVIDED IN
         ACCORDANCE WITH SUBSECTION 10.8;

                  (IV) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (III) ABOVE IS
         SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER BORROWER IN ANY SUCH
         PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND
         BINDING SERVICE IN EVERY RESPECT;

                  (V) AGREES THAT LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN
         ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST
         BORROWER IN THE COURTS OF ANY OTHER JURISDICTION; AND

                  (VI) AGREES THAT THE PROVISIONS OF THIS SUBSECTION 10.17
         RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE TO
         THE FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL OBLIGATIONS LAW
         SECTION 5-1402 OR OTHERWISE.

                                      141
<PAGE>

         10.18    WAIVER OF JURY TRIAL.

                  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE
ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY
DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR
THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. The scope of this
waiver is intended to be all-encompassing of any and all disputes that may be
filed in any court and that relate to the subject matter of this transaction,
including contract claims, tort claims, breach of duty claims and all other
common law and statutory claims. Each party hereto acknowledges that this waiver
is a material inducement to enter into a business relationship, that each has
already relied on this waiver in entering into this Agreement, and that each
will continue to rely on this waiver in their related future dealings. Each
party hereto further warrants and represents that it has reviewed this waiver
with its legal counsel and that it knowingly and voluntarily waives its jury
trial rights following consultation with legal counsel. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING
(OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SUBSECTION
10.18 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY
TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR
AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER. In the event of litigation,
this Agreement may be filed as a written consent to a trial by the court.

         10.19    CONFIDENTIALITY.

                  Each Lender shall hold all non-public information obtained
pursuant to the requirements of this Agreement in accordance with such Lender's
customary procedures for handling confidential information of this nature, it
being understood and agreed by Borrower that in any event a Lender may make
disclosures (a) to its and its Affiliates' directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such information and instructed to keep such
information confidential), (b) to the extent requested by any Government
Authority (provided that such Lender shall notify the Borrower of any request by
any Government Authority), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this subsection 10.19, to (i) any Eligible
Assignee of or participant in, or any prospective Eligible Assignee of or
Participant in, any of its rights or obligations under this Agreement or (ii)
any direct or indirect contractual counterparty or prospective counterparty (or
such contractual counterparty's or prospective counterparty's professional
advisor) to any credit derivative transaction relating to obligations of
Borrower, (g) with the consent of Borrower, (h) to the

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<PAGE>

extent such information (i) becomes publicly available other than as a result of
a breach of this subsection 10.19 or (ii) becomes available to Administrative
Agent or any Lender on a nonconfidential basis from a source other than Borrower
or (i) to the National Association of Insurance Commissioners or any other
similar organization or any nationally recognized rating agency that requires
access to information about a Lender's or its Affiliates' investment portfolio
in connection with ratings issued with respect to such Lender or its Affiliates
and that no written or oral communications from counsel to an Agent and no
information that is or is designated as privileged or as attorney work product
may be disclosed to any Person unless such Person is a Lender or a participant
hereunder; provided that, unless specifically prohibited by applicable law or
court order, each Lender shall notify Borrower of any request by any Government
Authority or representative thereof (other than any such request in connection
with any examination of the financial condition of such Lender by such
Government Authority) for disclosure of any such non-public information prior to
disclosure of such information; and provided, further, that in no event shall
any Lender be obligated or required to return any materials furnished by
Borrower or any of its Subsidiaries. In addition, Administrative Agent and
Lenders may disclose the existence of this Agreement and information about this
Agreement to market data collectors, similar service providers to the lending
industry, and service providers to Administrative Agent and Lenders.

         10.20    COUNTERPARTS; EFFECTIVENESS.

                  This Agreement and any amendments, waivers, consents or
supplements hereto or in connection herewith may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document. This Agreement shall become effective upon the execution of a
counterpart hereof by each of the parties hereto.

                  [Remainder of page intentionally left blank.]

                                      143
<PAGE>

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

BORROWER:

                                    BRAND SERVICES, INC.

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

                                    Notice Address:

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

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

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

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

                                       S-1
<PAGE>

ADMINISTRATIVE AGENT:               CREDIT SUISSE FIRST BOSTON

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

                                    Notice Address:

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

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

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

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

                                      S-2
<PAGE>

SYNDICATION AGENT:                  JPMORGAN CHASE BANK

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

                                    Notice Address:

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

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

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

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

                                      S-3
<PAGE>

CO-ARRANGERS:                       CREDIT SUISSE FIRST BOSTON

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

                                    Notice Address:

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

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

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

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

                                      S-4
<PAGE>

                                    J.P. MORGAN SECURITIES INC.

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

                                    Notice Address:

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

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

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

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

                                      S-5
<PAGE>

CO-DOCUMENTATION AGENTS:

                                    GENERAL ELECTRIC CAPITAL CORPORATION

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

                                    Notice Address:

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

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

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

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

                                      S-6
<PAGE>

                                    ANTERES CAPITAL CORPORATION

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

                                    Notice Address:

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

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

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

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

                                      S-7
<PAGE>

LENDERS:
                                    CREDIT SUISSE FIRST BOSTON,
                                    CAYMAN ISLANDS BRANCH

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

                                    Notice Address:

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

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

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

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

                                      S-8
<PAGE>

                                    CHASE LINCOLN FIRST COMMERCIAL CORPORATION

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

                                    Notice Address:

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

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

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

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

                                      S-9

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