Document:

<PAGE>   1
                                                                     EXHIBIT 4.1

                           UNITED STATES CAN COMPANY,

                                     Issuer

                              U.S. CAN CORPORATION,

                                Parent Guarantor

                          BANK ONE TRUST COMPANY, N.A.,

                                     Trustee

                                    INDENTURE

                           Dated as of October 4, 2000

                                   ----------

                     12 3/8% Senior Subordinated Notes Due 2010

<PAGE>   2

                              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.
(b) .............................................................................................             7.08; 7.10
(c) .............................................................................................              N.A.
311(a) ..........................................................................................              7.11
(b) .............................................................................................              7.11
(c) .............................................................................................              N.A.
312(a) ..........................................................................................              2.05
(b) .............................................................................................             12.03
(c) .............................................................................................             12.03
313(a) ..........................................................................................              7.06
(b)(1) ..........................................................................................              N.A.
(b)(2) ..........................................................................................              7.06
(c) .............................................................................................             12.02
(d) .............................................................................................              7.06
314(a) ..........................................................................................             4.02;
                                                                                                              4.11; 12.02
(b) .............................................................................................              N.A.
(c)(1) ..........................................................................................             12.04
(c)(2) ..........................................................................................             12.04
(c)(3) ..........................................................................................              N.A.
(d) .............................................................................................              N.A.
(e) .............................................................................................             12.05
(f) .............................................................................................              4.11
315(a)...........................................................................................              7.01
(b) .............................................................................................             7.05; 12.02
(c) .............................................................................................              7.01
(d) .............................................................................................              7.01
(e) .............................................................................................              6.11
316(a)(last sentence) ...........................................................................             12.06
(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) ..........................................................................................             12.01
</TABLE>

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         "N.A." means Not Applicable.

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

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

<PAGE>   4

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                             <C>
ARTICLE 1  DEFINITIONS AND INCORPORATION BY REFERENCE.............................................................1
         SECTION 1.01.  Definitions...............................................................................1
         SECTION 1.02.  Other Definitions........................................................................21
         SECTION 1.03.  Incorporation by Reference of Trust Indenture Act........................................21
         SECTION 1.04.  Rules of Construction....................................................................22

ARTICLE 2  THE SECURITIES........................................................................................22
         SECTION 2.01.  Form and Dating..........................................................................22
         SECTION 2.02.  Execution and Authentication.............................................................23
         SECTION 2.03.  Registrar and Paying Agent...............................................................23
         SECTION 2.04.  Paying Agent To Hold Money in Trust......................................................24
         SECTION 2.05.  Holder Lists.............................................................................24
         SECTION 2.06.  Replacement Securities...................................................................25
         SECTION 2.07.  Outstanding Securities...................................................................25
         SECTION 2.08.  Temporary Securities.....................................................................25
         SECTION 2.09.  Cancellation.............................................................................25
         SECTION 2.10.  Defaulted Interest.......................................................................26
         SECTION 2.11.  CUSIP Numbers............................................................................26
         SECTION 2.12.  Securities Depository....................................................................26

ARTICLE 3  REDEMPTION............................................................................................27
         SECTION 3.01.  Notices to Trustee.......................................................................27
         SECTION 3.02.  Selection of Securities To Be Redeemed...................................................27
         SECTION 3.03.  Notice of Redemption.....................................................................27
         SECTION 3.04.  Effect of Notice of Redemption...........................................................28
         SECTION 3.05.  Deposit of Redemption Price..............................................................28
         SECTION 3.06.  Securities Redeemed in Part..............................................................28
         SECTION 3.07.  Optional Redemption......................................................................28

ARTICLE 4  COVENANTS.............................................................................................29
         SECTION 4.01.  Payment of Securities....................................................................29
         SECTION 4.02.  Commission Reports.......................................................................30
         SECTION 4.03.  Limitation on Indebtedness...............................................................30
         SECTION 4.04.  Limitation on Restricted Payments........................................................30
         SECTION 4.05.  Limitation on Dividends and Other Payment Restrictions Affecting Restricted
                        Subsidiaries.............................................................................33
         SECTION 4.06.  Limitation on Asset Dispositions.........................................................34
         SECTION 4.07.  Limitation on Transactions with Affiliates...............................................36
         SECTION 4.08.  Change of Control........................................................................37
         SECTION 4.09.  Designation of Restricted and Unrestricted Subsidiaries..................................39
         SECTION 4.10.  Limitation on Layered Indebtedness.......................................................39
         SECTION 4.11.  Compliance Certificate...................................................................39
         SECTION 4.12.  Further Instruments and Acts.............................................................40
         SECTION 4.13.  Limitation on Liens......................................................................40
         SECTION 4.14.  Future Subsidiary Guarantors.............................................................40
</TABLE>

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<TABLE>
<S>                                                                                                             <C>
ARTICLE 5  SURVIVING ENTITY......................................................................................40
         SECTION 5.01.  Merger, Consolidation and Sale of Assets.................................................40

ARTICLE 6  DEFAULTS AND REMEDIES.................................................................................42
         SECTION 6.01.  Events of Default........................................................................42
         SECTION 6.02.  Acceleration.............................................................................43
         SECTION 6.03.  Other Remedies...........................................................................44
         SECTION 6.04.  Waiver of Past Defaults..................................................................44
         SECTION 6.05.  Control by Majority......................................................................44
         SECTION 6.06.  Limitation on Suits......................................................................44
         SECTION 6.07.  Rights of Holders to Receive Payment.....................................................45
         SECTION 6.08.  Collection Suit by Trustee...............................................................45
         SECTION 6.09.  Trustee May File Proofs of Claim.........................................................45
         SECTION 6.10.  Priorities...............................................................................45
         SECTION 6.11.  Undertaking for Costs....................................................................46
         SECTION 6.12.  Waiver of Stay or Extension Laws.........................................................46

ARTICLE 7  TRUSTEE...............................................................................................46
         SECTION 7.01.  Duties of Trustee........................................................................46
         SECTION 7.02.  Rights of Trustee........................................................................47
         SECTION 7.03.  Individual Rights of Trustee.............................................................48
         SECTION 7.04.  Trustee's Disclaimer.....................................................................48
         SECTION 7.05.  Notice of Defaults.......................................................................49
         SECTION 7.06.  Reports by Trustee to Holders............................................................49
         SECTION 7.07.  Compensation and Indemnity...............................................................49
         SECTION 7.08.  Replacement of Trustee...................................................................50
         SECTION 7.09.  Successor Trustee by Merger..............................................................50
         SECTION 7.10.  Eligibility; Disqualification............................................................51
         SECTION 7.11.  Preferential Collection of Claims Against Company........................................51

ARTICLE 8  DISCHARGE OF INDENTURE; DEFEASANCE....................................................................51
         SECTION 8.01.  Discharge of Liability on Securities; Defeasance.........................................51
         SECTION 8.02.  Conditions to Defeasance.................................................................52
         SECTION 8.03.  Application of Trust Money...............................................................53
         SECTION 8.04.  Repayment to Company.....................................................................54
         SECTION 8.05.  Indemnity for Government Obligations.....................................................54
         SECTION 8.06.  Reinstatement............................................................................54

ARTICLE 9  AMENDMENTS............................................................................................54
         SECTION 9.01.  Without Consent of Holders...............................................................54
         SECTION 9.02.  With Consent of Holders..................................................................55
         SECTION 9.03.  Compliance with Trust Indenture Act......................................................56
         SECTION 9.04.  Revocation and Effect of Consents and Waivers............................................56
         SECTION 9.05.  Notation on or Exchange of Securities....................................................57
</TABLE>

<PAGE>   6

<TABLE>
<S>                                                                                                             <C>
         SECTION 9.06.  Trustee to Sign Amendments...............................................................57
         SECTION 9.07.  Payment for Consent......................................................................57

ARTICLE 10  SUBORDINATION OF SECURITIES..........................................................................57
         SECTION 10.01.  Agreement to Subordinate................................................................57
         SECTION 10.02.  Liquidation, Dissolution, Bankruptcy....................................................58
         SECTION 10.03.  Default on Senior Indebtedness..........................................................58
         SECTION 10.04.  Acceleration of Payment of Securities...................................................59
         SECTION 10.05.  When Distribution Must Be Paid Over.....................................................59
         SECTION 10.06.  Subrogation.............................................................................59
         SECTION 10.07.  Relative Rights.........................................................................59
         SECTION 10.08.  Subordination May Not Be Impaired by Company............................................59
         SECTION 10.09.  Rights of Trustee and Paying Agent......................................................59
         SECTION 10.10.  Distribution or Notice to Representative................................................60
         SECTION 10.11.  Article 10 Not to Prevent Events of Default or Limit Right to Accelerate................60
         SECTION 10.12.  Trust Moneys Not Subordinated...........................................................60
         SECTION 10.13.  Trustee Entitled to Rely................................................................60
         SECTION 10.14.  Trustee to Effectuate Subordination.....................................................61
         SECTION 10.15.  Trustee Not Fiduciary for Holders of Senior Indebtedness................................61
         SECTION 10.16.  Reliance by Holders of Senior Indebtedness on Subordination Provisions..................61

ARTICLE 11  GUARANTIES; SUBORDINATION OF GUARANTIES..............................................................61
         SECTION 11.01.  Parent and Subsidiary Guaranties........................................................61
         SECTION 11.02.  Contribution............................................................................62
         SECTION 11.03.  Agreement to Subordinate................................................................63
         SECTION 11.04.  Liquidation, Dissolution, Bankruptcy....................................................63
         SECTION 11.05.  Default on Senior Indebtedness of the Guarantors........................................63
         SECTION 11.06.  Acceleration of Payment of Securities...................................................64
         SECTION 11.07.  When Distribution Must Be Paid Over.....................................................64
         SECTION 11.08.  Subrogation.............................................................................64
         SECTION 11.09.  Relative Rights.........................................................................65
         SECTION 11.10.  Subordination May Not Be Impaired by the Guarantors.....................................65
         SECTION 11.11.  Rights of Trustee and Paying Agent......................................................65
         SECTION 11.12.  Distribution or Notice to Representative................................................65
         SECTION 11.13.  Article 11 Not to Prevent Events of Default or Limit Right to Accelerate................65
         SECTION 11.14.  Trust Moneys Not Subordinated...........................................................65
         SECTION 11.15.  Trustee Entitled to Rely................................................................66
         SECTION 11.16.  Trustee to Effectuate Subordination.....................................................66
         SECTION 11.17.  Trustee Not Fiduciary for Holders of Senior Indebtedness of the Guarantors..............66
         SECTION 11.18.  Reliance by Holders of Senior Indebtedness of the Guarantors on Subordination
                         Provisions..............................................................................66
         SECTION 11.19.  Release of Guarantors...................................................................67
</TABLE>

<PAGE>   7

<TABLE>
<S>                                                                                                              <C>
ARTICLE 12  MISCELLANEOUS........................................................................................67
         SECTION 12.01.  Trust Indenture Act Controls............................................................67
         SECTION 12.02.  Notices.................................................................................67
         SECTION 12.03.  Communication by Holders with Other Holders.............................................68
         SECTION 12.04.  Certificate and Opinion as to Conditions Precedent......................................68
         SECTION 12.05.  Statements Required in Certificate or Opinion...........................................68
         SECTION 12.06.  When Securities Disregarded.............................................................69
         SECTION 12.07.  Rules by Trustee, Paying Agent and Registrar............................................69
         SECTION 12.08.  Legal Holidays..........................................................................69
         SECTION 12.09.  GOVERNING LAW...........................................................................69
         SECTION 12.10.  No Recourse Against Others..............................................................69
         SECTION 12.11.  Successors..............................................................................70
         SECTION 12.12.  Multiple Originals......................................................................70
         SECTION 12.13.  Table of Contents; Headings.............................................................70
         SECTION 12.14.  Severability............................................................................70
</TABLE>

Exhibit A   -  Form of Face of Initial Notes
Exhibit B   -  Form of Face of Exchange Note

<PAGE>   8

                  INDENTURE, dated as of October 4, 2000, among UNITED STATES
CAN COMPANY, a Delaware corporation (the "Company"), U.S. CAN CORPORATION, a
Delaware corporation and the Company's sole stockholder (the "Parent
Guarantor"), the Subsidiary Guarantors (as defined herein) and BANK ONE TRUST
COMPANY, N.A., a national banking 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 (as defined herein)
of (i) the Company's 12 3/8% Senior Subordinated Notes Due 2010 issued on the
date hereof, (ii) any Additional Notes (as defined herein) that may be issued on
any other Issue Date (all such Securities in clauses (i) and (ii) being referred
to collectively as the "Initial Notes"), (iii) if and when issued in exchange
for the Initial Notes, the Company's Series B 12*% Senior Subordinated Notes Due
2010 (the "Exchange Notes"). Except as otherwise provided herein, the Securities
will be limited to $275,000,000 in aggregate principal amount outstanding, of
which $175,000,000 in aggregate principal amount will be initially issued on the
date hereof. Subject to the conditions set forth herein, the Company may issue
up to an additional $100,000,000 aggregate principal amount of Securities.

                                   ARTICLE 1

                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  SECTION 1.01. Definitions.

                  "10-1/8% Notes" means the 10-1/8% Senior Subordinated Notes
due 2006 of the Parent Guarantor.

                  "Additional Assets" means (i) any property or assets (other
than Indebtedness and Capital Stock) that are used or intended to be used in a
Related Business; (ii) Capital Stock of a Person that becomes a Restricted
Subsidiary as a result of the acquisition of such Capital Stock by the Company
or another Restricted Subsidiary; or (iii) Capital Stock constituting a minority
interest in any Person that at such time is a Restricted Subsidiary; provided,
however, that, in the case of clauses (ii) and (iii), such Restricted Subsidiary
is primarily engaged in a Related Business.

                  "Additional Notes" means up to $100,000,000 in aggregate
principal amount of Initial Notes initially issued subsequent to the date hereof
pursuant to Article II and in compliance with Section 4.03.

                  "Affiliate" of any specified Person means (i) any other
Person, directly or indirectly, controlling or controlled by or under direct or
indirect common control with such specified Person or (ii) any other Person who
is a director or officer (a) of such specified Person, (b) of any subsidiary of
such specified Person or (c) of any Person described in clause (i) above. 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 Section 4.07 only,

                                      -1-
<PAGE>   9

"Affiliate" shall also mean any beneficial owner of shares representing 10% or
more of the total voting power of the Voting Stock (on a fully diluted basis) of
the Company or of rights or warrants to purchase such Voting Stock (whether or
not currently exercisable) and any Person who would be an Affiliate of any such
beneficial owner pursuant to the first sentence of this definition.

                  "Asset Disposition" means any direct or indirect sale
including a Sale/Leaseback Transaction, lease, transfer, conveyance or other
disposition (or series of related sales, Sale/Leaseback Transactions, leases,
transfers, conveyances or dispositions) of shares of Capital Stock of a
Restricted Subsidiary (other than directors' qualifying shares), property or
other assets (each referred to for the purposes of this definition as a
"disposition") by the Company, the Parent Guarantor or any of the Restricted
Subsidiaries other than (a) a disposition by a Restricted Subsidiary to the
Company or by the Company or a Restricted Subsidiary to a Wholly Owned
Subsidiary, (b) a disposition of property or assets at Fair Market Value in the
ordinary course of business of the Company or any of the Restricted
Subsidiaries, as applicable, (c) a disposition with a Fair Market Value and a
sale price of less than $5 million, (d) operating leases entered in the ordinary
course of business, (e) for purposes of Section 4.06, only, a disposition
subject to the limitations set forth under Section 4.04 and (f) when used with
respect to the Company or any Guarantor, any Asset Disposition pursuant to
Section 5.01 which constitutes a disposition of all or substantially all of the
Company's or such Guarantor's property.

                  "Attributable Indebtedness" means Indebtedness deemed to be
Incurred in respect of a Sale/Leaseback Transaction and shall be, at the date of
determination, the present value (discounted at the actual rate of interest
implicit in such transaction, 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).

                  "Average Life" means, as of the date of determination, with
respect to any Indebtedness or Preferred Stock, the quotient obtained by
dividing (i) 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
such Indebtedness or redemption or similar payment with respect to such
Preferred Stock multiplied by the amount of such payment by (ii) the sum of all
such payments.

                  "Bank Indebtedness" means any and all amounts payable under or
in respect of the Credit Agreement from time to time, whether outstanding on the
Issue Date or thereafter incurred, including principal, premium (if any),
interest (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company or any Guarantor
whether or not a claim for post-filing interest is allowed in such proceedings),
fees, charges, expenses, reimbursement obligations, guarantees and all other
amounts payable thereunder or in respect thereof.

                  "Board of Directors" means, as applicable, the Board of
Directors of the Company or the Parent Guarantor, or any committee thereof duly
authorized to act on behalf of such Board of Directors.

                                      -2-
<PAGE>   10

                  "Business Day" shall mean any Monday, Tuesday, Wednesday,
Thursday, or Friday which is not a Legal Holiday.

                  "Capital Expenditure Indebtedness" means Indebtedness issued
to finance the purchase or construction of any assets acquired or constructed
after the Issue Date (i) to the extent the purchase or construction prices for
such assets are or should be included in "addition to property, plant or
equipment" in accordance with GAAP, (ii) if the acquisition or construction of
such assets is not part of any acquisition of a person or business unit and
(iii) if such Indebtedness is issued within 360 days of the acquisition or
completion of construction of such assets.

                  "Capitalized Lease Obligations" means an obligation that is
required to be classified and accounted for as a capitalized 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 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 or
exchangeable into such equity.

                  "Certified Resolution" means a duly adopted resolution of the
Board of Directors in full force and effect at the time of determination and
certified as such by the Secretary or an Assistant Secretary of the Company or
the Parent Guarantor, as applicable.

                  "Change of Control" means the occurrence of any of the
following events: (a) prior to the first Public Equity Offering that results in
a Public Market, (i) the Permitted Holders cease to be the "beneficial owners"
(as defined in Rule 13d-3 under the Exchange Act, except that a Person will 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 of time), directly or indirectly, of at least 40% of the total
voting power of the Voting Stock of the Company or the Parent Guarantor, whether
as a result of the issuance of securities of the Company or the Parent
Guarantor, any merger, consolidation, liquidation or dissolution of the Company
or the Parent Guarantor, any direct or indirect transfer of securities by the
Permitted Holders or otherwise, or (ii) any "person" or "group" (as such terms
are used in Section 13(d) or Section 14(d) of the Exchange Act or any successor
provisions to either of the foregoing, including any group acting for the
purpose of acquiring, voting or disposing of securities within the meaning of
Rule 13d-5(b)(1) under the Exchange Act) becomes the "beneficial owner" (as
defined above), directly or indirectly, of more Voting Stock of the Company or
the Parent Guarantor than is "beneficially owned" by the Permitted Holders (for
purposes of this clause (a) the Permitted Holders will be deemed to beneficially
own any Voting Stock of a specified corporation held by a parent corporation so
long as the Permitted Holders beneficially own, directly or indirectly, in the
aggregate a majority of the total voting power of the Voting Stock of such
parent corporation); (b) on or after the first Public Equity Offering that
results in a Public

                                      -3-
<PAGE>   11

Market, if any "person" or "group" (as such terms are used in Sections 13(d) and
14(d) of the Exchange Act or any successor provisions to either of the
foregoing), including any group acting for the purpose of acquiring, holding,
voting or disposing of securities within the meaning of Rule 13d-5(b)(1) under
the Exchange Act, other than one or more Permitted Holders or an underwriter
engaged in a firm commitment underwriting in connection with a public offering
of the Voting Stock of the Company or the Parent Guarantor, is or becomes the
"beneficial owner" (as such term is used in Rules 13d-3 and 13d-5 under the
Exchange Act, except that a 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 of time),
directly or indirectly, of more than 50% of the total voting power of the Voting
Stock of the Company or the Parent Guarantor; (c) the Company or the Parent
Guarantor consolidates or merges with or into any other Person, other than a
consolidation or merger (i) with a Wholly Owned Subsidiary or a Permitted Holder
or (ii) pursuant to a transaction in which the outstanding Voting Stock of the
Company or the Parent Guarantor is changed into or exchanged for cash,
securities or other property with the effect that (x) the outstanding Voting
Stock of the Company or the Parent Guarantor is changed into or exchanged for
other Voting Stock of the Company, the Parent Guarantor or the surviving
corporation, or (y) the beneficial owners of the outstanding Voting Stock of the
Company or the Parent Guarantor immediately prior to such transaction,
beneficially own, directly or indirectly, more than 50% of the total voting
power of the Voting Stock of the surviving corporation immediately following
such transaction, (d) the Company, the Parent Guarantor or any of the Restricted
Subsidiaries, directly or indirectly, sells, assigns, conveys, transfers,
leases, or otherwise disposes of, in one transaction or a series of related
transactions, all or substantially all of the property or assets of the Company,
the Parent Guarantor and the Restricted Subsidiaries to any Person or group of
related Persons (as such term is used in Section 13(d) of the Exchange Act),
other than the Company, a Wholly Owned Subsidiary or a Permitted Holder; or (e)
the stockholders of the Company or the Parent Guarantor shall have approved any
plan of liquidation or dissolution of the Company or the Parent Guarantor, as
the case may be. For purposes of this definition, the collective parties to the
Stockholder Agreement, as such may be amended from time to time, shall not
constitute a "group" solely as a result of being parties to the Stockholder
Agreement.

                  "Closing Date" means October 4, 2000.

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

                  "Commission" means the United States Securities and Exchange
Commission.

                  "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.

                  "Company Order" means a written order signed in the name of
the Company by its Chairman of the Board, its President or a Vice President, and
by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary, and delivered to the Trustee.

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

                                      -4-
<PAGE>   12

(i) the aggregate amount of EBITDA for the period of the most recent four
consecutive fiscal quarters ending at least 30 days prior to the date of such
determination to (ii) Consolidated Interest Expense for such four fiscal
quarters; provided, however, that (a) if the Company or any Restricted
Subsidiary has Incurred any Indebtedness (other than revolving credit borrowings
made in the ordinary course of business for working capital purposes) 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, Consolidated Interest Expense for such period shall be
calculated after giving effect on a pro forma basis to such Indebtedness as if
such Indebtedness had been Incurred on the first day of such period, and the
discharge of any other Indebtedness repaid, repurchased, defeased or otherwise
discharged with the proceeds of such new Indebtedness as if such discharge had
occurred on the first day of such period; (b) if, since the beginning of such
period, the Company or any Restricted Subsidiary shall have made any Asset
Disposition, or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio is an Asset Disposition, the EBITDA for such period
shall be reduced by an amount equal to the 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 the EBITDA (if negative)
directly attributable thereto for such period, as if such Asset Disposition had
occurred on the first day of 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 the Company or any
Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged with
respect to the Company and its continuing Restricted Subsidiaries in connection
with such Asset Disposition for such period as if such Asset Disposition had
occurred on the first day of such period (or, if the Capital Stock of any
Restricted Subsidiary is sold, the Consolidated Interest Expense for such period
as if such Asset Disposition had occurred on the first day of such period
directly attributable to the Indebtedness of such Restricted Subsidiary to the
extent the Company and its continuing Restricted Subsidiaries are no longer
liable for such Indebtedness after such sale); (c) if, since the beginning of
such period the Company or any Restricted Subsidiary (by merger or otherwise)
shall have made an Investment in any 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 causing 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 (d) if since the beginning of such
period any Person (that subsequently became a Restricted Subsidiary or was
merged with or into the Company or any Restricted Subsidiary since the beginning
of such period) shall have made any Asset Disposition or any Investment that
would have required an adjustment pursuant to clause (b) or (c) above if made by
the Company 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 or Investment 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 pro forma
calculations of the amount of income or earnings relating thereto and the amount
of Consolidated Interest Expense associated with any Indebtedness Incurred in
connection therewith shall be determined in good faith by a responsible
financial or accounting officer of the Company and as further contemplated by
the definition of pro forma. If any

                                      -5-
<PAGE>   13

Indebtedness bears a floating rate of interest and is being given pro forma
effect, the interest expense 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 the Company and its Restricted Subsidiaries determined
in accordance with GAAP, plus, to the extent not included in such interest
expense, (i) interest expense attributable to Capitalized Lease Obligations,
(ii) amortization of debt discount and debt issuance cost, (iii) capitalized
interest, (iv) non-cash interest expense, (v) accrued interest, (vi)
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers' acceptance financing, (vii) to the extent any
Indebtedness of any Person is Guaranteed by the Company or any Restricted
Subsidiary, the aggregate amount of interest related to such Guarantee actually
paid or required by GAAP to be accrued in the Company's financial statements,
(viii) net costs associated with Interest Rate Agreements and Currency Exchange
Agreements (including, in each case, amortization of fees), (ix) the interest
portion of any deferred obligation, (x) Preferred Stock Dividends in respect of
all Preferred Stock of the Company and its Restricted Subsidiaries and
Redeemable Stock of the Company held by Persons other than the Company or a
Wholly Owned Subsidiary, (xi) fees payable in connection with financings to the
extent not being amortized as contemplated by (ii) above, including commitment,
availability and similar fees and (xii) 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 the
Company) in connection with Indebtedness Incurred by such plan or trust.

                  "Consolidated Net Income" means, for any period, the net
income (loss) of the Company and its Subsidiaries determined in accordance with
GAAP; provided, however, that there shall not be included in such Consolidated
Net Income (i) any net income (loss) of any Person if such Person is not a
Restricted Subsidiary, except that (a) subject to the limitations contained in
clause (iv) below, the Company's 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 the Company or a Restricted Subsidiary as a dividend or other distribution
(subject, in the case of a dividend or other distribution to a Restricted
Subsidiary, to the limitations contained in clause (iii) below) and (b) the
Company's equity in a net loss of any such Person (including an Unrestricted
Subsidiary) for such period shall be included in determining such Consolidated
Net Income to the extent funded in cash by the Company, (ii) except as required
by the pro forma requirements of the definition of "Consolidated Coverage
Ratio", any net income (loss) of any Person acquired by the Company or a
Subsidiary in a pooling of interests transaction for any period prior to the
date of such acquisition, (iii) any net income (loss) of any Restricted
Subsidiary if such 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 the Company (other than
pursuant to the Credit Agreement), except that (a) subject to the limitations
contained in clause (iv) below, the Company's equity in the net income of any
such Restricted Subsidiary for such period shall be included in such
Consolidated Net Income up to the aggregate amount of cash that could have been
distributed by such Restricted Subsidiary during such period to the Company or
another

                                      -6-
<PAGE>   14

Restricted Subsidiary as a dividend (subject, in the case of a dividend to
another Restricted Subsidiary, to the limitation contained in this clause) and
(b) the Company's equity in a net loss of any such Restricted Subsidiary for
such period shall be included in determining such Consolidated Net Income, (iv)
any gain or loss realized upon the sale or other disposition of any property,
plant or equipment of the Company or its consolidated Subsidiaries (including
pursuant to any Sale/Leaseback Transaction) 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, (v) any
extraordinary gain or loss, (vi) the cumulative effect of a change in accounting
principles, (vii) non-cash compensation charges incurred as a result of the
issuance of employee stock options or restricted stock for less than fair market
value and (viii) the non-recurring fees, expenses and other costs incurred in
connection with the Transactions that are reflected in the financial statements
of the Company in the period the Transactions are consummated.

                  "Credit Agreement" means that certain Credit Agreement, dated
October 4, 2000, as amended, among the Company and the Guarantors and the
syndicate of lenders named therein, together with any guarantees, collateral
documents or other instruments or agreements executed in connection therewith,
as the same may be amended, supplemented or otherwise modified from time to time
and any renewal, extensions, revisions, restructuring, refinancings or
replacements thereof (whether with the original agent or agents or lenders or
other agents or lenders and whether pursuant to the original credit agreement or
another credit or other agreement or indenture).

                  "Currency Exchange Agreement" means, in respect of any Person,
any foreign currency swap agreement or other agreement pursuant to which the
Company, the Parent Guarantor or any of the Company's Subsidiaries hedge their
exposure to foreign currency exchange rates in connection with their business
operations.

                  "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 (i) the Bank
Indebtedness and (ii) any other Senior Indebtedness 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 million, and is specifically designated by the Company in the
instrument evidencing or governing such Senior Indebtedness as "Designated
Senior Indebtedness" for purposes of this Indenture and has been designated as
"Designated Senior Indebtedness" for purposes of this Indenture in an Officers'
Certificate received by the Trustee.

                  "Designated Senior Indebtedness of Guarantors" means (i) with
respect to the Guarantors, the Bank Indebtedness and (ii) any other Senior
Indebtedness of the Guarantors 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
million, and is specifically designated by such Guarantor in the instrument
evidencing or governing such Senior Indebtedness of the Guarantors as
"Designated Senior Indebtedness of Guarantors" for purposes of this Indenture
and has been designated as "Designated Senior Indebtedness of Guarantors" for
purposes of this Indenture in an Officers' Certificate received by the Trustee.

                                      -7-
<PAGE>   15

                  "Disinterested Director" means a director of the Company other
than a director (i) who is an employee of the Company or a Subsidiary of the
Company or (ii) who is a party, or who is a director, officer, employee or
Affiliate (or is related by blood or marriage to any such Person) of a party, to
the transaction in question, and who is, in fact, independent in respect of such
transaction.

                  "Disqualified Stock" of a Person means Redeemable Stock of
such Person as to which the maturity, mandatory redemption, conversion or
exchange or redemption at the option of the holder thereof occurs, or may occur,
on or prior to the first anniversary of the Stated Maturity of the Securities.

                  "Domestic Restricted Subsidiary" means any Restricted
Subsidiary of the Company other than a Foreign Restricted Subsidiary.

                  "Domestic Subsidiary" means any subsidiary of the Company
other than a Foreign Subsidiary.

                  "EBITDA" means, for any period, the sum for such period of
Consolidated Net Income plus, to the extent reflected in the income statement of
such Person for such period from which Consolidated Net Income is determined,
without duplication, (i) Consolidated Interest Expense, (ii) net provision for
plant closing costs, (iii) income tax expense, (iv) depreciation expense, (v)
amortization expense, (vi) any charge related to any premium or penalty paid in
connection with redeeming or retiring any Indebtedness prior to its Stated
Maturity and (vii) any other non-cash charges to the extent deducted from or
reflected in Consolidated Net Income except for any non-cash charges that
represent accruals of, or reserves for, cash disbursements to be made in any
future accounting period (less any non-cash items increasing Consolidated Net
Income for such period that were not accrued in the ordinary course of
business).

                  "Exchange Act" means the 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 buyer, neither of
whom is under undue pressure or compulsion to complete the transaction. Fair
Market Value shall be determined, except as otherwise provided, (i) if such
property or asset has a Fair Market Value of less than $3.0 million, by any
Officer of the Company or (ii) if such property or asset has a Fair Market Value
in excess of $3.0 million, by a majority of the Board of Directors and evidenced
by a Certified Resolution, dated within 30 days of the relevant transaction.

                  "Foreign Restricted Subsidiary" means any Restricted
Subsidiary of the Company that is not organized under the laws of the United
States of America or any state thereof or the District of Columbia.

                  "Foreign Significant Subsidiary" means any foreign Restricted
Subsidiary of the Company meeting the standards specified in Rule 1-02(w) of
Regulation S-X promulgated by the Commission as in effect on the Issue Date.

                                      -8-
<PAGE>   16

                  "Foreign Subsidiary" means any Subsidiary of the Company that
is not organized under the laws of the United States of America or any state
thereof or the District of Columbia.

                  "GAAP" means generally accepted accounting principles in the
United States of America as in effect as of the Issue Date, including those set
forth in (i) the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants, (ii) statements and
pronouncements of the Financial Accounting Standards Board and (iii) such other
statements by such other entity as approved by a significant segment of the
accounting profession. All ratios and computations based on GAAP contained in
this Indenture shall be computed in conformity with GAAP consistently applied.

                  "Guarantors" means the Parent Guarantor and the Subsidiary
Guarantors, collectively.

                  "Guarantee" means any obligation, contingent or otherwise, of
any Person, directly or indirectly, guaranteeing any Indebtedness or other
obligation of any other Person and any obligation, direct or indirect,
contingent or otherwise, of such Person (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other
obligation of such other Person (whether arising by virtue of partnership
arrangements, or by agreement to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for purposes of assuring in any
other manner the obligee of such Indebtedness or other obligation 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.

                  "Holder" 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 Subsidiary (whether by
merger, consolidation, acquisition or otherwise) shall be deemed to be incurred
by such Subsidiary at the time it becomes a Subsidiary. The terms "Incurred",
"Incurrence" and "Incurring" shall each have a correlative meaning.

                  "Indebtedness" means, with respect to any Person on any date
of determination (without duplication), (i) the principal of and premium (if
any) in respect of indebtedness of such Person for borrowed money; (ii) the
principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments; (iii) all
Capitalized Lease Obligations and Attributable Indebtedness of such Person; (iv)
all obligations of such Person to pay the deferred and unpaid purchase price of
property or services (except Trade Payables), which purchase price is due more
than six months after the date of placing such property in service or taking
delivery and title thereto or the completion of such services; (v) all
obligations of such Person in respect of letters of credit, banker's acceptances
or other similar instruments or credit transactions (including reimbursement
obligations with respect thereto), other than obligations with respect to
letters of credit securing obligations (other than obligations

                                      -9-
<PAGE>   17

described in clauses (i) through (iv) 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 third Business Day following receipt by such Person of a demand for
reimbursement following payment on the letter of credit; (vi) the amount of all
obligations of such Person with respect to the redemption, repayment or other
repurchase of any Disqualified Stock or, with respect to any Subsidiary that is
not a Subsidiary Guarantor, any Preferred Stock (but excluding, in each case,
any accrued dividends); (vii) all Indebtedness of other Persons secured by a
Lien on any asset of such Person, whether or not such Indebtedness is assumed by
such Person; provided, however, that the amount of such Indebtedness shall be
the lesser of (a) the fair market value of such asset at such date of
determination and (b) the amount of such Indebtedness of such other Persons;
(viii) all Indebtedness of other Persons to the extent Guaranteed by such
Person; and (ix) to the extent not otherwise included in this definition, net
obligations in respect of Interest Rate Agreements and Currency Exchange
Agreements.

                  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.

                  "Indenture" means this instrument as originally executed or as
it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the TIA that are deemed to be a part of and govern
this instrument and any such supplemental indenture, respectively.

                  "Initial Purchasers" means Salomon Smith Barney Inc. and Banc
of America Securities LLC.

                  "Interest Rate Agreement" means, in respect of a Person, any
interest rate swap agreement, interest rate option agreement, interest rate cap
agreement, interest rate collar agreement, interest rate floor agreement or
other similar agreement or arrangement.

                  "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 or trade receivables on the
balance sheet of such Person) or other extension 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 of
Capital Stock, Indebtedness or other similar instruments issued by such Person.
For purposes of Section 4.09 and the limitations set forth in Section 4.04, (i)
"Investment" shall include the portion (proportionate to the Company's equity
interest in such Subsidiary) of the Fair Market Value of the net assets of any
Subsidiary of the Company at the time that such Subsidiary is designated an
Unrestricted Subsidiary; provided, however, that, upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Company shall be deemed to continue
to have a permanent "Investment" in an Unrestricted Subsidiary in an amount (if
positive) equal to (a) the Company's "Investment" in such Subsidiary at the time
of such redesignation less (b) the portion (proportionate to the Company's
equity interest in such

                                      -10-
<PAGE>   18

Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the
time that such Subsidiary is so redesignated a Restricted Subsidiary; and (ii)
any property transferred to or from an Unrestricted Subsidiary shall be valued
at its Fair Market Value at the time of such transfer. In determining the amount
of any Investment in respect of any property or assets other than cash, such
property or asset shall be valued at its Fair Market Value at the time of such
Investment (unless otherwise specified in this definition), as determined in
good faith by the Board of Directors, whose determination shall be evidenced by
a Certified Resolution.

                  "Issue Date" means the date on which the Initial Notes are
originally issued.

                  "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) or any Sale/Leaseback
Transaction.

                  "Net Available Cash" from an Asset Disposition means cash
payments received (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise,
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
noncash form) therefrom, in each case, net of (i) all legal, title and recording
tax expenses, commissions and other fees and expenses incurred, and all federal,
state, provincial, foreign and local taxes required to be paid or accrued as a
liability under GAAP, as a consequence of such Asset Disposition, (ii) all
payments made on any Indebtedness that is secured by any assets subject to such
Asset Disposition, in accordance with the terms of any Lien upon 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, (iii) all distributions and other payments required to be made to
minority interest holders in Subsidiaries or joint ventures as a result of such
Asset Disposition and (iv) the deduction of appropriate amounts to be provided
by the seller as a reserve, in accordance with GAAP, against any liabilities
associated with the assets disposed of in such Asset Disposition and retained by
the Company or any Restricted Subsidiary after such Asset Disposition.

                  "Net Cash Proceeds", with respect to any issuance or sale of
Capital Stock, 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.

                  "Officer" means the Chairman of the Board, President, Chief
Executive Officer, Chief Operating Officer, Senior Vice President, Chief
Financial Officer, Treasurer or Controller of the Company.

                  "Officers' Certificate" means a certificate signed by two
Officers at least one of whom shall be the principal executive officer,
principal accounting officer or principal financial officer of the Company.

                                      -11-
<PAGE>   19

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

                  "Parent Guarantor" means U.S. Can Corporation, the Company's
sole stockholder and parent corporation.

                  "pari passu", as applied to the ranking of any Indebtedness of
a Person in relation to other Indebtedness of such Person, means that each such
Indebtedness either (i) is not subordinate in right of payment to any
Indebtedness or (ii) is subordinate in right of payment to the same Indebtedness
as is the other, and is so subordinate to the same extent, and is not
subordinate in right of payment to each other or to any Indebtedness as to which
the other is not so subordinate.

                  "Permitted Holder" means Berkshire Partners LLC (and its
Affiliates) or any Person of which the foregoing "beneficially owns" (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act) voting securities representing
at least 75% of the total voting power of all classes of Capital Stock of such
Person (exclusive of any matters as to which class voting rights exist).

                  "Permitted Indebtedness" means (i) Indebtedness Incurred if,
after giving pro forma effect to the Incurrence and application of the proceeds
thereof, the Consolidated Coverage Ratio exceeds 2.0 to 1.0; (ii) Indebtedness
Incurred pursuant to the Credit Agreement in an amount outstanding at any time
not to exceed $400.0 million (reduced by any required permanent repayments of
the principal amount of Indebtedness under the Credit Agreement with the
proceeds of Asset Dispositions that are accompanied by a corresponding permanent
commitment reduction thereunder); (iii) Capital Expenditure Indebtedness
Incurred in an aggregate principal amount not to exceed $15 million in any
fiscal year of the Company; (iv) Indebtedness under Interest Rate Agreements and
Currency Exchange Agreements, entered into for the purpose of limiting interest
rate or foreign exchange risk, as the case may be, provided that the obligations
under Interest Rate Agreements are related to payment obligations on Permitted
Indebtedness and provided further that obligations under Currency Exchange
Agreements are entered into in connection with foreign business transactions in
the ordinary course of business; (v) Indebtedness of the Company to any
Restricted Subsidiary or of any Restricted Subsidiary to the Company or any
other Restricted Subsidiary for so long as such Indebtedness is held by the
Company or such Restricted Subsidiary, in each case subject to no Lien held by a
Person other than the Company or a Restricted Subsidiary; provided that if as of
any date any Person other than the Company or a Restricted Subsidiary owns or
holds any such Indebtedness or holds a Lien in respect of such Indebtedness,
such date shall be deemed the incurrence of Indebtedness not constituting
Permitted Indebtedness (under any clause other than clause (i) of this
definition) by the issuer of such Indebtedness; (vi) Indebtedness evidenced by
the Initial Notes and the Guarantees not to exceed the $175 million initially
outstanding on the date hereof; (vii) Indebtedness outstanding immediately after
the issuance of the Initial Notes on the date hereof and the application of the
proceeds thereof reduced by the amount of any scheduled amortization payments or
mandatory prepayments when actually paid or permanent reductions thereon; (viii)
Refinancing Indebtedness incurred with respect to Indebtedness referred to in
clauses (i), (iii), (vi), (vii) and (xiii) of this paragraph; (ix) Indebtedness
incurred by the Company or any of its Restricted Subsidiaries

                                      -12-
<PAGE>   20

constituting reimbursement obligations with respect to letters of credit issued
in the ordinary course of business, including, without limitation, letters of
credit in respect of workers' compensation claims or self-insurance, or other
Indebtedness with respect to reimbursement type obligations regarding workers'
compensation claims and letters of credit and bankers acceptances for the
purchase of inventory and other goods; (x) Indebtedness arising from agreements
of the Company or a Restricted Subsidiary providing for indemnification,
adjustment of purchase price, or other similar obligations (exclusive of any
Guaranty of Indebtedness of the purchaser in such transaction), in each case,
incurred or assumed in connection with the disposition of any business, assets
or a Restricted Subsidiary of the Company, provided that the maximum assumable
liability in respect of all such Indebtedness shall at no time exceed the gross
proceeds actually received by the Company and its Restricted Subsidiaries in
connection with such disposition; (xi) obligations in respect of performance and
surety bonds and completion guarantees provided by the Company or any Restricted
Subsidiary of the Company in the ordinary course of business; (xii) Indebtedness
of Foreign Subsidiaries not borrowed under the Credit Agreement in an amount
outstanding at any time not to exceed $75 million, including any guarantees
thereof by the Company, provided, however, that the amount of Indebtedness of
Foreign Subsidiaries outstanding at any particular time under this clause (xii)
shall reduce on a dollar-for-dollar basis both the amount that may be borrowed
at that time under the Credit Agreement referred to in clause (ii) of this
definition and under the sub-facility available to Foreign Subsidiaries under
the Credit Agreement; (xiii) Indebtedness in an amount not to exceed $7 million
that is incurred or assumed by the Company or a Subsidiary in connection with
its acquisition of the majority interest in the Company's Formametal S.A. joint
venture in Argentina; and (xiv) Indebtedness not otherwise permitted to be
incurred pursuant to Section 4.03 in an aggregate principal amount not to exceed
at any one time outstanding $15.0 million.

                  "Permitted Investment" means an Investment by the Company or
any Restricted Subsidiary in (i) a Restricted Subsidiary or a Person which 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; (ii) 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, the Company or a Restricted Subsidiary;
provided, however, that such Person's primary business is a Related Business;
(iii) Temporary Cash Investments; (iv) receivables owing to the Company 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 the
Company or any such Restricted Subsidiary deems reasonable under the
circumstances; (v) payroll, travel and similar advances to cover matters that
are expected at the time of such advances ultimately to be treated as expenses
for accounting purposes and that are made in the ordinary course of business;
(vi) loans or advances to employees made in the ordinary course of business of
the Company or such Restricted Subsidiary, as the case may be, not to exceed
$1.0 million per employee and $3.0 million in the aggregate; (vii) stock,
obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Restricted
Subsidiary or in satisfaction of judgments; (viii) Investments in foreign joint
ventures in an aggregate amount not to exceed $5.0 million; and (ix) any
securities received or other Investments made as a result of the receipt of
non-cash consideration received in

                                      -13-
<PAGE>   21

connection with an Asset Disposition that was made pursuant to and in compliance
with the provisions of Section 4.06 or in connection with any other disposition
of assets not constituting an Asset Disposition.

                  "Permitted Liens" means, with respect to any Person, (i)
pledges or deposits by such Person under workers' compensation laws,
unemployment insurance laws or similar legislation, or good faith deposits in
connection with bids, tenders, contracts (other than for the payment of
Indebtedness) or leases to which such Person is a party, or deposits to secure
public or statutory obligations of such Person or deposits of cash or United
States government bonds to secure surety or appeal bonds to which such Person is
a party, or deposits and other Liens as security for taxes or import duties or
for the payment of rent, in each case, Incurred in the ordinary course of
business; (ii) Liens imposed by law, such as carriers', warehousemen's and
mechanics' liens, in each case, for sums not yet due or being contested in good
faith by appropriate proceedings, or other Liens arising out of judgments or
awards against such Person with respect to which such Person shall then be
prosecuting an appeal or other proceedings for review; (iii) Liens for property
taxes not yet delinquent or which are being contested in good faith by
appropriate proceedings; (iv) Liens in favor of issuers of surety bonds or
letters of credit issued pursuant to the request of and for the account of such
Person in the ordinary course of its business; (v) minor survey exceptions,
minor encumbrances, easements or reservations of, or rights of others for,
licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines
and other similar purposes, or zoning or other restrictions as to the use of
real property or Liens incidental to the conduct of the business of such Person
or to the ownership of its properties which were not Incurred in connection with
Indebtedness and which do not in the aggregate materially adversely affect the
value of said properties or materially impair their use in the operation of the
business of such Person; (vi) Liens existing on the Issue Date; (vii) Liens on
property or shares of stock of a Person at the time such Person becomes a
Subsidiary; provided, however, that any such Lien may not extend to any other
property owned by the Company, the Parent Guarantor or any Restricted
Subsidiary; provided further, that such Liens are not Incurred in anticipation
of or in connection with the transaction or series of related transactions
pursuant to which such Person became a Restricted Subsidiary; (viii) Liens on
property at the time the Company, the Parent Guarantor or a Subsidiary acquired
the property, including any acquisition by means of a merger or consolidation
with or into the Company, the Parent Guarantor or any Restricted Subsidiary;
provided, however, that any such Lien may not extend to any other property owned
by the Company, the Parent Guarantor or any Restricted Subsidiary; provided
further, that such Liens are not Incurred in anticipation of or in connection
with the acquisition of such property; (ix) Liens to secure any refinancing,
refunding, extension, renewal or replacement (or successive refinancings,
refundings, extensions, renewals or replacements) as a whole, or in part, of any
Indebtedness secured by any Lien referred to in the foregoing clauses (vi),
(vii) and (viii); provided, however, that (a) such new Lien shall be limited to
all or part of the same property that secured the original Lien (plus
improvements on such property) and (b) the Indebtedness secured by such Lien at
such time is not increased to any amount greater than the sum of (1) the
outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clauses (vi), (vii) and (viii) at the time the
original Lien became a Permitted Lien under this Indenture and (2) an amount
necessary to pay any fees and expenses, including premiums, related to such
refinancing, refunding, extension, renewal or replacement; (x) Liens

                                      -14-
<PAGE>   22

securing Senior Indebtedness that the Company or its Restricted Subsidiaries are
permitted to incur under this Indenture, including Capital Expenditure
Indebtedness; (xi) Liens in favor of the Company or the Guarantors; (xii) Liens
upon specific items of inventory or other goods and proceeds of any Person
securing such Person's obligations in respect of bankers' acceptances and
letters of credit issued or created for the account of such Person to facilitate
the purchase, shipment or storage of such inventory or other goods incurred in
the ordinary course of business; (xiii) Liens encumbering deposits made to
secure obligations arising from statutory, regulatory, contractual or warranty
requirements of the Company or any of its Restricted Subsidiaries, including
rights of offset and set-off incurred in the ordinary course of business; (xiv)
leases or subleases granted to others and entered into in the ordinary course of
business; and (xv) Liens to secure the performance of statutory obligations and
Liens imposed by law, surety or appeal bonds, performance bonds or other
obligations of a like nature incurred in the ordinary course of business.

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

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

                  "Preferred Stock Dividends" means all dividends with respect
to Preferred Stock of Restricted Subsidiaries held by Persons other than the
Company or a Wholly Owned Subsidiary. The amount of any such dividend shall be
equal to the quotient of such dividend divided by the difference between one and
the maximum statutory federal income tax rate (expressed as a decimal number
between 1 and 0) then applicable to the issuer of such Preferred Stock.

                  "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.

                  "pro forma" means, with respect to any calculation made or
required to be made pursuant to the terms hereof, a calculation in accordance
with Article 11 of Regulation S-X promulgated under the Securities Act (to the
extent applicable).

                  "Public Equity Offering" means an underwritten public offering
of Capital Stock of the Company (other than Disqualified Stock) pursuant to a
registration statement filed with the Commission in accordance with the
Securities Act or a firm commitment private placement of Capital Stock (other
than Disqualified Stock) pursuant to an agreement that requires the registration
of the resale of such Capital Stock (or Capital Stock issued upon conversion
thereof) contemporaneously with the issuance thereof or as soon as practical
thereafter.

                  "Public Market" means any time after (a) a Public Equity
Offering has been

                                      -15-
<PAGE>   23

consummated and (b) at least 10.0% of the total issued and outstanding common
stock of the Company has been distributed by means of an effective registration
statement under the Securities Act or sales pursuant to Rule 144 under the
Securities Act.

                  "Recapitalization Agreement" means the Agreement and Plan of
Merger, dated as of June 1, 2000, as amended by the First Amendment to Agreement
and Plan of Merger, dated as of June 28, 2000, and the Second Amendment to
Agreement and Plan of Merger, dated as of August 22, 2000, between the Parent
Guarantor and Pac Packaging Acquisition Corporation, a Delaware corporation.

                  "Record Date" means the date(s) specified as the record date
on the face of any Security.

                  "Redeemable 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) or upon the happening of any
event (i) matures or is mandatorily redeemable pursuant to a sinking fund
obligation or otherwise, (ii) is convertible or exchangeable for Indebtedness or
Disqualified Stock, or (iii) is redeemable at the option of the holder thereof,
in whole or in part.

                  "Refinancing Indebtedness" means Indebtedness that refunds,
refinances, replaces, renews, repays or extends (including pursuant to any
defeasance or discharge mechanism) (collectively, "refinances," and "refinanced"
shall have a correlative meaning) any Indebtedness existing on the date of this
Indenture or Incurred in compliance with this Indenture (including Indebtedness
of the Company that refinances Indebtedness of any Restricted Subsidiary and
Indebtedness of any Restricted Subsidiary that refinances Indebtedness of
another Restricted Subsidiary) including Indebtedness that refinances
Refinancing Indebtedness; provided, however, that (i) the Refinancing
Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the
Indebtedness being refinanced, (ii) the 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, (iii) such
Refinancing Indebtedness is Incurred in an aggregate principal amount (or if
issued with original issue discount, an aggregate issue price) that is equal to
or less than the aggregate principal amount (or if issued with original issue
discount, the aggregate accreted value) then outstanding of the Indebtedness
being refinanced plus an amount necessary to pay any fees and expenses,
including premiums, relating to such refinancing and (iv) if the Indebtedness of
the Company or a Restricted Subsidiary being refinanced is subordinated to other
Indebtedness of the Company or a Restricted Subsidiary in any respect, such
Refinancing Indebtedness is subordinated at least to the same extent; provided
further, however, that Refinancing Indebtedness shall not include (a)
Indebtedness of a Subsidiary that refinances Indebtedness of the Company or (b)
Indebtedness of the Company or a Restricted Subsidiary that refinances
Indebtedness of an Unrestricted Subsidiary.

                  "Registration Rights Agreement" means (i) with respect to the
Initial Notes issued on the date hereof, the Registration Rights Agreement,
dated October 4, 2000, among the Company, the Guarantors and the Initial
Purchasers, as such agreement may be amended, modified, or supplemented from
time to time in accordance with the terms thereof and (ii) with

                                      -16-
<PAGE>   24

respect to any Additional Notes, any registration rights agreement entered into
among the Company, any Guarantors and the relevant initial purchasers or
underwriters, as the same may be amended, modified or supplemented from time to
time in accordance with the terms thereof.

                  "Related Business" means any business related, or
complementary (as determined in good faith by the Board of Directors), to the
business of the Company and the Restricted Subsidiaries on the Issue Date.

                  "Representative" means the trustee, agent or representative
(if any) for an issue of Senior Indebtedness.

                  "Restricted Investment" means any Investment other than a
Permitted Investment.

                  "Restricted Subsidiary" means (i) U.S.C. Europe N.V., (ii)
U.S.C. Europe Netherlands B.V., (iii) U.S.C. Holding U.K. Ltd., (iv) U.K. Can
Ltd., (v) U.S.C. Europe U.K. Ltd., (vi) U.S.C. Europe Italia, S.r.l., (vii)
U.S.C. France Holding, S.A.S., (viii) USC Aerosols France, S.A.S., (ix) USC May
Verpackungen Holding Inc., (x) U.S.C. Aerosoldosen Deutschland GmbH, (xi) U.S.C.
Can Espana Holding SCpA, (xii) U.S.C. Europe Espana SA, (xiii) May Verpackungen
GmbH & Co. KG, (xiv) Wilhelm Wessel Nachfl. Blechemballagenfabrik GmbH & Co. KG,
(xv) May Verpackungen Verwaltung GmbH, (xvi) May Can Company GmbH, (xvii)
Wessel-Emballagen GmbH, (xviii) any other direct or indirect Subsidiary of the
Company that is not designated by the Board of Directors to be an Unrestricted
Subsidiary and (xix) an Unrestricted Subsidiary that is redesignated as a
Restricted Subsidiary as permitted pursuant to the definition of "Unrestricted
Subsidiary."

                  "Sale/Leaseback Transaction" means an arrangement relating to
property now owned or hereafter acquired whereby the Company, the Parent
Guarantor or a Restricted Subsidiary transfers such property to a Person and the
Company, the Parent Guarantor or a Restricted Subsidiary leases it from such
Person.

                  "Securities" means the Initial Notes and any other securities
authenticated and delivered under this Indenture. For all purposes of this
Indenture, the term "Securities" shall include any Exchange Notes to be issued
and exchanged for any Initial Notes pursuant to a Registration Rights Agreement
and this Indenture. From and after the issuance of any Additional Notes (but not
for purposes of determining whether such issuance is permitted hereunder),
"Securities" shall include such Additional Notes for purposes of this Indenture
and all Exchange Notes from time to time issued with respect to any Initial
Notes that constitute such Additional Notes. All Securities, including any such
Additional Notes, shall vote together as one series of Securities under this
Indenture.

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

                  "Senior Indebtedness" means (i) all monetary obligations under
the Credit Agreement, including without limitation, obligations to pay principal
and interest, reimbursement obligations under letters of credit, fees, expenses
and indemnities under the Credit Agreement, and (ii) all Indebtedness of the
Company including interest thereon, whether outstanding on the

                                      -17-
<PAGE>   25

date of this Indenture or thereafter issued, created or incurred, unless in the
instrument creating or evidencing the same, or pursuant to which the same is
outstanding, it is provided that such obligations are not superior in right of
payment to the Securities; provided, however, that Senior Indebtedness shall not
include (i) any obligation of the Company to any Subsidiary, (ii) any liability
for federal, state, local, foreign or other taxes owed or owing by the Company,
(iii) any accounts payable or other liability to trade creditors arising in the
ordinary course of business (including Guarantees thereof or instruments
evidencing such liabilities), (iv) any Indebtedness, Guarantee or obligation of
the Company which is subordinate or junior in any respect to any other
Indebtedness, Guarantee or obligation of the Company, including any Senior
Subordinated Indebtedness and any Subordinated Obligations, (v) any obligations
with respect to any Capital Stock or (vi) any Indebtedness Incurred in violation
of this Indenture.

                  "Senior Indebtedness of the Guarantors" means all Indebtedness
of the Guarantors including interest thereon, whether outstanding on the date of
this Indenture or thereafter issued, unless in the instrument creating or
evidencing the same or pursuant to which the same is outstanding it is provided
that such obligations are not superior in right of payment to the Guarantees,
provided, however, that Senior Indebtedness of the Guarantors shall not include
(a) any obligation of the Guarantors to any Subsidiary, (b) any liability for
federal, state, local, foreign or other taxes owed or owing by the Guarantors,
(c) any accounts payable or other liability to trade creditors arising in the
ordinary course of business (including Guarantees thereof or instruments
evidencing such liabilities), (d) any Indebtedness, Guarantee or obligation of
the Guarantors that is subordinate or junior in any respect to any other
Indebtedness, Guarantee or obligation of the Guarantors, including Senior
Subordinated Indebtedness of the Guarantors and any Subordinated Obligations,
(e) any obligations with respect to any Capital Stock or (f) any Indebtedness
Incurred in violation of this Indenture.

                  "Senior Subordinated Indebtedness" means the Securities and
any other Indebtedness of the Company that specifically provides that such
Indebtedness is to rank pari passu with the Securities and is not subordinated
by its terms to any Indebtedness or other obligation of the Company which is not
Senior Indebtedness.

                  "Senior Subordinated Indebtedness of the Guarantors" means (i)
the Guarantees and (ii) any other Indebtedness of the Guarantors that
specifically provides that such Indebtedness is to rank pari passu with the
Guarantees and is not subordinated by its terms to any Indebtedness or other
obligation of the Guarantors which is not Senior Indebtedness of the Guarantors.

                  "Stated Maturity" means, with respect to any security, the
date specified in such security as the fixed date on which the 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).

                  "Stockholder Agreement" means that certain Stockholder
Agreement by and among the common equity stockholders of the Parent Guarantor,
including the Permitted Holders, certain management investors and the other
Persons listed therein, as in effect on the date of this Indenture.

                                      -18-
<PAGE>   26

                  "Subordinated Obligation" means (i) any Indebtedness of the
Company (whether outstanding on the date of this Indenture or thereafter
Incurred) which is subordinate or junior in right of payment to the Securities
or (ii) any Indebtedness of the Guarantors (whether outstanding on the date of
this Indenture or thereafter Incurred) which is subordinate or junior in right
of payment to the Guarantees or (iii) any Disqualified Stock of the Company or
the Guarantors.

                  "Subsidiary" or "subsidiary" of any specified Person means any
corporation, partnership, joint venture, association or other business entity,
whether now existing or hereafter organized or acquired, (i) in the case of a
corporation, of which at least 50% of the total voting power of the Voting Stock
is held by such first-named Person or any of its Subsidiaries and such
first-named Person or any of its Subsidiaries has the power to direct the
management, policies and affairs thereof; or (ii) in the case of a partnership,
joint venture, association, or other business entity, with respect to which such
first-named Person or any of its Subsidiaries has the power to direct or cause
the direction of the management and policies of such entity by contract or
otherwise if in accordance with GAAP such entity is consolidated with the
first-named Person for financial statement purposes.

                  "Subsidiary Guarantors" means (i) USC May Verpackungen Holding
Inc. and (ii) each Domestic Restricted Subsidiary that in the future executes a
supplemental indenture in which such Subsidiary agrees to be bound by the terms
of this Indenture as a Subsidiary Guarantor, provided that any Person
constituting a Subsidiary Guarantor as described above shall cease to constitute
a Subsidiary Guarantor when its respective Subsidiary Guarantee is released in
accordance with the terms of this Indenture.

                  "Temporary Cash Investments" means any of the following: (i)
investments in U.S. Government Obligations maturing within one year of the date
of acquisition thereof, (ii) investments in time deposit accounts, certificates
of deposit and money market deposits maturing within one year 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 or any state thereof having capital,
surplus and undivided profits aggregating in excess of $500.0 million and whose
long-term debt is rated "A-3" or A- or higher according to Moody's Investors
Service, Inc. or Standard and Poor's (or such similar equivalent rating by at
least one "nationally recognized statistical rating organization" (as defined in
Rule 436 under the Securities Act)), (iii) repurchase obligations with a term of
not more than 7 days for underlying securities of the types described in clause
(i) above entered into with a bank meeting the qualifications described in
clause (ii) above, (iv) investments in commercial paper, maturing not more than
six months after the date of acquisition, issued by a corporation (other than an
Affiliate of the Company) organized and in existence under the laws of 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 and (v) mutual funds
whose assets consist primarily of Investments of the type described in clauses
(i) through (iv) above.

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. Section
77aaa-77bbbb) as in effect on the date of this Indenture; provided, however,
that, in the event the Trust Indenture Act of 1939 is amended after such date,
"TIA" means, to the extent required by any such amendment, the Trust Indenture
Act of 1939, as may be amended from time to time.

                                      -19-
<PAGE>   27

                  "Trade Payables" means, with respect to any Person, any
accounts payable or any indebtedness or monetary obligation to trade creditors
created, assumed or Guaranteed by such Person arising in the ordinary course of
business of such Person in connection with the acquisition of goods or services.

                  "Transactions" means the recapitalization of the Company and
the Parent Guarantor pursuant to which Pac Packaging Acquisition Corporation, a
Delaware corporation, was merged with and into the Parent Guarantor and the
financing transactions of the Company and the Parent Guarantor related thereto.

                  "Transfer Restricted Securities" means Securities that bear or
are required to bear the legend set forth in the third and fourth paragraphs of
Exhibit A hereto.

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

                  "Trust Officer" means the Chairman of the Board, the President
or any other officer or other representative 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 (i) any Subsidiary of the
Company that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors as permitted or required pursuant to
Section 4.09 and not thereafter redesignated as a Restricted Subsidiary as
permitted pursuant thereto and (ii) any Subsidiary of an Unrestricted
Subsidiary.

                  "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 or redeemable at the issuer's option.

                  "Voting Stock" of a corporation means all classes of Capital
Stock of such corporation then outstanding and normally entitled to vote in the
election of directors.

                  "Wholly Owned Subsidiary" means a Restricted Subsidiary of the
Company, all the Capital Stock of which (other than directors' qualifying
shares) is owned by the Company or another Wholly Owned Subsidiary.

                                      -20-
<PAGE>   28

                  SECTION 1.02. Other Definitions.

<TABLE>
<CAPTION>
TERM                                                                         DEFINED IN
                                                                               SECTION

<S>                                                                           <C>
"Bankruptcy Law"................................................................. 6.01
"Blockage Notice"............................................................... 10.03
"covenant defeasance option"..................................................... 8.01
"Custodian Funds"................................................................ 6.01
"Event of Default"............................................................... 6.01
"Excess Proceeds"................................................................ 4.06
"Exchange Notes".............................................................. Recital
"incorporated provision"........................................................ 12.01
"Initial Notes"............................................................... Recital
"legal defeasance option"........................................................ 8.01
"Legal Holiday"................................................................. 12.08
"Offer".......................................................................... 4.06
"Offer Date"..................................................................... 4.06
"Offer Period"................................................................... 4.06
"Offered Price".................................................................. 4.06
"Pari Passu Debt Amount"......................................................... 4.06
"Pari Passu Offer"............................................................... 4.06
"pay the Securities"............................................................ 10.03
"Paying Agent"................................................................... 2.03
"Payment Blockage Period"....................................................... 10.03
"Purchase Date".................................................................. 4.06
"Redemption Account"............................................................. 4.16
"Registrar"...................................................................... 2.03
"Reports"........................................................................ 4.06
"Restricted Payment"............................................................. 4.04
"Security Amount"................................................................ 4.06
"Subsidiary Guaranties"......................................................... 11.01
"Subsidiary Guarantors Blockage Notice"......................................... 11.05
"Subsidiary Guarantors Payment Blockage Period"................................. 11.05
"Surviving Entity"............................................................... 5.01
</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:

                  "indenture securities" means the Securities.

                  "indenture security holder" means a Holder.

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" or "institutional trustee" means the
Trustee.

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

                                      -21-
<PAGE>   29

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

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

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

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

                           (iii) "or" is not exclusive;

                           (iv) "including" means including without limitation;

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

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

                           (vii) 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 and accretion of principal on
                           such security shall not be deemed to be the
                           Incurrence of Indebtedness but shall be included in
                           Consolidated Interest Expense; and

                           (viii) the principal amount of any Preferred Stock
                           shall be the greater of (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.

                                   ARTICLE 2

                                 THE SECURITIES

                  SECTION 2.01. Form and Dating. The Initial Notes and the
Trustee's certificate of authentication shall be substantially in the form of
Exhibit A which is hereby incorporated in and expressly made a part of this
Indenture. The Exchange Notes and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit B, 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

                                      -22-
<PAGE>   30

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 Exhibit A and
Exhibit B are part of the terms of this Indenture. Any Additional Securities
shall be issued in the form of either (i) Exhibit A, if such Security is a
Transfer Restricted Security, or (ii) Exhibit B, if such Security is not a
Transfer Restricted Security.

                  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.

                  At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities; and the Trustee in accordance
with such Company Order shall authenticate and deliver such Securities as
provided in this Indenture and not otherwise.

                  The Trustee shall authenticate and make available for delivery
upon a Company Order (i) Initial Notes for original issue on the date hereof in
an aggregate principal amount of $175,000,000, (ii) subject to Section 4.03,
Additional Notes in an aggregate principal amount of up to $100,000,000 and
(iii) Exchange Notes for issue only pursuant to a Registration Rights Agreement
and for Initial Notes for a like principal amount of Initial Notes exchanged
pursuant thereto. Such Company Order shall specify the amount of the Securities
to be authenticated, the date on which the original issue of Securities is to be
authenticated and whether the Securities are to be Initial Notes, Additional
Notes or Exchange Notes. The aggregate principal amount of Securities
outstanding at any time may not exceed $275,000,000, except as provided in
Section 2.06.

                  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; provided, however, that so long as Bank One Trust Company, N.A. shall be
the Trustee,

                                      -23-
<PAGE>   31

without the consent of the Trustee, there shall be no more than one Registrar or
Paying Agent. The term "Paying Agent" includes any additional paying agent.

                  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 of its domestically incorporated Wholly Owned Subsidiaries may
act as Paying Agent, Registrar, co-registrar or transfer agent.

                  The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents, and the Company may
require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Registrar is not required to transfer or exchange any Security
selected for redemption, or any Security for a period of 15 days before a
selection of Securities to be redeemed, or any Security for a period of 15 days
before an interest payment date. The Holder of a Security may be treated as the
owner of such Security for all purposes.

                  No service charge shall be made for any registration of
transfer of Securities, but the Company may require payment of a sum sufficient
to cover any transfer tax or other similar governmental charge payable in
connection therewith.

                  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. Prior to
each due date of the principal 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 Holders 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, the Paying Agent shall have no further liability for the money
delivered to the Trustee.

                  SECTION 2.05. Holder 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 Holders. 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 Holders.

                                      -24-
<PAGE>   32

                  SECTION 2.06. 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 2.07. 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 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 2.06, 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, in which
event the replacement Security shall cease to be outstanding, subject to the
provisions of Section 8-405 of the Uniform Commercial Code.

                  If the principal amount of any Security is considered paid
under Section 4.01 hereof, it shall cease to be outstanding on such date and
interest on the Security shall cease to accrue.

                  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 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
Holders 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 2.08. 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 2.09. 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

                                      -25-
<PAGE>   33

cancellation and deliver a certificate of such destruction 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 2.10. 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
Holders 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 Holder a notice that
states the special record date, the payment date and the amount of defaulted
interest to be paid.

                  SECTION 2.11. CUSIP Numbers. The Company, in issuing the
Securities, shall use "CUSIP" numbers, and 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.

                  SECTION 2.12. Securities Depository. In order to facilitate
the transfer of the Securities by book entry, the Securities may be registered
in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC")
(or such other nominee as DTC shall specify from time to time). Prior to such
registration, the Company and the Trustee will execute and deliver a Letter of
Representations to DTC (as may be in effect from time to time, the "Letter of
Representations"). All payments of principal of, redemption premium, if any, and
interest on the Securities so registered in the name of DTC's nominee and all
notices with respect thereto, including notices of full or partial redemption,
shall be made and given at the times and in the manner set forth in the Letter
of Representations. The terms and provisions of the Letter of Representations
shall govern the procedures for payment on and redemption of Securities in the
event of any inconsistency between the provisions of this Indenture and the
Letter of Representations; provided, however, that the terms and provisions of
the Letter of Representations shall in no manner affect the rights of Holders to
receive any payments of principal of, redemption premium, if any, and interest
on the Securities.

                  The book-entry registration system for all or a portion of the
Securities may be terminated and certificates delivered to and registered in the
name of the beneficial owners of the Securities, under either of the following
circumstances:

                  (i)      DTC notifies the Company that it is no longer willing
                           or able to act as securities depository for the
                           Securities or has ceased to be a clearing agency
                           under the Exchange Act, and in either event the
                           Company thereupon fails to appoint a successor
                           depository; or

                  (ii)     the Company in its sole discretion elects to cause
                           the issuance of the Securities in certificated form.

                                      -26-
<PAGE>   34

                  In the event a successor securities depository is appointed by
the Company, the Securities will be registered in the name of such successor
securities depository or its nominee. In the event certificates are required to
be issued to beneficial owners, the Company and the Trustee shall be fully
protected in relying upon a certificate of DTC or any DTC participant as to the
identity of and the principal amount of Securities held by such beneficial
owners.

                                   ARTICLE 3

                                   REDEMPTION

                  SECTION 3.01. Notices to Trustee. If the Company elects to
redeem Securities pursuant to paragraph 6 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 at least 45 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 considers 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 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. If fewer than all the Securities are to be redeemed with the
proceeds of a Public Equity Offering, the Trustee shall select the Securities to
be redeemed pro rata, or nearly pro rata as is practicable, unless such method
is prohibited. 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.

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

                           (i) the redemption date;

                           (ii) the redemption price;

                                      -27-
<PAGE>   35

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

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

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

                           (vi) 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

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

                  At the Company's written 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 at least 45 days before the redemption date.

                  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.
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.

                  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.

                  SECTION 3.07. Optional Redemption.

                           (i) Except as set forth in clause (ii) of this
                           Section 3.07, the Company shall not have the option
                           to redeem the Securities pursuant to

                                      -28-
<PAGE>   36

                           this Section 3.07 prior to October 1, 2005. On and
                           after such date, the Company shall have the option to
                           redeem the Securities, in whole at any time or in
                           part from time to time, at the redemption prices
                           (expressed as percentages of principal amount) set
                           forth below plus accrued and unpaid interest thereon,
                           if any, through the applicable redemption date
                           (subject to the right of Holders of record on the
                           relevant Record Date to receive interest on the
                           relevant interest payment date), if redeemed during
                           the twelve-month period beginning on October 1, of
                           the years indicated below:

<TABLE>
<CAPTION>
                  Year                                    Percentage
                  ----                                    ----------
                  <S>                                     <C>
                  2005                                    106.188%
                  2006                                    104.125%
                  2007                                    102.063%
                  2008 and thereafter                     100.000%
</TABLE>

                           (ii) Notwithstanding the provisions of clause (i) of
                           this Section 3.07, at any time on or prior October 1,
                           2003, the Company shall have the option to redeem,
                           with the net cash proceeds to the Company from one or
                           more Public Equity Offerings, up to 35% of the
                           aggregate principal amount of Securities at a
                           redemption price equal to 112.375% of the aggregate
                           principal amount thereof plus accrued and unpaid
                           interest, if any, through the redemption date;
                           provided that at least 65% of the aggregate principal
                           amount of Securities remains outstanding immediately
                           after the occurrence of such redemption and provided
                           further, that such redemption occurs within not more
                           than 180 days after the date of the closing of such
                           Public Equity Offering.

                           (iii) Any redemption pursuant to this Section 3.07
                           shall be made pursuant to the provisions of Section
                           3.01 through 3.06 hereof.

                                   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 due on such due
date. 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 Holders 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.

                                      -29-
<PAGE>   37

                  SECTION 4.02. Commission Reports. The Company shall file with
the Trustee and provide Holders at the Company's expense, within 15 days after
it files them with the Commission, copies of the Company's annual, quarterly and
other reports, documents and information that the Company is required to file
with the Commission pursuant to Sections 13 or 15(d) of the Exchange Act.
Notwithstanding that the Company may not be subject to the reporting
requirements of Sections 13 or 15(d) of the Exchange Act, the Company shall file
with the Commission, to the extent permitted, and provide the Trustee and
Holders with the annual, quarterly and other reports, documents and information
specified in Sections 13 and 15(d) of the Exchange Act. The Company shall comply
with the other provisions of Section 314(a) of the TIA.

                  SECTION 4.03. Limitation on Indebtedness. The Company shall
not, and shall not permit any Restricted Subsidiary to, directly or indirectly,
Incur any Indebtedness, unless such Indebtedness is Permitted Indebtedness.

                  SECTION 4.04. Limitation on Restricted Payments.

                           (i) The Company shall not, and shall not permit any
                           Restricted Subsidiary to, directly or indirectly (a)
                           declare or pay any dividend on, or make any
                           distribution in respect of, any Capital Stock of the
                           Company or the Parent Guarantor, as the case may be,
                           except for dividends or distributions payable solely
                           in Capital Stock (other than Disqualified Stock), of
                           the Company or the Parent Guarantor, as the case may
                           be; (b) purchase, redeem, retire or acquire for value
                           any Capital Stock of the Company, the Parent
                           Guarantor or any Subsidiary of the Company or the
                           Parent Guarantor (other than a Restricted
                           Subsidiary); (c) purchase, repurchase, redeem,
                           defease or acquire for value, prior to scheduled
                           maturity, scheduled repayment or scheduled sinking
                           fund payment, any Subordinated Obligation; or (d)
                           make any Investment (other than Permitted
                           Investments) in any Person, (any such dividend,
                           distribution, purchase, redemption, repurchase,
                           defeasance, other acquisition, retirement or
                           Investment being herein referred to as a "Restricted
                           Payment") if at the time of and after giving effect
                           to the proposed Restricted Payment:

                  (1) any Default or Event of Default has occurred and is
         continuing;

                  (2) the Company could not Incur at least $1.00 of additional
         Indebtedness pursuant to clause (i) of the definition of Permitted
         Indebtedness; or

                  (3) the aggregate amount expended or declared for all
         Restricted Payments after the Issue Date exceeds (without duplication)
         the sum of:

                           (A) 50% of the Consolidated Net Income accrued during
                  the period (treated as one accounting period) from the first
                  day of the fiscal quarter in which

                                      -30-
<PAGE>   38

                  the Issue Date occurs to the end of the most recent fiscal
                  quarter ending at least 30 days prior to the date of such
                  Restricted Payment (or, in case such Consolidated Net Income
                  shall be a deficit, minus 100% of such deficit);

                           (B) 100% of the aggregate Net Cash Proceeds plus the
                  Fair Market Value of property other than cash received by the
                  Company from the issuance or sale of its respective Capital
                  Stock (excluding the issuance or sale of Disqualified Stock)
                  subsequent to the Issue Date (other than an issuance or a sale
                  to a Subsidiary of the Company or an employee stock ownership
                  plan or trust);

                           (C) the amount by which Indebtedness of the Company
                  or the Restricted Subsidiaries is reduced on the Company's
                  balance sheet upon the conversion or exchange (other than by a
                  Subsidiary) subsequent to the Issue Date, of any Indebtedness
                  of the Company or the Restricted Subsidiaries that is
                  convertible or exchangeable, or is exchanged, for Capital
                  Stock (other than Disqualified Stock) of the Company;

                           (D) an amount equal to the net reduction in
                  Investments resulting from dividends, distributions,
                  repayments of loans or advances or other transfers of assets
                  (to the extent not included in Consolidated Net Income), in
                  each case, to the Company or any Restricted Subsidiary, not to
                  exceed the amount of Investments previously made that were
                  included as Restricted Payments; and

                           (E) 50% of the gain realized by the Company or any
                  Restricted Subsidiary from the cash sale (other than to the
                  Company or a Restricted Subsidiary) of Restricted Investments
                  made by the Company or any Restricted Subsidiary after
                  issuance of the Initial Notes on the date hereof to the extent
                  not included in Consolidated Net Income.

                           (ii) The provisions of Section 4.04(i) shall not
                           prevent the Company or a Restricted Subsidiary from:

                                    (a) paying a dividend on its Capital Stock
                  within 60 days after the declaration thereof, if, on the
                  declaration date, the Company could have paid such dividend in
                  compliance with this Indenture;

                                    (b) redeeming, repurchasing, defeasing,
                  acquiring or retiring for value, Subordinated Obligations in
                  exchange for or from proceeds of Refinancing Indebtedness
                  permitted by clause (viii) of the definition of Permitted
                  Indebtedness;

                                    (c) acquiring, redeeming or retiring Capital
                  Stock or Subordinated Obligations of the Company in exchange
                  for, or in connection with a substantially concurrent issuance
                  of, Capital Stock (other than Disqualified Stock) of the
                  Company;

                                    (d) repurchasing or redeeming (or paying a
                  dividend to the Parent Guarantor to enable the Parent
                  Guarantor to purchase or redeem) shares of, or options to
                  purchase shares of,

                                      -31-
<PAGE>   39

                  Capital Stock of the Company or the Parent Guarantor or stock
                  appreciation rights from officers, directors and employees (or
                  the heirs of such persons) of the Company, the Parent
                  Guarantor or any Restricted Subsidiary whose employment has
                  terminated or who have died or retired or become disabled or
                  upon the vesting of stock appreciation rights, so long as the
                  aggregate amount of such payments in any fiscal year does not
                  exceed the sum of (i) $2.5 million plus (ii) the proceeds of
                  any "key man" life insurance policies purchased by the Company
                  for the specific purpose of making such repurchases or
                  redemptions, it being understood that the cancellation of
                  Indebtedness owed by management to the Company in connection
                  with such repurchase or redemption shall not be deemed to be a
                  Restricted Payment;

                                    (e) any purchase of Subordinated Obligations
                  from Excess Proceeds remaining after an Offer made pursuant to
                  Section 4.06 to the extent permitted to be used for general
                  corporate purposes;

                                    (f) cash dividends or advances to the Parent
                  Guarantor in amounts equal to (i) the amounts required for the
                  Parent Guarantor to pay any Federal, state or local income
                  taxes to the extent that such income taxes are attributable to
                  the income of the Company and its Subsidiaries, (ii) the
                  amounts required for the Parent Guarantor to pay franchise
                  taxes and other fees required to maintain its legal existence,
                  (iii) an amount not to exceed $200,000 in any fiscal year to
                  permit the Parent Guarantor to pay corporate overhead expenses
                  incurred in the ordinary course of business, (iv) on or about
                  the Issue Date the amount required to enable the Parent
                  Guarantor to repay the 10 1/8% Notes and to enable the Parent
                  Guarantor to make the payments due under the Recapitalization
                  Agreement; and (v) reasonable and customary costs and expenses
                  incident to a public offering of the common stock of the
                  Parent Guarantor to the extent that the proceeds therefrom are
                  intended to be contributed to the Company;

                                    (g) repurchases of Capital Stock deemed to
                  occur upon the exercise of employee stock options if such
                  Capital Stock is surrendered in lieu of the exercise price
                  thereof;

                                    (h) the payment of any dividend by a
                  Restricted Subsidiary of the Company to the holders of its
                  equity interests on a pro rata basis; and

                                    (i) so long as no Event of Default shall
                  have occurred and be continuing, other Restricted Payments not
                  otherwise permitted pursuant to this covenant up to $10.0
                  million in the aggregate.

                           (iii) Proceeds of Capital Stock used to make
                           Restricted Payments described in Section 4.04(ii)(c)
                           shall not increase the amount available for
                           Restricted Payments. The Restricted Payments made
                           pursuant to Sections 4.04(ii)(b), (c), (d)(ii), (e),
                           (f), (g), (h) and (i) shall not be included in the
                           calculation of subsequent Restricted Payments.
                           Restricted

                                      -32-
<PAGE>   40

                           Payments made pursuant to Sections 4.04(ii)(a) and
                           (d)(i) shall be included in the calculation of
                           subsequent Restricted Payments.

                  SECTION 4.05. Limitation on Dividends and Other Payment
Restrictions Affecting Restricted Subsidiaries.

                           (i) The Company shall not, and shall not permit any
                           Restricted Subsidiary to, directly or indirectly,
                           cause to exist or become effective or enter into any
                           encumbrance or restriction (other than pursuant to
                           law or regulation) on the ability of any Restricted
                           Subsidiary (a) to pay dividends or make any other
                           distributions in respect of its Capital Stock or pay
                           any debt or other obligation owed to the Company or
                           any other Restricted Subsidiary; (b) to make loans or
                           advances to the Company or any other Restricted
                           Subsidiary; or (c) to transfer any of its property or
                           assets to the Company or any other Restricted
                           Subsidiary.

                           (ii) The provisions of Section 4.05(i) shall not
                           apply: (a) with respect to Sections 4.05(i)(a), (b)
                           and (c), to encumbrances and restrictions (1) in
                           existence under or by reason of any agreements (not
                           otherwise described in clause (3) below) in effect on
                           the Issue Date; (2) relating to Indebtedness of a
                           Restricted Subsidiary and existing at such Restricted
                           Subsidiary at the time it became a Restricted
                           Subsidiary if such encumbrance or restriction was not
                           created in connection with or in anticipation of the
                           transaction or series of related transactions
                           pursuant to which such Restricted Subsidiary became a
                           Restricted Subsidiary or was acquired by the Company;
                           (3) pursuant to the Credit Agreement, provided that
                           such restrictions or encumbrances are not more
                           restrictive with respect to dividend and other
                           payment restrictions than those contained in the
                           Credit Agreement as in effect on the Issue Date; (4)
                           pursuant to the Indenture and the Securities; (5)
                           which result from the renewal, refinancing, extension
                           or amendment of an agreement referred to in Sections
                           4.05(ii)(a)(1), (2) and (6) and in Sections
                           4.05(ii)(b)(1) and (2), provided that such
                           encumbrances or restrictions, when taken as a whole,
                           are no more restrictive to such Restricted Subsidiary
                           and are not materially less favorable to the Holders
                           than those under or pursuant to the agreement
                           evidencing the Indebtedness so extended, renewed,
                           refinanced or replaced; or (6) relating to
                           Refinancing Indebtedness Incurred pursuant to the
                           definition of Permitted Indebtedness; and (b) with
                           respect to Section 4.05(i)(c) only, to (1) any
                           encumbrance or restriction relating to Indebtedness
                           that is permitted to be Incurred and secured pursuant
                           to Sections 4.03 and 4.13 that limits the right of
                           the debtor to dispose of the assets or property
                           securing such Indebtedness; (2) any encumbrance or
                           restriction in connection with an acquisition of
                           property, so long as such encumbrance or restriction
                           relates solely to the property so acquired and was
                           not created in connection with or in anticipation of
                           such acquisition; (3) customary non-assignment and
                           non-transfer provisions in leases,

                                      -33-
<PAGE>   41

                           contracts or licenses entered into in the ordinary
                           course of business; (4) customary restrictions
                           contained in asset sale agreements limiting the
                           transfer of such assets pending the closing of such
                           sale; (5) Liens permitted pursuant to Section 4.13
                           and restrictions in the agreements creating such
                           Liens; (6) any agreement or instrument governing
                           Indebtedness of a Foreign Subsidiary now or hereafter
                           outstanding if it constitutes Permitted Indebtedness,
                           and (7) any amendments to any of the foregoing that,
                           when taken as a whole, are not more restrictive than
                           those contained in the agreement being amended.

                  SECTION 4.06. Limitation on Asset Dispositions.

                           (i) The Company shall not, and shall not permit any
                           Restricted Subsidiary to, make any Asset Disposition
                           unless (a) the Company or such Restricted Subsidiary
                           receives consideration at the time of such Asset
                           Disposition at least equal to the Fair Market Value
                           of the shares and assets subject to such Asset
                           Disposition; (b) at least 75% of the consideration
                           thereof received by the Company or such Restricted
                           Subsidiary is in the form of cash or cash
                           equivalents, provided, however, that any securities
                           or notes received by the Company or such Restricted
                           Subsidiary in connection with such Asset Disposition
                           that are converted by the Company or such Restricted
                           Subsidiary into cash or cash equivalents within 10
                           business days of the date of such Asset Disposition
                           shall be deemed to be cash equivalents; (c) the
                           Company delivers an Officers' Certificate to the
                           Trustee certifying that such Asset Disposition
                           complies with subclauses (a) and (b); and (d) an
                           amount equal to 100% of the Net Available Cash from
                           such Asset Disposition is applied by the Company (or
                           such Restricted Subsidiary) (1) first, to the extent
                           the Company elects (or is required by the terms of
                           any Senior Indebtedness), to prepay, repay or
                           purchase Senior Indebtedness or Senior Indebtedness
                           of the Subsidiary Guarantors (in each case, other
                           than Indebtedness owed to the Company or an Affiliate
                           of the Company) or, if the Asset Disposition is made
                           by a Foreign Restricted Subsidiary, Senior
                           Indebtedness of a Foreign Restricted Subsidiary,
                           within 270 days from the later of the date of such
                           Asset Disposition or the receipt of such Net
                           Available Cash; provided, however, that in connection
                           with any prepayment, repayment or purchase of
                           Indebtedness pursuant to this subclause (1), the
                           Company or such restricted Subsidiary will retire
                           such Indebtedness and will cause the related loan
                           commitment, if any, to be permanently reduced in an
                           amount equal to the principal amount so prepaid,
                           repaid or purchased; (2) second, to the extent of the
                           balance of Net Available Cash after application in
                           accordance with sub-subclause (1), to the extent the
                           Company or such Restricted Subsidiary elects, to
                           reinvest in Additional Assets (including by means of
                           an Investment in Additional Assets by the Company or
                           a Restricted Subsidiary with Net Available Cash
                           received by the Company or another Restricted
                           Subsidiary) within 270 days from the later of such
                           Asset Disposition or the

                                      -34-
<PAGE>   42

                           receipt of such Net Available Cash; and (3) third, to
                           the extent of the balance of such Net Available Cash
                           after application in accordance with sub-subclauses
                           (1) and (2) (which balance constitutes "Excess
                           Proceeds"), to make an Offer (as defined in the next
                           paragraph) to purchase Securities pursuant to and
                           subject to the conditions of the following paragraph.
                           Pending application of Net Available Cash pursuant to
                           this provision, such Net Available Cash shall be
                           invested in Temporary Cash Investments or used to
                           reduce revolving credit borrowings of Senior
                           Indebtedness.

                           (ii) When the aggregate amount of Excess Proceeds
                           exceeds $15 million, the Company shall apply the
                           Excess Proceeds to the repayment of the Securities
                           pursuant to an offer to purchase (an "Offer") from
                           all holders of the Securities in accordance with the
                           procedures set forth in this Indenture in the
                           principal amount (expressed as a multiple of $1,000)
                           of Securities that may be purchased out of an amount
                           (the "Security Amount") equal to such Excess
                           Proceeds. The offer price for the Securities shall be
                           payable in cash in an amount equal to 100% of the
                           principal amount of the Securities plus accrued and
                           unpaid interest, if any, to the date (the "Offer
                           Date") such Offer is consummated (the "Offered
                           Price"), in accordance with the procedures set forth
                           in this Indenture. To the extent that the aggregate
                           Offered Price of the Securities tendered pursuant to
                           the Offer is less than the Security Amount relating
                           thereto, the Company may use any remaining Excess
                           Proceeds for general corporate purposes. If the
                           aggregate principal amount of Securities surrendered
                           by holders thereof exceeds the amount of Excess
                           Proceeds, the Trustee shall select the Securities to
                           be purchased on a pro rata basis. Upon the completion
                           of the purchase of all the Securities tendered
                           pursuant to an Offer, the amount of Excess Proceeds,
                           if any, shall be reset at zero.

                           (iii)(a) Within 10 days after the Company becomes
                           obligated to make an Offer, the Company shall deliver
                           to the Trustee and mail to each Holder a written
                           notice of its Offer to purchase Securities, in whole
                           or in part, (subject to proration as hereinafter
                           described in the event the Offer is oversubscribed)
                           in integral multiples of $1,000 of principal amount,
                           at the applicable purchase price. The notice shall
                           specify a purchase date not less than 30 days nor
                           more than 60 days after the date of such notice (the
                           "Purchase Date") and all instructions and materials
                           necessary to tender Securities pursuant to the Offer,
                           together with the information contained in Section
                           4.06(iii)(b).

                                    (b) Not later than the date upon which
                                    written notice of an Offer is delivered to
                                    the Trustee as provided below, the Company
                                    shall deliver to the Trustee an Officers'
                                    Certificate as to (i) the Offered Price,
                                    (ii) the allocation of the Net Available
                                    Cash from the Asset Dispositions pursuant to
                                    which such Offer is being made

                                      -35-
<PAGE>   43

                                    and (iii) the compliance of such allocation
                                    with the provisions of this Indenture. On
                                    such date, the Company shall also
                                    irrevocably deposit with the Trustee or with
                                    a Paying Agent (or, if the Company is acting
                                    as its own Paying Agent, segregate and hold
                                    in trust) in Temporary Cash Investments an
                                    amount equal to the Offered Price to be held
                                    for payment in accordance with the
                                    provisions of this Indenture.

                                    (c) If the terms of any outstanding pari
                                    passu Indebtedness require the Company to
                                    make a similar offer to purchase to all
                                    holders of such pari passu Indebtedness with
                                    the proceeds from any Asset Disposition, the
                                    Excess Proceeds available to fund an Offer
                                    to the Holders of Securities shall be
                                    reduced on a pro rata basis to reflect the
                                    Company's offer to purchase obligation under
                                    such pari passu Indebtedness.

                                    (d) 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 4.06. To the extent that the
                                    provisions of any securities laws or
                                    regulations conflict with the provisions of
                                    this Section 4.06, the Company shall comply
                                    with the applicable securities laws and
                                    regulations and shall not be deemed to have
                                    breached its obligations under this Section
                                    4.06 by virtue thereof.

                  SECTION 4.07. Limitation on Transactions with Affiliates.

                           (i) The Company shall not, and shall not permit any
                           Restricted Subsidiary to, directly or indirectly,
                           conduct any business or enter into any transaction or
                           series of related transactions with or for the
                           benefit of any Affiliate, unless (a) the terms of
                           such transaction or series of related transactions
                           are (1) set forth in writing and (2) no less
                           favorable to the Company or such Restricted
                           Subsidiary than those that could reasonably be
                           obtained at such time in a comparable arm's length
                           transaction with an unrelated third party; (b) with
                           respect to a transaction or series of related
                           transactions involving aggregate payments or value in
                           excess of $3.0 million, the Board of Directors
                           (including a majority of the Disinterested Directors
                           thereof) approves such transaction or series of
                           related transactions and, in its good faith judgment,
                           believes that such transaction or series of related
                           transactions complies with Section 4.07(i)(a), as
                           evidenced by a Certified Resolution delivered to the
                           Trustee; and (c) with respect to a transaction or
                           series of related transactions

                                      -36-
<PAGE>   44

                           involving aggregate payments or value in excess of
                           $15.0 million, the Company shall, prior to the
                           consummation thereof, obtain a written opinion of a
                           nationally recognized accounting, appraisal or
                           investment banking firm stating that the transaction
                           is fair to the Company or such Restricted Subsidiary
                           from a financial point of view and file the same with
                           the Trustee.

                           (ii) Section 4.07(i) shall not prohibit (a) any
                           Restricted Payment permitted to be paid pursuant to
                           Section 4.04, (b) any issuance of securities, 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
                           (including a majority of the Disinterested Directors
                           thereof), (c) any transaction pursuant to any
                           agreement in existence on the Issue Date or any
                           amendment or replacement thereof that, taken in its
                           entirety, is no less favorable to the Company than
                           the agreement as in effect on the Issue Date, (d)
                           loans or advances to employees in the ordinary course
                           of business of the Company, not to exceed $1.0
                           million per employee and $3.0 million in the
                           aggregate, (e) the payment of indemnities provided
                           for by the Company's charter, by-laws and written
                           agreements and reasonable fees to directors of the
                           Company, the Parent Guarantor and the Restricted
                           Subsidiaries who are not employees of the Company,
                           the Parent Guarantor or the Restricted Subsidiaries,
                           (f) any transaction between the Company and a
                           Restricted Subsidiary or between Restricted
                           Subsidiaries, (g) the making of payments to Salomon
                           Smith Barney Inc. or its Affiliates for investment
                           banking or other financial services, (h) fees,
                           compensation, and indemnities under employment
                           arrangements entered into by the Company or its
                           Restricted Subsidiaries in the ordinary course of
                           business, and (I) issuance of Capital Stock (other
                           than Disqualified Stock) of the Company and the
                           granting of registration rights with respect thereto.

                  SECTION 4.08. Change of Control.

                           (i) Upon a Change of Control, each Holder shall have
                           the right to require that the Company repurchase all
                           or any part of such Holder's Securities at a
                           repurchase price in cash equal to 101% of the
                           principal amount thereof plus accrued and unpaid
                           interest thereon, if any, through the date of
                           repurchase. In the event that at the time of such
                           Change of Control the terms of the Bank Indebtedness
                           or other Senior Indebtedness restrict or prohibit the
                           repurchase of Securities pursuant to this Section
                           4.08, then prior to the mailing of the notice to
                           Holders provided for Section 4.08(ii) below, but in
                           any event within 30 days following any Change of
                           Control, the Company covenants to (a) repay in full
                           all Bank Indebtedness or such other Senior
                           Indebtedness to the extent required to permit the
                           repurchase of Securities pursuant to this provision
                           or (b) obtain the requisite consent under the
                           agreements governing the Bank Indebtedness or such
                           other Senior Indebtedness to permit the repurchase of
                           the Securities as provided for in Section 4.08(ii).

                                      -37-
<PAGE>   45

                           (ii) Within 30 days following any Change of Control,
                           the Company shall send, by first-class mail to each
                           Holder, a notice to each Holder with a copy to the
                           Trustee stating:

                                    (a) 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 plus accrued and unpaid interest
                                    thereon, if any, to the date of purchase;

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

                                    (c) the instructions determined by the
                                    Company, consistent with this Section 4.08,
                                    that a Holder must follow in order to have
                                    its Securities purchased, together with the
                                    information contained in Section 4.08(iii)
                                    (and including any related materials).

                           (iii) 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 five
                           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 three
                           Business Days 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 that was delivered for purchase by the
                           Holder and a statement that such Holder is
                           withdrawing its election to have such Security
                           purchased.

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

                           (v) 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 4.08. To the
                           extent that the provisions of any securities laws or
                           regulations conflict with the provisions of this
                           Section 4.08, the Company shall comply with the
                           applicable securities laws

                                      -38-
<PAGE>   46

                           and regulations and shall not be deemed to have
                           breached its obligations under this Section 4.08 by
                           virtue thereof.

                  SECTION 4.09. Designation of Restricted and Unrestricted
Subsidiaries. The Board of Directors may designate any Subsidiary of the Company
(including any newly acquired or newly formed Subsidiary of the Company) to be
an Unrestricted Subsidiary if (i) the Subsidiary to be so designated does not
own any Capital Stock or Indebtedness of, or own or hold any Lien on any
property of, the Company or any other Restricted Subsidiary, (ii) the Subsidiary
to be so designated is not obligated under any Indebtedness or other obligation
that, if in default, would result (with the passage of time or the giving of
notice or otherwise) in a default on any Indebtedness of the Company or any
Restricted Subsidiary and (iii) 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 as a
Restricted Payment. Unless so designated as an Unrestricted Subsidiary, any
Person that becomes a Subsidiary of the Company or of any Restricted Subsidiary
will be classified as a Restricted Subsidiary.

         Notwithstanding the foregoing sentence, the Board of Directors may
designate any Unrestricted Subsidiary to be a Restricted Subsidiary if,
immediately after giving pro forma effect to such designation, (i) the Company
could incur $1.00 of additional Indebtedness pursuant to clause (i) of the
definition of Permitted Indebtedness and (ii) 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 Certified
Resolution giving effect to such designation and an Officers' Certificate
certifying that such designation complies with this Section 4.09.

                  SECTION 4.10. Limitation on Layered Indebtedness.

                           (i) Each of the Company and the Parent Guarantor
                           shall not, and shall not permit any Restricted
                           Subsidiary to, directly or indirectly, Incur any
                           Indebtedness that is subordinate in right of payment
                           to any other Indebtedness of the Company, the Parent
                           Guarantor or such Restricted Subsidiary, as the case
                           may be, unless such Indebtedness is subordinate in
                           right of payment to, or ranks pari passu with, the
                           Securities in the case of the Company or the
                           Guarantees in the case of the Guarantors.

                           (ii) The Guarantors shall not, directly or
                           indirectly, Guarantee any Indebtedness of the Company
                           that is subordinated in right of payment to any other
                           Indebtedness of the Company unless such Guarantee is
                           subordinate in right of payment to, or ranks pari
                           passu with, the Guarantees.

                  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

                                      -39-
<PAGE>   47

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 Section 314(a)(4) of the TIA.

                  SECTION 4.12. Further Instruments and Acts. Upon request of
the Trustee, the Company will 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.

                  SECTION 4.13. Limitation on Liens. Each of the Company and the
Parent Guarantor shall not, and shall not permit any Restricted Subsidiary to,
directly or indirectly, Incur any Lien of any kind, other than Permitted Liens,
on or with respect to any property or assets now owned or hereafter acquired or
any interest therein or any income or profits therefrom to secure Indebtedness
that is subordinate in right of payment to, or ranks pari passu with, in the
case of the Company, the Securities, or, in the case of the Guarantors, the
Guarantees, unless the Securities are secured prior to (in the case of any
Indebtedness that is subordinated in right of payment), or equally and ratably
with (in the case of any Indebtedness that ranks pari passu), the Indebtedness
so secured.

                  SECTION 4.14. Future Subsidiary Guarantors. The Company shall
cause each Domestic Restricted Subsidiary created or acquired after the Issue
Date that has at any time a Fair Market Value of more than $500,000 to execute
and deliver to the Trustee a supplemental indenture pursuant to which such
Restricted Subsidiary will Guarantee payment of the Securities on the same terms
and conditions as those set forth in this Indenture; provided that the aggregate
Fair Market Value of Domestic Restricted Subsidiaries that are not Subsidiary
Guarantors shall not at any time exceed $1,500,000. Each Subsidiary Guarantee
will be limited in amount to an amount not to exceed the maximum amount that can
be Guaranteed by the applicable Subsidiary Guarantor without rendering such
Subsidiary Guarantee voidable under applicable law relating to fraudulent
conveyance or fraudulent transfer or similar laws affecting the rights of
creditors generally. Notwithstanding the foregoing, if any Foreign Restricted
Subsidiary shall Guarantee any Indebtedness of the Company, the Parent Guarantor
or any Domestic Subsidiary while the Securities are outstanding, then the
Company shall cause such Foreign Restricted Subsidiary to execute and deliver to
the Trustee a supplemental indenture pursuant to which such Foreign Restricted
Subsidiary will guarantee payment of the Securities on the same terms and
conditions as those set forth in this Indenture.

                                   ARTICLE 5

                                SURVIVING ENTITY

                  SECTION 5.01. Merger, Consolidation and Sale of Assets.

                           (i) The Company shall not, and shall not permit any
                           Restricted Subsidiary to, merge or consolidate with
                           or into any other entity or sell, convey, assign,
                           transfer, lease or otherwise dispose of all or
                           substantially all of the Company's assets (determined
                           on a consolidated

                                      -40-
<PAGE>   48

                           basis for the Company and the Restricted
                           Subsidiaries) unless (a) the entity formed by or
                           surviving any such consolidation or merger (if other
                           than the Company or such Restricted Subsidiary) or to
                           which such sale, transfer or conveyance is made (the
                           "Surviving Entity") shall be a corporation organized
                           and existing under the laws of the United States of
                           America (or any state thereof) and such corporation
                           expressly assumes, by supplemental indenture
                           satisfactory to the Trustee, all obligations of the
                           Company or such Restricted Subsidiary, as the case
                           may be, pursuant to this Indenture; (b) immediately
                           before and after giving effect to such transaction or
                           series of transactions on a pro forma basis, no
                           Default or Event of Default (and no event that, after
                           notice or lapse of time, or both, would become an
                           Event of Default) shall have occurred and be
                           continuing; (c) immediately after giving effect to
                           such transaction or series of transactions on a pro
                           forma basis (including, without limitation, any
                           Indebtedness Incurred or anticipated to be Incurred
                           in connection with such transaction or series of
                           transactions), the Company or the Surviving Entity,
                           as the case may be, would be able to Incur at least
                           $1.00 of additional debt pursuant to clause (i) of
                           the definition of Permitted Indebtedness; and (d) 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. Notwithstanding the foregoing, no
                           Subsidiary Guarantor shall merge or consolidate with
                           or into any other entity, or sell, convey, assign,
                           transfer, lease or otherwise dispose of all or
                           substantially all of its assets (other than to the
                           Company or another Subsidiary Guarantor), unless the
                           Company and its remaining Restricted Subsidiaries are
                           in compliance with Sections 5.01(i)(b), (c) and (d).

                           (ii) The Surviving Entity shall succeed to, and be
                           substituted for, and may exercise every right and
                           power of, the Company or such Restricted Subsidiary,
                           as the case may be, under this Indenture, but in the
                           case of a lease, the Company or such Restricted
                           Subsidiary, as the case may be, shall not be released
                           from the obligation to pay the principal of and
                           interest on the Notes.

                           (iii) Notwithstanding Sections 5.01(i)(b), (c) and
                           (d), any Domestic Restricted Subsidiary may
                           consolidate with, merge into or transfer all or part
                           of its properties and assets to the Company or any
                           other Domestic Restricted Subsidiary, and any Foreign
                           Restricted Subsidiary may consolidate with, merge
                           into or transfer all or part of its properties or
                           assets to (a) any other Foreign Restricted Subsidiary
                           or (b) the Company or any Domestic Restricted
                           Subsidiary, provided that the surviving company or
                           the transferee entity, as applicable, in such
                           consolidation, merger or transfer is the Company or
                           such Domestic Restricted Subsidiary.

                                      -41-
<PAGE>   49

                                   ARTICLE 6

                           DEFAULTS AND REMEDIES

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

                           (i) the Company and the Guarantors default in any
                           payment of interest on any Security when the same
                           becomes due and payable, and such default continues
                           for a period of 30 days;

                           (ii) the Company and the Guarantors (a) default in
                           the payment of the principal of any Security when the
                           same becomes due and payable at its Stated Maturity,
                           upon redemption, upon declaration of acceleration or
                           otherwise, or (b) fail to redeem or purchase
                           Securities when required pursuant to this Indenture
                           or the Securities;

                           (iii) the Company or any Restricted Subsidiary fails
                           to comply with the provisions of Section 5.01;

                           (iv) the Company, the Parent Guarantor or any
                           Restricted Subsidiary, as the case may be, fails to
                           comply with Sections 4.03, 4.04, 4.05, 4.06, 4.07,
                           4.08, 4.10, 4.13 or 4.14 (other than a failure to
                           purchase Securities when required under Section 4.06
                           or 4.08) of this Indenture and such failure continues
                           for 30 days after the notice specified in Section
                           6.02;

                           (v) the Company, the Parent Guarantor or any
                           Restricted Subsidiary fails to comply with any of its
                           agreements in the Securities or this Indenture (other
                           than those referred to in clauses (i), (ii), (iii) or
                           (iv) above) and such failure continues for 60 days
                           after the notice specified in Section 6.02;

                           (vi) the principal, any premium or accrued and unpaid
                           interest of Indebtedness of the Company, the Parent
                           Guarantor or any Restricted Subsidiary is not paid
                           within any applicable grace period after final
                           maturity or is accelerated by the holders thereof
                           because of a default, the total amount of such
                           Indebtedness unpaid or accelerated exceeds $10
                           million at the time and such default continues for 10
                           days;

                           (vii) the Company, any Guarantor or any Foreign
                           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; (d) makes a
                           general assignment for the benefit of its creditors;
                           or (e) takes any comparable action under any foreign
                           laws relating to insolvency;

                                      -42-
<PAGE>   50

                           (viii) a court of competent jurisdiction enters an
                           order or decree under any Bankruptcy Law that: (a) is
                           for relief against the Company, any Guarantor or any
                           Foreign Significant Subsidiary in an involuntary
                           case; (b) appoints a Custodian of the Company, any
                           Guarantor or any Foreign Significant Subsidiary or
                           for any substantial part of the Company's, any
                           Guarantor's or any Foreign Significant Subsidiary's
                           property; or (c) orders the winding up or liquidation
                           of the Company or any Guarantor or any Foreign
                           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;

                           (ix) any judgment or decree for the payment of money
                           in excess of $10 million at the time is entered
                           against the Company, the Parent Guarantor or any
                           Restricted Subsidiary and is not discharged and
                           either (a) an enforcement proceeding has been
                           commenced by any creditor upon such judgment or
                           decree or (b) there is a period of 60 days following
                           the entry of such judgment or decree during which
                           such judgment or decree is not discharged, waived or
                           the execution thereof stayed and, in the case of (a)
                           or (b), such default continues for 10 days; or

                           (x) the Parent Guarantee or any Subsidiary Guarantee
                           is held to be unenforceable or invalid or ceases to
                           be in full force and effect.

                  The foregoing shall 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.

                  SECTION 6.02. Acceleration. If an Event of Default (other than
an Event of Default specified in Section 6.01(vii) or (viii) with respect to the
Company or any Guarantor) occurs and is continuing, the Trustee by notice to the
Company, or the Holders of at least 25% in aggregate principal amount of the
Securities by written notice to the Company and the Trustee, may declare the
principal of and accrued 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(vii) or (viii)
with respect to the Company or any Guarantor 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 Holders. The Holders of a majority in principal amount of the Securities by
written notice to the 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.

                                      -43-
<PAGE>   51

                  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 Holder 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, provided,
however, there shall be no duplication of any recovery provided by such
remedies.

                  SECTION 6.04. Waiver of Past Defaults. The Holders of a
majority in principal amount of the Securities by written 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 or (ii) a Default in
respect of a provision that under Section 9.02 cannot be amended without the
consent of each Holder 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 Holders, it being understood that the Trustee shall have no
duty to ascertain whether or not such actions or forbearances are unduly
prejudicial to such Holders, or would involve the Trustee in personal liability;
provided, however, that the Trustee may take any other 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 as provided in
Section 6.07, a Holder may not pursue any remedy with respect to this Indenture
or the Securities, including any Guarantee provided hereunder, 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 aggregate principal amount
         of the 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

                                      -44-
<PAGE>   52

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

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

                  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 in payment of interest or principal specified in Section 6.01(i) or (ii)
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 of
principal and interest remaining unpaid (together with interest on such 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 Holders 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 to the extent
         required by Article 10;

                  THIRD: to Holders 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 Holders pursuant to this Section. At least 15 days before such record
date, the Company shall mail to each Holder and the Trustee a notice that states
the record date, the payment date and the amount to be paid.

                                      -45-
<PAGE>   53

                  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.

                           (i) 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.

                           (ii) Except during the continuance of an Event of
                           Default: (a) the Trustee undertakes to perform such
                           duties and only such duties as are specifically set
                           forth in this Indenture and no implied covenants or
                           obligations shall be read into this Indenture against
                           the Trustee; and (b) 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.

                           (iii) The Trustee may not be relieved from liability
                           for its own negligent action, its own negligent
                           failure to act or its own willful misconduct, except
                           that: (a) this Section 7.01(iii) does not limit the
                           effect

                                      -46-
<PAGE>   54

                           of Section 7.01(ii); (b) 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 (c) 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.

                           (iv) Every provision of this Indenture that in any
                           way relates to the Trustee is subject to Sections
                           7.01(i), (ii) and (iii).

                           (v) 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.

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

                           (vii) 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.

                           (viii) 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 and to the
                           provisions of the TIA.

                  SECTION 7.02. Rights of Trustee.

                           (i) 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.

                           (ii) 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.

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

                           (iv) 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 the Trustee's conduct
                           does not constitute willful misconduct or negligence.

                                      -47-
<PAGE>   55

                           (v) 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 of any action
                           taken, omitted or suffered by it hereunder in good
                           faith and in accordance with the advice or opinion of
                           such counsel.

                           (vi) The Trustee shall not be required to give any
                           bond or surety in respect of the performance of its
                           powers and duties hereunder.

                           (vii) The Trustee shall not be bound to ascertain or
                           inquire as to the performance or observance of any
                           covenants, conditions, or agreements on the part of
                           the Company, except as otherwise set forth herein,
                           but the Trustee may require of the Company full
                           information and advice as to the performance of the
                           covenants, conditions and agreements contained
                           herein.

                           (viii) The permissive rights of the Trustee to do
                           things enumerated in this Indenture shall not be
                           construed as a duty and the Trustee shall not be
                           answerable for other than its negligence or willful
                           misconduct;

                           (ix) Except for (a) a default under Sections 6.01(i)
                           or (ii) hereof, or (b) any other event of which a
                           Trust Officer has "actual knowledge" and which event,
                           with the giving of notice or the passage of time or
                           both, would constitute an Event of Default under this
                           Indenture, the Trustee shall not be deemed to have
                           notice of any default or Event of Default unless
                           specifically notified in writing of such event by the
                           Company or the Holders of not less than 25% in
                           aggregate principal amount of the Securities then
                           outstanding; as used herein, the term "actual
                           knowledge" means the actual fact or state of knowing,
                           without any duty to make any investigation with
                           regard thereto.

                  SECTION 7.03. Individual Rights of Trustee. The Trustee, in
its individual or any other capacity, may 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 as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company's
use of the proceeds from the Securities, and it shall not be responsible for any
statement of the Company in this Indenture or in any document issued in
connection with the sale of the Securities or in the Securities other than the
Trustee's certificate of authentication.

                                      -48-
<PAGE>   56

                  SECTION 7.05. Notice of Defaults. If a Default occurs and is
continuing and if it is actually known to a Trust Officer, the Trustee shall
mail to each Holder 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
(including payments pursuant to the mandatory redemption provisions of such
Security, if any), the Trustee may withhold the notice if and so long as the
Trustee in good faith determines that withholding the notice is in the interests
of Holders.

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

                  A copy of each report at the time of its mailing to Holders
shall be filed with the Commission 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, and the Trustee shall be entitled to,
reasonable compensation for its services. 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
out-of-pocket 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 and its agents, officers, directors and employees for, and hold them
harmless 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. 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, except to the extent that such failure to notify the Company results
in additional liability to the Company. Upon notice of a claim, the Company
shall defend the claim with counsel reasonably satisfactory to the Trustee. If
the Company does not retain counsel within 10 Business Days after the notice,
the Trustee may retain separate counsel and the Company shall pay the reasonable
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 willful misconduct or negligence. The Company need not pay for
any settlement made by the Trustee without the Company's consent, such consent
not to be unreasonably withheld.

                  To secure the Company's payment obligations in this Section,
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.

                                      -49-
<PAGE>   57

                  The Company's payment obligations pursuant to this Section
shall survive the discharge of this Indenture. When the Trustee incurs expenses
after the occurrence of a Default specified in Section 6.01(vii) or (viii) 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 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 Holders. 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 25% in aggregate 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 Holder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

                  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

                                      -50-
<PAGE>   58

corporation or banking association without any further act shall be the
successor Trustee.

                  In case at the time such successor or successors by merger,
conversion or consolidation with 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 Section 310(a) of the TIA. The Trustee
shall have a combined capital and surplus of at least $50 million as set forth
in its most recent published annual report of condition. The Trustee shall
comply with Section 310(b) of the TIA; provided, however, that there shall be
excluded from the operation of Section 310(b)(1) of the TIA 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 Section 310(b)(1) of the TIA are
met.

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

                                   ARTICLE 8

                       DISCHARGE OF INDENTURE; DEFEASANCE

                  SECTION 8.01. Discharge of Liability on Securities;
Defeasance.

                           (i) When (a) the Company delivers to the Trustee all
                           outstanding Securities (other than Securities
                           replaced pursuant to Section 2.06) for cancellation
                           or (b) all outstanding Securities have become due and
                           payable, whether at maturity or 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 (other than Securities replaced
                           pursuant to Section 2.06), and, if in either case,
                           the Company pays all other sums payable hereunder by
                           the Company, then this Indenture shall, subject to
                           Sections 8.01(iii) and 8.06, 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.

                                      -51-
<PAGE>   59

                           (ii) Subject to Sections 8.01(iii), 8.02 and 8.06,
                           the Company at any time may terminate (a) all its
                           obligations under the Securities and this Indenture
                           ("legal defeasance option") or (b) its obligations
                           under Sections 4.02 (to the extent that the failure
                           to comply with such Section 4.02 shall not violate
                           the TIA), 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.10,
                           4.12, 4.13 and 4.14 or Article 5 and the related
                           operation of Sections 6.01(iii), (iv), (v), (vi) and
                           (ix) ("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. 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(iii), (iv), (v), (vi) and (ix)
         (except to the extent covenants or agreements referenced in such
         Sections remain applicable).

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

                           (iii) Notwithstanding clauses (i) and (ii) above, the
                           Company's obligations in Sections 2.03, 2.04, 2.05,
                           2.06, 7.07, 7.08, 8.04, 8.05 and 8.06 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:

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

                           (ii) the Company delivers to the Trustee a
                           certificate from a nationally recognized firm of
                           independent certified public 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;

                                      -52-
<PAGE>   60

                           (iii) 91 days pass after the deposit is made and
                           during the 91-day period no Default specified in
                           Section 6.01(vii) or (viii) occurs with respect to
                           the Company, which is continuing at the end of the
                           period;

                           (iv) no Default or Event of Default has occurred and
                           is continuing on the date of such deposit and after
                           giving effect thereto;

                           (v) such deposit does not constitute a default under
                           any other agreement or instrument binding on the
                           Company and is not prohibited by Article 10 or 11;

                           (vi) 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;

                           (vii) 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
                           received from 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 Holders of the Securities 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 legal defeasance had not occurred;

                           (viii) 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 Holders of
                           the Securities 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

                           (ix) 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.

                                      -53-
<PAGE>   61

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.

                  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, Holders 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 principal of or interest on 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, the
Guarantors and the Trustee may amend this Indenture, the Guarantees, or the
Securities without notice to or consent of any Holder:

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

                  (2) to comply with Article 5;

                  (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 make any change in Article 10 that would limit or
         terminate the benefits

                                      -54-
<PAGE>   62

available to any holder of Senior Indebtedness (or Representatives therefor)
under Articles 10 and 11;

                  (5) to add guarantees with respect to the Securities or to
         secure the Securities;

                  (6) 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;

                  (7) to comply with any requirements of the Commission in
         connection with qualifying this Indenture under the TIA;

                  (8) to make any change to Article 2, Section 4.01 or the
         Exhibits hereto that applies only to Additional Notes (other than a
         change relating to other provisions of this Indenture incorporated or
         referenced in Article 2, Section 4.01 or any such Exhibit); or

                  (9) to make any change that does not adversely affect the
         rights of any Holder.

                  An amendment under this Section may not make any change that
adversely affects the rights under Articles 10 and 11 of any holder of Senior
Indebtedness 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 becomes effective, the
Company or the Trustee at the Company's request and expense, shall mail to
Holders a notice briefly describing such amendment. The failure to give such
notice to all Holders, or any defect therein, shall not impair or affect the
validity of an amendment under this Section.

                  SECTION 9.02. With Consent of Holders. The Company, the
Guarantors and the Trustee may amend this Indenture, the Guarantees, or the
Securities without notice to any Holder but with the written consent of the
Holders of at least a majority in principal amount of the Securities; provided,
however, that no amendment may be made to Section 4.08 without the written
consent of the Holders of at least 75% in principal amount of the Securities.
However, without the consent of each Holder affected, an amendment may not:

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

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

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

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

                  (5) reduce the premium payable upon the repurchase of any
         Security pursuant to Section 4.08;

                                      -55-
<PAGE>   63

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

                  (7) make any change in Section 6.04 or 6.07 or the second
         sentence of this Section; or

                  (8) make any change in Article 10 or 11 that adversely affects
         the rights of any Holder under Article 10 or 11;

                  (9) release the Company or the Guarantors from their
         respective obligations under the Securities or the Guarantees (except
         pursuant to Article 5); or

                  (10) make any changes in the Securities not otherwise
         permitted by this Indenture that would adversely affect the rights of
         any Holder.

                  It shall not be necessary for the consent of the Holders under
this Section 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 may not make any change that
adversely affects the rights under Article 10 or 11 of any holder of Senior
Indebtedness or Senior Indebtedness of Guarantors then outstanding unless the
holders of such Senior Indebtedness or Senior Indebtedness of Guarantors, as the
case may be (or any group or representative thereof authorized to give a
consent), consent to such change.

                  After an amendment under this Section becomes effective, the
Company, or the Trustee at the Company's request and expense, shall mail to
Holders a notice briefly describing such amendment. The failure to give such
notice to all Holders, or any defect therein, shall not impair or affect the
validity of an amendment under this Section.

                  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 Holder.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Holders 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 Holders 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

                                      -56-
<PAGE>   64

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 the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing any
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 (i) amendment is authorized or permitted by this Indenture and
that all conditions precedent to the execution, delivery and performance of such
amendment have been satisfied; (ii) the Company has all necessary corporate
power and authority to execute and deliver the amendment and that the execution,
delivery and performance of such amendment has been duly authorized by all
necessary corporate action; (iii) the execution, delivery and performance of the
amendment do not conflict with, or result in the breach of or constitute a
default under any of the terms, conditions or provisions of (a) this Indenture
or (b) the Certificate of Incorporation or By-laws of the Company; (iv) such
amendment has been duly and validly executed and delivered by the Company, and
this Indenture together with such amendment constitutes a legal, valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally and general equitable principles; and (v) this Indenture
together with such amendment complies with the TIA.

                  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 OF SECURITIES

                  SECTION 10.01. Agreement to Subordinate. The Company agrees,
and each Holder by accepting a Security agrees, that the Indebtedness evidenced
by the Securities is

                                      -57-
<PAGE>   65

subordinated in right of payment, to the extent and in the manner provided in
this Article 10, to the prior payment in full, in cash or cash equivalents, of
all existing and future Senior Indebtedness and that the subordination is for
the benefit of and enforceable by the holders of 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
that is Senior Indebtedness 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 the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property:

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

                  (2) until the Senior Indebtedness is paid in full, any
         distribution to which Holders would be entitled but for this Article 10
         shall be made to holders of Senior Indebtedness as their interests may
         appear, except that Holders may receive shares of stock and any debt
         securities that are subordinated to Senior Indebtedness to at least the
         same extent as the Securities.

                  SECTION 10.03. Default on Senior Indebtedness. The Company may
not pay the principal of or interest on the Securities, or make any deposit
pursuant to Section 8.01, and may not repurchase, redeem or otherwise retire any
Securities (collectively, "pay the Securities") if (i) a default in the payment
of principal or interest on any Senior Indebtedness occurs and is continuing
beyond any applicable grace period, or (ii) any other default on Senior
Indebtedness occurs and the maturity of such Senior Indebtedness is accelerated
in accordance with its terms unless, in either case, (a) the default has been
cured or waived and any such acceleration has been rescinded or (b) such Senior
Indebtedness has been paid in full. During the continuance of any default (other
than a default described in clause (i) or (ii) of the preceding sentence) with
respect to any Designated Senior Indebtedness pursuant to which the maturity
thereof may be accelerated immediately without further notice (except such
notice as may be required to effect such acceleration) or the expiration of any
applicable grace periods, the Company may not pay the Securities for a period (a
"Payment Blockage Period") commencing upon the receipt by the Company and the
Trustee of written notice of such default from the Representative of any
Designated Senior Indebtedness specifying an election to effect a Payment
Blockage Period (a "Blockage Notice") and ending 179 days thereafter (or
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) by repayment in full of such Designated Senior Indebtedness or (3)
because the default giving rise to such Blockage Notice is no longer
continuing). Notwithstanding the provisions described in the immediately
preceding sentence (but subject to the provisions contained in the first
sentence of this Section), unless the holders of such Designated Senior
Indebtedness or the Representative of such holders shall have accelerated the
maturity of such Designated Senior Indebtedness, the Company may resume payments
on the

                                      -58-
<PAGE>   66

Securities after such Payment Blockage Period. Not more than one Blockage Notice
may be given in any consecutive 360-day period, irrespective of the number of
defaults with respect to Designated Senior Indebtedness during such period.

                  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 (or their Representatives) of the acceleration.

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

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

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

                  (1) impair, as between the Company and Holders, the obligation
         of the Company, which is absolute and unconditional, to pay principal
         of and interest on the Securities in accordance with their terms; or

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

                  SECTION 10.08. Subordination May Not Be Impaired by Company.
No right of any holder of Senior Indebtedness 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 may continue to make
payments on the Securities and shall not be charged with knowledge of the
existence of facts that 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 written notice satisfactory to it that payments
may not be made under this Article 10. The Company, the Registrar or
co-registrar, the Paying Agent, a Representative of holders of or a holder or
holders holding a majority of Senior Indebtedness may give the written notice;
provided, however, that, if holders of Senior Indebtedness have a
Representative, only such Representative may give the notice.

                                      -59-
<PAGE>   67

                  The Trustee, in its individual or any other capacity, may hold
Senior Indebtedness with the same rights it would have if it were not Trustee.
The Registrar and co-registrar and the Paying Agent may 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 which may at any time be held
by it, to the same extent as any other holder of 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 a distribution is to be made or a notice given to holders of Senior
Indebtedness, the distribution may be made and the notice given 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 Holders or the Trustee to accelerate the maturity
of the Securities.

                  SECTION 10.12. Trust Monies 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 or subject to the
restrictions set forth in this Article 10, and none of the Holders 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 Holders shall be
entitled to rely (i) 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, (ii) upon a certificate of the liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or to the
Holders or (iii) upon the Representatives for the holders of Senior Indebtedness
for the purpose of ascertaining the Persons entitled to participate in such
payment or distribution, the holders of the 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 to participate in any payment or distribution pursuant to
this Article 10, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate
in such 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 may 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.

                                      -60-
<PAGE>   68

                  SECTION 10.14. Trustee to Effectuate Subordination. Each
Holder by accepting a Security authorizes and directs the Trustee on his, her or
its behalf to take such action as may be necessary or appropriate to acknowledge
or effectuate the subordination between the Holders and the holders of Senior
Indebtedness 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. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness and shall not be liable to any such holders if it
shall mistakenly pay over or distribute to Holders or the Company or any other
Person money or assets to which any holders of Senior Indebtedness shall be
entitled by virtue of this Article 10 or otherwise.

                  SECTION 10.16. Reliance by Holders of Senior Indebtedness on
Subordination Provisions. Each Holder 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,
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 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

                     GUARANTEES; SUBORDINATION OF GUARANTEES

                  SECTION 11.01. Parent and Subsidiary Guarantees. Subject to
the provisions of this Article 11, the Parent Guarantor and each Subsidiary
Guarantor hereby unconditionally guarantees, jointly and severally, on a senior
subordinated basis to each Holder and to the Trustee on behalf of the Holders
(i) the due and punctual payment of principal of and interest on each Security
when and as the same shall become due and payable whether at the date of
maturity or by declaration of acceleration or otherwise, (ii) the due and
punctual payment of interest on the overdue principal of and interest, if any,
on the Securities, to the extent lawful, and (iii) the due and punctual
performance of all other obligations of the Company to the Holders or the
Trustee, all in accordance with the terms of the Securities and this Indenture
(the "Guarantees"). In case of the failure of the Company punctually to make any
such principal or interest payment, the Guarantors hereby agree to cause any
such payment to be made punctually when and as the same shall become due and
payable, whether at the date of maturity or by declaration of acceleration or
otherwise, and as if such payment were made by the Company. Each Guarantor
hereby agrees that its obligations hereunder shall be unconditional,
irrespective of and unaffected by the validity, regularity or enforceability of
the Securities or this Indenture, or of any amendment thereto or hereto, the
absence of any action to enforce the same, the waiver or consent by any Holder
or by the Trustee with respect to any provisions thereof or of this Indenture,
the recovery of any judgment against the Company or any action to enforce the
same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. The Company hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of merger, insolvency or bankruptcy of the Company, any

                                      -61-
<PAGE>   69

right to require a proceeding first against the Company, protest or notice with
respect to the Securities or the Indebtedness evidenced thereby and all demands
whatsoever, and covenants that the Guarantees will not be discharged except by
complete performance of the obligations contained in the Securities, in this
Indenture and pursuant to the Guarantees. The Guarantors further agree that, as
between the Guarantors, on the one hand, and Holders and the Trustee, on the
other hand, (i) for purposes of the Guarantees, the maturity of the obligations
guaranteed by the Guarantees may be accelerated as provided in Article 6,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed thereby, and (ii) in the
event of any acceleration of such obligations (whether or not due and payable),
such obligations shall forthwith become due and payable by the Guarantors for
purposes of the Guarantees.

                  The Guarantees shall continue to be effective or shall be
reinstated, as the case may be, if at any time any payment, or any part thereof,
of principal of or interest on any of the Securities is rescinded or must
otherwise be returned by the Holders or the Trustee upon the insolvency,
bankruptcy or reorganization of the Company or the Guarantors or otherwise, all
as though such payment had not been made.

                  The Guarantors shall be subrogated to all rights of the
Holders against the Company in respect of any amounts paid by the Guarantors
pursuant to the provisions of the Guarantees or this Indenture; provided,
however, that the Guarantors shall not be entitled to enforce or to receive any
payments until the principal of and interest on all Securities issued hereunder
shall have been paid in full.

                  The Guarantees are specifically designated by the Guarantors
as Indebtedness of the Guarantors for purposes of this Indenture.

                  Any term or provision of this Indenture to the contrary
notwithstanding, the maximum aggregate amount of the obligations guaranteed
hereunder by any Guarantor shall not exceed the maximum amount that, after
giving effect to all other contingent and fixed liabilities of such Guarantor
and after giving effect to any collections from or payments made on behalf of
any other Guarantor in respect of the obligations of such other Guarantor under
its Guarantee or pursuant to its contribution obligations under this Indenture,
can be hereby guaranteed without rendering this Indenture, as it relates to such
Guarantor, voidable under the applicable law relating to fraudulent conveyance
or fraudulent transfer or similar laws affecting the rights of creditors
generally.

                  SECTION 11.02. Contribution. In order to provide for just and
equitable contribution among the Guarantors, the Guarantors agree, inter se,
that in the event any payment or distribution is made by a Guarantor (a "Funding
Guarantor") under its Guarantee, such Funding Guarantor shall be entitled to a
contribution from all other Guarantors in a pro rata amount based upon the
Adjusted Net Assets of each Guarantor (including the Funding Guarantor) for all
payments, damages and expenses incurred by that Funding Guarantor in discharging
the Company's obligations with respect to the Securities or any other
Guarantor's obligations with respect to the Guarantee.

                                      -62-
<PAGE>   70

                  "Adjusted Net Assets" of such Guarantor at any date shall mean
the lesser of the amount by which (x) the fair value of the property of such
Guarantor exceeds the total amount of liabilities, including, without
limitation, contingent liabilities (after giving effect to all other fixed and
contingent liabilities Incurred or assumed on such date), but excluding
liabilities under the Guarantee, of such Guarantor at such date and (y) the
present fair saleable value of the assets of such Guarantor at such date exceeds
the amount that will be required to pay the probable liability of such Guarantor
on its debts including, without limitation, Senior Indebtedness of Guarantors
(after giving effect to all other fixed and contingent liabilities Incurred or
assumed on such date and after giving effect to any collection from any
Subsidiary of such Guarantor in respect of the obligations of such Subsidiary
under the Guarantee), excluding debt in respect of the Guarantee of such
Guarantor, as they become absolute and matured.

                  SECTION 11.03. Agreement to Subordinate. The Parent Guarantor
agrees, and each Holder by accepting a Security, agrees, that the Parent
Guarantee is subordinated in right of payment, to the extent and in the manner
provided in this Article 11, to the prior payment in full, in cash or cash
equivalents, of all existing and future Senior Indebtedness of the Parent
Guarantor and that the subordination is for the benefit of and enforceable by
the holders of Senior Indebtedness of the Parent Guarantor. The Subsidiary
Guarantors agree, and each Holder, by accepting a Security, agrees, that the
Subsidiary Guarantees are subordinated in right of payment, to the extent and in
the manner provided in this Article 11, to the prior payment in full, in cash or
cash equivalents, of all existing and future Senior Indebtedness of the
Subsidiary Guarantors and that the subordination is for the benefit of and
enforceable by the holders of Senior Indebtedness of the Subsidiary Guarantors.
The Guarantees shall in all respects rank pari passu with all other Senior
Subordinated Indebtedness of the Guarantors and only Indebtedness of the
Guarantors which is Senior Indebtedness of the Guarantors shall rank senior to
the Guarantees in accordance with the provisions set forth herein. All
provisions of this Article 11 shall be subject to Section 11.14.

                  SECTION 11.04. Liquidation, Dissolution, Bankruptcy. Upon any
payment or distribution of the assets of a Guarantor to creditors upon a total
or partial liquidation or a total or partial dissolution of such Guarantor, or
in a bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to a Guarantor or such Guarantor's property:

                  (1) holders of Senior Indebtedness of the Guarantors shall be
         entitled to receive payment in full of the Senior Indebtedness of the
         Guarantors before Holders shall be entitled to receive any payment of
         principal of or interest on the Securities pursuant to the Guarantees;
         and

                  (2) until the Senior Indebtedness of the Guarantors is paid in
         full, any distribution to which Holders would be entitled but for this
         Article 11 shall be made to holders of Senior Indebtedness of the
         Guarantors as their interests may appear, except that Holders may
         receive shares of stock and any debt securities that are subordinated
         to Senior Indebtedness of the Guarantors to at least the same extent as
         under the Guarantees.

                  SECTION 11.05. Default on Senior Indebtedness of the
Guarantors. The Guarantors may not pay the principal of or interest on the
Securities pursuant to the Guarantees

                                      -63-
<PAGE>   71

or make any deposit for the purpose of the discharge of their liabilities under
this Indenture and may not repurchase, redeem or otherwise retire any Securities
pursuant to the Guarantees (collectively, "pay the Securities") if (i) any
Senior Indebtedness of the Guarantors is not paid when due or (ii) any other
default on Senior Indebtedness of the Guarantors occurs and the maturity of such
Senior Indebtedness of the Guarantors is accelerated in accordance with its
terms unless, in either case, (a) the default has been cured or waived and any
such acceleration has been rescinded or (b) such Senior Indebtedness of the
Guarantors has been paid in full. During the continuance of any default (other
than a default described in clause (i) or (ii) of the preceding sentence) with
respect to any Designated Senior Indebtedness of the Guarantors pursuant to
which the maturity thereof may be accelerated immediately without further notice
(except such notice as may be required to effect such acceleration) or the
expiration of any applicable grace periods, the Guarantors may not pay the
Securities for a period (a "Guarantor Payment Blockage Period") commencing upon
the receipt by the Guarantors and the Trustee of written notice of such default
from the Representative of any Designated Senior Indebtedness of the Guarantors
specifying an election to effect a Guarantor Payment Blockage Period (a
"Guarantor Blockage Notice") and ending 179 days thereafter (or earlier, if such
Guarantor Payment Blockage Period is terminated (1) by written notice to the
Trustee and the Guarantor from the Person or Persons who gave such Guarantor
Blockage Notice, (2) by repayment in full of such Designated Senior Indebtedness
of Guarantors or (3) because the default giving rise to such Guarantor Blockage
Notice is no longer continuing). Notwithstanding the provisions described in the
immediately preceding sentence (but subject to the provisions contained in the
first sentence of this Section 11.05), unless the holders of such Designated
Senior Indebtedness of the Guarantors or the Representative of such holders
shall have accelerated the maturity of such Designated Senior Indebtedness of
the Guarantors, the Guarantors may resume payments on the Securities pursuant to
the Guarantees after such Guarantor Payment Blockage Period. Not more than one
Guarantor Blockage Notice may be given in any consecutive 360-day period,
irrespective of the number of defaults with respect to Designated Senior
Indebtedness of the Guarantors during such period.

                  SECTION 11.06. Acceleration of Payment of Securities. If
payment of the Securities is accelerated because of an Event of Default, the
Company shall promptly notify the holders of the Designated Senior Indebtedness
of the Guarantors (or their Representatives) of the acceleration.

                  SECTION 11.07. When Distribution Must Be Paid Over. If a
distribution is made to Holders that because of this Article 11 should not have
been made to them, the Holders who receive the distribution shall hold it in
trust for holders of Senior Indebtedness of Guarantors and pay it over to them
as their interests may appear.

                  SECTION 11.08. Subrogation. After all Senior Indebtedness is
paid in full and until the Securities are paid in full, Holders shall be
subrogated to the rights of holders of Senior Indebtedness of the Guarantors to
receive distributions applicable to Senior Indebtedness of the Guarantors. A
distribution made under this Article 11 to holders of Senior Indebtedness of the
Guarantors which otherwise would have been made to Holders is not, as between
the Company and Holders, a payment by the Guarantors on Senior Indebtedness of
the Guarantors.

                                      -64-
<PAGE>   72

                  SECTION 11.09. Relative Rights. This Article 11 defines the
relative rights of Holders and holders of Senior Indebtedness of the Guarantors.
Nothing in this Indenture shall:

                  (1) impair, as between the Guarantors and Holders, the
         obligation of the Guarantors, which is absolute and unconditional, to
         pay principal of and interest on the Securities pursuant to the
         Guarantees in accordance with their terms; or

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

                  SECTION 11.10. Subordination May Not Be Impaired by the
Guarantors. No right of any holder of Senior Indebtedness of the Guarantors to
enforce the subordination of the Indebtedness evidenced by the Securities shall
be impaired by any act or failure to act by any Guarantor or by its failure to
comply with this Indenture.

                  SECTION 11.11. Rights of Trustee and Paying Agent.
Notwithstanding Section 11.05, the Trustee or Paying Agent may continue to make
payments on the Securities and shall not be charged with knowledge of the
existence of facts that 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 payments may not
be made under this Article 11. The Guarantors, the Registrar or co-registrar,
the Paying Agent, a Representative of holders of, or holders holding a majority
of Senior Indebtedness may give the notice; provided, however, that, if holders
of Senior Indebtedness of the Guarantors have a Representative, only such
Representative may give the notice.

                  The Trustee, in its individual or any other capacity, may hold
Senior Indebtedness of the Guarantors with the same rights it would have if it
were not Trustee.

                  The Registrar and co-registrar and the Paying Agent may do the
same with like rights. The Trustee shall be entitled to all the rights set forth
in this Article 11 with respect to any Senior Indebtedness of the Guarantors
which may at any time be held by it, to the same extent as any other holder of
Senior Indebtedness of the Guarantors; and nothing in Article 7 shall deprive
the Trustee of any of its rights as such holder. Nothing in this Article 11
shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 7.07.

                  SECTION 11.12. Distribution or Notice to Representative.
Whenever a distribution is to be made or a notice given to holders of Senior
Indebtedness of the Guarantors, the distribution may be made and the notice
given to their Representative (if any).

                  SECTION 11.13. Article 11 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 11 shall not be construed
as preventing the occurrence of a Default. Nothing in this Article 11 shall have
any effect on the right of the Holders or the Trustee to accelerate the maturity
of the Securities.

                  SECTION 11.14. Trust Monies Not Subordinated. Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds
of U.S. Government

                                      -65-
<PAGE>   73

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 or subject to the restrictions set
forth in this Article 11, and none of the Holders shall be obligated to pay over
any such amount to the Guarantors or any holder of Senior Indebtedness of the
Guarantors or any other creditor of the Guarantors.

                  SECTION 11.15. Trustee Entitled to Rely. Upon any payment or
distribution pursuant to this Article 11, the Trustee and the Holders shall be
entitled to rely (i) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 11.04
are pending, (ii) upon a certificate of the liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or to the
Holders, or (iii) upon the Representatives for the holders of Senior
Indebtedness of the Guarantors for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of the
Senior Indebtedness of the Guarantors and other Indebtedness of the Guarantors,
the amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article 11. 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
Guarantors to participate in any payment or distribution pursuant to this
Article 11, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
of the Guarantors held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and other facts
pertinent to the rights of such Person under this Article 11, and, if such
evidence is not furnished, the Trustee may 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 11.

                  SECTION 11.16. Trustee to Effectuate Subordination. Each
Holder by accepting a Security authorizes and directs the Trustee on its behalf
to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination between the Holders and the holders of Senior
Indebtedness of the Guarantors as provided in this Article 11 and appoints the
Trustee as attorney-in-fact for any and all such purposes.

                  SECTION 11.17. Trustee Not Fiduciary for Holders of Senior
Indebtedness of the Guarantors. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness of the Guarantors and shall
not be liable to any such holders if it shall mistakenly pay over or distribute
to Holders or the Guarantors or any other Person money or assets to which any
holders of Senior Indebtedness of the Guarantors shall be entitled by virtue of
this Article 11 or otherwise.

                  SECTION 11.18. Reliance by Holders of Senior Indebtedness of
the Guarantors on Subordination Provisions. Each Holder 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 Guarantors, whether such Senior Indebtedness of the
Guarantors 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 of the Guarantors and such holder of Senior Indebtedness of the
Guarantors shall be deemed

                                      -66-
<PAGE>   74

conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Senior Indebtedness of the
Guarantors.

                  SECTION 11.19. Release of Guarantors. This Subsidiary
Guarantee as to any Subsidiary Guarantor shall terminate and be of no further
force or effect on the sale or other transfer (i) by such Subsidiary Guarantor
of all or substantially all of its assets in compliance with the terms of this
Indenture or (ii) by the Company of all of its stock or other equity interests
in such Subsidiary Guarantor, in each case to a Person that is not an Affiliate
of the Company; provided, however, that such sale or transfer shall be deemed to
constitute an Asset Disposition and the Company shall comply with all applicable
provisions of Section 4.06 with respect to such Asset Disposition.

                                   ARTICLE 12

                                  MISCELLANEOUS

                  SECTION 12.01. Trust Indenture Act Controls. If and to the
extent that any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by, or with another provision (an "incorporated provision")
included in this Indenture by operation of, Sections 310 to 318, inclusive, of
the TIA, such imposed duties or incorporated provision shall control. If any
provision of this Indenture modifies or excludes any provision of the TIA that
may be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or excluded, as the case may be.

                  SECTION 12.02. 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 or any Guarantor:

                                    United States Can Company
                                    900 Commerce Drive
                                    Oak Brook, Illinois  60521
                                    Attention:  Chief Financial Officer
                                                General Counsel

                           With a copy to:

                                    Ropes & Gray
                                    One International Place
                                    Boston, Massachusetts 02110-2624
                                    Attention:  Philip J. Smith, Esq.
                                                Jane D. Goldstein, Esq.

                                      -67-
<PAGE>   75

                           If to the Trustee:

                                    Bank One Trust Company, N.A.
                                    One N. State Street, 9th Floor
                                    Chicago, Illinois 60670-0126
                                    Attention:  Corporate Trust Administration

                           If to the Paying Agent:

                                    Bank One Trust Company, N.A.
                                    One N. State Street, 9th Floor
                                    Chicago, Illinois 60670-0126
                                    Attention:  Corporate Trust Administration

                  The Company 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 Holder shall be mailed
to the Holder at the Holder'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 Holder or any
defect in it shall not affect its sufficiency with respect to other Holders. If
a notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it. If the Company or a Guarantor
mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Paying Agent at the same time.

                  SECTION 12.03. Communication by Holders with Other Holders.
Holders may communicate pursuant to TIA Section 312(b) with other Holders with
respect to their rights under this Indenture or the Securities. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA Section
312(c).

                  SECTION 12.04. 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 and complying with Section 12.05 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 12.05. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture (other than a certificate pursuant to
Section 3.14(a)(4) of the TIA) shall comply with the provisions of Section
3.14(e) of the TIA and shall include:

                                      -68-
<PAGE>   76

                  (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 or
         she or such individual has made such examination or investigation as is
         necessary to enable him or her 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 or
         satisfied.

                  SECTION 12.06. 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 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 has actual knowledge to be 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 12.07. Rules by Trustee, Paying Agent and Registrar.
The Trustee may make reasonable rules for action by or a meeting of Holders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

                  SECTION 12.08. 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 or the State of Illinois. 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 12.09. 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 12.10. No Recourse Against Others. A director,
officer, employee or stockholder, as such, of the Company, the Guarantors or the
Trustee (as the case may be) shall not have any liability for any obligations of
the Company, the Guarantors or the Trustee (as the case may be) under the
Securities or this Indenture or for any claim based on, in respect of or by

                                      -69-
<PAGE>   77

reason of such obligations or their creation. By accepting a Security, each
Holder shall waive and release all such liability. The waiver and release shall
be part of the consideration for the issue of the Securities.

                  SECTION 12.11. Successors. All agreements of each of the
Company and the Guarantors in this Indenture and the Securities shall bind their
respective successors. All agreements of the Trustee in this Indenture shall
bind its successors.

                  SECTION 12.12. 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 12.13. 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.

                  SECTION 12.14. Severability. In case any provision in this
Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

                            [signature page follows]

                                      -70-
<PAGE>   78

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

                               UNITED STATES CAN COMPANY,
                               as Issuer

                               By: /s/ Paul W. Jones
                                   ------------------------------------------
                                   Paul W. Jones
                                   Chairman of the Board, President and Chief
                                      Executive Officer

                               U.S. CAN CORPORATION,
                               as Parent Guarantor

                               By: /s/ Paul W. Jones
                                   ------------------------------------------
                                   Paul W. Jones
                                   Chairman of the Board, President and Chief
                                      Executive Officer

                               USC MAY VERPACKUNGEN HOLDING, INC.,
                               as Subsidiary Guarantor

                               By: /s/ Paul W. Jones
                                  ------------------
                                  Paul W. Jones
                                  President

                               BANK ONE TRUST COMPANY, N.A.,
                               as Trustee

                               By: /s/ Benita A. Pointer
                                   ---------------------
                                   Name:  Benita A. Pointer
                                   Title: Account Executive

<PAGE>   79
                                                                       EXHIBIT A

                         [FORM OF FACE OF INITIAL NOTES]

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY 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 SUCCESSORS 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.

                  [Restricted Security Legend]

                  "THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND,
ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN
THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT
AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL
INTEREST HEREIN, THE HOLDER:

                  (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL
         BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A "QIB"),
         (B) IT IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN
         COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, OR (C) IT IS AN
         INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A) (1),
         (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) (AN "IAI"),

                  (2) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS
         SECURITY EXCEPT (A) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, (B) TO A
         PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS
         OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A TRANSACTION MEETING THE
         REQUIREMENTS OF RULE 144A, (AS INDICATED BY THE BOX CHECKED BY THE
         TRANSFEROR

                                      A-1
<PAGE>   80

         ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY), (C) IN
         AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR 904 OF
         REGULATION S UNDER THE SECURITIES ACT, (AS INDICATED BY THE BOX CHECKED
         BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
         SECURITY), (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144
         UNDER THE SECURITIES ACT, (E) TO AN IAI THAT, PRIOR TO SUCH TRANSFER,
         FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
         REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS
         SECURITY (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF
         SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES
         LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY,
         THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, (AS
         INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF
         TRANSFER ON THE REVERSE OF THIS SECURITY), (F) IN ACCORDANCE WITH
         ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
         ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY),
         OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH
         CASE, IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF
         THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, AND

                  (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
         SECURITY OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
         THE EFFECT OF THIS LEGEND.

                  AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED
STATES" HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE
SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO
REFUSE TO REGISTER ANY TRANSFER OF THIS SECURITY IN VIOLATION OF THE FOREGOING."

                            UNITED STATES CAN COMPANY

                     12 3/8% Senior Subordinated Notes Due 2010

No.                                                          U.S. $175,000,000
                                                        CUSIP No.:  911674 AB 5

         United States Can Company, a Delaware corporation, promises to pay to
CEDE & Co., or registered assigns, the principal sum set forth above or such
other principal sum on the schedule attached hereto (which shall not exceed U.S.
$175,000,000) on October 1, 2010.

         Interest Payment Dates:  April 1 and October 1

                                      A-2
<PAGE>   81

         Record Dates:  March 15 and September 15

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

Dated:  October 4, 2000

                                     UNITED STATES CAN COMPANY

                                     By:
                                        --------------------------
                                        President

                                     By:
                                        --------------------------
                                        Secretary

                                      A-3

<PAGE>   82

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                                       BANK ONE TRUST COMPANY, N.A., as Trustee,
                                       certifies that this is one of the
                                       Securities referred to in the Indenture.

[seal]
                                       By:
                                          --------------------------
                                              Authorized Signatory

                                      A-4

<PAGE>   83

                     [FORM OF REVERSE SIDE OF INITIAL NOTES]

                            UNITED STATES CAN COMPANY

                   12 3/8% Senior Subordinated Notes due 2010

1.       Interest

                  United States Can Company, 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 (the "Security") at the rate per annum shown
above. The Company will pay interest semiannually on April 1 and October 1 of
each year. 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 the Issue
Date. Interest will be computed on the basis of a 360-day year of 12 30-day
months. The Company shall pay interest on overdue principal at the rate borne by
the Securities plus 1% per annum, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

2.       Special Interest

                  The holder of this Security is entitled to the benefits of a
Registration Rights Agreement, dated as of October 4, 2000, among the Company,
U.S. Can Corporation (the "Parent Guarantor"), USC May Verpackungen Holding Inc.
(the "Subsidiary Guarantor" and, together with the Parent Guarantor, the
"Guarantors") and the Initial Purchasers (the "Registration Rights Agreement").
Pursuant to the Registration Rights Agreement, the Company and the Guarantors
have agreed as follows:

                           (1) If neither a registration statement (the
         "Exchange Offer Registration Statement") in respect of a registered
         offered to exchange the Securities (the "Exchange Offer") nor a
         registration statement permitting public resale of the Securities (the
         "Shelf Registration Statement") has been filed on or prior to the 120th
         day (the "Filing Date") after the date the Initial Notes were
         originally issued (the "Issue Date"), then, commencing on the 121st day
         after the Issue Date, additional interest on the Securities
         ("Liquidated Damages") shall accrue on the Securities over and above
         the stated interest at a rate of 0.50% per annum of the principal
         amount of the Securities for the first 90 days immediately following
         the Filing Date, such Liquidated Damages rate increasing by an
         additional 0.25% per annum of the principal amount of the Securities at
         the beginning of each subsequent 90-day period;

                           (2) If the Exchange Offer Registration Statement is
         not declared effective by the Commission on or prior to the 150th day
         (the "Effectiveness Date") after the Issue Date, then, commencing on
         the 151st day after the Issue Date, Liquidated Damages shall accrue on
         the Securities included or which should have been included in such
         Registration Statement over and above the stated interest at a rate of
         0.50% per annum of the principal amount of the Securities for the first
         90 days immediately following the Effectiveness Date, such Liquidated
         Damages rate increasing by an additional 0.25%

                                      A-5

<PAGE>   84

         per annum of the principal amount of the Securities at the end of each
         subsequent 90-day period; and

                           (3) If (A) the Exchange Offer has not been
         consummated, and the Shelf Registration Statement has not been declared
         effective by the Commission, on or prior to the 180th day after the
         Issue Date or (B) the Exchange Offer Registration Statement or, if
         applicable, the Shelf Registration Statement has been declared
         effective and such Registration Statement ceases to be effective at any
         time during the periods specified in the Registration Rights Agreement
         (unless all the Securities have previously been sold thereunder), then
         Liquidated Damages shall accrue (over and above any interest otherwise
         payable on such Securities) at a rate of 0.50% per annum of the
         principal amount of the Securities for the first 90 days commencing on
         (x) the 181st day after the Issue Date with respect to the Securities
         validly tendered and not exchanged by the Company pursuant to the
         Exchange Offer, in the case of (A) above, or (y) the day such Exchange
         Offer Registration Statement or Shelf Registration Statement ceases to
         be effective in the case of (B) above, such Liquidated Damages rate
         increasing by an additional 0.25% per annum of the principal amount of
         the Securities at the end of each such subsequent 90-day period (it
         being understood and agreed that, in the case of (B) above, so long as
         any Security is then covered by an effective Shelf Registration
         Statement, no Liquidated Damages shall accrue on such Security);

provided, however, that the Liquidated Damages rate on any affected Security may
not exceed at any one time in the aggregate 1.0% per annum of the principal
amount of the Securities; and provided further, that (1) upon the filing of the
Exchange Offer Registration Statement or a Shelf Registration Statement (in the
case of clause (1) of this Section 2), (2) upon the effectiveness of the
Exchange Offer Registration Statement (in the case of clause (2) of this Section
2), or (3) upon the exchange of all Securities tendered in the Exchange Offer or
the effectiveness of the Shelf Registration Statement (in the case of clause
(3)(A) of this Section 2), or upon the effectiveness of the Exchange Offer
Registration Statement or the Shelf Registration Statement which had ceased to
remain effective (in the case of clause (3)(B) of this Section 2), Liquidated
Damages on the affected Securities as a result of such clause (or the relevant
subclause thereof), as the case may be, shall cease to accrue as of the day
immediately preceding the date of the event described in such clause (or the
relevant subclause thereof).

3.       Method of Payment

                  The Company, in accordance with Section 4.01 of the Indenture,
will pay interest on the Securities (except defaulted interest) to the persons
who are registered holders of Securities (each, a "Holder") at the close of
business on the Record Date next preceding the interest payment date even if
Securities are cancelled after the Record Date and on or before the interest
payment date. Holders must surrender Securities to an office or agency where
Securities may be presented for payment (the "Paying Agent") to collect
principal payments. The Securities will be payable as to principal and interest
at the office or agency of the Company maintained for such purpose within the
City and State of New York, or, at the option of the Company, payment of
interest may be made by check mailed to the Holders at their addresses set forth
in the Security register of Holders; provided that the Company will be required
to make, by wire transfer of

                                      A-6

<PAGE>   85

immediately available funds to the accounts specified by a Holder of at least $5
million aggregate principal amount of Securities, all payments of principal of,
premium, if any, and interest with respect to such Holder's Securities if such
Holder has provided wire transfer instructions to the Company.

4.       Paying Agent and Registrar

                  Initially, Bank One Trust Company, N.A., a national banking
association ("Trustee"), will act as Paying Agent and the office or agency where
Securities may be presented for registration or transfer or for exchange (the
"Registrar").

5.       Indenture

                  The Company issued the Securities under an Indenture dated as
of October 4, 2000 (the "Indenture"), among the Company, the Guarantors 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 and,
to the extent required by any amendment to the Trust Indenture Act of 1939 after
such date, as amended from time to time (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 Holders are
referred to the Indenture and the Act for a statement of those terms.

                  The Securities are general unsecured obligations of the
Company limited to $275,000,000 aggregate principal amount of which $175,000,000
aggregate principal amount will be initially issued on the Closing Date (subject
to Section 2.07 of the Indenture). Subject to the conditions set forth in the
Indenture, the Company may issue up to an additional $100,000,000 aggregate
principal amount of Additional Notes. This Security is one of the Initial Notes
referred to in the Indenture. The Securities include the Initial Notes, the
Additional Notes and any notes issued in exchange for the Initial Notes pursuant
to the Registration Rights Agreement (the "Exchange Notes"). The Initial Notes,
the Additional Notes and the Exchange Notes are treated as a single class of
securities under the Indenture. The Indenture imposes certain limitations on the
Company and the Restricted Subsidiaries, including the Incurrence of additional
Indebtedness, payment of dividends or other distributions with respect to
Capital Stock of the Company, sale of assets of the Company or its Restricted
Subsidiaries, and restrictions on the ability of any Restricted Subsidiary to
pay dividends or make any other distributions in respect of its Capital Stock.
In addition, the Indenture contains certain covenants that, among other things,
limit the ability of the Company and the Guarantors to Incur Indebtedness which
is senior to or ranks pari passu with the Securities or the Guarantees, as the
case may be, create certain Liens, or enter into certain mergers and
consolidations.

                  The payment of principal and interest on the Securities is
unconditionally guaranteed on a senior subordinated and unsecured basis by the
Guarantors.

                                      A-7

<PAGE>   86

6.       Optional Redemption

                  Except as set forth in paragraphs 7 and 8, the Securities may
not be redeemed prior to October 1, 2005. On and after that date, the Company
may redeem the Securities in whole at any time or in part from time to time at
the following redemption prices (expressed in percentages of principal amount),
plus accrued interest, if any, 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) if redeemed during the 12-month period beginning
October 1, of the years below:

<TABLE>
<CAPTION>
                Year                                  Percentage
                ----                                  ----------
<S>                                                   <C>
                2005                                   106.188%
                2006                                   104.125%
                2007                                   102.063%
                2008 and thereafter                    100.000%
</TABLE>

                  At any time, or from time to time, on or prior to October 1,
2003, the Company may, at its option, use all or any portion of the net cash
proceeds of one or more Public Equity Offerings (as defined below) to redeem up
to 35% of the aggregate principal amount of the Securities issued at a
redemption price equal to 112.375% of the principal amount thereof plus accrued
and unpaid interest thereon, if any, to the date of redemption; provided that at
least 65% of the aggregate principal amount of Securities initially issued
remains outstanding immediately after any such redemption. In order to effect
the foregoing redemption with the proceeds of any Public Equity Offering, the
Company shall make such redemption not more than 180 days after the consummation
of any such Public Equity Offering.

                  As used in the preceding paragraph, "Public Equity Offering"
means an underwritten public offering of the Company's Capital Stock (other than
Disqualified Stock) pursuant to a registration statement filed with the
Commission in accordance with the Securities Act or a firm commitment private
placement of Capital Stock (other than Disqualified Stock) pursuant to an
agreement that requires the registration of the resale of such Capital Stock (or
Capital Stock issued upon conversion thereof) contemporaneously with the
issuance thereof or as soon as practical thereafter.

                  In the case of any partial redemption, selection of the
Securities for redemption will be made by the Trustee (subject to DTC
procedures) on a pro rata basis, by lot or by such other method as the Trustee,
in its sole discretion, shall deem to be fair and appropriate (and which
complies with applicable legal and securities exchange requirements), although
no Security of $1,000 in original principal amount or less will be redeemed in
part. In the case of any partial redemption made with the proceeds of a Public
Equity Offering, selection of the Securities for redemption will be made by the
Trustee on a pro rata basis or on as nearly a pro rata basis as is practicable
(subject to DTC procedures), unless such method is otherwise prohibited. If any
Security is to be redeemed in part only, the notice of redemption relating to
such Security shall state the portion of the principal amount thereof to be
redeemed. Subject to DTC procedures, a new Security in principal amount equal to
the unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Security.

                                      A-8

<PAGE>   87

7.       Notice of Redemption

                  A 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 such Holder's registered address. Securities in denominations larger
than $1,000 may be redeemed in part but only in whole multiples of $1,000. 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.

8.       Put Provisions

                  Upon a Change of Control, any Holder of Securities will have
the right, subject to certain conditions, to cause the Company to repurchase all
or any part 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.

9.       Subordination

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

10.      Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of $1,000 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 of or exchange 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 period of 15 days before a selection of Securities to be
redeemed or 15 days before an interest payment date.

11.      Persons Deemed Owners

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

                                      A-9

<PAGE>   88

12.      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.

13.      Discharge and Defeasance

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

14.      Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or 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 Holder, the Company and the Trustee may 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 guarantees with respect to the Securities 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 Commission 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 Holder.

15.      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, upon declaration of
acceleration or otherwise, or failure by the Company and the Guarantors to
redeem or purchase Securities when required; (iii) failure by the Company or the
Guarantors to comply with the provisions of Section 5.01 of the Indenture; (iv)
failure by the Company, the Parent Guarantor or any Restricted Subsidiary to
comply with certain other sections of the Indenture; (v) failure by the Company
or any Subsidiary Guarantor to comply with other agreements in the Indenture or
the Securities, in certain cases subject to notice and lapse of time; (vi)
certain accelerations (including failure to pay within any grace period after
final maturity) of other Indebtedness of the Company if the amount accelerated
(or so unpaid) exceeds $10 million and the default continues for 10 days; (vii)
certain events of bankruptcy or insolvency with respect to the Company, any
Guarantor or any Foreign Significant Subsidiary; (viii) certain judgments or
decrees for the payment of money in excess of $10 million; and (ix) the Parent
Guarantee or any Subsidiary Guarantee is held to be unenforceable or is invalid
or ceases to be in full force and effect. If an Event of Default (other than
certain Events of Default specified in (vii) above) occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the Securities
may, by notice to the Company and, in the case of such Holders, to the Trustee,

                                      A-10

<PAGE>   89

declare the principal amount of and accrued interest on the Securities to be due
and payable immediately upon the occurrence of such Event of Default.

                  Holders 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 reasonable indemnity or security. 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 Holders notice of any continuing Default (except a Default in
payment of principal or interest) if it determines that withholding notice is in
the interest of the Holders.

16.      Trustee Dealings with the Company

                  Subject to certain limitations imposed by the Act, the
Trustee, 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.

17.      No Recourse Against Others

                  A director, officer, employee or stockholder, as such, of the
Company, any Guarantor or the Trustee shall not have any liability for any
obligations of the Company, any Guarantor or the Trustee 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 Holder waives and
releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.

18.      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.

19.      Abbreviations

                  Customary abbreviations may be used in the name of a Holder 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).

20.      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 Holders. No representation
is made as to the 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.

                                      A-11
<PAGE>   90

                  THE COMPANY WILL FURNISH TO ANY HOLDER, UPON WRITTEN REQUEST
AND WITHOUT CHARGE TO THE HOLDER, A COPY OF THE INDENTURE WHICH HAS IN IT THE
TEXT OF THIS SECURITY IN LARGER TYPE. REQUESTS MAY BE MADE TO: UNITED STATES CAN
COMPANY, 900 COMMERCE DRIVE, OAK BROOK, ILLINOIS 60521, ATTENTION: CHIEF
FINANCIAL OFFICER.

                                      A-12
<PAGE>   91

            [FORM OF NOTATION ON INITIAL NOTE RELATING TO GUARANTEE]

                          SENIOR SUBORDINATED GUARANTEE

                  U.S. CAN CORPORATION (the "Parent Guarantor") and MAY
VERPACKUNGEN HOLDING INC. (together with any other Subsidiary Guarantor, the
"Subsidiary Guarantors") have unconditionally guaranteed on a senior
subordinated basis (such guarantee by each Guarantor being referred to herein as
the "Guarantee") (i) the due and punctual payment of the principal of and
interest on the Securities, whether at maturity, by acceleration or otherwise,
the due and punctual payment of interest on the overdue principal and interest,
if any, on the Securities, to the extent lawful, and the due and punctual
performance of all other obligations of the Company to the Holders or the
Trustee all in accordance with the terms set forth in the Indenture and (ii) in
case of any extension of time of payment or renewal of any Securities or any of
such other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise.

                  The obligations of the Guarantors to the Holders and to the
Trustee pursuant to the Guarantee and the Indenture are expressly set forth and
are expressly subordinated and subject in right of payment to the prior payment
in full of all Senior Indebtedness of the Guarantors to the extent and in the
manner provided in Article 11 of the Indenture, and reference is hereby made to
such Indenture for the precise terms of the Guarantee therein made.

                  No director, officer, employee or stockholder, as such, of any
of the Guarantors shall have any liability under the Guarantee of such Guarantor
by reason of such person's status as director, officer, employee or stockholder.
Each Holder of a Security by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Guarantee.

                  The Guarantee shall not be valid or obligatory for any purpose
until the certificate of authentication on the Securities upon which the
Guarantee is noted shall have been executed by the Trustee under the Indenture
by the manual signature of one of its authorized signatories.

                                       U.S. CAN CORPORATION

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

                                       MAY VERPACKUNGEN HOLDING INC.

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

                                     A-13

<PAGE>   92

                                 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
as 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.

Signature Guaranty:
                         (Signature must be guaranteed by a member firm of the
                         New York Stock Exchange or a commercial bank or trust
                         company)

                  In connection with any transfer of any of the Securities
evidenced by this certificate occurring prior to the date that is two years
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:

(CHECK ONE BOX BELOW)

                  (1)    [ ]   to the Company or a subsidiary thereof

                  (2)    [ ]   to an institutional "accredited investor" (as
                               defined in rule 501(a)(1), (2), (3) or (7) under
                               the Securities Act of 1933, as amended) that has
                               furnished to the Holder a signed letter
                               containing certain representations and agreements
                               (the form of which letter can be obtained from
                               the Trustee)

                  (3)    [ ]   pursuant to effective registration statement
                               under the Securities Act of 1933, as amended

                  (4)    [ ]   inside the United States to a "qualified
                               institutional buyer" (as defined in Rule 144A
                               under the Securities Act of 1933, as amended)
                               that

                                      A-14

<PAGE>   93

                               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, as amended

                  (5)    [ ]   outside the United States in an offshore
                               transaction to a "foreign person" in accordance
                               with Rule 904 of Regulation S under the
                               Securities Act of 1933, as amended

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

                  (7)    [ ]   pursuant to another available exemption from the
                               registration requirements of the Securities Act
                               of 1933, as amended

                  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
(2), (5), (6) or (7) is checked, the Trustee may 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, as
amended, such as the exemption provided by Rule 144 under such Securities Act of
1933, as amended.

                                                     Signature

                                      A-15

<PAGE>   94

              TO BE COMPLETED BY PURCHASER IF (4) 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 ("Rule 144A")
under the Securities Act of 1933, as amended, 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.

Date:

                                               NOTICE:  To be executed by
                                                        an executive officer

                                      A-16

<PAGE>   95

                      [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 [at
                       Amount of decrease      Amount of Increase       Maturity] of this          Signature of
                      in Principal Amount     in Principal Amount        Global Security      authorized officer of
                     [at Maturity] of this   [at Maturity] of this       following such       Trustee or Securities
Date of Exchange        Global Security         Global Security       decrease or increase          Custodian
----------------     ---------------------   ---------------------    --------------------    ----------------------
<S>                    <C>                     <C>                      <C>                     <C>

</TABLE>

                                      A-17

<PAGE>   96

                       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 4.08 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 4.08 of the Indenture,
state the amount: $_________________

Date:
                                            (Sign exactly as your name appears
                                            on the other side of the Security)

Signature Guaranty:
                            (Signature must be guaranteed by a member firm of
                            the New York Stock Exchange or a commercial bank or
                            trust company)

                                      A-18

<PAGE>   97

                                                                       EXHIBIT B

                         [FORM OF FACE OF EXCHANGE NOTE]

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY 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 SUCCESSORS 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.

                            UNITED STATES CAN COMPANY

              Series B 12 3/8% Senior Subordinated Notes Due 2010

No.                                                         U.S. $175,000,000
                                                            CUSIP No.:

                  U.S. Can Corporation, a Delaware corporation, promises to pay
to CEDE & Co., or registered assigns, the principal sum of One Hundred
Seventy-Five Million Dollars ($175,000,000) on October 1, 2010.

                  Interest Payment Dates:  April 1 and October 1

                  Record Dates:  March 15 and September 15

                                      B-1

<PAGE>   98

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

Dated:                                       UNITED STATES CAN COMPANY

                                             By:
                                                --------------------------
                                                         President

                                             By:
                                                --------------------------
                                                         Secretary

                                      B-2
<PAGE>   99

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                                    BANK ONE TRUST COMPANY, N.A., as Trustee,
                                    certifies that this is one of the Securities
                                    referred to in the Indenture.

[seal]

                                    By:
                                       --------------------------
                                          Authorized Signatory

                                      B-3

<PAGE>   100

                     [FORM OF REVERSE SIDE OF EXCHANGE NOTE]

                            UNITED STATES CAN COMPANY

                Series B 12 3/8 Senior Subordinated Notes Due 2010

1.       Interest

                  United States Can Company, 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 1 and October 1 of each year. 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 the Issue Date. Interest will
be computed on the basis of a 360-day year of 12 30-day months. The Company
shall pay interest on overdue principal at the rate borne by the Securities plus
1% per annum, and it shall pay interest on overdue installments of interest at
the same rate to the extent lawful.

2.       Method of Payment

                  The Company, in accordance with Section 4.01 of the Indenture,
will pay interest on the Securities (except defaulted interest) to the persons
who are registered holders of Securities ("Holder" or "Holders") at the close of
business on the Record Date next preceding the interest payment date even if
Securities are cancelled after the Record Date and on or before the interest
payment date. Holders must surrender Securities to an office or agency where
Securities may be presented for payment (the "Paying Agent") to collect
principal payments. The Securities will be payable as to principal and interest
at the office or agency of the Company maintained for such purpose within the
City and State of New York, or, at the option of the Company, payment of
interest may be made by check mailed to the Holders at their addresses set forth
in the Securities register of Holders; provided that the Company will be
required to make, by wire transfer of immediately available funds to the
accounts specified by a Holder of at least $5 million aggregate principal amount
of Securities, all payments of principal of, premium, if any, and interest with
respect to such Holder's Securities if such Holder has provided wire transfer
instructions to the Company.

3.       Paying Agent and Registrar

                  Initially, Bank One Trust Company, N.A., a national banking
association ("Trustee"), will act as Paying Agent and the office or agency where
Securities may be presented for registration or transfer or for exchange (the
"Registrar").

4.       Indenture

                  The Company issued the Securities under an Indenture dated as
of October 4, 2000 (the "Indenture"), among the Company, the Guarantors 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

                                      B-4

<PAGE>   101

the Indenture and, to the extent required by any amendment to the Trust
Indenture Act of 1939 after such date, as amended from time to time (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
Holders are referred to the Indenture and the Act for a statement of those
terms.

                  The Securities are general unsecured obligations of the
Company limited to $275,000,000 aggregate principal amount of which $175,000,000
aggregate principal amount will be initially issued on the Closing Date (subject
to Section 2.07 of the Indenture). Subject to the conditions set forth in the
Indenture, the Company may issue up to an additional $100,000,000 aggregate
principal amount of Additional Notes. This Security is one of the Series B
12 3/8% Senior Subordinated Notes due 2010 (the "Exchange Notes") referred to in
the Indenture. The Securities include the 12 3/8% Senior Subordinated Notes due
2010 originally issued under the Indenture (the "Initial Notes"), the Additional
Notes and any Exchange Notes issued in exchange for the Initial Notes. The
Initial Notes, the Additional Notes and the Exchange Notes are treated as a
single class of securities under the Indenture. The Indenture imposes certain
limitations on the Company and the Restricted Subsidiaries, including the
Incurrence of additional Indebtedness, payment of dividends or other
distributions with respect to Capital Stock of the Company, sale of assets of
the Company or its Restricted Subsidiaries, and restrictions on the ability of
any Restricted Subsidiary to pay dividends or make any other distributions in
respect of its Capital Stock. In addition, the Indenture contains certain
covenants that, among other things, limit the ability of the Company and the
Guarantors to Incur Indebtedness which is senior to or ranks pari passu with the
Securities or the Guarantees, as the case may be, create certain Liens, or enter
into certain mergers and consolidations.

                  The payment of principal and interest on the Securities is
unconditionally guaranteed on a senior subordinated and unsecured basis by the
Guarantors.

5.       Optional Redemption

                  Except as set forth in paragraphs 6 and 7, the Securities may
not be redeemed prior to October 1, 2005. On and after that date, the Company
may redeem the Securities in whole at any time or in part from time to time at
the following redemption prices (expressed in percentages of principal amount),
plus accrued interest, if any, 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), if redeemed during the 12-month period beginning
October 1, of the years below:

<TABLE>
<CAPTION>
             Year                                         Percentage
             ----                                         ----------
<S>                                                       <C>
             2005                                          106.188%
             2006                                          104.125%
             2007                                          102.063%
             2008 and thereafter                           100.000%
</TABLE>

                  At any time, or from time to time, on or prior to October 1,
2003, the Company, at

                                      B-5

<PAGE>   102

its option, may use all or any portion of the net cash proceeds of one or more
Public Equity Offerings (as defined below) to redeem up to 35% of the aggregate
principal amount of the Securities issued at a redemption price equal to
112.375% of the principal amount thereof plus accrued and unpaid interest, if
any, to the date of redemption; provided that at least 65% of the aggregate
principal amount of Securities initially issued remains outstanding immediately
after any such redemption. In order to effect the foregoing redemption with the
proceeds of any Public Equity Offering, the Company shall make such redemption
not more than 180 days after the consummation of any such Public Equity
Offering.

                  As used in the preceding paragraph, "Public Equity Offering"
means an underwritten public offering of the Company's Capital Stock (other than
Disqualified Stock) pursuant to a registration statement filed with the
Commission in accordance with the Securities Act or a firm commitment private
placement of Capital Stock (other than Disqualified Stock) pursuant to an
agreement that requires the registration of the resale of such Capital Stock (or
Capital Stock issued upon conversion thereof) contemporaneously with the
issuance thereof or as soon as practical thereafter.

                  In the case of any partial redemption, selection of the
Securities for redemption will be made by the Trustee (subject to DTC
procedures) on a pro rata basis, by lot or by such other method as the Trustee,
in its sole discretion, shall deem to be fair and appropriate (and which
complies with applicable legal and securities exchange requirements), although
no Security of $1,000 in original principal amount or less will be redeemed in
part. In the case of any partial redemption made with the proceeds of a Public
Equity Offering, selection of the Securities for redemption will be made by the
Trustee on a pro rata basis or on as nearly a pro rata basis as is practicable
(subject to DTC procedures), unless such method is otherwise prohibited. If any
Security is to be redeemed in part only, the notice of redemption relating to
such Security shall state the portion of the principal amount thereof to be
redeemed. Subject to DTC procedures, a new Security in principal amount equal to
the unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Security.

6.       Notice of Redemption

                  A 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 such Holder's registered address. Securities in denominations larger
than $1,000 may be redeemed in part but only in whole multiples of $1,000. 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, subject to certain conditions, to cause the Company to repurchase all
or any part of the Securities of such Holder at a repurchase price equal to 101%
of the principal amount of the Securities to be

                                      B-6
<PAGE>   103

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, as
defined in the Indenture, and the Guarantees are subordinated to Senior
Indebtedness of the Guarantors, as defined in the Indenture. To the extent
provided in the Indenture, Senior Indebtedness or Senior Indebtedness of
Subsidiary Guarantors must be paid before the Securities may be paid. The
Company and the Guarantors agree, and each Holder by accepting a Security
agrees, to the subordination provisions contained in the Indenture and
authorizes the Trustee to give effect to such provisions 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 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 of or exchange 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 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 may
terminate some or all of its obligations under the Securities and the Indenture
if the Company deposits with the Trustee 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 or the Securities may be amended with the written consent of the
Holders of at least a majority in

                                      B-7

<PAGE>   104

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
Holder, the Company and the Trustee may 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 guarantees with respect to the
Securities 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 Commission 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 Holder.

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, upon declaration of
acceleration or otherwise, or failure by the Company and the Guarantors to
redeem or purchase Securities when required; (iii) failure by the Company or the
Guarantors to comply with the provisions of Section 5.01 of the Indenture; (iv)
failure by the Company, the Parent Guarantor or any Restricted Subsidiary to
comply with certain other sections of the Indenture; (v) failure by the Company,
the Parent Guarantor 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; (vi) certain accelerations (including failure to pay
within any grace period after final maturity) of other Indebtedness of the
Company if the amount accelerated (or so unpaid) exceeds $10 million and
continue for 10 days; (vii) certain events of bankruptcy or insolvency with
respect to the Company, any Guarantor or any Foreign Significant Subsidiary;
(viii) certain judgments or decrees for the payment of money in excess of $10
million; and (ix) the Parent Guarantee or any Subsidiary Guarantee is held
unenforceable or invalid or ceasing to be in full force and effect. If an Event
of Default (other than an Event of Default specified in (vii) above) occurs and
is continuing, the Trustee or the Holders of at least 25% in principal amount of
the Securities may, by notice to the Company and, in the case of such Holders,
to the Trustee, declare the principal amount of and accrued interest on the
Securities to be due and payable immediately upon the occurrence of such Events
of Default.

                  Holders 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 reasonable indemnity or security. 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 Holders notice of any continuing Default (except a Default in
payment of principal or interest) if it determines that withholding notice is in
the interest of the Holders.

15.      Trustee Dealings with the Company

                  Subject to certain limitations imposed by the Act, the
Trustee, 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

                                      B-8

<PAGE>   105

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, any Guarantor or the Trustee shall not have any liability for any
obligations of the Company, any Guarantor or the Trustee 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 Holder 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 Holder 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 Holders. No representation
is made as to the 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.

                  THE COMPANY WILL FURNISH TO ANY HOLDER, UPON WRITTEN REQUEST
AND WITHOUT CHARGE TO THE HOLDER, A COPY OF THE INDENTURE WHICH HAS IN IT THE
TEXT OF THIS SECURITY IN LARGER TYPE. REQUESTS MAY BE MADE TO: UNITED STATES CAN
COMPANY, 900 COMMERCE DRIVE, OAK BROOK, ILLINOIS 60521, ATTENTION: CHIEF
FINANCIAL OFFICER.

                                      B-9

<PAGE>   106

            [FORM OF NOTATION ON EXCHANGE NOTE RELATING TO GUARANTEE]

                          SENIOR SUBORDINATED GUARANTEE

                  U.S. CAN CORPORATION (the "Parent Guarantor") and MAY
VERPACKUNGEN HOLDING INC. (together with any other Subsidiary Guarantor, the
"Subsidiary Guarantors") have unconditionally guaranteed on a senior
subordinated basis (such guaranty by each Guarantor being referred to herein as
the "Guarantee") (i) the due and punctual payment of the principal of and
interest on the Securities, whether at maturity, by acceleration or otherwise,
the due and punctual payment of interest on the overdue principal and interest,
if any, on the Securities, to the extent lawful, and the due and punctual
performance of all other obligations of the Company to the Holders or the
Trustee all in accordance with the terms set forth in the Indenture and (ii) in
case of any extension of time of payment or renewal of any Securities or any of
such other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise.

                  The obligations of the Guarantors to the Holders and to the
Trustee pursuant to the Guarantee and the Indenture are expressly set forth and
are expressly subordinated and subject in right of payment to the prior payment
in full of all Senior Indebtedness of Guarantors to the extent and in the manner
provided in Article 11 of the Indenture, and reference is hereby made to such
Indenture for the precise terms of the Guarantee therein made.

                  No director, officer, employee or stockholder, as such, of any
of the Guarantors shall have any liability under the Guarantee of such Guarantor
by reason of such person's status as director, officer, employee or stockholder.
Each Holder of a Security by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Guarantee.

                  The Guarantee shall not be valid or obligatory for any purpose
until the certificate of authentication on the Securities upon which the
Guarantee is noted shall have been executed by the Trustee under the Indenture
by the manual signature of one of its authorized signatories.

                                           U.S. CAN CORPORATION

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

                                           MAY VERPACKUNGEN HOLDING INC.

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

                                      B-10

<PAGE>   107

                                 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
as 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.

Signature Guaranty:
                         (Signature must be guaranteed by a member firm of the
                         New York Stock Exchange or a commercial bank or trust
                         company)

                                      B-11

<PAGE>   108

                      [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>

                        Amount of decrease     Amount of Increase        Principal Amount [at          Signature of
                       in Principal Amount     in Principal Amount     Maturity] of this Global   authorized officer of
                      [at Maturity] of this   [at Maturity] of this    Security following such    Trustee or Securities
Date of Exchange         Global Security         Global Security         decrease or increase           Custodian
----------------      ---------------------   ---------------------    ------------------------   ---------------------
<S>                   <C>                     <C>                      <C>                        <C>

</TABLE>

                                      B-12

<PAGE>   109

                       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 4.08 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 4.08 of the Indenture,
state the amount: $_________________

Date:

                                    (Sign exactly as your name appears on the
                                    other side of the Security)

Signature Guaranty:
                            (Signature must be guaranteed by a member firm of
                            the New York Stock Exchange or a commercial bank or
                            trust company)

                                      B-13<PAGE>   1
                                                                    EXHIBIT 10.1

                                CREDIT AGREEMENT

                                      among

                           UNITED STATES CAN COMPANY,
                                  as Borrower,

                              U.S. CAN CORPORATION

                                       and

                 DOMESTIC SUBSIDIARIES OF U.S. CAN CORPORATION,
                             as Domestic Guarantors,

                         THE LENDERS IDENTIFIED HEREIN,

                             BANK OF AMERICA, N.A.,
                            as Administrative Agent,

                          CITICORP NORTH AMERICA, INC.,
                              as Syndication Agent

                                       and

                                  BANK ONE, NA
                              (MAIN OFFICE CHICAGO)
                             as Documentation Agent

                           DATED AS OF OCTOBER 4, 2000

                                  Arranged by:

                         BANC OF AMERICA SECURITIES LLC

                                       and

                           SALOMON SMITH BARNEY INC.,

                           as Joint-Lead Arrangers and
                               Joint-Book Managers

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                             <C>
SECTION 1 DEFINITIONS AND ACCOUNTING TERMS........................................................................1
         1.1    Definitions.......................................................................................1
         1.2    Computation of Time Periods and Other Definitional Provisions....................................33
         1.3    Accounting Terms; Calculations...................................................................33
         1.4    Time.............................................................................................34

SECTION 2 CREDIT FACILITIES......................................................................................34
         2.1    Revolving Loans..................................................................................34
         2.2    Letter of Credit Subfacility.....................................................................36
         2.3    Tranche A Term Loans.............................................................................42
         2.4    Tranche B Term Loans.............................................................................44
         2.5    Swing Line Loans Subfacility.....................................................................46
         2.6    Foreign Currency Loans Subfacility...............................................................47
         2.7    Continuations and Conversions....................................................................52
         2.8    Minimum Amounts..................................................................................53
         2.9    Currency Equivalents.............................................................................53

SECTION 3 GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT...........................................54
         3.1    Interest.........................................................................................54
         3.2    Place and Manner of Payments.....................................................................54
         3.3    Prepayments......................................................................................55
         3.4    Fees.............................................................................................57
         3.5    Payment in Full at Maturity......................................................................58
         3.6    Computations of Interest and Fees................................................................59
         3.7    Pro Rata Treatment...............................................................................60
         3.8    Sharing of Payments..............................................................................61
         3.9    Capital Adequacy.................................................................................62
         3.10   Inability To Determine Interest Rate.............................................................62
         3.11   Illegality.......................................................................................63
         3.12   Requirements of Law..............................................................................63
         3.13   Taxes............................................................................................64
         3.14   Indemnity........................................................................................67
         3.15   Substitution of Lender; Relocation...............................................................67
         3.16   All Borrowers Treated Equally....................................................................68
         3.17   Limitation on Making Claims......................................................................68

SECTION 4 DOMESTIC GUARANTY......................................................................................68
         4.1    Guaranty of Payment..............................................................................68
         4.2    Obligations Unconditional........................................................................69
         4.3    Modifications....................................................................................70
         4.4    Waiver of Rights.................................................................................70
         4.5    Reinstatement....................................................................................70
         4.6    Remedies.........................................................................................71
         4.7    Limitation of Guaranty...........................................................................71
         4.8    Rights of Contribution...........................................................................71
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>                                                                                                             <C>
SECTION 5 CONDITIONS PRECEDENT...................................................................................71
         5.1    Closing Conditions...............................................................................71
         5.2    Conditions to All Extensions of Credit...........................................................78

SECTION 6 REPRESENTATIONS AND WARRANTIES.........................................................................80
         6.1    Financial Condition..............................................................................80
         6.2    No Material Change...............................................................................80
         6.3    Organization and Good Standing...................................................................80
         6.4    Due Authorization................................................................................80
         6.5    No Conflicts.....................................................................................81
         6.6    Consents.........................................................................................81
         6.7    Enforceable Obligations..........................................................................81
         6.8    No Default.......................................................................................81
         6.9    Ownership........................................................................................82
         6.10   Indebtedness.....................................................................................82
         6.11   Litigation.......................................................................................82
         6.12   Taxes............................................................................................82
         6.13   Compliance with Law..............................................................................82
         6.14   ERISA............................................................................................82
         6.15   Subsidiaries.....................................................................................84
         6.16   Use of Proceeds..................................................................................84
         6.17   Government Regulation............................................................................84
         6.18   Environmental Matters............................................................................85
         6.19   Intellectual Property............................................................................86
         6.20   Solvency.........................................................................................87
         6.21   Investments......................................................................................87
         6.22   Disclosure; Projections..........................................................................87
         6.23   Licenses, etc....................................................................................87
         6.24   No Burdensome Restrictions.......................................................................87
         6.25   Broker's Fees....................................................................................87
         6.26   Labor Matters....................................................................................88
         6.27   Location of Collateral...........................................................................88
         6.28   Collateral Documents.............................................................................88
         6.29   Insurance........................................................................................88
         6.30   Representations and Warranties from Merger Agreement.............................................88
         6.31   Immunity.........................................................................................88
         6.32   Proper Legal Form................................................................................89
         6.33   Material Contracts...............................................................................89

SECTION 7 AFFIRMATIVE COVENANTS..................................................................................89
         7.1    Information Covenants............................................................................89
         7.2    Preservation of Existence and Franchises.........................................................94
         7.3    Books and Records................................................................................94
         7.4    Compliance with Law..............................................................................94
         7.5    Payment of Taxes and Other Indebtedness..........................................................94
</TABLE>

                                       ii
<PAGE>   4

<TABLE>
<S>                                                                                                             <C>
         7.6    Insurance/Condemnation...........................................................................95
         7.7    Maintenance of Property..........................................................................96
         7.8    Performance of Obligations.......................................................................96
         7.9    Use of Proceeds..................................................................................96
         7.10   Audits/Inspections...............................................................................97
         7.11   Financial Covenants..............................................................................97
         7.12   Collateral.......................................................................................98
         7.13   Additional Credit Parties........................................................................98
         7.14   Third Party Consents............................................................................100
         7.15   Interest Rate Protection Agreements.............................................................100
         7.16   Post-Closing Deliveries.........................................................................100

SECTION 8 NEGATIVE COVENANTS....................................................................................101
         8.1    Indebtedness....................................................................................102
         8.2    Liens...........................................................................................103
         8.3    Nature of Business..............................................................................104
         8.4    Consolidation and Merger........................................................................104
         8.5    Sale or Lease of Assets.........................................................................104
         8.6    Advances, Investments and Loans.................................................................105
         8.7    Restricted Payments.............................................................................105
         8.8    Transactions with Affiliates....................................................................106
         8.9    Fiscal Year; Organizational Documents...........................................................107
         8.10   Other Indebtedness; Material Agreements.........................................................107
         8.11   Limitations.....................................................................................107
         8.12   Sale Leasebacks.................................................................................108
         8.13   Negative Pledges................................................................................108
         8.14   Capital Expenditures............................................................................109
         8.15   Parent..........................................................................................109
         8.16   Management Fees.................................................................................109

SECTION 9 EVENTS OF DEFAULT.....................................................................................110
         9.1    Events of Default...............................................................................110
         9.2    Acceleration; Remedies..........................................................................113
         9.3    Allocation of Payments After Event of Default...................................................114

SECTION 10 AGENCY PROVISIONS....................................................................................115
         10.1   Appointment.....................................................................................115
         10.2   Delegation of Duties............................................................................116
         10.3   Exculpatory Provisions..........................................................................116
         10.4   Reliance on Communications......................................................................116
         10.5   Notice of Default...............................................................................117
         10.6   Non-Reliance on Agents and Other Lenders........................................................117
         10.7   Indemnification.................................................................................118
         10.8   Agents in Their Individual Capacity.............................................................118
         10.9   Successor Agent.................................................................................118
</TABLE>

                                      iii
<PAGE>   5

<TABLE>
<S>                                                                                                             <C>
SECTION 11 MISCELLANEOUS........................................................................................119
         11.1   Notices.........................................................................................119
         11.2   Right of Set-Off................................................................................119
         11.3   Benefit of Agreement............................................................................120
         11.4   No Waiver; Remedies Cumulative..................................................................122
         11.5   Payment of Expenses; Indemnification............................................................123
         11.6   Amendments, Waivers and Consents................................................................123
         11.7   Counterparts/Telecopy...........................................................................125
         11.8   Headings........................................................................................125
         11.9   Defaulting Lender...............................................................................125
         11.10  Survival of Indemnification and Representations and Warranties..................................126
         11.11  Governing Law; Venue; Foreign Credit Parties....................................................126
         11.12  Waiver of Jury Trial; Waiver of Consequential Damages...........................................127
         11.13  Judgment Currency...............................................................................128
         11.14  Severability....................................................................................128
         11.15  Entirety........................................................................................128
         11.16  Binding Effect..................................................................................129
         11.17  Confidentiality.................................................................................129
         11.18  Further Assurances..............................................................................130
</TABLE>

                                       iv
<PAGE>   6

SCHEDULES

<TABLE>
<S>                        <C>
Schedule 1.1(a)            Commitment Percentages
Schedule 1.1(b)            Pro Forma EBITDA Adjustments
Schedule 2.2(c)            Existing Letters of Credit
Schedule 2.6               Foreign Currency Lenders
Schedule 3.1               MLA Costs
Schedule 5.1(f)(i)         Mortgaged Properties
Schedule 5.1(v)            Contractual Restrictions
Schedule 6.12              Tax Assessments
Schedule 6.15              Subsidiaries
Schedule 6.19              Intellectual Property
Schedule 6.22              Supplemental Disclosure to Offering Memorandum
Schedule 6.26              Labor Matters
Schedule 6.27(a)           Real Property Locations
Schedule 6.27(b)           Personal Property Locations
Schedule 6.27(c)           Chief Executive Office
Schedule 6.29              Insurance
Schedule 6.33              Material Contracts
Schedule 8.1               Indebtedness
Schedule 8.2               Liens
Schedule 8.6               Investments
Schedule 8.11              Existing Restrictions
Schedule 11.1              Notices
</TABLE>

EXHIBITS

<TABLE>
<S>                        <C>
Exhibit 2.1(b)             Form of Notice of Borrowing
Exhibit 2.1(e)             Form of Revolving Note
Exhibit 2.3(d)             Form of Tranche A Term Note
Exhibit 2.4(d)             Form of Tranche B Term Note
Exhibit 2.5(b)             Form of Swing Line Loan Request
Exhibit 2.5(d)             Form of Swing Line Loan Note
Exhibit 2.6(b)             Form of Foreign Currency Notice of Borrowing
Exhibit 2.6(f)             Form of Foreign Joinder Agreement
Exhibit 2.7                Form of Notice of Continuation/Conversion
Exhibit 7.1(d)             Form of Officer's Certificate
Exhibit 7.13(a)            Form of Joinder Agreement
Exhibit 11.3(b)            Form of Assignment Agreement
</TABLE>

                                       v
<PAGE>   7

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT (this "Credit Agreement") is entered into as of
October 4, 2000 among UNITED STATES CAN COMPANY, a Delaware corporation (the
"Borrower"), U.S. CAN CORPORATION, a Delaware corporation (the "Parent"), each
of the Domestic Subsidiaries (as defined below) of the Parent, the Lenders (as
defined herein), BANK OF AMERICA, N.A., as Administrative Agent for the Lenders
(in such capacity, the "Administrative Agent"), CITICORP NORTH AMERICA, INC., as
Syndication Agent for the Lenders (in such capacity, the "Syndication Agent")
and BANK ONE, NA (Main Office Chicago), as Documentation Agent for the Lenders.

                                    RECITALS

         WHEREAS, the Borrower has requested that the Lenders provide credit
facilities in an aggregate amount of $400 million (the "Credit Facilities") for
the purposes hereinafter set forth; and

         WHEREAS, the Lenders have agreed to make the requested Credit
Facilities available to the Borrower on the terms and conditions hereinafter set
forth.

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                                    SECTION 1
                        DEFINITIONS AND ACCOUNTING TERMS

         1.1 DEFINITIONS.

         As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires. Defined terms herein shall
include in the singular number the plural and in the plural the singular:

                  "Acquisition" means the acquisition by any Person of (a) the
         Capital Stock of another Person (b) all or substantially all of the
         assets of another Person or (c) all or substantially all of a line of
         business of another Person, in each case whether or not involving a
         merger or consolidation with such other Person.

                  "Additional Domestic Credit Party" means each Person that
         becomes a Domestic Guarantor after the Closing Date, as provided in
         Section 7.13(a).

                  "Adjusted Base Rate" means the Base Rate plus the Applicable
         Percentage.

                  "Adjusted Eurocurrency Rate" means the Eurocurrency Rate plus
         the Applicable Percentage.

                                       1

<PAGE>   8

                  "Adjusted Pro Forma Consolidated EBITDA" has the meaning set
         forth in Section 5.1(o).

                  "Adjusted Pro Forma Financial Statements" has the meaning set
         forth in Section 5.1(c).

                  "Administrative Agent" shall have the meaning assigned to such
         term in the heading hereof or any successor administrative agent
         appointed pursuant to Section 10.9.

                  "Agency Services Address" means Bank of America, N.A., Agency
         Management 101 N. Tryon Street, 15th Floor, Charlotte, North Carolina
         28255 Attn: Agency Services, or such other address as may be identified
         by written notice from the Administrative Agent to the Borrower.

                  "Agents" mean the Administrative Agent, the Syndication Agent,
         the Collateral Agent and any successors and assigns in such capacity.

                  "Affiliate" means, with respect to any Person, any other
         Person directly or indirectly controlling (including but not limited to
         all directors and officers of such Person), controlled by or under
         direct or indirect common control with such Person. A Person shall be
         deemed to control a corporation if such Person possesses, directly or
         indirectly, the power (i) to vote 10% or more of the securities having
         ordinary voting power for the election of directors of such corporation
         or (ii) to direct or cause direction of the management and policies of
         such corporation, whether through the ownership of voting securities,
         by contract or otherwise.

                  "Annualized Adjustments" means that, subsequent to the Closing
         Date, the Interest Coverage Ratio and the Fixed Charge Coverage Ratio
         shall be calculated using the adjustments and assumptions set forth
         below:

                  Interest Expense and Cash Taxes will be calculated commencing
         after the Closing Date as follows:

                           (a) for the partial fiscal quarter that occurs
                  immediately subsequent to the Closing Date and for the first
                  three full fiscal quarters subsequent to the Closing Date,
                  Interest Expense and Cash Taxes, for the quarter ending on
                  such date, shall be multiplied times a ratio equal to (i) 365
                  divided by (ii) the number of days elapsed since the Closing
                  Date until the last day of the quarter for which such
                  calculation is being made; and

                           (b) for the fourth full fiscal quarter subsequent to
                  the Closing Date and each fiscal quarter end thereafter,
                  Interest Expense and Cash Taxes shall be the actual amounts
                  for the four quarter period ending on such date.

                                       2
<PAGE>   9

                  "Applicable Percentage" means:

                           (a) for Revolving Loans, Tranche A Term Loans and
                  Letter of Credit Fees, the appropriate applicable percentages
                  corresponding to the Leverage Ratio in effect as of the most
                  recent Calculation Date as shown below:

<TABLE>
<CAPTION>

                                                              Applicable Percentage for Revolving Loans
                                                                      and Tranche A Term Loans              Applicable
                                                             ------------------------------------------   Percentage for
                    Pricing              Leverage                Eurocurrency                             Letter of Credit
                     Level                Ratio                     Loans           Base Rate Loans             Fees
                    -------              --------                ------------       ---------------       ----------------
<S>                              <C>                         <C>                   <C>                   <C>
                       I         > or equal to 4.75 to 1.0          3.25%                2.25%                 3.25%

                      II         < 4.75 to 1.0 but                  3.00%                2.00%                 3.00%
                                   > or equal to 4.50 to 1.0

                      III        < 4.50 to 1.0 but                  2.75%                1.75%                 2.75%
                                   > or equal to 4.0 to 1.0

                      IV         < 4.0 to 1.0 but                   2.50%                1.50%                 2.50%
                                   > or equal to 3.50 to 1.0

                       V         < 3.50 to 1.00                     2.25%                1.25%                 2.25%

</TABLE>

                           The Applicable Percentage for Revolving Loans,
                  Tranche A Term Loans and Letter of Credit Fees shall, in each
                  case, be determined and adjusted quarterly on the date (each a
                  "Calculation Date") five Business Days after the date by which
                  the Borrower is required to provide the Officer's Compliance
                  Certificate; provided that the Applicable Percentage for
                  Revolving Loans, Tranche A Term Loans and Letter of Credit
                  Fees shall be based on Pricing Level I (as shown above) and
                  shall remain at Pricing Level I until the first Calculation
                  Date subsequent to March 31, 2001 and thereafter, such
                  Applicable Percentage shall be determined by the then current
                  Leverage Ratio; and provided further that if the Borrower
                  fails to provide the Officer's Compliance Certificate on or
                  before the most recent Calculation Date, the Applicable
                  Percentage for Revolving Loans, Tranche A Term Loans and
                  Letter of Credit Fees from such Calculation Date shall be
                  based on Pricing Level I until such time that an appropriate
                  Officer's Compliance Certificate is provided whereupon such
                  Applicable Percentage shall be determined by the then current
                  Leverage Ratio. Each such Applicable Percentage shall be
                  effective from one Calculation Date until the next Calculation
                  Date except as set forth in the prior sentence.

                           (b) for Tranche B Term Loans, 3.50% for Tranche B
                  Term Loans that are Eurocurrency Loans and 2.50% for Tranche B
                  Term Loans that are Base Rate Loans; provided that if the
                  Borrower has a Debt Rating of BB or better from S&P and a Debt
                  Rating of Ba2 or better from Moody's, 3.25% for Tranche B Term
                  Loans that are Eurocurrency Loans and 2.25% for Tranche B Term
                  Loans that are Base Rate Loans. The Applicable Percentage for
                  Tranche B Term Loans shall be adjusted on the first Business
                  Day following an applicable change in the S&P or Moody's
                  rating.

                                       3
<PAGE>   10

                  Any adjustment in the Applicable Percentage shall be
         applicable to all existing Revolving Loans, Tranche A Term Loans,
         Tranche B Term Loans and Letters of Credit as well as any new Revolving
         Loans made or Letters of Credit issued.

                  At the time the Officer's Certificate is required to be
         delivered pursuant to Section 7.1(d) or immediately upon any change in
         the Debt Rating, the Borrower shall promptly deliver to the
         Administrative Agent, at the address set forth on Schedule 11.1 and at
         the Agency Services Address, information regarding any change in the
         Leverage Ratio or any change in the Debt Rating that would change the
         then existing Pricing Level or calculation of Applicable Percentage.

                  "Asset Disposition" means the disposition of any or all of the
         assets (or the sale of the stock of a Subsidiary) of a Credit Party or
         any of its Subsidiaries whether by sale, lease, transfer or otherwise
         unless permitted by Section 8.5.

                  "Assignment and Acceptance" means an Assignment and Acceptance
         entered into pursuant to the terms of Section 11.3(b) in the form of
         Exhibit 11.3(b).

                  "Bank of America" means Bank of America, N.A., and its
         successors and/or assigns.

                  "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
         United States Code, as amended, modified, succeeded or replaced from
         time to time.

                  "BAS" means Banc of America Securities LLC, its successors
         and/or assigns.

                  "Base Capital Expenditures" means Capital Expenditures for
         maintenance purposes in an amount not to exceed $8,000,000 during any
         twelve-month period.

                  "Base Rate" means, for any day, the rate per annum (rounded
         upwards, if necessary, to the nearest whole multiple of 1/100 of 1%)
         equal to the greater of (a) the Federal Funds Rate in effect on such
         day plus 1/2 of 1% or (b) the Prime Rate in effect on such day. If for
         any reason the Administrative Agent shall have determined (which
         determination shall be conclusive absent demonstrable error) that it is
         unable after due inquiry to ascertain the Federal Funds Rate for any
         reason, including the inability or failure of the Administrative Agent
         to obtain sufficient quotations in accordance with the terms hereof,
         the Base Rate shall be determined without regard to clause (a) of the
         first sentence of this definition until the circumstances giving rise
         to such inability no longer exist. Any change in the Base Rate due to a
         change in the Prime Rate or the Federal Funds Rate shall be effective
         on the effective date of such change in the Prime Rate or the Federal
         Funds Rate, respectively.

                  "Base Rate Loan" means any Loan bearing interest at a rate
         determined by reference to the Base Rate.

                                       4
<PAGE>   11

                  "Borrower" means United States Can Company, a Delaware
         corporation, together with any successors and permitted assigns.

                  "Bridge Fee Letter" means that certain letter agreement, dated
         as of July 27, 2000, among the Sponsor , Pac Packaging, Citicorp, SSB
         and Banc of America Bridge LLC, as amended, modified, supplemented or
         extended from time to time.

                  "Business Day" means any day other than a Saturday, a Sunday,
         a legal holiday or a day on which banking institutions are authorized
         or required by law or other governmental action to close in San
         Francisco, California or New York, New York; provided that (a) in the
         case of Eurocurrency Loans, such day is also a day on which dealings
         between banks are carried on in Dollar deposits in the London interbank
         market and (b) in the case of Loans made in a Foreign Currency, such
         day is also a day on which dealings between banks, in the applicable
         country with respect to such Foreign Currency, are carried on in such
         Foreign Currency.

                  "Businesses" has the meaning set forth in Section 6.18.

                  "Calculation Date" has the meaning set forth in the definition
         of Applicable Percentage.

                  "Capital Expenditures" means all expenditures of the Credit
         Parties and their Subsidiaries which, in accordance with GAAP, would be
         classified as capital expenditures, including, without limitation,
         Capital Leases.

                  "Capital Lease" means, as applied to any Person, any lease of
         any property (whether real, personal or mixed) by that Person as lessee
         which, in accordance with GAAP, is or should be accounted for as a
         capital lease on the balance sheet of that Person.

                  "Capital Stock" means (a) in the case of a corporation, all
         classes of capital stock of such corporation, (b) in the case of a
         partnership, partnership interests (whether general or limited), (c) in
         the case of a limited liability company, membership interests and (d)
         any other interest or participation that confers on a Person the right
         to receive a share of the profits and losses of, or distributions of
         assets of, the issuing Person.

                  "Cash Equivalents" means (a) securities issued or directly and
         fully guaranteed or insured by the United States of America or any
         agency or instrumentality thereof (provided that the full faith and
         credit of the United States of America is pledged in support thereof)
         having maturities of not more than twelve months from the date of
         acquisition, (b) Dollar denominated (or with respect to Foreign
         Subsidiaries, Dollar denominated and non-Dollar denominated) time
         deposits and certificates of deposit of (i) any Lender, (ii) any
         domestic (or with respect to Foreign Subsidiaries, any domestic or
         non-domestic) commercial bank of recognized standing having capital and
         surplus in excess of $500,000,000 or (iii) any bank whose short-term
         commercial paper rating from S&P is at least A-1 or the equivalent
         thereof or from Moody's is at least P-1 or the

                                       5
<PAGE>   12

         equivalent thereof (any such bank being an "Approved Bank"), in each
         case with maturities of not more than one year from the date of
         acquisition, (c) commercial paper and variable or fixed rate notes
         issued by any Approved Bank (or by the parent company thereof) or any
         variable rate notes issued by, or guaranteed by, any domestic
         corporation rated A-1 (or the equivalent thereof) or better by S&P or
         P-1 (or the equivalent thereof) or better by Moody's and maturing
         within one year of the date of acquisition, (d) repurchase agreements
         with a bank or trust company (including any of the Lenders) or
         recognized securities dealer having capital and surplus in excess of
         $500,000,000 for direct obligations issued by or fully guaranteed by
         the United States of America in which a Domestic Credit Party shall
         have a perfected first priority security interest (subject to no other
         Liens) and having, on the date of purchase thereof, a fair market value
         of at least 100% of the amount of the repurchase obligations and (e)
         Investments, classified in accordance with GAAP as current assets, in
         money market investment programs registered under the Investment
         Company Act of 1940, as amended, which are administered by reputable
         financial institutions having capital of at least $500,000,000 and the
         portfolios of which consist substantially of Investments of the
         character described in the foregoing subdivisions (a) through (d).

                  "Cash Restructuring Expenditures" means, for any period, any
         cash losses associated with the Restructuring Charges that were
         actually paid in cash during such period, all as determined in
         accordance with GAAP; provided, however, cash losses associated with
         the reserve established for Restructuring Charges existing on the
         Closing Date (such reserve not to exceed the actual amount of such
         Restructuring Charges up to a maximum amount equal to $20,000,000)
         shall be excluded from Cash Restructuring Expenditures when such losses
         are actually paid in cash.

                  "Cash Restructuring Proceeds" means, for any period, net cash
         proceeds actually received by a Credit Party or any of its Subsidiaries
         in connection with a plant closing or consolidation associated with the
         Restructuring Charges made during such period; provided that the total
         amount of such net cash proceeds shall be no greater than the lesser of
         (a) the related cash costs incurred and included in the Restructuring
         Charges used in the calculation of EBITDA in connection with such plant
         closing or consolidation during such period and (b) $10,000,000 for all
         such plant closings or consolidations during such period.

                  "Cash Taxes" means total federal, state, foreign or other
         income or franchise taxes, paid in cash, of the Credit Parties and
         their Subsidiaries on a consolidated basis.

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

                  (a) prior to a Public Equity Issuance, (i) the Sponsor shall
         fail to own beneficially, directly or indirectly, at least 40% of the
         outstanding Voting Stock of the Parent or (ii) any Person shall own a
         greater percentage of the outstanding Voting Stock of the Parent than
         the Sponsor, in each case after giving effect to the conversion and
         exercise of all outstanding warrants, options and other securities of
         the Parent,

                                       6
<PAGE>   13

         convertible into or exercisable for Voting Stock of the Parent (whether
         or not such securities are then currently convertible or exercisable);
         or

                  (b) subsequent to a Public Equity Issuance, (i) the Sponsor
         shall fail to own beneficially, directly or indirectly, at least 30% of
         the outstanding Voting Stock of the Parent or (ii) any Person shall own
         a greater percentage of the outstanding Voting Stock of the Parent than
         the Sponsor, in each case after giving effect to the conversion and
         exercise of all outstanding warrants, options and other securities of
         the Parent, convertible into or exercisable for Voting Stock of the
         Parent (whether or not such securities are then currently convertible
         or exercisable); or

                  (c) during any period of two consecutive calendar years,
         individuals who at the beginning of such period constituted the board
         of directors of the Parent together with any new members of such board
         of directors (i) whose elections by such board of directors or whose
         nomination for election by the stockholders of the Parent was approved
         by a vote of a majority of the members of such board of directors then
         still in office who either were directors at the beginning of such
         period or whose election or nomination for election was previously so
         approved or (ii) elected by the Sponsor, cease for any reason to
         constitute a majority of the directors of the Parent then in office; or

                  (d) the Parent shall fail to own 100% of the outstanding
         Voting Stock of the Borrower after giving effect to the conversion and
         exercise of all outstanding warrants, options and other securities of
         the Borrower, convertible into or exercisable for Voting Stock of the
         Borrower (whether or not such securities are then currently convertible
         or exercisable); or

                  (e) a "change of control" (as defined in the Subordinated Loan
         Documents) occurs; or

                  (f) a "change of control" (as defined in any Indebtedness of a
         Credit Party or a Subsidiary incurred pursuant to Section 8.1(m)) to
         the extent that such "change of control" causes the holder of such
         Indebtedness to demand payment thereof or to cause any payment to be
         made with respect thereto.

                  "Citicorp" means Citicorp North America, Inc., and its
         successors and/or assigns.

                  "Closing Date" means the date hereof.

                  "Code" means the Internal Revenue Code of 1986, as amended,
         modified, succeeded or replaced from time to time.

                  "Collateral" means a collective reference to the collateral
         which is identified in, and at any time will be covered by, the
         Collateral Documents.

                  "Collateral Agent" means Bank of America or any successor
         collateral agent appointed pursuant to Section 10.9.

                                       7
<PAGE>   14

                  "Collateral Documents" means a collective reference to the
         Security Agreement, the Pledge Agreement, the Mortgages, any collateral
         document executed by a Foreign Credit Party and such other documents
         executed and delivered in connection with the attachment and perfection
         of the Collateral Agent's security interests and liens arising
         thereunder, including without limitation, the Mortgage Policies, UCC
         financing statements and patent and trademark filings.

                  "Commitment Fees" means the fees payable to the Lenders
         pursuant to Section 3.4(a).

                  "Commitment Letter" means that certain commitment letter dated
         as of July 27, 2000 among the Sponsor, Pac Packaging, Bank of America,
         BAS, Citicorp and SSB, as amended, modified, supplemented or extended
         from time to time.

                  "Commitments" means the commitment of each Lender with respect
         to the Revolving Committed Amount, the Tranche A Term Loan Committed
         Amount and the Tranche B Term Loan Committed Amount, the commitment of
         the Swing Line Lender with respect to the Swing Line Committed Amount
         and the commitment of each Foreign Currency Lender with respect to the
         Foreign Currency Committed Amount.

                  "Credit Documents" means a collective reference to this Credit
         Agreement, the Notes, the LOC Documents, each Joinder Agreement, each
         Foreign Joinder Agreement, each Foreign Guaranty Agreement, the Fee
         Letter, the Collateral Documents, and all other related agreements and
         documents issued or delivered hereunder or thereunder or pursuant
         hereto or thereto (in each case as the same may be amended, modified,
         restated, supplemented, extended, renewed or replaced from time to
         time), and "Credit Document" means any one of them.

                  "Credit Facilities" has the meaning set forth in the Recitals
         hereof.

                  "Credit Parties" means the Domestic Credit Parties and the
         Foreign Credit Parties and "Credit Party" means any one of them.

                  "Credit Party Obligations" means, without duplication, the
         Domestic Credit Party Obligations and the Foreign Credit Party
         Obligations.

                  "Debt Issuance" means the issuance of any Indebtedness for
         borrowed money by a Credit Party or any of its Subsidiaries, other than
         Indebtedness permitted by Section 8.1.

                  "Debt Rating" means the long-term senior secured, non-credit
         enhanced debt rating of the Borrower from S&P and Moody's.

                  "Default" means any event, act or condition which with notice
         or lapse of time, or both, would constitute an Event of Default.

                                       8
<PAGE>   15

                  "Defaulting Lender" means, at any time, any Lender that,
         within one Business Day of when due (a) has failed to make a Loan or
         purchase a Participation Interest required pursuant to the term of this
         Credit Agreement, (b) other than as set forth in (a) above, has failed
         to pay to an Agent or any Lender an amount owed by such Lender pursuant
         to the terms of this Credit Agreement unless such amount is subject to
         a good faith dispute or (c) has been deemed insolvent or has become
         subject to a bankruptcy or insolvency proceeding or to a receiver,
         trustee or similar official.

                  "Disinterested Directors" means directors of the Borrower
         other than a director (a) who is an employee of a Credit Party or one
         of its Subsidiaries or (b) who is a party, or who is a director,
         officer, employee or Affiliate (or is related by blood or marriage to
         any such Person) of a party, to the transaction in question, and who
         is, in fact, independent in respect of such transaction.

                  "Dollars" and "$" means dollars in lawful currency of the
         United States of America.

                  "Domestic Credit Parties" means the Borrower and the Domestic
         Guarantors and "Domestic Credit Party" means any one of them.

                  "Domestic Credit Party Obligations" means, without
         duplication, (a) all obligations of the Domestic Credit Parties to the
         Lenders (including the Issuing Lender) and the Agents, whenever
         arising, under this Credit Agreement, the Notes, the Collateral
         Documents or any of the other Credit Documents to which the Borrower or
         any other Domestic Credit Party is a party and (b) all liabilities and
         obligations, wherever arising, owing from any Domestic Credit Party to
         any Lender, or any Affiliate of a Lender, arising under any Hedging
         Agreement.

                  "Domestic Guarantor" means (a) with respect to the Credit
         Party Obligations, the Parent, each of the Domestic Subsidiaries, each
         Additional Domestic Credit Party which has executed a Joinder
         Agreement, or any other Person who becomes a Domestic Guarantor,
         together with their successors and assigns and (b) with respect to the
         Foreign Credit Party Obligations, the Borrower.

                  "Domestic Subsidiaries" means all direct and indirect
         Subsidiaries of a Credit Party that are domiciled, incorporated or
         organized under the laws of any state of the United States or the
         District of Columbia (or have any material assets located in the United
         States).

                  "EBITDA" means, for any period, with respect to the Credit
         Parties and their Subsidiaries on a consolidated basis, an amount equal
         to:

         (a)      Net Income for such period (excluding the effect of any
                  extraordinary or other non-recurring gains (including any gain
                  from the sale of property not in the ordinary course of
                  business)), except as permitted below) plus

                                       9
<PAGE>   16

         (b)      an amount which in the determination of Net Income for such
                  period has been deducted for

                  (i)      interest expense for such period (whether cash or
                           non-cash),

                  (ii)     total Federal, state, foreign or other income or
                           franchise taxes for such period,

                  (iii)    Restructuring Charges (whether cash or non-cash),

                  (iv)     Non-Cash Charges, and

                  (v)      Cash Restructuring Proceeds (to the extent Cash
                           Restructuring Expenditures are included in the
                           calculation of EBITDA), minus

         (c)      Cash Restructuring Expenditures;

         provided that EBITDA for the first four fiscal quarters subsequent to
         the Closing Date, and for purposes of Section 5.1(o), shall be
         calculated in accordance with the Pro Forma EBITDA Adjustments.

         To the extent that Cash Restructuring Proceeds are greater than Cash
         Restructuring Expenditures for any period, the amount of the difference
         between the Cash Restructuring Proceeds and the Cash Restructuring
         Expenditures may be carried forward to apply to Cash Restructuring
         Expenditures for a period consisting of the later of the two succeeding
         fiscal quarters and the end of the then current fiscal year.

                  "Effective Date" means the date on which the conditions set
         forth in Section 5.1 shall have been fulfilled (or waived in the sole
         discretion of the Lenders).

                  "Eligible Assets" means any assets or any business (or any
         substantial part thereof) used or useful in the same or a similar line
         of business as the Credit Parties and their Subsidiaries were engaged
         in on the Closing Date; provided that (a) with respect to the Domestic
         Credit Parties, such assets are either (i) located in the United States
         or (ii) considered to be a Foreign Investment and (b) with respect to
         the Foreign Credit Parties, such assets are subject to a Lien in favor
         of the Lenders to secure the Foreign Credit Party Obligations to the
         extent required by Section 2.6(f).

                  "Eligible Assignee" means (a) any Lender; (b) an Affiliate of
         a Lender or any fund that buys or invests in commercial or bank loans
         and is advised or managed by an investment advisor (or an Affiliate
         thereof) to an existing Lender or an Affiliate of an existing Lender;
         and (c) any other Person approved by the Administrative Agent and the
         Borrower (such approval not to be unreasonably withheld or delayed);
         provided that (i) the Borrower's consent is not required during the
         existence and continuation of an Event of Default and (ii) approval by
         the Borrower shall be deemed given if no objection is received by the
         assigning Lender and the Administrative Agent from the Borrower within
         ten Business Days after notice of such proposed assignment has been
         received by the Borrower.

                                       10
<PAGE>   17

                  "EMU Currency" means German Deutsche Marks, French Francs and
         such other currency approved by all of the Lenders.

                  "EMU Legislation" means the legislative measures of the
         European Council (including without limitation European Council
         regulations) for the introduction of, changeover to or operation of the
         Euro.

                  "Environmental Claim" means any investigation, written notice,
         violation, written demand, written allegation, action, suit,
         injunction, judgment, order, consent decree, penalty, fine, Lien,
         proceeding, or written claim whether administrative, judicial, or
         private in nature from activities or events taking place during or
         prior to a Credit Party's or any of its Subsidiaries' ownership or
         operation of any Real Property and arising (a) pursuant to, or in
         connection with, an actual or alleged violation of, any Environmental
         Law, (b) in connection with any Hazardous Material, (c) from any
         assessment, abatement, removal, remedial, corrective, or other response
         action required by an Environmental Law or other order of a
         Governmental Authority or (d) from any actual or alleged damage,
         injury, threat, or harm to health, safety, natural resources, or the
         environment.

                  "Environmental Laws" means any current or future legal
         requirement of any Governmental Authority pertaining to (a) the
         protection of health, safety, and the environment, (b) the
         conservation, management, or use of natural resources and wildlife, (c)
         the protection or use of surface water and groundwater or (d) the
         management, manufacture, possession, presence, use, generation,
         transportation, treatment, storage, disposal, release, threatened
         release, abatement, removal, remediation or handling of, or exposure
         to, any hazardous or toxic substance or material and includes, without
         limitation, the Comprehensive Environmental Response, Compensation, and
         Liability Act of 1980, as amended by the Superfund Amendments and
         Reauthorization Act of 1986, 42 USC 9601 et seq., Solid Waste Disposal
         Act, as amended by the Resource Conservation and Recovery Act of 1976
         and Hazardous and Solid Waste Amendment of 1984, 42 USC 6901 et seq.,
         Federal Water Pollution Control Act, as amended by the Clean Water Act
         of 1977, 33 USC 1251 et seq., Clean Air Act of 1966, as amended, 42 USC
         7401 et seq., Toxic Substances Control Act of 1976, 15 USC 2601 et
         seq., Hazardous Materials Transportation Act, 49 USC App. 1801 et seq.,
         Occupational Safety and Health Act of 1970, as amended, 29 USC 651 et
         seq., Oil Pollution Act of 1990, 33 USC 2701 et seq., Emergency
         Planning and Community Right-to-Know Act of 1986, 42 USC 11001 et seq.,
         National Environmental Policy Act of 1969, 42 USC 4321 et seq., Safe
         Drinking Water Act of 1974, as amended, 42 USC 300(f) et seq., any
         analogous implementing or successor law, and any amendment, rule,
         regulation, order, or directive issued thereunder and any foreign
         equivalent of such laws.

                  "Equity Financing" means not less than $160,000,000 in common
         and preferred equity (including rollover equity) provided by the
         Permitted Holders in connection with the Recapitalization (at least
         $100,000,000 of which shall be provided by the Sponsor) on terms
         satisfactory to the Agents in their reasonable discretion.

                                       11
<PAGE>   18

                  "Equity Issuance" means any issuance by a Credit Party or any
         of its Subsidiaries to any Person of (a) shares of its Capital Stock or
         other equity interests, (b) any shares of its Capital Stock or other
         equity interests pursuant to the exercise of options (other than stock
         issued to employees and directors pursuant to employees or directors
         stock option plans) or warrants or (c) any shares of its Capital Stock
         or other equity interests pursuant to the conversion of any debt
         securities to equity. The amount of any Equity Issuance shall be the
         Net Cash Proceeds derived therefrom, including, in the case of any
         conversion of any debt securities into equity the amount of such debt.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended, and any successor statute thereto, as interpreted by
         the rules and regulations thereunder, all as the same may be in effect
         form time to time. References to sections of ERISA shall be construed
         also to refer to any successor sections.

                  "ERISA Affiliate" means an entity, whether or not
         incorporated, which is under common control with a Credit Party or any
         of its Subsidiaries within the meaning of Section 4001(a)(14) of ERISA,
         or is a member of a group which includes a Credit Party or any of its
         Subsidiaries and which is treated as a single employer under Sections
         414(b), (c), (m), or (o) of the Code.

                  "Euro" means the common currency of participating members of
         the European Community.

                  "Eurocurrency Loan" means a Loan bearing interest based at a
         rate determined by reference to the Eurocurrency Rate.

                  "Eurocurrency Rate" means, for the Interest Period for each
         Eurocurrency Loan comprising part of the same borrowing (including
         conversions, extensions and renewals), a per annum interest rate
         determined pursuant to the following formula:

<TABLE>
<S>                                         <C>
                  Eurocurrency Rate =          London Interbank Offered Rate
                                            -----------------------------------
                                            1 - Eurocurrency Reserve Percentage
</TABLE>

                  "Eurocurrency Reserve Percentage" means for any day, that
         percentage (expressed as a decimal) which is in effect from time to
         time under Regulation D of the Board of Governors of the Federal
         Reserve System (or any successor), as such regulation may be amended
         from time to time or any successor regulation, as the maximum reserve
         requirement (including, without limitation, any basic, supplemental,
         emergency, special, or marginal reserves) applicable with respect to
         Eurocurrency liabilities as that term is defined in Regulation D (or
         against any other category of liabilities that includes deposits by
         reference to which the interest rate of Eurocurrency Loans is
         determined), whether or not a Lender has any Eurocurrency liabilities
         subject to such reserve requirement at that time. Eurocurrency Loans
         shall be deemed to constitute Eurocurrency liabilities and as such
         shall be deemed subject to reserve requirements without benefits of
         credits for proration, exceptions or offsets that may be available from
         time to time to a Lender. The

                                       12
<PAGE>   19

         Eurocurrency Rate shall be adjusted automatically on and as of the
         effective date of any change in the Eurocurrency Reserve Percentage.

                  "European Community" means the European countries that are
         signatories to the Treaty on European Union.

                  "Event of Default" has the meaning specified in Section 9.1.

                  "Excess Cash Flow" means, with respect to the Credit Parties
         and their Subsidiaries on a consolidated basis, for any fiscal year, an
         amount equal to (a) EBITDA minus (b) Capital Expenditures (other than
         to the extent financed with Indebtedness permitted pursuant to Section
         8.1) minus (c) cash paid in connection with Permitted Acquisitions
         (other than to the extent financed with Indebtedness permitted pursuant
         to Section 8.1) minus (d) cash Interest Expense minus (e) Cash Taxes
         minus (f) Principal Amortization Payments minus (g) principal payments
         of Indebtedness set forth on Schedule 8.1 minus (h) voluntary
         prepayments made with respect to the Term Loans minus (i) that portion
         of any prepayment made with respect to the Revolving Loans to the
         extent the Revolving Committed Amount is permanently reduced by such
         prepayment minus (j) payments actually made as permitted by Section 8.7
         minus (k) payments of Restructuring Charges accrued as of the Closing
         Date minus (l) reserves for Capital Expenditures permitted to be
         carried forward to the following year pursuant to Section 8.14;
         provided that (i) such reserves shall be expected to be spent in the
         first quarter of the following year and (ii) the amount deducted from
         the calculation of Excess Cash Flow pursuant to this clause (l) cannot
         exceed (A) the lesser of (1) the amount of Capital Expenditures
         incurred in the first quarter of the following year and (2) $10,000,000
         or (B) when combined with the deduction in clause (b) above,
         $45,000,000.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended, and the rules and regulations promulgated thereunder.

                  "Excluded Equity Issuance" means (a) any Equity Issuance to a
         Permitted Holder and (b) any Equity Issuance in connection with a
         Permitted Acquisition.

                  "Existing Letters of Credit" means the Letters of Credit
         described by date, issuance, letter of credit number, undrawn amount,
         name of beneficiary and the date of expiry set forth on Schedule
         2.2(c).

                  "Extension of Credit" means, as to any Lender, the making of a
         Loan by such Lender (or a participation therein by a Lender) or the
         issuance of, or participation in, a Letter of Credit by such Lender.

                  "Fair Market Value" means, with respect to any asset or
         property, the price which could be negotiated in an arms'-length free
         market transaction, for cash, between a willing seller and a willing
         buyer, neither of whom is under undue pressure or compulsion to
         complete the transaction. Fair Market Value will be determined, except
         as otherwise provided, (a) if such property or asset has a Fair Market
         Value of less than

                                       13
<PAGE>   20

         $3,000,000, by an officer of the Borrower or (b) if such property or
         asset has a Fair Market Value in excess of $3,000,000, by a majority of
         the Board of Directors of the Borrower and evidenced by a certified
         resolution of such Board of Directors.

                  "Federal Funds Rate" means for any day the rate per annum
         (rounded upward, if necessary, to the nearest 1/100th of 1%) equal to
         the weighted average of the rates on overnight Federal funds
         transactions with members of the Federal Reserve System arranged by
         Federal funds brokers on such day, as published by the Federal Reserve
         Bank of New York on the Business Day next succeeding such day; provided
         that (a) if such day is not a Business Day, the Federal Funds Rate for
         such day shall be such rate on such transactions on the next preceding
         Business Day and (b) if no such rate is so published on such next
         preceding Business Day, the Federal Funds Rate for such day shall be
         the average rate quoted to the Administrative Agent on such day on such
         transactions as determined by the Administrative Agent.

                  "Fee Letter" means that certain fee letter dated as of July
         27, 2000 among the Sponsor, Pac Packaging, Bank of America, BAS,
         Citicorp and SSB, as amended, modified, supplemented or extended from
         time to time.

                  "Fixed Charge Coverage Ratio" means, as of the end of each
         fiscal quarter of the Credit Parties for the twelve month period ending
         on such date, with respect to the Credit Parties and their Subsidiaries
         on a consolidated basis, the ratio of (a) the sum of (i) EBITDA for
         such period minus (ii) Capital Expenditures for such period (other than
         Base Capital Expenditures) minus (iii) Cash Taxes during such period to
         (b) the sum of (i) Interest Expense for such period plus (ii) Scheduled
         Funded Debt Payments for such period, as such ratio is calculated from
         time to time giving effect to Annualized Adjustments.

                  "Flood Hazard Property" has the meaning set forth in Section
         5.1(f)(v).

                  "Foreign Credit Parties" means the Foreign Subsidiary
         Borrowers and the Foreign Guarantors and "Foreign Credit Party" means
         any one of them.

                  "Foreign Credit Party Obligations" means, without duplication,
         (a) all obligations of the Foreign Credit Parties to the Lenders and
         the Agents, whenever arising, under this Credit Agreement, the Foreign
         Currency Notes, the Foreign Guaranty Agreements, the applicable
         Collateral Documents or any of the other Credit Documents to which any
         Foreign Credit Party is a party and (b) all liabilities and
         obligations, wherever arising, owing from any Foreign Credit Party to
         any Lender, or any Affiliate of a Lender, arising under any Hedging
         Agreement.

                  "Foreign Currency" means British Pounds Sterling, any EMU
         Currency, Argentinean Pesos and the Euro or such other currency as
         agreed to by all the Lenders. Each Foreign Currency must be one (a)
         that is readily available to the Lenders and freely transferable and
         convertible into Dollars and (b) in which deposits are generally
         available to the Lenders in the London interbank market.

                                       14
<PAGE>   21

                  "Foreign Currency Committed Amount" means SEVENTY-FIVE MILLION
         DOLLARS ($75,000,000) less any outstanding Indebtedness incurred
         pursuant to Section 8.1(l).

                  "Foreign Currency Fronting Fees" has the meaning set forth in
         Section 3.4(c).

                  "Foreign Currency Lender" means each Lender set forth on
         Schedule 2.6 for the country and Foreign Currency indicated and any
         other Lender (a) that is willing and able to make a Foreign Currency
         Loan, in accordance with the terms of Section 2.6, (b) that would not
         by virtue of making the applicable Foreign Currency Loan subject a
         Foreign Subsidiary Borrower to withholding tax, (c) that has the
         requisite power and authority under all applicable laws and regulations
         to make the applicable Foreign Currency Loan, (d) that can lawfully
         make the applicable Foreign Currency Loan and enforce payment of
         principal and interest with respect thereto, and (e) that is approved
         by the Administrative Agent to make such Foreign Currency Loan.

                  "Foreign Currency Loan" has the meaning set forth in Section
         2.6(a).

                  "Foreign Currency Note" or "Foreign Currency Notes" means
         promissory notes of the Foreign Subsidiary Borrowers evidencing Foreign
         Currency Loans provided pursuant to Section 2.6, individually or
         collectively, as appropriate, as such promissory notes may be amended,
         modified, supplemented, extended, renewed or replaced from time to
         time, in each case in form and substance acceptable to the
         Administrative Agent.

                  "Foreign Currency Notice of Borrowing" means a request by the
         Borrower for a Foreign Currency Loan, in the form of Exhibit 2.6(b).

                  "Foreign Employee Benefit Plan" means any employee benefit
         plan as defined in Section 3(3) of ERISA which is maintained or
         contributed to for the benefit of the employees of a Credit Party, any
         of its Subsidiaries or any of its ERISA Affiliates, but which is not
         covered by ERISA pursuant to Section 4(b)(4) of ERISA.

                  "Foreign Guarantors" means each Foreign Subsidiary which has
         executed a Foreign Guaranty Agreement as provided in Section 2.6(f),
         together with its successors and assigns.

                  "Foreign Guaranty Agreement" has the meaning set forth in
         Section 2.6(f).

                  "Foreign Investment" means, any of the following: (a) the
         Investment by a Domestic Credit Party in a Foreign Subsidiary (other
         than any Investment by a Domestic Credit Party in a Foreign Subsidiary
         set forth on Schedule 8.6), (b) the purchase by a Domestic Credit Party
         of assets located outside of the United States, including Capital Stock
         of a Person not domiciled in the United States or (c) the issuance of a
         Letter of Credit under this Credit Agreement for the benefit of a
         Foreign Subsidiary; provided that a guaranty by a Domestic Credit Party
         of the Foreign Credit Party Obligations shall not constitute a Foreign
         Investment.

                                       15
<PAGE>   22

                  "Foreign Joinder Agreement" means a Foreign Joinder Agreement
         substantially in the form of Exhibit 2.6(f).

                  "Foreign Pension Plan" means any Foreign Employee Benefit Plan
         which under applicable local law is required to be funded through a
         trust or other funding vehicle.

                  "Foreign Subsidiaries" means all Subsidiaries, direct or
         indirect, of a Credit Party that are not Domestic Subsidiaries.

                  "Foreign Subsidiary Borrower" means any Foreign Subsidiary
         that becomes a Foreign Subsidiary Borrower hereunder in accordance with
         Section 2.6(f).

                  "Foreign Subsidiary Borrower Location" means, with respect to
         any Foreign Currency Loan, the country in which the Foreign Subsidiary
         Borrower borrowing such Foreign Currency Loan intends to take receipt
         of the proceeds of such Foreign Currency Loan.

                  "Funded Debt" means, without duplication, the sum of (a) all
         outstanding Indebtedness of the Credit Parties and their Subsidiaries
         for borrowed money, (b) all purchase money Indebtedness of the Credit
         Parties and their Subsidiaries, (c) the principal portion of all
         obligations of the Credit Parties and their Subsidiaries under Capital
         Leases, (d) all Guaranty Obligations of the Credit Parties and their
         Subsidiaries with respect to Funded Debt of another Person, (e) all
         Funded Debt of another Person secured by a Lien on any property of the
         Credit Parties and their Subsidiaries whether or not such Funded Debt
         has been assumed by a Credit Party or any of its Subsidiaries, (f) all
         Funded Debt of any partnership or unincorporated joint venture to the
         extent a Credit Party or one of its Subsidiaries is legally obligated
         net of any assets of such partnership or joint venture, (g) the
         principal balance outstanding under any Synthetic Lease and (h) the
         amount of Indebtedness of the Credit Parties and their Subsidiaries
         incurred pursuant to Section 8.1(m), to the extent the outstanding
         amount of such Indebtedness exceeds, in the aggregate, (i) from the
         Closing Date to October 4, 2001, $5,000,000, (ii) from October 5, 2001
         to October 4, 2002, $10,000,000, (iii) from October 5, 2002 to October
         4, 2003, $15,000,000 and (iv) from October 5, 2003 and thereafter,
         $20,000,000; it being understood that only the amount of such
         Indebtedness in excess of the above amounts shall be included in Funded
         Debt.

                  "GAAP" means generally accepted accounting principles in the
         United States applied on a consistent basis and subject to Section 1.3.

                  "Governmental Act" has the meaning set forth in Section
         2.2(k)(i).

                  "Governmental Authority" means any federal, state, local,
         provincial or foreign court or governmental agency, authority,
         instrumentality or regulatory body.

                  "Guarantor" means the Domestic Guarantors and the Foreign
         Guarantors and "Guarantor" means any one of them.

                                       16
<PAGE>   23

                  "Guaranty" has the meaning set forth in Section 4.1.

                  "Guaranty Obligations" means, with respect to any Person,
         without duplication, any obligations (other than endorsements in the
         ordinary course of business of negotiable instruments for deposit or
         collection) guaranteeing or intended to guarantee any Indebtedness of
         any other Person in any manner, whether direct or indirect, and
         including without limitation any obligation, whether or not contingent,
         (a) to purchase any such Indebtedness or other obligation or any
         property constituting security therefor, (b) to advance or provide
         funds or other support for the payment or purchase of such indebtedness
         or obligation or to maintain working capital, solvency or other balance
         sheet condition of such other Person (including, without limitation,
         maintenance agreements, comfort letters, take or pay arrangements, put
         agreements or similar agreements or arrangements) for the benefit of
         the holder of Indebtedness of such other Person, (c) to lease or
         purchase property, securities or services primarily for the purpose of
         assuring the owner of such Indebtedness or (d) to otherwise assure or
         hold harmless the owner of such Indebtedness or obligation against loss
         in respect thereof. The amount of any Guaranty Obligation hereunder
         shall (subject to any limitations set forth therein) be deemed to be an
         amount equal to (i) for purposes of calculating Funded Debt or
         determining the amount of an Investment consisting of a Guaranty
         Obligation, the outstanding principal amount of the Indebtedness in
         respect of which such Guaranty Obligation is made and (ii) for purposes
         of calculating Indebtedness, the outstanding principal amount (or
         maximum principal amount, if larger) of the Indebtedness in respect of
         which such Guaranty Obligation is made.

                  "Hazardous Materials" means any substance, material or waste
         defined as toxic or hazardous or regulated in or under any
         Environmental Laws.

                  "Hedging Agreements" means any interest rate protection
         agreement, foreign exchange contract, currency swap agreement,
         commodity purchase or option agreement or other interest or exchange
         rate or commodity price hedging agreement or other similar agreement,
         designed to protect a Credit Party or any of its Subsidiaries against
         fluctuations in currency or interest rates.

                  "Indebtedness" of any Person means, without duplication, (a)
         all obligations of such Person for borrowed money, (b) all obligations
         of such Person evidenced by bonds, debentures, notes or similar
         instruments, (c) all obligations of such Person under conditional sale
         or other title retention agreements relating to property purchased by
         such Person to the extent of the value of such property (other than
         customary reservations or retentions of title under agreements with
         suppliers entered into in the ordinary course of business), (d) all
         obligations, other than intercompany items, of such Person issued or
         assumed as the deferred purchase price of property or services
         purchased by such Person which would appear as liabilities on a balance
         sheet of such Person, (e) all Indebtedness of others secured by (or for
         which the holder of such Indebtedness has an existing right, contingent
         or otherwise, to be secured by) any Lien on, or payable out of the
         proceeds of production from, property owned or acquired by such Person,
         whether or not the

                                       17
<PAGE>   24

         obligations secured thereby have been assumed, (f) all Guaranty
         Obligations of such Person, (g) the principal portion of all
         obligations of such Person under (i) Capital Leases and (ii) any
         Synthetic Lease, (h) all obligations of such Person in respect of
         Hedging Agreements, (i) the maximum amount drawable under all
         performance and standby letters of credit issued or bankers'
         acceptances facilities created for the account of such Person and,
         without duplication, all drafts drawn thereunder (to the extent
         unreimbursed), (j) all preferred stock issued by such Person and
         required by the terms thereof to be redeemed, or for which mandatory
         sinking fund payments are due, by a fixed date other than Sponsor
         Preferred Stock and other preferred stock that has characteristics that
         are substantially identical to Sponsor Preferred Stock, and (k) the
         aggregate amount of uncollected accounts receivable of such Person
         subject at such time to a sale of receivables (or similar transaction)
         regardless of whether such transaction is effected without recourse to
         such Person or in a manner that would not be reflected on the balance
         sheet of such Person in accordance with GAAP. The Indebtedness of any
         Person shall include the Indebtedness of any partnership or
         unincorporated joint venture in which such Person is legally obligated
         or has agreed to become legally obligated upon the occurrence of
         specific events, conditions or circumstances with respect thereto.

                  "Indenture" means any Indenture entered into by the Borrower
         in connection with the issuance of the Subordinated Securities.

                  "Intellectual Property" has the meaning set forth in the
         Security Agreement.

                  "Interest Coverage Ratio" means, as of the end of each fiscal
         quarter of the Credit Parties for the twelve month period ending on
         such date, with respect to the Credit Parties and their Subsidiaries on
         a consolidated basis, the ratio of (a) EBITDA for the applicable period
         to (b) Interest Expense for the applicable period, as such ratio is
         calculated from time to time giving effect to Annualized Adjustments.

                  "Interest Expense" means, for any period, with respect to the
         Credit Parties and their Subsidiaries on a consolidated basis, all cash
         interest expense (paid or accrued to be paid), including the interest
         component under Capital Leases, as determined in accordance with GAAP.

                  "Interest Payment Date" means (a) as to Base Rate Loans, the
         last day of each calendar quarter and the Revolving Loan Maturity Date
         or the Tranche B Term Loan Maturity Date, as applicable, and (b) as to
         Eurocurrency Loans, the last day of each applicable Interest Period and
         the Revolving Loan Maturity Date or the Tranche B Term Loan Maturity
         Date, as applicable, and in addition, where the applicable Interest
         Period for a Eurocurrency Loan is greater than three months, then also
         the date three months from the beginning of the Interest Period and
         each three months thereafter.

                  "Interest Period" means, as to Eurocurrency Loans, a period of
         one, two, three or six months' duration, as the Borrower may elect,
         commencing, in each case, on the date of the borrowing (including
         continuations and conversions thereof); provided, however, (a) if any
         Interest Period would end on a day which is not a Business Day, such
         Interest

                                       18
<PAGE>   25

         Period shall be extended to the next succeeding Business Day (except
         that where the next succeeding Business Day falls in the next
         succeeding calendar month, then on the next preceding Business Day),
         (b) no Interest Period shall extend beyond the Revolving Loan Maturity
         Date or the Tranche B Term Loan Maturity Date, as applicable, (c) with
         regard to the Tranche A Term Loans, no Interest Period shall extend
         beyond any date of a Principal Amortization Payment with respect to the
         Tranche A Term Loans unless the portion of Tranche A Term Loans
         comprised of Base Rate Loans together with the portion of Tranche A
         Term Loans comprised of Eurocurrency Loans with Interest Periods
         expiring prior to the date such Principal Amortization Payment is due,
         is at least equal to the amount of such Principal Amortization Payment
         due on such date, (d) with regard to the Tranche B Term Loans, no
         Interest Period shall extend beyond any date of a Principal
         Amortization Payment with respect to Tranche B Term Loans unless the
         portion of Tranche B Term Loans comprised of Base Rate Loans together
         with the portion of Tranche B Term Loans comprised of Eurocurrency
         Loans with Interest Periods expiring prior to the date such Principal
         Amortization Payment is due, is at least equal to the amount of such
         Principal Amortization Payment due on such date and (e) in the case of
         Eurocurrency Loans, where an Interest Period begins on a day for which
         there is no numerically corresponding day in the calendar month in
         which the Interest Period is to end, such Interest Period shall end on
         the last Business Day of such calendar month.

                  "Investment" means (a) the acquisition (whether for cash,
         property, services, assumption of Indebtedness, securities or
         otherwise) of assets, shares of Capital Stock, bonds, notes,
         debentures, partnership, joint ventures or other ownership interests or
         other securities of any Person or (b) any deposit with, or advance,
         loan or other extension of credit to, such Person (other than deposits
         made in connection with the purchase of equipment or other assets in
         the ordinary course of business) or (c) any other capital contribution
         to or investment in such Person, including, without limitation, any
         Guaranty Obligation (including any support for a Letter of Credit
         issued on behalf of such Person) incurred for the benefit of such
         Person.

                  "Irrevocable Conversion Rate", with respect to any EMU
         Currency, means the rate adopted and irrevocably fixed by the European
         Council (in accordance with Article 1091(4) of the Treaty on European
         Union) on December 31, 1998 as the official exchange rate at which
         National Currency Units of such EMU Currency shall be converted into
         Euro, and Euro shall be converted into National Currency Units of such
         EMU Currency.

                  "Issuing Lender" means Bank of America, N.A.

                  "Issuing Lender Fees" has the meaning set forth in Section
         3.4(b)(ii).

                  "Joinder Agreement" means a Joinder Agreement substantially in
         the form of Exhibit 7.13(a).

                  "Lender" means any of the Persons identified as a "Lender" on
         the signature pages hereto, the Issuing Lender, the Swing Line Lender,
         each Foreign Currency Lender and

                                       19
<PAGE>   26

         any Person which may become a Lender by way of assignment in accordance
         with the terms hereof, together with their successors and permitted
         assigns.

                  "Letter of Credit" means a Letter of Credit issued for the
         account of the Borrower or one of its Subsidiaries by the Issuing
         Lender pursuant to Section 2.2, as such Letter of Credit may be
         amended, modified, extended, renewed or replaced.

                  "Letter of Credit Fee" shall have the meaning assigned to such
         term in Section 3.4(b)(i).

                  "Leverage Ratio" means, as of the end of each fiscal quarter
         of the Borrower, with respect to the Credit Parties and their
         Subsidiaries on a consolidated basis, the ratio of (a) Funded Debt on
         such date to (b) EBITDA for the twelve month period ending on such
         date.

                  "Lien" means any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, security interest, encumbrance, lien (statutory or
         otherwise), preference, priority or charge of any kind, including,
         without limitation, any agreement to give any of the foregoing, any
         conditional sale or other title retention agreement, and any lease in
         the nature thereof.

                  "Loan" or "Loans" means the Revolving Loans, the Swing Line
         Loans, the Foreign Currency Loans, the Tranche A Term Loans and the
         Tranche B Term Loans (or a portion of any Revolving Loans, Swing Line
         Loans, Foreign Currency Loans, Tranche A Term Loans or Tranche B Term
         Loans), individually or collectively, as appropriate.

                  "LOC Committed Amount" means TWENTY-FIVE MILLION DOLLARS
         ($25,000,000).

                  "LOC Documents" means, with respect to any Letter of Credit,
         such Letter of Credit, any amendments thereto, any documents delivered
         in connection therewith, any application therefor, and any agreements,
         instruments, guarantees or other documents (whether general in
         application or applicable only to such Letter of Credit) governing or
         providing for (a) the rights and obligations of the parties concerned
         or at risk or (b) any collateral security for such obligations.

                  "LOC Obligations" means, at any time, the sum of (a) the
         maximum amount which is then available to be drawn under Letters of
         Credit then outstanding, assuming compliance with all requirements for
         drawings referred to in such Letters of Credit plus (b) the aggregate
         amount of all drawings under Letters of Credit honored by the Issuing
         Lender but not theretofore reimbursed.

                  "London Interbank Offered Rate" means, with respect to any
         Eurocurrency Loan for the Interest Period applicable thereto, the rate
         of interest per annum (rounded upwards, if necessary, to the nearest
         1/100 of 1%) appearing on Telerate Page 3750 or such other applicable
         page (or any successor page) as the London interbank offered rate for
         deposits in

                                       20
<PAGE>   27

         Dollars (or the applicable Foreign Currency) at approximately 11:00
         A.M. (London time) on the Quotation Day for a term comparable to such
         Interest Period; provided, however, if more than one rate is specified
         on Telerate Page 3750, or such other applicable page, the applicable
         rate shall be the arithmetic mean of all such rates. If, for any
         reason, such rate is not available, the term "London Interbank Offered
         Rate" shall mean, with respect to any Eurocurrency Loan for the
         Interest Period applicable thereto, the rate of interest per annum
         (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing
         on Reuters Screen LIBO Page as the London interbank offered rate for
         deposits in Dollars (or the applicable Foreign Currency) at
         approximately 11:00 A.M. (London time) on the Quotation Day for a term
         comparable to such Interest Period; provided, however, if more than one
         rate is specified on Reuters Screen LIBO Page, the applicable rate
         shall be the arithmetic mean of all such rates.

                  "M&A Engagement Letter" means that certain letter agreement,
         dated as of April 27, 2000, between Pac Packaging and SSB.

                  "Management Group" means the members of management of the
         Parent or the Borrower prior to the Recapitalization that provide a
         portion of the Equity Financing.

                  "Mandatory Borrowing" has the meaning set forth in Section
         2.2(e).

                  "Material Adverse Effect" means a material adverse effect on
         (a) the business, assets, liabilities (actual or contingent),
         operations, properties, condition (financial or otherwise), management,
         material agreements or prospects of the Credit Parties and their
         Subsidiaries taken as a whole, (b) the ability of a Credit Party to
         perform its obligations under this Credit Agreement or any of the other
         Credit Documents, or (c) the validity or enforceability of this Credit
         Agreement, any of the other Credit Documents, or the rights and
         remedies of the Lenders hereunder or thereunder taken as a whole;
         provided that the information disclosed on the Borrower's Quarterly
         Report on Form 10-Q for the fiscal quarter ended April 2, 2000 shall
         not be deemed to constitute or evidence, in whole or in part, a
         Material Adverse Effect.

                  "Material Contracts" means all agreements which if violated or
         terminated would have or could reasonably be expected to have a
         Material Adverse Effect.

                  "Merger" means the merger of the Parent and Pac Packaging
         pursuant to the terms of the Merger Agreement.

                  "Merger Agreement" means that certain Agreement and Plan of
         Merger, dated as of June 1, 2000, between the Parent and Pac Packaging,
         as amended or modified from time to time prior to the Closing Date.

                  "MLA Cost" means an addition to the interest rate on any Loan
         made by any Lender to compensate such Lender for the cost imputed to
         the Lender resulting from the imposition from time to time under or
         pursuant to the Bank of England Act 1998 and/or by the Bank of England
         and/or the Financial Services Authority ("FSA") (or other United

                                       21
<PAGE>   28

         Kingdom Governmental Authorities) of a requirement to place
         non-interest bearing cash ratio deposits or special deposits (whether
         interest bearing or not) with the Bank of England and/or fees to the
         FSA calculated by reference to liabilities used to fund the Loans,
         expressed as a rate per annum and determined in accordance with
         Schedule 3.1.

                  "Moody's" means Moody's Investors Service, Inc., or any
         successor or assignee of the business of such company in the business
         of rating securities.

                  "Mortgages" has the meaning set forth in Section 5.1(f)(i).

                  "Mortgage Policies" has the meaning set forth in Section
         5.1(f)(iii).

                  "Mortgaged Properties" has the meaning set forth in Section
         5.1(f)(i).

                  "Multiemployer Plan" means a Plan covered by Title IV of ERISA
         which is a multiemployer plan as defined in Section 3(37) or 4001(a)(3)
         of ERISA.

                  "Multiple Employer Plan" means a Plan covered by Title IV of
         ERISA, other than a Multiemployer Plan, which a Credit Party or any of
         its Subsidiaries or any ERISA Affiliate and at least one employer other
         than a Credit Party or any of its Subsidiaries or any ERISA Affiliate
         are contributing sponsors.

                  "National Currency Unit" means a fraction or multiple of one
         Euro expressed in units of an EMU Currency. Foreign Currency Loans
         requested to be denominated in National Currency Units shall be
         available only in accordance with Section 2.6(j).

                  "Net Cash Proceeds" means the aggregate cash proceeds received
         from an Asset Disposition, an Equity Issuance or a Debt Issuance net of
         (a) actual transaction costs payable to third parties, (b) taxes paid
         or a good faith estimate of the taxes payable with respect to such
         proceeds, and (c) in connection with an Asset Disposition only, (i) any
         reserve for adjustment in respect of the sale price of such asset or
         assets established in accordance with GAAP; provided that any
         subsequent reversal or reduction of such reserves shall constitute
         additional Net Cash Proceeds and (ii) any amounts paid to holders of
         existing Permitted Liens on any such assets to satisfy and discharge
         such Permitted Liens; provided that such amount shall not be less than
         the "proceeds" from any asset disposition, equity issuance or debt
         issuance as such terms are defined in the Subordinated Loan Documents.

                  "Net Income" means, for any period, the net income after taxes
         for such period of the Credit Parties and their Subsidiaries on a
         consolidated basis, as determined in accordance with GAAP.

                  "Non-Cash Charges" means, for any period, with respect to the
         Credit Parties and their Subsidiaries on a consolidated basis, all
         depreciation and amortization charges and all extraordinary non-cash
         losses from the sale of property (except to the extent included in
         Restructuring Charges).

                                       22
<PAGE>   29

                  "Non-Excluded Taxes" has the meaning set forth in Section
         3.13.

                  "Note" or "Notes" means the Revolving Notes, the Term Notes,
         the Swing Line Loan Notes and the Foreign Currency Notes, individually
         or collectively, as appropriate.

                  "Notice of Borrowing" means a request by the Borrower for a
         Revolving Loan, in the form of Exhibit 2.1(b).

                  "Notice of Continuation/Conversion" means a request by the
         Borrower to continue an existing Eurocurrency Loan to a new Interest
         Period or to convert a Eurocurrency Loan to a Base Rate Loan or a Base
         Rate Loan to a Eurocurrency Loan, in the form of Exhibit 2.7.

                  "Obligation Currency" has the meaning set forth in Section
         11.13.

                  "Officer's Compliance Certificate" has the meaning set forth
         in Section 7.1(d).

                  "Pac Packaging" means Pac Packaging Acquisition Corporation, a
         Delaware corporation.

                  "Parent" means U.S. Can Corporation, a Delaware corporation.

                  "Participants" means the Lenders which have a Revolving Loan
         Commitment Percentage greater than zero.

                  "Participation Interest" means the Extension of Credit by a
         Lender by way of a purchase of a participation in Letters of Credit or
         LOC Obligations as provided in Section 2.2, in Swing Line Loans as
         provided in Section 2.5(c), in Foreign Currency Loans as provided in
         Section 2.6(d) or in any Loans as provided in Section 3.8.

                  "PBGC" means the Pension Benefit Guaranty Corporation
         established pursuant to Subtitle A of Title IV of ERISA and any
         successor thereto.

                  "Permitted Acquisition" means an Acquisition by a Credit Party
         or any Subsidiary of a Credit Party for consideration no greater than
         the fair market value of the Capital Stock or property acquired;
         provided that (a) the property acquired (or the property of the Person
         acquired) in such Acquisition constitutes Eligible Assets (or goodwill
         associated therewith), (b) the Administrative Agent shall have received
         all items in respect of the Capital Stock or property acquired in such
         Acquisition (and/or the seller thereof) required to be delivered by the
         terms of Section 7.12 and/or Section 7.13, (c) in the case of an
         Acquisition of the Capital Stock of another Person, the board of
         directors (or other comparable governing body) of such other Person
         shall have duly approved such Acquisition, (d) the Borrower shall have
         delivered to the Administrative Agent, prior to the closing of such
         Acquisition, a certificate of its chief financial officer demonstrating
         that, upon giving effect to such Acquisition on a Pro Forma Basis, the
         Credit Parties are in compliance with all of the covenants set forth in
         Section 7.11, (e) the representations and warranties made by the Credit
         Parties in any Credit

                                       23
<PAGE>   30

         Document shall be true and correct in all material respects at and as
         if made as of the date of such Acquisition (after giving effect
         thereto) except to the extent such representations and warranties
         expressly relate to an earlier date, (f) at the time of such
         Acquisition and after giving effect thereto, no Default or Event of
         Default shall exist or be continuing, (g) if applicable, such
         Acquisition does not violate Section 8.6 as it relates to clause (g) of
         the definition of Permitted Investments, (h) after giving effect to
         such Acquisition, the amount of availability existing under the
         Revolving Committed Amount shall be greater than or equal to
         $25,000,000 and (i) the aggregate consideration (including cash and
         non-cash consideration and any assumption of Indebtedness, but
         excluding consideration consisting of any Capital Stock of the Parent
         issued to the seller of the Capital Stock (or cash funded with the
         proceeds of the issuance of such Capital Stock) or property acquired in
         such Acquisition) paid by the Credit Parties for all such Acquisitions
         occurring after the Closing Date shall not exceed (i) during any fiscal
         year, $60,000,000 and (ii) in the aggregate, during the term of this
         Credit Agreement, $100,000,000.

                  "Permitted Holders" means the collective reference to the
         Sponsor, the Management Group and the Rollover Shareholders.

                  "Permitted Investments" means Investments which are (a) cash
         or Cash Equivalents, (b) accounts receivable created, acquired or made
         in the ordinary course of business and payable or dischargeable in
         accordance with customary trade terms, (c) inventory, raw materials and
         general intangibles (to the extent such general intangibles are not a
         Capital Expenditure) acquired in the ordinary course of business, (d)
         Investments by a Domestic Credit Party in another Domestic Credit
         Party, by a Foreign Credit Party in another Foreign Credit Party, by a
         Foreign Subsidiary (other than a Foreign Credit Party) in another
         Foreign Subsidiary, by a Foreign Subsidiary in a Domestic Credit Party,
         and by a Foreign Credit Party in a Foreign Subsidiary that is not a
         Foreign Credit Party in an amount not to exceed, in the aggregate at
         any one time outstanding, $10,000,000, (e) loans and advances to
         directors, officers and employees in the ordinary course of business
         for reasonable business expenses, not to exceed $1,000,000 to any one
         Person or $3,000,000, in the aggregate, at any one time outstanding,
         (f) the Investments set forth on Schedule 8.6, (g) as long as no
         Default or Event of Default exists, Foreign Investments in an aggregate
         amount not to exceed $25,000,000 at any one time outstanding during the
         term of this Credit Agreement; provided, however, to the extent such
         Foreign Investments are made with proceeds of an Equity Issuance to a
         Permitted Holder, the amount of such proceeds shall be excluded in
         determining compliance with this clause (g), (h) Investments in
         Permitted Acquisitions, to the extent it does not violate Section 8.6
         as it relates to clause (g) of this definition, (i) Investments made as
         a result of the receipt of non-cash consideration from an Asset
         Disposition permitted by this Credit Agreement, (j) Investments in
         Capital Expenditures to the extent permitted by Section 8.14, (k)
         stock, obligations or securities received in settlement of debts
         created in the ordinary course of business and owing to the Borrower or
         any of its Subsidiaries or in satisfaction of judgments and (l)
         Investments not otherwise permitted by the other clauses of this
         definition not to exceed $10,000,000, in the aggregate, at any one time
         outstanding.

                                       24
<PAGE>   31

                  "Permitted Liens" means (a) Liens securing Credit Party
         Obligations, (b) Liens for taxes not yet due or Liens for taxes being
         contested in good faith by appropriate proceedings for which adequate
         reserves determined in accordance with GAAP have been established (and
         as to which the property subject to any such Lien is not yet subject to
         foreclosure, sale or loss on account thereof); provided that the
         aggregate claims secured by such Liens do not exceed $10,000,000, (c)
         Liens in respect of property imposed by law arising in the ordinary
         course of business such as materialmen's, mechanics', warehousemen's,
         carrier's, landlords' and other nonconsensual statutory Liens which are
         not yet due and payable, which have been in existence less than 90 days
         or which are being contested in good faith by appropriate proceedings
         for which adequate reserves determined in accordance with GAAP have
         been established (and as to which the property subject to any such Lien
         is not yet subject to foreclosure, sale or loss on account thereof),
         (d) pledges or deposits made in the ordinary course of business to
         secure payment of worker's compensation insurance, unemployment
         insurance, pensions or social security programs, (e) Liens arising from
         good faith deposits in connection with or to secure performance of
         tenders, bids, leases, government contracts, performance and
         return-of-money bonds and other similar obligations incurred in the
         ordinary course of business (other than obligations in respect of the
         payment of borrowed money), (f) Liens arising from good faith deposits
         in connection with or to secure performance of statutory obligations
         and surety and appeal bonds, (g) easements, rights-of-way, restrictions
         (including zoning restrictions), minor defects or irregularities in
         title and other similar charges or encumbrances not, in any material
         respect, impairing the use of the encumbered property for its intended
         purposes, (h) judgment Liens that would not constitute an Event of
         Default, (i) Liens in connection with Indebtedness allowed under
         Section 8.1(e), (j) Liens arising by virtue of any statutory or common
         law provision relating to banker's liens, rights of setoff or similar
         rights as to deposit accounts or other funds maintained with a creditor
         depository institution, arising in the ordinary course of business and
         not intended as security, (k) Liens existing on the date hereof and
         identified on Schedule 8.2; provided that no such Lien shall extend to
         any property other than the property subject thereto on the Closing
         Date and (l) Liens on real property, equipment and fixtures acquired in
         connection with a Permitted Acquisition; provided that (i) such Lien
         shall have existed at the time such Permitted Acquisition was
         consummated, (ii) such Lien was not incurred in anticipation thereof
         and (iii) such Liens, in the aggregate, do not secure Indebtedness in
         excess of $10,000,000 aggregate principal amount at any one time
         outstanding.

                  "Person" means any individual, partnership, joint venture,
         firm, corporation, limited liability company, association, trust or
         other enterprise (whether or not incorporated), or any Governmental
         Authority.

                  "Plan" means any employee benefit plan (as defined in Section
         3(3) of ERISA) which is covered by ERISA and with respect to which a
         Credit Party or any of its Subsidiaries or any ERISA Affiliate is (or,
         if such plan were terminated at such time, would under Section 4069 of
         ERISA be deemed to be) an "employer" within the meaning of Section 3(5)
         of ERISA.

                                       25
<PAGE>   32

                  "Pledge Agreement" means any Pledge Agreement executed and
         delivered by a Credit Party in favor of the Collateral Agent, for the
         benefit of the Lenders, as amended, modified, restated or supplemented
         from time to time.

                  "Prime Rate" means the per annum rate of interest established
         from time to time by the Administrative Agent at its principal office
         in Charlotte, North Carolina (or such other principal office of the
         Administrative Agent as communicated in writing to the Borrower and the
         Lenders) as its Prime Rate. Any change in the interest rate resulting
         from a change in the Prime Rate shall become effective as of 12:01 a.m.
         of the Business Day on which each change in the Prime Rate is announced
         by the Administrative Agent. The Prime Rate is a reference rate used by
         the Administrative Agent in determining interest rates on certain loans
         and is not intended to be the lowest rate of interest charged on any
         extension of credit to any debtor.

                  "Principal Amortization Payment" means a principal payment on
         the Tranche A Term Loans as set forth in Section 2.3(c) or on the
         Tranche B Term Loans as set forth in Section 2.4(c).

                  "Pro Forma Basis" means, in connection with any Permitted
         Acquisition or Significant Asset Disposition, that such Permitted
         Acquisition or Significant Asset Disposition shall be deemed to have
         occurred (and any Indebtedness incurred or assumed in connection
         therewith shall be deemed to have existed) as of the first day of the
         twelve month period ending as of the last day of the most recent fiscal
         quarter end for which the Lenders have received the financial
         information required to be delivered pursuant to Section 7.1(a) or (b),
         as applicable, and Section 7.1(d). In connection with any calculation
         made hereunder on a Pro Forma Basis, such calculation shall be made in
         accordance with Article 11 of Regulation S-X promulgated under the
         Securities Act (to the extent applicable) and APB 16; provided that (a)
         any adjustments in accordance with Regulation S-X and APB 16 must be
         verified by Arthur Andersen LLP or other independent third party
         accountants of recognized national standing, (b) any adjustment to
         EBITDA in connection with a Permitted Acquisition or Significant Asset
         Disposition with respect to identifiable and quantifiable expenses that
         would not have been incurred if such Permitted Acquisition or
         Significant Asset Disposition had occurred as of the first day of the
         relevant period may not exceed 10% of the total historical EBITDA of
         the Credit Parties and their Subsidiaries during the last twelve
         months, after giving effect to such Permitted Acquisition or Asset
         Disposition, and (c) if the assets acquired in a Permitted Acquisition
         or divested in a Significant Asset Disposition do not have separate
         historical financial statements with respect thereto, the Borrower
         shall provide internally prepared financials with respect to such
         assets which must be in form and substance reasonably acceptable to the
         Administrative Agent. In addition, upon giving effect on a Pro Forma
         Basis to any Permitted Acquisition or Asset Disposition, any Funded
         Debt incurred or reduced by any Credit Party or any of its Subsidiaries
         in connection with such Permitted Acquisition or Asset Disposition, if
         such Funded Debt has a floating or formula rate, shall have an implied
         rate of interest for the applicable period determined by utilizing the
         rate which is or would be in effect with respect to such Indebtedness
         as at the relevant date of determination.

                                       26
<PAGE>   33

                  "Pro Forma EBITDA Adjustments" has the meaning set forth on
         Schedule 1.1(b).

                  "Public Equity Issuance" means an underwritten primary public
         offering of the common Capital Stock of the Parent pursuant to an
         effective registration statement filed with the United States
         Securities and Exchange Commission in accordance with the Securities
         Act.

                  "Quotation Day" means (a) if the Loan is made in Dollars or
         any Foreign Currency other than Euro, two Business Days prior to the
         first day of such Interest Period and (b) if the Loan is made in Euro,
         two TARGET Days prior to the first day of such Interest Period;
         provided that if market practice differs in the Relevant Interbank
         Market for a Foreign Currency, then the Quotation Day for that Foreign
         Currency will be determined by the Administrative Agent in accordance
         with market practice in the Relevant Interbank Market (and if
         quotations would normally be given by leading banks in the Relevant
         Interbank Market on more than one day, the Quotation Day will be the
         last of those days).

                  "Real Properties" shall have the meaning set forth in Section
         6.18.

                  "Recapitalization" means the recapitalization of the Parent,
         in conjunction with the Merger, with proceeds from the Loans, the
         Equity Financing and the Subordinated Debt.

                  "Refinancing" means the refinancing of all outstanding funded
         Indebtedness of the Parent in connection with the Recapitalization,
         except for Indebtedness set forth on Schedule 8.1, including, without
         limitation, tendering for redemption the Parent's 10 1/8% senior
         subordinated notes due 2006.

                  "Register" has the meaning set forth in Section 11.3(c).

                  "Regulation A, D, O, T, U, or X" means Regulation A, D, O, T,
         U or X, respectively, of the Board of Governors of the Federal Reserve
         System as from time to time in effect and any successor to all or a
         portion thereof.

                  "Relevant Interbank Market" means the market in which a London
         Interbank Offered Rate for the applicable Interest Period is available
         in immediately available funds in the applicable Foreign Currency.

                  "Reportable Event" means a "reportable event" as defined in
         Section 4043 of ERISA with respect to which the notice requirements to
         the PBGC have not been waived.

                  "Required Lenders" means Lenders whose aggregate Credit
         Exposure (as hereinafter defined) constitutes more than 50% of the
         Credit Exposure of all Lenders at such time; provided, however, that if
         any Lender shall be a Defaulting Lender at such time then there shall
         be excluded from the determination of Required Lenders the

                                       27
<PAGE>   34

         aggregate principal amount of Credit Exposure of such Lender at such
         time. For purposes of the preceding sentence, the term "Credit
         Exposure" as applied to each Lender shall mean (a) at any time prior to
         the termination of the Commitments, the sum of (i) the Revolving
         Commitment Percentage of such Lender multiplied by the Revolving
         Committed Amount plus (ii) the Tranche A Term Loan Commitment
         Percentage of such Lender multiplied by the aggregate principal amount
         of the Tranche A Term Loans outstanding at such time plus (iii) the
         Tranche B Term Loan Commitment Percentage of such Lender multiplied by
         the aggregate principal amount of the Tranche B Term Loans outstanding
         at such time, and (b) at any time after the termination of the
         Commitments, the sum of (i) the principal balance of the outstanding
         Loans of such Lender plus (ii) such Lender's Participation Interests in
         the face amount of the outstanding Letters of Credit, outstanding
         Swingline Loans and outstanding Foreign Currency Loans.

                  "Requirement of Law" means, as to any Person, the articles or
         certificate of incorporation and by-laws or other organizational or
         governing documents of such Person, and any law, treaty, rule or
         regulation or final, non-appealable determination of an arbitrator or a
         court or other Governmental Authority, in each case applicable to or
         binding upon such Person or to which any of its material property is
         subject.

                  "Restructuring Charges" means any cash or non-cash charges
         (excluding any non-cash restructuring charges that are used to write
         down the value of accounts receivable or inventory) incurred in
         connection plant closings or consolidations.

                  "Revolving Committed Amount" means ONE HUNDRED FORTY MILLION
         DOLLARS ($140,000,000) or such lesser amount as the Revolving Committed
         Amount may be reduced pursuant to Section 2.1(d) or Section 3.3(c).

                  "Revolving Loan Commitment Percentage" means, for each Lender,
         the percentage identified as its Revolving Commitment Percentage on
         Schedule 1.1(a), as such percentage may be modified in connection with
         any assignment made in accordance with the provisions of Section 11.3.

                  "Revolving Loan Maturity Date" means October 4, 2006.

                  "Revolving Loans" means the Revolving Loans made to the
         Borrower pursuant to Section 2.1.

                  "Revolving Note" or "Revolving Notes" means the promissory
         notes of the Borrower in favor of each of the Lenders evidencing the
         Revolving Loans provided pursuant to Section 2.1, individually or
         collectively, as appropriate, as such promissory notes may be amended,
         modified, supplemented, extended, renewed or replaced from time to time
         and as evidenced in the form of Exhibit 2.1(e).

                  "Rollover Shareholders" means certain shareholders of the
         Parent prior to the Recapitalization that provide a portion of the
         Equity Financing.

                                       28
<PAGE>   35

                  "S&P" means Standard & Poor's Ratings Group, a division of
         McGraw Hill, Inc., or any successor or assignee of the business of such
         division in the business of rating securities.

                  "Scheduled Funded Debt Payments" means, for any period, with
         respect to the Credit Parties and their Subsidiaries on a consolidated
         basis, the sum of all scheduled payments of principal on Funded Debt
         (including the implied principal component of payments due on Capital
         Leases and Synthetic Leases, but excluding voluntary prepayments or
         mandatory prepayments made pursuant to Section 3.3), as determined in
         accordance with GAAP.

                  "Securities Act" means the Securities Act of 1933, as amended,
         and the rules and regulations promulgated thereunder.

                  "Security Agreement" means any Security Agreement executed and
         delivered by a Credit Party in favor of the Collateral Agent, for the
         benefit of the Lenders, as amended, modified, restated or supplemented
         from time to time.

                  "Senior Leverage Ratio" means, as of the end of each fiscal
         quarter of the Borrower, with respect to the Credit Parties and their
         Subsidiaries on a consolidated basis, the ratio of (a) Funded Debt on
         such date minus Subordinated Debt on such date to (b) EBITDA for the
         twelve month period ending on such date.

                  "Significant Asset Disposition" means an Asset Disposition of
         (a) all or substantially all of the assets or stock of a Credit Party
         or a Subsidiary of a Credit Party or (b) a line of business, a division
         or a facility disposed of together with its customer base and revenue
         source of a Credit Party or one of its Subsidiaries.

                  "Single Employer Plan" means any Plan which is covered by
         Title IV of ERISA, but which is not a Multiemployer Plan.

                  "Solvent" means, with respect to any Person as of a particular
         date, that on such date (a) such Person is able to pay its debts and
         other liabilities, contingent obligations and other commitments as they
         mature in the normal course of business, (b) such Person does not
         intend to, and does not believe that it will, incur debts or
         liabilities beyond such Person's ability to pay as such debts and
         liabilities mature in their ordinary course, (c) such Person is not
         engaged in a business or a transaction, and is not about to engage in a
         business or a transaction, for which such Person's assets would
         constitute unreasonably small capital after giving due consideration to
         the prevailing practice in the industry in which such Person is engaged
         or is to engage, (d) the fair value of the assets of such Person is
         greater than the total amount of liabilities, including, without
         limitation, contingent liabilities, of such Person and (e) the present
         fair saleable value of the assets of such Person is not less than the
         amount that will be required to pay the probable liability of such
         Person on its debts as they become absolute and matured. In computing
         the amount of contingent liabilities at any time, it is intended that
         such liabilities will be computed at the amount which, in light of all
         the facts and circumstances existing at such

                                       29
<PAGE>   36

         time, represents the amount that can reasonably be expected to become
         an actual or matured liability.

                  "Sponsor" means Berkshire Partners LLC and its Affiliates.

                  "Sponsor Preferred Stock" means the preferred stock issued by
         the Parent in connection with the Transaction that has the following
         characteristics: (a) no cash payments of interest, dividends or
         principal are due prior to a mandatory redemption date unless permitted
         by the terms of this Credit Agreement, (b) unless otherwise permitted
         by the terms of this Credit Agreement, any mandatory prepayment date is
         at least 366 days following the later of (i) the final maturity date
         and termination of this Credit Agreement and (ii) the final maturity
         date and termination of the Subordinated Debt and (c) the holders of
         the "Sponsor Preferred Stock" shall have no economic or payment
         remedies (other than as a holder of equity), nor any other right the
         exercise of which could cause a Credit Party or any of its Subsidiaries
         to be in default under any of its agreements or to enter bankruptcy or
         similar proceedings until all amounts under this Credit Agreement have
         been paid in full and the commitments hereunder have been terminated.

                  "SSB" means Salomon Smith Barney Inc. and its successors
         and/or assigns.

                  "Subordinated Debt" means the Indebtedness, in an amount not
         to exceed $175,000,000, issued pursuant to the Subordinated Loan
         Documents.

                  "Subordinated Loan Documents" means (a) the Indenture, (b) the
         Subordinated Securities and (c) any other agreement, document,
         instrument or certificate executed in connection with the foregoing.

                  "Subordinated Securities" means any securities issued by the
         Borrower in connection with the Subordinated Debt.

                  "Subsidiary" means, as to any Person, (a) any corporation more
         than 50% of whose stock of any class or classes having by the terms
         thereof ordinary voting power to elect a majority of the directors of
         such corporation (irrespective of whether or not at the time, any class
         or classes of such corporation shall have or might have voting power by
         reason of the happening of any contingency) is at the time owned by
         such Person directly or indirectly through Subsidiaries, and (b) any
         partnership, limited liability company, association, joint venture or
         other entity in which such Person directly or indirectly through
         Subsidiaries has more than a 50% equity interest at any time.

                  "Swing Line Committed Amount" means Ten Million Dollars
         ($10,000,000).

                  "Swing Line Lender" means Bank of America.

                  "Swing Line Loans" means the loans made by the Swing Line
         Lender pursuant to Section 2.5.

                                       30
<PAGE>   37

                  "Swing Line Loan Note" means the promissory note of the
         Borrower in favor of the Swing Line Lender evidencing the Swing Line
         Loans provided pursuant to Section 2.5, as such promissory note may be
         amended, modified, supplemented, extended, renewed or replaced from
         time to time in and as evidenced by the form of Exhibit 2.5(d).

                  "Swing Line Loan Request" means a request by the Borrower for
         a Swing Line Loan in substantially the form of Exhibit 2.5(b).

                  "Syndication Agent" shall have the meaning assigned to such
         term in the heading hereof or any successor syndication agent appointed
         pursuant to Section 10.9.

                  "Synthetic Lease" means any synthetic lease, tax retention
         operating lease, off-balance sheet loan or similar off-balance sheet
         financing product where such transaction is considered borrowed money
         indebtedness for tax purposes but is classified as an operating lease
         in accordance with GAAP.

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

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

                  "Term Notes" means the Tranche A Term Notes and the Tranche B
         Term Notes.

                  "Termination Event" means (a) with respect to any Single
         Employer Plan, the occurrence of a Reportable Event or the substantial
         cessation of operations (within the meaning of Section 4062(e) of
         ERISA); (b) the withdrawal of a Credit Party or any of its Subsidiaries
         or any ERISA Affiliate from a Multiple Employer Plan during a plan year
         in which it was a substantial employer (as such term is defined in
         Section 4001(a)(2) of ERISA), or the termination of a Multiple Employer
         Plan; (c) the distribution of a notice of intent to terminate or the
         actual termination of a Plan pursuant to Section 4041(a)(2) or 4041A of
         ERISA; (d) the institution of proceedings to terminate or the actual
         termination of a Plan by the PBGC under Section 4042 of ERISA; (e) any
         event or condition which would or could reasonably be expected to
         constitute grounds under Section 4042 of ERISA for the termination of,
         or the appointment of a trustee to administer, any Plan; or (f) the
         complete or partial withdrawal of a Credit Party or any of its
         Subsidiaries or any ERISA Affiliate from a Multiemployer Plan.

                  "Title Insurance Company" has the meaning set forth in Section
         5.1(f)(iii).

                  "Tranche A Term Loan Committed Amount" means EIGHTY MILLION
         DOLLARS ($80,000,000).

                  "Tranche A Term Loan Commitment Percentage" means, for each
         Lender, the percentage identified as its Tranche A Term Loan Commitment
         Percentage on Schedule

                                       31
<PAGE>   38

         1.1(a), as such percentage may be modified in connection with any
         assignment made in accordance with the provisions of Section 11.3.

                  "Tranche A Term Loan Maturity Date" means October 4, 2006.

                  "Tranche A Term Loans" means the Tranche A Term Loans made to
         the Borrower pursuant to Section 2.3.

                  "Tranche A Term Note" or "Tranche A Term Notes" means the
         promissory notes of the Borrower in favor of each of the Lenders
         evidencing the Tranche A Term Loans provided pursuant to Section 2.3,
         individually or collectively, as appropriate, as such promissory notes
         may be amended, modified, supplemented, extended, renewed or replaced
         from time to time and as evidenced in the form of Exhibit 2.3(d).

                  "Tranche B Term Loan Committed Amount" means ONE HUNDRED
         EIGHTY MILLION DOLLARS ($180,000,000).

                  "Tranche B Term Loan Commitment Percentage" means, for each
         Lender, the percentage identified as its Tranche B Term Loan Commitment
         Percentage on Schedule 1.1(a), as such percentage may be modified in
         connection with any assignment made in accordance with the provisions
         of Section 11.3.

                  "Tranche B Term Loans" means the Tranche B Term Loans made to
         the Borrower pursuant to Section 2.4.

                  "Tranche B Term Note" or "Tranche B Term Notes" means the
         promissory notes of the Borrower in favor of each of the Lenders
         evidencing the Tranche B Term Loans provided pursuant to Section 2.4,
         individually or collectively, as appropriate, as such promissory notes
         may be amended, modified, supplemented, extended, renewed or replaced
         from time to time and as evidenced in the form of Exhibit 2.4(d).

                  "Tranche B Term Loan Maturity Date" means October 4, 2008.

                  "Transaction" means a collective reference to the Merger, the
         Refinancings, the initial Extensions of Credit hereunder and all other
         transactions related thereto and hereto.

                  "Transition Period Cutoff Date" means December 31, 2001, or
         such other date as may be established by EMU Legislation.

                  "Treaty on European Union": means the Treaty of Rome of March
         25, 1957, as amended by the Single European Act of 1986 and the
         Maastricht Treaty (which was signed at Maastricht on February 21, 1992
         and came into force on November 1, 1993), as amended from time to time.

                                       32
<PAGE>   39

                  "Unused Commitment" means, for any period, the amount by which
         (a) the then applicable aggregate Revolving Committed Amount exceeds
         (b) the daily average sum for such period of the outstanding aggregate
         principal amount of all Revolving Loans (other than Swing Line Loans)
         plus the aggregate amount of LOC Obligations outstanding plus the
         aggregate amount of Foreign Currency Loans outstanding.

                  "U.S. Dollar Equivalent" means the amount of Dollars that
         would be realized by converting a Foreign Currency into Dollars at
         approximately 11:00 a.m. (London time), as set forth on the applicable
         Telerate Screen, on the date of determination; provided that if more
         than one rate is listed then the applicable conversion rate shall be
         the arithmetic average of such rates. If for any reason such conversion
         rates are not available, the U.S. Dollar Equivalent shall be calculated
         using the arithmetic average of the spot buying rates for such Foreign
         Currency in Dollars as quoted to the Administrative Agent by three
         foreign exchange dealers of recognized standing in the United States
         selected by the Administrative Agent at approximately 11:00 a.m.
         (London time) on any date of determination.

                  "Voting Stock" of a corporation means all classes of the
         Capital Stock of such corporation then outstanding and normally
         entitled to vote in the election of directors.

                  "Warren Lithography Facility" means the facility located in
         Warren, Ohio at which the Borrower, prior to March 10, 2000, applied
         metal coating and printing to tinplate steel.

                  "Wheeling Closure Facility" means the facility located in Glen
         Dale, West Virginia at which the Borrower, prior to March 10, 2000,
         manufactured and sold continuous-thread metal closure products used to
         cap glass, metal and plastic jars.

         1.2 COMPUTATION OF TIME PERIODS AND OTHER DEFINITIONAL PROVISIONS.

         For purposes of computation of periods of time hereunder, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding." References in this Credit Agreement to "Articles", "Sections",
"Schedules" or "Exhibits" shall be to Articles, Sections, Schedules or Exhibits
of or to this Credit Agreement unless otherwise specifically provided.

         1.3 ACCOUNTING TERMS; CALCULATIONS.

         (a) Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
hereunder shall be prepared, in accordance with GAAP applied on a consistent
basis. All financial statements delivered to the Lenders hereunder shall be
accompanied by a statement from the Borrower that GAAP has not changed since the
most recent financial statements delivered by the Borrower to the Lenders or if
GAAP has changed describing such changes in reasonable detail and explaining how
such changes affect the financial statements. All calculations made for the
purposes of determining compliance with this Credit Agreement shall (except as
otherwise expressly provided herein) be made by

                                       33
<PAGE>   40

application of GAAP applied on a basis consistent with the most recent annual or
quarterly financial statements delivered pursuant to Section 7.1 (or, prior to
the delivery of the first financial statements pursuant to Section 7.1,
consistent with the financial statements described in Section 5.1(c)); provided,
however, if (a) the Borrower shall object to determining such compliance on such
basis at the time of delivery of such financial statements due to any change in
GAAP or the rules promulgated with respect thereto or (b) either the
Administrative Agent or the Required Lenders shall so object in writing within
60 days after delivery of such financial statements (or after the Lenders have
been informed of the change in GAAP affecting such financial statements, if
later), then such calculations shall be made on a basis consistent with the most
recent financial statements delivered by the Borrower to the Lenders as to which
no such objection shall have been made.

         (b) Notwithstanding anything in this Agreement to the contrary, for
purposes of (i) all calculations of the financial covenants set forth in Section
7.11(a), (b) and (c) (including the definitions used therein), (ii) calculating
the Leverage Ratio in connection with the definition of "Application Percentage"
set forth in Section 1.1 and (iii) calculating the Senior Leverage Ratio:
EBITDA, Interest Expense, Funded Debt, Capital Expenditures, Cash Taxes and
Scheduled Funded Debt Payments of any Person acquired in connection with a
Permitted Acquisition or sold or transferred as part of Significant Asset
Disposition shall be computed on a Pro Forma Basis.

         1.4 TIME.

         All references to time herein shall be references to Eastern Standard
time or Eastern Daylight time, as the case may be, unless specified otherwise.

                                    SECTION 2
                                CREDIT FACILITIES

         2.1 REVOLVING LOANS.

                  (a) Revolving Loan Commitment. Subject to the terms and
         conditions set forth herein, each Lender severally agrees to make
         revolving loans (each a "Revolving Loan" and collectively the
         "Revolving Loans") to the Borrower, in Dollars, at any time and from
         time to time, during the period from and including the Effective Date
         to but not including the Revolving Loan Maturity Date (or such earlier
         date if the Revolving Committed Amount has been terminated as provided
         herein); provided, however, that (i) the sum of the aggregate amount of
         Revolving Loans outstanding plus the aggregate amount of LOC
         Obligations outstanding plus the aggregate amount of Swing Line Loans
         outstanding plus the aggregate amount of Foreign Currency Loans
         outstanding shall not exceed the Revolving Committed Amount and (ii)
         with respect to each individual Lender, the Lender's pro rata share of
         outstanding Revolving Loans plus such Lender's pro rata share of
         outstanding LOC Obligations plus (other than the Swing Line Lender)
         such Lender's pro rata share of Swing Line Loans outstanding plus such
         Lender's pro rata share of Foreign Currency Loans outstanding (except
         for any Foreign Currency Loans

                                       34
<PAGE>   41

         with respect to which such Lender is the Foreign Currency Lender) shall
         not exceed such Lender's Revolving Loan Commitment Percentage of the
         Revolving Committed Amount. Subject to the terms of this Credit
         Agreement (including Section 3.3), the Borrower may borrow, repay and
         reborrow Revolving Loans.

                  (b) Method of Borrowing for Revolving Loans. By no later than
         11:00 a.m. (i) on the date of the requested borrowing of Revolving
         Loans that will be Base Rate Loans or (ii) three Business Days prior to
         the date of the requested borrowing of Revolving Loans that will be
         Eurocurrency Loans, the Borrower shall telephone the Administrative
         Agent as well as submit a written Notice of Borrowing in the form of
         Exhibit 2.1(b) to the Administrative Agent setting forth (A) the amount
         requested, (B) whether such Revolving Loans shall accrue interest at
         the Adjusted Base Rate or the Adjusted Eurocurrency Rate, (C) with
         respect to Revolving Loans that will be Eurocurrency Loans, the
         Interest Period applicable thereto and (D) certification that the
         Borrower has complied in all respects with Section 5.2. If the Borrower
         shall fail to specify (x) an Interest Period in the case of a
         Eurocurrency Loan, then such Eurocurrency Loan shall be deemed to have
         an Interest Period of one month, or (y) the type of Revolving Loan
         requested, then such Revolving Loan shall be deemed to be a Base Rate
         Loan. All Revolving Loans on the Effective Date shall be Base Rate
         Loans. Thereafter, all or any portion of the Revolving Loans may be
         converted into Eurocurrency Loans in accordance with the terms of
         Section 2.7 and the definition of "Interest Period" set forth in
         Section 1.1.

                  (c) Funding of Revolving Loans. Upon receipt of a Notice of
         Borrowing, the Administrative Agent shall promptly inform the
         applicable Lenders as to the terms thereof. Each such Lender shall make
         its Revolving Loan Commitment Percentage of the requested Revolving
         Loans available to the Administrative Agent by 1:00 p.m. on the date
         specified in the Notice of Borrowing by deposit, in Dollars, of
         immediately available funds at the offices of the Administrative Agent
         at its principal office in Charlotte, North Carolina or at such other
         address as the Administrative Agent may designate in writing. The
         amount of the requested Revolving Loans will then be made available to
         the Borrower by the Administrative Agent by crediting the account of
         the Borrower on the books of such office of the Administrative Agent,
         to the extent the amount of such Revolving Loans are made available to
         the Administrative Agent.

                  No Lender shall be responsible for the failure or delay by any
         other Lender in its obligation to make Revolving Loans hereunder;
         provided, however, that the failure of any Lender to fulfill its
         obligations hereunder shall not relieve any other Lender of its
         obligations hereunder. Unless the Administrative Agent shall have been
         notified by any Lender prior to the date of any such Revolving Loan
         that such Lender does not intend to make available to the
         Administrative Agent its portion of the Revolving Loans to be made on
         such date, the Administrative Agent may assume that such Lender has
         made such amount available to the Administrative Agent on the date of
         such Revolving Loans, and the Administrative Agent in reliance upon
         such assumption, may (in its sole discretion but without any obligation
         to do so) make available to the Borrower a corresponding amount. If
         such corresponding amount is not in fact made available to the

                                       35
<PAGE>   42

         Administrative Agent, the Administrative Agent shall be able to recover
         such corresponding amount from such Lender. If such Lender does not pay
         such corresponding amount forthwith upon the Administrative Agent's
         demand therefor, the Administrative Agent will promptly notify the
         Borrower, and the Borrower shall immediately pay such corresponding
         amount to the Administrative Agent. The Administrative Agent shall also
         be entitled to recover from the Lender or the Borrower, as the case may
         be, interest on such corresponding amount in respect of each day from
         the date such corresponding amount was made available by the
         Administrative Agent to the Borrower to the date such corresponding
         amount is recovered by the Administrative Agent at a per annum rate
         equal to (i) from the Borrower at the applicable rate for such
         Revolving Loan pursuant to the Notice of Borrowing and (ii) from a
         Lender at the Federal Funds Rate if paid within two Business Days of
         the date of drawing, and thereafter at a rate equal to the Base Rate.

                  (d) Reductions of Revolving Committed Amount. Upon at least
         three Business Days' notice, the Borrower shall have the right to
         permanently terminate or reduce the aggregate unused amount of the
         Revolving Committed Amount at any time or from time to time; provided
         that (i) each partial reduction shall be in an aggregate amount at
         least equal to $5,000,000 and in integral multiples of $1,000,000 above
         such amount and (ii) no reduction shall be made which would reduce the
         Revolving Committed Amount to an amount less than the aggregate amount
         of outstanding Revolving Loans plus the aggregate amount of outstanding
         LOC Obligations plus the aggregate amount of outstanding Swing Line
         Loans plus the aggregate amount of Foreign Currency Loans. Any
         reduction in (or termination of) the Revolving Committed Amount shall
         be permanent and may not be reinstated.

                  (e) Revolving Notes. The Revolving Loans made by each Lender
         shall be evidenced by a duly executed promissory note of the Borrower
         to each applicable Lender in the face amount of its Revolving Loan
         Commitment Percentage of the Revolving Committed Amount and in
         substantially the form of Exhibit 2.1(e).

         2.2 LETTER OF CREDIT SUBFACILITY.

                  (a) Issuance. Subject to the terms and conditions hereof and
         of the LOC Documents, if any, and any other terms and conditions which
         the Issuing Lender may reasonably require (so long as such terms and
         conditions do not impose any financial obligation on or require any
         Lien (not otherwise contemplated by this Credit Agreement) to be given
         by any Credit Party or conflict with any obligation of, or detract from
         any action which may be taken by the Credit Parties or their
         Subsidiaries under this Credit Agreement), the Issuing Lender shall
         from time to time upon request issue, in Dollars, and the Participants
         shall participate in, letters of credit (the "Letters of Credit") for
         the account of the Borrower or any of its Subsidiaries, from the
         Effective Date until the Revolving Loan Maturity Date, in a form
         reasonably acceptable to the Issuing Lender; provided, however, that
         (i) the aggregate amount of LOC Obligations shall not at any time
         exceed the LOC Committed Amount, (ii) the sum of the aggregate amount
         of LOC Obligations outstanding plus Revolving Loans outstanding plus
         Swing Line Loans

                                       36
<PAGE>   43

         outstanding plus Foreign Currency Loans outstanding shall not exceed
         the Revolving Committed Amount, (iii) with respect to each individual
         Participant, the Participant's pro rata share of outstanding Revolving
         Loans plus its pro rata share of outstanding LOC Obligations plus its
         (other than the Swing Line Lender) pro rata share of outstanding Swing
         Line Loans plus such Participant's pro rata share of Foreign Currency
         Loans outstanding (except for any Foreign Currency Loans with respect
         to which such Participant is the Foreign Currency Lender) shall not
         exceed such Participant's Revolving Loan Commitment Percentage of the
         Revolving Committed Amount and (iv) if any Letter of Credit is for the
         benefit of a Foreign Subsidiary, such Letter of Credit shall constitute
         a Foreign Investment and after giving effect thereto, the Borrower
         shall be in compliance with Section 8.6 as it relates to clause (g) of
         the definition of Permitted Investments. The issuance and expiry date
         of each Letter of Credit shall be a Business Day. Except as otherwise
         expressly agreed upon by all the Participants, no Letter of Credit
         shall have an original expiry date more than one year from the date of
         issuance, or as extended or otherwise, shall have an expiry date
         extending beyond the Revolving Loan Maturity Date. Each Letter of
         Credit shall be either (x) a standby letter of credit issued to support
         the obligations (including pension or insurance obligations),
         contingent or otherwise, of a Credit Party or any of its Subsidiaries,
         or (y) a commercial letter of credit in respect of the purchase of
         goods or services by a Credit Party or any of its Subsidiaries in the
         ordinary course of business; it being understood that any Letter of
         Credit issued on behalf of a Foreign Subsidiary must be permitted by
         the terms of Section 8.6. Each Letter of Credit shall comply with the
         related LOC Documents.

                  (b) Notice and Reports. The request for the issuance of a
         Letter of Credit shall be submitted to the Issuing Lender at least
         three Business Days prior to the requested date of issuance. The
         Issuing Lender will, at least quarterly and more frequently upon
         request, provide to the Administrative Agent for dissemination to the
         Lenders a detailed report specifying the Letters of Credit which are
         then issued and outstanding and any activity with respect thereto which
         may have occurred since the date of the prior report, and including
         therein, among other things, the account party, the beneficiary, the
         face amount, and the expiry date as well as any payments or expirations
         which may have occurred. The Issuing Lender will further provide to the
         Administrative Agent, promptly upon request, copies of the Letters of
         Credit.

                  (c) Participations.

                           (i) On the Effective Date, each Participant shall
                  automatically acquire a participation in the liability of the
                  Issuing Lender under each Existing Letter of Credit in an
                  amount equal to its Revolving Loan Commitment Percentage of
                  such Existing Letters of Credit.

                           (ii) Each Participant, upon issuance of a Letter of
                  Credit, shall be deemed to have purchased without recourse a
                  risk participation from the Issuing Lender in such Letter of
                  Credit and the obligations arising thereunder and any
                  collateral relating thereto, in each case in an amount equal
                  to its Revolving Loan Commitment Percentage of the obligations
                  under such Letter of Credit, and

                                       37
<PAGE>   44
                  shall absolutely, unconditionally and irrevocably assume, as
                  primary obligor and not as surety, and be obligated to pay to
                  the Issuing Lender therefor and discharge when due, its
                  Revolving Loan Commitment Percentage of the obligations
                  arising under such Letter of Credit. Without limiting the
                  scope and nature of each Participant's participation in any
                  Letter of Credit, to the extent that the Issuing Lender has
                  not been reimbursed as required hereunder or under any such
                  Letter of Credit, each such Participant shall pay to the
                  Issuing Lender its Revolving Loan Commitment Percentage of
                  such unreimbursed drawing in same day funds on the day of
                  notification by the Issuing Lender of an unreimbursed drawing
                  pursuant to the provisions of subsection (d) hereof. The
                  obligation of each Participant to so reimburse the Issuing
                  Lender shall be absolute and unconditional and shall not be
                  affected by the occurrence of a Default, an Event of Default
                  or any other occurrence or event. Any such reimbursement shall
                  not relieve or otherwise impair the obligation of the Borrower
                  or any other Credit Party to reimburse the Issuing Lender
                  under any Letter of Credit, together with interest as
                  hereinafter provided.

                  (d) Reimbursement. In the event of any drawing under any
         Letter of Credit, the Issuing Lender will promptly notify the Borrower.
         Unless the Borrower shall immediately notify the Issuing Lender of its
         intent to otherwise reimburse the Issuing Lender, the Borrower shall be
         deemed to have requested a Revolving Loan at the Adjusted Base Rate in
         the amount of the drawing as provided in subsection (e) hereof, the
         proceeds of which will be used to satisfy the reimbursement
         obligations. The Borrower shall reimburse the Issuing Lender on the day
         of drawing under any Letter of Credit either with the proceeds of a
         Revolving Loan obtained hereunder or otherwise in same day funds as
         provided herein or in the LOC Documents. If the Borrower shall fail to
         reimburse the Issuing Lender as provided hereinabove, the unreimbursed
         amount of such drawing shall bear interest at a per annum rate equal to
         the Base Rate plus the Applicable Percentage for Base Rate Loans that
         are Revolving Loans plus two percent (2%). The Borrower's reimbursement
         obligations hereunder shall be absolute and unconditional under all
         circumstances irrespective of (but without waiver of) any rights of
         set-off, counterclaim or defense to payment that the applicable account
         party or the Borrower may claim or have against the Issuing Lender, the
         Agents, the Lenders, the beneficiary of the Letter of Credit drawn upon
         or any other Person, including without limitation, any defense based on
         any failure of the applicable account party, the Borrower or any other
         Credit Party to receive consideration or the legality, validity,
         regularity or unenforceability of the Letter of Credit. The Issuing
         Lender will promptly notify the Participants of the amount of any
         unreimbursed drawing and each Participant shall promptly pay to the
         Administrative Agent for the account of the Issuing Lender, in Dollars
         and in immediately available funds, the amount of such Participant's
         Revolving Loan Commitment Percentage of such unreimbursed drawing. Such
         payment shall be made on the day such notice is received by such Lender
         from the Issuing Lender if such notice is received at or before 2:00
         p.m., otherwise such payment shall be made at or before 12:00 Noon on
         the Business Day next succeeding the day such notice is received. If
         such Participant does not pay such amount to the Issuing Lender in full
         upon such request, such Participant shall, on demand, pay to the
         Administrative Agent for the

                                       38
<PAGE>   45

         account of the Issuing Lender interest on the unpaid amount during the
         period from the date the Participant received the notice regarding the
         unreimbursed drawing until such Participant pays such amount to the
         Issuing Lender in full at a rate per annum equal to, if paid within two
         Business Days of the date of drawing, the Federal Funds Rate and
         thereafter at a rate equal to the Base Rate. Each Participant's
         obligation to make such payment to the Issuing Lender, and the right of
         the Issuing Lender to receive the same, shall be absolute and
         unconditional, shall not be affected by any circumstance whatsoever and
         without regard to the termination of this Credit Agreement or the
         Commitments hereunder, the existence of a Default or Event of Default
         or the acceleration of the obligations hereunder and shall be made
         without any offset, abatement, withholding or reduction whatsoever.
         Simultaneously with the making of each such payment by a Participant to
         the Issuing Lender, such Participant shall, automatically and without
         any further action on the part of the Issuing Lender or such
         Participant, acquire a participation in an amount equal to such payment
         (excluding the portion of such payment constituting interest owing to
         the Issuing Lender) in the related unreimbursed drawing portion of the
         LOC Obligation and in the interest thereon and in the related LOC
         Documents, and shall have a claim against the Borrower and the other
         Credit Parties with respect thereto.

                  (e) Repayment with Revolving Loans. On any day on which the
         Borrower shall have requested, or been deemed to have requested, a
         Revolving Loan borrowing to reimburse a drawing under a Letter of
         Credit, the Administrative Agent shall give notice to the applicable
         Lenders that a Revolving Loan has been requested or deemed requested in
         connection with a drawing under a Letter of Credit, in which case a
         Revolving Loan borrowing comprised solely of Base Rate Loans (each such
         borrowing, a "Mandatory Borrowing") shall be immediately made from all
         applicable Lenders (without giving effect to any termination of the
         Commitments pursuant to Section 9.2 or otherwise) pro rata based on
         each Lender's respective Revolving Loan Commitment Percentage and the
         proceeds thereof shall be paid directly to the Issuing Lender for
         application to the respective LOC Obligations. Each such Lender hereby
         irrevocably agrees to make such Revolving Loans immediately upon any
         such request or deemed request on account of each such Mandatory
         Borrowing in the amount and in the manner specified in the preceding
         sentence and on the same such date notwithstanding (i) the amount of
         Mandatory Borrowing may not comply with the minimum amount for
         borrowings of Revolving Loans otherwise required hereunder, (ii)
         whether any conditions specified in Section 5.2 are then satisfied,
         (iii) whether a Default or Event of Default then exists, (iv) failure
         of any such request or deemed request for Revolving Loans to be made by
         the time otherwise required hereunder, (v) the date of such Mandatory
         Borrowing, or (vi) any reduction in the Revolving Committed Amount or
         any termination of the Commitments. In the event that any Mandatory
         Borrowing cannot for any reason be made on the date otherwise required
         above (including, without limitation, as a result of the commencement
         of a proceeding under the Bankruptcy Code with respect to the Borrower
         or any other Credit Party), then each such Lender hereby agrees that it
         shall forthwith fund (as of the date the Mandatory Borrowing would
         otherwise have occurred, but adjusted for any payments received from
         the Borrower on or after such date and prior to such purchase) its
         Participation Interest in the outstanding LOC Obligations; provided,
         further, that in the event any Lender shall fail to fund its
         Participation Interest on the day the Mandatory

                                       39
<PAGE>   46

         Borrowing would otherwise have occurred, then the amount of such
         Lender's unfunded Participation Interest therein shall bear interest
         payable to the Issuing Lender upon demand, at the rate equal to, if
         paid within two Business Days of such date, the Federal Funds Rate, and
         thereafter at a rate equal to the Base Rate.

                  (f) Designation of Subsidiaries as Account Parties.
         Notwithstanding anything to the contrary set forth in this Credit
         Agreement, a Letter of Credit issued hereunder may contain a statement
         to the effect that such Letter of Credit is issued for the account of a
         Subsidiary of the Borrower; provided that notwithstanding such
         statement, the Borrower shall be the actual account party for all
         purposes of this Credit Agreement for such Letter of Credit and such
         statement shall not affect the Borrower's reimbursement obligations
         hereunder with respect to such Letter of Credit.

                  (g) Modification and Extension. The issuance of any
         supplement, modification, amendment, renewal, or extension to any
         Letter of Credit shall, for purposes hereof, be treated in all respects
         the same as the issuance of a new Letter of Credit hereunder.

                  (h) Uniform Customs and Practices. The Issuing Lender may have
         the Letters of Credit be subject to The Uniform Customs and Practice
         for Documentary Credits (the "UCP") or the International Standby
         Practices 1998 (the "ISP98"), in either case as published as of the
         date of issue by the International Chamber of Commerce, in which case
         the UCP or ISP98, as applicable, may be incorporated therein and deemed
         in all respects to be a part thereof.

                  (i) Responsibility of Issuing Lender. It is expressly
         understood and agreed that the obligations of the Issuing Lender
         hereunder to the Participants are only those expressly set forth in
         this Credit Agreement and that the Issuing Lender shall be entitled to
         assume that the conditions precedent set forth in Section 5.2 have been
         satisfied unless it shall have acquired actual knowledge that any such
         condition precedent has not been satisfied; provided, however, that
         nothing set forth in this Section 2.2 shall be deemed to prejudice the
         right of any Participant to recover from the Issuing Lender any amounts
         made available by such Participant to the Issuing Lender pursuant to
         this Section 2.2 in the event that it is determined by a court of
         competent jurisdiction that the payment with respect to a Letter of
         Credit constituted gross negligence or willful misconduct on the part
         of the Issuing Lender.

                  (j) Conflict with LOC Documents. In the event of any conflict
         between this Credit Agreement and any LOC Document, this Credit
         Agreement shall govern.

                  (k) Indemnification of Issuing Lender.

                           (i) In addition to its other obligations under this
                  Credit Agreement, the Credit Parties hereby agree to protect,
                  indemnify, pay and save the Issuing Lender harmless from and
                  against any and all claims, demands, liabilities, damages,
                  losses, costs, charges and expenses (including reasonable

                                       40
<PAGE>   47

                  attorneys' fees) that the Issuing Lender may incur or be
                  subject to as a consequence, direct or indirect, of (A) the
                  issuance of any Letter of Credit or (B) the failure of the
                  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 or
                  Governmental Authority (all such acts or omissions, herein
                  called "Government Acts").

                           (ii) As between the Credit Parties and the Issuing
                  Lender, the Credit Parties shall assume all risks of the acts,
                  omissions or misuse of any Letter of Credit by the beneficiary
                  thereof. In the absence of gross negligence or willful
                  misconduct, the Issuing Lender shall not be responsible for:
                  (A) 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 Letter
                  of Credit, even if it should in fact prove to be in any or all
                  respects invalid, insufficient, inaccurate, fraudulent or
                  forged; (B) the validity or sufficiency of any instrument
                  transferring or assigning or purporting to transfer or assign
                  any Letter of Credit or the rights or benefits thereunder or
                  proceeds thereof, in whole or in part, that may prove to be
                  invalid or ineffective for any reason; (C) failure of the
                  beneficiary of a Letter of Credit to comply fully with
                  conditions required in order to draw upon a Letter of Credit;
                  (D) 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; (E) errors in
                  interpretation of technical terms; (F) any loss or delay in
                  the transmission or otherwise of any document required in
                  order to make a drawing under a Letter of Credit or of the
                  proceeds thereof; and (G) any consequences arising from causes
                  beyond the control of the Issuing Lender, including, without
                  limitation, any Government Acts. None of the above shall
                  affect, impair, or prevent the vesting of the Issuing Lender's
                  rights or powers hereunder.

                           (iii) In furtherance and extension and not in
                  limitation of the specific provisions hereinabove set forth,
                  any action taken or omitted by the Issuing Lender, under or in
                  connection with any Letter of Credit or the related
                  certificates, if taken or omitted in good faith, shall not put
                  the Issuing Lender under any resulting liability to the
                  Borrower or any other Credit Party. It is the intention of the
                  parties that this Credit Agreement shall be construed and
                  applied to protect and indemnify the Issuing Lender against
                  any and all risks involved in the issuance of the Letters of
                  Credit, all of which risks are hereby assumed by the Credit
                  Parties, including, without limitation, any and all risks of
                  the acts or omissions, whether rightful or wrongful, of any
                  present or future Government Acts. The Issuing Lender shall
                  not, in any way, be liable for any failure by the Issuing
                  Lender or anyone else to pay any drawing under any Letter of
                  Credit as a result of any Government Acts or any other cause
                  beyond the control of the Issuing Lender.

                           (iv) Nothing in this subsection (k) is intended to
                  limit the reimbursement obligation of the Borrower contained
                  in this Section 2.2. The

                                       41
<PAGE>   48

                  obligations of the Borrower under this subsection (k) shall
                  survive the termination of this Credit Agreement. No act or
                  omission of any current or prior beneficiary of a Letter of
                  Credit shall in any way affect or impair the rights of the
                  Issuing Lender to enforce any right, power or benefit under
                  this Credit Agreement.

                           (v) Notwithstanding anything to the contrary
                  contained in this subsection (k), the Borrower shall have no
                  obligation to indemnify the Issuing Lender in respect of any
                  liability incurred by the Issuing Lender arising out of the
                  gross negligence or willful misconduct of the Issuing Lender.
                  Nothing in this Credit Agreement shall relieve the Issuing
                  Lender of any liability to the Borrower in respect of any
                  action taken by the Issuing Lender which action constitutes
                  gross negligence or willful misconduct of the Issuing Lender
                  or a violation of the UCP, the ISP98 or Uniform Commercial
                  Code (as applicable).

         2.3 TRANCHE A TERM LOANS.

                  (a) Tranche A Term Loan. Subject to the terms and conditions
         set forth herein, each Lender severally agrees, on the Effective Date,
         to make a term loan (collectively, the "Tranche A Term Loans") to the
         Borrower, in Dollars, in an amount equal to such Lender's Tranche A
         Term Loan Commitment Percentage, if any, of the Tranche A Term Loan
         Committed Amount; provided that the aggregate amount of such Tranche A
         Term Loans made on the Effective Date shall not exceed the Tranche A
         Term Loan Committed Amount. Once repaid, Tranche A Term Loans cannot be
         reborrowed.

                  (b) Funding of Tranche A Term Loans. On the Effective Date,
         each applicable Lender will make its Tranche A Term Loan Commitment
         Percentage of the Tranche A Term Loan Committed Amount available to the
         Administrative Agent by deposit, in Dollars and in immediately
         available funds, at the offices of the Administrative Agent at its
         principal office in Charlotte, North Carolina or at such other address
         as the Administrative Agent may designate in writing. The amount of the
         Tranche A Term Loans will then be made available to the Borrower by the
         Administrative Agent by crediting the account of the Borrower on the
         books of such office of the Administrative Agent, to the extent the
         amount of such Tranche A Term Loans are made available to the
         Administrative Agent. All Tranche A Term Loans on the Effective Date
         shall be Base Rate Loans. Thereafter, all or any portion of the Tranche
         A Term Loans may be converted into Eurocurrency Loans in accordance
         with the terms of Section 2.7 and the definition of "Interest Period"
         set forth in Section 1.1.

                  No Lender shall be responsible for the failure or delay by any
         other Lender in its obligation to make a Tranche A Term Loan hereunder;
         provided, however, that the failure of any Lender to fulfill its
         obligations hereunder shall not relieve any other Lender of its
         obligations hereunder. If the Administrative Agent shall have received
         an executed signature page to this Credit Agreement (whether an
         original or via telecopy) from a Lender, the Administrative Agent may
         assume that such Lender has or will make the amount of its Tranche A
         Term Loans available to the Administrative Agent on the Effective Date,
         and the Administrative Agent in reliance upon such assumption, may (in
         its sole discretion but without any obligation to do so) make available
         to the Borrower a corresponding amount. If

                                       42
<PAGE>   49

         such corresponding amount is not in fact made available to the
         Administrative Agent, the Administrative Agent shall be able to recover
         such corresponding amount from such Lender. If such Lender does not pay
         such corresponding amount forthwith upon the Administrative Agent's
         demand therefor, the Administrative Agent will promptly notify the
         Borrower, and the Borrower shall immediately pay such corresponding
         amount to the Administrative Agent. The Administrative Agent shall also
         be entitled to recover from the Lender or the Borrower, as the case may
         be, interest on such corresponding amount in respect of each day from
         the date such corresponding amount was made available by the
         Administrative Agent to the Borrower to the date such corresponding
         amount is recovered by the Administrative Agent at a per annum rate
         equal to (i) from the Borrower at the Adjusted Base Rate and (ii) from
         a Lender at the Federal Funds Rate if paid within two Business Days of
         the date of drawing and thereafter at a rate equal to the Base Rate.

                  (c) Amortization. The principal amount of the Tranche A Term
         Loans shall be repaid in quarterly payments on the dates set forth
         below:

<TABLE>
<CAPTION>
                            Principal Amortization                        Tranche A Term Loan
                                Payment Dates                        Principal Amortization Payment
                            ----------------------                   ------------------------------
<S>                                                                  <C>
                                  12/31/00                                     $1,000,000
                                   3/31/01                                     $1,000,000
                                   6/30/01                                     $1,000,000
                                   9/30/01                                     $1,000,000
                                  12/31/01                                     $2,000,000
                                   3/31/02                                     $2,000,000
                                   6/30/02                                     $2,000,000
                                   9/30/02                                     $2,000,000
                                  12/31/02                                     $2,000,000
                                   3/31/03                                     $2,000,000
                                   6/30/03                                     $2,000,000
                                   9/30/03                                     $2,000,000
                                  12/31/03                                     $3,000,000
                                   3/31/04                                     $3,000,000
                                   6/30/04                                     $3,000,000
                                   9/30/04                                     $3,000,000
                                  12/31/04                                     $4,000,000
                                   3/31/05                                     $4,000,000
                                   6/30/05                                     $4,000,000
                                   9/30/05                                     $4,000,000
                                  12/31/05                                     $8,000,000
                                   3/31/06                                     $8,000,000
                                   6/30/06                                     $8,000,000
                      Tranche A Term Loan Maturity Date                        $8,000,000
</TABLE>

                  (d) Tranche A Term Notes. The portion of the Tranche A Term
         Loan made by each Lender shall be evidenced by a duly executed
         promissory note of the Borrower to such Lender in an original principal
         amount equal to such Lender's Tranche A Term Loan Commitment Percentage
         of the Tranche A Term Loan Committed Amount and substantially in the
         form of Exhibit 2.3(d).

                                       43
<PAGE>   50

         2.4 TRANCHE B TERM LOANS.

                  (a) Tranche B Term Loan. Subject to the terms and conditions
         set forth herein, each Lender severally agrees, on the Effective Date,
         to make a term loan (collectively, the "Tranche B Term Loans") to the
         Borrower, in Dollars, in an amount equal to such Lender's Tranche B
         Term Loan Commitment Percentage, if any, of the Tranche B Term Loan
         Committed Amount; provided that the aggregate amount of such Tranche B
         Term Loans made on the Effective Date shall not exceed the Tranche B
         Term Loan Committed Amount. Once repaid, Tranche B Term Loans cannot be
         reborrowed.

                  (b) Funding of Tranche B Term Loans. On the Effective Date,
         each applicable Lender will make its Tranche B Term Loan Commitment
         Percentage of the Tranche B Term Loan Committed Amount available to the
         Administrative Agent by deposit, in Dollars and in immediately
         available funds, at the offices of the Administrative Agent at its
         principal office in Charlotte, North Carolina or at such other address
         as the Administrative Agent may designate in writing. The amount of the
         Tranche B Term Loans will then be made available to the Borrower by the
         Administrative Agent by crediting the account of the Borrower on the
         books of such office of the Administrative Agent, to the extent the
         amount of such Tranche B Term Loans are made available to the
         Administrative Agent. All Tranche B Term Loans on the Effective Date
         shall be Base Rate Loans. Thereafter, all or any portion of the Tranche
         B Term Loans may be converted into Eurocurrency Loans in accordance
         with the terms of Section 2.7 and the definition of "Interest Period"
         set forth in Section 1.1.

                  No Lender shall be responsible for the failure or delay by any
         other Lender in its obligation to make a Tranche B Term Loan hereunder;
         provided, however, that the failure of any Lender to fulfill its
         obligations hereunder shall not relieve any other Lender of its
         obligations hereunder. If the Administrative Agent shall have received
         an executed signature page to this Credit Agreement (whether an
         original or via telecopy) from a Lender, the Administrative Agent may
         assume that such Lender has or will make the amount of its Tranche B
         Term Loans available to the Administrative Agent on the Effective Date,
         and the Administrative Agent in reliance upon such assumption, may (in
         its sole discretion but without any obligation to do so) make available
         to the Borrower a corresponding amount. If such corresponding amount is
         not in fact made available to the Administrative Agent, the
         Administrative Agent shall be able to recover such corresponding amount
         from such Lender. If such Lender does not pay such corresponding amount
         forthwith upon the Administrative Agent's demand therefor, the
         Administrative Agent will promptly notify the Borrower, and the
         Borrower shall immediately pay such corresponding amount to the
         Administrative Agent. The Administrative Agent shall also be entitled
         to recover from the Lender or the Borrower, as the case may be,
         interest on such corresponding amount in respect of each day from the
         date such corresponding amount was made available by the Administrative
         Agent to the Borrower to the date such corresponding amount is
         recovered by the Administrative Agent at a per annum rate equal to (i)
         from the Borrower at the Adjusted Base Rate and (ii) from a Lender at
         the Federal Funds Rate if paid within two Business Days of the date of
         drawing and thereafter at a rate equal to the Base Rate.

                                       44
<PAGE>   51

                  (c) Amortization. The principal amount of the Tranche B Term
         Loans shall be repaid in quarterly payments on the dates set forth
         below:

<TABLE>
<CAPTION>
                             Principal Amortization                         Tranche B Term Loan
                                  Payment Dates                            Amortization Payment
                             ----------------------                        --------------------
<S>                                                                        <C>
                                    12/31/00                                    $   250,000
                                     3/31/01                                    $   250,000
                                     6/30/01                                    $   250,000
                                     9/30/01                                    $   250,000
                                    12/31/01                                    $   250,000
                                     3/31/02                                    $   250,000
                                     6/30/02                                    $   250,000
                                     9/30/02                                    $   250,000
                                    12/31/02                                    $   250,000
                                     3/31/03                                    $   250,000
                                     6/30/03                                    $   250,000
                                     9/30/03                                    $   250,000
                                    12/31/03                                    $   250,000
                                     3/31/04                                    $   250,000
                                     6/30/04                                    $   250,000
                                     9/30/04                                    $   250,000
                                    12/31/04                                    $   250,000
                                     3/31/05                                    $   250,000
                                     6/30/05                                    $   250,000
                                     9/30/05                                    $   250,000
                                    12/31/05                                    $   250,000
                                     3/31/06                                    $   250,000
                                     6/30/06                                    $   250,000
                                     9/30/06                                    $   250,000
                                    12/31/06                                    $21,750,000
                                     3/31/07                                    $21,750,000
                                     6/30/07                                    $21,750,000
                                     9/30/07                                    $21,750,000
                                    12/31/07                                    $21,750,000
                                     3/31/08                                    $21,750,000
                                     6/30/08                                    $21,750,000
                        Tranche B Term Loan Maturity Date                       $21,750,000
</TABLE>

                  (d) Tranche B Term Notes. The portion of the Tranche B Term
         Loan made by each Lender shall be evidenced by a duly executed
         promissory note of the Borrower to such Lender in an original principal
         amount equal to such Lender's Tranche B Term Loan Commitment Percentage
         of the Tranche B Term Loan Committed Amount and substantially in the
         form of Exhibit 2.4(d).

                                       45
<PAGE>   52

         2.5 SWING LINE LOANS SUBFACILITY.

                  (a) Swing Line Loans. The Swing Line Lender hereby agrees, on
         the terms and subject to the conditions set forth herein and in the
         other Credit Documents, to make loans to the Borrower in Dollars at any
         time and from time to time during the period from and including the
         Effective Date to but not including the Revolving Loan Maturity Date
         (each such loan, a "Swing Line Loan" and collectively, the "Swing Line
         Loans"); provided that (i) the aggregate principal amount of the Swing
         Line Loans outstanding at any one time shall not exceed the Swing Line
         Committed Amount and (ii) the aggregate amount of Swing Line Loans
         outstanding plus the aggregate amount of Revolving Loans outstanding
         plus the aggregate amount of LOC Obligations outstanding plus the
         aggregate amount of Foreign Currency Loans outstanding shall not exceed
         the Revolving Committed Amount. Subject to the terms of this Credit
         Agreement (including Section 3.3), the Borrower may borrow, repay and
         reborrow Swing Line Loans.

                  (b) Method of Borrowing and Funding Swing Line Loans. By no
         later than 1:00 p.m. on the date of the requested borrowing of Swing
         Line Loans, the Borrower shall telephone the Swing Line Lender as well
         as submit a Swing Line Loan Request to the Swing Line Lender in the
         form of Exhibit 2.5(b) setting forth (i) the amount of the requested
         Swing Line Loan and (ii) the date of the requested Swing Line Loan and
         complying in all respects with Section 5.2. The Swing Line Lender shall
         initiate the transfer of funds representing the Swing Line Loan advance
         to the Borrower by 3:00 p.m. on the Business Day of the requested
         borrowing.

                  (c) Repayment and Participations of Swing Line Loans. The
         Borrower agrees to repay all Swing Line Loans within one Business Day
         of demand therefor by the Swing Line Lender. Each repayment of a Swing
         Line Loan may be accomplished by requesting Revolving Loans which
         request is not subject to the conditions set forth in Section 5.2. In
         the event that the Borrower shall fail to timely repay any Swing Line
         Loan, and in any event upon (i) a request by the Swing Line Lender,
         (ii) the occurrence of an Event of Default described in Section 9.1(f)
         or (iii) the acceleration of any Loan or termination of any Commitment
         pursuant to Section 9.2, each other Participant shall irrevocably and
         unconditionally purchase from the Swing Line Lender, without recourse
         or warranty, an undivided interest and participation in such Swing Line
         Loan in an amount equal to such other Lender's Revolving Loan
         Commitment Percentage thereof, by directly purchasing a participation
         in such Swing Line Loan in such amount (regardless of whether the
         conditions precedent thereto set forth in Section 5.2 are then
         satisfied, whether or not the Borrower has submitted a Notice of
         Borrowing and whether or not the Commitments are then in effect, any
         Event of Default exists or all the Loans have been accelerated) and
         paying the proceeds thereof to the Swing Line Lender at the address
         provided in Section 11.1, or at such other address as the Swing Line
         Lender may designate, in Dollars and in immediately available funds. If
         such amount is not in fact made available to the Swing Line Lender by
         any Participant, the Swing Line Lender shall be entitled to recover
         such amount on demand from such Participant, together with accrued
         interest thereon for each day from the date of demand thereof, at the
         Federal Funds Rate. If such Participant does not pay such amount
         forthwith upon the Swing Line Lender's demand therefor, and until such
         time as such

                                       46
<PAGE>   53

         Participant makes the required payment, the Swing Line Lender shall be
         deemed to continue to have outstanding Swing Line Loans in the amount
         of such unpaid participation obligation for all purposes of the Credit
         Documents other than those provisions requiring the other Participants
         to purchase a participation therein. Further, such Participant shall be
         deemed to have assigned any and all payments made of principal and
         interest on its Loans, and any other amounts due to it hereunder to the
         Swing Line Lender to fund Swing Line Loans in the amount of the
         participation in Swing Line Loans that such Participant failed to
         purchase pursuant to this Section 2.5(c) until such amount has been
         purchased (as a result of such assignment or otherwise).

                  (d) Swing Line Loan Note. The Swing Line Loans made by the
         Swing Line Lender shall be evidenced by a duly executed promissory note
         of the Borrower to the Swing Line Lender in the face amount of the
         Swing Line Committed Amount and in substantially the form of Exhibit
         2.5(d).

         2.6 FOREIGN CURRENCY LOANS SUBFACILITY.

                  (a) Foreign Currency Loans. Each Foreign Currency Lender
         hereby agrees, on the terms and subject to the conditions set forth
         herein and in the other Credit Documents, including, but not limited
         to, the limitations as to the Foreign Subsidiary Borrowers, the Foreign
         Currency and the Foreign Subsidiary Borrower Locations set forth on
         Schedule 2.6, and the limitations set forth below, to make revolving
         loans to (1) the Borrower and (2) the applicable Foreign Subsidiary
         Borrowers (provided any such Foreign Subsidiary Borrower has met the
         conditions set forth in Section 2.6(f)) in such Foreign Currency at any
         time and from time to time during the period from and including the
         Effective Date to but not including the Revolving Loan Maturity Date
         (each such loan, a "Foreign Currency Loan" and collectively, the
         "Foreign Currency Loans"); provided that (i) the aggregate principal
         amount of the Foreign Currency Loans outstanding at any one time shall
         not exceed the Foreign Currency Committed Amount, (ii) the aggregate
         principal amount of Foreign Currency Loans outstanding at any one time
         to Foreign Subsidiary Borrowers in the United Kingdom shall not exceed
         $25,000,000, (iii) the aggregate principal amount of Foreign Currency
         Loans outstanding at any one time to Foreign Subsidiary Borrowers in
         France shall not exceed $20,000,000, (iv) the aggregate principal
         amount of Foreign Currency Loans outstanding at any one time to Foreign
         Subsidiary Borrowers in Germany shall not exceed $50,000,000, (v) the
         aggregate principal amount of Foreign Currency Loans outstanding at any
         one time to Foreign Subsidiary Borrowers in Argentina shall not exceed
         $15,000,000,(vi) the aggregate principal amount of Foreign Currency
         Loans outstanding to the Borrower shall not exceed $25,000,000 and
         (vii) the aggregate amount of Foreign Currency Loans outstanding plus
         the aggregate amount of Revolving Loans outstanding plus the aggregate
         amount of LOC Obligations outstanding plus the aggregate amount of
         Swing Line Loans outstanding shall not exceed the Revolving Committed
         Amount. Subject to the terms of this Credit Agreement (including
         Section 3.3), the Borrower and the applicable Foreign Subsidiary
         Borrowers, as the case may be, may borrow, repay and reborrow Foreign
         Currency Loans.

                                       47
<PAGE>   54

                  Notwithstanding the above (A) the limits set forth in clauses
         (ii), (iii), (iv), (v) and (vi) above, such limits may be increased
         upon the written request by the Borrower and the consent thereto by the
         Administrative Agent and (B) any Foreign Currency Loans made to the
         Borrower must be delivered to the Borrower in England, France, Germany
         or Argentina.

                  (b) Method of Borrowing and Funding Foreign Currency Loans. By
         no later than 11:00 a.m. (i) two Business Days prior to the date of the
         requested borrowing of Foreign Currency Loans that will be Base Rate
         Loans or (ii) five Business Days prior to the date of the requested
         borrowing of Foreign Currency Loans that will be Eurocurrency Loans,
         the Borrower shall telephone the Administrative Agent as well as submit
         a written Foreign Currency Notice of Borrowing in the form of Exhibit
         2.6(b) to the Administrative Agent setting forth (A) the Borrower or
         the Foreign Subsidiary Borrower borrowing such Foreign Currency Loans,
         (B) the amount requested, (C) the Foreign Currency requested, (D) the
         account of the Borrower or the Foreign Subsidiary Borrower to which
         such Foreign Currency Loans shall be funded, (E) whether such Foreign
         Currency Loans shall accrue interest at the Adjusted Base Rate or the
         Adjusted Eurocurrency Rate, (F) with respect to Foreign Currency Loans
         that will be Eurocurrency Loans, the Interest Period applicable thereto
         and (G) certification that the Borrower has complied in all respects
         with Section 5.2 and, if applicable, Section 2.6(f). The Administrative
         Agent shall promptly forward such information to the applicable Foreign
         Currency Lender and the Participants. If the Borrower shall fail to
         specify (x) an Interest Period in the case of a Eurocurrency Loan, then
         such Eurocurrency Loan shall be deemed to have an Interest Period of
         one month, or (y) the type of Foreign Currency Loan requested, then
         such Foreign Currency Loan shall be deemed to be a Base Rate Loan. All
         Foreign Currency Loans on the Effective Date shall be Base Rate Loans.
         Thereafter, all or any portion of the Foreign Currency Loans may be
         converted into Eurocurrency Loans in accordance with the terms of
         Section 2.7 and the definition of "Interest Period" set forth in
         Section 1.1.

                  Notwithstanding anything herein to the contrary, Foreign
         Currency Loans, other than Foreign Currency Loans made in British
         Pounds Sterling, may not be requested, and will not funded, as Base
         Rate Loans.

                  (c) Funding of Foreign Currency Loans. The applicable Foreign
         Currency Lender shall make the requested Foreign Currency Loans
         available to the Borrower or the Foreign Subsidiary Borrower by 1:00
         p.m. (local time of the country in which such Foreign Currency Loan is
         to be delivered) on the date specified in the Foreign Currency Notice
         of Borrowing by deposit of immediately available funds in the
         applicable Foreign Currency in the Borrower's or the Foreign Subsidiary
         Borrower's account set forth in the Foreign Currency Notice of
         Borrowing

                  (d) Participations of Foreign Currency Loans. At the time that
         a Foreign Currency Lender makes a Foreign Currency Loan, each
         Participant shall be deemed, without any further action by any Person,
         to have purchased from such Foreign Currency Lender an unfunded
         participation, without recourse to or warranty of the Foreign Currency
         Lender, in such Foreign Currency Loan in an amount equal to such
         Participant's Revolving Loan

                                       48
<PAGE>   55

         Commitment Percentage of such Foreign Currency Loan and shall be
         obligated to fund such participation at the time and in the manner
         provided below. In the event that the Borrower or a Foreign Subsidiary
         Borrower shall fail to timely repay any Foreign Currency Loan, and in
         any event upon (i) the request of the Foreign Currency Lender and (ii)
         the occurrence and during the continuance of a Default or an Event of
         Default, each Participant shall fund its participation in such Foreign
         Currency Loan (regardless of whether the conditions precedent thereto
         set forth in Section 5.2 are then satisfied, whether or not the
         Borrower has submitted a Foreign Currency Notice of Borrowing and
         whether or not the Commitments are then in effect, any Event of Default
         exists or all the Loans have been accelerated) by paying to such
         Foreign Currency Lender, at the address provided in Section 11.1 or at
         such other address as the Foreign Currency Lender may designate, the
         U.S. Dollar Equivalent (as determined as of the date such participation
         is to be funded) of such Foreign Currency Loan. Upon the funding of its
         Revolving Loan Commitment Percentage of a Foreign Currency Loan, a
         Participant shall have a Foreign Currency Loan in the amount funded and
         shall be deemed a Foreign Currency Lender for purposes hereof. If such
         amount is not in fact made available to the Foreign Currency Lender by
         any Participant, the Foreign Currency Lender shall be entitled to
         recover such amount on demand from such Participant, together with
         accrued interest thereon for each day from the date of demand thereof,
         at the Federal Funds Rate if paid within two Business Days of the date
         of demand thereof, and thereafter at a rate equal to the Base Rate. If
         such Participant does not pay such amount forthwith upon the Foreign
         Currency Lender's demand therefor, and until such time as such
         Participant makes the required payment, the Foreign Currency Lender
         shall be deemed to continue to have outstanding Foreign Currency Loans
         in the amount of such unpaid participation obligation for all purposes
         of the Credit Documents other than those provisions requiring the
         Participants to purchase a participation therein. Further, such
         Participant shall be deemed to have assigned any and all payments made
         of principal and interest on its Loans, and any other amounts due to it
         hereunder to the Foreign Currency Lender to fund Foreign Currency Loans
         in the amount of the participation in Foreign Currency Loans that such
         Participant failed to purchase pursuant to this Section 2.6(d) until
         such amount has been purchased (as a result of such assignment or
         otherwise).

                  (e) Foreign Currency Note. The Foreign Currency Loans made by
         each Foreign Currency Lender shall not be required to be evidenced by
         any notes but, if requested by the Administrative Agent or the
         applicable Foreign Currency Lender, shall be evidenced by a duly
         executed promissory note of the Borrower or the applicable Foreign
         Subsidiary Borrower to such Foreign Currency Lender in form and
         substance acceptable to the Administrative Agent and such Foreign
         Currency Lender.

                  (f) Foreign Subsidiary Borrowers. Subject to the conditions
         set forth below, the Borrower may designate one or more Foreign
         Subsidiaries for purposes of receiving a Foreign Currency Loan.

                           (i) In order for any Foreign Subsidiary of the
                  Borrower to become a Foreign Subsidiary Borrower, the
                  Administrative Agent shall receive (A) a duly executed Foreign
                  Joinder Agreement, in the form of Exhibit 2.6(f), from such
                  Foreign Subsidiary, (B) if requested, a note from such Foreign
                  Subsidiary in form and substance acceptable to the Collateral
                  Agent, (C) collateral documents granting

                                       49
<PAGE>   56

                  to the Collateral Agent, for the benefit of the Lenders, a
                  Lien on all the assets of such Foreign Subsidiary to the
                  extent permitted by law and if practical (as determined by the
                  Collateral Agent), (D) a guaranty of the Foreign Currency
                  Loans to the Foreign Subsidiary Borrower in question by all
                  Foreign Subsidiaries that are either direct or indirect
                  Subsidiaries of such Foreign Subsidiary or a direct or
                  indirect foreign parent of such Foreign Subsidiary (each, a
                  "Foreign Guaranty Agreement"), together with collateral
                  documents securing such Foreign Guaranty Agreements by all of
                  the assets of such Foreign Subsidiaries to the extent
                  permitted by law and to the extent practical (as determined by
                  the Collateral Agent) and (E) such other authorization
                  documents, resolutions, opinions and collateral documents as
                  reasonably required by the Collateral Agent. Pursuant to such
                  requested documentation, including the Foreign Guaranty
                  Agreements, the Foreign Guarantors party to such Foreign
                  Guaranty Agreements shall be liable for any Foreign Currency
                  Loans made to the Foreign Subsidiary Borrower with respect to
                  which the Foreign Guarantee Agreements were entered into and
                  all Collateral pledged by such Foreign Subsidiary Borrower or
                  such Foreign Guarantors shall secure the obligations of such
                  Foreign Subsidiary Borrower to the Lenders. The Administrative
                  Agent shall promptly notify the Participants of any such
                  request and thereafter shall provide the Participants copies
                  of the Foreign Joinder Agreement.

                           (ii) The Foreign Credit Party Obligations of a
                  Foreign Subsidiary Borrower shall be several as to such
                  Foreign Subsidiary Borrower and joint and several as to the
                  Foreign Guarantors (including the Domestic Credit Parties)
                  that guarantee the Foreign Credit Party Obligations of the
                  Foreign Subsidiary Borrower in question. The Agents and the
                  Lenders shall have the right to communicate solely with the
                  Borrower regarding any borrowing, repayment, continuation or
                  conversion of any Foreign Currency Loan made to a Foreign
                  Subsidiary Borrower.

                  (g) Cash Collateralization of Participation Interest. If, and
         for so long as, any Participant's public debt rating (as defined below)
         is below A- by S&P or A3 by Moody's (or, with respect to any
         Participant that does not have a public debt rating at any time of
         determination, a Foreign Currency Lender shall determine that such
         Participant's ability to meet such Participant's obligations under
         subsection (d) above has declined since the date such Participant
         became a Participant hereunder), (i) such Participant shall,
         immediately upon demand by any Foreign Currency Lender, cash
         collateralize its Revolving Loan Commitment Percentage of the aggregate
         principal amount of all outstanding Foreign Currency Loans by
         depositing such amount into a cash collateral account designated by the
         Administrative Agent, and (ii) each such Participant shall, if so
         demanded by any Foreign Currency Lender in its sole discretion by
         written notice to the Administrative Agent and such Participant, prior
         to the funding by the Foreign Currency Lender of any Foreign Currency
         Loans, deposit in such cash collateral account an amount equal to such
         Participant's Revolving Loan Commitment Percentage of the aggregate
         amount of such Foreign Currency Loan. Amounts deposited by any
         Participant in any such cash collateral account shall be (A) held for
         the benefit of the applicable Foreign Currency Lender, (B) applied by
         the Administrative Agent to satisfy such Participant's obligations
         under subsection (d) above, (C) to the extent such amounts exceed at
         any time such Participant's Revolving Loan Commitment Percentage of all
         outstanding Foreign

                                       50
<PAGE>   57

         Currency Loans, returned to such Participant and (D) at the request of
         such Participant, invested in Cash Equivalents and any earnings with
         respect thereto remitted to such Participant as such Participant may
         direct. The term "public debt rating" means, as of any date with
         respect to any Person, the rating that has been most recently announced
         by either S&P or Moody's, as the case may be, for any class of
         non-credit enhanced long-term senior unsecured debt issued by such
         Person.

                  (h) Governing Law; Service of Process. Each Foreign Joinder
         Agreement, each Foreign Currency Note and each Foreign Guaranty
         Agreement shall be governed by and construed and interpreted in
         accordance with the laws of the State of New York unless the
         Administrative Agent is advised by foreign legal counsel that such
         Foreign Joinder Agreement, Foreign Currency Note or Foreign Guaranty
         Agreement should be governed by the laws of another jurisdiction, in
         which case such Foreign Joinder Agreement, Foreign Currency Note or
         Foreign Guaranty Agreement, as applicable, shall be governed by such
         other jurisdiction. Each Foreign Credit Party shall irrevocably at all
         times maintain an agent for purposes of service of process in
         connection with matters arising under this Credit Agreement and the
         other Credit Documents, such agent to be acceptable to the
         Administrative Agent; it being understood that the Borrower, as of the
         Closing Date, is deemed by the Administrative Agent to be acceptable to
         act as the agent for service of process for any Foreign Credit Party.

                  (i) Further Assurances. The Credit Parties shall deliver, or
         cause their Subsidiaries to deliver, prior to or in conjunction with
         the funding of any Foreign Currency Loan, any document or instrument
         reasonably required by the Administrative Agent or the Foreign Currency
         Lender with respect to such Foreign Currency Loan, including, without
         limitation, promissory notes, resolutions, organizational documents,
         incumbency certificates, legal opinions, mortgage instruments, title
         policies, security agreements, pledge agreements and other collateral
         documentation.

                  (j) Introduction of Euro; National Currency Unit Advances,
         Etc.

                           (i) National Currency Unit Advances. Prior to the
                  Transition Period Cutoff Date, Foreign Currency Loans made in
                  EMU Currency may be funded and maintained in National Currency
                  Units of the EMU Currency designated by the Borrower in its
                  Foreign Currency Notice of Borrowing. Repayments of Foreign
                  Currency Loans that were funded in National Currency Units
                  pursuant to this Section 2.6(j) shall be made in such National
                  Currency Units; provided, however, that any Foreign Currency
                  Loan that is (A) denominated in National Currency Units and
                  (B) outstanding as of the Transition Period Cutoff Date shall
                  be automatically redenominated into Euro as of the close of
                  business on such date at the applicable Irrevocable Conversion
                  Rate; and provided further that repayments of all such Foreign
                  Currency Loans made after the Transition Period Cutoff Date
                  shall be denominated in Euro. After the Transition Period
                  Cutoff Date, Foreign Currency Loans shall no longer be funded
                  in National Currency Units.

                                       51
<PAGE>   58

                           (ii) Conversions to Euro. The parties hereto agree
                  that neither the fixation of the conversion rate of EMU
                  Currency against the Euro as a single currency, in accordance
                  with the Treaty on European Union, nor the conversion of any
                  Credit Party Obligations under the Credit Documents from EMU
                  Currency, or National Currency Units, into Euro, shall require
                  the early termination of this Credit Agreement or the
                  prepayment of any amount due under the Credit Documents or
                  create any liability of one party to another party for any
                  direct or consequential loss arising from any of such events.

                           (iii) Currency Translations; Rounding. Any
                  translation from one currency or currency unit to another
                  shall be at the rate specified herein or, if not so specified,
                  then at the official rate of exchange legally recognized by
                  the central bank of the country issuing such currency for the
                  conversion of that currency or currency unit into the other.
                  Any such translation shall be rounded up or down by the
                  Administrative Agent acting in accordance with any applicable
                  law on rounding or, if there is no such law, acting reasonably
                  in accordance with its market practice.

                           (iv) Changes in Currency. If a change in any currency
                  of a country occurs, this Agreement will be amended to the
                  extent the Administrative Agent reasonably specifies to be
                  necessary to reflect the change in currency and to put the
                  parties hereto in the same position, as far as possible, that
                  they would have been in if no change in currency had occurred;
                  provided that any such amendments will not adversely affect
                  the Lenders.

         2.7 CONTINUATIONS AND CONVERSIONS.

         The Borrower shall have the option, on any Business Day, on behalf of
itself or a Foreign Subsidiary Borrower, to continue existing Eurocurrency Loans
for a subsequent Interest Period, to convert Base Rate Loans into Eurocurrency
Loans or to convert Eurocurrency Loans into Base Rate Loans; provided, however,
that (a) each such continuation or conversion must be requested by the Borrower
pursuant to a written Notice of Continuation/Conversion, in the form of Exhibit
2.7, in compliance with the terms set forth below, (b) except as provided in
Section 3.11, Eurocurrency Loans may only be continued or converted into Base
Rate Loans on the last day of the Interest Period applicable hereto, (c)
Eurocurrency Loans may not be continued nor may Base Rate Loans be converted
into Eurocurrency Loans during the existence and continuation of a Default or
Event of Default without the consent of the Required Lenders, (d) any request to
extend a Eurocurrency Loan that fails to comply with the terms hereof or any
failure to request an extension of a Eurocurrency Loan at the end of an Interest
Period shall constitute a conversion to a Base Rate Loan on the last day of the
applicable Interest Period and (e) any request for continuation or conversion of
a Eurocurrency Loan which shall fail to specify an Interest Period shall be
deemed to be a request for an Interest Period of one month. Each continuation or
conversion must be requested by the Borrower no later than 11:00 a.m. (i) on the
date for a requested conversion of a Eurocurrency Loan to a Base Rate Loan or
(ii) three Business Days prior to the date for a requested continuation of a
Eurocurrency Loan or conversion of a Base Rate Loan to a Eurocurrency Loan, in
each case pursuant to a written Notice of

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<PAGE>   59

Continuation/Conversion submitted to the Administrative Agent which shall set
forth (A) whether the Loans to be continued or converted are Revolving Loans,
Tranche A Term Loans or Tranche B Term Loans, (B) whether the Loans to be
continued or converted are Foreign Currency Loans, (C) whether the Borrower
wishes to continue or convert such Loans and (D) if the request is to continue a
Eurocurrency Loan or convert a Base Rate Loan to a Eurocurrency Loan, the
Interest Period applicable thereto.

         2.8 MINIMUM AMOUNTS.

         Each request for a borrowing, conversion or continuation shall be
subject to the requirements that (a) each Eurocurrency Loan shall be in a
minimum amount of $2,500,000 (or with respect to a Foreign Currency Loan, the
U.S. Dollar Equivalent of the applicable Foreign Currency) and in integral
multiples of $500,000 (or with respect to a Foreign Currency Loan, the U.S.
Dollar Equivalent of the applicable Foreign Currency) in excess thereof, (b)
each Base Rate Loan shall be in a minimum amount of the lesser of $500,000 (or
with respect to a Foreign Currency Loan, the U.S. Dollar Equivalent of the
applicable Foreign Currency) (and integral multiples of $500,000 (or with
respect to a Foreign Currency Loan, the U.S. Dollar Equivalent of the applicable
Foreign Currency) in excess thereof) or the remaining amount available under the
Revolving Committed Amount, the Tranche A Term Loan Committed Amount or the
Tranche B Term Loan Committed Amount, as applicable and (c) no more than fifteen
Eurocurrency Loans shall be outstanding hereunder at any one time. For the
purposes of this Section, all Eurocurrency Loans with the same Interest Periods
that begin and end on the same date shall be considered as one Eurocurrency
Loan, but Eurocurrency Loans with different Interest Periods, even if they begin
on the same date, shall be considered as separate Eurocurrency Loans.

         2.9 CURRENCY EQUIVALENTS.

         For purposes of determining compliance with Section 2.1(a), Section
2.2(a) Section 2.5, Section 2.6, Section 3.3(b)(i), Section 5.2(e), Section 8.1,
Section 8.6 and all other relevant Sections of this Agreement, (a) the amount of
each Foreign Currency Loan (a) shall be converted to its U.S. Dollar Equivalent
on (i) the date two Business Days prior to the date of the borrowing, conversion
or continuation with respect to such Foreign Currency Loan as set forth in the
applicable Foreign Currency Notice of Borrowing or Notice of
Continuation/Conversion and (ii) on the last Business Day of each calendar month
and (b) the amount of Indebtedness incurred pursuant to Section 8.1(l) and the
amount of any other Indebtedness incurred by a Credit Party or one of its
Subsidiaries shall be converted to its U.S. Dollar Equivalent on the last
Business Day of each calendar month (each such date in clause (a) and (b) above
referred to herein as a "Conversion Date"). From and after any Conversion Date,
until the next Conversion Date, each Foreign Currency Loan, all outstanding
Indebtedness pursuant to Section 8.1(l) and all other Indebtedness incurred by a
Credit Party or one of its Subsidiaries shall be deemed to remain equivalent to
the U.S. Dollar Equivalent determined in accordance with clauses (a) and (b)
above notwithstanding any fluctuation in exchange rates occurring thereafter.

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                                    SECTION 3
                     GENERAL PROVISIONS APPLICABLE TO LOANS
                              AND LETTERS OF CREDIT

         3.1 INTEREST.

                  (a) Interest Rate. All Base Rate Loans shall accrue interest
         at the Adjusted Base Rate and all Eurocurrency Loans shall accrue
         interest at the Adjusted Eurocurrency Rate. All Swing Line Loans shall
         accrue interest at the Adjusted Base Rate.

                  (b) Default Rate of Interest. Upon the occurrence, and during
         the continuance, of (i) an Event of Default under Section 9.1(a) or
         (ii) any other Event of Default with respect to which the Required
         Lenders have taken affirmative action, the principal of and, to the
         extent permitted by law, interest on the Loans and any other amounts
         owing (but not timely paid) hereunder or under the other Credit
         Documents (including without limitation fees and expenses) shall bear
         interest, payable on demand, at a per annum rate equal to 2% plus the
         rate which would otherwise be applicable (or if no rate is applicable,
         then the rate for Revolving Loans that are Base Rate Loans plus two
         percent (2%) per annum).

                  (c) Interest Payments. Interest on Loans shall be due and
         payable in arrears on each Interest Payment Date. If an Interest
         Payment Date falls on a date which is not a Business Day, such Interest
         Payment Date shall be deemed to be the next succeeding Business Day,
         except that in the case of Eurocurrency Loans where the next succeeding
         Business Day falls in the next succeeding calendar month, then on the
         next preceding day.

                  (d) Additional Interest. Any Loan made in British Pounds
         Sterling shall have added to the interest otherwise applicable to such
         Loan the MLA Cost associated with such Loan.

         3.2 PLACE AND MANNER OF PAYMENTS.

         All payments of principal, interest, fees, expenses and other amounts
to be made by a Credit Party under this Credit Agreement shall be made without
setoff, deduction, counterclaim or withholding of any kind and received not
later than 2:00 p.m. (New York time for payments made in Dollars or local time
in the applicable country for payments made in Foreign Currency) on the date
when due, in Dollars or in the applicable Foreign Currency and in immediately
available funds, by (a) with respect to payments made in Dollars, the
Administrative Agent at its offices in Charlotte, North Carolina and (b) with
respect to payments made in Foreign Currency, the applicable Foreign Currency
Lender at such location as it shall direct. Payments received after such time
shall be deemed to have been received on the next Business Day. Payments of
principal or interest with respect to Foreign Currency Loans that are to be
shared by the Participants in accordance with the terms of Section 2.6 and
Section 3.7(c) shall be converted by the applicable Foreign Currency Lender (in
accordance with its normal currency conversion procedures) to Dollars on the
date such payments are received. The Borrower shall, at the time it

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<PAGE>   61

makes any payment under this Credit Agreement, specify to the Administrative
Agent, the Loans, Letters of Credit, fees or other amounts payable by the
Borrower hereunder to which such payment is to be applied (and in the event that
it fails to specify, or if such application would be inconsistent with the terms
hereof, the Administrative Agent shall, subject to Section 3.7, distribute such
payment to the Lenders in such manner as the Administrative Agent may deem
appropriate). The Administrative Agent will distribute such payments to the
applicable Lenders on the date of receipt thereof if any such payment is
received prior to 2:00 p.m.; otherwise the Administrative Agent will distribute
such payment to the applicable Lenders on the next succeeding Business Day.
Whenever any payment hereunder shall be stated to be due on a day which is not a
Business Day, the due date thereof shall be extended to the next succeeding
Business Day (subject to accrual of interest and fees for the period of such
extension), except that in the case of Eurocurrency Loans, if the extension
would cause the payment to be made in the next following calendar month, then
such payment shall instead be made on the next preceding Business Day.

         3.3 PREPAYMENTS.

                  (a) Voluntary Prepayments. Loans may be prepaid in whole or in
         part from time to time without premium or penalty; provided, however,
         that (i) Eurocurrency Loans may only be prepaid on three Business Days'
         prior written notice to the Administrative Agent, (ii) each such
         partial prepayment of Loans shall be in the minimum principal amount of
         $2,500,000 (or with respect to a Foreign Currency Loan, the U.S. Dollar
         Equivalent of such Foreign Currency) and integral multiples of $500,000
         (or with respect to a Foreign Currency Loan, the U.S. Dollar Equivalent
         of such Foreign Currency) in excess thereof, and (iii) voluntary
         prepayments with respect to the Term Loans (A) shall be applied pro
         rata to the outstanding Tranche A Term Loans and the Tranche B Term
         Loans and (B) within each tranche, shall be applied pro rata with
         respect to each remaining Principal Amortization Payment; provided,
         however, one or more holders of the Tranche B Term Loans may decline to
         accept a voluntary prepayment under this Section 3.3(a) to the extent
         there are sufficient Tranche A Term Loans outstanding and holders of
         Tranche B Term Loans accepting such voluntary prepayment to be paid
         with such prepayment, in which case such declined prepayments shall be
         allocated (x) pro rata among the Tranche A Term Loans and the Tranche B
         Term Loans held by Lenders accepting such prepayments and (y) within
         each tranche, shall be applied pro rata with respect to each remaining
         Principal Amortization Payment. All prepayments under this Section
         shall be subject to Section 3.14.

                  (b) Mandatory Prepayments.

                           (i) Revolving Committed Amount. Subject to Section
                  2.9, if at any time (A) the sum of the aggregate amount of
                  Revolving Loans outstanding plus the aggregate amount of Swing
                  Line Loans outstanding plus the aggregate amount of LOC
                  Obligations outstanding plus the aggregate amount of Foreign
                  Currency Loans outstanding exceeds the Revolving Committed
                  Amount, (B) the aggregate amount of Swing Line Loans
                  outstanding exceeds the Swing Line Committed Amount, (C) the
                  aggregate amount of LOC Obligations outstanding exceeds the
                  LOC Committed Amount or (D) the aggregate amount of Foreign
                  Currency Loans

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<PAGE>   62

                  exceeds the Foreign Currency Committed Amount, the Borrower
                  shall immediately make a principal payment to the
                  Administrative Agent in a manner and in an amount necessary to
                  be in compliance with Sections 2.1, 2.2, 2.5 and 2.6, as
                  applicable, and as directed by the Administrative Agent (any
                  such prepayment with respect to clause (A) above to be applied
                  as set forth in Section 3.3(c) below).

                           (ii) Asset Dispositions. Immediately upon receipt by
                  a Credit Party or any of its Subsidiaries of proceeds from any
                  Asset Disposition or from an asset sale referred to in clause
                  (i) of Section 8.5 the proceeds of which are to be applied as
                  a prepayment hereunder, the Borrower shall forward 100% of the
                  Net Cash Proceeds of such Asset Disposition to the Lenders as
                  a prepayment of the Loans (to be applied as set forth in
                  Section 3.3(c) below); provided that Net Cash Proceeds used to
                  pay for cash losses incurred in connection with a plant
                  closing shall be excluded from this requirement up to a
                  maximum amount of $10,000,000, in the aggregate, per fiscal
                  year.

                           (iii) Excess Cash Flow. Within 90 days after the end
                  of each fiscal year of the Borrower, beginning with the fiscal
                  year ending December 31, 2001, (A) if the Senior Leverage
                  Ratio as of the end of such fiscal year (as reported in the
                  Officer's Compliance Certificate with respect to such fiscal
                  year) is equal to or greater than 3.0 to 1.0, the Borrower
                  shall prepay Loans in an amount equal to 75% of the Excess
                  Cash Flow earned during such fiscal year, and (B) if the
                  Senior Leverage Ratio as of the end of such fiscal year (as
                  reported in the Officer's Compliance Certificate with respect
                  to such fiscal year) is less than 3.0 to 1.0, the Borrower
                  shall prepay Loans in an amount equal to 50% of Excess Cash
                  Flow earned during such fiscal year (all such prepayments to
                  be applied as set forth in Section 3.3(c) below).

                           (iv) Issuances of Debt. Immediately upon receipt by a
                  Credit Party or any of its Subsidiaries of proceeds from any
                  Debt Issuance, the Borrower shall prepay Loans in an amount
                  equal to 100% of the Net Cash Proceeds of such Debt Issuance
                  (all such prepayments to be applied as set forth in Section
                  3.3(c) below).

                           (v) Issuances of Equity. Immediately upon receipt by
                  a Credit Party or any of its Subsidiaries of proceeds from any
                  Equity Issuance other than an Excluded Equity Issuance, the
                  Borrower shall prepay Loans in an amount equal to 50% of the
                  Net Cash Proceeds of such Equity Issuance (all such
                  prepayments to be applied as set forth in Section 3.3(c)
                  below).

                  (c) Application of Prepayments. All amounts required to be
         paid pursuant to Section 3.3(b)(i)(A) shall be applied first to
         Revolving Loans, second to Swing Line Loans, third to Foreign Currency
         Loans (or the cash collateralization thereof) and fourth to a cash
         collateral account in respect of LOC Obligations. All amounts required
         to be paid pursuant to Section 3.3(b)(ii) above shall (x) with respect
         to the disposition of assets in the United States, be applied pro rata
         among (1) the Tranche A Term Loans, (2) the

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<PAGE>   63

         Tranche B Term Loans (and, within each tranche of Term Loans, pro rata
         among the remaining Principal Amortization Payments), and (3)
         collectively, the aggregate amount of Revolving Loans, Swing Line Loans
         and Foreign Currency Loans; provided that the Borrower may choose the
         application of the prepayment among the Revolving Loans, the Swing Line
         Loans and the Foreign Currency Loans and any such prepayment of
         Revolving Loans, Swing Line Loans and Foreign Currency Loans shall be
         accompanied by a corresponding permanent reduction in the Revolving
         Committed Amount and (y) with respect to the disposition of assets
         outside of the United States, be applied first pro rata to Foreign
         Currency Loans with a corresponding permanent reduction in the Foreign
         Currency Committed Amount and the Revolving Committed Amount and
         second, if all outstanding Foreign Currency Loans have been repaid, pro
         rata among (1) the Tranche A Term Loans, (2) the Tranche B Term Loans
         (and, within each tranche of Term Loans, pro rata among the remaining
         Principal Amortization Payments) and (3) collectively, the aggregate
         amount of Revolving Loans and Swing Line Loans; provided that the
         Borrower may choose the application of prepayments between the
         Revolving Loans and the Swing Line Loans and any such prepayment of
         Revolving Loans and Swing Line Loans shall be accompanied by a
         corresponding permanent reduction in the Revolving Committed Amount.
         All amounts required to be paid pursuant to Section 3.3(b)(iii), (iv)
         and (v) above shall be applied pro rata to the Tranche A Term Loans and
         the Tranche B Term Loans, and within each tranche of Term Loans, pro
         rata among the remaining Principal Amortization Payments until the
         Tranche A Term Loans and Tranche B Term Loans have been paid in full.
         Within the parameters of the applications set forth above, prepayments
         shall be applied first to Base Rate Loans and then to Eurocurrency
         Loans in direct order of Interest Period maturities. All prepayments
         hereunder shall be subject to Section 3.14 and shall be accompanied by
         interest on the principal amount prepaid through the date or
         prepayment. One or more holders of the Tranche B Term Loans may decline
         to accept a mandatory prepayment under Section 3.3(b) to the extent
         there are sufficient Tranche A Term Loans outstanding and holders of
         Tranche B Term Loans accepting such mandatory prepayment to be paid
         with such prepayment, in which case such declined prepayments shall be
         allocated (x) pro rata among the Tranche A Term Loans and the Tranche B
         Term Loans held by Lenders accepting such prepayments and (y) within
         each tranche, shall be applied pro rata with respect to each remaining
         Principal Amortization Payment.

         3.4 FEES.

                  (a) Commitment Fees. In consideration of the Revolving
         Committed Amount being made available by the Lenders hereunder, the
         Borrower agrees to pay to the Administrative Agent, for the pro rata
         benefit of each applicable Lender (based on each Lender's Revolving
         Loan Commitment Percentage of the Revolving Committed Amount), a fee
         equal to the product of (a) 0.50% per annum multiplied by (b) the
         Unused Commitment (the "Commitment Fees"). The accrued Commitment Fees
         shall commence to accrue on the Effective Date and shall be due and
         payable in arrears five (5) Business Days after the end of each
         calendar quarter (as well as on the Revolving Loan Maturity Date) for
         the immediately preceding calendar quarter (or portion thereof),
         beginning with the first of such dates to occur after the Closing Date.

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<PAGE>   64

                  (b) Letter of Credit Fees.

                           (i) Letter of Credit Fee. In consideration of the
                  issuance of Letters of Credit hereunder, the Borrower agrees
                  to pay to the Issuing Lender, for the pro rata benefit of the
                  applicable Lenders (based on each Lender's Revolving Loan
                  Commitment Percentage of the Revolving Committed Amount) a fee
                  (the "Letter of Credit Fee") equal to the Applicable
                  Percentage for the Letter of Credit Fee on the average daily
                  maximum amount available to be drawn under each such Letter of
                  Credit from the date of issuance to the date of expiration.
                  The Letter of Credit Fee will be payable quarterly in arrears
                  5 Business Days after the end of each calendar quarter and on
                  the Revolving Loan Maturity Date.

                           (ii) Issuing Lender Fees. In addition to the Letter
                  of Credit Fees payable pursuant to subsection (i) above, the
                  Borrower shall pay to the Issuing Lender for its own account,
                  without sharing by the other Lenders, (A) a fee equal to
                  one-eighth of one percent (1/8%) per annum on the total sum of
                  all Letters of Credit issued by the Issuing Lender, such fee
                  to be paid quarterly in arrears 5 Business Days after the end
                  of each calendar quarter (as well as on the Revolving Loan
                  Maturity Date) and (B) the customary charges from time to time
                  to the Issuing Lender for its services in connection with the
                  issuance, amendment, payment, transfer, administration,
                  cancellation and conversion of, and drawings under, such
                  Letters of Credit (collectively, the "Issuing Lender Fees").

                  (c) Foreign Currency Lender Fees. The Borrower shall pay to
         the applicable Foreign Currency Lender, at the time a Foreign Currency
         Loan is made, a fee equal to .25% per annum on the total amount of the
         Foreign Currency Loan made (the "Foreign Currency Fronting Fees").

                  (d) Administrative Fees. The Borrower agrees to pay to the
         Administrative Agent, for its own account, an annual fee as agreed to
         between the Borrower and the Administrative Agent in the Fee Letter.

         3.5 PAYMENT IN FULL AT MATURITY.

                  (a) On the Revolving Loan Maturity Date, the entire
         outstanding principal balance of all Revolving Loans, all Swing Line
         Loans, all Foreign Currency Loans and all LOC Obligations, together
         with accrued but unpaid interest and all other sums owing with respect
         thereto, shall be due and payable in full, unless accelerated sooner
         pursuant to Section 9.

                  (b) On the Tranche A Term Loan Maturity Date, the entire
         outstanding principal balance of all Tranche A Term Loans, together
         with accrued but unpaid interest and all other sums owing with respect
         thereto, shall be due and payable in full, unless accelerated sooner
         pursuant to Section 9.

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<PAGE>   65

                  (c) On the Tranche B Term Loan Maturity Date, the entire
         outstanding principal balance of all Tranche B Term Loans, together
         with accrued but unpaid interest and all other sums owing with respect
         thereto, shall be due and payable in full, unless accelerated sooner
         pursuant to Section 9.

         3.6 COMPUTATIONS OF INTEREST AND FEES.

                  (a) Except for Base Rate Loans determined by reference to the
         Prime Rate or Loans made in British Pounds Sterling, in which case
         interest shall be computed on the basis of a 365 or 366 day year as the
         case may be, all computations of interest and fees hereunder shall be
         made on the basis of the actual number of days elapsed over a year of
         360 days. Interest shall accrue from and include the date of borrowing
         (or continuation or conversion) but exclude the date of payment.

                  (b) It is the intent of the Lenders and the Credit Parties to
         conform to and contract in strict compliance with applicable usury law
         from time to time in effect. All agreements between the Lenders and the
         Borrower are hereby limited by the provisions of this paragraph which
         shall override and control all such agreements, whether now existing or
         hereafter arising and whether written or oral. In no way, nor in any
         event or contingency (including but not limited to prepayment or
         acceleration of the maturity of any obligation), shall the interest
         taken, reserved, contracted for, charged, or received under this Credit
         Agreement, under the Notes or otherwise, exceed the maximum nonusurious
         amount permissible under applicable law. If, from any possible
         construction of any of the Credit Documents or any other document,
         interest would otherwise be payable in excess of the maximum
         nonusurious amount, any such construction shall be subject to the
         provisions of this paragraph and such documents shall be automatically
         reduced to the maximum nonusurious amount permitted under applicable
         law, without the necessity of execution of any amendment or new
         document. If any Lender shall ever receive anything of value which is
         characterized as interest on the Loans under applicable law and which
         would, apart from this provision, be in excess of the maximum lawful
         amount, an amount equal to the amount which would have been excessive
         interest shall, without penalty, be applied to the reduction of the
         principal amount owing on the Loans and not to the payment of interest,
         or refunded to the Borrower or the other payor thereof if and to the
         extent such amount which would have been excessive exceeds such unpaid
         principal amount of the Loans. The right to demand payment of the Loans
         or any other indebtedness evidenced by any of the Credit Documents does
         not include the right to receive any interest which has not otherwise
         accrued on the date of such demand, and the Lenders do not intend to
         charge or receive any unearned interest in the event of such demand.
         All interest paid or agreed to be paid to the Lenders with respect to
         the Loans shall, to the extent permitted by applicable law, be
         amortized, prorated, allocated, and spread throughout the full stated
         term (including any renewal or extension) of the Loans so that the
         amount of interest on account of such indebtedness does not exceed the
         maximum nonusurious amount permitted by applicable law.

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<PAGE>   66

         3.7 PRO RATA TREATMENT.

         Except to the extent otherwise provided herein:

                  (a) Revolving Loans and Term Loans. Each Revolving Loan
         borrowing (including, without limitation, each Mandatory Borrowing),
         each payment or prepayment of principal of any Revolving Loan or Term
         Loan, each payment of fees (other than the Issuing Lender Fees retained
         by the Issuing Lender for its own account and the administrative fees
         retained by the Administrative Agent for its own account), each
         reduction of the Revolving Committed Amount, the Tranche A Term Loan
         Committed Amount or the Tranche B Term Loan Committed Amount, and each
         conversion or continuation of any Revolving Loan, Tranche A Term Loan
         or Tranche B Term Loan, shall be allocated pro rata among the relevant
         Lenders in accordance with the respective Revolving Loan Commitment
         Percentages, Tranche A Term Loan Commitment Percentages and Tranche B
         Term Loan Commitment Percentages, as applicable, of such Lenders (or,
         if the Commitments of such Lenders have expired or been terminated, in
         accordance with the respective principal amounts of the outstanding
         Revolving Loans, Tranche A Term Loans, Tranche B Term Loans and
         Participation Interests of such Lenders); provided that, if any Lender
         shall have failed to pay its applicable pro rata share of any Revolving
         Loan, Tranche A Term Loan or Tranche B Term Loan, then any amount to
         which such Lender would otherwise be entitled pursuant to this
         subsection (a) shall instead be payable to the Administrative Agent;
         provided further, that in the event any amount paid to any Lender
         pursuant to this subsection (a) is rescinded or must otherwise be
         returned by the Administrative Agent, each Lender shall, upon the
         request of the Administrative Agent, repay to the Administrative Agent
         the amount so paid to such Lender, with interest for the period
         commencing on the date such payment is returned by the Administrative
         Agent until the date the Administrative Agent receives such repayment
         at a rate per annum equal to, during the period to but excluding the
         date two Business Days after such request, the Federal Funds Rate, and
         thereafter, the Base Rate plus two percent (2%) per annum.

                  (b) Letters of Credit. Each payment of unreimbursed drawings
         in respect of LOC Obligations shall be allocated to each Participant
         pro rata in accordance with its Revolving Loan Commitment Percentage;
         provided that, if any Participant shall have failed to pay its
         applicable pro rata share of any drawing under any Letter of Credit,
         then any amount to which such Participant would otherwise be entitled
         pursuant to this subsection (b) shall instead be payable to the Issuing
         Lender; provided further, that in the event any amount paid to any
         Participant pursuant to this subsection (b) is rescinded or must
         otherwise be returned by the Issuing Lender, each Participant shall,
         upon the request of the Issuing Lender, repay to the Administrative
         Agent for the account of the Issuing Lender the amount so paid to such
         Participant, with interest for the period commencing on the date such
         payment is returned by the Issuing Lender until the date the Issuing
         Lender receives such repayment at a rate per annum equal to, during the
         period to but excluding the date two Business Days after such request,
         the Federal Funds Rate, and thereafter, the Base Rate plus two percent
         (2%) per annum.

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<PAGE>   67

                  (c) Foreign Currency Loans. Each Foreign Currency Lender shall
         receive, for its own account, all payments or prepayments of principal
         and all Foreign Currency Fronting Fees with respect to its Foreign
         Currency Loans; provided, however, upon the funding of the
         Participants' participation interests with respect to a Foreign
         Currency Loan pursuant to Section 2.6(d), such Participants shall be
         deemed Foreign Currency Lenders with respect to such Foreign Currency
         Loan and shall be entitled to receive their pro rata share of any
         payment or prepayment of principal with respect to such Foreign
         Currency Loan. Until the Participants are required to fund their
         participation interest in a Foreign Currency Loan, subject to Section
         3.1(b), (i) the Foreign Currency Lender that made such Foreign Currency
         Loan shall receive interest on such Foreign Currency Loan equal to (A)
         (x) for any portion of such Foreign Currency Loan consisting of a Base
         Rate Loan, the Base Rate and (y) for any portion of such Foreign
         Currency Loan consisting of a Eurocurrency Loan, the Eurocurrency Rate,
         plus (B) its pro rata share (based on its Revolving Loan Commitment
         Percentage) of the Applicable Percentage for such Foreign Currency
         Loan, and (ii) each Participant shall receive interest on such Foreign
         Currency Loan in an amount equal to its pro rata share (based on its
         Revolving Loan Commitment Percentage) of the Applicable Percentage for
         such Foreign Currency Loan. After the Participants fund their
         participation interests in a Foreign Currency Loan, subject to Section
         3.1(b), each Foreign Currency Lender with respect to such Foreign
         Currency Loan shall receive interest on such Foreign Currency Loan
         equal to (1) for any portion of such Foreign Currency Loan consisting
         of a Base Rate Loan, the Adjusted Base Rate and (2) for any portion of
         such Foreign Currency Loan consisting of a Eurocurrency Loan, the
         Adjusted Eurocurrency Rate.

         3.8 SHARING OF PAYMENTS.

         The Lenders agree among themselves that, except to the extent otherwise
provided herein, in the event that any Lender shall obtain payment in respect of
any Loan, unreimbursed drawing with respect to any LOC Obligations or any other
obligation owing to such Lender under this Credit Agreement through the exercise
of a right of setoff, banker's lien or counterclaim, or pursuant to a secured
claim under Section 506 of the Bankruptcy Code or other security or interest
arising from, or in lieu of, such secured claim, received by such Lender under
any applicable bankruptcy, insolvency or other similar law or otherwise, or by
any other means, in excess of its pro rata share of such payment as provided for
in this Credit Agreement, such Lender shall promptly pay in cash or purchase
from the other Lenders a participation in such Loans, LOC Obligations, and other
obligations in such amounts, and make such other adjustments from time to time,
as shall be equitable to the end that all Lenders share such payment in
accordance with their respective ratable shares as provided for in this Credit
Agreement. The Lenders further agree among themselves that if payment to a
Lender obtained by such Lender through the exercise of a right of setoff,
banker's lien, counterclaim or other event as aforesaid shall be rescinded or
must otherwise be restored, each Lender which shall have shared the benefit of
such payment shall, by payment in cash or a repurchase of a participation
theretofore sold, return its share of that benefit (together with its share of
any accrued interest payable with respect thereto) to each Lender whose payment
shall have been rescinded or otherwise restored. The Credit Parties agree that
any Lender so purchasing such a participation may, to the fullest extent
permitted by law, exercise all rights of payment, including

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setoff, banker's lien or counterclaim, with respect to such participation as
fully as if such Lender were a holder of such Loan, LOC Obligation or other
obligation in the amount of such participation. Except as otherwise expressly
provided in this Credit Agreement, if any Lender or the Administrative Agent
shall fail to remit to the Administrative Agent or any other Lender an amount
payable by such Lender or the Administrative Agent to the Administrative Agent
or such other Lender pursuant to this Credit Agreement on the date when such
amount is due, such payments shall be made together with interest thereon if
paid within two Business Days of the date when such amount is due at a per annum
rate equal to the Federal Funds Rate and thereafter at a per annum rate equal to
the Base Rate until the date such amount is paid to the Administrative Agent or
such other Lender. If under any applicable bankruptcy, insolvency or other
similar law, any Lender receives a secured claim in lieu of a setoff to which
this Section 3.8 applies, such Lender shall, to the extent practicable, exercise
its rights in respect of such secured claim in a manner consistent with the
rights of the Lenders under this Section 3.8 to share in the benefits of any
recovery on such secured claim.

         3.9 CAPITAL ADEQUACY.

         If any Lender has determined that the adoption or the becoming
effective of, or any change in, or any change by any Governmental Authority,
central bank or comparable agency charged with the interpretation or
administration thereof in the interpretation or administration of, any
applicable law, rule or regulation regarding capital adequacy, or compliance by
such Lender, or its parent corporation, with any request or directive regarding
capital adequacy (whether or not having the force of law) of any such authority,
central bank or comparable agency, in each case after the date hereof, has or
would have the effect of reducing the rate of return on such Lender's (or parent
corporation's) capital or assets as a consequence of its commitments or
obligations hereunder to a level below that which such Lender, or its parent
corporation, could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender's (or parent corporation's)
policies with respect to capital adequacy), then, upon notice from such Lender
to the Borrower, the Borrower shall be obligated to pay to such Lender such
additional amount or amounts as will compensate such Lender on an after-tax
basis (after taking into account applicable deductions and credits in respect of
the amount indemnified) for such reduction. Each determination by any such
Lender of amounts owing under this Section shall, absent demonstrable error, be
conclusive and binding on the parties hereto. This covenant shall survive the
termination of this Credit Agreement and the payment of the Loans and all other
amounts payable hereunder.

         3.10 INABILITY TO DETERMINE INTEREST RATE.

         If prior to the first day of any Interest Period, the Administrative
Agent shall have determined in good faith (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurocurrency Rate for such Interest Period, the Administrative
Agent shall give telecopy or telephonic notice thereof to the Borrower and the
Lenders as soon as practicable thereafter, and will also give prompt written
notice to the Borrower when such conditions no longer exist. If such notice is
given (a) any Eurocurrency Loans requested to be made on the first day of such
Interest Period shall be made as Base Rate

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Loans, (b) any Loans that were to have been converted on the first day of such
Interest Period to or continued as Eurocurrency Loans shall be converted to or
continued as Base Rate Loans and (c) any outstanding Eurocurrency Loans shall be
converted, on the first day of such Interest Period, to Base Rate Loans. Until
such notice has been withdrawn by the Administrative Agent, no further
Eurocurrency Loans shall be made or continued as such, nor shall the Borrower
have the right to convert Base Rate Loans to Eurocurrency Loans.

         3.11 ILLEGALITY.

         Notwithstanding any other provision herein, if the adoption of or any
change in any Requirement of Law or in the interpretation or application thereof
occurring after the Closing Date shall make it unlawful for any Lender to make
or maintain Eurocurrency Loans as contemplated by this Credit Agreement, (a)
such Lender shall promptly give written notice of such circumstances to the
Borrower and the Administrative Agent (which notice shall be withdrawn whenever
such circumstances no longer exist), (b) the commitment of such Lender hereunder
to make Eurocurrency Loans, continue Eurocurrency Loans as such and convert a
Base Rate Loan to Eurocurrency Loans shall forthwith be canceled and, until such
time as it shall no longer be unlawful for such Lender to make or maintain
Eurocurrency Loans, such Lender shall then have a commitment only to make a Base
Rate Loan when a Eurocurrency Loan is requested and (c) such Lender's Loans then
outstanding as Eurocurrency Loans, if any, shall be converted automatically to
Base Rate Loans on the respective last days or the then current Interest Periods
with respect to such Loans or within such earlier period as required by law. If
any such conversion of a Eurocurrency Loan occurs on a day which is not the last
day of the then current Interest Period with respect thereto, the Borrower shall
pay to such Lender such amounts, if any, as may be required pursuant to Section
3.14.

         3.12 REQUIREMENTS OF LAW.

         If the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof applicable to any Lender, or compliance by
any Lender with any request or directive (whether or not having the force of
law) from any central bank or other Governmental Authority, in each case made
subsequent to the Closing Date (or, if later, the date on which such Lender
becomes a Lender):

                  (a) shall subject such Lender to any tax of any kind
         whatsoever with respect to any Letter of Credit, any Eurocurrency Loans
         made by it or its obligation to make Eurocurrency Loans, or change the
         basis of taxation of payments to such Lender in respect thereof (except
         for Non-Excluded Taxes covered by Section 3.13 (including Non-Excluded
         Taxes imposed solely by reason of any failure of such Lender to comply
         with its obligations under Section 3.13(b)) and changes in taxes
         measured by or imposed upon the overall net income, or franchise tax
         (imposed in lieu of such net income tax), of such Lender or its
         applicable lending office, branch, or any affiliate thereof);

                  (b) shall impose, modify or hold applicable any reserve,
         special deposit, compulsory loan or similar requirement against assets
         held by, deposits or other liabilities in or for the account of,
         advances, loans or other extensions of credit by, or any other

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         acquisition of funds by, any office of such Lender which is not
         otherwise included in the determination of the Eurocurrency Rate
         hereunder; or

                  (c) shall impose on such Lender any other condition (excluding
         any tax of any kind whatsoever);

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining Eurocurrency Loans or issuing or participating in
Letters of Credit or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, upon notice to the Borrower from such Lender,
through the Administrative Agent, in accordance herewith, the Borrower shall be
obligated to promptly pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender on an after-tax basis (after taking into
account applicable deductions and credits in respect of the amount indemnified)
for such increased cost or reduced amount receivable, provided that, in any such
case, the Borrower may elect to convert the Eurocurrency Loans made by such
Lender hereunder to Base Rate Loans by giving the Administrative Agent at least
one Business Day's notice of such election, in which case the Borrower shall
promptly pay to such Lender, upon demand, without duplication, such amounts, if
any, as may be required pursuant to Section 3.14. If any Lender becomes entitled
to claim any additional amounts pursuant to this Section 3.12, it shall provide
prompt notice thereof to the Borrower, through the Administrative Agent,
certifying (x) that one of the events described in this Section 3.12 has
occurred and describing in reasonable detail the nature of such event, (y) as to
the increased cost or reduced amount resulting from such event and (z) as to the
additional amount demanded by such Lender and a reasonably detailed explanation
of the calculation thereof. Such a certificate as to any additional amounts
payable pursuant to this Section 3.12 submitted by such Lender, through the
Administrative Agent, to the Borrower shall be conclusive and binding on the
parties hereto in the absence of demonstrable error. This covenant shall survive
the termination of this Credit Agreement and the payment of the Loans and all
other amounts payable hereunder.

         3.13 TAXES.

                  (a) Except as provided below in this Section 3.13, all
         payments made by a Credit Party under this Credit Agreement and any
         Notes shall be made free and clear of, and without deduction or
         withholding for or on account of, any present or future income, stamp
         or other taxes, levies, imposts, duties, charges, fees, deductions or
         withholdings, now or hereafter imposed, levied, collected, withheld or
         assessed by any court, or Governmental Authority, agency or other
         official, excluding taxes measured by or imposed upon the overall net
         income of any Lender or its applicable lending office, or any branch or
         affiliate thereof, and all franchise taxes, branch taxes, taxes on
         doing business or taxes on the overall capital or net worth of any
         Lender or its applicable lending office, or any branch or affiliate
         thereof, in each case imposed in lieu of net income taxes, imposed: (i)
         by the jurisdiction under the laws of which such Lender, applicable
         lending office, branch or affiliate is organized or is located, or in
         which its principal executive office is located, or any nation within
         which such jurisdiction is located or any political subdivision
         thereof; or (ii) by reason of any connection between the jurisdiction
         imposing such tax and such Lender, applicable lending office, branch or

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         affiliate other than a connection arising solely from such Lender
         having executed, delivered or performed its obligations, or received
         payment under or enforced, this Credit Agreement or any Notes. If any
         such non-excluded taxes, levies, imposts, duties, charges, fees,
         deductions or withholdings ("Non-Excluded Taxes") are required to be
         withheld from any amounts payable to the Administrative Agent or any
         Lender hereunder or under any Notes, (A) the amounts so payable to the
         Administrative Agent or such Lender shall be increased to the extent
         necessary to yield to the Administrative Agent or such Lender (after
         payment of all Non-Excluded Taxes) interest or any such other amounts
         payable hereunder at the rates or in the amounts specified in this
         Credit Agreement and any Notes, provided, however, that the Credit
         Parties shall be entitled to deduct and withhold any Non-Excluded Taxes
         and shall not be required to increase any such amounts payable to any
         Lender that is not organized under the laws of the United States of
         America or a state thereof if such Lender fails to comply with the
         requirements of paragraph (b) of this Section 3.13 whenever any
         Non-Excluded Taxes are payable by a Credit Party, and (B) as promptly
         as possible thereafter such Credit Party shall send to the
         Administrative Agent for its own account or for the account of such
         Lender, as the case may be, a certified copy of an original official
         receipt received by such Credit Party showing payment thereof. If a
         Credit Party fails to pay any Non-Excluded Taxes when due to the
         appropriate taxing authority or fails to remit to the Administrative
         Agent the required receipts or other required documentary evidence,
         such Credit Party shall indemnify the Administrative Agent and any
         Lender for any incremental taxes, interest or penalties that may become
         payable by the Administrative Agent or any Lender as a result of any
         such failure. If a Lender shall change its office that makes or
         maintains a Loan hereunder, the Credit Parties shall not be required to
         pay any increased amounts to the Lender in respect of any Non-Excluded
         Taxes pursuant to this Section 3.13 in excess of the amount of the
         Non-Excluded Taxes that existed on the date the Lender changed such
         office, unless the Lender changed the office at the request of a Credit
         Party. The agreements in this subsection shall survive the termination
         of this Credit Agreement and the payment of the Loans and all other
         amounts payable hereunder.

                  (b) Each Lender that is not incorporated under the laws of the
         United States of America or a state thereof shall:

                                    (i) (A) on or before the date of any payment
                           by a Credit Party under this Credit Agreement or
                           Notes to such Lender, deliver to the Borrower and the
                           Administrative Agent (x) two duly completed copies of
                           United States Internal Revenue Service Form 1001 or
                           4224, or successor applicable form, as the case may
                           be, certifying that it is entitled to receive
                           payments under this Credit Agreement and any Notes
                           without deduction or withholding of any United States
                           federal income taxes and (y) an Internal Revenue
                           Service Form W-8 or W-9, or successor applicable
                           form, as the case may be, certifying that it is
                           entitled to an exemption from United States backup
                           withholding tax;

                                             (B) deliver to the Borrower and the
                           Administrative Agent two further copies of any such
                           form or certification

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<PAGE>   72
                           on or before the date that any such form or
                           certification expires or becomes obsolete and after
                           the occurrence of any event requiring a change in the
                           most recent form previously delivered by it to the
                           Borrower; and

                                              (C) obtain such extensions of time
                           for filing and complete such forms or certifications

                           as may reasonably be requested by the Borrower or the
                           Administrative Agent; or

                                    (ii) in the case of any such Lender that is
                  not a "bank" within the meaning of Section 881(c)(3)(A) of the
                  Code, (A) represent to the Borrower (for the benefit of the
                  Borrower and the Administrative Agent) that it is not a bank
                  within the meaning of Section 881(c)(3)(A) of the Code, (B)
                  agree to furnish to the Borrower, on or before the date of any
                  payment by the Borrower, with a copy to the Administrative
                  Agent, two accurate and complete original signed copies of
                  Internal Revenue Service Form W-8, or successor applicable
                  form certifying to such Lender's legal entitlement at the date
                  of such certificate to an exemption from U.S. withholding tax
                  under the provisions of Section 881(c) of the Code with
                  respect to payments to be made under this Credit Agreement and
                  any Notes (and to deliver to the Borrower and the
                  Administrative Agent two further copies of such form on or
                  before the date it expires or becomes obsolete and after the
                  occurrence of any event requiring a change in the most
                  recently provided form and, if necessary, obtain any
                  extensions of time reasonably requested by the Borrower or the
                  Administrative Agent for filing and completing such forms),
                  and (C) agree, to the extent legally entitled to do so, upon
                  reasonable request by the Borrower, to provide to the Borrower
                  (for the benefit of the Borrower and the Administrative Agent)
                  such other forms as may be reasonably required in order to
                  establish the legal entitlement of such Lender to an exemption
                  from withholding with respect to payments under this Credit
                  Agreement and any Notes.

         Notwithstanding the above, if any change in treaty, law or regulation
         has occurred after the date such Person becomes a Lender hereunder
         which renders all such forms inapplicable or which would prevent such
         Lender from duly completing and delivering any such form with respect
         to it and such Lender so advises the Borrower and the Administrative
         Agent then such Lender shall be exempt from such requirements. Each
         Person that shall become a Lender or a participant of a Lender pursuant
         to Section 11.3 shall, upon the effectiveness of the related transfer,
         be required to provide all of the forms, certifications and statements
         required pursuant to this subsection (b); provided that in the case of
         a participant of a Lender, the obligations of such participant of a
         Lender pursuant to this subsection (b) shall be determined as if the
         participant of a Lender were a Lender except that such participant of a
         Lender shall furnish all such required forms, certifications and
         statements to the Lender from which the related participation shall
         have been purchased.

                  (c) If any such taxes shall be or become applicable after the
         date of this Credit Agreement to such payments by the Credit Parties to
         a Lender, such Lender shall use reasonable efforts to make, fund or
         maintain the Loan or Loans, as the case may be,

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<PAGE>   73

         through another lending office located in another jurisdiction so as to
         reduce, to the fullest extent possible, the Credit Parties' liability
         hereunder, if the making, funding or maintenance of such Loan or Loans
         through such other office does not, in the reasonable judgment of the
         Lender, materially affect the Lender of such Loan. If a Credit Party is
         required to make any additional payment to a Lender pursuant to this
         Section 3.13, and any such Lender receives, or is entitled to receive,
         a credit against, remission for, or repayment of, any tax paid or
         payable by it in respect of, or calculated with reference to, the taxes
         giving rise to such payment, such Lender shall, within a reasonable
         time after it receives such credit, relief, remission or repayment,
         reimburse such Credit Party the amount of any such credit, relief,
         remission or repayment.

         3.14 INDEMNITY.

         The Credit Parties promise to indemnify each Lender and to hold each
Lender harmless from any loss or expense which such Lender may sustain or incur
(other than through such Lender's gross negligence or willful misconduct) as a
consequence of (a) default by the Borrower in making a borrowing of, conversion
into or continuation of Eurocurrency Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Credit Agreement,
(b) default by the Borrower in making any prepayment of a Eurocurrency Loan
after the Borrower has given a notice thereof in accordance with the provisions
of this Credit Agreement, (c) the making of a prepayment of Eurocurrency Loans
on a day which is not the last day of an Interest Period with respect thereto
and (d) any assignment of a portion of such Lender's Commitments and Loans
during the 180 day period following the Effective Date on account of the
syndication of the Credit Facilities. Such indemnification may include an amount
equal to (i) the present value of the amount of interest which would have
accrued on the amount so prepaid, so assigned or not so borrowed, converted or
continued, for the period from the date of such prepayment or assignment or of
such failure to borrow, convert or continue to the last day of the applicable
Interest Period (or, in the case of a failure to borrow, convert or continue,
the Interest Period that would have commenced on the date of such failure) in
each case at the applicable rate of interest for such Eurocurrency Loans
provided for herein (excluding, however, the Applicable Percentage included
therein, if any) minus (ii) the amount of interest (as reasonably determined by
such Lender) which would have accrued to such Lender on such amount by placing
such amount on deposit for a comparable period with leading banks in the
interbank Eurocurrency market. The agreements in this Section shall survive the
termination of this Credit Agreement and the payment of the Loans and all other
amounts payable hereunder.

         3.15 SUBSTITUTION OF LENDER; RELOCATION.

         In the event a Lender makes a request to the Borrower for compensation
in accordance with Section 3.9, 3.11, 3.12 or 3.13, or claims it is unable to
make or maintain Eurocurrency Loans, then, provided that no Event of Default has
occurred and is continuing at such time, the Borrower may, at its option either

                  (a) at its own expense (such expense to include any transfer
         fee payable to the Administrative Agent under Section 11.3(b) and any
         expense pursuant to Section 3.14), and in its sole discretion require
         such Lender to transfer and assign in whole (but not in

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         part), without recourse (in accordance with and subject to the terms
         and conditions of Section 11.3(b)), all of its interests, rights and
         obligations under this Credit Agreement to an Eligible Assignee which
         shall assume such assigned obligations (which assignee may be another
         Lender, if a Lender accepts such assignment); provided that (i) such
         assignment shall not conflict with any Requirement of Law or order of
         any court or other Governmental Authority, and (ii) the Borrower or
         such assignee shall have paid to the assigning Lender in immediately
         available funds the principal of and interest accrued to the date of
         such payment on the portion of the Loans hereunder held by such
         assigning Lender and all other amounts owed to such assigning Lender
         hereunder; or

                  (b) request that such Lender use its reasonable efforts
         (consistent with legal and regulatory restrictions) to avoid the need
         for paying such compensation or such inability, including changing the
         jurisdiction of its applicable lending office; provided, however, that
         the taking of such action would not, in the sole judgment of such
         Lender, be disadvantageous to such Lender and provided further that, if
         and to the extent the Borrower shall make the request described in this
         paragraph (b) and such request shall be denied, such denial shall not
         preclude the Borrower from exercising its rights under paragraph (a)
         above.

         3.16 ALL BORROWERS TREATED EQUALLY.

         Each Lender agrees that it will not make a request for compensation
pursuant to any of Sections 3.9, 3.11, 3.12 or 3.13, or claim it is unable to
make or maintain Eurocurrency Loans, unless such Lender at such time is making a
similar claim for compensation or inability of all or substantially all of its
borrowers which are similarly situated.

         3.17 LIMITATION ON MAKING CLAIMS.

         Notwithstanding anything herein to the contrary, the Borrower shall not
be required to make any payments to any Lender pursuant to Sections 3.9, 3.11,
3.12 or 3.13 relating to any period of time which is greater than 180 days prior
to such Lender's request for additional payment except for retroactive
application of such law, rule or regulation, in which case the Borrower is
required to make such payments for so long as such Person makes a request
therefor within 180 days of the public announcement of such retroactive
publication.

                                    SECTION 4
                                DOMESTIC GUARANTY

         4.1 GUARANTY OF PAYMENT.

         Subject to Section 4.7 below, each of the Domestic Guarantors hereby,
jointly and severally, unconditionally guarantees (the "Guaranty") to each
Lender, each Affiliate of a Lender that enters into a Hedging Agreement and the
Agents the prompt payment of the Credit Party Obligations in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration or

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<PAGE>   75

otherwise). This Guaranty is a guaranty of payment and not of collection and is
a continuing guaranty and shall apply to all Credit Party Obligations whenever
arising.

         4.2 OBLIGATIONS UNCONDITIONAL.

         The obligations of the Domestic Guarantors hereunder are absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of any of the Credit Documents or the Hedging Agreements, or any
other agreement or instrument referred to therein, to the fullest extent
permitted by applicable law, irrespective of any other circumstance whatsoever
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor. Each Domestic Guarantor agrees that this Guaranty may be
enforced by the Lenders without the necessity at any time of resorting to or
exhausting any other security or collateral and without the necessity at any
time of having recourse to the Notes or any other of the Credit Documents or any
Collateral, if any, hereafter securing the Credit Party Obligations or otherwise
and each Domestic Guarantor hereby waives the right to require the Lenders to
proceed against the Borrower or any other Person (including a co-guarantor) or
to require the Lenders to pursue any other remedy or enforce any other right.
Each Domestic Guarantor further agrees that it shall have no right of
subrogation, indemnity, reimbursement or contribution against a Borrower or any
other Domestic Guarantor of the Credit Party Obligations for amounts paid under
this Guaranty until such time as the Lenders (and any Affiliates of Lenders
entering into Hedging Agreements) have been paid in full, all Commitments under
the Credit Agreement have been terminated and no Person or Governmental
Authority shall have any right to request any return or reimbursement of funds
from the Lenders in connection with monies received under the Credit Documents.
Each Domestic Guarantor further agrees that nothing contained herein shall
prevent the Lenders from suing on the Notes or any of the other Credit Documents
or any of the Hedging Agreements or foreclosing its security interest in or Lien
on any Collateral, if any, securing the Credit Party Obligations or from
exercising any other rights available to it under this Credit Agreement, the
Notes, any other of the Credit Documents, or any other instrument of security,
if any, and the exercise of any of the aforesaid rights and the completion of
any foreclosure proceedings shall not constitute a discharge of any of any
Domestic Guarantor's obligations hereunder; it being the purpose and intent of
each Domestic Guarantor that its obligations hereunder shall be absolute,
independent and unconditional under any and all circumstances. Neither any
Domestic Guarantor's obligations under this Guaranty nor any remedy for the
enforcement thereof shall be impaired, modified, changed or released in any
manner whatsoever by an impairment, modification, change, release or limitation
of the liability of the Borrower or by reason of the bankruptcy or insolvency of
the Borrower. Each Domestic Guarantor waives any and all notice of the creation,
renewal, extension or accrual of any of the Credit Party Obligations and notice
of or proof of reliance by the Administrative Agent or any Lender upon this
Guaranty or acceptance of this Guaranty. The Credit Party Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon this
Guaranty. All dealings between the Borrower and any of the Domestic Guarantors,
on the one hand, and the Administrative Agent and the Lenders, on the other
hand, likewise shall be conclusively presumed to have been had or consummated in
reliance upon this Guaranty. The Domestic Guarantors further agree to all rights
of set-off as set forth in Section 11.2.

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<PAGE>   76

         4.3 MODIFICATIONS.

         Each Domestic Guarantor agrees that (a) all or any part of the
Collateral now or hereafter held for the Credit Party Obligations, if any, may
be exchanged, compromised or surrendered from time to time; (b) the Lenders
shall not have any obligation to protect, perfect, secure or insure any such
security interests, Liens or encumbrances now or hereafter held, if any, for the
Credit Party Obligations or the properties subject thereto; (c) the time or
place of payment of the Credit Party Obligations may be changed or extended, in
whole or in part, to a time certain or otherwise, and may be renewed or
accelerated, in whole or in part; (d) the Borrower and any other party liable
for payment under the Credit Documents may be granted indulgences generally; (e)
any of the provisions of the Notes or any of the other Credit Documents may be
modified, amended or waived; (f) any party (including any co-guarantor) liable
for the payment thereof may be granted indulgences or be released; and (g) any
deposit balance for the credit of the Borrower or any other party liable for the
payment of the Credit Party Obligations or liable upon any security therefor may
be released, in whole or in part, at, before or after the stated, extended or
accelerated maturity of the Credit Party Obligations, all without notice to or
further assent by such Domestic Guarantor, which shall remain bound thereon,
notwithstanding any such exchange, compromise, surrender, extension, renewal,
acceleration, modification, indulgence or release.

         4.4 WAIVER OF RIGHTS.

         Each Domestic Guarantor expressly waives to the fullest extent
permitted by applicable law: (a) notice of acceptance of this Guaranty by the
Lenders and of all extensions of credit to the Borrower by the Lenders; (b)
presentment and demand for payment or performance of any of the Credit Party
Obligations; (c) protest and notice of dishonor or of default (except as
specifically required in the Credit Agreement) with respect to the Credit Party
Obligations or with respect to any security therefor; (d) notice of the Lenders
obtaining, amending, substituting for, releasing, waiving or modifying any
security interest, Lien or encumbrance, if any, hereafter securing the Credit
Party Obligations, or the Lenders' subordinating, compromising, discharging or
releasing such security interests, Liens or encumbrances, if any; (e) all other
notices to which such Domestic Guarantor might otherwise be entitled; and (f)
except as specifically required under this Agreement, demand for payment under
this Guaranty.

         4.5 REINSTATEMENT.

         The obligations of the Domestic Guarantors under this Section 4 shall
be automatically reinstated if and to the extent that for any reason any payment
by or on behalf of any Person in respect of the Credit Party Obligations is
rescinded or must be otherwise restored by any holder of any of the Credit Party
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Domestic Guarantor agrees that it will
indemnify the Administrative Agent and each Lender on demand for all reasonable
costs and expenses (including, without limitation, reasonable fees and expenses
of counsel) incurred by the Administrative Agent or such Lender in connection
with such rescission or restoration, including any such costs and expenses
incurred in defending against any claim alleging that such payment constituted a
preference, fraudulent transfer or similar payment under any bankruptcy,
insolvency or similar law.

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         4.6 REMEDIES.

         The Domestic Guarantors agree that, to the fullest extent permitted by
law, as between the Domestic Guarantors, on the one hand, and the Administrative
Agent and the Lenders, on the other hand, the Credit Party Obligations may be
declared to be forthwith due and payable as provided in Section 9.2 (and shall
be deemed to have become automatically due and payable in the circumstances
provided in said Section 9.2) for purposes of Section 4.1 notwithstanding any
stay, injunction or other prohibition preventing such declaration (or preventing
the Credit Party Obligations from becoming automatically due and payable) as
against any other Person and that, in the event of such declaration (or the
Credit Party Obligations being deemed to have become automatically due and
payable), the Credit Party Obligations (whether or not due and payable by any
other Person) shall forthwith become due and payable by the Domestic Guarantors
for purposes of Section 4.1. The Domestic Guarantors acknowledge and agree that
their obligations hereunder are secured in accordance with the terms of the
Collateral Documents and that the Lenders may exercise their remedies thereunder
in accordance with the terms thereof.

         4.7 LIMITATION OF GUARANTY.

         Notwithstanding any provision to the contrary contained herein or in
any of the other Credit Documents, to the extent the obligations of any Domestic
Guarantor shall be adjudicated to be invalid or unenforceable for any reason
(including, without limitation, because of any applicable state or federal law
relating to fraudulent conveyances or transfers) then the obligations of such
Domestic Guarantor hereunder shall be limited to the maximum amount that is
permissible under applicable law (whether federal or state and including,
without limitation, the Bankruptcy Code).

         4.8 RIGHTS OF CONTRIBUTION.

         The Domestic Guarantors agree among themselves that, in connection with
payments made hereunder, each Domestic Guarantor shall have contribution rights
against the other Domestic Guarantors as permitted under applicable law. Such
contribution rights shall be subordinate and subject in right of payment to the
obligations of such Domestic Guarantors under the Credit Documents and no
Domestic Guarantor shall exercise such rights of contribution until all Credit
Party Obligations have been paid in full and the Commitments terminated.

                                    SECTION 5
                              CONDITIONS PRECEDENT

         5.1 CLOSING CONDITIONS.

         The obligation of the Lenders to enter into this Credit Agreement and
make the initial Extension of Credit is subject to satisfaction of the following
conditions:

                  (a) Executed Credit Documents. Receipt by the Administrative
         Agent of duly executed copies of: (i) this Credit Agreement; (ii) the
         Notes, (iii) the Collateral Documents and (iv) all other Credit
         Documents, each in form and substance acceptable to the Lenders in
         their sole discretion.

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<PAGE>   78

                  (b) Corporate Documents. With respect to each Domestic Credit
         Party, receipt by the Administrative Agent of the following:

                                    (i) Charter Documents. Copies of the
                           articles or certificates of incorporation or other
                           charter documents of such Person certified to be true
                           and complete as of a recent date by the appropriate
                           Governmental Authority of the state or other
                           jurisdiction of its incorporation and certified by a
                           secretary or assistant secretary of such Person to be
                           true and correct as of the Effective Date.

                                    (ii) Bylaws. A copy of the bylaws of such
                           Person certified by a secretary or assistant
                           secretary of such Person to be true and correct as of
                           the Effective Date.

                                    (iii) Resolutions. Copies of resolutions of
                           the Board of Directors of such Person approving and
                           adopting the Credit Documents to which it is a party,
                           the transactions contemplated therein and authorizing
                           execution and delivery thereof, certified by a
                           secretary or assistant secretary of such Person to be
                           true and correct and in force and effect as of the
                           Effective Date.

                                    (iv) Good Standing. Copies of certificates
                           of good standing, existence or its equivalent with
                           respect to such Person certified as of a recent date
                           by the appropriate Governmental Authorities of the
                           state or other jurisdiction of incorporation and each
                           other jurisdiction in which the failure to so qualify
                           and be in good standing could have or could
                           reasonably be expected to have a Material Adverse
                           Effect on the business or operations of such Person
                           in such jurisdiction.

                                    (v) Incumbency. An incumbency certificate of
                           such Person certified by a secretary or assistant
                           secretary of such Person to be true and correct as of
                           the Closing Date.

                  (c) Financial Statements. The Agents shall have received and,
         in each case, be satisfied with (i) interim estimated monthly
         consolidated financial statements of the Credit Parties and their
         Subsidiaries for each month subsequent to December 31, 1999 (which
         shall be available by the 15th day of the succeeding month), (ii)
         interim monthly consolidated financial statements of the Credit Parties
         and their Subsidiaries for each fiscal month after December 31, 1999
         (which shall be available by the 25th day of each succeeding month),
         (iii) monthly working capital detail of the Credit Parties and their
         Subsidiaries for the twelve month period ending on the Closing Date and
         the monthly working capital detail projections for the first year
         following the Closing Date and (iv) a pro forma consolidated balance
         sheet of the Credit Parties and their Subsidiaries as of the Closing
         Date as well as pro forma consolidated financial statements of the
         Credit Parties and their Subsidiaries for the year ended December 31,
         1999 and for the twelve months ended July 2, 2000 (collectively, the
         "Adjusted Pro Forma Financial Statements"), together with a certificate
         of

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<PAGE>   79

         the chief financial officer of the Parent to the effect that such
         statements accurately present the pro forma financial position of the
         Credit Parties and their Subsidiaries in accordance with GAAP, in each
         case after giving effect to (A) the Transaction, (B) all completed,
         probable and pending acquisitions and/or divestitures (including,
         without limitation, the assets of the Wheeling Closure Facility and the
         Warren Lithography Facility), (C) the financings and other transactions
         contemplated hereby and reflecting estimated purchase price accounting
         adjustments, that have been reviewed by independent public accountants
         of recognized national standing and meeting the requirements of
         Regulation S-X under the Securities Act, as amended, applicable to a
         Registration Statement under the Securities Act on Form S-1 and (D) the
         annual management fee of $750,000 payable to the Sponsor. Such pro
         forma financial statements (1) for the twelve months ended December 31,
         1999 shall evidence minimum EBITDA of $107 million, (2) for the twelve
         months ended June 30, 2000 shall evidence minimum EBITDA of $101.5
         million and (3) for the most recent twelve month period ending prior to
         the Closing Date (for which monthly financial statements are available
         as required in clause (ii) above) shall evidence minimum EBITDA of
         $101.5 million; provided such EBITDA figures in this sentence shall
         exclude up to $3.3 million of the one-time expenses and any pro forma
         cost savings resulting from the reduction in force announced by the
         Borrower in July, 2000.

                  (d) Opinion of Counsel. Receipt by the Agents of an opinion,
         or opinions (including, without limitation, local counsel opinions and
         foreign counsel opinions, which shall cover, among other things,
         authority, legality, validity, binding effect, enforceability and
         perfection of Liens and security interests), satisfactory to the
         Agents, addressed to the Agents and the Lenders and dated as of the
         Effective Date, from legal counsel to the Credit Parties and their
         Subsidiaries.

                  (e) Personal Property Collateral. The Collateral Agent shall
         have received (in form and substance satisfactory to the Collateral
         Agent):

                           (i) searches of Uniform Commercial Code filings in
                  the jurisdiction of the chief executive office of each
                  Domestic Credit Party and each jurisdiction where any
                  Collateral is located or where a filing would need to be made
                  in order to perfect the Lenders' security interest in the
                  Collateral, copies of the financing statements on file in such
                  jurisdictions and evidence that no Liens exist other than
                  Permitted Liens;

                           (ii) duly executed UCC financing statements for each
                  appropriate jurisdiction as is necessary, in the Collateral
                  Agent's sole discretion, to perfect the Lenders' security
                  interest in the Collateral;

                           (iii) searches of ownership of intellectual property
                  in the appropriate governmental offices and such
                  patent/trademark/copyright filings as requested by the
                  Collateral Agent to the extent necessary to perfect the
                  Lenders' security interest in the Collateral;

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<PAGE>   80

                           (iv) all stock certificates evidencing the stock
                  pledged to the Lenders pursuant to the Pledge Agreement,
                  together with duly executed in blank undated stock powers
                  attached thereto;

                           (v) all instruments and chattel paper in the
                  possession of any of the Domestic Credit Parties, together
                  with allonges or assignments as may be necessary or
                  appropriate to perfect the Lenders' security interest in the
                  Collateral;

                           (vi) such estoppel letters, consents and waivers from
                  landlords of real property leased to a Credit Party as may be
                  reasonably requested by the Collateral Agent; and

                           (vii) such other collateral documentation as may be
                  required by the Collateral Agent in its sole reasonable
                  discretion in order to perfect and protect the Lenders'
                  security interest in the Collateral.

                  (f) Owned Real Property Collateral. The Collateral Agent shall
         have received (in form and substance satisfactory to the Collateral
         Agent):

                           (i) fully executed and notarized mortgages, deeds of
                  trust or deeds to secure debt (each a "Mortgage" and
                  collectively the "Mortgages") encumbering the fee interest of
                  the Domestic Credit Parties in each real property asset owned
                  by a Domestic Credit Party set forth on Schedule 5.1(f)(i)
                  (each a "Mortgaged Property" and collectively the "Mortgaged
                  Properties"), together with such UCC-1 financing statements as
                  the Collateral Agent shall deem appropriate with respect to
                  each such Mortgaged Property;

                           (ii) an opinion of counsel (which counsel shall be
                  reasonably satisfactory to the Collateral Agent) in the state
                  in which each Mortgaged Property is located with respect to
                  the enforceability of the form of Mortgage and sufficiency of
                  the form of UCC-1 financing statements to be recorded or filed
                  in such state, if applicable, and such other matters as the
                  Collateral Agent may request;

                           (iii) ALTA or other appropriate form mortgagee title
                  insurance policies (the "Mortgage Policies") issued by a title
                  insurer company satisfactory to the Collateral Agent (the
                  "Title Insurance Company"), in an amount reasonably
                  satisfactory to the Collateral Agent with respect to each
                  Mortgaged Property, assuring the Collateral Agent that the
                  Mortgages, as applicable, create valid and enforceable first
                  priority mortgage liens on the respective Mortgaged Property,
                  free and clear of all defects and encumbrances except
                  Permitted Liens, and containing such endorsements as shall be
                  reasonably required by the Collateral Agent.

                           (iv) evidence as to (A) whether any Mortgaged
                  Property is in an area designated by the Federal Emergency
                  Management Agency as having special

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<PAGE>   81

                  flood or mud slide hazards (a "Flood Hazard Property") and (B)
                  if any Mortgaged Property is a Flood Hazard Property, (1)
                  whether the community in which such Mortgaged Property is
                  located is participating in the National Flood Insurance
                  Program, (2) the applicable Domestic Credit Party's written
                  acknowledgment of receipt of written notification from the
                  Collateral Agent (a) as to the fact that such Mortgaged
                  Property is a Flood Hazard Property and (b) as to whether the
                  community in which each such Flood Hazard Property is located
                  is participating in the National Flood Insurance Program and
                  (3) copies of insurance policies or certificates of insurance
                  of the applicable Domestic Credit Party evidencing flood
                  insurance satisfactory to the Collateral Agent and naming the
                  Collateral Agent as sole loss payee on behalf of the Lenders;

                           (v) a real estate valuation for each of the Mortgaged
                  Properties reasonably acceptable to the Collateral Agent;

                           (vi) an environmental assessment for each Mortgaged
                  Property (other than the Mortgaged Properties located in
                  Tallapoosa, Georgia (42 Lipham Street), Danville, Illinois,
                  Baltimore, Maryland, Horsham, Pennsylvania, Hubbard, Ohio and
                  Dallas, Texas) from a consulting firm acceptable to the
                  Collateral Agent; and

                           (vii) such other real property collateral
                  documentation as may be required by the Collateral Agent in
                  its sole reasonable discretion in order to perfect and protect
                  the Lenders' security interest in the Collateral, including,
                  without limitation, any real property collateral documentation
                  required by the Collateral Agent with respect to the
                  Collateral pledged by the Foreign Credit Parties.

                  (g) Evidence of Insurance. Receipt by the Collateral Agent of
         copies of insurance policies or certificates of insurance of the
         Domestic Credit Parties and their Subsidiaries evidencing liability and
         casualty insurance meeting the requirements set forth in the Credit
         Documents, including, but not limited to, naming the Collateral Agent
         as additional insured and sole loss payee on behalf of the Lenders.

                  (h) Consent. Receipt by the Administrative Agent of evidence
         that all governmental, shareholder and material third party consents
         (including, without limitation, the termination or expiration of the
         waiting period under the Hart-Scott-Rodino Antitrust Improvement Act)
         and approvals necessary or desirable in connection with the Transaction
         and the other transactions contemplated hereby shall have been
         obtained, all such consents and approvals shall be in full force and
         effect and all applicable waiting periods shall have expired without
         any action being taken by any Governmental Authority that could
         restrain, prevent or impose any material adverse conditions on the
         Transaction or such other transactions contemplated hereby or that
         could reasonably be likely to threaten any of the foregoing.

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<PAGE>   82

                  (i) Material Adverse Effect. Since December 31, 1999, there
         has been no development or event relating to or affecting a Credit
         Party or any of its Subsidiaries that has had or could be reasonably
         expected to have a Material Adverse Effect.

                  (j) Litigation. There shall not exist any (i) order, decree,
         judgment, ruling or injunction which restrains the consummation of the
         Transaction in the manner contemplated by the Merger Agreement or (ii)
         pending or threatened action, suit, investigation or proceeding against
         a Credit Party or any of its Subsidiaries that would have or could
         reasonably be expected to have a Material Adverse Effect.

                  (k) Officer's Certificates. The Administrative Agent shall
         have received a certificate or certificates executed by the chief
         financial officer of the Borrower on behalf of the Credit Parties as of
         the Effective Date stating that (A) the Credit Parties and each of
         their Subsidiaries are in compliance with all Material Contracts, (B)
         all governmental, shareholder and third party consents and approvals,
         if any, with respect to the Credit Documents and the transactions
         contemplated thereby have been obtained, (C) no action, suit,
         investigation or proceeding is pending or threatened in any court or
         before any arbitrator or Governmental Authority that purports to affect
         a Credit Party, any of the Credit Parties' Subsidiaries or any
         transaction contemplated by the Credit Documents, if such action, suit,
         investigation or proceeding would have or could be reasonably expected
         to have a Material Adverse Effect, (D) the Adjusted Pro Forma Financial
         Statements were prepared in good faith and using reasonable assumptions
         and (E) immediately after giving effect to this Credit Agreement, the
         other Credit Documents and all the transactions contemplated therein to
         occur on such date, (1) each Credit Party is Solvent, (2) no Default or
         Event of Default exists, (3) all representations and warranties
         contained herein and in the other Credit Documents are true and correct
         in all material respects, and (4) the Credit Parties are in compliance
         with each of the financial covenants set forth in Section 7.11.

                  (l) Consummation of Equity Financing, Subordinated Debt and
         Refinancing. The Equity Financing, the Subordinated Debt and the
         Refinancing shall have been consummated on terms satisfactory to the
         Agents in all respects, and all conditions precedent to the
         consummation of the Equity Financing and the Subordinated Debt shall
         have been satisfied or, with the prior approval of the Agents, waived.

                  (m) Capitalization; Sources and Uses. The Agents and their
         counsel shall be reasonably satisfied with (a) the capitalization,
         structure and equity ownership of the Credit Parties and their
         Subsidiaries, before and after giving effect to the Transaction and (b)
         the sources and uses of funds relating to the Transaction. The
         corporate, capital and ownership structure (including charter and
         by-laws) and stockholders' agreements, management agreements, franchise
         agreements, employment agreements, stock option and other employee
         benefit plans and management of the Credit Parties and their
         Subsidiaries (after giving effect to the Transaction) shall be
         satisfactory to the Agents in all material respects.

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                  (n) Merger Agreement. The Borrower shall have delivered and
         certified to the Administrative Agent a true, correct and complete copy
         of the Merger Agreement. The Merger Agreement shall not have been
         altered, amended or otherwise changed or supplemented in any material
         respect or any material condition precedent therein waived, without the
         prior written consent of the Agents. The Transaction shall have been
         consummated in all material respects in accordance with the terms of
         the Merger Agreement and in compliance with applicable laws and
         regulatory approvals, and all conditions precedent to the obligations
         of the Credit Parties and their Subsidiaries under the Merger Agreement
         shall have been satisfied or, with the prior approval of the Agents,
         waived.

                  (o) Ratio of Total Indebtedness to Adjusted Pro Forma
         Consolidated EBITDA. The Agents shall have received evidence that the
         ratio of (i) the total Indebtedness of the Credit Parties and their
         Subsidiaries on a consolidated basis as of the end of the most recent
         fiscal quarter for which unaudited financial statements have been
         provided to the Agents, on a pro forma basis, after giving effect to
         the Transactions, to (ii) EBITDA of the Credit Parties and their
         Subsidiaries on a consolidated basis, as determined pursuant to the
         Adjusted Pro Forma Financial Statements (the "Adjusted Pro Forma
         Consolidated EBITDA"), for the period of four fiscal quarters ending as
         of the end of the most recent fiscal quarter for which unaudited
         financial statements have been provided to the Agents, would not exceed
         4.85 to 1.0.

                  (p) Solvency Opinion. Receipt by the Agents of an opinion from
         an independent auditor or appraiser acceptable to the Agents as to the
         solvency of the Credit Parties and their Subsidiaries on a consolidated
         basis after giving effect to the Transaction.

                  (q) Availability. After giving effect to the Transaction and
         all Extensions of Credit made on the Effective Date, the sum of the
         aggregate amount of Revolving Loans outstanding plus the aggregate
         amount of Swingline Loans outstanding plus the aggregate amount of
         Foreign Currency Loans outstanding shall not exceed $30,000,000.

                  (r) Compliance with Financial Obligations. The Agents shall be
         satisfied that no defaults exist and are continuing with respect to any
         Indebtedness that will survive subsequent to the Closing Date, after
         giving effect to the Transaction.

                  (s) Engagement Letter. An engagement letter with a financial
         institution or financial institutions reasonably acceptable to the
         Agents, BAS and SSB pursuant to which the Borrower shall have engaged
         such financial institution(s) to act as underwriter, placement agent or
         initial purchaser of any public or private offering of debt securities
         by the Borrower, on terms and conditions reasonably acceptable to the
         Agents, BAS and SSB, shall be in full force and effect.

                  (t) Outstanding Indebtedness. The Agents shall have received
         satisfactory evidence that, after giving effect to the Transactions,
         neither the Credit Parties nor their Subsidiaries shall have
         outstanding any Indebtedness other than Indebtedness permitted pursuant
         to Section 8.1. The terms and conditions of all Indebtedness of the
         Credit

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         Parties and their Subsidiaries that will remain outstanding after the
         Closing Date (including but not limited to terms and conditions
         relating to the interest rate, fees, amortization, maturity,
         subordination, covenants, events of defaults and remedies) shall be
         reasonably satisfactory in all respects to the Lenders.

                  (u) Taxes. The Agents shall be reasonably satisfied in all
         respects (a) with the tax position and the contingent tax liabilities
         of the Credit Parties and their Subsidiaries for prior operating
         periods, and with the plans of the Credit Parties and their
         Subsidiaries with respect thereto, and (b) with any tax sharing
         agreements among the Credit Parties and their Subsidiaries after giving
         effect to the Transactions.

                  (v) Contractual Restrictions. The Agents shall be satisfied
         that, other than as set forth on Schedule 5.1(v), no Credit Party and
         no Subsidiary of a Credit Party is subject to material contractual or
         other restrictions that would be violated by the Transactions,
         including the granting of guarantees and the payment of dividends by
         Subsidiaries of a Credit Party.

                  (w) Absence of Defaults. There shall not exist or have
         occurred any defaults, prepayment events or creation of Liens under
         debt instruments or other agreements as a result of the Transactions or
         otherwise.

                  (x) Fees and Expenses. (i) All fees and expenses due and
         payable to the Agents, any Lender and/or their Affiliates hereunder or
         pursuant to the Commitment Letter, the Fee Letter or otherwise shall
         have been paid in full as contemplated herein and therein, and (ii)
         each of the Sponsor and Pac Packaging shall have complied with all of
         their respective obligations under the Commitment Letter and the Fee
         Letter, and each such letter shall be in full force and effect.

                  (y) Existing Management. Management of the Credit Parties and
         their Subsidiaries (after giving effect to the Transaction) shall be
         satisfactory to the Agents in all respects. It is understood that
         management of the Credit Parties and their Subsidiaries as of September
         29, 2000 is satisfactory to the Agents.

                  (z) Other. Receipt by the Lenders of such other documents,
         instruments, agreements or information as reasonably and timely
         requested by any Lender, including, but not limited to, information
         regarding litigation, tax, accounting, labor, insurance, pension
         liabilities (actual or contingent), real estate leases, material
         contracts, debt agreements, property ownership and contingent
         liabilities of the Credit Parties and their Subsidiaries.

         5.2 CONDITIONS TO ALL EXTENSIONS OF CREDIT.

         In addition to the conditions precedent stated elsewhere herein, the
Lenders shall not be obligated to make new Loans nor shall the Issuing Lender be
required to issue or extend a Letter of Credit unless:

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<PAGE>   85

                  (a) Notice. The Borrower shall have delivered (i) in the case
         of any new Revolving Loan, to the Administrative Agent, an appropriate
         Notice of Borrowing, duly executed and completed, by the time specified
         in Section 2.1, (ii) in the case of any Letter of Credit, to the
         Issuing Lender, an appropriate request for issuance of a Letter of
         Credit in accordance with the provisions of Section 2.2, (iii) in the
         case of any Swing Line Loan, to the Swing Line Lender, a Swing Line
         Loan Request, duly executed and completed, by the time specified in
         Section 2.5, and (iv) in the case of any new Foreign Currency Loan, to
         the Administrative Agent, an appropriate Foreign Currency Notice of
         Borrowing, duly executed and completed, by the time specified in
         Section 2.6.

                  (b) Representations and Warranties. The representations and
         warranties made by the Credit Parties in any Credit Document are true
         and correct in all material respects at and as if made as of such date
         except to the extent they expressly relate to an earlier date.

                  (c) No Default. No Default or Event of Default shall exist or
         be continuing either prior to or after giving effect thereto.

                  (d) No Material Adverse Effect. Since December 31, 1999, there
         has been no development or event relating to or affecting a Credit
         Party or any of its Subsidiaries that has had or could be reasonably
         expected to have a Material Adverse Effect.

                  (e) Availability. Immediately after giving effect to the
         making of a Loan (and the application of the proceeds thereof) or to
         the issuance of a Letter of Credit, as the case may be, (i) the sum of
         the Revolving Loans outstanding plus LOC Obligations outstanding plus
         Swing Line Loans outstanding plus the U.S. Dollar Equivalent of Foreign
         Currency Loans outstanding shall not exceed the Revolving Committed
         Amount, (ii) the sum of LOC Obligations outstanding shall not exceed
         the LOC Committed Amount, (iii) the sum of Swing Line Loans outstanding
         shall not exceed the Swing Line Committed Amount, (iv) the sum of the
         U.S. Dollar Equivalent of Foreign Currency Loans outstanding shall not
         exceed the Foreign Currency Committed Amount and (v) with respect to
         any Foreign Currency Loan, the U.S. Dollar Equivalent of the aggregate
         amount of Foreign Currency Loans outstanding to the requesting Foreign
         Subsidiary Borrower (or to the Borrower) shall not exceed the sublimits
         set forth in Section 2.6(a).

The delivery of each Notice of Borrowing, Foreign Currency Notice of Borrowing,
Swing Line Loan Request and each request for a Letter of Credit shall constitute
a representation and warranty by the Credit Parties of the correctness of the
matters specified in subsections (b), (c), (d) and (e) above. This Section 5.2
shall not apply to continuations or conversions of Loans made pursuant to
Section 2.7.

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                                    SECTION 6
                         REPRESENTATIONS AND WARRANTIES

         The Credit Parties hereby represent to the Agents and each Lender that:

         6.1 FINANCIAL CONDITION.

         The financial statements delivered to the Lenders pursuant to Section
5.1(c) and Sections 7.1(a) and (b), (a) have been prepared in accordance with
GAAP and (b) present fairly (on the basis disclosed in the footnotes to such
financial statements) the consolidated and consolidating (as applicable)
financial condition, results of operations and cash flows of the Credit Parties
and their Subsidiaries as of such date and for such periods. Since December 31,
1999, there has been no sale, transfer or other disposition by a Credit Party or
any of its Subsidiaries of any material part of the business or property of the
Credit Parties and their Subsidiaries, taken as a whole, and no purchase or
other acquisition by any of them of any business or property (including any
Capital Stock of any other Person) material in relation to the consolidated
financial condition of the Credit Parties taken as a whole, which is not (A)
reflected in the most recent financial statements delivered to the Lenders
pursuant to Section 5.1(c), 7.1 or in the notes thereto or (B) otherwise
permitted by the terms of this Credit Agreement and communicated to the
Administrative Agent.

         6.2 NO MATERIAL CHANGE.

         Since December 31, 1999, there has been no development or event
relating to or affecting a Credit Party or any of its Subsidiaries that has had
or could be reasonably expected to have a Material Adverse Effect and (b) from
and after the Closing Date, except as otherwise permitted under this Credit
Agreement, including Section 8.7, no dividends or other distributions have been
declared, paid or made upon the Capital Stock or other equity interest in a
Credit Party or any of its Subsidiaries nor has any of the Capital Stock or
other equity interest in a Credit Party been redeemed, retired, purchased or
otherwise acquired for value.

         6.3 ORGANIZATION AND GOOD STANDING.

         Each Credit Party and each of its Subsidiaries (a) is duly organized,
validly existing and in good standing under the laws of the state (or other
jurisdiction) of its organization (or with respect to a Foreign Subsidiary, the
equivalent thereof), (b) is duly qualified and in good standing as a foreign
organization and authorized to do business in every jurisdiction (or with
respect to a Foreign Subsidiary, the equivalent thereof) unless the failure to
be so qualified, in good standing or authorized would not have or could not
reasonably be expected to have a Material Adverse Effect and (c) has the
requisite power and authority to own its properties and to carry on its business
as now conducted and as proposed to be conducted.

         6.4 DUE AUTHORIZATION.

         Each of the Credit Parties (a) has the requisite power and authority to
execute, deliver and perform this Credit Agreement and the other Credit
Documents to which it is a party and to incur

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the obligations herein and therein provided for and (b) is duly authorized to,
and has been authorized by all necessary action, to execute, deliver and perform
this Credit Agreement and the other Credit Documents to which it is a party.

         6.5 NO CONFLICTS.

         Neither the execution and delivery of the Credit Documents, nor the
consummation of the transactions contemplated therein, nor performance of and
compliance with the terms and provisions thereof by any Credit Party will (a)
violate or conflict with any provision of its articles or certificate of
incorporation, bylaws or other charter or organizational document, (b) violate,
contravene or materially conflict with any Requirement of Law or any other law,
regulation (including, without limitation, Regulation T, Regulation U or
Regulation X), order, writ, judgment, injunction, decree or permit applicable to
it, (c) violate, contravene or conflict with contractual provisions of, or cause
an event of default under, any Material Contract or any other indenture, loan
agreement, mortgage, deed of trust, contract or other agreement or instrument to
which it is a party or by which it may be bound, the violation of which could
have or might be reasonably expected to have a Material Adverse Effect or (d)
result in or require the creation of any Lien (other than those contemplated in
or created in connection with the Credit Documents) upon or with respect to its
properties.

         6.6 CONSENTS.

         Except for consents, approvals and authorizations which have been
obtained, no consent, approval, authorization or order of, or filing,
registration or qualification with, any court or Governmental Authority or third
party in respect of any Credit Party is required in connection with the
execution, delivery or performance of this Credit Agreement or any of the other
Credit Documents by such Credit Party.

         6.7 ENFORCEABLE OBLIGATIONS.

         This Credit Agreement and the other Credit Documents have been duly
executed and delivered and constitute legal, valid and binding obligations of
each Credit Party enforceable against such Credit Party in accordance with their
respective terms, except as may be limited by bankruptcy or insolvency laws or
similar laws affecting creditors' rights generally or by general equitable
principles.

         6.8 NO DEFAULT.

         No Credit Party, nor any of its Subsidiaries, is in default in any
respect under any Material Contract or any other contract, lease, loan
agreement, indenture, mortgage, security agreement or other agreement or
obligation to which it is a party or by which any of its properties is bound
which default would have or could be reasonably expected to have a Material
Adverse Effect. No Default or Event of Default has occurred or exists except as
previously disclosed in writing to the Lenders.

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         6.9 OWNERSHIP.

         Each Credit Party and each of its Subsidiaries is the owner of, and has
good and marketable title to, all of its respective material assets. None of the
assets of the Credit Parties and their Subsidiaries is subject to any Lien other
than Permitted Liens.

         6.10 INDEBTEDNESS.

         The Credit Parties and their Subsidiaries have no Indebtedness except
(a) as permitted by Section 8.1 or (b) that is being repaid on the Closing Date.

         6.11 LITIGATION.

         There are no actions, suits or legal, equitable, arbitration or
administrative proceedings, pending or, to the knowledge of the Credit Parties,
threatened against a Credit Party or any of its Subsidiaries which would have or
could reasonably be expected to have a Material Adverse Effect.

         6.12 TAXES.

         Each of the Credit Parties and each of its Subsidiaries has filed, or
caused to be filed, all federal, state, foreign and material local (domestic and
foreign) tax returns required to be filed and paid (a) all amounts of taxes
shown thereon to be due (including interest and penalties) and (b) all other
taxes, fees, assessments and other governmental charges (including mortgage
recording taxes, documentary stamp taxes and intangibles taxes) owing by it,
except for such taxes (i) which are not yet delinquent or (ii) that are being
contested in good faith and by proper proceedings, and against which adequate
reserves are being maintained in accordance with GAAP. No Credit Party is aware
as of the Closing Date of any proposed tax assessments against it or any of its
Subsidiaries, except as set forth on Schedule 6.12.

         6.13 COMPLIANCE WITH LAW.

         Each Credit Party and each of its Subsidiaries is in compliance with
all Requirements of Law and all other laws, rules, regulations, orders and
decrees (including without limitation Environmental Laws) applicable to it, or
to its properties, unless such failure to comply could not have or could not be
reasonably expected to have a Material Adverse Effect. No Requirement of Law
could be reasonably expected to cause a Material Adverse Effect.

         6.14 ERISA.

         Except as would not have or could not reasonably be expected to have a
Material Adverse Effect:

                  (a) During the five-year period prior to the date on which
         this representation is made or deemed made: (i) no Termination Event
         has occurred, and, to the best knowledge of the Credit Parties, no
         event or condition has occurred or exists as a result of

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         which any Termination Event could reasonably be expected to occur, with
         respect to any Plan; (ii) no "accumulated funding deficiency," as such
         term is defined in Section 302 of ERISA and Section 412 of the Code,
         whether or not waived, has occurred with respect to any Plan; (iii)
         each Plan has been maintained, operated, and funded in compliance with
         its own terms and in material compliance with the provisions of ERISA,
         the Code, and any other applicable federal or state laws; and (iv) no
         Lien in favor or the PBGC or a Plan has arisen or is reasonably likely
         to arise on account of any Plan.

                  (b) The actuarial present value of all "benefit liabilities"
         (within the meaning of Section 4001 of ERISA) under each Single
         Employer Plan (determined utilizing the actuarial assumptions used to
         fund such Plans), whether or not vested, did not, as of the last annual
         valuation date prior to the date on which this representation is made
         or deemed made, exceed the fair market current value as of such date of
         the assets of such Plan allocable to such accrued liabilities.

                  (c) Neither a Credit Party, nor any of its Subsidiaries, nor
         any ERISA Affiliate has incurred, or, to the best knowledge of the
         Credit Parties, are reasonably expected to incur, any withdrawal
         liability under ERISA to any Multiemployer Plan or Multiple Employer
         Plan. Neither a Credit Party, nor any of its Subsidiaries, nor any
         ERISA Affiliate has received any notification that any Multiemployer
         Plan is in reorganization (within the meaning of Section 4241 of
         ERISA), is insolvent (within the meaning of Section 4245 of ERISA), or
         has been terminated (within the meaning of Title IV of ERISA), and no
         Multiemployer Plan is, to the best knowledge of the Credit Parties,
         reasonably expected to be in reorganization, insolvent, or terminated.

                  (d) No prohibited transaction (within the meaning of Section
         406 of ERISA or Section 4975 of the Code) or breach of fiduciary
         responsibility has occurred with respect to a Plan which has subjected
         or is reasonably likely to subject a Credit Party or any of its
         Subsidiaries or any ERISA Affiliate to any liability under Sections
         406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or
         under any agreement or other instrument pursuant to which a Credit
         Party or any of its Subsidiaries or any ERISA Affiliate has agreed or
         is required to indemnify any Person against any such liability.

                  (e) The present value (determined using actuarial and other
         assumptions which are reasonable with respect to the benefits provided
         and the employees participating) of the liability of the Credit Parties
         and their Subsidiaries and each ERISA Affiliate for post-retirement
         welfare benefits to be provided to their current and former employees
         under Plans which are welfare benefit plans (as defined in Section 3(1)
         of ERISA), net of all assets under all such Plans allocable to such
         benefits, are reflected on the financial statements of the Credit
         Parties and their Subsidiaries in accordance with FASB 106.

                  (f) Each Plan which is a welfare plan (as defined in Section
         3(1) of ERISA) to which Sections 601-609 of ERISA and Section 4980B of
         the Code apply has been administered in compliance in all material
         respects with such sections.

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<PAGE>   90

                  (g) Each Foreign Employee Benefit Plan and each Foreign
         Pension Plan is in compliance in all material respects with all laws,
         regulations and rules applicable thereto and the respective
         requirements of the governing documents for such Foreign Employee
         Benefit Plan. The aggregate of the liabilities to provide all of the
         accrued benefits under any Foreign Pension Plan does not exceed the
         current fair market value of the assets held in the trust or other
         funding vehicle for such Plan. With respect to such liabilities
         relating to each such Foreign Employee Benefit Plan (other than a
         Foreign Pension Plan) maintained by a Credit Party, any of its
         Subsidiaries or any of its ERISA Affiliates, reasonable reserves have
         been established in accordance with prudent business practices or,
         where required, by ordinary accounting practices in the jurisdiction in
         which such Plan is maintained. The aggregate unfunded liabilities,
         after giving effect to any reserves for such liabilities, with respect
         to such Foreign Employee Benefit Plans will not result in a material
         liability of a Credit Party and its Subsidiaries. There are no actions,
         suits or claims (other than routine claims for benefits) pending or
         threatened against a Credit Party, any of its Subsidiaries or any of
         its ERISA Affiliates with respect to any Foreign Employee Benefit Plan.

         6.15 SUBSIDIARIES.

         Set forth on Schedule 6.15 is (a) a complete and accurate list of all
Subsidiaries of each Credit Party and (b) a complete and accurate list of all
Foreign Subsidiary Borrowers. Information on Schedule 6.15 includes jurisdiction
of organization, the number of shares of each class of Capital Stock
outstanding, the number and percentage of outstanding shares of each class of
Capital Stock owned (directly or indirectly) by such Credit Party and the number
and effect, if exercised, of all outstanding options, warrants, rights of
conversion or purchase and all other similar rights with respect thereto. The
outstanding Capital Stock of all such Subsidiaries is validly issued, fully paid
and non-assessable and is owned by each such Credit Party, directly or
indirectly, free and clear of all Liens (other than those arising under or
contemplated in connection with the Credit Documents). Other than as set forth
in Schedule 6.15, neither any Credit Party nor any Subsidiary thereof has
outstanding any securities convertible into or exchangeable for its Capital
Stock nor does any such Person have outstanding any rights to subscribe for or
to purchase or any options for the purchase of, or any agreements providing for
the issuance (contingent or otherwise) of, or any calls, commitments or claims
of any character relating to its Capital Stock. Schedule 6.15 may be updated
from time to time by the Borrower by giving written notice thereof to the
Administrative Agent.

         6.16 USE OF PROCEEDS.

         The proceeds of the Loans hereunder will be used solely for the
purposes specified in Section 7.9.

         6.17 GOVERNMENT REGULATION.

                  (a) No part of the Letters of Credit or proceeds of the Loans
         will be used, directly or indirectly, for the purpose of purchasing or
         carrying any "margin stock" within the meaning of Regulation U, or for
         the purpose of purchasing or carrying or trading in

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         any securities. No Indebtedness being reduced or retired out of the
         proceeds of the Loans was or will be incurred for the purpose of
         purchasing or carrying any margin stock within the meaning of
         Regulation U or any "margin security" within the meaning of Regulation
         T. "Margin stock" within the meaning of Regulation U does not
         constitute more than 25% of the value of the consolidated assets of the
         Credit Parties and their Subsidiaries. None of the transactions
         contemplated by the Credit Documents (including, without limitation,
         the direct or indirect use of the proceeds of the Loans) will violate
         or result in a violation of (i) the Securities Act, (ii) the Exchange
         Act or (iii) Regulations T, U or X.

                  (b) No Credit Party, nor any of its Subsidiaries, is subject
         to regulation under the Public Utility Holding Company Act of 1935, the
         Federal Power Act or the Investment Company Act of 1940, each as
         amended. In addition, no Credit Party, nor any of its Subsidiaries, is
         (i) an "investment company" registered or required to be registered
         under the Investment Company Act of 1940, as amended, and is not
         controlled by an "investment company", or (ii) a "holding company", or
         a "subsidiary company" of a "holding company", or an "affiliate" of a
         "holding company" or of a "subsidiary" of a "holding company", within
         the meaning of the Public Utility Holding Company Act of 1935, as
         amended.

         6.18 ENVIRONMENTAL MATTERS.

                  (a) Except as would not have or could not reasonably be
         expected to have a Material Adverse Effect:

                                    (i) Each of the real property assets owned,
                  leased or operated by a Credit Party or any of its
                  Subsidiaries (the "Real Properties") and all operations at the
                  Real Properties are in compliance with all applicable
                  Environmental Laws, and there is no violation of any
                  Environmental Law with respect to the Real Properties or the
                  businesses operated by the Credit Parties or any of their
                  Subsidiaries (the "Businesses"), and there are no conditions
                  relating to the Businesses or Real Properties that could be
                  reasonably expected to give rise to liability under any
                  applicable Environmental Laws.

                                    (ii) Neither a Credit Party nor any of its
                  Subsidiaries has received any written or oral notice of, or
                  inquiry from any Governmental Authority regarding, any
                  violation, alleged violation, non-compliance, liability or
                  potential liability regarding Hazardous Materials or
                  compliance with Environmental Laws with regard to any of the
                  Real Properties or the Businesses, nor does a Credit Party or
                  any of its Subsidiaries have knowledge or reason to believe
                  that any such notice is being threatened.

                                    (iii) Hazardous Materials have not been
                  transported or disposed of from the Real Properties, or
                  generated, treated, stored or disposed of at, on or under any
                  of the Real Properties or any other location, in each case by,
                  or on behalf or with the permission of a Credit Party or any
                  of its Subsidiaries in a

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                  manner that could reasonably be expected to give rise to
                  liability under any applicable Environmental Law.

                                    (iv) No judicial proceeding or governmental
                  or administrative action is pending or, to the knowledge of a
                  Credit Party or any of its Subsidiaries, threatened, under any
                  Environmental Law to which a Credit Party or any of its
                  Subsidiaries is or will be named as a party, nor are there any
                  consent decrees or other decrees, consent orders,
                  administrative orders or other orders, or other administrative
                  or judicial requirements outstanding under any Environmental
                  Law with respect to a Credit Party or any of its Subsidiaries,
                  the Real Properties or the Businesses, in any amount
                  reportable under the federal Comprehensive Environmental
                  Response, Compensation and Liability Act or any analogous
                  state law, except releases in compliance with any
                  Environmental Laws.

                                    (v) There has been no release or threat of
                  release of Hazardous Materials at or from the Real Properties,
                  or arising from or related to the operations (including,
                  without limitation, disposal) of a Credit Party or any of its
                  Subsidiaries in connection with the Real Properties or
                  otherwise in connection with the Businesses.

                  (b) The Credit Parties and their Subsidiaries have adopted
         procedures that are designed to (i) ensure that each Credit Party and
         its Subsidiaries, any of their operations and each of the properties
         owned or leased by each Credit Party and/or its Subsidiaries remains in
         compliance with applicable Environmental Laws and (ii) minimize any
         liabilities or potential liabilities that each Credit Party and its
         Subsidiaries, any of their operations and each of the properties owned
         or leased by each Credit Party and/or its Subsidiaries may have under
         applicable Environmental Laws.

         6.19 INTELLECTUAL PROPERTY.

         Each Credit Party and each of its Subsidiaries owns, or has the legal
right to use, all Intellectual Property necessary for each of them to conduct
its business as currently conducted. Except as set forth on Schedule 6.19, (a)
no holding, decision or judgment has been rendered by any Governmental Authority
which would limit, cancel or question the validity of any material Intellectual
Property and (b) no action or proceeding is pending seeking to limit, cancel or
question the validity of any material Intellectual Property. Set forth on
Schedule 6.19 is a list of all registered Intellectual Property and all other
material Intellectual Property, in each case owned by each Credit Party or that
any Credit Party has the right to use. Except as provided on Schedule 6.19, 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, nor does any Credit Party know of any such
claim, and to the Credit Parties' knowledge the use of such Intellectual
Property by a Credit Party or any of their Subsidiaries does not infringe on the
rights of any Person. Schedule 6.19 may be updated from time to time by the
Borrower by giving written notice thereof to the Administrative Agent.

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         6.20 SOLVENCY.

         Each Credit Party is and, after consummation of the transactions
contemplated by this Credit Agreement, will be Solvent.

         6.21 INVESTMENTS.

         All Investments of the Credit Parties and their Subsidiaries are
Permitted Investments.

         6.22 DISCLOSURE; PROJECTIONS.

         Neither this Credit Agreement nor any financial statements delivered to
an Agent or the Lenders nor any other document, certificate or statement
furnished to an Agent or the Lenders by or on behalf of a Credit Party or any of
its Subsidiaries in connection with the transactions contemplated hereby,
including, without limitation, the offering memorandums prepared in connection
with the closing of this Credit Agreement (as supplemented by the disclosure on
Schedule 6.22), contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained
therein or herein in the light of the circumstances under which they were made
not misleading as of the date such financial statement, document, certificate or
other statement was made or delivered. All financial projections concerning the
Credit Parties and their Subsidiaries made available to the Agents and the
Lenders, whether prior to or after the Closing Date, including, without
limitation, projections in the budgets prepared pursuant to Section 7.1(e), have
been prepared in good faith based upon reasonable assumptions.

         6.23 LICENSES, ETC.

         Each Credit Party has obtained and holds in full force and effect, all
franchises, licenses, permits, certificates, authorizations, qualifications,
accreditations, easements, rights of way and other rights, consents and
approvals which are necessary for the operation of its business as presently
conducted except where the failure to do so could not have or could not be
reasonably expected to have a Material Adverse Effect.

         6.24 NO BURDENSOME RESTRICTIONS.

         No Credit Party, nor any of its Subsidiaries, is a party to any
agreement or instrument or subject to any other obligation or any charter or
corporate restriction or any provision of any applicable law, rule or regulation
which individually or in the aggregate, could have or be reasonably expected to
have a Material Adverse Effect.

         6.25 BROKER'S FEES.

         Except as set forth in the Fee Letter, the Bridge Fee Letter, the M&A
Engagement Letter, or the Management Agreement, dated as of the Closing Date,
between Berkshire Partners LLC and the Borrower, no Credit Party, nor any of its
Subsidiaries, has any obligation to any Person

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in respect of any finder's, broker's, investment banking or other similar fee in
connection with any of the transactions contemplated under the Credit Documents.

         6.26 LABOR MATTERS.

         Except as disclosed on Schedule 6.26, (a) there are no collective
bargaining agreements, labor contracts or Multiemployer Plans covering the
employees of a Credit Party, (b) no union or other labor organization is seeking
to organize, or be recognized as, a collective bargaining unit of employees of
any Credit Party or any of their Subsidiaries and (c) there is no pending or
threatened strike, walkout, work stoppage, material unfair labor claim or
material labor dispute against or affecting any Credit Party or any of their
Subsidiaries or their employees.

         6.27 LOCATION OF COLLATERAL.

         Set forth on Schedule 6.27(a) is a list of all Real Properties of a
Credit Party with street address, county and state or country where located. Set
forth on Schedule 6.27(b) is a list of all locations where any personal property
of a Credit Party is located, including county and state or country where
located. Set forth on Schedule 6.27(c) is the chief executive office and
principal place of business of each Credit Party. Schedule 6.27(a), Schedule
6.27(b) and Schedule 6.27(c) may be updated from time to time by the Borrower by
giving written notice thereof to the Administrative Agent.

         6.28 COLLATERAL DOCUMENTS.

         The Collateral Documents create valid security interests in, and Liens
on, the Collateral purported to be covered thereby, which security interests and
Liens are currently perfected security interests and Liens, prior to all other
Liens other than Permitted Liens.

         6.29 INSURANCE.

         Set forth on Schedule 6.29 is the present insurance coverage of the
Credit Parties and their Subsidiaries (outlined as to carrier, policy number,
expiration date, type and amount). Schedule 6.29 may be updated from time to
time by the Borrower by giving written notice thereof to the Administrative
Agent.

         6.30 REPRESENTATIONS AND WARRANTIES FROM MERGER AGREEMENT.

         Each of the representations and warranties made in the Merger Agreement
by each of the parties thereto is true and correct in all material respects on
and as of the Closing Date except to the extent they relate to an earlier date.

         6.31 IMMUNITY.

         None of the Credit Parties nor any of their respective properties has
any immunity from jurisdiction of any court or from set-off or any legal process
(whether through service or notice,

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attachment prior to judgment, attachment in aid of execution, execution or
otherwise) under the laws of the jurisdiction of its organization, formation or
incorporation.

         6.32 PROPER LEGAL FORM.

         Each Credit Document to which a Foreign Credit Party is a party is in
proper legal form under the law of the jurisdiction in which such Foreign Credit
Party is organized, formed or incorporated for the enforcement thereof against
such Credit Party under the law of such jurisdiction. To ensure the legality,
validity, enforceability or admissibility in evidence of each such Credit
Document in such jurisdiction, it is not necessary that any such Credit Document
or any other document be filed or recorded with any court or other authority of
such jurisdiction or that any stamp or similar tax be paid on or in respect of
any such Credit Document.

         6.33 MATERIAL CONTRACTS.

         Set forth on Schedule 6.33 is a list of all Material Contracts.
Schedule 6.33 may be updated from time to time by the Borrower giving written
notice thereof to the Administrative Agent.

                                    SECTION 7
                              AFFIRMATIVE COVENANTS

         Each Credit Party hereby covenants and agrees that so long as this
Credit Agreement is in effect and until the Loans and LOC Obligations, together
with interest and fees hereunder, have been paid in full and the Commitments and
Letters of Credit hereunder shall have terminated:

         7.1 INFORMATION COVENANTS.

         The Borrower will furnish, or cause to be furnished, to the
Administrative Agent and each of the Lenders:

                  (a) Annual Financial Statements.

                           (i) As soon as available, and in any event within 90
                  days after the close of each fiscal year of the Borrower, (A)
                  a consolidated balance sheet and income statement of the
                  Credit Parties and their Subsidiaries, as of the end of such
                  fiscal year, together with related consolidated statements of
                  operations and retained earnings and of cash flows for such
                  fiscal year, setting forth in comparative form consolidated
                  figures for the preceding fiscal year, all such financial
                  information described above to be in form and detail
                  reasonably acceptable to the Administrative Agent and the
                  Required Lenders and audited (with respect to consolidated
                  financial statements only) by Arthur Andersen LLP or such
                  other independent certified public accountants of recognized
                  national standing reasonably acceptable to the Administrative
                  Agent and the Required Lenders and whose opinion shall be to
                  the effect that such financial statements

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                  have been prepared in accordance with GAAP (except for changes
                  with which such accountants concur) and shall not be limited
                  as to the scope of the audit or qualified in any manner and
                  (B) additional financial statements regarding the U.S.
                  operations, the European operations and the German operations
                  of the Credit Parties and their Subsidiaries, in form and
                  substance reasonably acceptable to the Lenders.

                           (ii) As soon as available, but in any event no later
                  than 30 days after the Closing Date, a consolidated balance
                  sheet and income statement of May Verpackungen and its
                  Subsidiaries, as of the end of the fiscal years ended March
                  31, 1998 and 1999 and the nine months ended December 31, 1999,
                  together with related consolidated statements of operations
                  and retained earnings and of cash flows for such fiscal years,
                  setting forth in comparative form consolidated figures for the
                  fiscal year preceding each such fiscal year, all such
                  financial information described above to be in form and detail
                  reasonably acceptable to the Administrative Agent and the
                  Required Lenders and (A) with respect to the nine month period
                  ended December 31, 1999, audited (with respect to consolidated
                  financial statements only) by independent certified public
                  accountants of recognized national standing reasonably
                  acceptable to the Administrative Agent and the Required
                  Lenders and whose opinion shall be to the effect that such
                  financial statements have been prepared in accordance with
                  generally accepted accounting principles in effect in Germany
                  (except for changes with which such accountants concur) and
                  shall not be limited as to the scope of the audit or qualified
                  in any manner and (B) with respect to fiscal years 1998 and
                  1999, prepared by (but not audited by) the German independent
                  auditors who prepared such statements.

                  (b) Quarterly Financial Statements. As soon as available, and
         in any event within 45 days after the close of the first three fiscal
         quarters of each fiscal year of the Borrower, a consolidated balance
         sheet and income statement of the Credit Parties and their
         Subsidiaries, as of the end of such fiscal quarter, together with
         related consolidated statements of operations and retained earnings and
         of cash flows for such fiscal quarter in each case setting forth in
         comparative form consolidated and consolidating figures for (i) the
         corresponding period of the preceding fiscal year and (ii) the most
          recent budget delivered pursuant to Section 7.1(e), all such financial
         information described above to be in form and detail reasonably
         acceptable to the Administrative Agent and the Required Lenders, and
         accompanied by a certificate of the chief financial officer of the
         Borrower to the effect that such quarterly financial statements fairly
         present in all material respects the financial condition of the Credit
         Parties and their Subsidiaries and have been prepared in accordance
         with GAAP, subject to changes resulting from audit and normal year-end
         audit adjustments.

                  (c) Monthly Financial Statements. As soon as available, and in
         any event within 30 days after the end of each month (except for the
         month of December for which monthly statements shall be delivered no
         later than 45 days after the end of such month), (i) internal
         consolidated financial statements of the Credit Parties and their
         Subsidiaries,

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         as of the end of such month, all such financial information to be in
         form and detail reasonably acceptable to the Administrative Agent and
         the Required Lenders, together with related financial statements
         setting forth in comparative form figures for (A) the corresponding
         month of the preceding year and (B) the most recent budget delivered
         pursuant to Section 7.1(e), (ii) additional financial statements
         regarding the U.S. operations, the European operations and the German
         operations of the Credit Parties and their Subsidiaries in form and
         substance acceptable to the Lenders and (iii) summary financial
         information as to Foreign Subsidiary Borrowers and their Subsidiaries
         (and direct and indirect foreign parents) as may be reasonably
         requested by the Administrative Agent.

                  (d) Officer's Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of the chief financial officer of the Borrower
         substantially in the form of Exhibit 7.1(d) (each an "Officer's
         Compliance Certificate"), (i) demonstrating compliance with the
         financial covenants contained in Section 7.11 by calculation thereof as
         of the end of each such fiscal period, (ii) calculating the Leverage
         Ratio as of the end of such fiscal period and the Pricing Level for
         purposes of the definition of Applicable Percentage, (iii) setting
         forth the Debt Rating of the Borrower by S&P and Moody's, (iv)
         demonstrating compliance with any other terms of this Credit Agreement
         as reasonably requested by the Administrative Agent and (v) stating
         that no Default or Event of Default exists, or if any Default or Event
         of Default does exist, specifying the nature and extent thereof and
         what action the Borrower proposes to take with respect thereto.

                  (e) Annual Business Plan and Budgets. As soon as available,
         and in any event within 30 days after the beginning of each fiscal year
         of the Borrower, beginning with the fiscal year starting January 1,
         2001, an annual business plan and budget of the Credit Parties and
         their Subsidiaries on a consolidated basis containing, among other
         things, pro forma financial statements for such fiscal year, setting
         forth such projections on a monthly basis. The Borrower shall promptly
         deliver to the Administrative Agent any material changes made to the
         projections set forth in any such budget.

                  (f) Accountant's Certificate. Within the period for delivery
         of the annual financial statements provided in Section 7.1(a)(i), a
         certificate of the accountants conducting the annual audit stating that
         they have reviewed this Credit Agreement and stating further whether,
         in the course of their audit, they have become aware of any Default or
         Event of Default and, if any such Default or Event of Default exists,
         specifying the nature and extent thereof.

                  (g) Compliance With Certain Provisions of the Credit
         Agreement. Within 90 days after the end of each fiscal year of the
         Credit Parties, a certificate containing information regarding (i) the
         calculation of Excess Cash Flow and (ii) the Net Cash Proceeds received
         from all Asset Dispositions, Debt Issuances and Equity Issuances that
         were made during the prior fiscal year.

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                  (h) Auditor's Reports. Promptly upon receipt thereof, a copy
         of any "management letter" or similar report or communication by the
         auditors to the board of directors of a Credit Party or a committee
         thereof submitted or presented by independent accountants to a Credit
         Party or any of its Subsidiaries in connection with any annual, interim
         or special audit of the books of a Credit Party or any of its
         Subsidiaries.

                  (i) Reports. Promptly upon transmission or receipt thereof,
         (a) copies of any filings and registrations with, and reports to or
         from, the Securities and Exchange Commission, or any successor agency,
         and copies of all financial statements, proxy statements, notices and
         reports as a Credit Party or any of its Subsidiaries shall send to its
         shareholders generally or to a holder of the Subordinated Debt in its
         capacity as a holder and (b) upon the written request of the
         Administrative Agent, all reports and written information to and from
         the United States Environmental Protection Agency, or any state or
         local agency responsible for environmental matters, the United States
         Occupational Health and Safety Administration, or any state or local
         agency responsible for health and safety matters, or any successor
         agencies or authorities concerning environmental, health or safety
         matters.

                  (j) Notices. Upon a Credit Party obtaining knowledge thereof,
         such Credit Party will give written notice to the Administrative Agent
         immediately of (a) the occurrence of an event or condition consisting
         of a Default or Event of Default, specifying the nature and existence
         thereof and what action the Borrower proposes to take with respect
         thereto, and (b) the occurrence of any of the following with respect to
         a Credit Party or any of its Subsidiaries: (i) the pendency or
         commencement of any litigation, arbitral or governmental proceeding
         against a Credit Party or any of its Subsidiaries which if adversely
         determined would have or could be reasonably expected to have a
         Material Adverse Effect, or (ii) the institution of any proceedings
         against a Credit Party or any of its Subsidiaries with respect to, or
         the receipt of notice by such Person of potential liability or
         responsibility for violation, or alleged violation of any federal,
         state or local law, rule or regulation, including but not limited to,
         Environmental Laws, the violation of which would have or could be
         reasonably expected to have a Material Adverse Effect.

                  (k) ERISA. Upon a Credit Party or any ERISA Affiliate
         obtaining knowledge thereof, the Borrower will give written notice to
         the Administrative Agent and each of the Lenders promptly (and in any
         event within five Business Days) of: (i) any event or condition,
         including, but not limited to, any Reportable Event, that constitutes,
         or might reasonably lead to, a Termination Event; (ii) with respect to
         any Multiemployer Plan, the receipt of notice as prescribed in ERISA or
         otherwise of any material withdrawal liability assessed against a
         Credit Party or any of its ERISA Affiliates, or of a determination that
         any Multiemployer Plan is in reorganization or insolvent (both within
         the meaning of Title IV of ERISA) where any material liability has been
         imposed or could reasonably be expected to be imposed on a Credit Party
         or any ERISA Affiliate; (iii) the failure to make full payment on or
         before the due date (including extensions) thereof of all amounts which
         the Credit Party or any of its Subsidiaries or ERISA Affiliates is
         required to contribute to each Plan pursuant to its terms and as
         required to meet the minimum

                                       92
<PAGE>   99

         funding standard set forth in ERISA and the Code with respect thereto
         except such failure as would not or could not reasonably be expected to
         have a Material Adverse Effect; (iv) any change in the funding status
         of any Plan that could have a Material Adverse Effect; together with a
         description of any such event or condition or a copy of any such notice
         and a statement by the principal financial officer of the Credit Party
         briefly setting forth the details regarding such event, condition or
         notice, and the action, if any, which has been or is being taken or is
         proposed to be taken by the Credit Parties with respect thereto; or (v)
         the failure to pay any required contributions or payments to a Foreign
         Pension Plan or a Foreign Employee Benefit Plan on or before the due
         date for such required installment or payment except such failure as
         would not or could not reasonably be expected to have a Material
         Adverse Effect. Promptly upon request, the Credit Parties shall furnish
         the Administrative Agent and each of the Lenders with such additional
         information concerning any Plan, any Foreign Employee Benefit Plan or
         any Foreign Pension Plan as may be reasonably requested, including, but
         not limited to, copies of each annual report/return (Form 5500 series),
         as well as all schedules and attachments thereto required to be filed
         with the Department of Labor and/or the Internal Revenue Service
         pursuant to ERISA and the Code, respectively, for each "plan year"
         (within the meaning of Section 3(39) of ERISA).

                  (l) Environmental.

                           (i) Subsequent to a notice from any Governmental
                  Authority where the subject matter of such notice would have
                  or could reasonably be expected to have a Material Adverse
                  Effect or during the existence of an Event of Default, and
                  upon the written request of the Administrative Agent, the
                  Credit Parties will furnish or cause to be furnished to the
                  Administrative Agent, at the Credit Parties' expense, a report
                  of an environmental assessment of reasonable scope, form and
                  depth, including, where appropriate, invasive soil or
                  groundwater sampling, by a consultant reasonably acceptable to
                  the Administrative Agent addressing the subject of such notice
                  or, if during the existence of an Event of Default, regarding
                  any release or threat of release of Hazardous Materials on any
                  Real Property and the compliance by the Credit Parties with
                  Environmental Laws. If the Credit Parties fail to deliver such
                  an environmental assessment within sixty (60) days after
                  receipt of such written request, then the Administrative Agent
                  may arrange for same, and the Credit Parties hereby grant to
                  the Administrative Agent and its representatives access to the
                  Real Properties and a license of a scope reasonably necessary
                  to undertake such an assessment (including, where appropriate,
                  invasive soil or groundwater sampling). The reasonable cost of
                  any assessment arranged for by the Administrative Agent
                  pursuant to this provision will be payable by the Credit
                  Parties on demand and added to the obligations secured by the
                  Collateral Documents.

                           (ii) Each Credit Party will conduct and complete all
                  investigations, studies, sampling and testing and all
                  remedial, removal and other actions necessary to address all
                  Hazardous Materials on, from, or affecting any Real Property
                  of such Credit Party to the extent necessary to be in
                  compliance with all Environmental Laws and all other
                  applicable federal, state, and local laws, regulations, rules
                  and

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<PAGE>   100

                  policies and with the orders and directives of all
                  Governmental Authorities exercising jurisdiction over such
                  Real Property.

                  (m) Other Information. With reasonable promptness upon any
         such request, such other information regarding the business, properties
         or financial condition of the Credit Parties and their Subsidiaries, or
         information from officers of the Credit Parties and their Subsidiaries,
         as the Administrative Agent or any Lender may reasonably request.

         7.2 PRESERVATION OF EXISTENCE AND FRANCHISES.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to, do all things necessary to preserve and keep in full force and
effect its existence, rights, franchises and authority except as permitted by
Section 8.4.

         7.3 BOOKS AND RECORDS.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to, keep complete and accurate books and records of its
transactions in accordance with good accounting practices on the basis of GAAP
(including the establishment and maintenance of appropriate reserves) or, with
respect to Foreign Credit Parties and their Subsidiaries in such manner as is
reasonably acceptable to the Administrative Agent.

         7.4 COMPLIANCE WITH LAW.

         Each of the Credit Parties will, and will cause each of its
Subsidiaries to, comply in all material respects with all material laws, rules,
regulations and orders, and all applicable restrictions imposed by all
Governmental Authorities, applicable to it and its property (including, without
limitation, Environmental Laws).

         7.5 PAYMENT OF TAXES AND OTHER INDEBTEDNESS.

         Each of the Credit Parties will, and will cause its Subsidiaries to,
pay, settle or discharge (a) all taxes, assessments and governmental charges or
levies imposed upon it, or upon its income or profits, or upon any of its
properties, before they shall become delinquent, (b) all lawful claims
(including claims for labor, materials and supplies) which, if unpaid, might
give rise to a Lien upon any of its properties, and (c) except as prohibited
hereunder, all of its other Indebtedness as it shall become due; provided,
however, that a Credit Party or any of its Subsidiaries shall not be required to
pay any such tax, assessment, charge, levy, claim or Indebtedness which is being
contested in good faith by appropriate proceedings and as to which adequate
reserves therefor have been established in accordance with GAAP, unless the
failure to make any such payment (i) could give rise to an immediate right to
foreclose on a Lien securing such amounts or (ii) would have or could be
reasonably expected to have a Material Adverse Effect.

                                       94
<PAGE>   101

         7.6 INSURANCE/CONDEMNATION.

                  (a) Each of the Credit Parties will, and will cause each of
         its Subsidiaries to, at all times maintain in full force and effect
         insurance (including worker's compensation insurance, liability
         insurance, casualty insurance and business interruption insurance) in
         such amounts, covering such risks and liabilities and with such
         deductibles or self-insurance retentions as are in accordance with
         normal industry practice. All liability policies shall name the
         Administrative Agent, on behalf of the Lenders, as an additional
         insured and all casualty policies shall name the Administrative Agent,
         on behalf of the Lenders, as loss payee, for amounts in excess of
         $1,000,000, and each provider of any such insurance shall agree, by
         endorsement upon the policy or policies issued by it or by independent
         instruments furnished to the Administrative Agent, that it will give
         the Administrative Agent thirty (30) days prior written notice before
         any such policy or policies shall be altered or canceled.

                  (b) In the event there occurs (i) any material loss, damage to
         or destruction of any property of a Credit Party or any part thereof or
         (ii) the taking of any property of a Credit Party as a result of
         condemnation proceedings, such Credit Party shall promptly give written
         notice thereof to the Administrative Agent generally describing the
         nature and extent of such damage, destruction or condemnation
         proceedings, as the case may be. Subsequent to (A) any loss, damage to
         or destruction of any property of a Credit Party or any part thereof,
         or (B) the taking of any property of a Credit Party by condemnation,
         such Credit Party, whether or not the insurance or condemnation
         proceeds, if any, received on account of such damage, destruction or
         taking of property shall be sufficient for that purpose, at such Credit
         Party's cost and expense, will, subject to clause (d) below, promptly
         repair or replace the property of such Credit Party so lost, damaged,
         destroyed or taken; provided, however, that such Credit Party need not
         repair or replace the property of such Credit Party so lost, damaged,
         destroyed or taken to the extent the failure to make such repair or
         replacement (a) is desirable to the proper conduct of the business of
         such Credit Party in the ordinary course and otherwise is in the best
         interest of such Credit Party and (b) would not materially impair the
         rights and benefits of the Administrative Agent or the Lenders under
         this Credit Agreement or any other Credit Document.

                  (c) The Administrative Agent is authorized, but not obligated,
         as the attorney-in-fact of each of the Credit Parties and for the
         benefit of the Lenders, upon the occurrence and during the continuance
         of an Event of Default, without the consent of the applicable Credit
         Party, (i) to reasonably adjust and compromise proceeds payable under
         such insurance policies or condemnation proceedings, (ii) to collect,
         receive and give receipts for any insurance proceeds or condemnation
         proceeds in the name of such Credit Party, the Administrative Agent and
         the Lenders and (iii) to endorse such Credit Party's name upon any
         instrument in payment thereof.

                  (d) In the event a Credit Party shall receive any insurance or
         condemnation proceeds, as a result of any loss, damage, destruction or
         taking of property, in a net amount in excess of $1,000,000, such
         Credit Party will immediately pay over such proceeds to the Collateral
         Agent as cash collateral for the Domestic Credit Party Obligations or
         the Foreign

                                       95
<PAGE>   102

         Credit Party Obligations, as applicable. The Collateral Agent agrees to
         release such insurance proceeds to such Credit Party for replacement or
         restoration of the portion of the Collateral or property of such Credit
         Party lost, damaged, destroyed or taken if (A) within 180 days from the
         date the Collateral Agent receives such insurance or condemnation
         proceeds, the Collateral Agent has received written application for
         such release from such Credit Party together with evidence reasonably
         satisfactory to it that the Collateral or property lost, damaged,
         destroyed or taken has been or will be replaced or restored to its
         condition (or by Collateral or property having a value at least equal
         to the condition of the asset subject to the loss, damage, destruction
         or taking) immediately prior to the loss, destruction or other event
         giving rise to the payment of such insurance or condemnation proceeds
         and (B) on the date of such release no Default or Event of Default
         exists. If the conditions in the preceding sentence are not met, the
         Collateral Agent shall, on the first Business Day subsequent to the
         date 180 days after it received such insurance or condemnation
         proceeds, apply such insurance or condemnation proceeds as a mandatory
         prepayment of the Credit Party Obligations for application in
         accordance with the terms of Section 3.3(b)(ii) and Section 3.3(c). All
         insurance and condemnation proceeds shall be subject to the security
         interest of the Lenders under the Collateral Documents.

         7.7 MAINTENANCE OF PROPERTY.

         Each of the Credit Parties will, and will cause its Subsidiaries to,
maintain and preserve its properties and equipment in good repair, working order
and condition, normal wear and tear excepted, and will make, or cause to be
made, in such properties and equipment from time to time all repairs, renewals,
replacements, extensions, additions, betterments and improvements thereto as may
be needed or proper, to the extent and in the manner customary for companies in
similar businesses except for property disposed of in accordance with the terms
of this Agreement.

         7.8 PERFORMANCE OF OBLIGATIONS.

         Each of the Credit Parties will, and will cause its Subsidiaries to,
perform in all respects all of its obligations under the terms of all Material
Contracts and all other agreements, indentures, mortgages, security agreements,
leases or debt instruments to which it is a party or by which it is bound if the
failure to perform would have or could be reasonably expected to have a Material
Adverse Effect.

         7.9 USE OF PROCEEDS.

         The Borrower will use the proceeds of the Loans solely (a) to finance a
portion of the costs of the Transaction, including premiums, fees and expenses
incurred in connection therewith in an amount not to exceed $50,000,000 and (b)
to provide for working capital and general corporate purposes of the Borrower
and its Subsidiaries (including Permitted Acquisitions). The Borrower will use
the Letters of Credit solely for the purposes set forth in Section 2.2(a).

                                       96
<PAGE>   103

         7.10 AUDITS/INSPECTIONS.

         Upon reasonable notice and during normal business hours the Credit
Parties will, and will cause their Subsidiaries to, permit representatives
appointed by the Administrative Agent, including, without limitation,
independent accountants, agents, attorneys and appraisers to visit and inspect
each Credit Party's (or its Subsidiary's) property, including its books and
records, its accounts receivable and inventory, its facilities and its other
business assets, and to make photocopies or photographs thereof and to write
down and record any information such representative obtains and shall permit the
Administrative Agent or its representatives to investigate and verify the
accuracy of information provided to the Lenders and to discuss all such matters
with the officers, employees and representatives of the Credit Parties and their
Subsidiaries. The Credit Parties agree that the Administrative Agent or the
Collateral Agent may conduct such audits and collateral reviews, at the Credit
Parties' expense, as it deems appropriate; provided that absent an Event of
Default such audits and collateral reviews may not be conducted more than twice
a year.

         7.11 FINANCIAL COVENANTS.

                  (a) Leverage Ratio. The Leverage Ratio, as of the end of each
         fiscal quarter of the Borrower during the periods set forth below,
         shall be less than or equal to:

<TABLE>
<CAPTION>
        PERIOD                                                                  RATIO
<S>                                                                             <C>
        From the Effective Date to July 1, 2001                                 4.95 to 1.0
        From July 2, 2001 to December 31, 2001                                  4.75 to 1.0
        From January 1, 2002 to June 30, 2002                                   4.50 to 1.0
        From July 1, 2002 to December 31, 2002                                  4.25 to 1.0
        From January 1, 2003 to June 29, 2003                                   4.00 to 1.0
        From June 30, 2003 to December 31, 2003                                 3.75 to 1.0
        From January 1, 2004 and thereafter                                     3.50 to 1.0
</TABLE>

                  (b) Interest Coverage Ratio. The Interest Coverage Ratio, as
         of the end of each fiscal quarter of the Borrower during the periods
         set forth below, shall be greater than or equal to:

<TABLE>
<CAPTION>
        PERIOD                                                                  RATIO
<S>                                                                             <C>
        From the Effective Date to July 1, 2001                                 1.80 to 1.0
        From July 2, 2001 to December 31, 2001                                  1.85 to 1.0
        From January 1, 2002 to June 30, 2002                                   1.90 to 1.0
        From July 1, 2002 to September 29, 2002                                 2.00 to 1.0
        From September 30, 2002 to June 29, 2003                                2.10 to 1.0
        From June 30, 2003 to April 3, 2004                                     2.25 to 1.0
        From April 4, 2004 to December 31, 2004                                 2.40 to 1.0
        From January 1, 2005 to October 2, 2005                                 2.50 to 1.0
        From October 3, 2005 and thereafter                                     2.75 to 1.0
</TABLE>

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<PAGE>   104

                  (c) Fixed Charge Coverage Ratio. The Fixed Charge Coverage
         Ratio, as of the end of each fiscal quarter of the Borrower during the
         periods set forth below, shall be greater than or equal to:

<TABLE>
<CAPTION>
        PERIOD                                                                  RATIO
<S>                                                                             <C>
        From the Effective Date to December 31, 2001                             1.0 to 1.0
        From January 1, 2002 to December 31, 2002                               1.05 to 1.0
        From January 1, 2003 to December 31, 2003                               1.10 to 1.0
        From January 1, 2004 to December 31, 2004                               1.05 to 1.0
        From January 1, 2005 and thereafter                                     1.10 to 1.0
</TABLE>

                  (d) Minimum EBITDA. EBITDA, as of the end of each fiscal
         quarter of the Borrower, for the twelve month period ending on such
         date, during the periods set forth below, shall be greater than or
         equal to:

<TABLE>
<CAPTION>
        PERIOD                                                                  MINIMUM EBITDA
<S>                                                                             <C>
        From the Effective Date to December 31, 2001                            $100,000,000
        From January 1, 2002 to September 29, 2002                              $105,000,000
        From September 30, 2002 to July 4, 2004                                 $110,000,000
        From July 5, 2004 and thereafter                                        $115,000,000
</TABLE>

         7.12 COLLATERAL.

         If, subsequent to the Closing Date, a Credit Party shall (a) acquire or
lease any real property or (b) acquire any intellectual property, securities,
instruments or other personal property required to be delivered to the
Collateral Agent as Collateral hereunder or under any of the Collateral
Documents, the Borrower shall notify the Collateral Agent of same when it
delivers its next Officer's Compliance Certificate. Each Credit Party shall take
such action, as reasonably requested by the Collateral Agent and at its own
expense, to ensure that the Collateral Agent has a first priority perfected Lien
in all owned real property and all personal property of the Credit Parties
(whether now owned or hereafter acquired), subject only to Permitted Liens. Such
actions to be required by the Collateral Agent may include, but are not limited
to, delivery of mortgages, real estate title insurance policies, surveys, flood
certificates, zoning certificates (to the extent there is no zoning endorsement
provided by a title policy), environmental reports, valuations, UCC financing
statements, patent, trademark or copyright filings and legal opinions with
respect thereto. Upon the request of the Collateral Agent, the Borrower shall
provide such information as to the location of the personal property of the
Credit Parties as reasonably requested by the Collateral Agent. Each Credit
Party shall adhere to the covenants regarding the location of personal property
as set forth in the Collateral Documents.

         7.13 ADDITIONAL CREDIT PARTIES.

                  (a) At the time any Person becomes a direct Subsidiary of a
         Domestic Credit Party, the Borrower shall so notify the Administrative
         Agent and promptly thereafter (but in any event within 30 days after
         the date thereof) shall (i) cause such Person (if it is a Domestic
         Subsidiary) to execute a Joinder Agreement in substantially the same
         form as

                                       98
<PAGE>   105

         Exhibit 7.13(a), (ii) (A) cause all of the Capital Stock of such Person
         (if such Person is a Domestic Subsidiary) or 65% of the Capital Stock
         of such Person (if such Person is a direct Foreign Subsidiary owned by
         a Domestic Credit Party) to be delivered to the Collateral Agent
         (together with undated stock powers signed in blank) and pledged to the
         Collateral Agent pursuant to an appropriate pledge agreement in
         substantially the form of the Pledge Agreement and otherwise in a form
         acceptable to the Collateral Agent, (B) if such Person is a Domestic
         Subsidiary, pledge all of its assets to the Lenders pursuant to a
         security agreement in substantially the form of the Security Agreement
         and otherwise in a form acceptable to the Collateral Agent, (C) if such
         Person is a Domestic Subsidiary and has any Subsidiaries, (1) deliver
         all of the Capital Stock of such Person's Domestic Subsidiaries and 65%
         of the Capital Stock of such Person's direct Foreign Subsidiaries
         (together with undated stock powers signed in blank) to the Collateral
         Agent and (2) execute a pledge agreement in substantially the form of
         the Pledge Agreement and otherwise in a form acceptable to the
         Collateral Agent, (D) if such Person is a Domestic Subsidiary and owns
         in fee any real property in the United States of America, execute any
         and all necessary mortgages, deeds of trust, deeds to secure debt or
         other appropriate real estate collateral documentation in a form
         substantially similar to the Mortgages, as the case may be, with
         appropriate covenants as necessary and (E) deliver such other
         documentation as the Collateral Agent may reasonably request in
         connection with the foregoing, including, without limitation,
         appropriate UCC-1 financing statements, real estate title insurance
         policies, environmental reports and landlord waivers, and (iii) cause
         such Person to deliver certified resolutions and other organizational
         and authorizing documents of such Person and opinions of counsel to
         such Person (which shall cover, among other things, the legality,
         validity, binding effect and enforceability of the documentation
         referred to above); it being understood that all of the documentation,
         agreements, instruments, certificates and opinions to be delivered
         pursuant to (i), (ii) and (iii) above shall be in form, content and
         scope reasonably satisfactory to the Collateral Agent.

                  (b) At the time any Person becomes a Subsidiary of a Foreign
         Subsidiary Borrower (or a foreign parent, direct or indirect, of a
         Foreign Subsidiary Borrower) the Borrower shall so notify the
         Administrative Agent and promptly thereafter (but in any event within
         45 days after the date thereof) shall (i) cause such Person to execute
         a Foreign Guaranty Agreement with respect to the Foreign Currency Loans
         of the Foreign Subsidiary Borrower in question (ii) cause all of the
         Capital Stock of such Person to be delivered (if certificated) to the
         Collateral Agent (together with undated stock powers signed in blank)
         and pledged to the Collateral Agent pursuant to an appropriate pledge
         agreement in a form acceptable to the Collateral Agent, (iii) pledge
         all of its assets to the Lenders pursuant to a security agreement in a
         form acceptable to the Collateral Agent, (iv) if such Person has any
         Subsidiaries, (A) deliver all of the Capital Stock (if certificated) of
         such Subsidiaries (together with undated stock powers signed in blank)
         to the Collateral Agent and (B) execute a pledge agreement in a form
         acceptable to the Collateral Agent, (v) if such Person owns any real
         property, execute any and all necessary mortgage instruments or other
         appropriate real estate collateral documentation, with appropriate
         covenants as necessary, (vi) deliver such other documentation as the
         Collateral Agent may reasonably request in connection with the
         foregoing, and (vii) cause such Person to deliver certified resolutions
         and other organizational and authorizing documents of such Person and
         favorable opinions

                                       99
<PAGE>   106

         of counsel to such Person (which shall cover, among other things, the
         legality, validity, binding effect and enforceability of the
         documentation referred to above); it being understood that all of the
         documentation, agreements, instruments, certificates and opinions to be
         delivered shall be in form, content and scope reasonably satisfactory
         to the Collateral Agent and that all collateral documentation delivered
         pursuant to this subsection (b) shall be delivered to secure only the
         Foreign Currency Loans of the Foreign Subsidiary Borrower in question.

         7.14 THIRD PARTY CONSENTS.

         With respect to any property leased after the Closing Date or with
respect to any new locations after the Closing Date where a Credit Party may
store any single asset with a fair market value in excess of $100,000 or a group
of assets with a fair market value in excess of $500,000, upon the request of
the Collateral Agent, the Credit Parties will promptly (but in any event within
30 days of such request) use all reasonable efforts to provide the Collateral
Agent with such estoppel letters, consents and waivers from (a) landlords of
real property leased to a Credit Party, (b) warehousemen and (c) bailees as may
be reasonably requested by the Administrative Agent, which estoppel letters,
consents and waivers shall be in form and substance reasonably satisfactory to
the Collateral Agent.

         7.15 INTEREST RATE PROTECTION AGREEMENTS.

         The Borrower shall, within 60 days subsequent to the Closing Date,
enter into and maintain interest rate protection agreements, in form and
substance acceptable to the Agents, for a period expiring no earlier than 3
years from the date such interest rate protection agreements are purchased, and
in a notional amount of not less than $125,000,000.

         7.16 POST-CLOSING DELIVERIES.

                  (a) On or before October 31, 2000 (or such later date as
         approved by the Collateral Agent), the Collateral Agent shall have
         received (i) maps or plats of an as-built survey of the sites of the
         Mortgaged Properties certified to the Collateral Agent and the Title
         Insurance Company in a manner reasonably satisfactory to them, dated a
         date satisfactory to the Collateral Agent and the Title Insurance
         Company by an independent professional licensed land surveyor
         reasonably satisfactory to the Collateral Agent and the Title Insurance
         Company, which maps or plats and the surveys on which they are based
         shall be sufficient to delete any standard printed survey exception
         contained in the applicable title policy and be made in accordance with
         the Minimum Standard Detail Requirements for Land Title Surveys jointly
         established and adopted by the American Land Title Association and the
         American Congress on Surveying and Mapping in 1992, and, without
         limiting the generality of the foregoing, there shall be surveyed and
         shown on such maps, plats or surveys the following: (A) the locations
         on such sites of all the buildings, structures and other improvements
         and the established building setback lines; (B) the lines of streets
         abutting the sites and width thereof; (C) all access and other
         easements appurtenant to the sites necessary to use the sites; (D) all
         roadways, paths, driveways, easements, encroachments and overhanging
         projections and similar encumbrances affecting the site,

                                      100
<PAGE>   107

         whether recorded, apparent from a physical inspection of the sites or
         otherwise known to the surveyor; (E) any encroachments on any adjoining
         property by the building structures and improvements on the sites; and
         (F) if the site is described as being on a filed map, a legend relating
         the survey to said map; and (ii) an endorsement to the Mortgage
         Policies, acceptable to the Collateral Agent, reflecting the receipt of
         the surveys described in clause (i) above.

                  (b) On or before October 31, 2000 (or such later date as
         approved by the Collateral Agent), the Collateral Agent shall have
         received satisfactory evidence that each of the Mortgaged Properties,
         and the uses of the Mortgaged Properties, are in compliance in all
         material respects with all applicable laws, regulations and ordinances
         including, without limitation, health and environmental protection
         laws, erosion control ordinances, storm drainage control laws, doing
         business and/or licensing laws, zoning laws (the evidence submitted as
         to zoning should include the zoning designation made for each of the
         Mortgaged Properties, the permitted uses of each such Mortgaged
         Property under such zoning designation and zoning requirements as to
         parking, lot size, ingress, egress and building setbacks) and laws
         regarding access and facilities for disabled persons including, but not
         limited to, the federal Architectural Barriers Act, the Fair Housing
         Amendments Act of 1988, the Rehabilitation Act of 1973 and the
         Americans with Disabilities Act of 1990.

                  (c) The Borrower shall, within 180 days subsequent to the
         Closing Date, deliver to the Collateral Agent a fully executed and
         notarized Mortgage and the other documentation referenced in Section
         5.1(f) and this Section 7.16 with respect to the property located at
         901 Ostend Street, Baltimore, Maryland, unless such property has been
         sold prior to such date.

                  (d) Within 45 days subsequent to the Closing Date, each loan
         or advance of funds from a Domestic Credit Party to a Foreign
         Subsidiary or a foreign Affiliate outstanding as of the Closing Date
         shall be evidenced by a promissory note duly executed by such Foreign
         Subsidiary or foreign Affiliate and payable to the order of such
         Domestic Credit Party, and such Domestic Credit Party shall deliver
         such promissory note to the Collateral Agent, together with such
         endorsements as requested by the Collateral Agent.

                                    SECTION 8
                               NEGATIVE COVENANTS

         Each Credit Party hereby covenants and agrees that so long as this
Credit Agreement is in effect and until the Loans and LOC Obligations, together
with interest and fees hereunder, have been paid in full and the Commitments and
Letters of Credit hereunder shall have terminated:

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<PAGE>   108

         8.1      INDEBTEDNESS.

         No Credit Party will, nor will it permit any of its Subsidiaries to,
contract, create, incur, assume or permit to exist any Indebtedness, except:

                  (a) Indebtedness arising under this Credit Agreement and the
         other Credit Documents;

                  (b) Indebtedness existing as of the Closing Date and set forth
         on Schedule 8.1 (and renewals, refinancings, replacements or extensions
         thereof on terms and conditions when taken as a whole are no more
         restrictive to such Credit Party and its Subsidiaries and are not less
         favorable to the Lenders than such existing Indebtedness and in a
         principal amount not in excess of that outstanding as of the date of
         such renewal, refinancing, replacement or extension);

                  (c) Indebtedness in respect of current accounts payable,
         accrued expenses and deferred income taxes incurred in the ordinary
         course of business including, to the extent not current, accounts
         payable, accrued expenses and deferred income taxes that are subject to
         bona fide dispute;

                  (d) Indebtedness owing from (i) a Domestic Credit Party to
         another Domestic Credit Party, (ii) a Foreign Credit Party to another
         Foreign Credit Party, (iii) a Foreign Subsidiary (that is not a Foreign
         Credit Party) to another Foreign Subsidiary (that is not a Foreign
         Credit Party), (iv) from a Foreign Subsidiary that is not a Foreign
         Credit Party to a Foreign Credit Party in an amount not to exceed, in
         the aggregate at any one time, $10,000,000, and (v) a Foreign
         Subsidiary to a Domestic Credit Party if it constitutes a Permitted
         Investment;

                  (e) purchase money Indebtedness (including Capital Leases and
         Synthetic Leases) incurred by the Borrower or any of its Subsidiaries
         to finance the purchase of fixed assets within 90 days of the purchase
         of such fixed assets; provided that (i) the total of all such
         Indebtedness for all such Persons taken together shall not exceed (A)
         an aggregate principal amount of $20,000,000 at any one time
         outstanding and (B) when added together with the Indebtedness permitted
         by Sections 8.1(i) and 8.1(m), $40,000,000 in the aggregate, at any one
         time outstanding; (ii) such Indebtedness when incurred shall not exceed
         the purchase price of the asset(s) financed (including transaction and
         installation costs relating to the purchase); and (iii) no such
         Indebtedness shall be refinanced for a principal amount in excess of
         the principal balance outstanding thereon at the time of such
         refinancing;

                  (f) obligations under Hedging Agreements entered into in order
         to manage existing or anticipated interest rate or exchange rate risks
         and not for speculative purposes;

                  (g) Indebtedness arising from judgments that do not cause an
         Event of Default;

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                  (h) the Subordinated Debt (and renewals, refinancings,
         replacements or extensions thereof on terms and conditions that, when
         taken as a whole, are no more restrictive to such Credit Party and its
         Subsidiaries and are not less favorable to the Lenders than such
         existing Indebtedness and in a principal amount not in excess of that
         outstanding as of the date of such renewal, refinancing, replacement or
         extension);

                  (i) Indebtedness assumed in connection with a Permitted
         Acquisition; provided that (i) such Indebtedness was not incurred in
         anticipation thereof and (ii) such Indebtedness, in the aggregate, does
         not exceed (A) $25,000,000 at any one time outstanding and (B) when
         added together with the Indebtedness permitted by Sections 8.1(e) and
         8.1(m), $40,000,000, in the aggregate, at any one time outstanding;

                  (j) Indebtedness arising from agreements of the Borrower or a
         Subsidiary providing for indemnification, adjustment of purchase price,
         or other similar obligations (exclusive of any Guaranty Obligation of
         Indebtedness of the purchaser in such transaction), in each case,
         incurred or assumed in connection with the disposition of any business,
         assets or a Subsidiary of the Borrower; provided the maximum assumable
         liability in respect of all such Indebtedness shall at no time exceed
         the gross proceeds actually received by the Borrower and its
         Subsidiaries in connection with such disposition;

                  (k) obligations in respect of performance and surety bonds and
         completion guarantees provided in the ordinary course of business;

                  (l) Indebtedness of Foreign Subsidiaries (not incurred under
         this Agreement) in an amount not to exceed (i) $30,000,000 and (ii)
         when added together with Foreign Currency Loans shall not exceed, in
         the aggregate, $75,000,000 at any one time;

                  (m) Indebtedness owing to an officer or employee of a Credit
         Party (or the heirs of such Persons) whose employment has terminated or
         who has died or retired or become disabled in connection with the
         repurchase or redemption of shares, or options to purchase shares, of
         such Credit Party; provided that (i) such Indebtedness must be fully
         subordinated to the Credit Party Obligations on terms acceptable to the
         Administrative Agent and (ii) no payments may be made to a holder of
         such Indebtedness unless permitted by Section 8.7(b)(ii); and

                  (n) other unsecured Indebtedness not to exceed (i) $15,000,000
         in the aggregate at any one time outstanding and (ii) when added
         together with the Indebtedness permitted by Sections 8.1(e) and 8.1(i),
         $40,000,000, in the aggregate, at any one time outstanding.

         8.2 LIENS.

         No Credit Party will, nor will it permit its Subsidiaries to, contract,
create, incur, assume or permit to exist any Lien with respect to any of its
property or assets of any kind (whether real

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or personal, tangible or intangible), whether now owned or after acquired,
except for Permitted Liens.

         8.3 NATURE OF BUSINESS.

         No Credit Party will, nor will it permit its Subsidiaries to engage in
any business other than the business conducted as of the Closing Date and other
businesses reasonably related thereto.

         8.4 CONSOLIDATION AND MERGER.

         No Credit Party will, nor will it permit its Subsidiaries to, enter
into any transaction of merger or consolidation or liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution); provided that
notwithstanding the foregoing provisions of this Section 8.4, the following
actions may be taken if (a) the Administrative Agent is given prior written
notice of such action, and the Credit Parties execute and deliver such
documents, instruments, certificates and opinions as the Administrative Agent
may request, including, without limitation, those necessary in order to maintain
the perfection and priority of the Liens on the assets of the Credit Parties and
(b) after giving effect thereto no Default or Event of Default exists:

                  (i) any Domestic Credit Party may be merged or consolidated
         with or into another Domestic Credit Party; provided that (A) if the
         transaction is between the Parent or the Borrower and another Domestic
         Credit Party, the Parent or the Borrower, as applicable, must be the
         continuing or surviving entity and (B) the Parent and the Borrower may
         not be merged or consolidated with or into each other without the prior
         written consent of the Required Lenders; and

                  (ii) any Foreign Subsidiary may be merged or consolidated with
         or into another Foreign Subsidiary; provided that (A) if the
         transaction is between a Foreign Subsidiary that is not a Credit Party
         and a Foreign Credit Party, the Foreign Credit Party must be the
         continuing or surviving entity and (B) if the transaction is between a
         Foreign Subsidiary Borrower and another Foreign Subsidiary, the Foreign
         Subsidiary Borrower must be the continuing or surviving entity.

         8.5 SALE OR LEASE OF ASSETS.

         No Credit Party will, nor will it permit any of its Subsidiaries to,
convey, sell, lease, transfer or otherwise dispose of, in one transaction or a
series of transactions, all or any part of its business or assets whether now
owned or hereafter acquired, including, without limitation, inventory,
receivables, real property interests (whether owned or leasehold interests),
equipment and securities other than (a) any inventory sold or otherwise disposed
of in the ordinary course of business, (b) obsolete, idle or worn-out assets no
longer used or useful in its business, (c) the sale, lease or transfer or other
disposal by a Domestic Credit Party (other than the Parent or the Borrower) of
any or all of its assets to another Domestic Credit Party so long as (i) the
Domestic Credit Parties shall cause to be executed and delivered such documents,
instruments and certificates as the Collateral Agent may request in order to
maintain the perfection and priority of

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the Collateral Agent's Liens on the assets of the Domestic Credit Parties as
required by Section 7.12 and 7.13, (ii) after giving effect to such transaction,
no Default or Event of Default exists and (iii) the Borrower shall give the
Administrative Agent at least 30 days' prior written notice of such sale, lease,
transfer or other disposal, (d) the sale, lease or transfer or other disposal by
a Foreign Subsidiary (other than any Foreign Subsidiary Borrower) of any or all
of its assets to a Foreign Credit Party so long as (i) the Foreign Credit
Parties shall cause to be executed and delivered such documents, instruments and
certificates as the Collateral Agent may request in order to maintain the
perfection and priority of the Collateral Agent's Liens on the assets of the
Foreign Credit Parties as required by Section 7.12 and 7.13, (ii) after giving
effect to such transaction, no Default or Event of Default exists and (iii) the
Borrower shall give the Administrative Agent at least 30 days' prior written
notice of such sale, lease, transfer or other disposal, (e) the sale, lease or
transfer or other disposal by a Foreign Subsidiary that is not a Credit Party to
another Foreign Subsidiary, (f) the sale or other dispositions of Cash
Equivalents for Fair Market Value, (g) the transfer of assets which constitute a
Permitted Investment, (h) the sale of the property located at 901 Ostend Street,
Baltimore, Maryland and (i) other sales of assets, in addition to those
permitted above in this Section 8.5; provided that (i) the transfer is for Fair
Market Value, (ii) no Default or Event of Default exists either prior to or
after giving effect thereto, (iii) at least 75% of the consideration received
for such transfer is in cash, (iv) the proceeds of such transfer are within 270
days of such transfer (A) reinvested in Eligible Assets or (B) applied as a
mandatory prepayment in accordance with Section 3.3(b)(ii) and (v) such
transfers do not exceed (A) $10,000,000 during any one fiscal year or (B)
$40,000,000, in the aggregate, during the term of this Credit Agreement.

         Upon a sale of assets permitted by this Section 8.5, the Collateral
Agent shall deliver to the Borrower, upon the Borrower's request and at the
Borrower's expense, such documentation as is reasonably necessary to evidence
the release of the Collateral Agent's security interest in such assets,
including, without limitation, amendments or terminations of UCC financing
statements and the return of stock certificates.

         8.6 ADVANCES, INVESTMENTS AND LOANS.

         No Credit Party will, nor will it permit any of its Subsidiaries to,
make any Investments except for Permitted Investments.

         8.7 RESTRICTED PAYMENTS.

         No Credit Party will, nor will it permit any of its Subsidiaries to,
directly or indirectly, (a) declare or pay any dividends or make any other
distribution upon any shares of its Capital Stock of any class (other than
dividends payable solely in Capital Stock) or (b) purchase, redeem or otherwise
acquire or retire or make any provisions for redemption, acquisition or
retirement of any shares of its Capital Stock of any class or any warrants or
options to purchase any such shares; provided that (i) any Subsidiary of the
Borrower may pay dividends to its parent or the Borrower, (ii) any Credit Party
may repurchase or redeem shares of, or options to purchase shares of , Capital
Stock of such Credit Party or stock appreciation rights from officers and
employees (or the heirs of such Persons) of such Credit Party whose employment
has terminated or who have died or retired or become disabled or upon the
vesting of stock appreciation rights,

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so long as the aggregate amount of such payments in any fiscal year does not
exceed the sum of (A) $2.5 million plus (B) the proceeds of any "key man" life
insurance policies purchased by such Credit Party for the specific purpose of
making such repurchases or redemptions; it being understood that the
cancellation of Indebtedness owed by management to such Credit Party in
connection with such repurchase or redemption shall not be restricted by this
Section 8.7; (iii) any Credit Party may make repurchases of Capital Stock deemed
to occur upon the exercise of employee stock options if such Capital Stock is
surrendered in lieu of the exercise price thereof; and (iv) the Borrower may pay
dividends or otherwise advance amounts to the Parent in amounts equal to (A) the
amounts required for the Parent to pay any federal, state or local income taxes
to the extent that such income taxes are attributable to the income of the
Borrower and its Subsidiaries, (B) the amounts required for the Parent to pay
franchise taxes and other fees required to maintain its legal existence, (C) an
amount not to exceed $200,000 in any fiscal year to permit the Parent to pay
corporate overhead expenses incurred in the ordinary course of business; (D) the
amount required to enable the Parent, on the Closing Date, to repay its 10 1/8%
Notes (and any premium in connection therewith) and to enable the Parent to make
the payments as contemplated by the Merger Agreement; and (E) reasonable and
customary costs and expenses incident to a public offering of the common stock
of the Parent to the extent that the proceeds therefrom are intended to be
contributed to the Borrower.

         8.8 TRANSACTIONS WITH AFFILIATES.

         No Credit Party will, nor will it permit its Subsidiaries to, enter
into any transaction or series of transactions, whether or not in the ordinary
course of business, with any officer, director, shareholder, Subsidiary or
Affiliate other than (a) on terms and conditions substantially as favorable as
would be obtainable in a comparable arm's-length transaction with a Person other
than an officer, director, shareholder, Subsidiary or Affiliate, (b) with
respect to a transaction or series of transactions involving aggregate payments
or value in excess of $3,000,000, the Board of Directors of the Borrower
(including a majority of the Disinterested Directors) approves such transaction
or series of transactions and (c) with respect to a transaction or series of
transactions involving aggregate payments or value in excess of $15,000,000, the
Borrower shall, prior to the consummation thereof, obtain a written opinion of a
nationally recognized accounting, appraisal or investment banking firm stating
that the transaction is not less favorable than might reasonably be obtained at
such time in a comparable arm's-length transaction with an unrelated third
party.

         The provisions of this Section 8.8 shall not limit (i) any payment
permitted by Section 8.7, (ii) any issuance of securities, 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 (including a majority of the Disinterested
Directors), (iii) any transaction pursuant to any contract in existence on the
Closing Date or any amendment or replacement thereof that, taken in its
entirety, is no less favorable to the Borrower than the agreement as in effect
on the Closing Date, (iv) loans or advances to employees in the ordinary course
of business of such Credit Party, not to exceed $1.0 million per employee and
$3.0 million in the aggregate, (v) the payment of indemnities provided for in
such Credit Party's charter and by-laws and reasonable fees to directors of the
Credit Parties who are not employees of the Credit Parties, (vi) any transaction
between or among Credit Parties, (vii)

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payments to SSB and its Affiliates for investment banking or other financial
services in the ordinary course and not to exceed usual and customary market
rates, (viii) fees, compensation, and indemnities under employment arrangements
entered into by such Credit Party in the ordinary course of business, and (ix)
issuance of Capital Stock of such Credit Party and the granting of registration
rights with respect thereto.

         8.9 FISCAL YEAR; ORGANIZATIONAL DOCUMENTS.

         No Credit Party will, nor will it permit its Subsidiaries to, (a)
change its fiscal year or (b) change its articles or certificate of
incorporation, operating agreement, articles of organization, bylaws,
partnership agreement or other charter or organizational documents in any way
that is adverse to the Lenders.

         8.10 OTHER INDEBTEDNESS; MATERIAL AGREEMENTS.

                  (a) No Credit Party will, nor will it permit any of its
         Subsidiaries to, after the issuance thereof, amend or modify any of the
         terms of any Indebtedness (other than Indebtedness arising under the
         Credit Documents or any Hedging Agreement) of such Credit Party or its
         Subsidiaries if such amendment or modification, when taken as a whole,
         would add or change any terms in a manner adverse to such Credit Party
         or its Subsidiaries or to the interest of the Lenders, or shorten the
         final maturity or average life to maturity or require any payment to be
         made sooner than originally scheduled or increase the interest rate
         applicable thereto.

                  (b) No Credit Party will, nor will it permit any of its
         Subsidiaries to, (i) make or offer to make any principal payments with
         respect to the Subordinated Debt, (ii) redeem or offer to redeem any of
         the Subordinated Debt, (iii) deposit any funds intended to discharge or
         defease any of the Subordinated Debt; (iv) make interest payments
         (including payment of accrued interest and premium, if any, payable in
         connection with a redemption of the Subordinated Securities permitted
         under this Section 8.10) in respect of the Subordinated Debt in
         violation of the subordination provisions of the Subordinated Loan
         Documents or (v) modify or amend the terms of the Subordinated Debt in
         any manner adverse to the Lenders.

         8.11 LIMITATIONS.

         No Credit Party will, nor will it permit any of its Subsidiaries to,
directly or indirectly, create or otherwise cause, incur, assume, suffer or
permit to exist or become effective any consensual encumbrance or restriction of
any kind on the ability of any such Person to (a) (i) pay dividends or make any
other distribution on any of such Person's Capital Stock, (ii) pay any
Indebtedness owed to the Borrower or any other Credit Party, (iii) make loans or
advances to any Credit Party or (iv) transfer any of its property to any Credit
Party, except for encumbrances or restrictions existing under or by reason of
(A) customary non-assignment or net worth provisions in any lease governing a
leasehold interest or customary provisions in documents evidencing the
transactions permitted by Section 8.1(e), (B) any agreement or other instrument
of a Person existing at the time it becomes a Subsidiary of a Credit Party;
provided that such encumbrance or

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restriction is not applicable to any other Person, or any property of any other
Person, other than such Person becoming a Subsidiary of a Credit Party and was
not entered into in contemplation of such Person becoming a Subsidiary of such
Credit Party, (C) this Credit Agreement and the other Credit Documents, (D) the
Subordinated Debt, (E) Requirements of Law, (F) encumbrances or restrictions in
effect on the Closing Date as set forth on Schedule 8.11, (G) encumbrances which
result from the renewal, refinancing, extension or amendment of any of the
foregoing; provided such encumbrances or restrictions when taken as a whole are
no more restrictive to such Credit Party or its Subsidiaries and are not less
favorable to the Lenders than those under or pursuant to the agreement so
renewed, refinanced, extended or amended, or, with respect to clause (iv) above
only, (1) any encumbrance or restriction related to Permitted Indebtedness and
Permitted Liens that limits the right of the debtor to dispose of the assets or
property securing such Indebtedness, (2) any encumbrance or restriction in
connection with an acquisition of property, so long as such encumbrance or
restriction relates solely to the property so acquired and was not created in
connection with or in anticipation of such acquisition, (3) customary
non-assignment and non-transfer provisions in leases, contracts or licenses
entered into in the ordinary course of business, (4) customary restrictions
contained in asset sale agreements limiting the transfer of such assets pending
the closing of such sale, (5) Permitted Liens and restrictions in the agreements
creating such Permitted Liens, (6) any agreement or instrument governing
Indebtedness permitted to be incurred by a Foreign Subsidiary, and (7) any
amendments to the foregoing that when taken as a whole are not more restrictive
than those contained in the agreement being amended, or (b) repay or prepay the
Loans and other Credit Party Obligations or to perform its obligations hereunder
and under the other Credit Documents.

         8.12 SALE LEASEBACKS.

         Other than as set forth below, no Credit Party will, nor will it permit
its Subsidiaries to, directly or indirectly become or remain liable as lessee or
as guarantor or other surety with respect to any lease of any property (whether
real or personal or mixed), whether now owned or hereafter acquired, (a) which
such Credit Party or its Subsidiary has sold or transferred or is to sell or
transfer to any other Person other than a Credit Party or (b) which such Credit
Party or its Subsidiary intends to use for substantially the same purpose as any
other property which has been sold or is to be sold or transferred by such
Credit Party to any Person in connection with such lease. Notwithstanding the
above, this Section shall not apply with respect to property purchased with the
express intent to sell it and lease it back (and such property is actually sold
and leased back within 90 days of the acquisition thereof).

         8.13 NEGATIVE PLEDGES.

         None of the Credit Parties will, nor will it permit any of its
Subsidiaries to, enter into, assume or become subject to any agreement
prohibiting or otherwise restricting the creation or assumption of any Lien upon
its properties or assets, whether now owned or hereafter acquired, or requiring
the grant of any security for such obligation if security is given for some
other obligation; other than, (a) the Indebtedness incurred or assumed, as
applicable, pursuant to Section 8.1(e) may restrict the creation of any
additional Liens on the assets securing such Indebtedness, (b) the Subordinated
Loan Documents may restrict the creation of any Liens on the assets of the
Credit Parties except for Liens created pursuant to the Credit Documents,

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(c) customary non-assignment or net worth provisions in any lease governing a
leasehold interest, (d) customary non-assignment and non-transfer provisions in
leases, contracts or licenses entered into in the ordinary course of business,
(e) encumbrances or restrictions on the Closing Date as set forth on Schedule
8.11 and (f) encumbrances which result from the renewal, refinancing, extension
or amendment of any of the foregoing; provided such encumbrances or restrictions
when taken as a whole are no more restrictive to such Credit Party or its
Subsidiaries and are not less favorable to the Lenders than those under or
pursuant to the agreement so renewed, refinanced, extended or amended.

         8.14 CAPITAL EXPENDITURES.

         The Credit Parties will not permit Capital Expenditures to exceed, in
the aggregate, $45,000,000 for any fiscal year; provided that the Credit Parties
may carry forward, for one year only, up to $15,000,000 of any unused Capital
Expenditures from the prior year.

         8.15 PARENT.

         The Parent will not engage in any business activity or operation other
than (a) owning and holding the Capital Stock of the Borrower, (b) guaranteeing
the Credit Party Obligations and the obligations of the Borrower under the
Subordinated Loan Documents, (c) pledging all of its assets (including without
limitation the Capital Stock of the Borrower) to the Collateral Agent, on behalf
of the Lenders, pursuant to the Collateral Documents, (d) issuing equity
securities, (e) if applicable, preparing filings required by the Securities Act
or the Exchange Act, (f) preparing tax filings required by federal or state law,
(g) guarantees of obligations of Foreign Subsidiaries to the extent such
guarantees are permitted by the terms of this Credit Agreement, (h) incur
Indebtedness permitted by Section 8.1 (m), (i) repurchase or redeem Capital
Stock in accordance with Section 8.7(b) and (j) other miscellaneous legal, tax
and accounting activities related to the foregoing. Furthermore, the Parent will
not (i) sell, transfer or otherwise dispose of any shares of Capital Stock of
the Borrower, (ii) merge with or into any other Person, (iii) hold any assets
other than (A) the Capital Stock of the Borrower, and (B) such amounts allowed
to be transferred to the Parent pursuant to Section 8.7, or (iv) possess any
liabilities other than the liabilities under the Credit Documents, the
Subordinated Debt, tax liabilities and other liabilities in the ordinary course
of business.

         8.16 MANAGEMENT FEES.

         No Credit Party will, nor will it permit its Subsidiaries to, pay any
management or other fees to the Sponsor (excluding fees paid to the Sponsor on
the Closing Date) that, in the aggregate, exceed $750,000 during any fiscal
year.

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                                    SECTION 9
                                EVENTS OF DEFAULT

         9.1 EVENTS OF DEFAULT.

         An Event of Default shall exist upon the occurrence of any of the
following specified events (each an "Event of Default"):

                  (a) Payment. Any Credit Party shall:

                                    (i) default in the payment when due of any
                  principal of any of the Loans;

                                    (ii) default, and such default shall
                  continue for one or more Business Days, of any reimbursement
                  obligation arising from drawings under Letters of Credit; or

                                    (iii) default, and such default shall
                  continue for three or more Business Days, in the payment when
                  due of any interest on the Loans, or of any fees or other
                  amounts owing hereunder, under any of the other Credit
                  Documents or in connection herewith.

                  (b) Representations. Any representation, warranty or statement
         made or deemed to be made by any Credit Party herein, in any of the
         other Credit Documents, or in any statement or certificate delivered or
         required to be delivered pursuant hereto or thereto shall prove untrue
         in any material respect on the date as of which it was made or deemed
         to have been made.

                  (c) Covenants. Any Credit Party shall:

                                    (i) default in the due performance or
                  observance of any term, covenant or agreement contained in
                  Sections 7.2, 7.9, 7.11, 7.15 or 8.1 through 8.16, inclusive;
                  or

                                    (ii) default in the due performance or
                  observance by it of any term, covenant or agreement contained
                  in Sections 7.1 or 7.5 and such default shall continue
                  unremedied for a period of five Business Days after the
                  earlier of an executive officer of a Credit Party becoming
                  aware of such default or notice thereof given by the
                  Administrative Agent; or

                                    (iii) default in the due performance or
                  observance by it of any term, covenant or agreement (other
                  than those referred to in subsections (a), (b) or (c)(i) or
                  (ii) of this Section 9.1) contained in this Credit Agreement
                  and such default shall continue unremedied for a period of at
                  least 30 days after the earlier of an executive officer of a
                  Credit Party becoming aware of such default or notice thereof
                  given by the Administrative Agent.

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                  (d) Other Credit Documents. (i) Any Credit Party shall default
         in the due performance or observance of any term, covenant or agreement
         in any of the other Credit Documents and such default shall continue
         unremedied for a period of at least 30 days after the earlier of an
         executive officer of a Credit Party becoming aware of such default or
         notice thereof given by the Administrative Agent, (ii) any Credit
         Document shall fail to be in full force and effect or any Credit Party
         shall so assert or (iii) any Credit Document shall fail in any material
         respect to give the Administrative Agent, the Collateral Agent and/or
         the Lenders the security interests, Liens, rights, powers and
         privileges purported to be created thereby.

                  (e) Bankruptcy, etc. The occurrence of any of the following:
         (i) a court or governmental agency having jurisdiction in the premises
         shall enter a decree or order for relief in respect of any Credit Party
         or any of its Subsidiaries in an involuntary case under any applicable
         bankruptcy, insolvency or other similar law now or hereafter in effect,
         or appoint a receiver, liquidator, assignee, custodian, trustee,
         sequestrator or similar official of any Credit Party or any of its
         Subsidiaries or for any substantial part of its property or ordering
         the winding up or liquidation of its affairs; or (ii) an involuntary
         case under any applicable bankruptcy, insolvency or other similar law
         now or hereafter in effect is commenced against any Credit Party or any
         of its Subsidiaries and such petition remains unstayed and in effect
         for a period of 60 consecutive days; or (iii) any Credit Party or any
         of its Subsidiaries shall commence a voluntary case under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect, or consent to the entry of an order for relief in an
         involuntary case under any such law, or consent to the appointment or
         taking possession by a receiver, liquidator, assignee, custodian,
         trustee, sequestrator or similar official of such Person or any
         substantial part of its property or make any general assignment for the
         benefit of creditors; or (iv) any Credit Party or any of its
         Subsidiaries shall admit in writing its inability to pay its debts
         generally as they become due or any action shall be taken by such
         Person in furtherance of any of the aforesaid purposes.

                  (f) Defaults under Other Agreements. With respect to any
         Indebtedness (other than Indebtedness outstanding under this Credit
         Agreement) of a Credit Party or any of their Subsidiaries in an
         aggregate principal amount in excess of $5,000,000, including, without
         limitation, the Subordinated Debt, (i) a Credit Party or one of its
         Subsidiaries shall (A) default in any payment (beyond the applicable
         grace period with respect thereto, if any) with respect to any such
         Indebtedness, or (B) default (after giving effect to any applicable
         grace period) in the observance or performance of any obligation
         relating to such Indebtedness or contained in any instrument or
         agreement evidencing, securing or relating thereto, or any other event
         or condition shall occur or condition exist, the effect of which
         default or other event or condition is to cause, or permit, the holder
         or holders of such Indebtedness (or trustee or agent on behalf of such
         holders) to cause (determined without regard to whether any notice or
         lapse of time is required) any such Indebtedness to become due prior to
         its stated maturity; (ii) any such Indebtedness shall be declared due
         and payable, or required to be prepaid other than by a regularly
         scheduled required prepayment prior to the stated maturity thereof; or
         (iii) any such Indebtedness shall mature and remain unpaid. With
         respect to any Indebtedness incurred

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         pursuant to Section 8.1(m), the holder thereof demands payment
         thereunder or causes any payment to be made other than as permitted by
         Section 8.7(b)(ii).

                  (g) Judgments. One or more judgments, orders, or decrees shall
         be entered against any Credit Party or any of its Subsidiaries
         involving a liability of $2,000,000 or more, in the aggregate, (to the
         extent not paid or covered by insurance provided by a carrier who has
         acknowledged coverage) and such judgments, orders or decrees (i) are
         the subject of any enforcement proceeding commenced by any creditor or
         (ii) shall continue unsatisfied, undischarged and unstayed for a period
         ending on the first to occur of (A) the last day on which such
         judgment, order or decree becomes final and unappealable or (B) 60
         days.

                  (h) ERISA. The occurrence of any of the following events or
         conditions if such occurrence would cause or could be reasonably
         expected to cause a Material Adverse Effect: (i) any "accumulated
         funding deficiency," as such term is defined in Section 302 of ERISA
         and Section 412 of the Code, whether or not waived, shall exist with
         respect to any Plan, or any Lien shall arise on the assets of any
         Credit Party or any of its Subsidiaries or any of its ERISA Affiliates
         in favor of the PBGC or a Plan; (ii) a Termination Event shall occur
         with respect to a Single Employer Plan, which is, in the reasonable
         opinion of the Agent, likely to result in the termination of such Plan
         for purposes of Title IV of ERISA; (iii) a Termination Event shall
         occur with respect to a Multiemployer Plan or Multiple Employer Plan,
         which is, in the reasonable opinion of the Agent, likely to result in
         (A) the termination of such Plan for purposes of Title IV of ERISA, or
         (B) any Credit Party or any of its Subsidiaries or any of its ERISA
         Affiliates incurring any liability in connection with a withdrawal
         from, reorganization of (within the meaning of Section 4241 of ERISA),
         or insolvency (within the meaning of Section 4245 of ERISA) of such
         Plan; (iv) any prohibited transaction (within the meaning of Section
         406 of ERISA or Section 4975 of the Code) or breach of fiduciary
         responsibility shall occur which may subject any Credit Party or any of
         its Subsidiaries or any of its ERISA Affiliates to any material
         liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the Code, or under any agreement or other instrument
         pursuant to which any Credit Party or any of its Subsidiaries or any of
         its ERISA Affiliates has agreed or is required to indemnify any Person
         against any such liability; (v) any Credit Party or any of its
         Subsidiaries or any of its ERISA Affiliates shall fail to pay any
         required contributions or payments to any Foreign Pension Plan or any
         Foreign Employee Benefit Plan on or before the due date for such
         required installment or payment; or (vi) any Foreign Employee Benefit
         Plan or any Foreign Pension Plan shall fail to be in compliance in all
         material respects with all laws, regulations and rules applicable
         thereto and the governing documents for such Foreign Employee Benefit
         Plan or such Foreign Pension Plan , as applicable.

                  (i) Guaranties. (i) The guaranty given by the Domestic Credit
         Parties hereunder or by any Additional Domestic Credit Party hereafter
         or any provision thereof shall cease to be in full force and effect, or
         any Domestic Guarantor thereunder or any Person acting by or on behalf
         of such Domestic Guarantor shall deny or disaffirm such Domestic
         Guarantor's obligations under such guaranty or (ii) the guaranty given
         by the

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         Foreign Guarantors pursuant to the Foreign Guaranty Agreements or by
         any other Foreign Credit Party hereafter or any provision thereof shall
         cease to be in full force and effect, or any Foreign Guarantor
         thereunder or any Person acting by or on behalf of such Foreign
         Guarantor shall deny or disaffirm such Foreign Guarantor's obligations
         under such guaranty.

                  (j) Ownership. There shall occur a Change of Control.

                  (k) Subordinated Debt. (i) Any Governmental Authority with
         applicable jurisdiction determines that the Lenders are not holders of
         Designated Senior Indebtedness or Designated Senior Indebtedness of
         Guarantors (as such terms are defined in the Subordinated Loan
         Documents), (ii) the subordination provisions governing the
         Subordinated Debt shall, in whole or in part, terminate, cease to be
         effective or cease to be legally valid, binding and enforceable as to
         any holder of the Subordinated Debt or (iii) an "Event of Default"
         exists as defined in the Subordinated Debt.

         9.2 ACCELERATION; REMEDIES.

         Upon the occurrence of an Event of Default, and at any time thereafter
unless and until such Event of Default has been waived in writing by the
Required Lenders (or the Lenders as may be required hereunder), the
Administrative Agent (or the Collateral Agent, as applicable) shall, upon the
request and direction of the Required Lenders, by written notice to the
Borrower, take any of the following actions without prejudice to the rights of
the Agents or any Lender to enforce its claims against the Credit Parties except
as otherwise specifically provided for herein:

                  (a) Termination of Commitments. Declare the Commitments
         terminated whereupon the Commitments shall be immediately terminated.

                  (b) Acceleration of Loans. Declare the unpaid principal of and
         any accrued interest in respect of all Loans, any reimbursement
         obligations arising from drawings under Letters of Credit and any and
         all other indebtedness or obligations of any and every kind owing by a
         Credit Party to any of the Lenders hereunder to be due whereupon the
         same shall be immediately due and payable without presentment, demand,
         protest or other notice of any kind, all of which are hereby waived by
         the Credit Parties.

                  (c) Cash Collateral. Direct the Borrower to pay (and the
         Borrower agrees that upon receipt of such notice, or upon the
         occurrence of an Event of Default under Section 9.1(e), it will
         immediately pay) to the Collateral Agent additional cash, to be held by
         the Collateral Agent, for the benefit of the Lenders, in a cash
         collateral account as additional security for the LOC Obligations in
         respect of subsequent drawings under all then outstanding Letters of
         Credit in an amount equal to the maximum aggregate amount which may be
         drawn under all Letters of Credits then outstanding.

                  (d) Enforcement of Rights. Enforce any and all rights and
         interests created and existing under the Credit Documents, including,
         without limitation, all rights and

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         remedies existing under the Collateral Documents, all rights and
         remedies against a Guarantor and all rights of set-off.

Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(e) shall occur, then the Commitments shall automatically terminate and all
Loans, all reimbursement obligations under Letters of Credit, all accrued
interest in respect thereof, all accrued and unpaid fees and other indebtedness
or obligations owing to the Lenders hereunder shall immediately become due and
payable without the giving of any notice or other action by the Administrative
Agent or the Lenders, which notice or other action is expressly waived by the
Credit Parties.

Notwithstanding the fact that enforcement powers reside primarily with the
Administrative Agent, each Lender has, to the extent permitted by law, a
separate right of payment and shall be considered a separate "creditor" holding
a separate "claim" within the meaning of Section 101(5) of the Bankruptcy Code
or any other insolvency statute.

         9.3 ALLOCATION OF PAYMENTS AFTER EVENT OF DEFAULT.

         Notwithstanding any other provisions of this Credit Agreement, after
the occurrence and during the continuance of an Event of Default, all amounts
collected or received by the Administrative Agent or any Lender on account of
amounts outstanding under any of the Credit Documents or in respect of the
Collateral shall be paid over or delivered as follows:

                  FIRST, to the payment of all reasonable out-of-pocket costs
         and expenses (including without limitation reasonable attorneys' fees)
         of the Administrative Agent or any of the Lenders in connection with
         enforcing the rights of the Lenders under the Credit Documents and any
         protective advances made by the Administrative Agent with respect to
         the Collateral under or pursuant to the terms of the Collateral
         Documents;

                  SECOND, to payment of any fees owed to the Administrative
         Agent, the Issuing Lender or any Lender;

                  THIRD, to the payment of all accrued interest payable to the
         Lenders hereunder;

                  FOURTH, to the payment of the outstanding principal amount of
         the Loans (other than the Foreign Currency Loans), to the payment or
         cash collateralization of the outstanding LOC Obligations and to any
         principal amounts outstanding under Hedging Agreements between a Credit
         Party and a Lender or an Affiliate of a Lender, pro rata, as set forth
         below;

                  FIFTH, to the payment of Foreign Currency Loans, pro rata as
         set forth below;

                  SIXTH, to all other obligations which shall have become due
         and payable under the Credit Documents and not repaid pursuant to
         clauses "FIRST" through "FIFTH" above; and

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                  SEVENTH, to the payment of the surplus, if any, to whoever may
         be lawfully entitled to receive such surplus.

In carrying out the foregoing, (a) amounts received shall be applied in the
numerical order provided until exhausted prior to application to the next
succeeding category; (b) each of the Lenders shall receive an amount equal to
its pro rata share (based on the proportion that the then outstanding Loans, LOC
Obligations and obligations under Hedging Agreements held by such Lender bears
to the aggregate then outstanding Loans, LOC Obligations and obligations under
Hedging Agreements) of amounts available to be applied pursuant to clauses
"FIRST", "THIRD," "FOURTH," "FIFTH" and "SIXTH" above; and (c) to the extent
that any amounts available for distribution pursuant to clause "FOURTH" above
are attributable to the issued but undrawn amount of outstanding Letters of
Credit, such amounts shall be held by the Collateral Agent in a cash collateral
account and applied (x) first, to reimburse the Issuing Lender from time to time
for any drawings under such Letters of Credit and (y) then, following the
expiration of all Letters of Credit, to all other obligations of the types
described in clauses "FOURTH", "FIFTH" and "SIXTH" above in the manner provided
in this Section 9.3.

                                   SECTION 10
                                AGENCY PROVISIONS

         10.1 APPOINTMENT.

                  (a) Each Lender hereby designates and appoints Bank of
         America, N.A. as Administrative Agent and as Collateral Agent and
         Citicorp North America, Inc. as Syndication Agent of such Lender to act
         as specified herein and in the other Credit Documents, and each such
         Lender hereby authorizes the Agents, as the agents for such Lender, to
         take such action on its behalf under the provisions of this Credit
         Agreement and the other Credit Documents and to exercise such powers
         and perform such duties as are expressly delegated by the terms hereof
         and of the other Credit Documents, together with such other powers as
         are reasonably incidental thereto. Notwithstanding any provision to the
         contrary elsewhere herein and in the other Credit Documents, the Agents
         shall not have any duties or responsibilities, except those expressly
         set forth herein and therein, or any fiduciary relationship with any
         Lender, and no implied covenants, functions, responsibilities, duties,
         obligations or liabilities shall be read into this Credit Agreement or
         any of the other Credit Documents, or shall otherwise exist against the
         Agents. The provisions of this Section (other than Section 10.9) are
         solely for the benefit of the Agents and the Lenders and none of the
         Credit Parties shall have any rights as a third party beneficiary of
         the provisions hereof (other than Section 10.9). In performing its
         functions and duties under this Credit Agreement and the other Credit
         Documents, each Agent shall act solely as an agent of the Lenders and
         does not assume and shall not be deemed to have assumed any obligation
         or relationship of agency or trust with or for any Credit Party.

                  (b) Citicorp North America, Inc., in is capacity as
         Syndication Agent and Bank One, NA (Main Office Chicago) in its
         capacity as Documentation Agent, shall have

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         no duties or obligations whatsoever under this Credit Agreement or any
         of the other Credit Documents.

         10.2 DELEGATION OF DUTIES.

         An Agent may execute any of its duties hereunder or under the other
Credit Documents by or through agents or attorneys-in-fact and shall be entitled
to advice of counsel concerning all matters pertaining to such duties. An Agent
shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

         10.3 EXCULPATORY PROVISIONS.

         Neither the Agents nor any of their officers, directors, employees,
agents, attorneys-in-fact or affiliates shall be (a) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection herewith or in connection with any of the other Credit Documents
(except for its or such Person's own gross negligence or willful misconduct) or
(b) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by any of the Credit Parties
contained herein or in any of the other Credit Documents or in any certificate,
report, document, financial statement or other written or oral statement
referred to or provided for in, or received by an Agent under or in connection
herewith or in connection with the other Credit Documents, or enforceability or
sufficiency therefor of any of the other Credit Documents, or for any failure of
any Credit Party to perform its obligations hereunder or thereunder. The Agents
shall not be responsible to any Lender for the effectiveness, genuineness,
validity, enforceability, collectibility or sufficiency of this Credit
Agreement, or any of the other Credit Documents or for any representations,
warranties, recitals or statements made herein or therein or made by any Credit
Party in any written or oral statement or in any financial or other statements,
instruments, reports, certificates or any other documents in connection herewith
or therewith furnished or made by an Agent to the Lenders or by or on behalf of
the Credit Parties to the Agents or any Lender or be required to ascertain or
inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained herein or therein or as to the use
of the proceeds of the Loans or the use of the Letters of Credit or of the
existence or possible existence of any Default or Event of Default or to inspect
the properties, books or records of the Credit Parties. The Agents are not
trustees for the Lenders and owe no fiduciary duty to the Lenders.

         10.4 RELIANCE ON COMMUNICATIONS.

         An Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, consent, certificate,
affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or
Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to any of the Credit Parties, independent accountants and
other experts selected by an Agent with reasonable care). Each Agent may deem
and treat the Lenders as the owner of its interests hereunder for all purposes
unless a written notice of assignment, negotiation or transfer thereof shall
have been filed with the Administrative Agent in accordance with Section
11.3(b). An Agent shall be fully

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justified in failing or refusing to take any action under this Credit Agreement
or under any of the other Credit Documents unless it shall first receive such
advice or concurrence of the Required Lenders as it deems appropriate or it
shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. An Agent shall in all cases be fully
protected in acting, or in refraining from acting, hereunder or under any of the
other Credit Documents in accordance with a request of the Required Lenders (or
to the extent specifically provided in Section 11.6, all the Lenders) and such
request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders (including their successors and assigns).

         10.5 NOTICE OF DEFAULT.

         An Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless such Agent has
received notice from a Lender or a Credit Party referring to the Credit
Document, describing such Default or Event of Default and stating that such
notice is a "notice of default." In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Borrower and/or the Lenders, as applicable. The Administrative
Agent shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders.

         10.6 NON-RELIANCE ON AGENTS AND OTHER LENDERS.

         Each Lender expressly acknowledges that neither the Agents nor any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates has
made any representations or warranties to it and that no act by the Agents or
any affiliate thereof hereinafter taken, including any review of the affairs of
any Credit Party, shall be deemed to constitute any representation or warranty
by the Agents to any Lender. Each Lender represents to the Agents that it has,
independently and without reliance upon the Agents or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, assets, operations,
property, financial and other conditions, prospects and creditworthiness of the
Credit Parties and made its own decision to make its Loans hereunder and enter
into this Credit Agreement. Each Lender also represents that it will,
independently and without reliance upon the Agents or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Credit Agreement, and to make such
investigation as it deems necessary to inform itself as to the business, assets,
operations, property, financial and other conditions, prospects and
creditworthiness of the Credit Parties. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Agents shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, operations, assets, property, financial or other
conditions, prospects or creditworthiness of the Credit Parties which may come
into the possession of the Agents or any of its officers, directors, employees,
agents, attorneys-in-fact or affiliates.

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         10.7 INDEMNIFICATION.

         The Lenders agree to indemnify each Agent in its capacity as such (to
the extent not reimbursed by the Borrower and without limiting the obligation of
the Borrower to do so), ratably according to their respective Commitments (or if
the Commitments have expired or been terminated, in accordance with the
respective principal amounts of outstanding Loans and Participation Interest of
the Lenders), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time (including without limitation at
any time following payment in full of the Credit Party Obligations) be imposed
on, incurred by or asserted against an Agent in its capacity as such in any way
relating to or arising out of this Credit Agreement or the other Credit
Documents or any documents contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or any action taken or omitted
by an Agent under or in connection with any of the foregoing; provided that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the gross negligence or willful
misconduct of an Agent. If any indemnity furnished to an Agent 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; provided
that no Agent shall be indemnified for any event caused by its gross negligence
or willful misconduct. The agreements in this Section shall survive the payment
of the Credit Party Obligations and all other obligations and amounts payable
hereunder and under the other Credit Documents.

         10.8 AGENTS IN THEIR INDIVIDUAL CAPACITY.

         Each Agent and its affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Borrower or any other
Credit Party as though such Agent were not an Agent hereunder. With respect to
the Loans made and Letters of Credit issued and all obligations owing to it, an
Agent shall have the same rights and powers under this Credit Agreement as any
Lender and may exercise the same as though they were not an Agent, and the terms
"Lender" and "Lenders" shall include each Agent in its individual capacity.

         10.9 SUCCESSOR AGENT.

         Any Agent may, at any time, resign upon 20 days written notice to the
Lenders. Upon any such resignation, the Required Lenders shall have the right to
appoint a successor Agent. If no successor Agent shall have been so appointed by
the Required Lenders, and shall have accepted such appointment, within 45 days
after the notice of resignation, then the retiring Agent shall select a
successor Agent provided such successor is a Lender hereunder or a commercial
bank organized under the laws of the United States of America or of any state
thereof and has a combined capital and surplus of at least $400,000,000. Upon
the acceptance of any appointment as an Agent hereunder by a successor, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring
Agent shall be discharged from its duties and obligations as an Agent, as
appropriate, under this Credit Agreement and the other Credit Documents and the
provisions of this Section

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10.9 shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was an Agent under this Credit Agreement. If no successor
Administrative Agent has accepted appointment as Administrative Agent within
thirty (30) days after the retiring Administrative Agent's giving notice of
resignation, the retiring Administrative Agent's resignation shall nevertheless
become effective and the Lenders shall perform all duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor Administrative Agent as provided for above. Likewise, if no successor
Collateral Agent has accepted appointment as Collateral Agent within thirty (30)
days after the retiring Collateral Agent's giving notice of resignation, the
retiring Collateral Agent's resignation shall nevertheless become effective and
the Lenders shall perform all duties of the Collateral Agent under the
Collateral Documents until such time, if any, as the Required Lenders appoint a
successor Collateral Agent as provided for above. There shall at all times be a
Person servicing as Administrative Agent hereunder and, so long as no Default or
Event of Default shall have occurred and be continuing, the appointment of any
new Administrative Agent shall require the consent of the Borrower (which
consent shall not be unreasonably withheld or delayed).

                                   SECTION 11
                                  MISCELLANEOUS

         11.1 NOTICES.

         Except as otherwise expressly provided herein, all notices and other
communications shall have been duly given and shall be effective (a) when
delivered, (b) when transmitted via telecopy (or other facsimile device) to the
number set out below, (c) the Business Day following the day on which the same
has been delivered prepaid (or on an invoice basis) to a reputable national
overnight air courier service, or (d) the fifth Business Day following the day
on which the same is sent by certified or registered mail, postage prepaid, in
each case to the respective parties at the address or telecopy numbers set forth
on Schedule 11.1, or at such other address as such party may specify by written
notice to the other parties hereto.

         11.2 RIGHT OF SET-OFF.

         In addition to any rights now or hereafter granted under applicable law
or otherwise, and not by way of limitation of any such rights, upon the
occurrence of an Event of Default and the commencement of remedies described in
Section 9.2, each Lender is authorized at any time and from time to time,
without presentment, demand, protest or other notice of any kind (all of which
rights being hereby expressly waived), to set-off and to appropriate and apply
any and all deposits (general or special) and any other indebtedness at any time
held or owing by such Lender (including, without limitation, branches, agencies
or Affiliates of such Lender wherever located) to or for the credit or the
account of any Credit Party against obligations and liabilities of such Credit
Party to the Lenders hereunder, under the Notes, the other Credit Documents or
otherwise, irrespective of whether the Administrative Agent or the Lenders shall
have made any demand hereunder and although such obligations, liabilities or
claims, or any of them, may be

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contingent or unmatured, and any such set-off shall be deemed to have been made
immediately upon the occurrence of an Event of Default even though such charge
is made or entered on the books of such Lender subsequent thereto. The Credit
Parties hereby agree that to the extent permitted by law any Person purchasing a
participation in the Loans and Commitments hereunder pursuant to Section
11.3(c), 2.5, 2.6 or 2.7 may exercise all rights of set-off with respect to its
participation interest as fully as if such Person were a Lender hereunder and
any such set-off shall reduce the amount owed by such Credit Party to the
Lender.

         11.3 BENEFIT OF AGREEMENT.

                  (a) Generally. This Credit Agreement shall be binding upon and
         inure to the benefit of and be enforceable by the respective successors
         and assigns of the parties hereto; provided that none of the Credit
         Parties may assign or transfer any of its interests and obligations in
         violation of Section 8.4 or 8.5 or without the prior written consent of
         either the Required Lenders or the Lenders, as the terms set forth in
         Section 11.6 may require; and provided further that the rights of each
         Lender to transfer, assign or grant participations in its rights and/or
         obligations hereunder shall be limited as set forth below in this
         Section 11.3.

                  (b) Each Lender may assign to one or more Eligible Assignees
         all or a portion of its rights and obligations under this Credit
         Agreement (including, without limitation, all or a portion of its
         Loans, its Notes, and its Commitment); provided, however, that

                           (i) except in the case of an assignment to another
                  Lender, an Affiliate of an existing Lender or any fund that
                  buys or invests in commercial or bank loans and is advised or
                  managed by an investment advisor to an existing Lender or an
                  Affiliate of such Lender or an assignment of all of a Lender's
                  rights and obligations under this Credit Agreement, any such
                  partial assignment shall be in an amount at least equal to
                  $1,000,000 (or, if less, the remaining amount of the
                  Commitment being assigned by such Lender); and

                           (ii) the parties to such assignment shall execute and
                  deliver to the Administrative Agent and the Issuing Lender for
                  their acceptance an Assignment and Acceptance substantially in
                  the form of Exhibit 11.3(b), together with any Note subject to
                  such assignment and a processing fee of $3,500 (with only one
                  such fee payable in connection with simultaneous assignments
                  to funds advised by the same investment advisor).

         Upon execution, delivery, and acceptance of such Assignment and
         Acceptance, the assignee thereunder shall be a party hereto and, to the
         extent of such assignment, have the obligations, rights, and benefits
         of a Lender hereunder and the assigning Lender shall, to the extent of
         such assignment, relinquish its rights and be released from its
         obligations under this Credit Agreement. Upon the consummation of any
         assignment pursuant to this Section 11.3(b), the assignor, the
         Administrative Agent and the Credit Parties shall make appropriate
         arrangements so that, if required, new Notes are issued to the assignor
         and the assignee. If the assignee is not a United States person under
         Section 7701(a)(30) of the

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         Code, it shall deliver to the Credit Parties and the Administrative
         Agent certification as to exemption from deduction or withholding of
         Taxes in accordance with Section 3.13.

                  (c) The Administrative Agent, acting for this purpose (but
         only for this purpose) as an agent for the Borrower, shall maintain at
         its address referred to in Section 11.1 a copy of each Assignment and
         Acceptance delivered to and accepted by it and a register for the
         recordation of the names and addresses of the Lenders and the
         Commitment of, and principal amount of the Loans owing to, each Lender
         from time to time (the "Register"). The entries in the Register shall
         be conclusive and binding for all purposes, absent manifest error, and
         the Credit Parties, the Administrative Agent and the Lenders may treat
         each Person whose name is recorded in the Register as a Lender
         hereunder for all purposes of this Credit Agreement. The Register shall
         be available for inspection by the Credit Parties or any Lender at any
         reasonable time and from time to time upon reasonable prior notice. Any
         assignment of any Loan or other Credit Party Obligations shall be
         effective only upon an entry with respect thereto being made in the
         Register.

                  (d) Upon its receipt of an Assignment and Acceptance executed
         by the parties thereto, together with any Note subject to such
         assignment and payment of the processing fee, the Administrative Agent
         shall, if such Assignment and Acceptance has been completed and is in
         substantially the form of Exhibit 11.3(b), (i) accept such Assignment
         and Acceptance, (ii) record the information contained therein in the
         Register and (iii) give prompt notice thereof to the parties thereto.

                  (e) Each Lender may, without the consent of the Borrower or
         the Administrative Agent, sell participations to one or more Persons in
         all or a portion of its rights, obligations or rights and obligations
         under this Credit Agreement (including all or a portion of its
         Commitment or its Loans); provided, however, that (i) such Lender's
         obligations under this Credit Agreement shall remain unchanged, (ii)
         such Lender shall remain solely responsible to the other parties hereto
         for the performance of such obligations, (iii) the participant shall be
         entitled to the benefit of the yield protection provisions contained in
         Sections 3.9 through 3.14, inclusive, and the right of set-off
         contained in Section 11.2 (but only to the extent of the rights of the
         Lender granting such participation), and (iv) the Credit Parties shall
         continue to deal solely and directly with such Lender in connection
         with such Lender's rights and obligations under this Credit Agreement,
         and such Lender shall retain the sole right to enforce the obligations
         of the Credit Parties relating to the Credit Party Obligations owing to
         such Lender and to approve any amendment, modification, or waiver of
         any provision of this Credit Agreement (other than amendments,
         modifications, or waivers decreasing the amount of principal of or the
         rate at which interest is payable on such Loans or Notes, extending any
         scheduled principal payment date or date fixed for the payment of
         interest on such Loans or Notes, or extending its Commitment).

                  (f) Notwithstanding any other provision set forth in this
         Credit Agreement, any Lender may, without the consent of the Borrower
         or the Administrative Agent, at any time (i) assign and pledge all or
         any portion of its Loans and its Notes to any Federal

                                      121
<PAGE>   128

         Reserve Bank as collateral security pursuant to Regulation A and any
         Operating Circular issued by such Federal Reserve Bank or (ii) pledge
         all or any portion of its rights (but not its obligations to make Loans
         or participate in Letters of Credit) hereunder to any trustee or
         holders of obligations owed, or securities issued, by such Lender as
         security for such obligations or securities or to any other
         representative of such holders. No such assignment shall release the
         assigning Lender from its obligations hereunder.

                  (g) Any Lender may furnish any information concerning a Credit
         Party or any of their Subsidiaries in the possession of such Lender
         from time to time to assignees and participants (including prospective
         assignees and participants), subject, however, to the provisions of
         Section 11.17.

                  (h) SPC's. Notwithstanding anything to the contrary contained
         herein, any Lender (a "Granting Lender") may grant to a special purpose
         funding vehicle (an "SPC") the option to fund all or any part of any
         Loan that such Granting Lender would otherwise be obligated to fund
         pursuant to this Credit Agreement; provided that (i) nothing herein
         shall constitute a commitment by any SPC to fund any Loan, (ii) if an
         SPC elects not to exercise such option or otherwise fails to fund all
         or any part of such Loan, the Granting Lender shall be obligated to
         fund such Loan pursuant to the terms hereof, (iii) no SPC shall have
         any voting rights pursuant to Section 11.6 and (iv) with respect to
         notices, payments and other matters hereunder, the Credit Parties, the
         Agents and the Lenders shall not be obligated to deal with an SPC, but
         may limit their communications and other dealings relevant to such SPC
         to the applicable Granting Lender. The funding of a Loan by an SPC
         hereunder shall utilize the Revolving Loan Commitment of the Granting
         Lender to the same extent that, and as if, such Loan were funded by
         such Granting Lender. Each party hereto hereby agrees that no SPC shall
         be liable for any indemnity or payment under this Credit Agreement for
         which a Lender would otherwise be liable for so long as, and to the
         extent, the Granting Lender provides such indemnity or makes such
         payment. Notwithstanding anything to the contrary contained in this
         Credit Agreement, any SPC may disclose on a confidential basis any
         non-public information relating to its funding of Loans to any rating
         agency, commercial paper dealer or provider of any surety or guarantee
         to such SPC. This Section may not be amended without the prior written
         consent of each Granting Lender, all or any part of whose Loan is being
         funded by an SPC at the time of such amendment.

         11.4 NO WAIVER; REMEDIES CUMULATIVE.

         No failure or delay on the part of an Agent or any Lender in exercising
any right, power or privilege hereunder or under any other Credit Document and
no course of dealing between the Agents or any Lender and any of the Credit
Parties shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or under any other Credit
Document preclude any other or further exercise thereof or the exercise of any
other right, power or privilege hereunder or thereunder. The rights and remedies
provided herein are cumulative and not exclusive of any rights or remedies which
the Agents or any Lender would otherwise have. No notice to or demand on any
Credit Party in any case shall entitle the Credit Parties to any other or
further notice or demand in similar or other circumstances or constitute a
waiver of

                                      122
<PAGE>   129

the rights of the Agents or the Lenders to any other or further action in any
circumstances without notice or demand.

         11.5 PAYMENT OF EXPENSES; INDEMNIFICATION.

                  (a) The Credit Parties jointly and severally agree to: (a) pay
         on demand all reasonable out-of-pocket costs and expenses of (i) the
         Agents, BAS and SSB in connection with (A) the syndication,
         negotiation, preparation, execution and delivery and administration of
         this Credit Agreement and the other Credit Documents and the other
         documents and instruments referred to therein (including, without
         limitation, the reasonable fees and expenses of Moore & Van Allen,
         special counsel to the Administrative Agent, and the fees and expenses
         of counsel for the Agents in connection with collateral or foreign
         issues), and (B) any amendment, waiver or consent relating hereto and
         thereto including, but not limited to, any such amendments, waivers or
         consents resulting from or related to any work-out, renegotiation or
         restructure relating to the performance by the Credit Parties under
         this Credit Agreement and (ii) the Agents and the Lenders in connection
         with (A) enforcement of the Credit Documents and the documents and
         instruments referred to therein, including, without limitation, in
         connection with any such enforcement, the reasonable fees and
         disbursements of counsel for the Agents and each of the Lenders, and
         (B) any bankruptcy, insolvency or similar proceeding of a Credit Party
         or any of its Subsidiaries and (b) indemnify each Agent, BAS, SSB and
         each Lender, its officers, directors, employees, representatives and
         agents from and hold each of them harmless against any and all losses,
         liabilities, claims, damages or expenses incurred by any of them as a
         result of, or arising out of, or in any way related to, or by reason
         of, any investigation, litigation or other proceeding (whether or not
         any Agent or Lender is a party thereto) related to (i) the entering
         into and/or performance of any Credit Document or the use of proceeds
         of any Loans (including other extensions of credit) hereunder or the
         consummation of any other transactions contemplated in any Credit
         Document, including, without limitation, the reasonable fees and
         disbursements of counsel incurred in connection with any such
         investigation, litigation or other proceeding, (ii) any Environmental
         Claim (except to the extent such claim arises from the gross negligence
         or willful misconduct of any indemnified party) and (iii) any claims
         for Non-Excluded Taxes.

                  (b) Without prejudice to the survival of any other agreement
         of the Credit Parties hereunder, the agreements and obligations of the
         Credit Parties contained in this Section 11.5 shall survive the
         repayment of the Loans, LOC Obligations and other obligations under the
         Credit Documents and the termination of the Commitments hereunder.

         11.6 AMENDMENTS, WAIVERS AND CONSENTS.

         Neither this Credit Agreement, nor any other Credit Document, nor any
of the terms hereof or thereof may be amended, changed, waived, discharged or
terminated unless such amendment, change, waiver, discharge or termination is in
writing and signed by the Required Lenders and the Credit Parties; provided
that:

                                      123
<PAGE>   130

                  (a) no such amendment, change, waiver, discharge or
         termination shall, without the consent of each Lender affected thereby,

                           (i) extend the final maturity of any Loan or the time
                  of payment of any reimbursement obligation, or any portion
                  thereof, arising from drawings under Letters of Credit, or
                  modify, extend or waive any Principal Amortization Payment, or
                  any portion thereof;

                           (ii) reduce the rate or extend the time of payment of
                  interest (other than as a result of waiving the applicability
                  of any post-default increase in interest rates) thereon or
                  fees hereunder;

                           (iii) reduce or waive the principal amount of any
                  Loan or of any reimbursement obligation, or any portion
                  thereof, arising from drawings under Letters of Credit;

                           (iv) increase the Commitment of a Lender over the
                  amount thereof in effect (it being understood and agreed that
                  a waiver of any Default or Event of Default or a mandatory
                  reduction in the Commitments shall not constitute a change in
                  the terms of any Commitment of any Lender);

                           (v) release all or substantially all of the
                  Collateral securing the Credit Party Obligations hereunder
                  (provided that the Collateral Agent may, without consent from
                  any other Lender, release any Collateral that is sold or
                  transferred by a Credit Party in conformance with Section
                  8.5);

                           (vi) release the Borrower or substantially all of the
                  other Credit Parties from its or their obligations under the
                  Credit Documents (provided that the Administrative Agent may,
                  without the consent from any other Lender, release any
                  Guarantor that is sold or transferred in conformance with
                  Section 8.5);

                           (vii) amend, modify or waive any provision of this
                  Section 11.6 or Section 3.4(a), 3.4(b)(i), 3.4(c), 3.7, 3.8,
                  9.1(a), 11.2, 11.3 or 11.5;

                           (viii) reduce any percentage specified in, or
                  otherwise modify, the definition of Required Lenders;

                           (ix) consent to the assignment or transfer by the
                  Parent, the Borrower or all or substantially all of the other
                  Credit Parties of any of its or their rights and obligations
                  under (or in respect of) the Credit Documents except as
                  permitted thereby; or

                           (x) waive any condition precedent set forth in
                  Section 5.1.

                                      124
<PAGE>   131

                  (b) in addition to any consent of the Required Lenders or the
         Lenders as set forth above, any amendment, modification or waiver that
         changes the allocation of any payments or the realization of proceeds
         of Collateral among the Revolving Loans, the Tranche A Term Loans
         and/or the Tranche B Term Loans (or between any two of such Loans), and
         any amendment, modification or waiver that affects the order of
         application of payments specified in Section 3.3(c), shall also require
         the consent of, if affected thereby, (i) Lenders holding at least 50%
         of the Revolving Committed Amount, (ii) Lenders holding at least 50% of
         the outstanding Tranche A Term Loans and (iii) Lenders holding at least
         50% of the outstanding Tranche B Term Loans.

                  (c) no provision of Section 10 may be amended without the
         consent of the Administrative Agent, no provision of Sections 2.2 or
         3.4(b)(ii) may be amended without the consent of the Issuing Lender, no
         provision of Section 2.5 may be amended without the consent of the
         Swing Line Lender and no provision of Section 2.6 or 3.4(c) may be
         amended without the consent of the then Foreign Currency Lenders.

Notwithstanding the fact that the consent of all the Lenders is required in
certain circumstances as set forth above, (x) each Lender is entitled to vote as
such Lender sees fit on any bankruptcy reorganization plan that affects the
Loans or the Letters of Credit, and each Lender acknowledges that the provisions
of Section 1126(c) of the Bankruptcy Code supersede the unanimous consent
provisions set forth herein and (y) the Required Lenders may consent to allow a
Credit Party to use cash collateral in the context of a bankruptcy or insolvency
proceeding.

         11.7 COUNTERPARTS/TELECOPY.

         This Credit Agreement may be executed in any number of counterparts,
each of which where so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument. It shall not be necessary in
making proof of this Credit Agreement to produce or account for more than one
such counterpart. Delivery of an executed counterpart by facsimile shall be as
effective as an original executed counterpart and shall be deemed a
representation that an original executed counterpart will be delivered.

         11.8 HEADINGS.

         The headings of the sections and subsections hereof are provided for
convenience only and shall not in any way affect the meaning or construction of
any provision of this Credit Agreement.

         11.9 DEFAULTING LENDER.

         Each Lender understands and agrees that if such Lender is a Defaulting
Lender then, notwithstanding the provisions of Section 11.6, it shall not be
entitled to vote on any matter requiring the consent of the Required Lenders or
to object to any matter requiring the consent of all the Lenders adversely
affected thereby; provided, however, that all other benefits and obligations
under the Credit Documents shall apply to such Defaulting Lender.

                                      125
<PAGE>   132

         11.10 SURVIVAL OF INDEMNIFICATION AND REPRESENTATIONS AND WARRANTIES.

         All indemnities set forth herein and all representations and warranties
made herein shall survive the execution and delivery of this Credit Agreement,
the making of the Loans, the issuance of the Letters of Credit and the repayment
of the Loans, LOC Obligations and other obligations and the termination of the
Commitments hereunder.

         11.11 GOVERNING LAW; VENUE; FOREIGN CREDIT PARTIES.

                  (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE
         RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE
         GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS
         OF THE STATE OF NEW YORK. Any legal action or proceeding with respect
         to this Agreement or any other Credit Document may be brought in the
         courts of the State of New York or of the United States for the
         Southern District of New York, and, by execution and delivery of this
         Credit Agreement, each Credit Party hereby irrevocably accepts for
         itself and in respect of its property, generally and unconditionally,
         the jurisdiction of such courts. Each Credit Party further irrevocably
         consents to the service of process out of any of the aforementioned
         courts in any such action or proceeding by the mailing of copies
         thereof by registered or certified mail, postage prepaid, to it at the
         address for notices pursuant to Section 11.1, such service to become
         effective 30 days after such mailing. Nothing herein shall affect the
         right of a Lender to serve process in any other manner permitted by law
         or to commence legal proceedings or to otherwise proceed against a
         Credit Party in any other jurisdiction.

                  (b) Each Credit Party hereby irrevocably waives any objection
         which it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Credit Agreement or any other Credit Document brought in the
         courts referred to in subsection (a) hereof and hereby further
         irrevocably waives and agrees not to plead or claim in any such court
         that any such action or proceeding brought in any such court has been
         brought in an inconvenient forum.

                  (c) Each Foreign Subsidiary Borrower hereby irrevocably
         appoints United States Can Company, with an address on the date hereof
         as specified on Schedule 11.1 (or such other Persons as may from time
         to time be identified to the Administrative Agent in writing and is
         deemed satisfactory to the Administrative Agent) as its true and lawful
         attorney-in-fact (the "Service of Process Agent") in its name, place
         and stead to accept service of any and all writs, summons and other
         legal process and any such enforcement proceeding brought in the State
         of New York and agrees that service by the mailing, of copies thereof
         by registered or certified mail, postage prepaid, to it at the address
         for notices pursuant to Section 11.1, such service to become effective
         30 days after such mailing, of any

                                      126
<PAGE>   133

         enforcement proceeding may be made upon such Service of Process Agent
         and that it will take such action as necessary to continue such
         appointment in full force and effect or to appoint another such Service
         of Process Agent satisfactory to the Administrative Agent for service
         of process. United States Can Company hereby irrevocably accepts such
         appointment and agrees to serve in the capacity of Service of Process
         Agent.

                  (d) With respect to each Foreign Credit Party that becomes a
         party hereto:

                           (i) Without limiting the generality of subsections
                  (a) and (b) of this Section 11.11, such Foreign Credit Party
                  agrees that any controversy or claim with respect to it
                  arising out of or relating to this Credit Agreement or the
                  other Credit Documents may, at the sole option of the
                  Administrative Agent and the Lenders, be settled immediately
                  by submitting the same to binding arbitration in the City of
                  New York, New York (or such other place as the parties may
                  agree) in accordance with the Commercial Arbitration Rules of
                  the American Arbitration Association. Upon the request and
                  submission of any controversy or claim for arbitration
                  hereunder, the Administrative Agent shall give such Foreign
                  Credit Party not less than 45 days written notice of the
                  request for arbitration, the nature of the controversy or
                  claim, and the time and place set for arbitration. Such
                  Foreign Credit Party agrees that such notice is reasonable to
                  enable it sufficient time to prepare and present its case
                  before the arbitration panel. Judgment on the award rendered
                  by the arbitration panel may be entered in any court
                  including, without limitation, any court of the State of New
                  York or any federal court sitting in the State of New York.
                  The expenses of arbitration shall be paid by such Foreign
                  Credit Party.

                           (ii) The provisions of subsection (i) above are
                  intended to comply with the requirements of the Convention on
                  the Recognition and Enforcement of Foreign Arbitral Awards
                  (the "Convention"). To the extent that any provisions of such
                  subsection (i) are not consistent with or fail to conform to
                  the requirements set out in the Convention, such subsection
                  (i) shall be deemed amended to conform to the requirements of
                  the Convention.

                           (iii) Such Foreign Credit Party hereby specifically
                  consents and submits to the jurisdiction of the courts of the
                  State of New York and courts of the United States located in
                  the State of New York for purposes of entry of a judgment or
                  arbitration award entered by the arbitration panel.

         11.12 WAIVER OF JURY TRIAL; WAIVER OF CONSEQUENTIAL DAMAGES.

         EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF
OR RELATING TO THIS AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY. Each Credit Party agrees not to assert any
claim against the Agents, the Issuing

                                      127
<PAGE>   134

Lenders, any Lender, any of their Affiliates, or any of their respective
directors, officers, employees, attorneys or agents, on any theory of liability,
for special, indirect, consequential or punitive damages arising out of or
otherwise relating to any of the transactions contemplated herein.

         11.13 JUDGMENT CURRENCY.

                  (a) Each Credit Party's obligations under the Credit Documents
         to make payments in Dollars (the "Obligation Currency") shall not be
         discharged or satisfied by any tender or recovery pursuant to any
         judgment expressed in or converted into any currency other than the
         Obligation Currency, except to the extent that such tender or recovery
         results in the effective receipt by an Agent or a Lender of the full
         amount of the Obligation Currency expressed to be payable to such Agent
         or such Lender under the Credit Documents. If, for the purpose of
         obtaining or enforcing judgment against any Credit Party in any court
         or in any jurisdiction, it becomes necessary to convert into or from
         any currency other than the Obligation Currency (such other currency
         being hereinafter referred to as the "Judgment Currency") an amount due
         in the Obligation Currency, the conversion shall be made at the U.S.
         Dollar Equivalent, determined as of the Business Day immediately
         preceding the day on which the judgment is given (such Business Day
         being hereinafter referred to as the "Judgment Currency Conversion
         Date").

                  (b) If there is a change in the rate of exchange prevailing
         between the Judgment Currency Conversion Date and the date of actual
         payment of the amount due, such amount payable by the applicable Credit
         Party shall be reduced or increased, as applicable, such that the
         amount paid in the Judgment Currency, when converted at the rate of
         exchange prevailing on the date of payment, will produce the amount of
         the Obligation Currency which could have been purchased with the amount
         of Judgment Currency stipulated in the judgment or judicial award at
         the rate of exchange prevailing on the Judgment Currency Conversion
         Date.

         11.14 SEVERABILITY.

         If any provision of any of the Credit Documents is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and
the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

         11.15 ENTIRETY.

         This Credit Agreement together with the other Credit Documents
represent the entire agreement of the parties hereto and thereto, and supersede
all prior agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to the Credit Documents or the
transactions contemplated herein and therein.

                                      128
<PAGE>   135

         11.16 BINDING EFFECT.

                  (a) This Credit Agreement shall become effective at such time
         when all of the conditions set forth in Section 5.1 have been satisfied
         or waived by the Lenders and it shall have been executed by the
         Borrower, the Domestic Guarantors and the Administrative Agent, and the
         Administrative Agent shall have received copies hereof (telefaxed or
         otherwise) which, when taken together, bear the signatures of each
         Lender, and thereafter this Credit Agreement shall be binding upon and
         inure to the benefit of the Borrower, the Domestic Guarantors, the
         Administrative Agent, any Additional Domestic Credit Party or any
         Foreign Credit Party and each Lender and their respective successors
         and assigns.

                  (b) This Credit Agreement shall be a continuing agreement and
         shall remain in full force and effect until all Loans, LOC Obligations,
         interest, fees and other Credit Party Obligations have been paid in
         full and all Commitments and Letters of Credit have been terminated.
         Upon termination, the Credit Parties shall have no further obligations
         (other than the indemnification provisions that survive) under the
         Credit Documents and the Collateral Agent shall, at the request and
         expense of the Borrower, deliver all Collateral in its possession to
         the Borrower and release all Liens on Collateral; provided that should
         any payment, in whole or in part, of the Credit Party Obligations be
         rescinded or otherwise required to be restored or returned by an Agent
         or any Lender, whether as a result of any proceedings in bankruptcy or
         reorganization or otherwise, then the Credit Documents shall
         automatically be reinstated and all Liens of the Lenders shall reattach
         to the Collateral and all amounts required to be restored or returned
         and all costs and expenses incurred by an Agent or Lender in connection
         therewith shall be deemed included as part of the Credit Party
         Obligations.

         11.17 CONFIDENTIALITY.

         Each Lender agrees that it will use its reasonable best efforts to keep
confidential and to cause any representative designated under Section 7.10 to
keep confidential any non-public information from time to time supplied to it
under any Credit Document; provided, however, that nothing herein shall affect
the disclosure of any such information to (i) the extent such Lender in good
faith believes is required by statute, rule, regulation or judicial process,
(ii) counsel for such Lender or to its accountants, (iii) bank examiners or
auditors or comparable Persons (including, without limitation, the National
Association of Insurance Commissioners), (iv) any Affiliate of such Lender, (v)
any other Lender, or any assignee, transferee or participant, or any potential
assignee, transferee or participant, of all or any portion of any Lender's
rights under this Credit Agreement or any direct or indirect contractual
counterparty in any swap, hedge or similar agreement (or to any of such
contractual counterparty's professional advisor), in each case who is notified
of the confidential nature of the information and agrees to be bound by this
provision or provisions reasonably comparable hereto, (vi) any other Person in
connection with any litigation to which any one or more of the Lenders is a
party or (vii) to the extent necessary in connection with the exercise of rights
and remedies under any Credit Document; and provided further that no Lender
shall have any obligation under this Section 11.17 to the extent any such
information becomes available on a non-confidential basis from a source other
than a Credit

                                      129
<PAGE>   136

Party or its Subsidiaries or that any information becomes publicly available
other than by a breach of this Section 11.17.

         11.18 FURTHER ASSURANCES.

         The Credit Parties agree, upon the request of an Agent, to promptly
take such actions, as reasonably requested, as is necessary to ensure that the
Lenders have a perfected security interest in the Collateral subject to no Liens
other than Permitted Liens.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      130
<PAGE>   137

         Each of the parties hereto has caused a counterpart of this Credit
Agreement to be duly executed and delivered as of the date first above written.

BORROWER:
                                       UNITED STATES CAN COMPANY,
                                       a Delaware corporation

                                       By: /s/ Paul W. Jones
                                          --------------------------------------
                                       Name: Paul W. Jones
                                       Title: President and Chief Executive
                                              Officer

DOMESTIC
GUARANTORS:
                                       U.S. CAN CORPORATION,
                                       a Delaware corporation

                                       By: /s/ Paul W. Jones
                                          --------------------------------------
                                       Name: Paul W. Jones
                                       Title: President and Chief Executive
                                              Officer

                                       USC MAY VERPACKUNGEN HOLDING INC.,
                                       a Delaware corporation

                                       By: /s/ Paul W. Jones
                                          --------------------------------------
                                       Name: Paul W. Jones
                                       Title: President

<PAGE>   138

                   Signature Page to United States Can Company
                                Credit Agreement

LENDERS:

                                       BANK OF AMERICA, N.A.,
                                       individually in its capacity as
                                       Administrative Agent

                                       By: /s/ W. THOMAS BARNETT
                                          --------------------------------------
                                       Name: W. Thomas Barnett
                                            ------------------------------------
                                       Title: Managing Director
                                             -----------------------------------

                                       BANK OF AMERICA, N.A., in its capacity as
                                       a Lender

                                       By: /s/ W. THOMAS BARNETT
                                          --------------------------------------
                                       Name: W. Thomas Barnett
                                            ------------------------------------
                                       Title: Managing Director
                                             -----------------------------------

<PAGE>   139

                   Signature Page to United States Can Company
                                Credit Agreement

                                       CITICORP NORTH AMERICA, INC.,
                                       individually in its capacity as a Lender
                                       and in its capacity as Syndication Agent

                                       By: /s/ DAVID J. WIRDNAM
                                          --------------------------------------
                                       Name: David J. Wirdnam
                                            ------------------------------------
                                       Title: Director
                                             -----------------------------------

<PAGE>   140

                   Signature Page to United States Can Company
                                Credit Agreement

                                       BANK ONE, NA (MAIN OFFICE CHICAGO),
                                       individually in its capacity as Lender
                                       and in its capacity as Documentation
                                       Agent

                                       By: /s/ DIANE M. FAUNDA
                                          --------------------------------------
                                       Name: Diane M. Faunda
                                            ------------------------------------
                                       Title: Vice President
                                             -----------------------------------
<PAGE>   141
                  Signature Page to United States Can Company
                                Credit Agreement

                                        CREDIT LYONNAIS NEW YORK BRANCH

                                        By: /s/ W. MICHAEL GEORGE
                                           --------------------------
                                        Name: W. Michael George
                                             ------------------------
                                        Title: Managing Director
                                              -----------------------
<PAGE>   142
                  Signature Page to United States Can Company
                                Credit Agreement

                                        THE BANK OF NOVA SCOTIA

                                        By: /s/ F.C.H. ASHBY
                                           ----------------------------------
                                        Name: F.C.H. Ashby
                                             --------------------------------
                                        Title: Senior Manager Loan Operations
                                              -------------------------------
<PAGE>   143
                  Signature Page to United States Can Company
                                Credit Agreement

                                                  THE NORTHERN TRUST COMPANY

                                                  By: /s/ DANIEL A. TOLL
                                                     --------------------------
                                                  Name: Daniel A. Toll
                                                       ------------------------
                                                  Title: Vice President

<PAGE>   144
                  Signature Page to United States Can Company
                                Credit Agreement

                                             OAK BROOK BANK

                                             By: /s/ HENRY WESSEL
                                                --------------------------
                                             Name: Henry Wessel
                                                  ------------------------
                                             Title: Vice President
                                                   -----------------------
<PAGE>   145
                  Signature Page to United States Can Company
                                Credit Agreement

                                   WEBSTER BANK

                                   By: /s/ JULIANA B. DALTON
                                      --------------------------

                                   Name:  Juliana B. Dalton
                                        ------------------------

                                   Title:  Vice President
                                         -----------------------
<PAGE>   146
                  Signature Page to United States Can Company
                                Credit Agreement

                                   BANK OF TOKYO-MITSUBISHI TRUST COMPANY

                                   By: /s/ CHRIS DROUSSIOTIS
                                      --------------------------

                                   Name:  Chris Droussiotis
                                        ------------------------

                                   Title:  Vice President
                                         -----------------------
<PAGE>   147

                   Signature Page to United States Can Company
                                Credit Agreement

                                       CREDIT AGRICOLE INDOSUEZ

                                       By: /s/ CHARLES HIATT
                                          --------------------------------------
                                       Name: Charles Hiatt
                                            ------------------------------------
                                       Title: Vice President
                                             -----------------------------------
                                              Manager

                                       By: /s/ SUSAN C. KNIGHT
                                          --------------------------------------
                                       Name: Susan Knight
                                            ------------------------------------
                                       Title: Vice President
                                             -----------------------------------
                                              Sr. Relationship Manager
<PAGE>   148
                  Signature Page to United States Can Company
                                Credit Agreement

                            PPM AMERICA, INC., As attorney in fact, on behalf of
                            Jackson National Life Insurance Company

                            By: /s/ DAVID C. WAGNER
                                -------------------------------------

                            Name: David C. Wagner
                                  -----------------------------------

                            Title: Vice President
                                   ----------------------------------

<PAGE>   149
                  Signature Page to United States Can Company
                                Credit Agreement

                                            PPM SPYGLASS FUNDING TRUST

                                            By: /s/ ANN E. MORRIS
                                               ------------------------
                                            Name: Ann E. Morris
                                                 ----------------------
                                            Title: Authorized Agent
                                                  ---------------------

<PAGE>   150
                  Signature Page to United States Can Company
                                Credit Agreement

                                            FRANKLIN FLOATING RATE MASTER SERIES

                                            By: /s/ CHAUNCEY LUFKIN
                                               ------------------------
                                            Name: Chauncey Lufkin
                                                 ----------------------
                                            Title: Vice President
                                                  ---------------------

<PAGE>   151
                  Signature Page to United States Can Company
                                Credit Agreement

                                            CREDIT SUISSE FIRST BOSTON

                                            By: /s/ BARRY A. ZAMORE
                                               ------------------------
                                            Name: Barry A. Zamore
                                                 ----------------------
                                            Title: Vice President
                                                  ---------------------

                                           By: /s/ CLAIRE M. MCCARTHY
                                               ------------------------
                                            Name: Claire M. McCarthy
                                                 ----------------------
                                            Title: Managing Director
                                                  ---------------------

<PAGE>   152
                  Signature Page to United States Can Company
                                Credit Agreement

                                                  KZH CNC LLC

                                                  By: /s/ SUSAN LEE
                                                     -----------------------
                                                  Name: Susan Lee
                                                       ---------------------
                                                  Title: Authorized Agent
                                                        --------------------
<PAGE>   153
                  Signature Page to United States Can Company
                                Credit Agreement

                                             METROPOLITAN LIFE INSURANCE COMPANY

                                             By: /s/ JAMES R. DINGLER
                                                --------------------------
                                             Name: James R. Dingler
                                                  ------------------------
                                             Title: Director
                                                   -----------------------
<PAGE>   154
                  Signature Page to United States Can Company
                                Credit Agreement

                                   MORGAN STANLEY DEAN WITTER PRIME
                                   INCOME TRUST

                                   By: /s/ PETER GEWIRTZ
                                      --------------------------

                                   Name:  Peter Gewirtz
                                        ------------------------

                                   Title:  Vice President
                                         -----------------------
<PAGE>   155
                  Signature Page to United States Can Company
                                Credit Agreement

                                   NUVEEN SENIOR INCOME FUND

                                   By: Nuveen Senior Loan Asset Management, Inc.

                                   By:   /s/ LISA M. MINCHESKI
                                         ---------------------
                                   Name:     Lisa M. Mincheski
                                         ---------------------
                                   Title:    Managing Director
                                         ---------------------
<PAGE>   156
                  Signature Page to United States Can Company
                                Credit Agreement

                           KEMPER FLOATING RATE FUND

                           By: /s/ KELLY D. BABSON
                             ---------------------------
                           Name:   Kelly D. Babson
                                ------------------------
                           Title:  Managing Director
                                 -----------------------
<PAGE>   157
                  Signature Page to United States Can Company
                                Credit Agreement

                                             FLEET NATIONAL BANK AS TRUST
                                             ADMINISTRATOR FOR LONG LANE MASTER
                                             TRUST IV

                                             By: /s/ RENEE ROSS NADLER
                                                 -------------------------------
                                             Name:   Renee Ross Nadler
                                                  -----------------------------
                                             Title:  Managing Director
                                                   ----------------------------
<PAGE>   158
                  Signature Page to United States Can Company
                                Credit Agreement

                                                    MUIRFIELD TRADING LLC

                                                    By: /s/ ANN E. MORRIS
                                                       -------------------------
                                                    Name:   Ann E. Morris
                                                         -----------------------
                                                    Title:  Asst. Vice President
                                                          ----------------------
<PAGE>   159
                  Signature Page to United States Can Company
                                Credit Agreement

                                   SEQUILS-CUMBERLAND I, LTD.

                                   By:  Springfield Asset Management, L.L.C.
                                        as its Collateral Manager

                                   By: /s/ DALE BURROW
                                      -----------------------------

                                   Name:  Dale Burrow
                                        ---------------------------

                                   Title:  Senior Portfolio Manager
                                         --------------------------
<PAGE>   160
                  Signature Page to United States Can Company
                                Credit Agreement

                                   OLYMPIC FUNDING TRUST, SERIES 1999-1

                                   By: /s/ ANN E. MORRIS
                                      --------------------------

                                   Name:  Ann E. Morris
                                        ------------------------

                                   Title:  Authorized Agent
                                         -----------------------
<PAGE>   161
                  Signature Page to United States Can Company
                                Credit Agreement

                                   STEIN ROE FLOATING RATE LIMITED LIABILITY
                                   COMPANY

                                   By: /s/ JAMES R. FELLOWS
                                      -----------------------------------------

                                   Name:  James R. Fellows
                                        ---------------------------------------

                                   Title:  Senior Vice President
                                           Stein Roe & Farnham Incorporated,
                                           as Advisor to the Stein Roe Floating
                                           Rate Limited Liability Company
                                         --------------------------------------
<PAGE>   162
                  Signature Page to United States Can Company
                                Credit Agreement

<TABLE>
<S>                                      <C>
                                         LIBERTY-STEIN ROE ADVISOR FLOATING RATE
                                         ADVANTAGE FUND

                                         By:   Stein Roe & Farnham Incorporated, as Advisor

                                         By: /s/ JAMES R. FELLOWS
                                            --------------------------
                                         Name: James R. Fellows
                                              ------------------------
                                         Title: Sr. Vice President & Portfolio Manager
</TABLE>
<PAGE>   163
                  Signature Page to United States Can Company
                                Credit Agreement

<TABLE>
<S>                                          <C>
                                             THE SUMITOMO TRUST AND BANKING CO., LTD.

                                             By: /s/ STEPHEN A. STRATICO
                                                ----------------------------
                                             Name: Stephen A. Stratico
                                                  --------------------------
                                             Title: Vice President
                                                   -------------------------
</TABLE>
<PAGE>   164
                  Signature Page to United States Can Company
                                Credit Agreement

                                   KZH SOLEIL-2 LLC

                                   By: /s/ SUSAN LEE
                                      --------------------------

                                   Name:  Susan Lee
                                        ------------------------

                                   Title:  Authorized Agent
                                         -----------------------
<PAGE>   165
                  Signature Page to United States Can Company
                                Credit Agreement

                         VAN KAMPEN SENIOR INCOME TRUST

                         By:  Van Kampen Investment Advisory Corp.

                         By:    /s/BRIAN BUSCHER
                                ----------------------------------
                         Name:     Brian T. Buscher
                                ----------------------------------
                         Title:    Manager Operations & Compliance
                                ----------------------------------
<PAGE>   166
                  Signature Page to United States Can Company
                                Credit Agreement

                           WINGED FOOT FUNDING TRUST

                           By: /s/ ANN E. MORRIS
                               ----------------------
                           Name:   Ann E. Morris
                                ---------------------
                           Title:  Authorized Agent
                                ---------------------

<PAGE>   167

                                                                 Exhibit 2.1(b)
                                                                      to
                                                                Credit Agreement

                           FORM OF NOTICE OF BORROWING

TO:      BANK OF AMERICA, N.A., as Administrative Agent
         101 North Tryon Street
         NC1-001-15-04
         Charlotte, North Carolina  28255

RE:      Credit Agreement dated as of October 4, 2000 among United States Can
         Company (the "Borrower"), the Foreign Subsidiary Borrowers party
         thereto, U.S. Can Corporation and each of the Domestic Subsidiaries of
         U.S. Can Corporation, as Domestic Guarantors, Bank of America, N.A., as
         Administrative Agent, CitiCorp North America, Inc., as Syndication
         Agent, Bank One, NA (Main Office Chicago), as Documentation Agent, and
         the Lenders party thereto (as the same may be amended, modified,
         extended, supplemented or restated from time to time, the "Credit
         Agreement")

DATE:    _____________,____

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

1.    This Notice of Borrowing is made pursuant to the terms of the Credit
      Agreement. All capitalized terms used herein unless otherwise defined
      shall have the meanings set forth in the Credit Agreement.

2.    Please be advised that the Borrower is requesting Revolving Loans in the
      amount of $__________ to be funded on ____________, at the interest rate
      option set forth in paragraph 3 below. Subsequent to the funding of the
      requested Revolving Loans, the aggregate principal amount of Revolving
      Loans outstanding plus LOC Obligations outstanding plus Swing Line Loans
      outstanding plus the U.S. Dollar Equivalent of Foreign Currency Loans
      outstanding will be $______________, which is less than or equal to the
      Revolving Committed Amount.

3.    The interest rate option applicable to the requested Revolving Loans shall
      be:

      a.    ________   the Adjusted Base Rate

      b.    ________   the Adjusted Eurodollar Rate for an Interest Period of:

                       ________ one month
                       ________ two months
                       ________ three months
                       ________ six months

<PAGE>   168

4.    The representations and warranties made by the Credit Parties in the
      Credit Documents are true and correct in all material respects at and as
      if made on the date hereof except to the extent they expressly relate to
      an earlier date.

5.    As of the date hereof, no Default or Event of Default has occurred and is
      continuing either prior to or after giving effect to the Revolving Loans
      requested by this Notice of Borrowing.

6.    Since December 31, 1999, there has been no development or event relating
      to or affecting a Credit Party or any of its Subsidiaries that has had or
      could be reasonably expected to have a Material Adverse Effect.

                                     UNITED STATES CAN COMPANY,
                                     a Delaware corporation

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

<PAGE>   169

                                                                 Exhibit 2.1(e)
                                                                       to
                                                                Credit Agreement

                                     FORM OF
                                 REVOLVING NOTE

Lender: ___________________                                 ______________, 2000

      FOR VALUE RECEIVED, United States Can Company, a Delaware corporation (the
"Borrower"), hereby promises to pay to the order of the Lender set forth above
(the "Lender"), at the office of Bank of America, N.A. (the "Administrative
Agent") as set forth in that certain Credit Agreement dated as of October 4,
2000 among the Borrower, the Foreign Subsidiary Borrowers party thereto, U.S.
Can Corporation, a Delaware corporation, and each of the Domestic Subsidiaries
of U.S. Can Corporation, as Domestic Guarantors, the Lenders party thereto
(including the Lender), the Administrative Agent, CitiCorp North America, Inc.,
as Syndication Agent and Bank One, NA (Main Office Chicago), as Documentation
Agent (as amended, modified, extended, supplemented or restated from time to
time, the "Credit Agreement"), the aggregate unpaid principal amount of the
Revolving Loans made by the Lender to the Borrower under the Credit Agreement,
in lawful money of the United States of America and in immediately available
funds, on the dates and in the principal amounts provided in the Credit
Agreement, and to pay interest on the unpaid principal amount of each such
Revolving Loan, at such office, in like money and funds, for the period
commencing on the date of such Revolving Loan until such Revolving Loan shall be
paid in full, at the rates per annum and on the dates provided in the Credit
Agreement.

      This Note is one of the Revolving Notes referred to in the Credit
Agreement and evidences Revolving Loans made by the Lender thereunder.
Capitalized terms used in this Revolving Note and not otherwise defined shall
have the respective meanings assigned to them in the Credit Agreement and the
terms and conditions of the Credit Agreement are expressly incorporated herein
and made a part hereof.

      The Credit Agreement provides for the acceleration of the maturity of the
Revolving Loans evidenced by this Revolving Note upon the occurrence of certain
events (and for payment of collection costs in connection therewith) and for
prepayments of Revolving Loans upon the terms and conditions specified therein.
In the event this Revolving Note is not paid when due at any stated or
accelerated maturity, the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorney fees.

      The date, amount, type, interest rate and duration of the Interest Period
(if applicable) of each Revolving Loan made by the Lender to the Borrower, and
each payment made on account of the principal thereof, shall be recorded by the
Lender on its books; provided that the failure of the Lender to make any such
recordation or endorsement shall not affect the obligations of the Borrower to
make a payment when due of any amount owing under the Credit Agreement or under
this Revolving Note in respect of the Revolving Loans to be evidenced by this
Revolving Note, and each such recordation or endorsement shall be prima facie
evidence of such information.

<PAGE>   170

      This Revolving Note and the Revolving Loans evidenced hereby may be
transferred in whole or in part only by registration of such transfer on the
Register maintained for such purpose as provided in Section 11.3(c) of the
Credit Agreement.

      THIS REVOLVING NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

      IN WITNESS WHEREOF, the Borrower has duly executed this Revolving Note as
of the date first above written.

                                        UNITED STATES CAN COMPANY,
                                        a Delaware corporation

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

<PAGE>   171

                                                                 Exhibit 2.3(d)
                                                                      to
                                                                Credit Agreement

                                     FORM OF
                               TRANCHE A TERM NOTE

Lender: ___________________                                  _____________, 2000

      FOR VALUE RECEIVED, United States Can Company, a Delaware corporation (the
"Borrower"), hereby promises to pay to the order of the Lender set forth above
(the "Lender") and its registered assigns, at the office of Bank of America,
N.A. (the "Administrative Agent") as set forth in that certain Credit Agreement
dated as of October 4, 2000 among the Borrower, the Foreign Subsidiary Borrowers
party thereto, U.S. Can Corporation, a Delaware corporation, and each of the
Domestic Subsidiaries of U.S. Can Corporation, as Domestic Guarantors, the
Lenders party thereto (including the Lender), the Administrative Agent, CitiCorp
North America, Inc., as Syndication Agent and Bank One, NA (Main Office
Chicago), as Documentation Agent (as amended, modified, extended, supplemented
or restated from time to time, the "Credit Agreement"), the aggregate unpaid
principal amount of the Tranche A Term Loan made by the Lender to the Borrower
under the Credit Agreement, in lawful money of the United States of America and
in immediately available funds, on the dates and in the principal amounts
provided in the Credit Agreement, and to pay interest on the unpaid principal
amount of such Tranche A Term Loan, at such office, in like money and funds, for
the period commencing on the date of such Tranche A Term Loan until such Tranche
A Term Loan shall be paid in full, at the rates per annum and on the dates
provided in the Credit Agreement.

      This Note is one of the Tranche A Term Notes referred to in the Credit
Agreement and evidences the Tranche A Term Loan made by the Lender thereunder.
Capitalized terms used in this Tranche A Term Note and not otherwise defined
shall have the respective meanings assigned to them in the Credit Agreement and
the terms and conditions of the Credit Agreement are expressly incorporated
herein and made a part hereof.

      The Credit Agreement provides for the acceleration of the maturity of the
Tranche A Term Loan evidenced by this Tranche A Term Note upon the occurrence of
certain events (and for payment of collection costs in connection therewith) and
for prepayments of such Tranche A Term Loan upon the terms and conditions
specified therein. In the event this Tranche A Term Note is not paid when due at
any stated or accelerated maturity, the Borrower agrees to pay, in addition to
the principal and interest, all costs of collection, including reasonable
attorney fees.

      The date, amount, type, interest rate and duration of the Interest Period
(if applicable) of the Tranche A Term Loan made by the Lender to the Borrower,
and each payment made on account of the principal thereof, shall be recorded by
the Lender on its books; provided that the failure of the Lender to make any
such recordation or endorsement shall not affect the obligations of the Borrower
to make a payment when due of any amount owing under the Credit Agreement or
under this Tranche A Term Note in respect of the Tranche A Term Loan to be
evidenced by this Tranche A Term Note, and each such recordation or endorsement
shall be prima facie evidence of such information.

<PAGE>   172

      This Tranche A Term Note and the Tranche A Term Loan evidenced hereby may
be transferred in whole or in part only by registration of such transfer on the
Register maintained for such purpose as provided in Section 11.3(c) of the
Credit Agreement.

      THIS TRANCHE A TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

      IN WITNESS WHEREOF, the Borrower has duly executed this Tranche A Term
Note as of the date first above written.

                                        UNITED STATES CAN COMPANY,
                                        a Delaware corporation

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

<PAGE>   173

                                                                 Exhibit 2.4(d)
                                                                       to
                                                                Credit Agreement

                                     FORM OF
                               TRANCHE B TERM NOTE

Lender: ___________________                                  _____________, 2000

      FOR VALUE RECEIVED, United States Can Company, a Delaware corporation (the
"Borrower"), hereby promises to pay to the order of the Lender set forth above
(the "Lender") and its registered assigns, at the office of Bank of America,
N.A. (the "Administrative Agent") as set forth in that certain Credit Agreement
dated as of October 4, 2000 among the Borrower, the Foreign Subsidiary Borrowers
party thereto, U.S. Can Corporation, a Delaware corporation, and each of the
Domestic Subsidiaries of U.S. Can Corporation, as Domestic Guarantors, the
Lenders party thereto (including the Lender), the Administrative Agent, CitiCorp
North America, Inc., as Syndication Agent and Bank One, NA (Main Office
Chicago), as Documentation Agent (as amended, modified, extended, supplemented
or restated from time to time, the "Credit Agreement"), the aggregate unpaid
principal amount of the Tranche B Term Loan made by the Lender to the Borrower
under the Credit Agreement, in lawful money of the United States of America and
in immediately available funds, on the dates and in the principal amounts
provided in the Credit Agreement, and to pay interest on the unpaid principal
amount of such Tranche B Term Loan, at such office, in like money and funds, for
the period commencing on the date of such Tranche B Term Loan until such Tranche
B Term Loan shall be paid in full, at the rates per annum and on the dates
provided in the Credit Agreement.

      This Note is one of the Tranche B Term Notes referred to in the Credit
Agreement and evidences the Tranche B Term Loan made by the Lender thereunder.
Capitalized terms used in this Tranche B Term Note and not otherwise defined
shall have the respective meanings assigned to them in the Credit Agreement and
the terms and conditions of the Credit Agreement are expressly incorporated
herein and made a part hereof.

      The Credit Agreement provides for the acceleration of the maturity of the
Tranche B Term Loan evidenced by this Tranche B Term Note upon the occurrence of
certain events (and for payment of collection costs in connection therewith) and
for prepayments of such Tranche B Term Loan upon the terms and conditions
specified therein. In the event this Tranche B Term Note is not paid when due at
any stated or accelerated maturity, the Borrower agrees to pay, in addition to
the principal and interest, all costs of collection, including reasonable
attorney fees.

      The date, amount, type, interest rate and duration of the Interest Period
(if applicable) of the Tranche B Term Loan made by the Lender to the Borrower,
and each payment made on account of the principal thereof, shall be recorded by
the Lender on its books; provided that the failure of the Lender to make any
such recordation or endorsement shall not affect the obligations of the Borrower
to make a payment when due of any amount owing under the Credit Agreement or
under this Tranche B Term Note in respect of the Tranche B Term Loan to be
evidenced by this Tranche B Term Note, and each such recordation or endorsement
shall be prima facie evidence of such information.

<PAGE>   174

      This Tranche B Term Note and the Tranche B Term Loan evidenced hereby may
be transferred in whole or in part only by registration of such transfer on the
Register maintained for such purpose as provided in Section 11.3(c) of the
Credit Agreement.

      THIS TRANCHE B TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

      IN WITNESS WHEREOF, the Borrower has duly executed this Tranche B Term
Note as of the date first above written.

                                        UNITED STATES CAN COMPANY,
                                        a Delaware corporation

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

<PAGE>   175

                                                                 Exhibit 2.5(b)
                                                                       to
                                                                Credit Agreement

                         FORM OF SWING LINE LOAN REQUEST

TO:       BANK OF AMERICA, N.A., as Administrative Agent
          101 North Tryon Street
          NC1-001-15-04
          Charlotte, North Carolina 28255

RE:       Credit Agreement dated as of October 4, 2000 among United States Can
          Company (the "Borrower"), the Foreign Subsidiary Borrowers party
          thereto, U.S. Can Corporation and each of the Domestic Subsidiaries of
          U.S. Can Corporation, as Domestic Guarantors, Bank of America, N.A.,
          as Administrative Agent, CitiCorp North America, Inc., as Syndication
          Agent, Bank One, NA (Main Office Chicago), as Documentation Agent, and
          the Lenders party thereto (as the same may be amended, modified,
          extended, supplemented or restated from time to time, the "Credit
          Agreement")

DATE:     _____________, ____

1.    This Swing Line Loan Request is made pursuant to the terms of the Credit
      Agreement. All capitalized terms used herein unless otherwise defined
      shall have the meanings set forth in the Credit Agreement.

2.    Please be advised that the Borrower is requesting a Swing Line Loan on the
      terms set forth below:

          (A)   Date of requested Swing Line
                Loan                            ____________________

          (B)   Principal amount of requested
                Swing Line Loan                 ____________________

3.    Subsequent to the funding of the requested Swing Line Loan, (a) the
      aggregate principal amount of Swing Line Loans outstanding plus Revolving
      Loans outstanding plus LOC Obligations outstanding plus the U.S. Dollar
      Equivalent of Foreign Currency Loans outstanding will be $______________,
      which is less than or equal to the Revolving Committed Amount and (b) the
      aggregate principal amount of Swing Line Loans outstanding will be
      $______________, which is less than or equal to the Swing Line Committed
      Amount.

<PAGE>   176

4.    The representations and warranties made by the Credit Parties in the
      Credit Documents are true and correct in all material respects at and as
      if made on the date hereof except to the extent they expressly relate to
      an earlier date.

5.    As of the date hereof, no Default or Event of Default has occurred and is
      continuing either prior to or after giving effect to the Swing Line Loans
      requested by this Swing Line Loan Request.

6.    Since December 31, 1999, there has been no development or event relating
      to or affecting a Credit Party or any of its Subsidiaries that has had or
      could be reasonably expected to have a Material Adverse Effect.

                                        UNITED STATES CAN COMPANY,
                                        a Delaware corporation

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

<PAGE>   177

                                                                 Exhibit 2.5(d)
                                                                       to
                                                                Credit Agreement

                                     FORM OF
                              SWING LINE LOAN NOTE

                                                                __________, 2000

      FOR VALUE RECEIVED, United States Can Company, a Delaware corporation (the
"Borrower"), hereby promises to pay to the order of Bank of America, N.A. (the
"Swing Line Lender") and its registered assigns, at the office of Bank of
America, N.A. (the "Administrative Agent") as set forth in that certain Credit
Agreement dated as of October 4, 2000 among the Borrower, the Foreign Subsidiary
Borrowers party thereto, U.S. Can Corporation, a Delaware corporation, and each
of the Domestic Subsidiaries of U.S. Can Corporation, as Domestic Guarantors,
the Lenders party thereto (including the Swing Line Lender), the Administrative
Agent, CitiCorp North America, Inc., as Syndication Agent and Bank One, NA (Main
Office Chicago), as Documentation Agent (as, amended, modified, extended,
supplemented or restated from time to time, the "Credit Agreement"), the
aggregate unpaid principal amount of the Swing Line Loans made by the Swing Line
Lender to the Borrower under the Credit Agreement, in lawful money of the United
States of America and in immediately available funds, on the dates and in the
principal amounts provided in the Credit Agreement, and to pay interest on the
unpaid principal amount of each such Swing Line Loan, at such office, in like
money and funds, for the period commencing on the date of such Swing Line Loan
until such Swing Line Loan shall be paid in full, at the rates per annum and on
the dates provided in the Credit Agreement.

      This Note is the Swing Line Loan Note referred to in the Credit Agreement
and evidences the Swing Line Loans made by the Swing Line Lender thereunder.
Capitalized terms used in this Swing Line Loan Note and not otherwise defined
shall have the respective meanings assigned to them in the Credit Agreement and
the terms and conditions of the Credit Agreement are expressly incorporated
herein and made a part hereof.

      The Credit Agreement provides for the acceleration of the maturity of the
Swing Line Loans evidenced by this Swing Line Loan Note upon the occurrence of
certain events (and for payment of collection costs in connection therewith) and
for prepayments of such Swing Line Loans upon the terms and conditions specified
therein. In the event this Swing Line Loan Note is not paid when due at any
stated or accelerated maturity, the Borrower agrees to pay, in addition to the
principal and interest, all costs of collection, including reasonable attorney
fees.

      The date, amount, type and interest rate of the Swing Line Loans made by
the Swing Line Lender to the Borrower, and each payment made on account of the
principal thereof, shall be recorded by the Swing Line Lender on its books;
provided that the failure of the Swing Line Lender to make any such recordation
or endorsement shall not affect the obligations of the Borrower to make a
payment when due of any amount owing under the Credit Agreement or under this
Swing Line Loan Note in respect of the Swing Line Loans to be evidenced by this

<PAGE>   178

Swing Line Loan Note, and each such recordation or endorsement shall be prima
facie evidence of such information.

      This Swing Line Loan Note and the Swing Line Loans evidenced hereby may be
transferred in whole or in part only by registration of such transfer on the
Register maintained for such purpose as provided in Section 11.3(c) of the
Credit Agreement.

      THIS SWING LINE LOAN NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

      IN WITNESS WHEREOF, the Borrower has duly executed this Swing Line Loan
Note as of the date first above written.

                                        UNITED STATES CAN COMPANY,
                                        a Delaware corporation

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

<PAGE>   179

                                                                 Exhibit 2.6(b)
                                                                       to
                                                                Credit Agreement

          FORM OF FOREIGN CURRENCY NOTICE OF BORROWING
          --------------------------------------------

TO:       BANK OF AMERICA, N.A., as Administrative Agent 101 North Tryon Street
          NC1-001-15-04 Charlotte, North Carolina 28255

RE:       Credit Agreement dated as of October 4, 2000 among United States Can
          Company (the "Borrower"), the Foreign Subsidiary Borrowers party
          thereto, U.S. Can Corporation and each of the Domestic Subsidiaries of
          U.S. Can Corporation, as Domestic Guarantors, Bank of America, N.A.,
          as Administrative Agent, CitiCorp North America, Inc., as Syndication
          Agent, Bank One, NA (Main Office Chicago), as Documentation Agent, and
          the Lenders party thereto (as the same may be amended, modified,
          extended, supplemented or restated from time to time, the "Credit
          Agreement")

DATE:     _____________,____

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

1.    This Foreign Currency Notice of Borrowing is made pursuant to the terms of
      the Credit Agreement. All capitalized terms used herein unless otherwise
      defined shall have the meanings set forth in the Credit Agreement.

2.    Please be advised that the Borrower is requesting a Foreign Currency Loan
      on the terms set forth below:

          (A)    Date of requested Foreign
                 Currency Loan                      ____________________

          (B)    Borrower or Foreign Subsidiary
                 Borrower receiving Foreign
                 Currency Loan                      ____________________

          (C)    Principal amount of requested
                 Foreign Currency Loan              ____________________

          (D)    Foreign Currency requested         ____________________

<PAGE>   180

          (E)    Account of the Borrower or
                 Foreign Subsidiary Borrower
                 in which Foreign Currency Loan
                 shall be funded
                                   Bank Number       ____________________
                                   Account Number    ____________________
                                   Account Name      ____________________

3.    Subsequent to the funding of the requested Foreign Currency Loans, (a) the
      sum of the U.S. Dollar Equivalent of Foreign Currency Loans outstanding
      plus Revolving Loans outstanding plus LOC Obligations outstanding plus
      Swing Line Loans outstanding will be $______________, which is less than
      or equal to the Revolving Committed Amount, (b) the sum of the U.S. Dollar
      Equivalent of Foreign Currency Loans outstanding will be $______________,
      which is less than or equal to the Foreign Currency Committed Amount and
      (c) the U.S. Dollar Equivalent of the aggregate amount of Foreign Currency
      Loans outstanding to the requesting Foreign Subsidiary Borrower (or to the
      Borrower) shall not exceed the sublimits set forth in Section 2.6(a).

4.    The interest rate option applicable to the requested Foreign Currency
      Loans shall be:

      a.    ________ the Adjusted Base Rate

      b.    ________ the Adjusted Eurodollar Rate for an Interest Period of:

                              ________ one month
                              ________ two months
                              ________ three months
                              ________ six months

5.    The representations and warranties made by the Credit Parties in the
      Credit Documents are true and correct in all material respects at and as
      if made on the date hereof except to the extent they expressly relate to
      an earlier date.

6.    As of the date hereof, no Default or Event of Default has occurred and is
      continuing either prior to or after giving effect to the Foreign Currency
      Loans requested by this Foreign Currency Notice of Borrowing.

7.    Since December 31, 1999, there has been no development or event relating
      to or affecting a Credit Party or any of its Subsidiaries that has had or
      could be reasonably expected to have a Material Adverse Effect.

                                        UNITED STATES CAN COMPANY,
                                        a Delaware corporation

                                        By:
                                           ------------------------------------
                                        Name:
                                             ----------------------------------
                                        Title:
                                              ---------------------------------
<PAGE>   181

                                                                 Exhibit 2.6(f)
                                                                       to
                                                                Credit Agreement

                        FORM OF FOREIGN JOINDER AGREEMENT

     THIS FOREIGN JOINDER AGREEMENT (this "Agreement"), dated as of
_____________, __________, is entered into between _____________________, a
___________________ (the "New Foreign Subsidiary Borrower") and BANK OF AMERICA,
N.A., in its capacity as Administrative Agent (the "Administrative Agent") under
that certain Credit Agreement, dated as of October 4, 2000 among United States
Can Company (the "Borrower"), U.S. Can Corporation and each of the Domestic
Subsidiaries of U.S. Can Corporation, as Domestic Guarantors, the Lenders party
thereto, the Administrative Agent, CitiCorp North America, Inc., as Syndication
Agent and Bank One, NA (Main Office Chicago), as Documentation Agent (as the
same may be amended, modified, extended, supplemented or restated from time to
time, the "Credit Agreement"). All capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Credit Agreement.

     The New Foreign Subsidiary Borrower and the Administrative Agent, for the
benefit of the Lenders, hereby agree as follows:

     1. The New Foreign Subsidiary Borrower hereby acknowledges, agrees and
confirms that, by its execution of this Agreement, the New Foreign Subsidiary
Borrower will be deemed to be a "Foreign Credit Party", a "Credit Party" and a
"Foreign Subsidiary Borrower" for all purposes of the Credit Agreement and shall
have all of the obligations of a Foreign Credit Party, Credit Party and Foreign
Subsidiary Borrower thereunder as if it had executed the Credit Agreement. The
New Foreign Subsidiary Borrower hereby ratifies, as of the date hereof (except
for representations and warranties that expressly relate to an earlier date),
and agrees to be bound by, all of the terms, provisions and conditions contained
in the Credit Agreement, including without limitation (a) all of the
representations and warranties of the Credit Parties set forth in Section 6 of
the Credit Agreement, (b) all of the affirmative and negative covenants set
forth in Sections 7 and 8 of the Credit Agreement and (c) the designation of
United States Can Company is its Service of Process Agent pursuant to Section
11.11(c) of the Credit Agreement.

     2. If required, the New Foreign Subsidiary Borrower is, simultaneously with
the execution of this Agreement, executing, or causing to be executed, and
delivering such Notes, Foreign Guaranty Agreements, Collateral Documents,
updated Schedules to the Credit Agreement and the other Credit Documents and
such other documents and instruments as requested by the Administrative Agent in
accordance with Section 2.6(f) and 7.13 of the Credit Agreement.

<PAGE>   182

     3. The address of the New Foreign Subsidiary Borrower for purposes of
Section 11.1 of the Credit Agreement is as follows:

                           ___________________________
                           ___________________________
                           ___________________________
                           ___________________________

     4. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be an original, but all of which
shall constitute one and the same instrument.

     5. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK.

     IN WITNESS WHEREOF, the New Foreign Subsidiary Borrower has caused this
Agreement to be duly executed by its authorized officer, and the Administrative
Agent, for the benefit of the Lenders, has caused the same to be accepted by its
authorized officer, as of the day and year first above written.

                                  [NEW FOREIGN SUBSIDIARY BORROWER]

                                  By: _______________________________
                                  Name: _____________________________
                                  Title: ____________________________

                                  [add required notarizations and attestations]

                                  Acknowledged and accepted:

                                  BANK OF AMERICA, N.A., as
                                    Administrative Agent

                                  By: _______________________________
                                  Name: _____________________________
                                  Title: ____________________________

<PAGE>   183

                                                                  Exhibit 2.7
                                                                       to
                                                                Credit Agreement

                    FORM OF NOTICE OF CONTINUATION/CONVERSION

TO:       BANK OF AMERICA, N.A., as Administrative Agent
          101 North Tryon Street
          NC1-001-15-04
          Charlotte, North Carolina  28255

RE:       Credit Agreement dated as of October 4, 2000 among United States Can
          Company (the "Borrower"), the Foreign Subsidiary Borrowers party
          thereto, U.S. Can Corporation and each of the Domestic Subsidiaries of
          U.S. Can Corporation, as Domestic Guarantors, Bank of America, N.A.,
          as Administrative Agent, CitiCorp North America, Inc., as Syndication
          Agent, Bank One, NA (Main Office Chicago), as Documentation Agent, and
          the Lenders party thereto (as the same may be amended, modified,
          extended, supplemented or restated from time to time, the "Credit
          Agreement")

DATE:     _____________, _____

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

1.   This Notice of Continuation/Conversion is made pursuant to the terms of the
     Credit Agreement. All capitalized terms used herein unless otherwise
     defined shall have the meanings set forth in the Credit Agreement.

2.   Please be advised that:

     ______    (a)  the Borrower is requesting that a portion of the current
                    outstanding Revolving Loans in the amount of $__________
                    currently accruing interest at _________ be extended or
                    converted as of _____________ at the interest rate option
                    set forth in paragraph 3 below.

     ______    (b)  the Borrower is requesting that a portion of the outstanding
                    Tranche A Term Loans in the amount of $__________ currently
                    accruing interest at ________ be extended or converted as of
                    ____________ at the interest rate option set forth in
                    paragraph 3 below.

<PAGE>   184

     ______    (c)  the Borrower is requesting that a portion of the outstanding
                    Tranche B Term Loans in the amount of $__________ currently
                    accruing interest at ________ be extended or converted as of
                    ____________ at the interest rate option set forth in
                    paragraph 3 below.

     ______    (d)  the Borrower is requesting that a portion of the outstanding
                    Foreign Currency Loans made to ________________ in the U.S.
                    Dollar Equivalent of $__________ currently accruing interest
                    at ________ in the following Foreign Currency: ____________
                    be extended or converted as of ____________ at the interest
                    rate option set forth in paragraph 3 below.

3.   The interest rate option applicable to the extension or conversion of all
     or part of the existing Revolving Loans, Tranche A Term Loans, Tranche B
     Term Loans or Foreign Currency Loans (as set forth above) shall be:

     a.   ________  the Adjusted Base Rate

     b.   ________  the Adjusted Eurodollar Rate for an Interest Period of:

                    ________ one month
                    ________ two months
                    ________ three months
                    ________ six months

4.   As of the date hereof, no Default or Event of Default has occurred and is
     continuing.

                                             UNITED STATES CAN COMPANY,
                                             a Delaware corporation

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

<PAGE>   185

                                                                 Exhibit 7.1(d)
                                                                       to
                                                                Credit Agreement

                          FORM OF OFFICER'S CERTIFICATE

     For the fiscal quarter/year ended _________________, ______.

     I, ______________________, chief financial officer of United States Can
Company (the "Borrower") hereby certify that, with respect to that certain
Credit Agreement dated as of October 4, 2000 (as it may be amended, modified,
extended, supplemented or restated from time to time, the "Credit Agreement";
all of the defined terms in the Credit Agreement are incorporated herein by
reference) among the Borrower, the Foreign Subsidiary Borrowers party thereto,
U.S. Can Corporation, a Delaware corporation, and each of the Domestic
Subsidiaries of U.S. Can Corporation, as Domestic Guarantors, the Lenders party
thereto, Bank of America, N.A., as Administrative Agent, CitiCorp North America,
Inc., as Syndication Agent and Bank One, NA (Main Office Chicago), as
Documentation Agent:

          a. Attached hereto as Schedule 1 are calculations demonstrating (i)
     compliance by the Credit Parties with the financial covenants contained in
     Section 7.11 of the Credit Agreement and (ii) the Senior Leverage Ratio, in
     each case as of the end of the fiscal period referred to above.

          b. The Pricing Level for purposes of the definition of Applicable
     Percentage is __________.

          c. The Debt Rating of the Borrower by S&P is ______ and by Moody's is
     ________.

          d. No Default or Event of Default has occurred and is existing under
     the Credit Agreement(1).

          e. The [annual][quarterly] financial statements which accompany this
     certificate fairly present in all material respects the financial condition
     of the Credit Parties and their Subsidiaries and have been prepared in
     accordance with GAAP, subject to changes resulting from audit and normal
     year-end audit adjustments.

----------------------
(1)  If a Default or Event of Default shall have occurred an explanation of such
Default or Event of Default shall be provided on a separate page together with
an explanation of the action taken or proposed to be taken by the Credit Parties
with respect thereto.

<PAGE>   186

          This certificate is executed as of ___________, 200__.

                                             UNITED STATES CAN COMPANY,
                                             a Delaware corporation

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

<PAGE>   187

                       SCHEDULE 1 TO OFFICER'S CERTIFICATE

     1.   Leverage Ratio

          (a)  Funded Debt                                       $
                                                                  ------------
          (b)  EBITDA (see Rider A attached hereto)              $
                                                                  ------------
          (c)  Leverage Ratio [(a)/(b)]                               :1.0
                                                                  ------------

     2.   Interest Coverage Ratio

          (a)  EBITDA (See Rider A attached hereto)              $
                                                                  ------------
          (b)  Interest Expense                                  $
                                                                  ------------
          (c)  Interest Coverage Ratio [(a)/(b)]                 $    :1.0
                                                                  ------------

     3.   Fixed Charge Coverage Ratio

          (a)  EBITDA (See Rider A attached hereto)              $
                                                                  ------------
          (b)  Capital Expenditures                              $
                                                                  ------------
          (c)  Cash Taxes                                        $
                                                                  ------------
          (d)  [(a)-(b)-(c)]                                     $
                                                                  ------------
          (e)  Interest Expense                                  $
                                                                  ------------
          (f)  Scheduled Funded Debt Payments                    $
                                                                  ------------
          (g)  [(e)+(f)]                                         $
                                                                  ------------
          (h)  Fixed Charge Coverage Ratio [(d)/(g)]                  :1.0
                                                                  ------------

     4.   Minimum EBITDA

          (a)  EBITDA (See Rider A attached hereto)              $
                                                                  ------------

<PAGE>   188

     5.   Senior Leverage Ratio

          (a)  Funded Debt                                       $
                                                                  ------------
          (b)  Subordinated Debt                                 $
                                                                  ------------
          (c)  EBITDA (See Rider A attached hereto)              $
                                                                  ------------
          (d)  Senior Leverage Ratio [(a)-(b)/(c)]               $
                                                                  ------------

<PAGE>   189

                        RIDER A TO OFFICER'S CERTIFICATE

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
                                 Twelve
                                 Months       Quarter       Quarter        Quarter       Quarter
          EBITDA                 Ended         Ended         Ended          Ended         Ended
          ------
------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>           <C>            <C>           <C>
Net Income
------------------------------------------------------------------------------------------------------
- Extraordinary Gains
------------------------------------------------------------------------------------------------------
+ Interest Expense
------------------------------------------------------------------------------------------------------
+ Taxes
------------------------------------------------------------------------------------------------------
+ Restructuring Charges
------------------------------------------------------------------------------------------------------
+ Depreciation
------------------------------------------------------------------------------------------------------
+ Amortization
------------------------------------------------------------------------------------------------------
+ Extraordinary Non-Cash
Losses From Sale of
Property
------------------------------------------------------------------------------------------------------
+ Cash Restructuring
Proceeds (as limited by
the Credit Agreement)
------------------------------------------------------------------------------------------------------
- Cash Restructuring
Expenditures
------------------------------------------------------------------------------------------------------
+Pro Forma EBITDA
Adjustments, if
applicable
------------------------------------------------------------------------------------------------------
= EBITDA
------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   190

                                                                 Exhibit 7.13(a)
                                                                       to
                                                                Credit Agreement

                            FORM OF JOINDER AGREEMENT

     THIS JOINDER AGREEMENT (this "Agreement"), dated as of _____________,
______, is entered into between _____________________, a ___________________
(the "New Subsidiary") and BANK OF AMERICA, N.A., in its capacity as
Administrative Agent (the "Administrative Agent") under that certain Credit
Agreement, dated as of October 4, 2000 among United States Can Company (the
"Borrower"), U.S. Can Corporation and each of the Domestic Subsidiaries of U.S.
Can Corporation, as Domestic Guarantors, the Lenders party thereto, the
Administrative Agent, CitiCorp North America, Inc., as Syndication Agent and
Bank One, NA (Main Office Chicago), as Documentation Agent (as the same may be
amended, modified, extended, supplemented or restated from time to time, the
"Credit Agreement"). All capitalized terms used herein and not otherwise defined
shall have the meanings set forth in the Credit Agreement.

     The New Subsidiary and the Administrative Agent, for the benefit of the
Lenders, hereby agree as follows:

     1. The New Subsidiary hereby acknowledges, agrees and confirms that, by its
execution of this Agreement, the New Subsidiary will be deemed to be a "Domestic
Credit Party", "Credit Party" and a "Guarantor" for all purposes of the Credit
Agreement and shall have all of the obligations of a Guarantor thereunder as if
it had executed the Credit Agreement. The New Subsidiary hereby ratifies, as of
the date hereof (except for representations and warranties that expressly relate
to an earlier date), and agrees to be bound by, all of the terms, provisions and
conditions contained in the Credit Agreement, including without limitation (a)
all of the representations and warranties of the Credit Parties set forth in
Section 6 of the Credit Agreement, (b) all of the affirmative and negative
covenants set forth in Sections 7 and 8 of the Credit Agreement and (c) all of
the guaranty obligations set forth in Section 4 of the Credit Agreement. Without
limiting the generality of the foregoing terms of this paragraph 1, the New
Subsidiary, subject to the limitations set forth in Section 4.7 of the Credit
Agreement, hereby guarantees, jointly and severally with the other Guarantors,
to the Agents and the Lenders, as provided in Section 4 of the Credit Agreement,
the prompt payment and performance of the Credit Party Obligations in full when
due (whether at stated maturity, as a mandatory prepayment, by acceleration or
otherwise) strictly in accordance with the terms thereof. Without limiting the
generality of the foregoing terms of this paragraph 1, the New Subsidiary hereby
(i) acknowledges, agrees and confirms that, by its execution of this Agreement,
the New Subsidiary will be deemed a party to the Security Agreement as an
"Obligor" and a party to the Pledge Agreement as a "Pledgor", (ii) acknowledges
and agrees that its obligations under the Credit Agreement and the other Credit
Documents are secured in accordance with the terms of the Security Agreement,
the Pledge Agreement and the other Collateral Documents and that the Agents and
the Lenders may exercise their remedies thereunder in accordance with the terms
thereof, (iii) grants to the Collateral Agent, for the benefit of the Lenders, a
continuing security interest in, and a right to set off against, any and all
right, title and interest of the New Subsidiary in and to the Collateral (as
defined in the Security Agreement) and (iv) pledges and grants to the Collateral
Agent, for the benefit of the Lenders, a security interest in the Pledged
Capital Stock (as defined in the Pledge

<PAGE>   191

Agreement) identified on Schedule A attached hereto and all of its Pledged
Collateral (as defined in the Pledge Agreement). The New Subsidiary hereby
represents and warrants to the Administrative Agent and the Lenders that (A) set
forth on Schedule B attached hereto is a complete and accurate list of all
Subsidiaries of the New Subsidiary, (B) set forth on Schedule C attached hereto
is a list of all registered Intellectual Property and all other material
Intellectual Property owned by the New Subsidiary or that the New Subsidiary has
a right to use, (C) set forth on Schedule D attached hereto is (I) a list of all
Real Properties of the New Subsidiary, (II) all locations where any personal
property of the New Subsidiary is located and (III) the chief executive office
and principal place of business of the New Subsidiary and (D) set forth on
Schedule E attached hereto are any tradenames of the New Subsidiary. Each of
Schedules 6.15, 6.19, 6.27(a), 6.27(b) and 6.27(c) of the Credit Agreement and
Schedule 4(c) of the Security Agreement are hereby deemed amended to include the
information on Schedule B through Schedule E attached hereto, as applicable.

     2. If required, the New Subsidiary is, simultaneously with the execution of
this Agreement, executing and delivering such Collateral Documents (and such
other documents and instruments) as requested by the Administrative Agent in
accordance with Section 7.13 of the Credit Agreement.

     3. The address of the New Subsidiary for purposes of Section 11.1 of the
Credit Agreement is the same address as the Borrower.

     4. The New Subsidiary hereby waives acceptance by the Agents and the
Lenders of the guaranty by the New Subsidiary under the Credit Agreement upon
the execution of this Agreement by the New Subsidiary.

     5. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be an original, but all of which
shall constitute one and the same instrument.

     6. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK.

     IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly
executed by its authorized officer, and the Administrative Agent, for the
benefit of the Lenders, has caused the same to be accepted by its authorized
officer, as of the day and year first above written.

                                             [NEW SUBSIDIARY]

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

                                             Acknowledged and accepted:

                                             BANK OF AMERICA, N.A., as
                                               Administrative Agent

<PAGE>   192

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

<PAGE>   193

                                                                 Exhibit 11.3(b)
                                                                       to
                                                                Credit Agreement

                                     FORM OF
                              ASSIGNMENT AGREEMENT

     Reference is made to that certain Credit Agreement dated as of October 4,
2000 (as the same may be amended, modified, extended, supplemented or restated
from time to time, the "Credit Agreement") among United States Can Company (the
"Borrower"), U.S. Can Corporation and each of the Domestic Subsidiaries of U.S.
Can Corporation, as Domestic Guarantors, the Lenders identified therein, Bank of
America, N.A., as Administrative Agent, CitiCorp North America, Inc., as
Syndication Agent and Bank One, NA (Main Office Chicago), as Documentation
Agent. All capitalized terms used herein and not otherwise defined shall have
the meanings set forth in the Credit Agreement.

     1. The Assignor (as defined below) hereby sells and assigns, without
recourse and without representation or warranty except as expressly set forth
herein, to the Assignee (as defined below), and the Assignee hereby purchases
and assumes, without recourse, from the Assignor, effective as of effective date
of the assignment as designated below (the "Effective Date"), the interests set
forth below (the "Assigned Interest") in the Assignor's rights and obligations
under the Credit Agreement, including, without limitation, (a) the interests set
forth below in the Revolving Loan Commitment Percentage, the Tranche A Term Loan
Commitment Percentage of the Assignor and the Tranche B Term Loan Commitment
Percentage of the Assignor on the Effective Date, (b) the Loans owing to the
Assignor in connection with the Assigned Interest which are outstanding on the
Effective Date, (c) the Assignor's Participation Interests in all Letters of
Credit as of the Effective Date and the rights and obligations appurtenant
thereto under the LOC Documents, and (d) the Assignor's Participation Interests
in any Swing Line Loan or Foreign Currency Loan as of the Effective Date and the
rights and obligations appurtenant thereto. Periodic payments made with respect
to the Assigned Interest which (i) accrued prior to the Effective Date shall be
remitted to the Assignor and (ii) accrue from and after the Effective Date shall
be remitted to the Assignee. From and after the Effective Date, the Assignee, if
it is not already a Lender under the Credit Agreement, shall become a "Lender"
for all purposes of the Credit Agreement and the other Credit Documents and, to
the extent of such assignment, the assigning Lender shall be relieved of its
obligations under the Credit Agreement.

     2. The Assignor (a) represents and warrants to the Assignee that it is the
holder of the Assigned Interest, and the Loans and Participation Interests
related thereto, and it has not previously transferred or encumbered such
Assigned Interest, Loans or Participation Interests; (b) makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Documents
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Documents or any other instrument or document furnished
pursuant thereto; and (c) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Credit Party or
the performance or observance by any Credit Party of any of its obligations
under the Credit Documents or any other instrument or document furnished
pursuant thereto.

<PAGE>   194

     3. The Assignee (a) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Sections 5.1(d) and 7.1 thereof and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter
into this Assignment and Acceptance; (b) agrees that it will, independently and
without reliance upon the Agents, the Assignor or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Credit Agreement; (c) confirms that it is an Eligible Assignee; (d) appoints
and authorizes each of the Agents to take such action as agent on its behalf and
to exercise such powers and discretion under the Credit Documents as are
delegated to such Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (e) agrees that it will perform
in accordance with their terms all of the obligations that by the terms of the
Credit Agreement are required to be performed by it as a Lender; and (f)
attaches any U.S. Internal Revenue Service or other forms required under Section
3.13 of the Credit Agreement.

     4. This Assignment and Acceptance shall be effective only upon (a) the
consent of the Borrower, the Administrative Agent and the Issuing Lender to the
extent required under the definition of Eligible Assignee or under Section
11.3(b) of the Credit Agreement and (b) delivery to the Administrative Agent of
this Assignment and Acceptance together with the transfer fees, if applicable,
set forth in Section 11.3(b) of the Credit Agreement.

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

     6. Terms of Assignment

        (a)    Date of Assignment                             __________________

        (b)    Legal Name of Assignor                         __________________

        (c)    Legal Name of Assignee                         __________________

        (d)    Effective Date of Assignment                   __________________

        (e)    Revolving Loan Commitment
               Percentage assigned                                _____________%

        (f)    Total Revolving Loans
               outstanding as of Effective Date                  $______________

        (g)    Principal amount of Revolving
               Loans assigned on Effective
               Date (the amount set forth
               in (f) multiplied by the
               percentage set forth in (e))                      $______________

        (h)    Revolving Committed Amount                        $______________

<PAGE>   195

        (i)    Principal amount of Revolving
               Committed Amount assigned on
               the Effective Date (the amount
               set forth in (h) multiplied by
               the percentage set forth in (e))                  $______________

        (j)    Tranche A Term Loan Commitment
               Percentage assigned                                _____________%

        (k)    Total Tranche A Term Loans
               outstanding as of Effective Date                  $______________

        (l)    Principal amount of Tranche A
               Term Loans assigned on Effective
               Date (the amount set forth
               in (k) multiplied by the
               percentage set forth in (j))                      $______________

        (m)    Tranche A Term Loan Committed
               Amount                                            $______________

        (n)    Principal amount of Tranche A Term
               Loan Committed Amount assigned on
               the Effective Date (the amount set forth in
               (m) multiplied by the percentage set
               forth in (j))                                     $______________

        (o)    Tranche B Term Loan Commitment
               Percentage assigned                                _____________%

        (p)    Total Tranche B Term Loans
               outstanding as of Effective Date                  $______________

        (q)    Principal amount of Tranche B
               Term Loans assigned on Effective
               Date (the amount set forth
               in (p) multiplied by the
               percentage set forth in (o))                      $______________

        (r)    Tranche B Term Loan Committed
               Amount                                            $______________

<PAGE>   196

        (s)    Principal Amount of Tranche B Term
               Loan Committed Amount Assigned on the
               Effective Date (the amount set forth in (r)
               multiplied by the percentage set forth in (o))    $______________

        (t)    Total Swing Line Loans outstanding as of
               Effective Date                                    $______________

        (u)    Participation Interest in outstanding Swing
               Line Loans assigned on Effective Date
               (the amount set forth in (t) multiplied by the
               percentage set forth in (e))                      $______________

        (v)    Total U.S. Dollar Equivalent of Foreign
               Currency Loans outstanding as of Effective Date   $______________

        (w)    Participation Interests in outstanding Foreign
               Currency Loans (the amount set forth in (v)
               multiplied by the percentage set forth in (e))    $______________

     7. After giving effect to the foregoing assignment, the Assignor and the
Assignee shall have the following Commitments, Commitment Percentages,
outstanding Loans and Participation Interests:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                   Commitment
                 with respect to       Revolving                             Tranche A
                    Revolving            Loan                                Term Loan
                    Committed         Commitment          Revolving         Commitment          Tranche A
                     Amount           Percentage            Loans           Percentage         Term Loans
--------------------------------------------------------------------------------------------------------------
<S>              <C>                  <C>                 <C>               <C>                <C>
Assignor
--------------------------------------------------------------------------------------------------------------
Assignee
--------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                                                                                            U.S. Dollar
                                                                                           Equivalent of
                        Tranche B                                  Participation           Participation
                        Term Loan             Tranche B             Interest in             Interest in
                        Commitment              Term                 Swing Line               Foreign
                        Percentage              Loans                  Loans               Currency Loans
--------------------------------------------------------------------------------------------------------------
<S>                     <C>                   <C>                  <C>                     <C>
Assignor
--------------------------------------------------------------------------------------------------------------
Assignee
--------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   197

The terms set forth above
are hereby agreed to:

_______________________, as Assignor

By: _____________________________
Name: ___________________________
Title: __________________________

____________________, as Assignee

By: _____________________________
Name: ___________________________
Title: __________________________

                                             CONSENTED TO (if applicable):

                                             UNITED STATES CAN COMPANY,
                                             a Delaware corporation

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

                                             BANK OF AMERICA, N.A., as
                                             Administrative Agent

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

                                             BANK OF AMERICA, N.A., as
                                             Issuing Lender

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

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