Document:

U.S. $150,000,000

                                CREDIT AGREEMENT

                         Dated as of November [28], 2005

                                      Among

                               PAXAR CORPORATION,
                                   PAXAR B.V.,
                                PAXAR ITALIA SRL

                                       and
                               PAXAR FAR EAST LTD.
                                  as Borrowers
                                  ------------

                                       and

                    THE INITIAL LENDERS, INITIAL ISSUING BANK
                        AND SWING LINE BANK NAMED HEREIN
          as Initial Lenders, Initial Issuing Bank and Swing Line Bank
          ------------------------------------------------------------

                               ABN AMRO BANK N.V.
                             as Administrative Agent

                             BANK OF AMERICA, N.A.,
                              THE BANK OF NEW YORK
                                       and
                                  SUNTRUST BANK
                            as Co-Syndication Agents
                            ------------------------

            HSBC BANK USA, NATIONAL ASSOCIATION, NATIONAL ASSOCIATION
                             as Documentation Agent
                             ----------------------

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

                              ABN AMRO INCORPORATED
                               as Sole Bookrunner
                               ------------------

                                       and

                             ABN AMRO INCORPORATED,
                         BANC OF AMERICA SECURITIES LLC
                                       and
                            BNY CAPITAL MARKETS, INC.
                             as Joint Lead Arrangers
                             -----------------------

<PAGE>

                                TABLE OF CONTENTS

                                Table of Contents

<TABLE>
<CAPTION>

                                                                                                Page

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

<S>                  <C>                                                                         <C>
SECTION 1.01.        Certain Defined Terms.........................................................1
SECTION 1.02.        Computation of Time Periods..................................................21
SECTION 1.03.        Accounting Terms.............................................................21
                                   ARTICLE II
           AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT

SECTION 2.01.        The Advances.................................................................21
SECTION 2.02.        Making the Advances..........................................................24
SECTION 2.03.        The Competitive Bid Advances.................................................26
SECTION 2.04.        Issuance of and Drawings and Reimbursement Under Letters of Credit...........30
SECTION 2.05.        Fees  .......................................................................31
SECTION 2.06.        Termination or Reduction of the Commitments..................................32
SECTION 2.07.        Repayment of Advances........................................................32
SECTION 2.08.        Interest.....................................................................34
SECTION 2.09.        Interest Rate Determination..................................................36
SECTION 2.10.        Conversion of Advances.......................................................37
SECTION 2.11.        Prepayments..................................................................37
SECTION 2.12.        Increased Costs..............................................................38
SECTION 2.13.        Illegality...................................................................39
SECTION 2.14.        Payments and Computations....................................................39
SECTION 2.15.        Taxes 40
SECTION 2.16.        Sharing of Payments, Etc.....................................................42
SECTION 2.17.        Use of Proceeds..............................................................42
SECTION 2.18.        Increase in the Aggregate Commitments........................................42
SECTION 2.19.        Lending Installations........................................................44
                                   ARTICLE III
                     CONDITIONS TO EFFECTIVENESS AND LENDING

SECTION 3.01.        Conditions Precedent to Effectiveness........................................44
SECTION 3.02.        Conditions Precedent to Each Borrowing (other than a Competitive Bid
                     Borrowing) and Issuance......................................................46
SECTION 3.03.        Conditions Precedent to Each Competitive Bid Borrowing.......................47
SECTION 3.04.        Determinations Under Section 3.01............................................47
                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

SECTION 4.01.        Representations and Warranties of the Borrowers..............................48

</TABLE>

                                       i

<PAGE>

                                    ARTICLE V
                               COVENANTS OF PAXAR

<TABLE>
<CAPTION>

<S>                  <C>                                                                         <C>
SECTION 5.01.        Affirmative Covenants........................................................50
SECTION 5.02.        Negative Covenants...........................................................54
SECTION 5.03.        Financial Covenants..........................................................59
                                   ARTICLE VI
                                EVENTS OF DEFAULT

SECTION 6.01.        Events of Default............................................................59
                                   ARTICLE VII
                            THE ADMINISTRATIVE AGENT

SECTION 7.01.        Authorization and Action.....................................................62
SECTION 7.02.        Administrative Agent's Reliance, Etc.........................................62
SECTION 7.03.        ABN and Affiliates...........................................................62
SECTION 7.04.        Lender Credit Decision.......................................................63
SECTION 7.05.        Indemnification..............................................................63
SECTION 7.06.        Successor Administrative Agent...............................................63
                                  ARTICLE VIII
                   GUARANTY, CROSS-GUARANTY AND SUBORDINATION

SECTION 8.01.        Guaranty.....................................................................64
SECTION 8.02.        Cross-Guaranty...............................................................67
SECTION 8.03.        Subordination................................................................70
                                   ARTICLE IX
                                  MISCELLANEOUS

SECTION 9.01.        Amendments, Etc..............................................................71
SECTION 9.02.        Notices, Etc.................................................................72
SECTION 9.03.        No Waiver; Remedies..........................................................73
SECTION 9.04.        Costs and Expenses...........................................................73
SECTION 9.05.        Right of Set-off.............................................................74
SECTION 9.06.        Binding Effect...............................................................75
SECTION 9.07.        Assignments, Designations and Participations.................................75
SECTION 9.08.        Confidentiality..............................................................79
SECTION 9.09.        No Liability of the Issuing Bank.............................................79
SECTION 9.10.        Governing Law................................................................79
SECTION 9.11.        Execution in Counterparts....................................................79
SECTION 9.12.        Judgment.....................................................................80
SECTION 9.13.        Jurisdiction, Etc............................................................80
SECTION 9.14.        Know Your Customer Rules.....................................................81
SECTION 9.15         Patriot Act Notice...........................................................80
SECTION 9.16.        Waiver of Jury Trial.........................................................82

</TABLE>

                                       ii

<PAGE>

Schedules

Schedule I -      List of Applicable Lending Offices

Schedule II -     Commitments

Schedule 2.01(c) -         Existing Letters of Credit

Schedule 2.08 -   Additional Cost Rate

Schedule 4.01(c) -         Required Authorizations and Approvals

Schedule 4.01(f) -         Environmental Actions

Schedule 4.01(i) -         Environmental Laws

Schedule 5.02(a) -         Existing Liens

Schedule 5.02(d) -         Existing Debt

Exhibits

Exhibit A-1       -        Form of Revolving Credit Note

Exhibit A-2       -        Form of Competitive Bid Note

Exhibit B-1       -        Form of Notice of Borrowing

Exhibit B-2       -        Form of Notice of Competitive Bid Borrowing

Exhibit C         -        Form of Assignment and Acceptance

Exhibit D         -        Form of Designation Agreement

Exhibit E         -        Form of Opinion of Counsel for Paxar

Exhibit F         -        Subsidiary Guaranty

Exhibit G         -        Foreign Subsidiary Guaranty

                                      iii

<PAGE>

                                CREDIT AGREEMENT

                                                 Dated as of November [28], 2005

          Paxar  Corporation,  a New York corporation  ("Paxar"),  Paxar B.V., a
Netherlands corporation ("PBV"), Paxar Italia SRL, an Italian corporation ("PI")
and Paxar Far East Ltd., a Hong Kong  corporation  ("PHK" and together  with PBV
and PI, the "Non-US Borrowers" and the Non-US Borrowers together with Paxar, the
"Borrowers"),  the banks, financial institutions and other institutional lenders
(the  "Initial  Lenders")  listed on the  signature  pages hereof as the Initial
Lenders, the banks,  financial institutions and other institutional lenders (the
"PI Lenders")  listed on the signature pages hereof as the PI Lenders,  ABN AMRO
Bank N.V.  ("ABN") and Bank of America,  N.A.  ("BofA") as initial issuing banks
(in such capacity,  the "Initial Issuing Banks"), ABN as the swing line bank (in
such  capacity,  the "Swing Line Bank"),  ABN as  administrative  agent (in such
capacity,  the  "Administrative  Agent") for the Lender Parties (as  hereinafter
defined), BofA, The Bank of New York and SunTrust Bank, as Co-Syndication Agents
(the  "Co-Syndication  Agents")  and HSBC Bank  USA,  National  Association,  as
Documentation   Agent  (the   "Documentation   Agent,"  and  together  with  the
Administrative  Agent and the  Co-Syndication  Agents,  the "Agents"),  agree as
follows:

                             PRELIMINARY STATEMENTS

          Paxar has  requested  that the Lender  Parties party hereto enter into
this Agreement to lend the Borrowers (as hereinafter  defined) and issue Letters
of Credit (as hereinafter defined) for the benefit of the Borrowers from time to
time in an aggregate principal amount of up to $150,000,000.  The Lender Parties
hereunder  have  indicated  their  willingness to agree to lend such amounts and
issue Letters of Credit on the terms and conditions of this Agreement.

          NOW,  THEREFORE,  in  consideration  of the  premises  and the  mutual
covenants and agreements  contained  herein,  the parties hereto hereby agree as
follows:

                                   ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

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

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

          "Additional Cost Rate" is set forth on Schedule 2.08.

          "Administrative  Agent's  Account"  means (a) in the case of  Advances
     denominated in US Dollars, the account of the Administrative Agent, ABA No.
     026009580,  F/O ABN  AMRO  Bank  N.V.,  Chicago  Branch  CPU,  Account  No.
     650-001-1789-41,  Reference: Agency Services (00430196), (b) in the case of

<PAGE>

     payments in respect of Letters of Credit, the account of the Administrative
     Agent, ABA No.  026009580,  F/O ABN AMRO Bank N.V.,  Chicago Trade Services
     CPU, Account No. 655-001-1711-41, Reference: (00430196) (Paxar Corporation)
     and (c) in the case of Advances  denominated in any Primary  Currency,  the
     account of the Administrative Agent designated in writing from time to time
     by the  Administrative  Agent to Paxar,  the other Borrowers and the Lender
     Parties for such purpose.

          "Advance"  means a Revolving  Credit A Advance,  a Revolving  Credit B
     Advance,  a Swing Line Advance, a Letter of Credit Advance or a Competitive
     Bid Advance.

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

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

          "Applicable  Margin"  means,  (x) during the period from the Effective
     Date until the  earlier of the (i) the third day after the  delivery of the
     2005 annual financial  statements  pursuant to Section 5.01(l)(ii) and (ii)
     April 18,  2006,  0.50% and (y) at any time  after  such  earlier  date,  a
     percentage per annum determined by reference to the Debt to EBITDA Ratio as
     set forth below:

              ------------------------------- ----------------------------
                         Debt To                 Applicable Margin for
                       EBITDA Ratio            Revolving Credit Advances
              ------------------------------- ----------------------------
              Level 1                                    0.40%
              -------
              Less than 1.50 to 1
              ------------------------------- ----------------------------
              Level 2                                    0.50%
              -------
              Greater than or equal to 1.50
              to 1 but less than 2.00 to 1
              ------------------------------- ----------------------------
              Level 3                                    0.60%
              -------
              Greater than or equal to 2.00
              to 1 but less than 2.50 to 1
              ------------------------------- ----------------------------
              Level 4                                    0.70%
              -------
              Greater than or equal to 2.50
              to 1
              ------------------------------- ----------------------------

                                       2

<PAGE>

     The  Applicable  Margin for each  Advance  (other  than a  Competitive  Bid
     Advance)  shall be  determined  by reference to the Debt to EBITDA Ratio in
     effect on the first day of each Interest Period for such Advance; provided,
     however,  that (A) no change in the  Applicable  Margin  shall be effective
     until three Business Days after the date on which the Administrative  Agent
     receives financial  statements pursuant to Section 5.01(l)(i) or (ii) and a
     certificate  of the  chief  financial  officer  or the  treasurer  of Paxar
     demonstrating  such ratio and (B) the Applicable Margin shall be at Level 4
     for so long as the Borrower has not submitted to the  Administrative  Agent
     the  information  described  in  clause  (A) of this  proviso  as and  when
     required under Section 5.01(1)(i) or (ii), as the case may be.

          "Applicable   Percentage"  means,  (x)  during  the  period  from  the
     Effective Date until the earlier of (i) the third day after the delivery of
     the 2005 annual financial  statements  pursuant to Section  5.01(l)(ii) and
     (ii) April 18, 2006,  0.10% and (y) at any time after such earlier  date, a
     percentage per annum determined by reference to the Debt to EBITDA Ratio as
     set forth below:

              -------------------------------- ------------------------------
                          Debt To                       Applicable
                       EBITDA Ratio                     Percentage
              -------------------------------- ------------------------------
              Level 1                                     0.100%
              -------
              Less than 1.50 to 1
              -------------------------------- ------------------------------
              Level 2                                     0.125%
              -------
              Greater than or equal to 1.50
              to 1 but less than 2.00 to 1
              -------------------------------- ------------------------------
              Level 3                                     0.150%
              -------
              Greater than or equal to 2.00
              to 1 but less than 2.50 to 1
              -------------------------------- ------------------------------
              Level 4                                     0.175%
              -------
              Greater than or equal to 2.50
              to 1
              -------------------------------- ------------------------------

     The  Applicable  Percentage  for the  Revolving  Credit  Facility  shall be
     determined  by reference to the Debt to EBITDA Ratio in effect from time to
     time; provided,  however,  that (A) no change in the Applicable  Percentage
     shall be effective  until three  Business  Days after the date on which the
     Administrative  Agent  receives  financial  statements  pursuant to Section
     5.01(l)(i) or (ii) and a certificate of the chief financial  officer or the
     treasurer  of  Paxar  demonstrating  such  ratio  and  (B)  the  Applicable

                                       3

<PAGE>

     Percentage  shall  be at  Level  4 for so  long  as the  Borrower  has  not
     submitted to the Administrative  Agent the information  described in clause
     (A) of this proviso as and when required under Section  5.01(1)(i) or (ii),
     as the case may be.

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

          "Available  Amount" of any Letter of Credit  means,  at any time,  the
     maximum  amount  available  to be drawn under such Letter of Credit at such
     time (assuming compliance at such time with all conditions to drawing).

          "Borrowing" means a Revolving Credit Borrowing, a Swing Line Borrowing
     or a Competitive Bid Borrowing.

          "Business Day" means a day of the year on which banks are not required
     or  authorized  by law to close in New York  City  and,  if the  applicable
     Business Day relates to any Eurocurrency  Rate Advances,  on which dealings
     are  carried  on in the  London  interbank  market  and  banks are open for
     business in the country of issue of the currency of such  Eurocurrency Rate
     Advance,  and if the  applicable  Business Day relates to the  borrowing or
     payment  of any  Advance  by any  Non-US  Borrower,  on which  banks in the
     respective  jurisdiction  of  such  Non-US  Borrower  are not  required  or
     authorized by law to close.

          "Capital  Expenditures"  means, for any Person for any period, the sum
     of (a) all expenditures made, directly or indirectly, by such Person or any
     of its Subsidiaries  during such period for equipment,  fixed assets,  real
     property or improvements,  or for replacements or substitutions therefor or
     additions  thereto,  that have been or should be, in accordance  with GAAP,
     reflected as additions  to property,  plant or equipment on a  Consolidated
     balance  sheet of such  Person or have a useful  life of more than one year
     plus (b) without  duplication,  the aggregate  principal amount of all Debt
     (including  Obligations  under  Capitalized  Leases) assumed or incurred in
     connection with any such expenditures.

          "Capitalized  Leases" means all leases that have been or should be, in
     accordance with GAAP, recorded as capitalized leases.

          "Cash Equivalents" means any of the following,  to the extent owned by
     Paxar or any of its  Subsidiaries  free and clear of all Liens and having a
     maturity  of not greater  than 180 days from the date of issuance  thereof:
     (a) readily  marketable direct  obligations of the Government of the United
     States  or  any   agency  or   instrumentality   thereof   or   obligations
     unconditionally  guaranteed by the full faith and credit of the  Government
     of the  United  States,  (b)  insured  certificates  of  deposit of or time
     deposits with any commercial bank that is a Lender Party or a member of the
     Federal Reserve System,  issues (or the parent of which issues)  commercial
     paper rated as described in clause (c), is organized  under the laws of the
     United States or any state thereof and has combined  capital and surplus of
     at least  $1  billion,  (c)  commercial  paper  issued  by any  corporation
     organized  under the laws of any state of the  United  States  and rated at

                                       4

<PAGE>

     least "Prime-1" (or the then equivalent  grade) by Moody's or "A-1" (or the
     then equivalent grade) by S&P or (d) Investments in money market funds that
     invest primarily in Cash Equivalents of the types described in clauses (a),
     (b) and (c) above and are established by a Lender Party or any Affiliate of
     a Lender Party.

          "Commitment"  means either Revolving Credit  Commitment or a Letter of
     Credit Commitment, as applicable.

          "Competitive  Bid Advance" means an advance by a Lender Party to Paxar
     as part of a  Competitive  Bid  Borrowing  resulting  from the  competitive
     bidding  procedure  described  in  Section  2.03 and refers to a Fixed Rate
     Advance or a LIBO Rate Advance (each of which may only be in US Dollars).

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

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

          "Confidential   Information"   means  information  that  any  Borrower
     furnishes  to the  Administrative  Agent or any  Lender  Party in a writing
     designated as confidential,  but does not include any such information that
     is or  becomes  generally  available  to the  public or that is or  becomes
     available  to the  Administrative  Agent or such Lender Party from a source
     other than the Borrowers.

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

          "Convert", "Conversion" and "Converted" each refers to a conversion of
     Advances (other than Competitive Bid Advances) of one Type into Advances of
     the other Type (other than  Competitive  Bid Advances)  pursuant to Section
     2.09 or 2.10.

          "Cross-Guaranty" has the meaning specified in Section 8.02.

          "Cross-Guaranteed  Obligations"  has the meaning  specified in Section
     8.02.

          "Debt" of any Person means, without duplication,  (a) all indebtedness
     of such Person for borrowed  money,  (b) all Obligations of such Person for
     the  deferred  purchase  price of property  or  services  (other than trade
     payables not overdue by more than 90 days  incurred in the ordinary  course
     of such Person's business), (c) all Obligations of such Person evidenced by
     notes, bonds, debentures or other similar instruments,  (d) all Obligations
     of such Person created or arising under any conditional sale or other title
     retention  agreement with respect to property acquired by such Person (even
     though the rights and remedies of the seller or lender under such agreement
     in the  event  of  default  are  limited  to  repossession  or sale of such

                                       5

<PAGE>

     property),  (e) all Obligations of such Person as lessee under  Capitalized
     Leases,  (f) all  Obligations,  contingent or otherwise,  of such Person in
     respect of acceptances,  letters of credit or similar extensions of credit,
     (g) all Obligations of such Person in respect of Hedge Agreements,  (h) all
     Obligations  of  such  Person  to  purchase,  redeem,  retire,  defease  or
     otherwise  make any  payment in respect  of any  capital  stock of or other
     ownership  or profit  interest  in such  Person or any other  Person or any
     warrants,  rights or options to acquire  such  capital  stock,  (i) Debt of
     others  referred  to in clauses  (a)  through (h) above or clause (j) below
     guaranteed  directly  or  indirectly  in any manner by such  Person,  or in
     effect  guaranteed  directly  or  indirectly  by  such  Person  through  an
     agreement  (1) to pay or purchase  such Debt or to advance or supply  funds
     for the payment or purchase of such Debt,  (2) to  purchase,  sell or lease
     (as lessee or lessor) property, or to purchase or sell services,  primarily
     for the purpose of enabling  the debtor to make  payment of such Debt or to
     assure the holder of such Debt against  loss,  (3) to supply funds to or in
     any other manner invest in the debtor  (including  any agreement to pay for
     property or services  irrespective  of whether such property is received or
     such services are  rendered) or (4) otherwise to assure a creditor  against
     loss, and (j) all Debt referred to in clauses (a) through (i) above secured
     by (or for which the holder of such Debt has an existing right,  contingent
     or otherwise,  to be secured by) any Lien on property  (including,  without
     limitation, accounts and contract rights) owned by such Person, even though
     such Person has not assumed or become liable for the payment of such Debt.

          "Debt to EBITDA Ratio" means, for any fiscal quarter of Paxar, a ratio
     of Debt of Paxar and its  Subsidiaries as at the end of such fiscal quarter
     to Consolidated  EBITDA of Paxar and its Subsidiaries for the most recently
     completed four fiscal quarters.

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

          "Designated  Bidder"  means (a) an Eligible  Assignee or (b) a special
     purpose  corporation  that is engaged in making,  purchasing  or  otherwise
     investing in  commercial  loans in the ordinary  course of its business and
     that issues (or the parent of which issues) commercial paper rated at least
     "Prime-1" (or the then  equivalent  grade) by Moody's or "A-1" (or the then
     equivalent grade) by S&P that, in the case of either clause (a) or (b), (i)
     is organized under the laws of the United States or any State thereof, (ii)
     shall have become a party hereto pursuant to Section  9.07(d),  (e) and (f)
     and (iii) is not otherwise a Lender Party.

          "Designation  Agreement" means a designation agreement entered into by
     a Lender Party (other than a  Designated  Bidder) and a Designated  Bidder,
     and accepted by the  Administrative  Agent,  in  substantially  the form of
     Exhibit D hereto.

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

                                       6

<PAGE>

          "Dutch  Banking  Act"  means the Dutch Act on the  Supervision  of the
     Credit System 1992 (Wet toezicht kredietwezen 1992).

          "Dutch Banking Act Exemption  Regulation"  means the Dutch Banking Act
     Exemption Regulation 1992  (Vrijstellingsregeling Wtk 1992), dated June 26,
     2002, as amended from time to time.

          "Dutch  Policy Rule" means the policy rule issued by the Dutch Central
     Bank in relation to the Dutch Banking  Exemption  Regulation dated December
     29, 2004 (Beleidsregel 2005 kernbegrippen markttoetreding en handhaving Wtk
     1992) as amended from time to time.

          "EBITDA" means, for any period,  net income (or net loss) plus the sum
     of (a) interest expense,  (b) income tax expense,  (c) depreciation expense
     and (d)  amortization  expense,  in each case determined in accordance with
     GAAP for such period  and,  in the case of clauses (a) through  (d), to the
     extent such expenses are actually  deducted in  calculating  net income (or
     net loss);  provided,  however, that non-cash charges in any period that do
     not have any current or prospective cash effect and any non-operating gains
     and  losses  from  non-current   asset  disposals  or  asset  write-ups  or
     write-downs  or any amounts  reported in the Company's  Statement of Income
     for any  period  as  restructuring  and/or  nonrecurring  gains  or  losses
     (determined  in  accordance  with GAAP) shall be excluded  for  purposes of
     calculating "EBITDA".

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

          "Eligible Assignee" means, in respect of Commitments to and Borrowings
     by PBV, any party which at the date it becomes a Lender  qualifies as a PMP
     and, in respect of Commitments to and Borrowings by any Borrower (including
     PBV), any party which is (i) a Lender Party;  (ii) an Affiliate of a Lender
     Party;  (iii) a  commercial  bank  organized  under the laws of the  United
     States,  or any  State  thereof,  and  having  total  assets  in  excess of
     $500,000,000; (iv) a savings and loan association or savings bank organized
     under the laws of the United States, or any State thereof, and having total
     assets in excess of $500,000,000; (v) a commercial bank organized under the
     laws of any other country that is a member of the Organization for Economic
     Cooperation and Development or has concluded  special lending  arrangements
     with  the   International   Monetary  Fund   associated  with  its  General
     Arrangements to Borrow, or a political subdivision of any such country, and
     having  total  assets in excess  of  $500,000,000,  so long as such bank is
     acting through a branch or agency  located in the United  States;  (vi) the
     central  bank of any  country  that is a  member  of the  Organization  for
     Economic  Cooperation and Development;  (vii) a finance company,  insurance
     company or other  financial  institution  or fund  (whether a  corporation,
     partnership,  trust or other entity) that is engaged in making,  purchasing
     or otherwise  investing in commercial  loans in the ordinary  course of its
     business and having total  assets in excess of  $500,000,000  or (viii) any
     other Person approved by the  Administrative  Agent and, unless an Event of
     Default  has  occurred  and is  continuing  at the time any  assignment  is
     effected in accordance with Section 9.07,  Paxar, each such approval not to
     be unreasonably withheld or delayed; provided,  however, that neither Paxar
     nor an Affiliate of Paxar shall qualify as an Eligible Assignee.

                                       7

<PAGE>

          "EMU Legislation" means the legislative measures of the European Union
     for the  introduction  of,  changeover  to,  or  operation  of the  Primary
     Currency in one or more member states.

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

          "Environmental  Law"  means  any  federal,  state,  local  or  foreign
     statute, law, ordinance, rule, regulation, code, order, judgment, decree or
     judicial or agency interpretation, policy or guidance relating to pollution
     or  protection of the  environment,  health,  safety or natural  resources,
     including,  without  limitation,  those  relating  to  the  use,  handling,
     transportation,  treatment,  storage,  disposal,  release or  discharge  of
     Hazardous Materials.

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

          "Equity  Interests"  means,  with  respect to any  Person,  all of the
     shares of capital stock of (or other ownership or profit interests in) such
     Person,  all of the  warrants,  options or other rights for the purchase or
     other  acquisition from such Person of shares of capital stock of (or other
     ownership  or  profit  interests  in) such  Person,  all of the  securities
     convertible  into or exchangeable  for shares of capital stock of (or other
     ownership  or  profit  interests  in) such  Person or  warrants,  rights or
     options  for the  purchase  or other  acquisition  from such Person of such
     shares (or such other interests),  and all of the other ownership or profit
     interests  in such  Person  (including,  without  limitation,  partnership,
     member  or trust  interests  therein),  whether  voting or  nonvoting,  and
     whether or not such shares,  warrants,  options,  rights or other interests
     are authorized or otherwise existing on any date of determination.

          "Equivalent"  means (a) in US Dollars of any  Primary  Currency on any
     date of  determination,  the  equivalent  in US  Dollars  of  such  Primary
     Currency  determined  by using  the  quoted  spot  rate as set forth on the
     Reuters World Currency Page for the exchange of US Dollars for such Primary
     Currency  in New York City,  New York,  at the  opening of business on such
     date,  and  (b) in any  Primary  Currency  of US  Dollars  on any  date  of
     determination,  the  equivalent  in such  Primary  Currency  of US  Dollars
     determined  by using the quoted spot rate as set forth on the Reuters World
     Currency  Page for the exchange of such Primary  Currency for US Dollars at
     the opening of business on such date.  In the event that such rate does not
     appear  on any  Reuters  World  Currency  Page,  the  Equivalent  shall  be
     determined  by  reference  to such other  publicly  available  service  for
     displaying exchange rates reasonably selected by the Administrative  Agent,

                                       8

<PAGE>

     or,  in the event no such  service  is  available,  such  Equivalent  shall
     instead  be  determined  by using  the  quoted  spot  rate at  which  ABN's
     principal office in New York City, New York,  offers to exchange US Dollars
     for such Primary Currency or Primary  Currency for US Dollars,  as the case
     may be, at the opening of business on such date.

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

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

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

          "EURIBOR Rate" means, for any Interest  Period,  the rate appearing on
     Page  248 of the  Moneyline  Telerate  Service  (or  on  any  successor  or
     substitute page of such Service, or any successor to or substitute for such
     Service,  providing rate quotations  comparable to those currently provided
     on such page of such Service,  as determined  by the  Administrative  Agent
     from time to time for purposes of providing  quotations  of interest  rates
     applicable  to deposits in Euro by reference to the Banking  Federation  of
     the European Union  Settlement Rates for deposits in Euro) at approximately
     10:00 A.M.,  London time,  two Business Days prior to the  commencement  of
     such  Interest  Period,  as the rate for  deposits  in Euro with a maturity
     comparable to such  Interest  Period or, if for any reason such rate is not
     available,  the rate at which Euro  deposits for a maturity  comparable  to
     such  Interest  Period are offered by the  principal  London  office of the

                                       9

<PAGE>

     Administrative Agent in same day funds to first-class banks in the European
     interbank  market at  approximately  10:00 A.M.,  London time, two Business
     Days prior to the commencement of such Interest Period.

          "Euro" means the lawful  currency of the European Union as constituted
     by the Treaty of Rome which  established  the European  Community,  as such
     treaty  may  be  amended  from  time  to  time  and as  referred  to in EMU
     legislation.

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

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

          "Eurocurrency   Rate"  means,   for  any  Interest   Period  for  each
     Eurocurrency Rate Advance comprising part of the same Borrowing (other than
     a  Competitive  Bid  Borrowing  or a Borrowing  denominated  in the Primary
     Currency),  (i) the rate per annum (rounded  upwards to the nearest 1/16 of
     1%) appearing on Page 3750 of the Moneyline Telerate Page (or any successor
     page) as the London interbank offered rate for deposits in US Dollars at or
     about 11:00 A.M.  (London  time) two Business  Days before the first day of
     such Interest Period and for a period  comparable to such Interest  Period.
     If for any reason such rate is not available,  the term "Eurocurrency Rate"
     shall mean,  for any  Interest  Period for each  Eurocurrency  Rate Advance
     comprising part of the same Borrowing,  the rate per annum (rounded upwards
     to the nearest 1/16 of 1%) appearing on the  appropriate  Reuters Screen as
     the London  interbank  offered  rate for  deposits  in US Dollars or in the
     applicable  Primary  Currency,  as the case may be, at approximately  11:00
     A.M.  (London  time)  two  Business  Days  prior to the  first  day of such
     Interest  Period for a term comparable to such Interest  Period;  provided,
     however,  if more than one rate is specified on such  Reuters  Screen,  the
     applicable  rate shall be the arithmetic mean of all such rates and (ii) in
     the case of a Borrowing  denominated in the Primary  Currency,  the EURIBOR
     Rate.

          "Eurocurrency Rate Advance" means an Advance (other than a Competitive
     Bid Advance)  denominated in US Dollars or in a Primary Currency that bears
     interest as provided in Section 2.08(a)(ii).

          "Eurocurrency  Rate  Reserve  Percentage"  means,  with respect to any
     Lender for any Interest  Period for any  Eurocurrency  Rate Advance made by
     such  Lender  from time to time,  the  reserve  percentage  applicable  two
     Business  Days  before  the  first  day  of  such  Interest   Period  under
     regulations  issued  from  time to time by the  Board of  Governors  of the
     Federal  Reserve  System (or any  successor  thereto) for  determining  the
     maximum reserve requirement (including,  without limitation, any emergency,
     supplemental or other marginal  reserve  requirement)  for such Lender with
     respect to  liabilities or assets  consisting of or including  Eurocurrency
     Liabilities  (or with  respect to any other  category of  liabilities  that

                                       10

<PAGE>

     includes  deposits by reference to which the interest rate on  Eurocurrency
     Rate Advances is determined) having a term equal to such Interest Period.

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

          "Existing  Credit  Agreement"  means the Second  Amended and  Restated
     Credit  Agreement  dated  as of  September  24,  2002,  as  amended  by the
     Amendments dated as of December 16, 2003, February 11, 2004, March 10, 2004
     and September 23, 2005 among Paxar, certain of its Subsidiaries, the banks,
     financial  institutions and other  institutional  lenders party thereto and
     Fleet  National  Bank,  as  Initial  Issuing  Bank,  Swing  Line  Bank  and
     Administrative Agent.

          "Existing Debt" has the meaning  specified in Section  5.02(d)(iii)(B)
     hereof.

          "Existing  Letters of Credit"  means  those  letters of credit  issued
     under the Existing  Credit  Agreement and outstanding on the Effective Date
     and listed on Schedule 2.01(c).

          "Facility"  means  the  Revolving  Credit  Facility,  the  Swing  Line
     Facility or the Letter of Credit Facility.

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

          "Fiscal  Year"  means a  fiscal  year of  Paxar  and its  Consolidated
     Subsidiaries ending on December 31 in any calendar year.

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

          "Foreign  Guarantor"  means each of the  Subsidiaries  of Paxar (other
     than  the  Non-US  Borrowers)  that  is  organized  under  the  laws of any
     jurisdiction  other  than the laws of the  United  States of America or any
     State  thereof and whose net worth as of the end of any quarter is equal to
     or  greater  than  5% of the  consolidated  net  worth  of  Paxar  and  its
     Subsidiaries.

          "Foreign  Subsidiary  Guaranty"  means the Guaranty (which is attached
     hereto  as  Exhibit  G) made by the  Foreign  Guarantors  in  favor  of the
     Administrative  Agent and the Lender  Parties,  as the same may be amended,
     modified or otherwise supplemented from time to time.

          "GAAP" has the meaning specified in Section 1.03.

                                       11

<PAGE>

          "Guaranteed Obligations" has the meaning specified in Section 8.01.

          "Guaranty" has the meaning specified in Section 8.01.

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

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

          "Indemnified Party" has the meaning specified in Section 9.04(b).

          "Initial  Extension  of  Credit"  means  the  earlier  to occur of the
     initial Borrowing and the initial issuance of a Letter of Credit hereunder.

          "Initial  Issuing  Banks" has the meaning  specified in the recital of
     parties to this Agreement.

          "Initial  Lenders" has the meaning specified in the recital of parties
     to this Agreement.

          "Insufficiency"  means,  with respect to any Plan, the amount, if any,
     of its unfunded benefit  liabilities,  as defined in Section 4001(a)(18) of
     ERISA.

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

          (i) a Borrower may not select any Interest  Period with respect to any
     Eurocurrency  Rate  Advance  or LIBO  Rate  Advance  that  ends  after  any
     principal  repayment  installment date unless,  after giving effect to such
     selection,  the  aggregate  principal  amount of Prime Rate Advances and of
     Eurocurrency  Rate Advances and LIBO Rate Advances having Interest  Periods

                                       12

<PAGE>

     that end on or prior to such principal repayment  installment date shall be
     at least  equal to the  aggregate  principal  amount  of  Advances  due and
     payable on or prior to such date;

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

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

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

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

          "Investment"  in any Person  means any loan or advance to such Person,
     any purchase or other  acquisition of any capital stock or other  ownership
     or  profit  interest,  warrants,  rights,  options,  obligations  or  other
     securities or other assets of such Person, any capital contribution to such
     Person  or  any  other  investment  in  such  Person,  including,   without
     limitation,  any arrangement  pursuant to which the investor incurs Debt of
     the types  referred to in clause (i) or (j) of the  definition of "Debt" in
     respect of such Person.

          "Issuing  Bank"  means the  Initial  Issuing  Banks and each  Eligible
     Assignee  to which  the  Letter  of Credit  Commitment  hereunder  has been
     assigned  pursuant  to  Section  9.07,  (and,  solely  with  respect to the
     Existing Letters of Credit, the issuing banks thereof).

          "L/C  Related   Documents"  has  the  meaning   specified  in  Section
     2.07(c)(ii).

          "Lender  Party"  means any Lender,  the Issuing Bank or the Swing Line
     Bank.

          "Lenders" means the Initial  Lenders,  each PI Lender (as appropriate)
     and each  Person  that  shall  become a party  hereto  pursuant  to Section
     9.07(a),  (b) and (c) and,  except  when used in  reference  to a Borrowing
     (other than a Competitive Bid Borrowing),  a Note (other than a Competitive
     Bid Note), a Commitment or a related term, each Designated Bidder.

          "Lending  Installation"  means, with respect to a Lender or the Agent,
     the office,  branch,  subsidiary  or  affiliate of such Lender or the Agent

                                       13

<PAGE>

     listed on the signature pages hereof or on a schedule or otherwise selected
     by such Lender or the Agent pursuant to Section 2.19.

          "Letter of Credit" has the meaning specified in Section 2.01(c).

          "Letter of Credit  Advance"  means an advance made by the Issuing Bank
     or  any  Lender  pursuant  to  Section  2.04(c),  which  advance  shall  be
     denominated in US Dollars.

          "Letter of Credit  Agreement"  has the  meaning  specified  in Section
     2.04(a).

          "Letter of Credit  Commitment"  means,  with respect to all Letters of
     Credit  (other than the  Existing  Letters of Credit),  with respect to the
     Issuing Bank at any time,  $10,000,000  or, if the Issuing Bank has entered
     into one or more  Assignments  and  Acceptances,  set forth for the Issuing
     Bank in the Register  maintained by the  Administrative  Agent  pursuant to
     Section 9.07(g) as the Issuing Bank's "Letter of Credit Commitment" and, in
     each case,  as such amount may be reduced at or prior to such time pursuant
     to Section 2.06.

          "Letter of Credit Facility" means, at any time, an amount equal to the
     amount of the Issuing  Bank's Letter of Credit  Commitment at such time, as
     such  amount may be reduced  at or prior to such time  pursuant  to Section
     2.06.

          "LIBO Rate" means,  for any Interest Period for all LIBO Rate Advances
     comprising part of the same  Competitive Bid Borrowing,  the rate per annum
     (rounded upwards to the nearest 1/16 of 1%) appearing on Telerate Page 3750
     (or any successor page) as the London  interbank  offered rate for deposits
     in US Dollars at  approximately  11:00 A.M. (London time) two Business Days
     prior to the first day of such  Interest  Period for a term  comparable  to
     such Interest  Period.  If for any reason such rate is not  available,  the
     term "LIBO  Rate" shall mean,  for any  Interest  Period for each LIBO Rate
     Advance comprising part of the same Competitive Bid Borrowing, the rate per
     annum  (rounded  upwards to the nearest  1/16 of 1%)  appearing  on Reuters
     Screen LIBO Page as the London  interbank  offered  rate for deposits in US
     Dollars at  approximately  11:00 A.M. (London time) two Business Days prior
     to the first day of such  Interest  Period  for a term  comparable  to such
     Interest Period;  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.

          "LIBO Rate Advances" has the meaning specified in Section 2.03(a)(i).

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

          "Loan  Documents"  means this  Agreement,  the Notes,  the  Subsidiary
     Guaranty and the Foreign Subsidiary Guaranty.

                                       14

<PAGE>

          "Loan Parties" means each Borrower, each Subsidiary Guarantor and each
     Foreign Guarantor.

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

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

          "Moody's" means Moody's Investors Service, Inc.

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

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

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

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

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

          "Notice of Issuance" has the meaning specified in Section 2.04(a).

          "Notice of Renewal" has the meaning specified in Section 2.01(c).

          "Notice of Swing Line Borrowing" has the meaning  specified in Section
     2.02(b).

          "Notice of Termination" has the meaning specified in Section 2.01(c).

          "Obligation"   means,  with  respect  to  any  Person,   any  payment,
     performance  or other  obligation  of such  Person of any kind,  including,
     without limitation,  any liability of such Person on any claim,  whether or
     not the right of any  creditor  to  payment  in  respect  of such  claim is
     reduced to judgment, liquidated,  unliquidated, fixed, contingent, matured,
     disputed,  undisputed,  legal, equitable, secured or unsecured, and whether

                                       15

<PAGE>

     or not such  claim is  discharged,  stayed  or  otherwise  affected  by any
     proceeding referred to in Section 6.01(f).  Without limiting the generality
     of the  foregoing,  the  obligations  of the Loan  Parties  under  the Loan
     Documents include (a) the obligation to pay principal,  interest, Letter of
     Credit  commissions,   charges,   expenses,   fees,   attorneys'  fees  and
     disbursements,  indemnities  and other  amounts  payable  by any Loan Party
     under  any  Loan  Document  and (b) the  obligation  of any  Loan  Party to
     reimburse  any amount in respect  of any of the  foregoing  that any Lender
     Party,  in its sole  discretion,  may elect to pay or  advance on behalf of
     such Loan Party.

          "Other Taxes" has the meaning specified in Section 2.15(b).

          "Participating  Member State" means any member state which has adopted
     or which  adopts the Euro as its lawful  currency  in  accordance  with the
     legislation  of the  European  Community  relating to Economic and Monetary
     Union.

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

          "Permitted  Liens"  means  such  of  the  following  as  to  which  no
     enforcement,  collection,  execution,  levy or foreclosure proceeding shall
     have been  commenced:  (a) Liens for taxes,  assessments  and  governmental
     charges  or levies to the  extent not  required  to be paid  under  Section
     5.01(b)  hereof;   (b)  Liens  imposed  by  law,  such  as   materialmen's,
     mechanics',  carriers',  workmen's and repairmen's  Liens and other similar
     Liens arising in the ordinary course of business securing  obligations that
     are not overdue for a period of more than 30 days;  (c) pledges or deposits
     to  secure   obligations  under  workers'   compensation  laws  or  similar
     legislation  or  to  secure  public  or  statutory  obligations;   and  (d)
     easements,  rights of way and other  encumbrances on title to real property
     that do not render title to the property encumbered thereby unmarketable or
     materially  adversely  affect  the use of  such  property  for its  present
     purposes.

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

          "PI  Lenders"  has the meaning  specified in the recital of parties to
     this Agreement.

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

          "PMP"  means a  professional  market  party as  defined  in the  Dutch
     Banking Act Exemption Regulation,  which includes, among others: (i) banks,
     insurance companies,  securities firms,  collective investment institutions
     and pension funds regulated in The  Netherlands,  any other member state of
     the European  Economic Area,  Monaco,  Puerto Rico,  Saudi Arabia,  Turkey,
     South Korea,  the United States,  Japan,  Australia,  Canada,  Mexico,  New
     Zealand and Switzerland,  as well as their regulated  subsidiaries  (either
     directly or on a consolidated  basis at the level of their parent company);
     (ii) persons  regulated in any country to operate lawfully on the financial
     markets; (iii) collective investment institutions exempt from regulation in
     The   Netherlands   under  the  Exemption   Regulation  to  the  Investment
     Institutions  Supervision Act; (iv) persons lawfully  engaging in regulated

                                       16

<PAGE>

     activities on the financial  markets without being  regulated (e.g.  exempt
     credit and financial institutions,  insurance companies,  investment firms,
     collective investment schemes and their management companies, pension funds
     and their  management  companies,  commodity  dealers and  special  purpose
     vehicles);  (v) central  governments,  central  banks,  regional  and other
     decentralized  governmental bodies,  international treaty organizations and
     supranational  organizations;  (vi)  entities with total assets of at least
     Euro 500 million  according to their  balance  sheet at the end of the year
     preceding  the year in which  they  become a Lender or  participate  in any
     Borrowing  to PBV,  and who have been  active on the  financial  markets on
     average at least  twice per month  during  the  preceding  two  consecutive
     years;  (viii)  entities  meeting  at least two of the  following  criteria
     according  to their most recent  consolidated  or  non-consolidated  annual
     accounts:  (1) an average of at least 250  employees  during the  financial
     year,  (2) total  assets of at least  Euro 43  million,  and (3) annual net
     turnover of at least Euro 50 million;  (ix) entities with registered office
     in The Netherlands which have at their request been entered in the register
     of  qualified  investors  (within  the  meaning  of  Directive  2003/71/EC)
     maintained in the  Netherlands  Authority for the  Financial  Markets;  (x)
     entities  having as their sole  corporate  object  investment in securities
     (e.g.  hedge  funds);  and (xi) other  persons as may be  designated by the
     competent Netherlands authorities after the date hereof by amendment of the
     applicable regulations.

          "Primary  Currency"  means  the  Euro;  provided,  however,  that such
     currency shall cease to be a "Primary  Currency" upon  notification  by the
     Required  Lenders to the  Administrative  Agent that such  currency  is not
     freely transferable and convertible into US Dollars or dealings in deposits
     in such currency are not carried out in the London interbank market.

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

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

               (b)  one-half of one  percent  per annum above the Federal  Funds
          Rate.

          "Prime Rate Advance"  means an Advance  (other than a Competitive  Bid
     Advance) that bears interest as provided in Section 2.08(a)(i).

          "Pro Rata A Share" of any amount means, with respect any Lender (other
     than a Lender that is solely a PI Lender) at any time,  the product of such
     amount  times a  fraction  the  numerator  of which is the  amount  of such
     Lender's  Revolving Credit A Commitment at such time and the denominator of
     which is the Revolving Credit A Facility at such time.

          "Pro Rata B Share" of any amount means,  with respect to any PI Lender
     at any time,  the product of such amount times a fraction the  numerator of
     which is the amount of such Lender's  Revolving Credit B Commitment at such
     time and the  denominator  of which is the  Revolving  Credit B Facility at
     such time.

                                       17

<PAGE>

          "Pro Rata Share" of any amount  means,  with  respect to any Lender at
     any time,  the product of such amount  times a fraction  the  numerator  of
     which  is the  sum of the  amounts  of such  Lender's  Revolving  Credit  A
     Commitment  and  Revolving  Credit  B  Commitment  at  such  time  and  the
     denominator of which is the Revolving Credit Facility at such time.

          "Projections"  means the projected balance sheet,  statement of income
     and statement of cash flows of Paxar and its  Subsidiaries  for each of the
     five fiscal years ending on or prior to December 31, 2010 provided by Paxar
     to the Lenders on or about November 1, 2005.

          "Register" has the meaning specified in Section 9.07(g).

          "Regulation  U" means  Regulation  U of the Board of  Governors of the
     Federal Reserve System, as in effect from time to time.

          "Required  Lenders" means at any time Lenders owed or holding at least
     a majority in interest of the sum of (a) the aggregate  principal amount of
     the Advances (other than Competitive Bid Advances) outstanding at such time
     and (b) the aggregate Available Amount of all Letters of Credit outstanding
     at such time, or, if no such principal  amount and no Letters of Credit are
     outstanding at such time,  Lenders  holding at least a majority in interest
     of the aggregate of the Revolving Credit Commitments.  For purposes of this
     definition,  the aggregate principal amount of Swing Line Advances owing to
     the Swing Line Bank and of Letter of Credit  Advances  owing to the Issuing
     Bank and the Available  Amount of each Letter of Credit shall be considered
     to be owed to the  Lenders  ratably in  accordance  with  their  respective
     Revolving Credit A Commitments.

          "Revolving  Credit Advance" means the Revolving  Credit A Advances and
     the Resolving Credit B Advances.

          "Revolving  Credit A Advance"  has the  meaning  specified  in Section
     2.01(a)(i).

          "Revolving  Credit B Advance"  has the  meaning  specified  in Section
     2.01(a)(ii).

          "Revolving   Credit   Borrowing"  means  a  borrowing   consisting  of
     simultaneous  Revolving Credit A Advances or Revolving Credit B Advances of
     the same Type made by each of the  respective  Lender  Parties  pursuant to
     Section 2.01(a).

          "Revolving  Credit A  Commitment"  means,  with  respect to any Lender
     (other than any Lender that is solely a PI Lender) at any time,  the amount
     set forth  opposite  such  Lender's  name on Schedule  II hereto  under the
     caption "Revolving Credit A Commitment" or, if such Lender has entered into
     one or more Assignments and  Acceptances,  set forth for such Lender in the
     Register maintained by the Administrative Agent pursuant to Section 9.07(g)
     as such Lender's  "Revolving  Credit A  Commitment",  as such amount may be
     reduced at or prior to such time pursuant to Section 2.06.

                                       18

<PAGE>

          "Revolving Credit B Commitment" means with respect to any PI Lender at
     any time,  the amount set forth  opposite such Lender's name on Schedule II
     hereto under the caption "Revolving Credit B Commitment" or, if such Lender
     has entered into one or more Assignment and Acceptances, set forth for such
     Lender in the Register  maintained by the Administrative  Agent pursuant to
     Section 9.07(g) as such Lender's  "Revolving Credit B Commitment",  as such
     amount may be reduced at or prior to such time pursuant to Section 2.06.

          "Revolving   Credit   Commitments"   means  the  Revolving   Credit  A
     Commitments and the Revolving Credit B Commitments.

          "Revolving Credit A Facility" means, at any time, the aggregate amount
     of the respective Lenders' Revolving Credit A Commitments at such time.

          "Revolving Credit B Facility" means, at any time, the aggregate amount
     of the PI Lenders' Revolving Credit B Commitments at such time.

          "Revolving  Credit Facility" means the Revolving Credit A Facility and
     the Revolving Credit B Facility.

          "Revolving  Credit  Note"  means a  promissory  note of each  Borrower
     payable to the order of any Lender,  in  substantially  the form of Exhibit
     A-1 hereto,  evidencing the aggregate indebtedness of such Borrower to such
     Lender resulting from the Revolving Credit A Advances or Revolving Credit B
     Advances, as the case may be, made by such Lender to such Borrower.

          "S&P"  means  Standard  &  Poor's,   a  division  of  The  McGraw-Hill
     Companies, Inc.

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

          "Solvent"  and  "Solvency"  mean,  with  respect  to any  Person  on a
     particular  date,  that on such date (a) the fair value of the  property of
     such Person is greater  than the total  amount of  liabilities,  including,
     without limitation, contingent liabilities, of such Person, (b) the present
     fair salable 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,  (c) such Person does not intend
     to, and does not believe that it will,  incur debts or  liabilities  beyond
     such Person's  ability to pay such debts and liabilities as they mature and
     (d) such Person is not engaged in  business  or a  transaction,  and is not
     about to engage in  business  or a  transaction,  for which  such  Person's
     property would  constitute an  unreasonably  small  capital.  The amount of
     contingent liabilities at any time shall be computed as the amount that, in
     light of all the facts and circumstances  existing at such time, represents
     the amount that can  reasonably  be expected to become an actual or matured
     liability.

                                       19

<PAGE>

          "Standby  Letter of Credit"  means the Existing  Letters of Credit and
     any Letter of Credit issued under the Letter of Credit Facility, other than
     a Trade Letter of Credit.

          "Subsidiary" of any Person means any corporation,  partnership,  joint
     venture,  limited liability company, trust or estate of which (or in which)
     more  than 50% of (a) the  issued  and  outstanding  capital  stock  having
     ordinary voting power to elect a majority of the Board of Directors of such
     corporation (irrespective of whether at the time capital stock of any other
     class or classes of such corporation  shall or might have voting power upon
     the  occurrence  of any  contingency),  (b) the  interest in the capital or
     profits of such limited liability company,  partnership or joint venture or
     (c) the beneficial interest in such trust or estate is at the time directly
     or indirectly owned or controlled by such Person, by such Person and one or
     more of its other  Subsidiaries  or by one or more of such  Person's  other
     Subsidiaries.

          "Subsidiary  Guarantors"  means each of the Subsidiaries of Paxar that
     is  organized  under the laws of the United  States of America or any State
     thereof.

          "Subsidiary  Guaranty" means the Guaranty (which is attached hereto as
     Exhibit F) made by the Subsidiary Guarantors in favor of the Administrative
     Agent and the  Lender  Parties,  as the same may be  amended,  modified  or
     otherwise supplemented from time to time.

          "Swing Line Advance" means an advance which shall be denominated in US
     Dollars made by (a) the Swing Line Bank pursuant to Section  2.01(b) or (b)
     any Lender pursuant to Section 2.02(b).

          "Swing Line Bank" has the meaning  specified in the recital of parties
     to this Agreement.

          "Swing Line  Borrowing"  means a borrowing  consisting of a Swing Line
     Advance made by the Swing Line Bank.

          "Swing Line Facility" has the meaning specified in Section 2.01(b).

          "Termination  Date" means the earlier of November  [28],  2010 and the
     date of termination in whole of the Commitments pursuant to Section 2.06 or
     6.01.

          "Trade  Letter of Credit"  means any  Letter of Credit  that is issued
     under the  Letter of Credit  Facility  for the  benefit  of a  supplier  of
     inventory to Paxar or any of its  Subsidiaries  to effect  payment for such
     inventory.

          "Type"  refers  to  the  distinction   between  Advances  (other  than
     Competitive Bid Advances)  bearing  interest at the Prime Rate and Advances
     bearing interest at the Eurocurrency Rate.

          "Unused  Revolving  Credit A  Commitment"  means,  with respect to any
     Lender  (other  than a Lender  that is solely a PI  Lender) at any time (a)
     such Lender's  Revolving Credit A Commitment at such time minus (b) the sum

                                       20

<PAGE>

     of (i) the aggregate  principal  amount of all Revolving Credit A Advances,
     Swing Line  Advances and Letter of Credit  Advances made by such Lender (in
     its  capacity as a Lender)  and  outstanding  at such time,  plus (ii) such
     Lender's  Pro Rata A Share of (A) the  aggregate  Available  Amount  of all
     Letters of Credit  outstanding  at such time,  (B) the aggregate  principal
     amount of all Letter of Credit  Advances  made by the Issuing Bank pursuant
     to  Section  2.04(c)  and  outstanding  at such  time,  (C)  the  aggregate
     principal  amount of all Swing  Line  Advances  made by the Swing Line Bank
     pursuant  to Section  2.01(b)  and  outstanding  at such time,  and (D) the
     aggregate  principal amount of all Competitive Bid Advances  outstanding at
     such time.

          "Unused  Revolving Credit B Commitment"  means, with respect to any PI
     Lender at any time (a) such Lender's  Revolving Credit B Commitment at such
     time minus (b) the aggregate  principal  amount of all  Revolving  Credit B
     Advances made by such Lender and outstanding at such time.

          "Unused  Revolving  Credit  Commitments"  means  with  respect  to any
     Lender,  the sum of its Unused  Revolving  Credit A  Commitment  and Unused
     Revolving Credit B Commitment.

          "US Dollars" and the "$" sign each mean the lawful money of the United
     States of America.

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

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

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

                                   ARTICLE II

           AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT

          SECTION 2.01. The Advances.  (a) (i) The Revolving  Credit A Advances.
Each Lender (other than a Lender that is solely a PI Lender)  severally  agrees,
on the terms and  conditions  hereinafter  set forth,  to make advances  (each a
"Revolving Credit A Advance") to each Borrower (other than PI) from time to time
on any  Business  Day  during  the  period  from the  Effective  Date  until the
Termination  Date  in an  amount  for  each  such  Revolving  Credit  A  Advance
(determined  in the case of any  Revolving  Credit A  Advance  denominated  in a

                                       21

<PAGE>

Primary  Currency by reference to the  Equivalent  thereof in US Dollars on such
Business Day) not to exceed such Lender's Unused  Revolving  Credit A Commitment
at such time;  provided,  however,  that,  after giving effect to such Revolving
Credit  Borrowing,  (A) the sum of (x) the  aggregate  principal  amount  of all
Revolving Credit A Advances,  Revolving Credit B Advances,  Swing Line Advances,
Letter of Credit  Advances and  Competitive  Bid  Advances  made  hereunder  and
outstanding on such Business Day plus (y) the aggregate  Available Amount of all
Letters  of  Credit  outstanding  on such  Business  Day shall  not  exceed  the
Revolving  Credit Facility on such Business Day, (B) in the case of PHK, the sum
of the aggregate  outstanding principal amount of Revolving Credit A Advances to
PHK  (determined  in the case of any such  Borrowings  in a Primary  Currency by
reference to the Equivalent  thereof in US Dollars on such Business Day) and the
aggregate  Available  Amount of all Letters of Credit  issued for the account of
PHK shall not exceed  $110,000,000,  and (C) in the case of PBV,  the sum of the
aggregate   outstanding   principal  of  Revolving  Credit  A  Advances  to  PBV
(determined  in the  case  of any  such  Borrowings  in a  Primary  Currency  by
reference to the Equivalent  thereof in US Dollars on such Business Day) and the
aggregate  Available  Amount of all Letters of Credit  issued for the account of
PBV shall not exceed  $25,000,000.  Each Revolving Credit A Borrowing  hereunder
shall be in an  aggregate  amount  of  $1,000,000  or an  integral  multiple  of
$100,000 in excess thereof (or the Equivalent thereof in the Primary Currency in
which such Revolving Credit A Borrowing is denominated)  (other than a Borrowing
the  proceeds  of  which  shall  be used  solely  to  repay  or  prepay  in full
outstanding  Swing Line Advances or outstanding  Letter of Credit  Advances) and
shall  consist of  Revolving  Credit A Advances of the same Type and in the same
currency  made  simultaneously  by  such  Lenders  ratably  according  to  their
Revolving  Credit  A  Commitments.  Within  the  limits  of each  such  Lender's
respective  Revolving  Credit A Commitment,  the  Borrowers  (other than PI) may
borrow  under this  Section  2.01(a)(i),  prepay  pursuant  to Section  2.11 and
reborrow under this Section 2.01(a)(i).

          (ii) The Revolving Credit B Advances. Each PI Lender severally agrees,
     on the terms and conditions hereinafter set forth, to make advances (each a
     "Revolving  Credit B Advance")  to PI from time to time on any Business Day
     during the period from the Effective Date until the Termination  Date in an
     amount for each such Revolving Credit B Advance  (determined in the case of
     any  Revolving  Credit B  Advance  denominated  in a  Primary  Currency  by
     reference to the Equivalent thereof in US Dollars on such Business Day) not
     to exceed such PI Lender's  Unused  Revolving  Credit B Commitment  at such
     time; provided, however, that, after giving effect to such Revolving Credit
     Borrowing,  (A)  the  sum of (x)  the  aggregate  principal  amount  of all
     Revolving  Credit A  Advances,  Revolving  Credit B  Advances,  Swing  Line
     Advances,  Letter of Credit  Advances and  Competitive  Bid  Advances  made
     hereunder  and  outstanding  on such  Business  Day plus (y) the  aggregate
     Available Amount of all Letters of Credit  outstanding on such Business Day
     shall not exceed the Revolving  Credit  Facility on such Business Day. Each
     Revolving  Credit  Borrowing  hereunder shall be in an aggregate  amount of
     $1,000,000  or an integral  multiple of $100,000 in excess  thereof (or the
     Equivalent  thereof in the Primary  Currency in which such Revolving Credit
     Borrowing is denominated)  and shall consist of Revolving Credit B Advances
     of the same Type and in the same  currency  made  simultaneously  by the PI
     Lenders ratably  according to their Revolving Credit B Commitments.  Within
     the limits of each such Lender's respective  Revolving Credit B Commitment,

                                       22

<PAGE>

     PI may borrow under this Section  2.01(a)(ii),  prepay  pursuant to Section
     2.11 and reborrow under this Section 2.01(a)(ii).

          (b) The Swing Line Advances.  Paxar may request the Swing Line Bank to
make,  and  the  Swing  Line  Bank  shall  make,  on the  terms  and  conditions
hereinafter  set forth,  Swing Line  Advances  to Paxar from time to time on any
Business Day during the period from the date hereof until the  Termination  Date
(i) in an  aggregate  amount not to exceed at any time  outstanding  $10,000,000
(the  "Swing  Line  Facility")  and (ii) in an amount  for each such  Swing Line
Borrowing not to exceed the aggregate of the Unused Revolving Credit Commitments
of the Lenders at such time. No Swing Line Advance shall be used for the purpose
of funding the payment of principal of any other Swing Line Advance.  Each Swing
Line  Borrowing  shall be in an amount of $100,000  or an  integral  multiple of
$100,000 in excess  thereof  and shall be made as a Prime Rate  Advance or shall
bear  interest  at such other  interest  rate,  if any, as may be agreed upon by
Paxar and the Swing Line Bank.  Within the limits of the Swing Line Facility and
within the limits referred to in clause (ii) above,  Paxar may borrow under this
Section 2.01(b), repay pursuant to Section 2.07(c) or prepay pursuant to Section
2.11 and reborrow under this Section 2.01(b).

          (c)  Letters of Credit.  The  Issuing  Bank  agrees,  on the terms and
conditions  hereinafter set forth, to issue letters of credit (together with the
Existing  Letters of Credit,  the  "Letters  of  Credit")  for the  account of a
Borrower (other than PI) from time to time on any Business Day during the period
from the  date  hereof  until  60 days  before  the  Termination  Date (i) in an
aggregate  Available  Amount for all Letters of Credit not to exceed at any time
the  Issuing  Bank's  Letter  of  Credit  Commitment  at such  time,  (ii) in an
Available  Amount for each such Letter of Credit not to exceed the lesser of (x)
the Letter of Credit Facility at such time and (y) the Unused  Revolving  Credit
Commitments of the Lenders at such time, (iii) in an aggregate  Available Amount
for  all  Letters  of  Credit  issued  for  the  account  of PHK  not to  exceed
$110,000,000  when combined with the aggregate  outstanding  principal amount of
Revolving  Credit  A  Advances  to PHK  (determined  in  the  case  of any  such
Borrowings in a Primary  Currency by reference to the  Equivalent  thereof in US
Dollars on such Business Day), and (iv) in an aggregate Available Amount for all
Letters of Credit issued for the account of PBV not to exceed  $25,000,000  when
combined with the aggregate  outstanding  principal amount of Revolving Credit A
Advances  to PBV  (determined  in the case of any such  Borrowings  in a Primary
Currency by reference to the  Equivalent  thereof in US Dollars on such Business
Day). No Letter of Credit shall have an expiration date (including all rights of
the relevant  Borrower or the  beneficiary  to require  renewal)  later than the
earlier of 60 days before the Termination  Date and (A) in the case of a Standby
Letter of Credit (other than the Existing Letters of Credit), one year after the
date of  issuance  thereof,  but may by its  terms  be  automatically  renewable
annually  upon notice (a "Notice of Renewal")  given to the Issuing Bank and the
Administrative  Agent on or prior to any date for notice of renewal set forth in
such Letter of Credit but in any event at least three Business Days prior to the
date  of the  proposed  renewal  of such  Standby  Letter  of  Credit  and  upon
fulfilment  of the  applicable  conditions  set forth in Article III unless such
Issuing  Bank  has  notified  the  relevant   Borrower   (with  a  copy  to  the
Administrative  Agent)  on or prior to the date for  notice of  termination  set
forth in such Letter of Credit but in any event at least 30 Business  Days prior
to the date of  automatic  renewal of its  election  not to renew  such  Standby
Letter of Credit (a  "Notice  of  Termination"))  and (B) in the case of a Trade
Letter of Credit, 60 days after the date of issuance thereof;  provided that the
terms of each Standby Letter of Credit that is automatically  renewable annually

                                       23

<PAGE>

shall (x) require the Issuing Bank that issued such Standby  Letter of Credit to
give the beneficiary named in such Standby Letter of Credit notice of any Notice
of Termination,  (y) permit such  beneficiary,  upon receipt of such notice,  to
draw under such Standby  Letter of Credit prior to the date such Standby  Letter
of Credit otherwise would have been automatically renewed and (z) not permit the
expiration  date (after giving effect to any renewal) of such Standby  Letter of
Credit in any event to be  extended  to a date  later  than 60 days  before  the
Termination  Date.  If either a Notice of Renewal  is not given by the  relevant
Borrower or a Notice of Termination is given by the Issuing Bank pursuant to the
immediately  preceding  sentence,  such Standby Letter of Credit shall expire on
the date on which it otherwise would have been automatically renewed;  provided,
however,  that even in the absence of receipt of a Notice of Renewal the Issuing
Bank  may  in  its  discretion,   unless  instructed  to  the  contrary  by  the
Administrative Agent or the relevant Borrower, deem that a Notice of Renewal had
been timely  delivered  and in such case, a Notice of Renewal shall be deemed to
have been so delivered  for all purposes  under this  Agreement.  Each  Existing
Letter  of Credit on the  Effective  Date  shall be  Letters  of Credit  for all
purposes hereunder and under the other Loan Documents.  Within the limits of the
Letter of Credit  Facility,  and subject to the limits  referred  to above,  any
Borrower  (other than PI) may request  the  issuance of Letters of Credit  under
this  Section  2.01(c),  repay  any  Letter of Credit  Advances  resulting  from
drawings  thereunder  pursuant to Section  2.04(c)  and request the  issuance of
additional Letters of Credit under this Section 2.01(c).

          SECTION 2.02. Making the Advances. (a) Except as otherwise provided in
Section 2.02(b) or 2.03, each Borrowing (other than a Competitive Bid Borrowing)
shall be made on notice, given not later than 12:00 Noon (New York City time) on
the third  Business Day prior to the date of the proposed  Borrowing in the case
of a Borrowing  consisting of Eurocurrency Rate Advances,  or the first Business
Day  prior  to the date of the  proposed  Borrowing  in the case of a  Borrowing
consisting   of  Prime  Rate   Advances,   by  the  relevant   Borrower  to  the
Administrative  Agent,  which shall give to each respective Lender prompt notice
thereof by telecopier. Each such notice of a Borrowing (a "Notice of Borrowing")
shall be given by telephone,  confirmed immediately in writing, or telecopier in
substantially the form of Exhibit B-1 hereto,  specifying  therein the requested
(i) date of such  Borrowing,  (ii) Facility  under which such Borrowing is to be
made, (iii) Type of Advances comprising such Borrowing, (iv) aggregate amount of
such  Borrowing,  and (v) in the case of a Borrowing  consisting of Eurocurrency
Rate Advances,  initial  Interest Period and the currency for each such Advance.
Each respective Lender shall, before 12:00 Noon (New York City time) on the date
of such  Borrowing,  make  available for the account of its  Applicable  Lending
Office to the  Administrative  Agent at the Administrative  Agent's Account,  in
same day funds,  such  Lender's  ratable  portion of such  Borrowing.  After the
Administrative  Agent's  receipt  of  such  funds  and  upon  fulfilment  of the
applicable  conditions set forth in Article III, the  Administrative  Agent will
make such funds available to the Borrower at the Administrative  Agent's address
referred to in Section 9.02.

          (b) Each Swing Line Borrowing shall be made on notice, given not later
than  12:00  Noon (New York City  time) on the date of the  proposed  Swing Line
Borrowing,  by Paxar to the Swing Line Bank and the  Administrative  Agent. Each
such notice of a Swing Line Borrowing (a "Notice of Swing Line Borrowing") shall
be by telephone,  confirmed  immediately in writing,  or telecopier,  specifying
therein the requested (i) date of such Borrowing,  (ii) amount of such Borrowing
and  (iii)  interest  rate to be  applicable  to the  Advances  comprising  such

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<PAGE>

Borrowing  (which  interest  rate  shall  either be the Prime Rate or such other
interest rate as may be agreed upon by Paxar and the Swing Line Bank). The Swing
Line Bank will make the amount thereof available to the Administrative  Agent at
the Administrative  Agent's Account, in same day funds. After the Administrative
Agent's receipt of such funds and upon  fulfilment of the applicable  conditions
set forth in  Article  III,  the  Administrative  Agent  will  make  such  funds
available to Paxar at the Administrative  Agent's address referred to in Section
9.02.  Upon written demand by the Swing Line Bank, with a copy of such demand to
the  Administrative  Agent, each other Lender shall purchase from the Swing Line
Bank,  and the Swing Line Bank shall sell and assign to each such other  Lender,
such other Lender's Pro Rata A Share of such  outstanding  Swing Line Advance as
of the  date of  such  demand,  by  making  available  for  the  account  of its
Applicable  Lending  Office to the  Administrative  Agent for the account of the
Swing Line Bank, by deposit to the Administrative  Agent's Account,  in same day
funds,  an amount equal to the portion of the  outstanding  principal  amount of
such Swing Line Advance to be purchased  by such Lender.  Each Lender  agrees to
purchase  its Pro Rata A Share of an  outstanding  Swing Line Advance on (i) the
Business Day on which demand  therefor is made by the Swing Line Bank,  provided
notice of such demand is given not later than 11:00 A.M. (New York City time) on
such Business Day or (ii) the first Business Day next  succeeding such demand if
notice of such demand is given after such time. Paxar hereby agrees to each such
sale and assignment.  Effective upon each such sale and  assignment,  each Swing
Line  Advance  purchased  by a Lender  shall be,  for all  purposes  under  this
Agreement,  a Revolving  Credit A Advance (which shall be a Prime Rate Advance).
Upon any such assignment by the Swing Line Bank to any other Lender of a portion
of a Swing Line  Advance,  the Swing Line Bank  represents  and warrants to such
other Lender that the Swing Line Bank is the legal and beneficial  owner of such
interest being  assigned by it, free and clear of any liens,  but makes no other
representation  or warranty and assumes no  responsibility  with respect to such
Swing Line Advance,  the Loan Documents or any Loan Party.  If and to the extent
that any Lender  shall not have so made the  amount of such  Swing Line  Advance
available  to  the  Administrative  Agent,  such  Lender  agrees  to  pay to the
Administrative  Agent  forthwith on demand such amount  together  with  interest
thereon,  for each day from the date of demand by the Swing  Line Bank until the
date such amount is paid to the Administrative Agent, at the Federal Funds Rate.
If such Lender shall pay to the Administrative Agent such amount for the account
of the Swing Line Bank on any Business Day, the outstanding  principal amount of
the Swing  Line  Advance  made by the Swing  Line Bank  shall be reduced by such
amount on such Business Day.

          (c) Anything in subsection (a) above to the contrary  notwithstanding,
(i) a Borrower may not select  Eurocurrency  Rate  Advances for any Borrowing if
the  aggregate  amount  of such  Borrowing  is less than  $10,000,000  or if the
obligation  of the  Lenders to make  Eurocurrency  Rate  Advances  shall then be
suspended  pursuant  to  Section  2.09 or 2.13 and (ii)  the  Eurocurrency  Rate
Advances may not be outstanding as part of more than 10 separate Borrowings.

          (d) Each Notice of Borrowing and Notice of Swing Line Borrowing  shall
be  irrevocable  and  binding  on the  relevant  Borrower.  In the  case  of any
Borrowing that the related  Notice of Borrowing  specifies is to be comprised of
Eurocurrency  Rate Advances,  the relevant  Borrower shall indemnify each Lender
against  any loss,  cost or expense  incurred  by such Lender as a result of any
failure to fulfil on or before the date  specified  in such Notice of  Borrowing
for  such  Borrowing  the  applicable  conditions  set  forth  in  Article  III,
including, without limitation, any loss (including loss of anticipated profits),

                                       25

<PAGE>

cost or  expense  incurred  by  reason of the  liquidation  or  reemployment  of
deposits or other  funds  acquired by such Lender to fund the Advance to be made
by such Lender as part of such Borrowing when such Advance,  as a result of such
failure, is not made on such date.

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

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

          SECTION 2.03. The Competitive Bid Advances.  (a) Each Lender severally
agrees that Paxar may make  Competitive  Bid Borrowings  under this Section 2.03
from time to time on any  Business  Day during the period  from the date  hereof
until the date occurring 30 days prior to the Termination Date in the manner set
forth  below;  provided  that,  following  the  making of each  Competitive  Bid
Borrowing,  (x) the  aggregate  amount  of the  Competitive  Bid  Advances  then
outstanding  shall  not  exceed  $60,000,000  and (y)  the sum of the  aggregate
principal  amount of the Revolving  Credit A Advances,  the  Revolving  Credit B
Advances,  the Swing  Line  Advances,  the  Letter of  Credit  Advances  and the
Competitive Bid Advances then outstanding plus the aggregate Available Amount of
all Letters of Credit  outstanding  at such time shall not exceed the  aggregate
amount of the Revolving Credit Commitments of the Lenders.

          (i) Paxar may request a Competitive  Bid Borrowing  under this Section
     2.03 by delivering to the Administrative Agent, by telecopier,  a notice of
     a Competitive Bid Borrowing (a "Notice of Competitive Bid  Borrowing"),  in
     substantially  the form of  Exhibit  B-2  hereto,  specifying  therein  the
     requested  (v)  date  of  such  proposed  Competitive  Bid  Borrowing,  (w)
     aggregate  amount of such proposed  Competitive  Bid Borrowing,  (x) in the
     case of a Competitive Bid Borrowing  consisting of LIBO Rate Advances,  the
     Interest Period for and the maturity date of such LIBO Rate Advance,  or in
     the case of a Competitive Bid Borrowing  consisting of Fixed Rate Advances,

                                       26

<PAGE>

   maturity  date for  repayment of each Fixed Rate Advance to be made as part
     of such  Competitive Bid Borrowing  (which maturity date may not be earlier
     than the date  occurring  7 days  after  the date of such  Competitive  Bid
     Borrowing  or later than the earlier of (I) 180 days after the date of such
     Competitive  Bid Borrowing  and (II) the  Termination  Date),  (y) interest
     payment date or dates relating thereto,  and (z) other terms (if any) to be
     applicable to such  Competitive  Bid  Borrowing,  not later than 10:00 A.M.
     (New York City time) (A) at least one Business Day prior to the date of the
     proposed Competitive Bid Borrowing, if Paxar shall specify in the Notice of
     Competitive  Bid Borrowing  that the rates of interest to be offered by the
     Lenders  shall be fixed rates per annum (the Advances  comprising  any such
     Competitive   Bid  Borrowing  being  referred  to  herein  as  "Fixed  Rate
     Advances")  and (B) at least  five  Business  Days prior to the date of the
     proposed  Competitive Bid Borrowing,  if Paxar shall instead specify in the
     Notice of  Competitive  Bid Borrowing that the rates of interest be offered
     by the  Lenders are to be based on the LIBO Rate (the  Advances  comprising
     such  Competitive  Bid  Borrowing  being  referred  to herein as "LIBO Rate
     Advances").  Each Notice of Competitive  Bid Borrowing shall be irrevocable
     and  binding on Paxar.  The  Administrative  Agent  shall in turn  promptly
     notify each Lender of each request for a Competitive Bid Borrowing received
     by it from Paxar by sending  such  Lender a copy of the  related  Notice of
     Competitive Bid Borrowing.

          (ii) Each Lender may, if, in its sole discretion,  it elects to do so,
     irrevocably  offer to make one or more Competitive Bid Advances to Paxar as
     part of such  proposed  Competitive  Bid  Borrowing  at a rate or  rates of
     interest specified by such Lender in its sole discretion,  by notifying the
     Administrative  Agent  (which shall give prompt  notice  thereof to Paxar),
     before  9:30  A.M.  (New  York  City  time)  on the  date of such  proposed
     Competitive  Bid  Borrowing,  in the case of a  Competitive  Bid  Borrowing
     consisting  of Fixed Rate  Advances  and before  10:00 A.M.  (New York City
     time) three Business Days before the date of such proposed  Competitive Bid
     Borrowing,  in the case of a Competitive  Bid Borrowing  consisting of LIBO
     Rate Advances, of the minimum amount and maximum amount of each Competitive
     Bid  Advance  which  such  Lender  would be willing to make as part of such
     proposed  Competitive  Bid  Borrowing  (which  amounts may,  subject to the
     proviso to the first sentence of this Section 2.03(a), exceed such Lender's
     Commitment,  if  any),  the rate or rates  of  interest  therefor  and such
     Lender's  Applicable  Lending Office with respect to such  Competitive  Bid
     Advance;  provided  that if the  Administrative  Agent in its capacity as a
     Lender  shall,  in its sole  discretion,  elect to make any such offer,  it
     shall notify Paxar of such offer at least 30 minutes before the time and on
     the  date  on  which  notice  of  such  election  is to  be  given  to  the
     Administrative Agent by the other Lenders. If any Lender shall elect not to
     make such an offer, such Lender shall so notify the  Administrative  Agent,
     before 10:00 A.M.  (New York City time) on the date on which notice of such
     election is to be given to the  Administrative  Agent by the other Lenders,
     and such  Lender  shall  not be  obligated  to,  and  shall  not,  make any
     Competitive Bid Advance as part of such Competitive Bid Borrowing; provided
     that the  failure  by any Lender to give such  notice  shall not cause such
     Lender to be obligated to make any  Competitive Bid Advance as part of such
     proposed Competitive Bid Borrowing.

                                       27

<PAGE>

          (iii) Paxar shall, in turn,  before 10:30 A.M. (New York City time) on
     the  date of such  proposed  Competitive  Bid  Borrowing,  in the case of a
     Competitive  Bid  Borrowing  consisting  of Fixed Rate  Advances and before
     11:00 A.M. (New York City time) three Business Days before the date of such
     proposed  Competitive  Bid  Borrowing,  in the  case of a  Competitive  Bid
     Borrowing consisting of LIBO Rate Advances, either:

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

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

          (iv) If Paxar notifies the Administrative  Agent that such Competitive
     Bid  Borrowing  is  cancelled  pursuant to paragraph  (iii)(x)  above,  the
     Administrative  Agent shall give prompt  notice  thereof to the Lenders and
     such Competitive Bid Borrowing shall not be made.

          (v) If Paxar  accepts  one or more of the offers made by any Lender or
     Lenders  pursuant to paragraph  (iii)(y) above,  the  Administrative  Agent
     shall in turn  promptly  notify (A) each  Lender  that has made an offer as
     described in paragraph (ii) above, of the date and aggregate amount of such
     Competitive  Bid  Borrowing  and whether or not any offer or offers made by
     such Lender  pursuant to paragraph  (ii) above have been accepted by Paxar,
     (B) each Lender that is to make a  Competitive  Bid Advance as part of such
     Competitive Bid Borrowing, of the amount of each Competitive Bid Advance to
     be made by such Lender as part of such  Competitive Bid Borrowing,  and (C)
     each  Lender  that is to make a  Competitive  Bid  Advance  as part of such
     Competitive Bid Borrowing,  upon receipt, that the Administrative Agent has
     received forms of documents  appearing to fulfil the applicable  conditions
     set forth in Article  III.  Each Lender that is to make a  Competitive  Bid
     Advance as part of such Competitive Bid Borrowing  shall,  before 1:00 P.M.
     (New  York  City  time)  on the  date of  such  Competitive  Bid  Borrowing
     specified in the notice received from the Administrative  Agent pursuant to
     clause (A) of the  preceding  sentence  or any later time when such  Lender
     shall have received notice from the Administrative Agent pursuant to clause
     (C) of the  preceding  sentence,  make  available  for the  account  of its
     Applicable Lending Office to the Administrative Agent at the Administrative

                                       28

<PAGE>

     Agent's  Account,  in  same  day  funds,  such  Lender's  portion  of  such
     Competitive Bid Borrowing. Upon fulfilment of the applicable conditions set
     forth in Article III and after receipt by the Administrative  Agent of such
     funds, the Administrative  Agent will make such funds available to Paxar at
     the  Administrative  Agent's address referred to in Section 9.02.  Promptly
     after each Competitive Bid Borrowing the  Administrative  Agent will notify
     each Lender of the amount of the  Competitive  Bid Borrowing and the Unused
     Revolving  Credit  Commitments  of the Lenders  after giving effect to such
     Competitive Bid Borrowing.

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

          (b) Each  Competitive Bid Borrowing shall be in an aggregate amount of
$5,000,000  or an  integral  multiple  of  $1,000,000  in  excess  thereof  and,
following the making of each  Competitive Bid Borrowing,  the Borrowers shall be
in  compliance  with the  limitations  set  forth in the  proviso  to the  first
sentence of subsection (a) above.

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

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

          (e) Paxar shall pay  interest on the unpaid  principal  amount of each
Competitive  Bid Advance  from the date of such  Competitive  Bid Advance to the
date the principal  amount of such Competitive Bid Advance is repaid in full, at
the rate of interest for such  Competitive  Bid Advance  specified by the Lender
making such Competitive Bid Advance in its notice with respect thereto delivered
pursuant to subsection  (a)(ii) above,  payable on the interest  payment date or
dates specified by Paxar for such  Competitive Bid Advance in the related Notice

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<PAGE>

of Competitive Bid Borrowing  delivered  pursuant to subsection (a)(i) above, as
provided in the Competitive  Bid Note  evidencing such  Competitive Bid Advance.
Upon the  occurrence and during the  continuance  of an Event of Default,  Paxar
shall pay  interest on the amount of unpaid  principal  of and  interest on each
Competitive  Bid  Advance  owing to a Lender,  payable in arrears on the date or
dates interest is payable thereon,  at a rate per annum equal at all times to 2%
per annum above the rate per annum required to be paid on such  Competitive  Bid
Advance under the terms of the Competitive Bid Note evidencing such  Competitive
Bid Advance unless otherwise agreed in such Competitive Bid Note.

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

          (g) Upon delivery of each Notice of Competitive  Bid Borrowing,  Paxar
shall pay a non-refundable fee of $3,500 to the Administrative Agent for its own
account.

          SECTION 2.04. Issuance of and Drawings and Reimbursement Under Letters
of Credit. (a) Request for Issuance.  Each Letter of Credit shall be issued upon
notice,  given not  later  than  11:00  A.M.  (New York City  time) on the fifth
Business  Day  prior to the date of the  proposed  issuance  of such  Letter  of
Credit,  by the relevant  Borrower to the Issuing Bank,  which shall give to the
Administrative  Agent and each Lender prompt notice thereof by telecopier.  Each
such notice of issuance of a Letter of Credit (a "Notice of Issuance")  shall be
by  telephone,  confirmed  immediately  in writing,  or  telecopier,  specifying
therein the requested (A) date of such issuance (which shall be a Business Day),
(B)  Available  Amount of such  Letter of Credit,  (C)  expiration  date of such
Letter of Credit,  (D) name and  address of the  beneficiary  of such  Letter of
Credit and (E) form of such Letter of Credit,  and shall be  accompanied by such
application  and  agreement for letter of credit as the Issuing Bank may specify
to such Borrower for use in connection  with such requested  Letter of Credit (a
"Letter  of Credit  Agreement").  If (x) the  requested  form of such  Letter of
Credit is acceptable to the Issuing Bank in its sole  discretion  and (y) it has
not received  written  notice of objection  to such  issuance  from the Required
Lenders, the Issuing Bank will, upon fulfilment of the applicable conditions set
forth in Article  III,  make such  Letter of Credit  available  to the  relevant
Borrower at its office  referred to in Section 9.02 or as otherwise  agreed with
such Borrower in connection  with such issuance.  In the event and to the extent
that the provisions of any Letter of Credit  Agreement  shall conflict with this
Agreement, the provisions of this Agreement shall govern.

          (b) Letter of Credit  Reports.  The Issuing Bank shall  furnish (A) to
the Administrative Agent and each Lender on the first Business Day of each month
a written report summarizing  issuance and expiration dates of Letters of Credit
issued  during the  preceding  month and  drawings  during  such month under all
Letters of Credit  and (B) to the  Administrative  Agent and each  Lender on the
first  Business Day of each calendar  quarter a written report setting forth the
average daily aggregate  Available Amount during the preceding  calendar quarter
of all Letters of Credit.

          (c) Drawing and  Reimbursement.  The payment by the Issuing  Bank of a
draft drawn under any Letter of Credit shall constitute for all purposes of this
Agreement  the making by the Issuing Bank of a Letter of Credit  Advance,  which
shall be a Prime Rate Advance,  in the amount of such draft. Upon written demand

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<PAGE>

by the Issuing  Bank,  with a copy of such demand to the  Administrative  Agent,
each Lender shall  purchase  from the Issuing  Bank,  and the Issuing Bank shall
sell and  assign to each such  Lender,  such  Lender's  Pro Rata A Share of such
outstanding Letter of Credit Advance as of the date of such purchase,  by making
available for the account of its Applicable Lending Office to the Administrative
Agent for the  account of the  Issuing  Bank,  by deposit to the  Administrative
Agent's  Account,  in same day  funds,  an amount  equal to the  portion  of the
outstanding principal amount of such Letter of Credit Advance to be purchased by
such Lender.  Promptly after receipt  thereof,  the  Administrative  Agent shall
transfer  such funds to the Issuing Bank.  Each  Borrower  hereby agrees to each
such sale and assignment. Each Lender agrees to purchase its Pro Rata A Share of
an outstanding  Letter of Credit Advance on (i) the Business Day on which demand
therefor is made by the Issuing  Bank,  provided  notice of such demand is given
not later than 11:00 A.M.  (New York City time) on such Business Day or (ii) the
first Business Day next succeeding such demand if notice of such demand is given
after such  time.  Upon any such  assignment  by the  Issuing  Bank to any other
Lender of a portion of a Letter of Credit  Advance,  the Issuing Bank represents
and  warrants  to such  other  Lender  that the  Issuing  Bank is the  legal and
beneficial  owner of such interest  being  assigned by it, free and clear of any
liens,   but  makes  no  other   representation   or  warranty  and  assumes  no
responsibility with respect to such Letter of Credit Advance, the Loan Documents
or any Loan Party.  If and to the extent that any Lender  shall not have so made
the amount of such  Letter of Credit  Advance  available  to the  Administrative
Agent, such Lender agrees to pay to the Administrative Agent forthwith on demand
such amount together with interest thereon, for each day from the date of demand
by the  Issuing  Bank until the date such  amount is paid to the  Administrative
Agent,  at the Federal  Funds Rate for its account or the account of the Issuing
Bank, as applicable.  If such Lender shall pay to the Administrative  Agent such
amount for the account of the Issuing Bank on any Business  Day,  such amount so
paid in respect of principal shall constitute a Letter of Credit Advance made by
such  Lender  on such  Business  Day for  purposes  of this  Agreement,  and the
outstanding principal amount of the Letter of Credit Advance made by the Issuing
Bank shall be reduced by such amount on such Business Day.

          (d)  Failure to Make  Letter of Credit  Advances.  The  failure of any
Lender  to make  the  Letter  of  Credit  Advance  to be made by it on the  date
specified  in  Section  2.04(c)  shall  not  relieve  any  other  Lender  of its
obligation  hereunder to make its Letter of Credit  Advance on such date, but no
Lender  shall be  responsible  for the  failure of any other  Lender to make the
Letter of Credit Advance to be made by such other Lender on such date.

          SECTION 2.05. Fees. (a) Revolving Credit Facility Fee. Paxar agrees to
pay to the  Administrative  Agent for the account of each Lender (other than the
Designated  Bidders) a facility  fee on the  aggregate  amount of such  Lender's
respective  Revolving  Credit  Commitment from the Effective Date in the case of
each Initial  Lender and from the later of the Effective  Date and the effective
date specified in the  Assignment  and Acceptance  pursuant to which it became a
Lender in the case of each other Lender until the Termination Date at a rate per
annum equal to the Applicable Percentage in effect from time to time, payable in
arrears quarterly on the last day of each March,  June,  September and December,
commencing March 31, 2006, and on the Termination Date.

          (b)  Letter  of  Credit  Fees,   Etc.  (i)  Paxar  shall  pay  to  the
Administrative  Agent  for the  account  of each  Lender  having a  Revolving  A

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<PAGE>

Commitment a commission,  payable in arrears  quarterly on the last Business Day
of each March, June,  September and December,  commencing March 31, 2006, and on
the  earliest  to  occur  of  the  full  drawing,  expiration,   termination  or
cancellation of any such Letter of Credit and on the  Termination  Date, on such
Lender's Pro Rata Share of the average daily aggregate  Available  Amount during
such  quarter  of all  Letters  of Credit  outstanding  from time to time at the
Applicable Margin then in effect for the Revolving Credit Facility.

               (ii) Paxar shall pay to the Issuing  Bank,  for its own  account,
     such  commissions,  issuance fees,  fronting fees,  transfer fees and other
     fees and charges in connection with the issuance or  administration of each
     Letter of Credit as Paxar and the Issuing Bank shall agree.

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

          SECTION 2.06. Termination or Reduction of the Commitments. Paxar shall
have the right,  upon at least five Business Days' notice to the  Administrative
Agent,  to  terminate  in whole or reduce  ratably in part the Unused  Revolving
Credit  A  Commitments  or the  Unused  Revolving  Credit B  Commitments  of the
respective  Lenders,  provided  that  each  partial  reduction  shall  be in the
aggregate amount of $10,000,000 or an integral  multiple of $1,000,000 in excess
thereof and provided  further that the aggregate  amount of the Revolving Credit
Commitments  of the Lenders  shall not be reduced to an amount that is less than
an  amount  equal  to the  sum of (x)  the  aggregate  principal  amount  of the
Competitive Bid Advances then outstanding and (y) the aggregate Available Amount
of all Letters of Credit then  outstanding,  and provided,  that in the event of
the reduction of the Unused Revolving Credit B Commitments, the Revolving Credit
A Commitment of each PI Lender shall be increased by an amount equivalent to the
reduction of its Revolving Credit B Commitment,  and Schedule II hereto shall be
appropriately amended to reflect such reduction and increase.

          SECTION 2.07.  Repayment of Advances.  (a) Revolving  Credit Advances.
Each Borrower shall repay to the Administrative Agent for the ratable account of
the  Lenders  on the  Termination  Date the  aggregate  principal  amount of the
Revolving  Credit Advances by such Borrower then  outstanding.  In the event any
Revolving  Credit B Advance is not paid when due, upon written  demand by any PI
Lender,  with a copy of such  demand to the  Administrative  Agent,  each  other
Lender  shall  purchase  from such PI Lender,  and such PI Lender shall sell and
assign to each such other  Lender,  such other  Lender's  Pro Rata Share of such
outstanding  Revolving Credit B Advance as of the date of such demand, by making
available for the account of its Applicable Lending Office to the Administrative
Agent for the  account  of such PI  Lender,  by  deposit  to the  Administrative
Agent's  Account,  in same day  funds,  an amount  equal to the  portion  of the
outstanding  principal amount of such Revolving Credit B Advance to be purchased
by such Lender. PI hereby agrees to each such sale and assignment. Upon any such
assignment  by such PI Lender to any other  Lender of a portion  of a  Revolving
Credit B Advance,  such PI Lender  represents  and warrants to such other Lender

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<PAGE>

that such PI Lender is the legal and  beneficial  owner of such  interest  being
assigned by it, free and clear of any liens,  but makes no other  representation
or warranty and assumes no responsibility  with respect to such Revolving Credit
B Advance,  the Loan Documents or any Loan Party.  If and to the extent that any
Lender  shall  not have so made the  amount of such  Revolving  Credit B Advance
available  to  the  Administrative  Agent,  such  Lender  agrees  to  pay to the
Administrative  Agent  forthwith on demand such amount  together  with  interest
thereon,  for each day from the date of demand by such PI Lender  until the date
such amount is paid to the  Administrative  Agent, at the Federal Funds Rate. If
such Lender shall pay to the Administrative Agent such amount for the account of
such PI Lender on any Business  Day,  the  outstanding  principal  amount of the
Revolving  Credit B Advance  made by such PI  Lender  shall be  reduced  by such
amount on such Business Day.

          (b) Swing Line Advances. Paxar shall repay to the Administrative Agent
for the  account of the Swing Line Bank and each  other  Lender  that has made a
Swing Line Advance the outstanding  principal  amount of each Swing Line Advance
made by each of them on the  earliest of (i) the date  repayment  is demanded by
the Swing  Line Bank,  (ii) 60 days  after  such Swing Line  Advance is made and
(iii) the Termination Date.

          (c) Letter of Credit Advances.  (i) The relevant  Borrower shall repay
to the  Administrative  Agent for the account of the Issuing Bank and each other
Lender that has made a Letter of Credit Advance on the earlier of demand and the
Termination  Date the  outstanding  principal  amount  of each  Letter of Credit
Advance made by each of them.

               (ii) The Obligations of each Borrower under this  Agreement,  any
     Letter of Credit  Agreement and any other agreement or instrument  relating
     to any Letter of Credit shall be unconditional  and irrevocable,  and shall
     be paid  strictly  in  accordance  with the terms of this  Agreement,  such
     Letter of Credit Agreement and such other agreement or instrument under all
     circumstances,  including,  without limitation, the following circumstances
     (it  being  understood  that any such  payment  by a  Borrower  is  without
     prejudice to, and does not constitute a waiver of, any rights such Borrower
     might have or might  acquire as a result of the payment by the Issuing Bank
     of any draft or the reimbursement by such Borrower thereof):

               (A) any lack of validity or  enforceability of any Loan Document,
          any  Letter of  Credit  Agreement,  any  Letter of Credit or any other
          agreement or instrument  relating thereto (all of the foregoing being,
          collectively, the "L/C Related Documents");

               (B) any change in the time,  manner or place of payment of, or in
          any other term of, all or any of the  Obligations  of any  Borrower in
          respect of any L/C Related  Document or any other  amendment or waiver
          of or any  consent  to  departure  from all or any of the L/C  Related
          Documents;

               (C) the existence of any claim,  set-off,  defense or other right
          that a Borrower  may have at any time against any  beneficiary  or any
          transferee  of a Letter of Credit  (or any  Persons  for whom any such
          beneficiary or any such transferee may be acting), the Issuing Bank or
          any  other  Person,   whether  in  connection  with  the  transactions
          contemplated   by  the  L/C  Related   Documents   or  any   unrelated
          transaction;

                                       33

<PAGE>

               (D) any statement or any other document  presented under a Letter
          of Credit proving to be forged, fraudulent, invalid or insufficient in
          any respect or any statement therein being untrue or inaccurate in any
          respect;

               (E) payment by the Issuing Bank under a Letter of Credit  against
          presentation  of a draft or certificate  that does not strictly comply
          with the terms of such Letter of Credit;

               (F) any exchange, release or non-perfection of any collateral, or
          any release or amendment or waiver of or consent to departure from the
          Guaranty,  the Subsidiary Guaranty or any other guarantee,  for all or
          any of the  Obligations  of a Borrower  in respect of the L/C  Related
          Documents; or

               (G) any other  circumstance or happening  whatsoever,  whether or
          not similar to any of the foregoing,  including,  without  limitation,
          any other  circumstance  that  might  otherwise  constitute  a defense
          available to, or a discharge of, a Borrower or a guarantor.

          SECTION 2.08.  Interest.  (a) Scheduled Interest.  Each Borrower shall
pay  interest  on the  unpaid  principal  amount  of each  Advance  (other  than
Competitive  Bid  Advances  or  Swing  Line  Advances  that are not  Prime  Rate
Advances)  owing to each Lender by such  Borrower  from the date of such Advance
until such  principal  amount shall be paid in full, at the following  rates per
annum:

          (i) Prime Rate  Advances.  During  such  periods as such  Advance is a
     Prime Rate  Advance,  a rate per annum equal at all times to the Prime Rate
     in effect from time to time,  payable in arrears  quarterly on the last day
     of each March, June,  September and December during such periods and on the
     date such Prime Rate Advance shall be Converted or paid in full.

          (ii) Eurocurrency  Rate Advances.  During such periods as such Advance
     is a Eurocurrency Rate Advance,  a rate per annum equal at all times during
     each  Interest  Period for such Advance to the sum of (x) the  Eurocurrency
     Rate for such  Interest  Period for such  Advance  plus (y) the  Applicable
     Margin in effect on the  first  day of such  Interest  Period  plus (z) the
     Additional  Cost Rate,  if any,  and any other amount  payable  pursuant to
     Section 2.08(d), payable in arrears on the last day of such Interest Period
     and, if such Interest  Period has a duration of more than three months,  on
     each day that occurs  during such  Interest  Period every three months from
     the first day of such  Interest  Period  and on the date such  Eurocurrency
     Rate Advance shall be Converted or paid in full.

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

                                       34

<PAGE>

paid when due, from the date such amount shall be due until such amount shall be
paid in full,  payable in arrears on the date such amount  shall be paid in full
and on demand,  at a rate per annum equal at all times to 2% per annum above the
rate per annum  required  to be paid on Prime Rate  Advances  pursuant to clause
(a)(i) above.

          (c) Additional  Interest on Eurocurrency Rate Advances.  Each Borrower
shall pay to each  Lender,  so long as and to the extent  such  Lender  shall be
required  under  regulations  of the Board of Governors  of the Federal  Reserve
System to maintain  reserves with respect to liabilities or assets consisting of
or  including  Eurocurrency  Liabilities,  additional  interest  on  the  unpaid
principal amount of each Eurocurrency Rate Advance of such Lender, from the date
of such  Eurocurrency  Rate Advance until such principal amount is paid in full,
at an interest  rate per annum equal at all times to the  remainder  obtained by
subtracting  (a) the  Eurocurrency  Rate for the applicable  Interest Period for
such  Eurocurrency  Rate  Advance  from (b) the rate  obtained by dividing  such
Eurocurrency  Rate by a  percentage  equal to 100% minus the  Eurocurrency  Rate
Reserve Percentage of such Lender for such Interest Period, payable on each date
on which interest is otherwise payable on such  Eurocurrency Rate Advance.  Such
Lender shall as soon as practicable  provide notice to the Administrative  Agent
and the Borrowers of any such additional interest arising in connection with any
such  Eurocurrency  Rate Advance,  which notice shall be conclusive and binding,
absent manifest error.

          (d)  Additional  Reserve  Costs.  (i) If and so long as any  Lender is
required to make special deposits with the Financial  Services  Authority or the
Bank of England or to  maintain  reserve  asset  ratios or pay fees  (other than
deposits or reserves  reflected in the determination of the Eurocurrency  Rate),
in each case in  respect of any of such  Lender's  Advances  denominated  in the
Primary  Currency,  such  Lender may  require  the  respective  Borrower to pay,
contemporaneously  with each  payment of interest on such  Advances,  additional
interest on such Advances at a rate per annum equal to the Additional Cost Rate,
as defined in (and  calculated in accordance  with the formula and in the manner
set forth in) Schedule 2.08.

          (ii) If and so long as any  Lender  lending  from a branch  or  office
     located in a Participating  Member State is required to comply with reserve
     assets,  liquidity,  cash  margin  or  other  requirements  imposed  by the
     European  Central  Bank  or the  European  System  of  Central  Banks  (but
     excluding requirements reflected in the Additional Cost Rate) in respect of
     any of such Lender's  Advances  denominated in the Primary  Currency,  such
     Lender may require the respective Borrower to pay,  contemporaneously  with
     each  payment of interest  on such  Advances,  additional  interest on such
     Advances  at a rate per annum  determined  by such Lender to be the cost to
     such  Lender  of  complying  with such  requirements  in  relation  to such
     Advances.

          (iii) Any  additional  interest owed pursuant to paragraph (i) or (ii)
     above shall be determined by the relevant Lender, which determination shall
     be  conclusive  absent  manifest  error,  and  notified  to the  respective
     Borrower (with a copy to the  Administrative  Agent) at least five Business
     Days  before  each  date of which  interest  is  payable  for the  relevant
     Advances, and such additional interest so notified to such Borrower by such
     Lender shall be payable to the Administrative Agent for the account of such
     Lender on each date on which interest is payable for such Advances.

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<PAGE>

          (e)  Limitation  on Interest.  In no event shall the interest  rate as
determined in  subsections  (a), (b) or (c) above exceed the limits set forth in
any applicable  national usury laws. Should any such usury law limit be exceeded
at any time in respect of any Advance,  the  applicable  interest rate hereunder
for such Advance shall be deemed  automatically  reduced to the maximum interest
rate permitted  under the applicable  national usury law for such period of time
as needed to comply with such usury law.

          SECTION 2.09.  Interest  Rate  Determination.  (a) The  Administrative
Agent  shall  give  prompt  notice  to the  Borrowers  and  the  Lenders  of the
applicable interest rate determined by the Administrative  Agent for purposes of
Section 2.08(a)(i) or (ii).

          (b) If, with respect to any Eurocurrency  Rate Advances,  the Required
Lenders  notify  the  Administrative  Agent that the  Eurocurrency  Rate for any
Interest  Period for such Advances will not adequately  reflect the cost to such
Required Lenders of making, funding or maintaining their respective Eurocurrency
Rate Advances for such Interest Period, the Administrative Agent shall forthwith
so notify the Borrowers and the Lenders,  whereupon (i) each  Eurocurrency  Rate
Advance will automatically, on the last day of the then existing Interest Period
therefor,  (A) if such Eurocurrency Rate Advances are denominated in US Dollars,
Convert into Prime Rate Advances and (B) if such  Eurocurrency Rate Advances are
denominated in a Primary  Currency,  be exchanged for an Equivalent amount of US
Dollars and converted into Prime Rate  Advances,  and (ii) the obligation of the
Lenders to make, or to Convert Revolving Credit Advances into, Eurocurrency Rate
Advances  shall be  suspended  until the  Administrative  Agent shall notify the
Borrowers  and the Lenders that the  circumstances  causing such  suspension  no
longer exist.

          (c) If a Borrower  shall fail to select the  duration of any  Interest
Period for any  Eurocurrency  Rate  Advances in accordance  with the  provisions
contained  in  the  definition  of  "Interest   Period"  in  Section  1.01,  the
Administrative  Agent will forthwith so notify such Borrower and the Lenders and
such Advances will automatically,  on the last day of the then existing Interest
Period therefor,  (i) if such  Eurocurrency  Rate Advances are denominated in US
Dollars,  Convert into Prime Rate  Advances and (ii) if such  Eurocurrency  Rate
Advances are denominated in a Primary  Currency,  be exchanged for an Equivalent
amount of US Dollars and Converted into Prime Rate Advances.

          (d) On the date on which  the  aggregate  unpaid  principal  amount of
Eurocurrency Rate Advances comprising any Borrowing shall be reduced, by payment
or  prepayment  or  otherwise,  to less than  $1,000,000,  such  Advances  shall
automatically  (i) if such  Eurocurrency  Rate  Advances are  denominated  in US
Dollars,  Convert into Prime Rate  Advances and (ii) if such  Eurocurrency  Rate
Advances are denominated in a Primary  Currency,  be exchanged for an Equivalent
amount of US Dollars and Converted into Prime Rate Advances.

          (e) Upon the  occurrence  and during the  continuance  of any Event of
Default, (i) each Eurocurrency Rate Advance will automatically,  on the last day
of the then existing  Interest Period therefor,  (A) if such  Eurocurrency  Rate
Advances are denominated in US Dollars, Convert into Prime Rate Advances and (B)
if such  Eurocurrency  Rate Advances are denominated in a Primary  Currency,  be
exchanged for an Equivalent  amount of US Dollars and Converted  into Prime Rate
Advances and (ii) the obligation of the Lenders to make, or to Convert  Advances
into, Eurocurrency Rate Advances shall be suspended.

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<PAGE>

          SECTION  2.10.  Conversion  of  Advances.  Each  Borrower  may  on any
Business Day, upon notice given to the Administrative Agent not later than 12:00
Noon  (New York City  time) on the third  Business  Day prior to the date of the
proposed  Conversion  and subject to the  provisions  of Sections 2.09 and 2.13,
Convert  all  Advances  owing  by such  Borrower  (other  than  Competitive  Bid
Advances) of one Type  comprising the same  Borrowing into Advances  (other than
Competitive  Bid Advances) of the other Type, so long as, after giving effect to
any such Conversion, each such Borrowing is comprised of Advances denominated in
the same currency and, in the case of any  Borrowing  comprised of  Eurocurrency
Rate Advances,  having the same Interest Period; provided,  however, that (w) no
Eurocurrency  Rate Advances of one currency shall be Converted into Eurocurrency
Rate  Advances of another  currency,  (x) any  Conversion of  Eurocurrency  Rate
Advances  into  Prime  Rate  Advances  shall be made  only on the last day of an
Interest Period for such Eurocurrency Rate Advances, (y) any Conversion of Prime
Rate Advances  into  Eurocurrency  Rate Advances  shall be in an amount not less
than the minimum  amount  specified in Section  2.02(c) and (z) no Conversion of
any such Advances shall result in more separate  Borrowings than permitted under
Section 2.02(c). Each such notice of a Conversion shall, within the restrictions
specified above,  specify (i) the date of such Conversion,  (ii) the Advances to
be Converted,  and (iii) if such Conversion is into  Eurocurrency Rate Advances,
the  currency of and the duration of the initial  Interest  Period for each such
Advance.  Each  notice of  Conversion  shall be  irrevocable  and binding on the
relevant  Borrower.  Upon the  occurrence  and  during  the  continuance  of any
Default,  the aggregate amount of any Primary Currency Advances then outstanding
shall be converted  into the  Equivalent in US Dollars as determined on the date
of such Default

          SECTION 2.11.  Prepayments.  (a) Optional.  Each Borrower may, upon at
least one  Business  Day's  notice in the case of Prime Rate  Advances and three
Business Days' notice in the case of Eurocurrency Rate Advances, in each case to
the  Administrative  Agent  stating the proposed  date and  aggregate  principal
amount of the  prepayment,  and if such  notice is given  such  Borrower  shall,
prepay the outstanding  principal  amount of the Advances owing by such Borrower
and comprising part of the same Borrowing in whole or ratably in part,  together
with accrued  interest to the date of such  prepayment on the  principal  amount
prepaid;  provided,  however,  that (x) each partial  prepayment  shall be in an
aggregate  principal amount of $1,000,000 or an integral multiple of $100,000 in
excess thereof (or the Equivalent  thereof in the Primary Currency in which such
Revolving  Credit  Borrowing is denominated,  determined on the date the related
notice of prepayment is given) and (y) in the event of any such  prepayment of a
Eurocurrency  Rate Advance,  such  Borrower  shall be obligated to reimburse the
Lenders in respect thereof pursuant to Section 9.04(c).

          (b) Mandatory.  (i) Paxar shall, on each and any Business Day that (A)
the sum of the aggregate  principal  amount of (u) the Revolving Credit Advances
denominated in US Dollars,  plus (v) the Equivalent on such day of the Revolving
Credit  Advances  denominated  in the Primary  Currency,  plus (w) the Letter of
Credit  Advances,  plus (x) the  aggregate  Available  Amount of all  Letters of
Credit  then  outstanding,  plus  (y)  the  Swing  Line  Advances  plus  (z) the
Competitive Bid Advances then  outstanding  exceeds (B) the amount equal to 103%
of the Revolving  Credit Facility,  prepay an aggregate  principal amount of the

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<PAGE>

Revolving Credit Advances comprising part of the same Borrowings,  the Letter of
Credit Advances and the Swing Line Advances in an amount equal to such excess.

          (ii)  Prepayments  of the Revolving  Credit  Facility made pursuant to
     clause (i) above shall be first applied to prepay Letter of Credit Advances
     then  outstanding  until such Advances are paid in full,  second applied to
     prepay Swing Line Advances then outstanding until such Advances are paid in
     full and third applied  ratably to prepay  Revolving  Credit  Advances then
     outstanding  comprising part of the same Borrowings until such Advances are
     paid in full.

          (iii) All prepayments under this subsection (b) shall be made together
     with  accrued  interest  to the date of such  prepayment  on the  principal
     amount prepaid.

          SECTION  2.12.  Increased  Costs.  (a)  If,  due  to  either  (i)  the
introduction  of or  any  change  in or in  the  interpretation  of  any  law or
regulation or (ii) the compliance with any guideline or request from any central
bank or other governmental authority,  including, without limitation, any agency
of the European Union or similar monetary or multinational authority (whether or
not having the force of law),  there  shall be any  increase  in the cost to any
Lender Party of agreeing to make or making, funding or maintaining  Eurocurrency
Rate Advances or LIBO Rate Advances (excluding for purposes of this Section 2.12
any such  increased  costs  resulting from (i) Taxes or Other Taxes (as to which
Section 2.15 shall  govern) and (ii) changes in the basis of taxation of overall
net  income or  overall  gross  income by the  United  States or by the  foreign
jurisdiction  or state under the laws of which such Lender Party is organized or
has its  Applicable  Lending  Office or Lending  Installation  or any  political
subdivision  thereof),  then Paxar shall from time to time,  upon demand by such
Lender Party (with a copy of such demand to the  Administrative  Agent),  pay to
the Administrative Agent for the account of such Lender Party additional amounts
sufficient  to  compensate   such  Lender  Party  for  such  increased  cost.  A
certificate as to the amount of such increased cost,  submitted to Paxar and the
Administrative  Agent by such Lender Party,  shall be conclusive and binding for
all purposes, absent manifest error.

          (b) If any Lender Party  determines  that  compliance  with any law or
regulation  or  any  guideline  or  request  from  any  central  bank  or  other
governmental authority (whether or not having the force of law) affects or would
affect the amount of capital  required  or  expected  to be  maintained  by such
Lender  Party or any  corporation  controlling  such  Lender  Party and that the
amount of such  capital  is  increased  by or based upon the  existence  of such
Lender  Party's  commitment  to lend or to issue or  participate  in  Letters of
Credit  hereunder  and  other  commitments  of  this  type  or the  issuance  or
maintenance  of,  or  participation  in,  the  Letters  of  Credit  (or  similar
contingent obligations),  then, upon demand by such Lender Party (with a copy of
such demand to the Administrative  Agent), Paxar shall pay to the Administrative
Agent for the account of such Lender  Party,  from time to time as  specified by
such Lender Party, additional amounts sufficient to compensate such Lender Party
or such corporation in the light of such circumstances,  to the extent that such
Lender Party  reasonably  determines such increase in capital to be allocable to
the  existence  of  such  Lender  Party's  commitment  to lend  or to  issue  or
participate in Letters of Credit hereunder or to the issuance or maintenance of,
or  participation  in, any Letters of Credit.  A certificate  as to such amounts

                                       38

<PAGE>

submitted  to Paxar and the  Administrative  Agent by such Lender Party shall be
conclusive and binding for all purposes, absent manifest error.

          SECTION 2.13. Illegality.  Notwithstanding any other provision of this
Agreement,  if any  Lender  shall  notify  the  Administrative  Agent  that  the
introduction  of or  any  change  in or in  the  interpretation  of  any  law or
regulation  makes  it  unlawful,  or any  central  bank  or  other  governmental
authority  asserts  that it is  unlawful,  for any  Lender  or its  Eurocurrency
Lending Office or Lending  Installation to perform its obligations  hereunder to
make  Eurocurrency  Rate  Advances or LIBO Rate  Advances or to fund or maintain
Eurocurrency   Rate  Advances  or  LIBO  Rate  Advances   hereunder,   (i)  each
Eurocurrency  Rate  Advance  or LIBO  Rate  Advance,  as the case  may be,  will
automatically,  upon such demand,  be exchanged for an  Equivalent  amount of US
Dollars  and  Converted  into a Prime  Rate  Advance  or an  Advance  that bears
interest  at the rate set forth in Section  2.08(a)(i),  as the case may be, and
(ii) the  obligation of the Lenders to make  Eurocurrency  Rate Advances or LIBO
Rate Advances or to Convert Prime Rate Advances into  Eurocurrency Rate Advances
shall be  suspended  until the  Administrative  Agent shall notify Paxar and the
Lenders that the circumstances causing such suspension no longer exist.

          SECTION 2.14. Payments and Computations.  (a) Each Borrower shall make
each payment  required to be made by it hereunder  and under the Notes not later
than  12:00  Noon  (New  York  City  time) on the day when due in like  funds as
advanced to the Administrative  Agent at the  Administrative  Agent's Account in
same day funds. The  Administrative  Agent will promptly  thereafter cause to be
distributed  like funds  relating  to the  payment of  principal  or interest or
facility or Letter of Credit fees ratably (other than amounts  payable  pursuant
to Section 2.03, 2.12, 2.15 or 9.04(c)) to the Lender Parties for the account of
their  respective  Applicable  Lending  Offices,  and like funds relating to the
payment of any other amount payable to any Lender Party to such Lender Party for
the  account of its  Applicable  Lending  Office,  in each case to be applied in
accordance  with  the  terms  of  this  Agreement.  Upon  its  acceptance  of an
Assignment and Acceptance and recording of the information  contained therein in
the Register  pursuant to Section  9.07(g),  from and after the  effective  date
specified in such Assignment and Acceptance, the Administrative Agent shall make
all payments  hereunder and under the Notes in respect of the interest  assigned
thereby  to the  Lender  Party  assignee  thereunder,  and the  parties  to such
Assignment  and  Acceptance  shall  make  all  appropriate  adjustments  in such
payments for periods prior to such effective date directly between themselves.

          (b) Each Borrower  hereby  authorizes each Lender Party, if and to the
extent payment owed to such Lender Party is not made when due hereunder or under
any Note held by such Lender  Party,  to charge from time to time against any or
all of such Borrower's accounts with such Lender Party any amount so due.

          (c) All computations of interest based on the Prime Rate (unless based
upon the Federal  Funds Rate) shall be made by the  Administrative  Agent on the
basis of a year of 365 or 366 days, as the case may be, and all  computations of
interest  based  on the  Eurocurrency  Rate or the  Federal  Funds  Rate  and of
facility and Letter of Credit fees shall be made by the Administrative  Agent on
the basis of a year of 360  days,  in each  case for the  actual  number of days
(including the first day but excluding the last day) occurring in the period for

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<PAGE>

which such  interest or facility  fees are payable.  Each  determination  by the
Administrative  Agent of an interest  rate  hereunder  shall be  conclusive  and
binding for all purposes, absent manifest error.

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

          (e) Unless the Administrative  Agent shall have received notice from a
Borrower  prior to the date on which  any  payment  is due to any  Lender  Party
hereunder   that  such  Borrower  will  not  make  such  payment  in  full,  the
Administrative Agent may assume that such Borrower has made such payment in full
to the Administrative  Agent on such date and the  Administrative  Agent may, in
reliance upon such  assumption,  cause to be distributed to each Lender Party on
such due date an amount equal to the amount then due such Lender  Party.  If and
to the  extent a  Borrower  shall not have so made such  payment  in full to the
Administrative  Agent, each Lender Party shall repay to the Administrative Agent
forthwith on demand such amount  distributed  to such Lender Party together with
interest thereon,  for each day from the date such amount is distributed to such
Lender  Party  until  the date  such  Lender  Party  repays  such  amount to the
Administrative Agent, at the Federal Funds Rate.

          SECTION 2.15. Taxes. (a) Any and all payments by a Borrower  hereunder
or under the Notes shall be made,  in  accordance  with Section  2.14,  free and
clear of and without deduction for any and all present or future taxes,  levies,
imposts, deductions,  charges or withholdings,  and all liabilities with respect
thereto,  excluding,  in the case of each  Lender  Party and the  Administrative
Agent,  taxes imposed on its overall net income,  and franchise taxes imposed on
it in lieu of overall net income taxes,  by the  jurisdiction  under the laws of
which  such  Lender  Party or the  Administrative  Agent (as the case may be) is
organized or any political  subdivision  thereof and, in the case of each Lender
Party,  taxes imposed on its overall net income,  and franchise taxes imposed on
it in lieu of overall  net income  taxes,  by the  jurisdiction  of such  Lender
Party's  Applicable  Lending  Office or Lending  Installation  or any  political
subdivision thereof (all such non-excluded taxes, levies,  imposts,  deductions,
charges,  withholdings and liabilities in respect of payments hereunder or under
the Notes being  hereinafter  referred to as  "Taxes").  If a Borrower  shall be
required  by law to  deduct  any Taxes  from or in  respect  of any sum  payable
hereunder  or under any Note to any  Lender  Party or the  Administrative  Agent
including,  but without  limitation,  as a result of any change in law or in its
official interpretation or administration by the competent tax authorities,  (i)
the sum payable  shall be increased as may be necessary so that after making all
required deductions  (including deductions applicable to additional sums payable
under this Section 2.15) such Lender Party or the  Administrative  Agent (as the
case may be) receives an amount  equal to the sum it would have  received had no
such  deductions  been made,  (ii) such Borrower shall make such  deductions and
(iii) such Borrower shall pay the full amount deducted to the relevant  taxation
authority or other authority in accordance with applicable law.

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<PAGE>

          (b) In addition,  each Borrower  shall pay any present or future stamp
or documentary  taxes or any other excise or property taxes,  charges or similar
levies that arise from any payment made hereunder or under the Notes or from the
execution,  delivery or  registration  of,  performing  under, or otherwise with
respect  to,  this  Agreement  or the Notes  (hereinafter  referred to as "Other
Taxes").

          (c)  Each  Borrower   shall   indemnify  each  Lender  Party  and  the
Administrative  Agent for and hold it harmless  against the full amount of Taxes
and Other Taxes (including, without limitation, taxes of any kind imposed by any
jurisdiction  on amounts  payable under this Section 2.15) imposed on or paid by
such  Lender  Party  or the  Administrative  Agent  (as the case may be) and any
liability (including penalties, interest and expenses) arising therefrom or with
respect thereto. This indemnification shall be made within 30 days from the date
such Lender Party or the Administrative Agent (as the case may be) makes written
demand therefor.

          (d)  Within  30 days  after  the date of any  payment  of  Taxes,  the
relevant  Borrower  shall furnish to the  Administrative  Agent,  at its address
referred to in Section  9.02,  the  original  or a  certified  copy of a receipt
evidencing such payment. In the case of any payment hereunder or under the Notes
by or on behalf of a Borrower  through an account or branch  outside  the United
States or by or on behalf of a Borrower  by a payor that is not a United  States
person,  if such  Borrower  determines  that no Taxes  are  payable  in  respect
thereof,  such Borrower shall furnish,  or shall cause such payor to furnish, to
the Administrative  Agent, at such address,  an opinion of counsel acceptable to
the  Administrative  Agent  stating that such payment is exempt from Taxes.  For
purposes of this  subsection (d) and subsection  (e), the terms "United  States"
and "United States person" shall have the meanings  specified in Section 7701 of
the Internal Revenue Code.

          (e) Each  Lender  Party  organized  under  the laws of a  jurisdiction
outside the United States, on or prior to the date of its execution and delivery
of this  Agreement  in the case of each  Initial  Lender or the Initial  Issuing
Bank,  as the case  may be,  and on the date of the  Assignment  and  Acceptance
pursuant  to which it becomes a Lender  Party in the case of each  other  Lender
Party,  and from time to time  thereafter  as requested in writing by a Borrower
(but only so long as such Lender Party remains  lawfully  able to do so),  shall
provide  each of the  Administrative  Agent and the  Borrower  with two original
Internal  Revenue  Service  Forms  W-8BEN  or  W-8ECI,  as  appropriate,  or any
successor or other form prescribed by the Internal Revenue  Service,  certifying
that such Lender  Party is exempt  from or entitled to a reduced  rate of United
States  withholding tax on payments  pursuant to this Agreement or the Notes. If
the form  provided by a Lender Party at the time such Lender Party first becomes
a party to this Agreement  indicates a United States  interest  withholding  tax
rate in  excess  of zero,  withholding  tax at such  rate  shall  be  considered
excluded from Taxes unless and until such Lender Party provides the  appropriate
forms certifying that a lesser rate applies,  whereupon  withholding tax at such
lesser rate only shall be considered excluded from Taxes for periods governed by
such  form;  provided,  however,  that,  if at the  date of the  Assignment  and
Acceptance  pursuant to which a Lender  Party  assignee  becomes a party to this
Agreement,  the Lender Party assignor was entitled to payments under  subsection
(a) in respect of United States withholding tax with respect to interest paid at
such date,  then,  to such extent,  the term Taxes shall include (in addition to
withholding  taxes that may be imposed in the future or other amounts  otherwise
includable in Taxes)  United States  withholding  tax, if any,  applicable  with

                                       41

<PAGE>

respect to the Lender  Party  assignee  on such  date.  If any form or  document
referred to in this subsection (e) requires the disclosure of information, other
than information  necessary to compute the tax payable and information  required
on the date hereof by Internal  Revenue Service Form W-8BEN or W-8ECI,  that the
applicable  Lender Party reasonably  considers to be  confidential,  such Lender
Party,  if legally  required to do so, shall give notice thereof to the Borrower
and shall not be obligated to include in such form or document such confidential
information.

          (f) For any period with respect to which a Lender Party required to do
so has failed to provide a  Borrower  with the  appropriate  form  described  in
Section  2.15(e) (other than if such failure is due to a change in law occurring
subsequent to the date on which a form  originally  was required to be provided,
or if such form  otherwise is not required  under  subsection  (e) above),  such
Lender Party shall not be entitled to  indemnification  under Section 2.15(a) or
(c) with  respect  to Taxes  imposed  by the  United  States  by  reason of such
failure;  provided,  however, that should a Lender Party become subject to Taxes
because of its failure to deliver a form required hereunder,  the Borrower shall
take such steps as such  Lender  Party  shall  reasonably  request to assist the
Lender Party to recover such Taxes.

          SECTION  2.16.  Sharing of  Payments,  Etc. If any Lender  Party shall
obtain any payment (whether voluntary,  involuntary, through the exercise of any
right of set-off,  or otherwise) on account of obligations  owing to such Lender
Party  hereunder  and under the Notes in excess of its ratable share of payments
on account of the  Obligations  owing to all Lender Parties  hereunder and under
the Notes at such time  obtained  by all the Lender  Parties at such time,  such
Lender  Party  shall  forthwith  purchase  from the other  Lender  Parties  such
participations  in the Obligations  owing to them as shall be necessary to cause
such  purchasing  Lender Party to share the excess payment  ratably with each of
them;  provided,  however,  that if all or any portion of such excess payment is
thereafter  recovered from such purchasing Lender Party, such purchase from each
Lender  Party  shall be  rescinded  and such  Lender  Party  shall  repay to the
purchasing  Lender  Party the  purchase  price to the  extent  of such  recovery
together with an amount equal to such Lender Party's ratable share (according to
the  proportion of (i) the amount of such Lender Party's  required  repayment to
(ii) the total  amount so recovered  from the  purchasing  Lender  Party) of any
interest  or other  amount  paid or payable by the  purchasing  Lender  Party in
respect of the total amount so recovered.  Each Borrower  agrees that any Lender
Party so purchasing a  participation  from another Lender Party pursuant to this
Section  2.16 may, to the fullest  extent  permitted  by law,  exercise  all its
rights  of  payment  (including  the  right of  set-off)  with  respect  to such
participation  as fully as if such Lender Party were the direct creditor of such
Borrower in the amount of such participation.

          SECTION 2.17.  Use of Proceeds.  The proceeds of the Advances shall be
available  (and  Paxar  agrees  that it and any  other  Borrower  shall use such
proceeds)  solely to refinance  the Existing  Credit  Agreement  and for general
corporate purposes of Paxar and its Subsidiaries.

          SECTION 2.18. Increase in the Aggregate Commitments. (a) Paxar may, at
any time, by notice to the Administrative  Agent no more frequently than once in
any 12-month period, request that the aggregate amount of the Revolving Credit A
Commitments be increased by an amount of $25,000,000 or an integral  multiple of
$5,000,000 in excess  thereof (each a "Commitment  Increase") to be effective as
of a date that is at least 180 days prior to the Termination Date (the "Increase

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<PAGE>

Date") as specified in the related notice to the Administrative Agent; provided,
however,  that (i) in no event  shall the  aggregate  amount of the  Commitments
hereunder at any time exceed  $250,000,000,  (ii) no Event of Default,  or event
that with the giving of notice or passage  of time or both would  constitute  an
Event of Default,  shall have  occurred and be continuing as of the date of such
request  or as of the  applicable  Increase  Date,  or  shall  occur as a result
thereof and (iii) that any request for a Commitment  Increase  which includes an
increase to the amounts available  hereunder for Borrowings or Letters of Credit
for any Non-US Borrower shall require the consent of the Required Lenders.

          (b) The  Administrative  Agent shall promptly  notify the Lenders of a
request by Paxar for a Commitment  Increase,  which notice shall include (i) the
proposed  amount  of such  requested  Commitment  Increase,  (ii)  the  proposed
Increase Date and (iii) the date by which Lenders  wishing to participate in the
Commitment Increase must commit to an increase in the amount of their respective
Revolving  Credit A Commitments  (the  "Commitment  Date").  Each Lender that is
willing  to  participate  in  such  requested   Commitment   Increase  (each  an
"Increasing Lender") shall give written notice to the Administrative Agent on or
prior to the  Commitment  Date of the amount by which it is willing to  increase
its Revolving  Credit A  Commitment.  If the Lenders  notify the  Administrative
Agent that they are willing to increase the amount of their respective Revolving
Credit A  Commitments  by an  aggregate  amount  that  exceeds the amount of the
requested  Commitment  Increase,  the  requested  Commitment  Increase  shall be
allocated ratably among the Lenders willing to participate  therein according to
the amounts that the Lenders have  indicated  they are willing to increase their
Revolving Credit A Commitments.

          (c) Promptly following each Commitment Date, the Administrative  Agent
shall notify Paxar as to the amount, if any, by which the Lenders are willing to
participate in the requested  Commitment  Increase.  If the aggregate  amount by
which the  Lenders  are  willing  to  participate  in any  requested  Commitment
Increase  on any such  Commitment  Date is less  than the  requested  Commitment
Increase,  then Paxar may extend  offers to one or more  Eligible  Assignees  to
participate  in any portion of the  requested  Commitment  Increase that has not
been committed to by the Lenders as of the applicable Commitment Date; provided,
however,  that the  Commitment  of each such  Eligible  Assignee  shall be in an
amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof.

          (d) On each  Increase  Date,  each  Eligible  Assignee that accepts an
offer to  participate  in a requested  Commitment  Increase in  accordance  with
Section 2.18(c) (each such Eligible Assignee an "Assuming  Lender") shall become
a Lender party to this  Agreement  as of such  Increase  Date and the  Revolving
Credit A Commitment  of each  Increasing  Lender for such  requested  Commitment
Increase  shall be so  increased  by such amount (or by the amount  allocated to
such  Lender  pursuant  to the last  sentence  of  Section  2.18(b))  as of such
Increase  Date;  provided,  however,  that the  Administrative  Agent shall have
received on or before such Increase Date the following, each dated such date:

          (i) (A) certified  copies of  resolutions of the Board of Directors of
     the  respective   Borrower  approving  the  Commitment   Increase  and  the
     corresponding modifications to this Agreement and (B) an opinion of counsel
     for such Borrower satisfactory to the Administrative Agent;

                                       43

<PAGE>

          (ii) an assumption  agreement  from each Assuming  Lender,  if any, in
     form  and  substance  satisfactory  to the  Administrative  Agent  (each an
     "Assumption  Agreement"),  duly executed by such Eligible  Assignee and the
     Administrative Agent; and

          (iii)  confirmation from each Increasing Lender of the increase in the
     amount of its Revolving  Credit A Commitment in a writing  satisfactory  to
     the Administrative Agent.

          (e) On each Increase Date, upon fulfilment of the conditions set forth
in this  Section  2.18,  the  Administrative  Agent  shall  notify  the  Lenders
(including,  without  limitation,  each Assuming Lender) and Paxar, on or before
1:00  P.M.  (New  York City  time),  by  telecopier,  of the  occurrence  of the
Commitment Increase to be effected on such Increase Date and shall record in the
Register the relevant  information  with respect to each  Increasing  Lender and
each Assuming Lender on such date.

          SECTION 2.19. Lending Installations. Each Lender may book its Advances
at any Lending  Installation  selected by such Lender and may change its Lending
Installation  from time to time. All terms of this Agreement  shall apply to any
such Lending  Installation and the Advances and any Notes issued hereunder shall
be deemed held by each Lender for the benefit of any such Lending  Installation.
Each Lender may, by written  notice to the Agent and the Borrower in  accordance
with Section 9.02,  designate  replacement or additional  Lending  Installations
through  which  Advances  will be made by it and for whose  account  payments in
respect of Advances are to be made.

                                  ARTICLE III

                     CONDITIONS TO EFFECTIVENESS AND LENDING

          SECTION 3.01.  Conditions  Precedent to Effectiveness.  This Agreement
shall become effective on and as of the first date (the "Effective  Date") after
it shall have been executed by the Borrowers,  the  Administrative  Agent,  each
Initial  Lender,  each PI Lender and the Initial  Issuing  Bank and on which the
following conditions precedent have been satisfied:

          (a) There  shall  have  occurred  no  Material  Adverse  Change  since
     December 31, 2004.

          (b) There shall exist no action,  suit,  investigation,  litigation or
     proceeding affecting Paxar or any of its Subsidiaries pending or threatened
     before  any  court,  governmental  agency or  arbitrator  that (i) could be
     reasonably  likely to have a Material  Adverse  Effect or (ii)  purports to
     adversely  affect the Facilities or the  consummation  of the  transactions
     contemplated hereby.

          (c) All governmental and third party consents and approvals  necessary
     in connection with the Facilities and the other  transactions  contemplated
     hereby shall have been obtained  (without the  imposition of any conditions
     that are not acceptable to the Lender  Parties) and shall remain in effect,
     and no law or regulation shall be applicable in the reasonable  judgment of

                                       44

<PAGE>

     the Lender Parties that restrains,  prevents or imposes  materially adverse
     conditions upon the transactions contemplated hereby.

          (d) Paxar shall have notified each Lender Party and the Administrative
     Agent in writing as to the proposed Effective Date.

          (e)  Paxar  shall  have  paid all  accrued  fees and  expenses  of the
     Administrative Agent and the Lender Parties (including the accrued fees and
     expenses of counsel to the Administrative Agent).

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

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

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

          (g) The  Administrative  Agent  shall have  received  on or before the
     Effective  Date the  following,  each dated such day, in form and substance
     satisfactory to the Administrative  Agent and in sufficient copies for each
     Lender Party:

               (i) A  copy  of  the  charter,  by-laws,  and  other  constituent
          documents of each Loan Party party to a Loan Document delivered on the
          Effective Date.

               (ii) Certified resolutions of the Board of Directors of Paxar and
          each such other Loan Party and, to the extent  appropriate,  certified
          resolutions of the  shareholders  of any such Loan Party,  in form and
          substance reasonably satisfactory to the Administrative Agent.

               (iii) A  certificate  of the  Secretary,  Assistant  Secretary or
          Managing  Director of Paxar and each such other Loan Party  certifying
          the names and true  signatures of the officers of Paxar and such other
          Loan Party  authorized  to sign this  Agreement  and the Notes and the
          other  documents to be delivered  hereunder  and  certifying  that the
          charter, by-laws, constituent documents and resolutions referred to in
          subclauses  3.01(g )(i) and (ii) are in full force and effect and have
          not been amended or modified.

               (iv) A  favorable  opinion  of Robert  S.  Stone,  Esq.,  General
          Counsel of Paxar, substantially in the form of Exhibit E hereto and as
          to such other matters as any Lender Party  through the  Administrative
          Agent may reasonably request.

               (v) Favorable  opinions of counsel for each Non-US  Borrower and,
          if  applicable,  each Foreign  Guarantor,  each in form and  substance
          satisfactory to the Administrative Agent.

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<PAGE>

               (vi)  Evidence   satisfactory  to  the  Administrative  Agent  of
          termination  of the  Existing  Credit  Agreement  and that all amounts
          payable  thereunder  have  been  paid  in  full  and  all  commitments
          thereunder have been  terminated,  except that the Existing Letters of
          Credit shall be deemed Letters of Credit hereunder.

               (vii) A  Guaranty  in  substantially  the form of the  Subsidiary
          Guaranty duly executed by each Subsidiary Guarantor.

               (viii) If applicable, a Guaranty in substantially the form of the
          Foreign Subsidiary Guaranty duly executed by each Foreign Guarantor.

          SECTION 3.02.  Conditions  Precedent to Each  Borrowing  (other than a
Competitive  Bid Borrowing) and Issuance.  The obligation of each Lender to make
an Advance  (other than a Competitive  Bid Advance,  a Letter of Credit  Advance
made by the Issuing  Bank or a Lender  pursuant  to Section  2.04(c) and a Swing
Line  Advance made by a Lender  pursuant to Section  2.02(b)) on the occasion of
each Borrowing (other than a Competitive Bid Borrowing but including the Initial
Extension of Credit),  and the  obligation of the Issuing Bank to issue a Letter
of Credit  (including the initial  issuance) or renew a Letter of Credit and the
right of a Borrower to request a Swing Line Borrowing or the issuance or renewal
of a Letter of Credit,  shall be subject to the  conditions  precedent  that the
Effective Date shall have occurred and on the date of such Borrowing or issuance
or renewal (a) the following statements shall be true (and each of the giving of
the applicable  Notice of Borrowing,  Notice of Swing Line Borrowing,  Notice of
Issuance or Notice of Renewal and the acceptance by the relevant Borrower of the
proceeds  of such  Borrowing  or of such Letter of Credit or the renewal of such
Letter of Credit  shall  constitute a  representation  and warranty by Paxar and
such  Borrower  that on the date of such  Borrowing  or issuance or renewal such
statements are true):

          (i) the representations and warranties contained in each Loan Document
     are correct on and as of such date,  before and after giving effect to such
     Borrowing  or issuance or renewal and to the  application  of the  proceeds
     therefrom,  as  though  made on and as of such  date  other  than  any such
     representations  or warranties  that,  by their terms,  refer to a specific
     date other than the date of such Borrowing or issuance or renewal, in which
     case as of such specific date, and

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

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

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

                                       46

<PAGE>

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

          (a) the representations and warranties contained in each Loan Document
     are correct on and as of the date of such Competitive Bid Borrowing, before
     and  after  giving  effect to such  Competitive  Bid  Borrowing  and to the
     application  of the  proceeds  therefrom,  as though made on and as of such
     date other  than any such  representations  or  warranties  that,  by their
     terms, refer to a specific date other than the date of such Competitive Bid
     Borrowing, in which case as of such specific date,

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

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

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

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                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

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

          (a)  Each Loan Party is a corporation duly organized, validly existing
     and, where relevant, in good standing under the laws of the jurisdiction of
     its incorporation.

          (b)  The  execution,  delivery and  performance  by each Loan Party of
     this Agreement, the Notes and each other Loan Document to which it is or is
     to be a party, and the consummation of the transactions contemplated hereby
     and thereby,  are within such Loan Party's corporate powers, have been duly
     authorized by all necessary  corporate  action,  and do not (i)  contravene
     such Loan  Party's  charter or by-laws,  (ii)  violate any  applicable  law
     (including, without limitation, the Securities Exchange Act of 1934 and the
     Racketeer  Influenced  and Corrupt  Organizations  Chapter of the Organized
     Crime  Control  Act  of  1970),  rule,   regulation   (including,   without
     limitation,  Regulation X of the Board of Governors of the Federal  Reserve
     System), order, writ, judgment, injunction, decree, determination or award,
     (iii)  conflict  with or result in the breach of, or  constitute  a default
     under, any contract,  loan agreement,  indenture,  mortgage, deed of trust,
     lease or other  instrument  binding on or affecting any Loan Party,  any of
     its  Subsidiaries  or any of their  properties or (iv) result in or require
     the creation or  imposition  of any Lien upon or with respect to any of the
     properties of any Loan Party or any of its Subsidiaries.

          (c)  No authorization or approval or other action by, and no notice to
     or filing with, any governmental  authority or regulatory body or any other
     third party is required for (i) the due execution, delivery and performance
     by any Loan Party of this  Agreement,  the Notes or any other Loan Document
     to  which  it is or  is to be a  party  or  for  the  consummation  of  the
     transactions  contemplated  hereby and thereby or (ii) the  exercise by the
     Administrative  Agent or any  Lender  Party of its  rights  under  the Loan
     Documents, except for those authorizations, approvals, actions, notices and
     filings  listed on  Schedule  4.01(c)  hereto,  all of which have been duly
     obtained, taken, given or made and are in full force and effect.

          (d)  This  Agreement,  each of the Notes and each other Loan  Document
     has been duly  executed  and  delivered  by each Loan Party  thereto.  This
     Agreement,  each of the Notes and each  other Loan  Document  is the legal,
     valid and binding obligation of each Loan Party party thereto,  enforceable
     against such Loan Party in accordance with its respective terms.

          (e)  The  Consolidated  balance sheet of Paxar and its Subsidiaries as
     of December 31, 2004, and the related Consolidated statements of income and
     cash flows of Paxar and its  Subsidiaries  for the fiscal  year then ended,
     accompanied by an opinion of Ernst & Young, independent public accountants,
     and the  Consolidated  balance  sheet of Paxar and its  Subsidiaries  as of
     September 30, 2005, and the related  Consolidated  statements of income and
     cash flows of Paxar and its  Subsidiaries  for the nine  months then ended,

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<PAGE>

     duly certified by the chief financial officer or treasurer of Paxar, copies
     of which have been furnished to each Lender Party, fairly present, subject,
     in the  case of said  balance  sheet as of  September  30,  2005,  and said
     statements  of income and cash flows for the nine  months  then  ended,  to
     year-end audit adjustments and the disclosures required to be in accordance
     with  GAAP,  the  Consolidated   financial   condition  of  Paxar  and  its
     Subsidiaries  as  at  such  dates  and  the  Consolidated  results  of  the
     operations  of Paxar and its  Subsidiaries  for the  periods  ended on such
     dates,  all in accordance  with generally  accepted  accounting  principles
     consistently  applied.  Since December 31, 2004, there has been no Material
     Adverse Change.

          (f)  Except with respect to the matters disclosed on Schedule 4.01(f),
     there is no pending or threatened action, suit,  investigation,  litigation
     or proceeding,  including,  without limitation,  any Environmental  Action,
     affecting Paxar or any of its Subsidiaries  before any court,  governmental
     agency or arbitrator that (i) could be reasonably likely to have a Material
     Adverse  Effect  or (ii)  purports  to affect  the  legality,  validity  or
     enforceability  of this  Agreement or any Note or the  consummation  of the
     transactions contemplated hereby.

          (g)  No Borrower is engaged in the  business of  extending  credit for
     the purpose of purchasing  or carrying  margin stock (within the meaning of
     Regulation  U issued  by the  Board of  Governors  of the  Federal  Reserve
     System),  and no proceeds of any Advance  will be used to purchase or carry
     any  margin  stock  or to  extend  credit  to  others  for the  purpose  of
     purchasing or carrying any margin stock.

          (h)  Neither the  Projections  nor any other  information,  exhibit or
     report  furnished  by any  Loan  Party to the  Administrative  Agent or any
     Lender Party in connection  with the  negotiation  of the Loan Documents or
     pursuant to the terms of the Loan Documents  contained any untrue statement
     of a material  fact or omitted to state a material  fact  necessary to make
     the statements made therein not misleading.

          (i)  Except with respect to the matters disclosed on Schedule 4.01(i),
     the operations and properties of Paxar and each of its Subsidiaries  comply
     in all  material  respects  with  all  applicable  Environmental  Laws  and
     Environmental Permits, all past non-compliance with such Environmental Laws
     and Environmental  Permits has been resolved without ongoing obligations or
     costs,  and no circumstances  exist that would be reasonably  likely to (i)
     form the basis of an Environmental  Action against any Loan Party or any of
     its  Subsidiaries  or any of their  properties  that  could have a Material
     Adverse  Effect  or (ii)  cause  any such  property  to be  subject  to any
     restrictions  on ownership,  occupancy,  use or  transferability  under any
     Environmental Law.

          (j)  Neither  any  Loan  Party  nor  any  of  its  Subsidiaries  is an
     "investment  company",  or an  "affiliated  person"  of, or  "promoter"  or
     "principal  underwriter"  for, an "investment  company",  as such terms are
     defined in the  Investment  Company Act of 1940,  as  amended.  Neither the
     making of any Advances,  nor the issuance of any Letters of Credit, nor the
     application of the proceeds or repayment  thereof by the Borrower,  nor the
     consummation of the other transactions  contemplated  hereby,  will violate

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<PAGE>

     any  provision  of  such  Act or  any  rule,  regulation  or  order  of the
     Securities and Exchange Commission thereunder.

          (k)  Each  Loan  Party  is,   individually   and  together   with  its
     Subsidiaries, Solvent.

          (l)  PBV is in due  compliance  with the Dutch  Banking Act, the Dutch
     Banking Act Exemption  Regulation,  the Dutch Policy Rule and the rules and
     regulations promulgated thereunder.

                                   ARTICLE V

                               COVENANTS OF PAXAR

          SECTION  5.01.  Affirmative  Covenants.  So long as any Advance  shall
remain  unpaid,  any Letter of Credit shall be  outstanding  or any Lender Party
shall have any Commitment hereunder, Paxar will:

          (a)  Compliance  with  Laws,  Etc.  Comply,  and  cause  each  of  its
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules,   regulations  and  orders,  such  compliance  to  include,  without
     limitation,  compliance  with ERISA and  Environmental  Laws as provided in
     Section 5.01(l).

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

          (c)  Maintenance  of  Insurance.  Maintain,  and  cause  each  of  its
     Subsidiaries  to  maintain,   insurance  with   responsible  and  reputable
     insurance companies or associations in such amounts and covering such risks
     as is usually carried by companies engaged in similar businesses and owning
     similar  properties  in the  same  general  areas  in  which  Paxar or such
     Subsidiary operates.

          (d)  Preservation of Corporate Existence,  Etc. Preserve and maintain,
     and cause each of its Subsidiaries to preserve and maintain,  its corporate
     existence,  rights  (charter  and  statutory)  and  franchises;   provided,
     however,  that  Paxar and its  Subsidiaries  may  consummate  any merger or
     consolidation  permitted under Section  5.02(b),  and provided further that
     neither Paxar nor any of its Subsidiaries shall be required to preserve any
     right or franchise  if the Board of  Directors of Paxar or such  Subsidiary
     shall determine that the preservation thereof is no longer desirable in the

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<PAGE>

     conduct of the  business of Paxar or such  Subsidiary,  as the case may be,
     and that the loss thereof is not disadvantageous in any material respect to
     Paxar, such Subsidiary or the Lender Parties.

          (e)  Visitation  Rights. At any reasonable time and from time to time,
     permit  (i) the  Administrative  Agent  or any  agents  or  representatives
     thereof to examine  and make copies of and  abstracts  from the records and
     books of account  of,  and visit the  properties  of,  Paxar and any of its
     Subsidiaries,  and  (ii)  the  Administrative  Agent  or any of the  Lender
     Parties or any agents or representatives  thereof to discuss, in connection
     with the Loan  Documents,  the affairs,  finances and accounts of Paxar and
     any of  its  Subsidiaries  with  any  of  their  officers  and  with  their
     independent certified public accountants.

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

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

          (h)  Compliance  with  Terms  of  Leaseholds.  Make all  payments  and
     otherwise perform all obligations in respect of all leases of real property
     to which Paxar or any of its  Subsidiaries is a party,  keep such leases in
     full force and effect and not allow such  leases to lapse or be  terminated
     or any rights to renew such leases to be forfeited or cancelled, notify the
     Administrative  Agent of any  default  by any party  with  respect  to such
     leases and cooperate with the Administrative  Agent in all respects to cure
     any such default,  and cause each of its  Subsidiaries to do so except,  in
     any  case,  where  the  failure  to do so,  either  individually  or in the
     aggregate,  would  not be  reasonably  likely  to have a  Material  Adverse
     Effect.

          (i)  Transactions  with  Affiliates.  Conduct,  and cause  each of its
     Subsidiaries to conduct,  all transactions  otherwise  permitted under this
     Agreement  with  any of  their  Affiliates  on  terms  that  are  fair  and
     reasonable and no less favorable to Paxar or such  Subsidiary than it would
     obtain  in a  comparable  arm's-length  transaction  with a  Person  not an
     Affiliate.

          (j)  Compliance with Environmental Laws. Comply, and cause each of its
     Subsidiaries  and all lessees and other Persons  operating or occupying its
     properties  to  comply,  in all  material  respects,  with  all  applicable
     Environmental  Laws and Environmental  Permits;  obtain and renew and cause
     each of its  Subsidiaries  to obtain  and renew all  Environmental  Permits
     necessary for its operations and properties; and conduct, and cause each of
     its  Subsidiaries  to  conduct,  any  investigation,  study,  sampling  and
     testing,  and  undertake  any  cleanup,  removal,  remedial or other action
     necessary to remove and clean up all  Hazardous  Materials  from any of its
     properties,  in accordance with the requirements of all Environmental Laws;

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<PAGE>

     provided,  however, that neither Paxar nor any of its Subsidiaries shall be
     required to undertake any such cleanup,  removal,  remedial or other action
     to the extent that its obligation to do so is being contested in good faith
     and by proper  proceedings  and appropriate  reserves are being  maintained
     with respect to such circumstances.

          (k)  Preparation  of  Environmental  Reports.  If an Event of  Default
     shall have  occurred  and be  continuing,  at the  request of the  Required
     Lenders,  provide to the Lender  Parties within 60 days after such request,
     at the expense of Paxar, an  environmental  site assessment  report for the
     properties  described  in  such  request,   prepared  by  an  environmental
     consulting firm acceptable to the Required Lenders, indicating the presence
     or absence of Hazardous Materials and the estimated cost of any compliance,
     removal or remedial  action in connection  with any Hazardous  Materials on
     such properties;  without limiting the generality of the foregoing,  if the
     Required Lenders determine at any time that a material risk exists that any
     such  report will not be provided  within the time  referred to above,  the
     Required  Lenders may retain an  environmental  consulting  firm to prepare
     such report at the expense of Paxar,  and Paxar hereby grants and agrees to
     cause any  Subsidiary  that owns any property  described in such request to
     grant at the time of such request, to the Administrative  Agent, the Lender
     Parties, such firm and any agents or representatives thereof an irrevocable
     non-exclusive  license,  subject  to the rights of  tenants,  to enter onto
     their respective properties to undertake such an assessment.

          (l)  Reporting Requirements. Furnish to the Lender Parties:

               (i)  as soon as  available  and in any event within 50 days after
          the end of each of the first  three  quarters  of each  fiscal year of
          Paxar,  Consolidated and consolidating balance sheets of Paxar and its
          Subsidiaries  as of the  end of  such  quarter  and  Consolidated  and
          consolidating  statements  of income  and cash  flows of Paxar and its
          Subsidiaries  for the  period  commencing  at the end of the  previous
          fiscal year and ending with the end of such  quarter,  duly  certified
          (subject to year-end audit  adjustments and  disclosures  required for
          conformity with GAAP) by the chief  financial  officer or treasurer of
          Paxar as having been prepared in accordance  with  generally  accepted
          accounting  principles and certificates of the chief financial officer
          of Paxar as to compliance with the terms of this Agreement and setting
          forth in reasonable  detail the calculations  necessary to demonstrate
          compliance with Section 5.03, provided that in the event of any change
          in GAAP used in the  preparation of such financial  statements,  Paxar
          shall also provide,  if necessary for the  determination of compliance
          with  Section  5.03,  a statement of  reconciliation  conforming  such
          financial statements to GAAP;

               (ii) as soon as available  and in any event within 105 days after
          the end of each  fiscal  year of  Paxar,  a copy of the  annual  audit
          report  for  such  year for  Paxar  and its  Subsidiaries,  containing
          Consolidated  and  consolidating  balance  sheets  of  Paxar  and  its
          Subsidiaries  as of the end of such fiscal year and  Consolidated  and
          consolidating  statements  of income  and cash  flows of Paxar and its
          Subsidiaries for such fiscal year,  together with a certificate of the

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<PAGE>

          chief  financial  officer or treasurer of Paxar as to compliance  with
          the terms of this Agreement and setting forth in reasonable detail the
          calculations necessary to demonstrate compliance with Section 5.03 and
          in each case  accompanied  by an opinion  acceptable  to the  Required
          Lenders  by  Ernst & Young  or other  independent  public  accountants
          acceptable to the Required Lenders,  provided that in the event of any
          change in GAAP used in the  preparation of such financial  statements,
          Paxar  shall also  provide,  if  necessary  for the  determination  of
          compliance with Section 5.03, a statement of reconciliation conforming
          such financial statements to GAAP;

               (iii) as soon as  available  and in any  event no later  than 105
          days after the end of each fiscal year of Paxar, forecasts prepared by
          management of Paxar, in form satisfactory to the Administrative Agent,
          of balance  sheets,  income  statements and cash flow statements on an
          annual  basis  for each of the  three  immediately  succeeding  fiscal
          years;

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

               (v) promptly after the sending or filing  thereof,  copies of all
          reports that Paxar sends to any of its security holders, and copies of
          all reports and  registration  statements that Paxar or any Subsidiary
          files with the  Securities  and  Exchange  Commission  or any national
          securities exchange;

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

               (vii) promptly after the assertion or occurrence thereof,  notice
          of any  Environmental  Action against or of any noncompliance by Paxar
          or any of its Subsidiaries with any Environmental Law or Environmental
          Permit that could  reasonably  be expected to have a Material  Adverse
          Effect; and

               (viii)  such  other  information  respecting  Paxar or any of its
          Subsidiaries as any Lender Party through the Administrative  Agent may
          from time to time reasonably request.

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<PAGE>

          (m) New Subsidiary Guarantor and Foreign Guarantor Documents.  Furnish
     to the Lender  Parties,  within five Business Days after the date (i) Paxar
     acquires or creates any Subsidiary  organized  under the laws of the United
     States of America or any State  thereof or (ii) Paxar  acquires  or creates
     any Foreign  Guarantor or any Subsidiary  satisfies the  requirements to be
     treated as a Foreign Guarantor, the following:

               (i) A Guaranty  Supplement in substantially the form of Exhibit A
          to the  Subsidiary  Guaranty or the Foreign  Subsidiary  Guaranty,  as
          applicable, duly executed by the respective Subsidiary.

               (ii) A copy  of the  constituent  documents  of  such  Subsidiary
          certified  by  the  Secretary  or  an  Assistant   Secretary  of  such
          Subsidiary.

               (iii) A copy of the by-laws of such  Subsidiary  certified by the
          Secretary or an Assistant Secretary of such Subsidiary.

               (iv) An  opinion  of  counsel  for such  Subsidiary,  in form and
          substance satisfactory to the Administrative Agent.

          SECTION 5.02. Negative Covenants.  So long as any Advance shall remain
unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have
any Commitment hereunder, Paxar will not:

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

               (i) Permitted Liens,

               (ii)  purchase  money  Liens  upon  or in any  real  property  or
          equipment  acquired or held by Paxar or any of its Subsidiaries in the
          ordinary  course of  business  to secure  the  purchase  price of such
          property  or  equipment  or to secure  Debt  incurred  solely  for the
          purpose of financing the acquisition of such property or equipment, or
          Liens  existing  on such  property  or  equipment  at the  time of its
          acquisition  (other than any such Liens  created in  contemplation  of
          such  acquisition that were not incurred to finance the acquisition of
          such property) or extensions,  renewals or  replacements of any of the
          foregoing for the same or a lesser amount, provided,  however, that no
          such Lien shall  extend to or cover any  properties  of any  character
          other than the real property or equipment being acquired,  and no such
          extension,  renewal  or  replacement  shall  extend  to or  cover  any
          properties not theretofore subject to the Lien being extended, renewed
          or replaced,  provided further that the sum of the aggregate principal
          amount of the  indebtedness  secured by the Liens  referred to in this
          clause (ii) plus the aggregate  principal  amount of the  indebtedness
          secured by the Liens referred to in clause (iv) below shall not exceed
          the amount specified  therefor in Section  5.02(d)(iii)(C) at any time
          outstanding,

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<PAGE>

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

               (iv)  Liens  arising  in  connection  with   Capitalized   Leases
          permitted  under Section  5.02(d)(iii)(C);  provided that no such Lien
          shall extend to or cover any assets  other than the assets  subject to
          such Capitalized Leases,

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

               (vi) other Liens securing Debt in an aggregate  principal  amount
          not to exceed the amount specified therefor in Section 5.02(d)(iii)(H)
          at any time outstanding.

          (b) Mergers,  Etc.  Merge or consolidate  with or into any Person,  or
     permit  any of its  Subsidiaries  to do so,  except  that (i) any  domestic
     Subsidiary  of Paxar  may  merge  or  consolidate  with or into  any  other
     domestic  Subsidiary  of Paxar,  (ii) any foreign  Subsidiary  of Paxar may
     merge or  consolidate  with or into any other foreign  Subsidiary of Paxar,
     (iii) any  Subsidiary  of Paxar may merge into Paxar and (iv) any  Borrower
     may merge  into or  consolidate  with any other  Person or permit any other
     Person to merge into or consolidate  with it;  provided,  however,  in each
     case,  that no Default shall have occurred and be continuing at the time of
     such proposed transaction or would result therefrom and, in the case of any
     merger  or  consolidation  to which a  Borrower  is a party,  the  relevant
     Borrower shall be the surviving corporation.

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

          (d) Debt. Create,  incur,  assume or suffer to exist, or permit any of
     its  Subsidiaries  to create,  incur,  assume or suffer to exist,  any Debt
     other than:

               (i) in the case of Paxar,  Debt in  respect  of Hedge  Agreements
          designed to hedge against  fluctuations  in interest rates incurred in
          the ordinary course of business and consistent  with prudent  business
          practice;

               (ii) in the case of any of its  Subsidiaries,  Debt owed to Paxar
          or to a  wholly-owned  Subsidiary  of Paxar,  provided  that such Debt
          shall be subordinate to the  Obligations of the Loan Parties under the
          Loan  Documents on terms and conditions  satisfactory  to the Required
          Lenders,  except for such Debt of any such  Subsidiary  in a principal
          amount less than  $500,000  (or the  equivalent  in another  currency)
          provided that the aggregate  principal amount of such Debt which shall
          not be subject to a  satisfactory  subordination  agreement  shall not
          exceed $5,000,000 (or the equivalent in other currencies); and

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               (iii) in the case of Paxar and any of its Subsidiaries,

                    (A) Debt under the Loan Documents,

                    (B) Debt existing on the  Effective  Date or Debt created or
               incurred  under  a  loan  or  credit  facility  existing  on  the
               Effective Date and, in each case,  described on Schedule  5.02(d)
               hereto (the "Existing Debt"), and any Debt extending the maturity
               of,  or  refunding  or  refinancing,  in whole  or in  part,  the
               Existing  Debt,  provided  that  the  principal  amount  of  such
               Existing Debt shall not be increased  above the principal  amount
               thereof   outstanding   immediately   prior  to  such  extension,
               refunding or refinancing,  and the direct and contingent obligors
               therefor  shall not be changed,  as a result of or in  connection
               with such extension, refunding or refinancing,

                    (C)  Capitalized  Leases and Debt secured by Liens permitted
               by Section 5.02(a)(ii),  provided that (i) on any date the sum of
               Capitalized  Leases then outstanding plus the aggregate amount of
               Debt then  outstanding  and secured by Liens permitted by Section
               5.02(a)(ii)  plus the aggregate  amount of Debt then  outstanding
               and secured by Liens permitted by Section  5.02(a)(vi)  shall not
               exceed  $10,000,000 and (ii) after giving effect to the creation,
               incurrence or assumption of such Capitalized  Lease or such Debt,
               the  Debt  to  EBITDA   Ratio  of  Paxar  and  its   Subsidiaries
               (calculated  on a pro  forma  basis)  as of the  end of the  most
               recently ended fiscal quarter of Paxar would be less than 3.00:1,

                    (D)  in  the  case  of  Existing   Debt  of  Paxar  and  its
               Subsidiaries,  Debt of Paxar and its domestic Subsidiaries of the
               type  described  in  clause  (i)  of  the  definition  of  "Debt"
               guaranteeing the Obligations of Paxar or such Subsidiary,  as the
               case may be, under such Existing Debt,

                    (E)  Debt  of  Paxar  or any of its  wholly  owned  domestic
               Subsidiaries  that is subordinate to the  Obligations of the Loan
               Parties under the Loan Documents in an aggregate principal amount
               acceptable  to the Required  Lenders and on terms and  conditions
               satisfactory to the Required Lenders,

                    (F)  endorsement  of negotiable  instruments  for deposit or
               collection  or similar  transactions  in the  ordinary  course of
               business,

                    (G) Debt of Paxar or any of its wholly owned Subsidiaries so
               long as (i) both before and after giving  effect to the creation,
               incurrence or assumption of such Debt, no Default shall occur and
               be  continuing  and (ii)  after  giving  effect to the  creation,
               incurrence or  assumption of such Debt,  the Debt to EBITDA Ratio
               of Paxar and its  Subsidiaries  (calculated on a pro forma basis)
               as of the end of the most recently  ended fiscal quarter of Paxar
               would be less than 3.00:1, and

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<PAGE>

                    (H)  secured  Debt  of  Paxar  or any of  its  wholly  owned
               Subsidiaries,   provided   that  (i)  on  any  date  the  sum  of
               Capitalized  Leases then outstanding plus the aggregate amount of
               Debt then  outstanding  and secured by Liens permitted by Section
               5.02(a)(ii)  plus the aggregate  amount of Debt then  outstanding
               and secured by Liens permitted by Section  5.02(a)(vi)  shall not
               exceed  $10,000,000 and (ii) after giving effect to the creation,
               incurrence or  assumption of such Debt,  the Debt to EBITDA Ratio
               of Paxar and its Subsidiaries  (calculated on an pro forma basis)
               as of the end of the most recently  ended fiscal quarter of Paxar
               would be less than 3.00:1.

          (e) Sales, Etc. of Assets. Sell, lease,  transfer or otherwise dispose
     of, or permit any of its Subsidiaries to sell, lease, transfer or otherwise
     dispose  of, any assets,  or grant any option or other  right to  purchase,
     lease or otherwise acquire any assets, except (i) sales of inventory in the
     ordinary  course  of its  business,  (ii) in a  transaction  authorized  by
     subsection  (b) of this  Section and (iii) sales of assets for cash and for
     fair value in an  aggregate  amount not to exceed an amount equal to 10% of
     the Consolidated total assets of Paxar and its Subsidiaries.

          (f)  Investments in Other Persons.  Make or hold, or permit any of its
     Subsidiaries to make or hold, any Investment in any Person other than:

               (i) (A)  Investments  by Paxar and its domestic  Subsidiaries  in
          their  Subsidiaries  outstanding  on the date  hereof  and  additional
          Investments in wholly owned domestic Subsidiaries of Paxar that, prior
          to the making of such Investments,  were wholly owned  Subsidiaries of
          Paxar,  (B) Investments by Paxar and its  Subsidiaries in wholly owned
          Subsidiaries  of Paxar that,  prior to the making of such  Investments
          were not wholly owned Subsidiaries of Paxar, provided that both before
          and after  giving  effect to such  Investment,  no Default  shall have
          occurred  and be  continuing  and Paxar  must  deliver,  prior to such
          Investment,  a certificate  of the chief  financial  officer of Paxar,
          describing  such  Investment  and  demonstrating  compliance  with the
          covenants (on a pro forma basis giving effect to such  Investment) set
          forth in Section 5.03, and the Investment is the same line of business
          as the Borrowers and its  Subsidiaries  or reasonably  related thereto
          and (C)  Investments  by the  foreign  Subsidiaries  of Paxar in their
          Subsidiaries outstanding on the date hereof;

               (ii) loans and advances to  employees  in the ordinary  course of
          the business of Paxar and its  Subsidiaries as presently  conducted in
          an aggregate  principal  amount not to exceed  $5,000,000  at any time
          outstanding;

               (iii) Investments in Cash Equivalents;

               (iv)  Investments  in  overnight  Eurodollar  deposits  with  any
          commercial  bank  that is a Lender  Party or a member  of the  Federal
          Reserve  System,  issues  (or the parent of which  issues)  commercial
          paper  rated as  described  in clause (c) of the  definition  of "Cash
          Equivalents",  is organized under the laws of the United States or any

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          State  thereof  and has  combined  capital  and surplus of at least $1
          billion;

               (v) Investments  consisting of intercompany  Debt permitted under
          Section 5.02(d)(ii); and

               (vi) other  Investments  in an aggregate  amount  invested not to
          exceed $25,000,000 in Persons other than wholly owned Subsidiaries.

          (g)  Change in  Nature  of  Business.  Engage,  or  permit  any of its
     Subsidiaries  to engage,  to any  substantial  extent in any business other
     than the businesses in which Paxar and its  Subsidiaries are engaged on the
     Effective Date and businesses  reasonably related thereto or in furtherance
     thereof.

          (h) Charter  Amendments.  Amend, or permit any of its  Subsidiaries to
     amend, its certificate of incorporation or bylaws, other than any amendment
     which  would not  adversely  affect the rights or  interests  of the Lender
     Parties hereunder and under the other Loan Documents.

          (i) Prepayments,  Etc. of Debt. (x) Prepay, redeem, purchase,  defease
     or otherwise satisfy prior to the scheduled maturity thereof in any manner,
     or make any payment in  violation of any  subordination  terms of, any Debt
     unless  both  before  and  after  giving  effect  to any  such  prepayment,
     redemption,  purchase,  defeasance or  satisfaction,  no Default shall have
     occurred and be  continuing,  or (y) amend,  modify or change in any manner
     any  term  or  condition  of  any  Existing  Debt,  or  permit  any  of its
     Subsidiaries  to do any of the  foregoing  other  than to  prepay  any Debt
     payable to Paxar.

          (j)  Partnerships,  Etc.  Become a general  partner in any  general or
     limited  partnership or joint venture, or permit any of its Subsidiaries to
     do so, other than any  Subsidiary of Paxar the sole assets of which consist
     of its interest in such partnership or joint venture.

          (k)  Restricted  Payments.  Declare  or pay any  dividends,  purchase,
     redeem,  retire,  defease or otherwise  acquire for value any of its Equity
     Interests  now  or  hereafter  outstanding,   return  any  capital  to  its
     stockholders,  partners or members (or the equivalent  Persons  thereof) as
     such, make any  distribution of assets,  Equity  Interests,  obligations or
     securities  to its  stockholders,  partners or members  (or the  equivalent
     Persons  thereof) as such, or permit any of its  Subsidiaries  to do any of
     the  foregoing,  or permit any of its  Subsidiaries  to  purchase,  redeem,
     retire,  defease or  otherwise  acquire for value any Equity  Interests  in
     Paxar,  except  that,  so long as no  Default  shall have  occurred  and be
     continuing  at the time of any  action  described  below  or  would  result
     therefrom:

               (i) Paxar may declare and pay  dividends  and  distributions,  or
          make other purchases or redemptions,  payable either (A) in its common
          Equity  Interests or (B) in cash provided that the aggregate amount of
          cash dividends,  distributions,  purchases and  redemptions  shall not
          exceed (1)  $50,000,000  in any 12-month  period and (2)  $100,000,000
          during the term of this Agreement; and

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<PAGE>

               (ii)  any  Subsidiary  of  Paxar  may  declare  and  pay or  make
          dividends and other distributions (A) to Paxar or any other Loan Party
          and (B) to a Subsidiary of any Loan Party.

          SECTION 5.03. Financial Covenants. So long as any Advance shall remain
unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have
any Commitment hereunder, Paxar will:

          (a) Net Worth.  Maintain at all times an excess of Consolidated  total
     assets over Consolidated total  liabilities,  in each case of Paxar and its
     Subsidiaries,  of not less than the sum of (x) $350,000,000 plus (y) 35% of
     Consolidated  net income  (without  taking  into  account any net loss that
     occurs for any period after the date hereof) of Paxar and its  Subsidiaries
     for the  period  after  October  1,  2005  to and  including  each  date of
     determination computed on a cumulative basis for said entire period.

          (b) Debt to EBITDA Ratio.  Maintain at the end of each fiscal  quarter
     of Paxar, a Debt to EBITDA Ratio of Paxar and its Subsidiaries of less than
     3.00:1.

          (c) Fixed Charge  Coverage  Ratio.  Maintain at the end of each fiscal
     quarter  of  Paxar  a  ratio  of  Consolidated  EBITDA  of  Paxar  and  its
     Subsidiaries for the most recently  completed four fiscal quarters of Paxar
     and its Subsidiaries less the aggregate amount of Capital Expenditures made
     by Paxar and its Subsidiaries during such four fiscal quarter period to the
     sum of (i)  interest  and fees  payable on all Debt during such four fiscal
     quarter  period plus (ii)  principal  amounts of all Debt  scheduled  to be
     payable  during such four fiscal  quarter  period plus (iii) the  aggregate
     amount of all taxes payable in cash during such four fiscal quarter period,
     in each case by Paxar and its Subsidiaries, of not less 1.50:1.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

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

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

          (b) Any  representation  or  warranty  made or deemed made by any Loan
     Party (or any of its officers) in connection  with any Loan Document  shall
     prove to have been  incorrect in any  material  respect when made or deemed
     made; or

          (c) (i) Paxar shall fail to perform or observe  any term,  covenant or
     agreement  contained in Section 5.01(d),  (e), (i) or (j), 5.02 or 5.03, or
     (ii) any Loan  Party  shall fail to  perform  or  observe  any other  term,

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<PAGE>

     covenant  or  agreement  contained  in any Loan  Document on its part to be
     performed or observed if such failure shall remain  unremedied  for 10 days
     after the  earlier  of the date on which (A) an  officer  of Paxar  becomes
     aware of such failure or (B) written  notice  thereof shall have been given
     to Paxar by the Administrative Agent or any Lender Party; or

          (d) Paxar or any of its  Subsidiaries  shall fail to pay any principal
     of or premium or interest on any Debt that is outstanding in a principal or
     notional  amount of at least  $500,000 in the aggregate (but excluding Debt
     outstanding  hereunder) of Paxar or such  Subsidiary  (as the case may be),
     when the same  becomes due and  payable  (whether  by  scheduled  maturity,
     required prepayment,  acceleration,  demand or otherwise), and such failure
     shall continue after the applicable grace period, if any,  specified in the
     agreement  or  instrument  relating to such Debt;  or any other event shall
     occur or condition  shall exist under any agreement or instrument  relating
     to any such Debt and shall continue after the applicable  grace period,  if
     any, specified in such agreement or instrument, if the effect of such event
     or  condition  is to  accelerate,  or to permit  the  acceleration  of, the
     maturity  of such Debt;  or any such Debt shall be  declared  to be due and
     payable,  or required to be prepaid or redeemed  (other than by a regularly
     scheduled required prepayment or redemption),  purchased or defeased, or an
     offer to prepay, redeem, purchase or defease such Debt shall be required to
     be made, in each case prior to the stated maturity thereof; or

          (e) Paxar or any of its Subsidiaries shall generally not pay its debts
     as such debts  become due, or shall admit in writing its  inability  to pay
     its debts generally,  or shall make a general assignment for the benefit of
     creditors; or any proceeding shall be instituted by or against Paxar or any
     of its  Subsidiaries  seeking to adjudicate it a bankrupt or insolvent,  or
     seeking liquidation, winding up, reorganization,  arrangement,  adjustment,
     protection,  relief,  or  composition  of it or its  debts  under  any  law
     relating to bankruptcy,  insolvency or  reorganization or relief of debtors
     or similar procedures in any relevant jurisdiction, or seeking the entry of
     an order for relief or the appointment of a receiver, trustee, custodian or
     other similar  official for it or for any substantial  part of its property
     and,  in the case of any such  proceeding  instituted  against  it (but not
     instituted  by it),  either such  proceeding  shall remain  undismissed  or
     unstayed  for a period  of 30 days,  or any of the  actions  sought in such
     proceeding (including, without limitation, the entry of an order for relief
     against,  or the  appointment  of a receiver,  trustee,  custodian or other
     similar official for, it or for any substantial part of its property) shall
     occur; or Paxar or any of its Subsidiaries  shall take any corporate action
     to authorize any of the actions set forth above in this subsection (e); or

          (f) Any  judgment  or order  for the  payment  of money in  excess  of
     $500,000  shall be rendered  against Paxar or any of its  Subsidiaries  and
     either  (i)  enforcement  proceedings  shall  have  been  commenced  by any
     creditor  upon such  judgment or order or (ii) there shall be any period of
     10 consecutive  days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise,  shall not be in effect;
     or

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

          (h) (i) Any Person or two or more Persons acting in concert shall have
     acquired  beneficial  ownership  (within  the  meaning of Rule 13d-3 of the
     Securities and Exchange  Commission  under the  Securities  Exchange Act of
     1934),  directly  or  indirectly,  of  Voting  Stock  of  Paxar  (or  other
     securities  convertible into such Voting Stock) representing 30% or more of
     the combined  voting power of all Voting Stock of Paxar; or (ii) during any
     period of up to 24 consecutive  months,  commencing  after the date of this
     Agreement,  individuals  who at the beginning of such 24-month  period were
     directors  of Paxar shall cease for any reason to  constitute a majority of
     the board of directors of Paxar; or (iii) any Person or two or more Persons
     acting in concert shall have  acquired by contract or  otherwise,  or shall
     have entered into a contract or arrangement that, upon  consummation,  will
     result in its or their  acquisition  of the power to exercise,  directly or
     indirectly,  a  controlling  influence  over the  management or policies of
     Paxar; or

          (i)  Paxar or any of its  ERISA  Affiliates  shall  incur  or,  in the
     reasonable  opinion of the Required Lenders,  shall be reasonably likely to
     incur  liability in excess of $500,000 in the  aggregate as a result of one
     or more of the following:  (i) the occurrence of any ERISA Event;  (ii) the
     partial or complete withdrawal of Paxar or any of its ERISA Affiliates from
     a  Multiemployer  Plan; or (iii) the  reorganization  or  termination  of a
     Multiemployer Plan;

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

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                                  ARTICLE VII

                            THE ADMINISTRATIVE AGENT

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

          SECTION  7.02.  Administrative  Agent's  Reliance,  Etc.  Neither  the
Administrative  Agent nor any of its  directors,  officers,  agents or employees
shall be liable for any action  taken or omitted to be taken by it or them under
or in  connection  with  this  Agreement,  except  for its or  their  own  gross
negligence or willful  misconduct.  Without  limitation of the generality of the
foregoing,  the Administrative Agent: (i) may treat the payee of any Note as the
holder thereof until the Administrative Agent receives and accepts an Assignment
and Acceptance  entered into by the Lender Party that is the payee of such Note,
as assignor, and an Eligible Assignee, as assignee, as provided in Section 9.07;
(ii) may consult with legal counsel (including  counsel for Paxar),  independent
public  accountants and other experts selected by it and shall not be liable for
any action taken or omitted to be taken in good faith by it in  accordance  with
the advice of such counsel,  accountants or experts;  (iii) makes no warranty or
representation  to any Lender Party and shall not be  responsible  to any Lender
Party for any  statements,  warranties or  representations  (whether  written or
oral) made in or in connection with this Agreement; (iv) shall not have any duty
to ascertain or to inquire as to the  performance  or  observance  of any of the
terms,  covenants  or  conditions  of this  Agreement on the part of Paxar or to
inspect the property  (including the books and records) of Paxar;  (v) shall not
be responsible to any Lender Party for the due  execution,  legality,  validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other
instrument or document furnished pursuant hereto;  (vi) shall incur no liability
under or in  respect  of this  Agreement  by acting  upon any  notice,  consent,
certificate or other instrument or writing (which may be by telecopier) believed
by it to be genuine and signed or sent by the proper party or parties, and (vii)
shall not be obligated to carry out any "know your  customer" or other checks in
relation to any person on behalf of any Lender and each  Lender  confirms to the
Administrative  Agent that it is solely  responsible  for any such  checks it is
required to carry out and that it may not rely on any  statement  in relation to
such checks made by the Administrative Agent.

          SECTION 7.03. ABN and Affiliates.  With respect to its Commitment, the
Advances  made by it and the Note  issued to it, ABN shall have the same  rights
and powers  under this  Agreement as any other Lender Party and may exercise the

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same as  though it were not the  Administrative  Agent;  and the term  "Lender",
"Lenders",  "Lender Party" or "Lender Parties" shall, unless otherwise expressly
indicated,  include ABN in its individual  capacity.  ABN and its Affiliates may
accept deposits from, lend money to, act as trustee under  indentures of, accept
investment banking engagements from and generally engage in any kind of business
with,  Paxar, any of its Subsidiaries and any Person who may do business with or
own  securities  of  Paxar or any  such  Subsidiary,  all as if ABN were not the
Administrative  Agent and  without  any duty to account  therefor  to the Lender
Parties.

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

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

          SECTION 7.06. Successor Administrative Agent. The Administrative Agent
may resign at any time by giving  written  notice  thereof to the Lender Parties
and Paxar and may be removed at any time with or without  cause by the  Required
Lenders.  Upon any such resignation or removal,  the Required Lenders shall have
the  right  to  appoint  a  successor  Administrative  Agent.  If  no  successor

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Administrative  Agent shall have been so appointed by the Required Lenders,  and
shall  have  accepted  such  appointment,  within  30 days  after  the  retiring
Administrative  Agent's giving of notice of resignation or the Required Lenders'
removal of the retiring  Administrative Agent, then the retiring  Administrative
Agent may, on behalf of the Lender Parties,  appoint a successor  Administrative
Agent,  which shall be a commercial  bank organized under the laws of the United
States of America or of any State  thereof  and  having a combined  capital  and
surplus of at least  $50,000,000.  Upon the  acceptance  of any  appointment  as
Administrative  Agent  hereunder  by  a  successor  Administrative  Agent,  such
successor Administrative Agent shall thereupon succeed to and become vested with
all the  rights,  powers,  discretion,  privileges  and  duties of the  retiring
Administrative Agent, and the retiring  Administrative Agent shall be discharged
from its  duties  and  obligations  under  this  Agreement.  After any  retiring
Administrative Agent's resignation or removal hereunder as Administrative Agent,
the  provisions of this Article VII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative  Agent under this
Agreement.

                                  ARTICLE VIII

                   GUARANTY, CROSS-GUARANTY AND SUBORDINATION

          SECTION 8.01.  Guaranty.  (a) Paxar  absolutely,  unconditionally  and
irrevocably  guarantees (the  undertaking by Paxar under this Section 8.01 being
the "Guaranty") the punctual payment when due,  whether at stated  maturity,  by
acceleration  or otherwise,  of all  Obligations of each Non-US  Borrower now or
hereafter  existing under the Loan Documents,  whether for principal,  interest,
fees, commissions, expenses or otherwise (such Obligations being the "Guaranteed
Obligations"),  undertakes  with each  Lender  Party  that  whenever  any Non-US
Borrower does not pay any amount when due under or in connection with any of the
Loan Documents,  Paxar shall  immediately on demand pay that amount as if it was
the  principal  obligor,  and  agrees  to pay on  demand  any and  all  expenses
(including,  without  limitation,  reasonable  fees  and  expenses  of  counsel)
incurred by the Administrative Agent or any Lender Party in enforcing any rights
under this Guaranty.  Without limiting the generality of the foregoing,  Paxar's
liability  shall extend to all amounts that  constitute  part of the  Guaranteed
Obligations and would be owed by any Non-US Borrower to the Administrative Agent
or any  Lender  Party  under the Loan  Documents  but for the fact that they are
unenforceable   or  not   allowable  due  to  the  existence  of  a  bankruptcy,
reorganization or similar proceeding involving such other Loan Party.

          (b)  Guaranty   Absolute.   Paxar   guarantees   that  the  Guaranteed
Obligations  will be paid  strictly  in  accordance  with the  terms of the Loan
Documents, regardless of any law, regulation or order now or hereafter in effect
in  any  jurisdiction  affecting  any  of  such  terms  or  the  rights  of  the
Administrative  Agent or any  other  Lender  Party  with  respect  thereto.  The
Obligations  of Paxar under this  Guaranty  are  independent  of the  Guaranteed
Obligations or any other Obligations of any Loan Party under the Loan Documents,
and a separate action or actions may be brought and prosecuted  against Paxar to
enforce this Guaranty, irrespective of whether any action is brought against any
other Loan Party or whether any other Loan Party is joined in any such action or
actions.  The  liability  of  Paxar  under  this  Guaranty  shall  be  absolute,

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unconditional  and  irrevocable  irrespective  of, and Paxar hereby  irrevocably
waives any defenses it may now or hereafter have in any way relating to, any and
all of the following:

          (i) any lack of validity or enforceability of any Loan Document or any
     other agreement or instrument relating thereto;

          (ii) any change in the time,  manner or place of payment of, or in any
     other  term  of,  all or any of the  Guaranteed  Obligations  or any  other
     Obligations  of any Loan  Party  under  the Loan  Documents,  or any  other
     amendment or waiver of or any consent to departure  from any Loan  Document
     (including,  without limitation, any increase in the Guaranteed Obligations
     resulting from the extension of additional  credit to any Loan Party or any
     of its Subsidiaries or otherwise);

          (iii)  any  taking,   exchange,   release  or  non-perfection  of  any
     collateral  or any taking,  release or amendment or waiver of or consent to
     departure  from  any  other  guarantee  for  all or  any of the  Guaranteed
     Obligations;

          (iv)  any  change,  restructuring  or  termination  of  the  corporate
     structure or existence of any other Loan Party or any of its Subsidiaries;

          (v) any  failure of the  Administrative  Agent or any Lender  Party to
     disclose  to any Loan  Party  any  information  relating  to the  financial
     condition, operations,  properties or prospects of any other Loan Party now
     or hereafter known to the Administrative Agent or such Lender Party, as the
     case may be; or

          (vi)  any  other  circumstance  (including,  without  limitation,  any
     statute  of   limitations   or  any   existence   of  or  reliance  on  any
     representation by the Administrative  Agent or any Lender Party) that might
     otherwise  constitute a defense available to, or a discharge of, Paxar, any
     other Loan Party or any other guarantor or surety.

This Guaranty shall  continue to be effective or be reinstated,  as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by the Administrative Agent or any Lender Party or
by any other Person upon the  insolvency,  bankruptcy or  reorganization  of any
other Loan Party or otherwise, all as though such payment had not been made.

          (c) Waivers and Acknowledgments.  (i) Paxar hereby unconditionally and
irrevocably  waives  promptness,  diligence,  notice of acceptance and any other
notice with respect to any of the Guaranteed  Obligations and this Guaranty, and
any requirement  that the  Administrative  Agent or any Lender Party exhaust any
right or take any action against any other Loan Party or any other Person or any
collateral.

          (ii) Paxar hereby  unconditionally  and irrevocably waives any duty on
     the part of the  Administrative  Agent or any Lender  Party to  disclose to
     Paxar any matter,  fact or thing  relating to the  business,  operation  or
     condition  of any  other  Loan  Party  or any  of its  Subsidiaries  or its
     property and assets now or hereafter known by the  Administrative  Agent or
     such Lender Party.

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          (iii)  Paxar  hereby  unconditionally  waives any right to revoke this
     Guaranty,  and acknowledges  that this Guaranty is continuing in nature and
     applies  to all  Guaranteed  Obligations,  whether  existing  now or in the
     future.

          (iv) Paxar  acknowledges that it will receive  substantial  direct and
     indirect benefits from the financing arrangements  contemplated by the Loan
     Documents  and that the  waivers  set  forth in this  Section  8.01(c)  are
     knowingly made in contemplation of such benefits.

          (d) Subrogation.  Paxar hereby  unconditionally and irrevocably agrees
not to exercise any rights that it may now have or may hereafter acquire against
any  other  Loan  Party or any  other  insider  guarantor  that  arise  from the
existence,  payment,  performance or enforcement of its  Obligations  under this
Guaranty or under any other Loan Document,  including,  without limitation,  any
right   of   subrogation,    reimbursement,    exoneration,    contribution   or
indemnification  and any  right to  participate  in any  claim or  remedy of the
Administrative  Agent or any Lender  against  such other Loan Party or any other
insider guarantor,  whether or not such claim,  remedy or right arises in equity
or under contract,  statute or common law, including,  without  limitation,  the
right to take or  receive  from  such  other  Loan  Party or any  other  insider
guarantor,  directly or indirectly, in cash or other property or by setoff or in
any other manner, payment or security on account of such claim, remedy or right,
until  such time as all of the  Guaranteed  Obligations  and all  other  amounts
payable  under this  Guaranty  shall have been paid in full in cash,  all of the
Letters of Credit  shall have  expired,  terminated  or been  cancelled  and the
Commitments  shall have  expired or  terminated.  If any amount shall be paid to
Paxar in violation of the  immediately  preceding  sentence at any time prior to
the  latest  of (a)  the  payment  in  full  in  cash  of all of the  Guaranteed
Obligations  and all other  amounts  payable under this  Guaranty,  (b) the full
drawing,  termination,  expiration or  cancellation of all Letters of Credit and
(c) the Termination  Date, such amount shall be held in trust for the benefit of
the  Administrative  Agent and the Lender Parties and shall forthwith be paid to
the  Administrative   Agent  to  be  credited  and  applied  to  the  Guaranteed
Obligations and all other amounts  payable under this Guaranty,  whether matured
or unmatured,  in accordance with the terms of the Loan Documents, or to be held
as collateral for any Guaranteed Obligations or other amounts payable under this
Guaranty thereafter arising. If (i) Paxar shall pay to the Administrative  Agent
all or any  part  of the  Guaranteed  Obligations,  (ii)  all of the  Guaranteed
Obligations  and all other amounts  payable under this Guaranty  shall have been
paid in full in cash,  (iii) all of the  Letters of Credit  shall have  expired,
terminated or been cancelled, and (iv) the Termination Date shall have occurred,
the  Administrative  Agent and the Lender  Parties will, at Paxar's  request and
expense,  execute and deliver to Paxar appropriate  documents,  without recourse
and without  representation  or warranty,  necessary to evidence the transfer of
subrogation to Paxar of an interest in the Guaranteed Obligations resulting from
the payment made by Paxar.

          (e) Continuing Guarantee;  Assignments.  This Guaranty is a continuing
guaranty  and  shall (i)  remain in full  force and  effect  until  (subject  to
reinstatement pursuant to Section 8.01(b)) the latest of (A) the payment in full
in cash of all of the Guaranteed Obligations and all other amounts payable under
this Guaranty, (B) the full drawing, termination,  expiration or cancellation of
all Letters of Credit,  and (C) the Termination Date, (ii) be binding upon Paxar
and its respective successors and assigns and (iii) inure to the benefit of, and
be  enforceable  by, the  Administrative  Agent and the Lender Parties and their

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respective successors,  transferees and assigns. Without limiting the generality
of clause  (iii) of the  immediately  preceding  sentence,  any Lender Party may
assign or otherwise  transfer  all or any portion of its rights and  obligations
under this Agreement (including,  without limitation,  all or any portion of its
Commitment or Commitments, the Advances owing to it and the Notes held by it) to
any other Person,  and such other Person shall thereupon  become vested with all
the benefits in respect  thereof granted to such Lender Party under this Section
8.01 or otherwise, in each case as provided in Section 9.07.

          SECTION  8.02.  Cross-Guaranty.  (a) To the fullest  extent  permitted
under  applicable  law, each Non-US  Borrower  absolutely,  unconditionally  and
irrevocably  guarantees  (the  undertaking  by each Non-US  Borrower  under this
Section 8.02 being the  "Cross-Guaranty") the punctual payment when due, whether
at stated  maturity,  by acceleration  or otherwise,  of all Obligations of each
other  Non-US  Borrower  now or  hereafter  existing  under the Loan  Documents,
whether for principal, interest, fees, commissions,  expenses or otherwise (such
Obligations  being the  "Cross-Guaranteed  Obligations"),  undertakes  with each
Lender Party that  whenever any other  Non-US  Borrower  does not pay any amount
when due under or in connection with any of the Loan Documents, that such Non-US
Borrower shall  immediately on demand pay that amount as if it was the principal
obligor,  and agrees to pay on demand any and all expenses  (including,  without
limitation,   reasonable   fees  and  expenses  of  counsel)   incurred  by  the
Administrative  Agent or any Lender  Party in  enforcing  any rights  under this
Cross-Guaranty.  Without  limiting the generality of the foregoing,  each Non-US
Borrower's  liability  shall extend to all amounts that  constitute  part of the
Cross-Guaranteed  Obligations  and would be owed by any other Non-US Borrower to
the  Administrative  Agent or any Lender Party under the Loan  Documents but for
the fact that they are  unenforceable or not allowable due to the existence of a
bankruptcy,  reorganization  or  similar  proceeding  involving  such other Loan
Party.

          Each  of  the  Non-US  Borrowers,   and  by  its  acceptance  of  this
Cross-Guaranty,  the Administrative Agent and each of the Lender Parties, hereby
confirm that it is the  intention  of all such Persons that this  Cross-Guaranty
and the obligations of each of the Non-US  Borrowers  hereunder not constitute a
fraudulent  transfer or  conveyance  for purposes of the United  States  Federal
Bankruptcy Code, the Uniform  Fraudulent  Conveyance Act, the Uniform Fraudulent
Act or any  similar  federal  or  state  law or  similar  law in any  applicable
jurisdiction  outside the United  States  covering the  protection of creditors'
rights or the relief of debtors to the extent applicable to this  Cross-Guaranty
and the obligations of each of the Non-US Borrowers hereunder. To effectuate the
foregoing intention,  each of the Non-US Borrowers, the Administrative Agent and
each of the Lender Parties hereby  irrevocably  agree that the  Cross-Guaranteed
Obligations  and all of the other  liabilities  of each of the Non-US  Borrowers
under this Cross-Guaranty  shall be limited to the maximum amount as will, after
giving effect to such maximum  amount and all of the other  contingent and fixed
liabilities  of such Non-US  Borrower  that are relevant  thereunder,  and after
giving effect to any collections from, any rights to receive contributions from,
or any payments  made by or on behalf of, any of the other  Non-US  Borrowers in
respect  of  the   obligations   of  such  other  Non-US   Borrower  under  this
Cross-Guaranty,  result in the Cross-Guaranteed Obligations and all of the other
liabilities  of each of the  Non-US  Borrowers  under  this  Cross-Guaranty  not
constituting a fraudulent transfer or conveyance.

          (b) Cross-Guaranty  Absolute. Each Non-US Borrower guarantees that the
Cross-Guaranteed  Obligations will be paid strictly in accordance with the terms
of the Loan  Documents,  regardless  of any  law,  regulation  or  order  now or
hereafter  in  effect in any  jurisdiction  affecting  any of such  terms or the

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rights  of the  Administrative  Agent or any other  Lender  Party  with  respect
thereto.  The Obligations of each Non-US Borrower under this  Cross-Guaranty are
independent of the Cross-Guaranteed  Obligations or any other Obligations of any
Loan Party  under the Loan  Documents,  and a separate  action or actions may be
brought  and   prosecuted   against   such  Non-US   Borrower  to  enforce  this
Cross-Guaranty,  irrespective of whether any action is brought against any other
Loan  Party or  whether  any other  Loan  Party is joined in any such  action or
actions.  The liability of each Non-US Borrower under this Cross-Guaranty  shall
be absolute,  unconditional  and  irrevocable  irrespective  of, and such Non-US
Borrower hereby  irrevocably waives any defenses it may now or hereafter have in
any way relating to, any and all of the following:

          (i) any lack of validity or enforceability of any Loan Document or any
     other agreement or instrument relating thereto;

          (ii) any change in the time,  manner or place of payment of, or in any
     other term of, all or any of the Cross-Guaranteed  Obligations or any other
     Obligations  of any Loan  Party  under  the Loan  Documents,  or any  other
     amendment or waiver of or any consent to departure  from any Loan  Document
     (including,  without  limitation,  any  increase  in  the  Cross-Guaranteed
     Obligations  resulting from the extension of additional  credit to any Loan
     Party or any of its Subsidiaries or otherwise);

          (iii)  any  taking,   exchange,   release  or  non-perfection  of  any
     collateral  or any taking,  release or amendment or waiver of or consent to
     departure from any other  guarantee for all or any of the  Cross-Guaranteed
     Obligations;

          (iv)  any  change,  restructuring  or  termination  of  the  corporate
     structure or existence of any other Loan Party or any of its Subsidiaries;

          (v) any  failure of the  Administrative  Agent or any Lender  Party to
     disclose  to any Loan  Party  any  information  relating  to the  financial
     condition, operations,  properties or prospects of any other Loan Party now
     or hereafter known to the Administrative Agent or such Lender Party, as the
     case may be; or

          (vi)  any  other  circumstance  (including,  without  limitation,  any
     statute  of   limitations   or  any   existence   of  or  reliance  on  any
     representation by the Administrative  Agent or any Lender Party) that might
     otherwise constitute a defense available to, or a discharge of, such Non-US
     Borrower, any other Loan Party or any other guarantor or surety.

This Cross-Guaranty shall continue to be effective or be reinstated, as the case
may be, if at any time any payment of any of the Cross-Guaranteed Obligations is
rescinded  or must  otherwise  be  returned by the  Administrative  Agent or any
Lender  Party  or by  any  other  Person  upon  the  insolvency,  bankruptcy  or
reorganization of any other Loan Party or otherwise,  all as though such payment
had not been made.

          (c)  Waivers and  Acknowledgments.  (i) Each  Non-US  Borrower  hereby
unconditionally  and  irrevocably  waives  promptness,   diligence,   notice  of
acceptance  and any other  notice  with  respect to any of the  Cross-Guaranteed
Obligations and this Cross-Guaranty, and any requirement that the Administrative

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Agent or any Lender Party exhaust any right or take any action against any other
Loan Party or any other Person or any collateral.

          (ii) Each  Non-US  Borrower  hereby  unconditionally  and  irrevocably
     waives any duty on the part of the Administrative Agent or any Lender Party
     to disclose to such Non-US  Borrower any matter,  fact or thing relating to
     the business,  operation or condition of any other Loan Party or any of its
     Subsidiaries  or its  property  and  assets now or  hereafter  known by the
     Administrative Agent or such Lender Party.

          (iii) Each Non-US Borrower hereby  unconditionally waives any right to
     revoke this  Cross-Guaranty,  and acknowledges that this  Cross-Guaranty is
     continuing  in nature  and  applies  to all  Cross-Guaranteed  Obligations,
     whether existing now or in the future.

          (iv)  Each  Non-US   Borrower   acknowledges   that  it  will  receive
     substantial  direct and indirect  benefits from the financing  arrangements
     contemplated  by the Loan  Documents and that the waivers set forth in this
     Section 8.02(c) are knowingly made in contemplation of such benefits.

          (d)  Subrogation.  Each Non-US  Borrower  hereby  unconditionally  and
irrevocably  agrees  not to  exercise  any  rights  that it may now  have or may
hereafter  acquire  against any other Loan Party or any other insider  guarantor
that  arise from the  existence,  payment,  performance  or  enforcement  of its
Obligations  under  this  Cross-Guaranty  or  under  any  other  Loan  Document,
including,   without  limitation,  any  right  of  subrogation,   reimbursement,
exoneration, contribution or indemnification and any right to participate in any
claim or remedy of the  Administrative  Agent or any Lender  against  such other
Loan Party or any other insider guarantor,  whether or not such claim, remedy or
right  arises in equity or under  contract,  statute or common  law,  including,
without  limitation,  the right to take or receive from such other Loan Party or
any other insider guarantor,  directly or indirectly,  in cash or other property
or by setoff or in any other  manner,  payment  or  security  on account of such
claim,  remedy  or  right,  until  such  time  as all  of  the  Cross-Guaranteed
Obligations and all other amounts payable under this  Cross-Guaranty  shall have
been paid in full in cash,  all of the  Letters of Credit  shall  have  expired,
terminated  or  been  cancelled  and  the  Commitments  shall  have  expired  or
terminated.  If any amount shall be paid to such Non-US Borrower in violation of
the  immediately  preceding  sentence at any time prior to the latest of (a) the
payment in full in cash of all of the Cross-Guaranteed Obligations and all other
amounts payable under this  Cross-Guaranty,  (b) the full drawing,  termination,
expiration  or  cancellation  of all  Letters of Credit and (c) the  Termination
Date,  such amount shall be held in trust for the benefit of the  Administrative
Agent and the Lender Parties and shall  forthwith be paid to the  Administrative
Agent to be credited  and applied to the  Cross-Guaranteed  Obligations  and all
other amounts payable under this  Cross-Guaranty,  whether matured or unmatured,
in accordance with the terms of the Loan Documents,  or to be held as collateral
for any  Cross-Guaranteed  Obligations  or  other  amounts  payable  under  this
Cross-Guaranty  thereafter arising. If (i) such Non-US Borrower shall pay to the
Administrative Agent all or any part of the Cross-Guaranteed  Obligations,  (ii)
all of the Cross-Guaranteed Obligations and all other amounts payable under this
Cross-Guaranty shall have been paid in full in cash, (iii) all of the Letters of
Credit  shall  have  expired,   terminated  or  been  cancelled,  and  (iv)  the
Termination Date shall have occurred,  the  Administrative  Agent and the Lender
Parties will, at such Non-US Borrower's request and expense, execute and deliver

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to such Non-US  Borrower  appropriate  documents,  without  recourse and without
representation or warranty, necessary to evidence the transfer of subrogation to
such  Non-US  Borrower  of  an  interest  in  the  Cross-Guaranteed  Obligations
resulting from the payment made by such Non-US Borrower.

          (e)  Continuing  Guarantee;  Assignments.  This  Cross-Guaranty  is  a
continuing guaranty and shall (i) remain in full force and effect until (subject
to  reinstatement  pursuant to Section 8.02(b)) the latest of (A) the payment in
full in cash of all of the  Cross-Guaranteed  Obligations  and all other amounts
payable under this Cross-Guaranty, (B) the full drawing, termination, expiration
or cancellation of all Letters of Credit,  and (C) the Termination Date, (ii) be
binding upon each Non-US Borrower and its respective  successors and assigns and
(iii) inure to the benefit of, and be enforceable by, the  Administrative  Agent
and the Lender Parties and their respective successors, transferees and assigns.
Without  limiting the  generality of clause (iii) of the  immediately  preceding
sentence,  any Lender Party may assign or otherwise  transfer all or any portion
of  its  rights  and  obligations  under  this  Agreement  (including,   without
limitation,  all or any portion of its Commitment or  Commitments,  the Advances
owing to it and the Notes held by it) to any other Person, and such other Person
shall  thereupon  become vested with all the benefits in respect thereof granted
to such  Lender  Party under this  Section  8.02 or  otherwise,  in each case as
provided in Section 9.07.

          SECTION  8.03.  Subordination.  Each of PBV and PHK  (individually,  a
"Subordinated Creditor" and collectively,  the "Subordinated  Creditors") hereby
subordinates any and all debts,  liabilities and other  obligations owed to such
Subordinated   Creditor   by  any   Subsidiary   of  Paxar  (the   "Subordinated
Obligations") to the Obligations of the Loan Parties under the Loan Documents to
the extent and in the manner hereinafter set forth in this Section 8.03:

          (a)  Prohibited  Payments,  Etc.  Except during the  continuance  of a
Default,  each Subordinated  Creditor may receive regularly  scheduled  payments
from any Subsidiary of Paxar on account of the Subordinated  Obligations.  After
the occurrence and during the  continuance of any Default,  however,  unless the
Administrative  Agent  otherwise  agrees,  neither  Subordinated  Creditor shall
demand,  accept or take any  action to  collect  any  payment  on account of the
Subordinated Obligations.

          (b)  Prior  Payment  of  Guaranteed  Obligations.  In any  bankruptcy,
insolvency,   reorganization  or  similar   proceeding   relating  to  any  such
Subsidiary,  each Subordinated  Creditor agrees that the Lender Parties shall be
entitled  to receive  payment in full in cash of all  Obligations  of the Lender
Parties under the Loan Documents  (including all interest and expenses  accruing
after the  commencement of any such  proceeding,  whether or not constituting an
allowed  claim  in such  proceeding  ("Post  Petition  Interest"))  before  such
Subsidiary Creditor receives payment of any Subordinated Obligations.

          (c) Turn-Over.  After the occurrence and during the continuance of any
Default,  each  Subordinated  Creditor  shall,  if the  Administrative  Agent so
requests,  collect,  enforce and receive payments on account of the Subordinated
Obligations  as trustee for the Lender  Parties and deliver such payments to the
Administrative Agent on account of the Obligations of the Loan Parties under the

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Loan  Documents  (including  all  Post  Petition  Interest),  together  with any
necessary endorsements or other instruments of transfer.

          (d)  Administrative  Agent  Authorization.  After the  occurrence  and
during the continuance of any Default,  the  Administrative  Agent is authorized
and empowered (but without any obligation to so do), in its  discretion,  (i) in
the name of each Subordinated  Creditor,  to collect and enforce,  and to submit
claims in respect of, Subordinated Obligations and to apply any amounts received
thereon  to the  Obligations  of the  Loan  Parties  under  the  Loan  Documents
(including  any and all  Post  Petition  Interest),  and  (ii) to  require  each
Subordinated  Creditor  (A) to  collect  and  enforce,  and to submit  claims in
respect of, Subordinated Obligations and (B) to pay any amounts received on such
obligations to the  Administrative  Agent for  application to the Obligations of
the Loan Parties under the Loan  Documents  (including any and all Post Petition
Interest).

                                   ARTICLE IX

                                  MISCELLANEOUS

          SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement or the Notes, nor consent to any departure by Paxar therefrom,
shall in any event be  effective  unless the same shall be in writing and signed
by the Required Lenders, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given; provided,
however,  that no  amendment,  waiver or consent  shall,  unless in writing  and
signed by all the Lenders  (other than the  Designated  Bidders),  do any of the
following:  (a) waive any of the  conditions  specified  in  Section  3.01,  (b)
increase the  Commitments  of any Lender or subject any Lender to any additional
obligations,  (c) reduce the principal of, or interest on, the Notes (other than
Competitive  Bid  Notes) or any fees or other  amounts  payable  hereunder,  (d)
postpone  any date fixed for any payment of  principal  of, or interest  on, the
Notes (other than  Competitive  Bid Notes) or any fees or other amounts  payable
hereunder,  (e) change the  percentage  of the  Commitments  or of the aggregate
unpaid principal amount of the Notes (other than Competitive Bid Notes),  or the
number of Lenders, that shall be required for the Lenders or any of them to take
any  action  hereunder,  (f) reduce or limit the  obligations  of any Loan Party
under  Article  VIII or  reduce  or  limit  the  obligations  of any  Subsidiary
Guarantor  under the  Subsidiary  Guaranty (or any Foreign  Guarantor  under the
Foreign Subsidiary Guaranty) or release any Loan Party, any Subsidiary Guarantor
or Foreign  Guarantor  from its respective  obligations  under Article VIII, the
Subsidiary Guaranty or the Foreign Subsidiary  Guaranty,  as the case may be, or
limit a Loan Party's or any Subsidiary  Guarantor's  or any Foreign  Guarantor's
liability with respect to the Obligations owing to the Administrative  Agent and
the other Lender  Parties or (g) amend this Section 9.01;  and provided  further
that no amendment,  waiver or consent shall, unless in writing and signed by the
Administrative  Agent in  addition to the  Lenders  required  above to take such
action,  affect  the  rights or duties of the  Administrative  Agent  under this
Agreement or any Note;  provided  further that no  amendment,  waiver or consent
shall,  unless in writing and signed by the Swing Line Bank, the Issuing Bank or
each Lender that has a Competitive Bid Advance outstanding,  as the case may be,
in addition to the Lenders required above to take such action, affect the rights

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or obligations  of the Swing Line Bank, the Issuing Bank or such Lender,  as the
case may be, under this Agreement.

          SECTION 9.02. Notices,  Etc. (a) All notices and other  communications
provided for hereunder shall be in writing (including telecopier  communication)
and mailed,  telecopied,  or delivered  except as otherwise set forth in Section
9.02(b) and in the proviso to this Section 9.02(a),  if to Paxar, PBV, PI or PHK
at its address at care of Paxar  Corporation  105  Corporate  Park Drive,  White
Plains,  New York  10604-3814,  Attention:  John P. Jordan,  Vice  President and
Treasurer,    phone:    (914)   697-6823,    fax:   (914)    697-6896,    email:
john.jordan@paxar.com,  with a copy to  Robert  S.  Stone,  Vice  President  and
General   Counsel,   phone:   (914)  697-6804,   fax:  (914)  697-6860,   email:
bob.stone@paxar.com;  if to any other Borrower,  at its address specified in the
applicable  Credit  Agreement  Supplement;  if to  any  Initial  Lender,  at its
Domestic Lending Office specified  opposite its name on Schedule I hereto; if to
any  other  Lender  Party,  at its  Domestic  Lending  Office  specified  in the
Assignment and Acceptance  pursuant to which it became a Lender Party; and if to
the Administrative Agent, at its address at 540 West Madison Street, Suite 2131,
Chicago, IL 60661-2591,  Attention:  Agency Services,  fax: (312) 992-5157, with
copies to ABN AMRO Bank N.V., 540 West Madison Street,  Suite 2621,  Chicago, IL
60661-2591,        Attention:        Credit        Administration,        email:
stephanie.newell@abnamro.com,  fax: (312) 992-5111 and ABN AMRO Incorporated, 55
East 52nd Street,  New York, NY 10055,  Attention:  David A. Carroll,  Director,
Global   Markets,   phone:   (212)  409-6632,   fax:  (212)   409-6675,   email:
david.carroll@abnamro.com;  or, as to Paxar or the Administrative Agent, at such
other address as shall be  designated  by such party in a written  notice to the
other  parties  and, as to each other party,  at such other  address as shall be
designated  by such  party in a written  notice to Paxar and the  Administrative
Agent,  provided  that  materials  required to be delivered  pursuant to Section
5.01(m)(i) or (ii) shall be delivered to the  Administrative  Agent as specified
in Section  9.02(b) or as  otherwise  specified  by Paxar to the  Administrative
Agent. All such notices and communications shall, when mailed or telecopied,  be
effective when deposited in the mails or telecopied,  respectively,  except that
notices and communications to the  Administrative  Agent pursuant to Article II,
III or VII shall not be effective  until received by the  Administrative  Agent.
Delivery by telecopier of an executed  counterpart of any amendment or waiver of
any  provision  of this  Agreement  or the Notes or of any Exhibit  hereto to be
executed and  delivered  hereunder  shall be effective as delivery of a manually
executed counterpart thereof.

          (b) So  long  as ABN or any of its  Affiliates  is the  Administrative
Agent,  materials  required to be delivered  pursuant to Section  5.01(l)(i) and
(ii) shall be delivered to the Administrative Agent in an electronic medium in a
format acceptable to the Administrative  Agent and the Lenders by e-mail at such
address as is notified from time to time by the  Administrative  Agent to Paxar.
The Borrowers agree that the  Administrative  Agent may make such materials,  as
well as any other written information, documents, instruments and other material
relating to the Borrowers,  any of their  Subsidiaries or any other materials or
matters  relating  to  this  Agreement,  the  Notes  or any of the  transactions
contemplated  hereby  (collectively,  the  "Communications")  available  to  the
Lenders   by  posting   such   notices  on   Intralinks,   "e-disclosure",   the
Administrative  Agent's  internet  delivery  system that is part of Fixed Income
Direct,  Global Fixed Income's  primary web portal,  or a substantially  similar
electronic  system (the  "Platform").  The  Borrowers  acknowledge  that (i) the
distribution of material through an electronic medium is not necessarily  secure

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and that  there  are  confidentiality  and  other  risks  associated  with  such
distribution, (ii) the Platform is provided "as is" and "as available" and (iii)
neither  the  Administrative  Agent  nor  any of  its  Affiliates  warrants  the
accuracy,  adequacy or  completeness of the  Communications  or the Platform and
each expressly disclaims liability for errors or omissions in the Communications
or the  Platform.  No  warranty  of any kind,  express,  implied  or  statutory,
including,  without limitation,  any warranty of merchantability,  fitness for a
particular  purpose,  non-infringement  of third  party  rights or freedom  from
viruses or other code defects, is made by the Administrative Agent or any of its
Affiliates in connection with the Platform.

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

          SECTION  9.03.  No  Waiver;  Remedies.  No  failure on the part of any
Lender  Party  or  the  Administrative  Agent  to  exercise,  and  no  delay  in
exercising,  any right  hereunder  or under any Note  shall  operate as a waiver
thereof; nor shall any single or partial exercise of any such right preclude any
other or  further  exercise  thereof or the  exercise  of any other  right.  The
remedies  herein  provided  are  cumulative  and not  exclusive  of any remedies
provided by law.

          SECTION 9.04.  Costs and  Expenses.  (a) Paxar agrees to pay on demand
all  costs and  expenses  of the  Administrative  Agent in  connection  with the
preparation, execution, delivery, administration,  modification and amendment of
this Agreement,  the Notes,  the other Loan Documents and the other documents to
be delivered hereunder,  including,  without limitation,  (A) all due diligence,
syndication    (including    printing,    distribution   and   bank   meetings),
transportation, computer, duplication, appraisal, consultant, and audit expenses
and (B) the reasonable fees and expenses of counsel for the Administrative Agent
with respect thereto  (including local counsel) and with respect to advising the
Administrative Agent as to its rights and responsibilities under this Agreement.
The  Borrower  further  agrees to pay on demand  all costs and  expenses  of the
Administrative  Agent  and  the  Lender  Parties,  if  any  (including,  without
limitation,  reasonable  counsel  fees and  expenses),  in  connection  with the
enforcement  (whether through  negotiations,  legal proceedings or otherwise) of
this  Agreement,  the Notes and the other  documents to be delivered  hereunder,
including,  without limitation,  reasonable fees and expenses of counsel for the
Administrative Agent and each Lender Party in connection with the enforcement of
rights under this Section 9.04(a).

          (b) Paxar agrees to  indemnify  and hold  harmless the  Administrative
Agent and each Lender  Party and each of their  Affiliates  and their  officers,
directors,  employees,  agents and advisors (each, an "Indemnified  Party") from
and  against any and all  claims,  damages,  losses,  liabilities  and  expenses
(including,  without  limitation,  reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in each
case arising out of or in connection  with or by reason of  (including,  without

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limitation,  in connection with any  investigation,  litigation or proceeding or
preparation of a defense in connection therewith) (i) the Notes, this Agreement,
the other Loan Documents,  any of the  transactions  contemplated  herein or the
actual or proposed  use of the  proceeds  of the  Advances or (ii) the actual or
alleged  presence of Hazardous  Materials on any property of Paxar or any of its
Subsidiaries or any Environmental  Action relating in any way to Paxar or any of
its Subsidiaries,  except to the extent such claim,  damage,  loss, liability or
expense is found in a final,  non-appealable  judgment  by a court of  competent
jurisdiction to have resulted from such Indemnified  Party's gross negligence or
willful  misconduct.  In the  case  of an  investigation,  litigation  or  other
proceeding  to  which  the  indemnity  in this  Section  9.04(b)  applies,  such
indemnity shall be effective  whether or not such  investigation,  litigation or
proceeding is brought by Paxar,  its directors,  shareholders or creditors or an
Indemnified  Party or any other Person or any  Indemnified  Party is otherwise a
party  thereto  and  whether  or not the  transactions  contemplated  hereby are
consummated.   Paxar  also   agrees  not  to  assert  any  claim   against   the
Administrative Agent, any Lender Party, any of their Affiliates, or any of their
respective directors,  officers, employees,  attorneys and agents, on any theory
of liability, for special,  indirect,  consequential or punitive damages arising
out of or otherwise relating to the Notes, this Agreement, any of the other Loan
Documents, any of the transactions contemplated herein or the actual or proposed
use of the proceeds of the Advances.

          (c) If any payment of principal of, or Conversion of, any Eurocurrency
Rate Advance or LIBO Rate Advance is made by a Borrower to or for the account of
a  Lender  Party  other  than on the last day of the  Interest  Period  for such
Advance,  or if any payment of principal of any Swing Line Advance (other than a
Swing Line Advance that is a Prime Rate  Advance) is made by Paxar to or for the
account  of the Swing  Line Bank  other  than on the day on which  Paxar and the
Swing Line Bank had agreed such Swing Line Advance would be payable, as a result
of a payment or  Conversion  pursuant to Section  2.09(d) or (e),  2.11 or 2.13,
acceleration  of the  maturity of the Notes  pursuant to Section 6.01 or for any
other reason,  such Borrower  shall,  upon demand by such Lender (with a copy of
such demand to the Administrative  Agent),  pay to the Administrative  Agent for
the account of such Lender any amounts  required to  compensate  such Lender for
any  additional  losses,  costs or expenses  that it may  reasonably  incur as a
result of such payment or Conversion,  including,  without limitation,  any loss
(including loss of anticipated  profits),  cost or expense incurred by reason of
the  liquidation  or  reemployment  of deposits  or other funds  acquired by any
Lender to fund or maintain such Advance.

          (d) Without  prejudice to the  survival of any other  agreement of the
Borrowers  hereunder,  the agreements and obligations of the Borrowers contained
in Sections 2.12,  2.15 and 9.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.

          SECTION 9.05. Right of Set-off. Upon (i) the occurrence and during the
continuance  of any Event of Default  and (ii) the making of the  request or the
granting  of  the  consent   specified  by  Section   6.01  to   authorize   the
Administrative  Agent to  declare  the Notes  due and  payable  pursuant  to the
provisions  of Section  6.01,  each Lender Party and each of its  Affiliates  is
hereby  authorized  at any time and from  time to time,  to the  fullest  extent
permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other indebtedness at

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any time owing by such Lender  Party or such  Affiliate  to or for the credit or
the  account  of a  Borrower  against  any  and  all of the  obligations  of the
Borrowers now or hereafter  existing  under this Agreement and the Notes held by
such Lender  Party,  whether or not such Lender Party shall have made any demand
under  this  Agreement  or  such  Note  and  although  such  obligations  may be
unmatured.  Each Lender  Party agrees  promptly to notify the relevant  Borrower
after any such set-off and  application,  provided that the failure to give such
notice shall not affect the validity of such set-off and application. The rights
of each Lender  Party and its  Affiliates  under this Section are in addition to
other  rights and  remedies  (including,  without  limitation,  other  rights of
set-off) that such Lender Party and its Affiliates may have.

          SECTION 9.06. Binding Effect. This Agreement shall become effective as
provided in Section 3.01 and  thereafter  shall be binding upon and inure to the
benefit of the  Borrowers,  the  Administrative  Agent and each Lender Party and
their respective successors and assigns,  except that no Borrower shall have the
right to assign its rights  hereunder or any interest  herein  without the prior
written consent of the Lender Parties.

          SECTION 9.07. Assignments,  Designations and Participations.  (a) Each
Lender (other than the Designated Bidders) may assign to one or more Persons all
or a portion of its  rights and  obligations  under this  Agreement  (including,
without  limitation,  all or a portion of its  Commitments,  the Advances (other
than Competitive Bid Advances) owing to it and the Note or Notes (other than any
Competitive  Bid  Note)  held by it);  provided,  however,  that (i)  each  such
assignment shall be of a constant,  and not a varying,  percentage of all rights
and obligations  under this Agreement  (other than any right to make Competitive
Bid Advances,  Competitive  Bid Advances owing to it and Competitive Bid Notes),
(ii) except in the case of an assignment to a Person that,  immediately prior to
such  assignment,  was a Lender or an assignment of all of a Lender's rights and
obligations under this Agreement,  the amount of the Commitment of the assigning
Lender being  assigned  pursuant to each such  assignment  (determined as of the
date of the Assignment and Acceptance with respect to such assignment)  shall in
no event be less than  $5,000,000,  (iii)  each such  assignment  shall be to an
Eligible  Assignee,  and (iv) the parties to each such assignment  shall execute
and deliver to the  Administrative  Agent,  for its consent and recording in the
Register,  an Assignment and Acceptance,  together with any Note subject to such
assignment and a processing and recordation fee of $3,500.  Upon such execution,
delivery,  acceptance and recording, from and after the effective date specified
in each Assignment and Acceptance,  (x) the assignee thereunder shall be a party
hereto  and,  to the extent  that  rights and  obligations  hereunder  have been
assigned to it pursuant to such Assignment and  Acceptance,  have the rights and
obligations of a Lender hereunder and (y) the Lender assignor  thereunder shall,
to the extent that rights and  obligations  hereunder  have been  assigned by it
pursuant  to such  Assignment  and  Acceptance,  relinquish  its  rights  and be
released  from its  obligations  under this  Agreement  (and,  in the case of an
Assignment and Acceptance  covering all or the remaining portion of an assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto).  Notwithstanding the foregoing, (I) the Administrative Agent
shall  not be  obligated  to  consent  to an  assignment  hereunder  until it is
satisfied  it has  complied  with all  necessary  "know your  customer" or other
similar  checks under all  applicable  laws and  regulations  in relation to the
assignment to such assignee Lender and (II) an assignment will only be effective
after  performance  by the  Administrative  Agent of all "know your customer" or

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other checks relating to any person that it is required to carry out in relation
to  such  assignment  to  an  assignee  Lender,  the  completion  of  which  the
Administrative  Agent  shall  promptly  notify to the  assigning  Lender and the
assignee Lender.

          (b) By executing  and  delivering an Assignment  and  Acceptance,  the
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties  hereto as follows:  (i) other than as provided
in such Assignment and Acceptance, such assigning Lender makes no representation
or  warranty  and  assumes no  responsibility  with  respect to any  statements,
warranties or  representations  made in or in connection  with this Agreement or
any other  instrument or document  furnished  pursuant  hereto or the execution,
legality, validity,  enforceability,  genuineness,  sufficiency or value of this
Agreement or any other instrument or document  furnished  pursuant hereto;  (ii)
such  assigning  Lender  makes no  representation  or  warranty  and  assumes no
responsibility  with respect to the financial  condition of the Borrowers or any
other Loan Party or the  performance or observance by the Borrowers or any other
Loan Party of any of their  respective  obligations  under this Agreement or any
other  instrument or document  furnished  pursuant  hereto;  (iii) such assignee
confirms that it has received a copy of this Agreement,  together with copies of
the financial statements referred to in Section 4.01 or Section 5.01(o) and such
other  documents and  information  as it has deemed  appropriate to make its own
credit analysis and decision to enter into such Assignment and Acceptance;  (iv)
such assignee will,  independently and without reliance upon the  Administrative
Agent, such assigning Lender or any other Lender and based on such documents and
information as it shall deem  appropriate at the time,  continue to make its own
credit  decisions in taking or not taking action under this Agreement;  (v) such
assignee confirms that it is an Eligible  Assignee;  (vi) such assignee appoints
and  authorizes  the  Administrative  Agent to take such  action as agent on its
behalf and to exercise such powers and  discretion  under this  Agreement as are
delegated to the  Administrative  Agent by the terms hereof,  together with such
powers and  discretion  as are  reasonably  incidental  thereto;  and (vii) such
assignee  agrees that it will perform in accordance  with their terms all of the
obligations  that by the terms of this Agreement are required to be performed by
it as a Lender.

          (c) Upon its receipt of an Assignment  and  Acceptance  executed by an
assigning Lender and an assignee  representing that it is an Eligible  Assignee,
together with any Note or Notes subject to such assignment,  the  Administrative
Agent shall,  if such  Assignment  and  Acceptance  has been completed and is in
substantially  the form of Exhibit C hereto,  (i)  accept  such  Assignment  and
Acceptance,  (ii) record the information  contained  therein in the Register and
(iii) give prompt notice  thereof to Paxar.  Within five Business Days after its
receipt of such notice, the Borrowers, at Paxar's own expense, shall execute and
deliver to the  Administrative  Agent in exchange for the surrendered Note a new
Note to the order of such Eligible Assignee in an amount equal to the Commitment
assumed by it pursuant to such  Assignment and Acceptance  and, if the assigning
Lender  has  retained  a  Commitment  hereunder,  a new Note to the order of the
assigning Lender in an amount equal to the Commitment  retained by it hereunder.
Such new Note or Notes shall be in an  aggregate  principal  amount equal to the
aggregate principal amount of such surrendered Note or Notes, shall be dated the
effective  date of such  Assignment  and  Acceptance  and shall  otherwise be in
substantially the form of Exhibit A-1 or A-2 hereto, as the case may be.

          (d) Each Lender (other than the Designated  Bidders) may designate one
or more banks or other entities to have a right to make Competitive Bid Advances
as a Lender pursuant to Section 2.03; provided, however, that (i) no such Lender

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shall be entitled to make more than one such designation,  (ii) each such Lender
making  one or  more  of  such  designations  shall  retain  the  right  to make
Competitive Bid Advances as a Lender  pursuant to Section 2.03,  (iii) each such
designation  shall be to a  Designated  Bidder and (iv) the parties to each such
designation  shall  execute and  deliver to the  Administrative  Agent,  for its
acceptance  and recording in the Register,  a Designation  Agreement.  Upon such
execution, delivery, acceptance and recording, from and after the effective date
specified in each  Designation  Agreement,  the designee  thereunder  shall be a
party hereto with a right to make  Competitive Bid Advances as a Lender pursuant
to Section 2.03 and the obligations related thereto.

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

          (f)  Upon  its  receipt  of  a  Designation  Agreement  executed  by a
designating  Lender and a designee  representing that it is a Designated Bidder,
the Administrative Agent shall, if such Designation Agreement has been completed
and  is  substantially  in the  form  of  Exhibit  D  hereto,  (i)  accept  such
Designation  Agreement,  (ii) record the  information  contained  therein in the
Register and (iii) give prompt notice thereof to Paxar.

          (g) The Administrative Agent shall maintain at its address referred to
in Section 9.02 a copy of each  Assignment and  Acceptance and each  Designation
Agreement  delivered to and accepted by it and a register for the recordation of
the names and  addresses  of the  Lender  Parties  and,  with  respect to Lender
Parties other than Designated  Bidders,  the Commitment of, and principal amount
of the Advances owing to, each Lender Party from time to time (the  "Register").
The entries in the Register  shall be  conclusive  and binding for all purposes,

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absent  manifest  error,  and each Borrower,  the  Administrative  Agent and the
Lender Parties may treat each Person whose name is recorded in the Register as a
Lender Party hereunder for all purposes of this Agreement. The Register shall be
available for  inspection by the Borrowers or any Lender Party at any reasonable
time and from time to time upon reasonable prior notice.

          (h) The  Issuing  Bank may assign to an Eligible  Assignee  all of its
rights  and  obligations  under  the  undrawn  portion  of its  Letter of Credit
Commitment  at any time;  provided,  however,  that (i) except in the case of an
assignment to a Person that immediately  prior to such assignment was an Issuing
Bank or an assignment of all of an Issuing Bank's rights and  obligations  under
this Agreement,  the amount of the Letter of Credit  Commitment of the assigning
Issuing Bank being assigned  pursuant to each such assignment  (determined as of
the date of the Assignment and Acceptance with respect to such assignment) shall
in no event be less than the undrawn portion of the Letter of Credit  Commitment
at such time,  (ii) each such  assignment  shall be to an Eligible  Assignee and
(iii) the  parties to each such  assignment  shall  execute  and  deliver to the
Administrative  Agent,  for its  acceptance  and recording in the  Register,  an
Assignment and  Acceptance,  together with a processing and  recordation  fee of
$3,500.

          (i) Each Lender Party may sell  participations to one or more banks or
other  entities  (other than Paxar or any of its  Affiliates)  in or to all or a
portion of its rights and obligations under this Agreement  (including,  without
limitation,  all or a portion of its  Commitments,  the Advances owing to it and
the Note or Notes held by it); provided,  however,  that (i) such Lender Party's
obligations under this Agreement (including, without limitation, its Commitments
to the Borrower hereunder) shall remain unchanged,  (ii) such Lender Party shall
remain solely  responsible  to the other parties  hereto for the  performance of
such  obligations,  (iii) such Lender  Party shall remain the holder of any such
Note for all purposes of this Agreement,  (iv) the Borrowers, the Administrative
Agent and the other Lender  Parties  shall  continue to deal solely and directly
with such  Lender  Party in  connection  with such  Lender  Party's  rights  and
obligations  under  this  Agreement  and  (v)  no  participant  under  any  such
participation  shall have any right to approve  any  amendment  or waiver of any
provision  of this  Agreement  or any Note or any other  Loan  Document,  or any
consent to any departure by the Borrowers  therefrom,  except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest on,
the Notes or any fees or other amounts  payable  hereunder,  in each case to the
extent subject to such participation, or postpone any date fixed for any payment
of principal of, or interest on, the Notes or any fees or other amounts  payable
hereunder, in each case to the extent subject to such participation.

          (j)  Any  Lender  Party  may,  in  connection   with  any  assignment,
designation   or   participation   or  proposed   assignment,   designation   or
participation pursuant to this Section 9.07, disclose to the assignee,  designee
or participant or proposed  assignee,  designee or participant,  any information
relating to the Borrowers or any other Loan Party furnished to such Lender Party
by or on behalf of the Borrowers;  provided that,  prior to any such disclosure,
the  assignee,  designee  or  participant  or  proposed  assignee,  designee  or
participant  shall agree to preserve  the  confidentiality  of any  Confidential
Information relating to the Borrowers received by it from such Lender.

                                       78

<PAGE>

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

          SECTION 9.08.  Confidentiality.  Neither the Administrative  Agent nor
any Lender Party shall disclose any Confidential Information to any other Person
without the consent of Paxar,  other than (a) to the  Administrative  Agent's or
such Lender Party's Affiliates and their officers, directors,  employees, agents
and advisors and, as contemplated by Section  9.07(j),  to actual or prospective
assignees  and  participants,  and then  only on a  confidential  basis,  (b) as
required by any law, rule or regulation or judicial  process,  (c) to any rating
agency when required by it, provided that,  prior to any such  disclosure,  such
rating  agency  shall   undertake  to  preserve  the   confidentiality   of  any
Confidential  Information  relating  to any  Borrower  received  by it from such
Lender, (d) as requested or required by any state,  federal or foreign authority
or examiner  regulating banks or banking,  (e) to any other Lender Party and (f)
in  connection  with the  exercise of any  remedies by such Lender  Party as set
forth in the Loan Documents.

          SECTION 9.09. No Liability of the Issuing Bank. Each Borrower  assumes
all risks of the acts or  omissions  of any  beneficiary  or  transferee  of any
Letter of Credit with  respect to its use of such Letter of Credit.  Neither the
Issuing Bank nor any of its officers or directors shall be liable or responsible
for:  (a) the use  that  may be made of any  Letter  of  Credit  or any  acts or
omissions of any  beneficiary  or transferee in  connection  therewith;  (b) the
validity,  sufficiency  or  genuineness  of  documents,  or of  any  endorsement
thereon,  even if  such  documents  should  prove  to be in any or all  respects
invalid,  insufficient,  fraudulent  or forged;  (c) payment by the Issuing Bank
against  presentation of documents that do not comply with the terms of a Letter
of Credit,  including failure of any documents to bear any reference or adequate
reference to the Letter of Credit; or (d) any other circumstances  whatsoever in
making or failing to make  payment  under any Letter of Credit,  except that the
relevant  Borrower  shall have a claim against the Issuing Bank, and the Issuing
Bank  shall be liable to such  Borrower,  to the extent of any  direct,  but not
consequential,  damages suffered by such Borrower that such Borrower proves were
caused by (i) the Issuing  Bank's  willful  misconduct  or gross  negligence  in
determining  whether  documents  presented  under any Letter of Credit issued on
account of such  Borrower  comply with the terms of the Letter of Credit or (ii)
the Issuing  Bank's  willful  failure to make lawful  payment  under a Letter of
Credit  issued on account of such  Borrower  after the  presentation  to it of a
draft and certificates  strictly  complying with the terms and conditions of the
Letter of Credit.  In furtherance  and not in limitation of the  foregoing,  the
Issuing  Bank may  accept  documents  that  appear on their face to be in order,
without  responsibility for further  investigation,  regardless of any notice or
information to the contrary.

          SECTION 9.10.  Governing  Law.  This  Agreement and the Notes shall be
governed by, and  construed  in  accordance  with,  the laws of the State of New
York.

          SECTION  9.11.  Execution  in  Counterparts.  This  Agreement  may  be
executed  in any  number of  counterparts  and by  different  parties  hereto in
separate  counterparts,  each of which when so executed shall be deemed to be an

                                       79

<PAGE>

original  and all of which  taken  together  shall  constitute  one and the same
agreement.  Delivery of an  executed  counterpart  of a  signature  page to this
Agreement by  telecopier  shall be effective as delivery of a manually  executed
counterpart of this Agreement.

          SECTION 9.12. Judgment.  (a) Rate of Exchange.  If, for the purpose of
obtaining  judgment in any court, it is necessary to convert a sum due hereunder
(including,  without limitation,  under Article VIII) or under any Note or Notes
in another currency into US Dollars or into a Primary Currency,  as the case may
be, the parties hereto agree, to the fullest extent that they may effectively do
so, that the rate of exchange used shall be that at which,  in  accordance  with
normal  banking  procedures,  a Lender Party could  purchase such other currency
with US  Dollars  or with a  Primary  Currency,  as the case may be, in New York
City,  New  York at the  close  of  business  on the  Business  Day  immediately
preceding the day on which final  judgment is given,  together with any premiums
and costs of exchange payable in connection with such purchase.

          (b)  Indemnity.  The obligation of each Borrower in respect of any sum
due from it to the  Administrative  Agent or any Lender Party hereunder or under
any Note or Notes shall,  notwithstanding  any judgment in a currency other than
US Dollars or a Primary Currency,  as the case may be, be discharged only to the
extent that on the Business Day next  succeeding  receipt by the  Administrative
Agent  or such  Lender  Party  of any sum  adjudged  to be so due in such  other
currency,  the Administrative Agent or such Lender Party may, in accordance with
normal banking procedures,  purchase US Dollars or such Primary Currency, as the
case may be,  with  such  other  currency.  If the US  Dollars  or such  Primary
Currency so purchased are less than the sum originally due to the Administrative
Agent or such  Lender  Party in US Dollars  or in such  Primary  Currency,  each
Borrower agrees, as a separate obligation and notwithstanding any such judgment,
to indemnify  the  Administrative  Agent or such Lender Party against such loss,
and if the US Dollars  or such  Primary  Currency  so  purchased  exceed the sum
originally due to the Administrative  Agent or any Lender Party in US Dollars or
in such Primary Currency,  as the case may be, the Administrative  Agent or such
Lender Party agrees to remit to such Borrower such excess.

          SECTION 9.13. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and  unconditionally  submits,  for itself and its property,  to the
nonexclusive  jurisdiction  of any New York State court or federal  court of the
United States of America  sitting in New York City, and any appellate court from
any  thereof,  in any action or  proceeding  arising  out of or relating to this
Agreement  or the Notes or the  other  Loan  Documents,  or for  recognition  or
enforcement of any judgment,  and each of the parties hereto hereby  irrevocably
and  unconditionally  agrees  that all claims in  respect of any such  action or
proceeding  may be heard and  determined in any such New York State court or, to
the extent  permitted  by law, in such  federal  court.  Each  Borrower  further
irrevocably  consents to the service of process in any action or  proceeding  in
such  courts by the  mailing  thereof by any parties  thereto by  registered  or
certified  mail,  postage  prepaid,  to such  Borrower at its address  specified
pursuant to Section 9.02 or in the Credit  Agreement  Supplement.  Each Borrower
(other than Paxar)  hereby  further  agrees that  service of process in any such
action or  proceeding  brought in any such New York  state  court or in any such
federal  court may be made upon Paxar at its address  specified in Section 9.02,
and each Borrower  (other than Paxar) hereby  irrevocably  appoints Paxar as its
authorized  agent to accept  such  service of  process,  and hereby  irrevocably
agrees  that the  failure  of Paxar to give any  notice of such  service to such
Borrower  shall not  impair or affect  the  validity  of such  service or of any

                                       80

<PAGE>

judgment rendered in any action or proceeding based thereon. Each of the parties
hereto agrees that a final  judgment in any such action or  proceeding  shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law.  Nothing in this Agreement shall affect any
right  that any  party may  otherwise  have to bring  any  action or  proceeding
relating to this Agreement or the Notes in the courts of any jurisdiction.

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

          (c) To the extent that any Borrower  has or hereafter  may acquire any
immunity from the  jurisdiction of any court or from any legal process  (whether
through service or notice,  attachment  prior to judgment,  attachment in aid of
execution,  execution or otherwise) with respect to itself or its property, such
Borrower hereby  irrevocably  waives such immunity in respect of its obligations
under this Agreement and the Notes and the other Loan Documents.

          SECTION 9.14. Know Your Customer Rules. If the  introduction of or any
change in (or in the  interpretation,  administration or application of) any law
or regulation made after the date of this Agreement; any change in the status of
a Loan  Party  after the date of this  Agreement;  or a proposed  assignment  or
transfer  by a  Lender  of any of  its  rights  and/or  obligations  under  this
Agreement to a party that is not a Lender prior to such  assignment or transfer,
obliges the Administrative  Agent or any Lender (or, in the case of Section 9.07
above,  any  prospective  new  Lender) to comply  with "know your  customer"  or
similar   identification   procedures  in  circumstances   where  the  necessary
information is not already  available to it, each Loan Party shall promptly upon
the request of the  Administrative  Agent or any Lender  supply,  or procure the
supply of, such  documentation and other evidence as is reasonably  requested by
the  Administrative  Agent (for itself or on behalf of any Lender) or any Lender
(for  itself or on behalf of any  prospective  new  Lender)  or in order for the
Administrative Agent, such Lender or any prospective new Lender to carry out and
be satisfied it has complied  with all necessary  "know your  customer" or other
similar  checks  under  all  applicable  laws and  regulations  pursuant  to the
transactions contemplated in the Loan Documents.

          Each Lender  shall  promptly  upon the  request of the  Administrative
Agent supply, or procure the supply of, such documentation and other evidence as
is reasonably  requested by the  Administrative  Agent (for itself) in order for
the Administrative  Agent to carry out and be satisfied it has complied with all
necessary "know your customer" or other similar checks under all applicable laws
and regulations pursuant to the transactions contemplated in the Loan Documents.

          SECTION  9.15.  Patriot Act Notice.  Each Lender  Party and each Agent
(for  itself and not on behalf of any Lender  Party)  hereby  notifies  the Loan
Parties that pursuant to the  requirements of the Patriot Act, it is required to
obtain,  verify and record  information  that identifies each Loan Party,  which

                                       81

<PAGE>

information  includes  the  name  and  address  of such  Loan  Party  and  other
information  that will allow such Lender Party or such Agent, as applicable,  to
identify  such Loan Party in  accordance  with the Patriot  Act.  Each  Borrower
shall,  and shall  cause  each of its  Subsidiaries  to,  provide  to the extent
commercially  reasonable,   such  information  and  take  such  actions  as  are
reasonably  requested  by any Agents or any Lender  Party in order to assist the
Agents and the Lender Parties in maintaining compliance with the Patriot Act.

          SECTION  9.16.  Waiver  of  Jury  Trial.  Each of the  Borrowers,  the
Administrative  Agent and the Lender Parties hereby irrevocably waives all right
to trial by jury in any action,  proceeding or  counterclaim  (whether  based on
contract, tort or otherwise) arising out of or relating to this Agreement or the
Notes or the other Loan Documents or the actions of the Administrative  Agent or
any Lender Party in the negotiation, administration,  performance or enforcement
thereof.

                [Balance of this page left intentionally blank.]

                                       82

<PAGE>

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

                                       PAXAR CORPORATION

                                       By /s/ John P. Jordan
                                          --------------------------------------
                                              John P. Jordan
                                          Title: V.P. & Treasurer
                                                --------------------------------

                                       PAXAR B.V.

                                       By /s/ John P. Jordan
                                          --------------------------------------
                                              John P. Jordan
                                          Title: V.P. & Treasurer
                                                 -------------------------------

                                       PAXAR ITALIA SRL

                                       By /s/ John P. Jordan
                                          --------------------------------------
                                             John P. Jordan
                                          Title: V.P. & Treasurer
                                                 -------------------------------

                                       PAXAR FAR EAST LIMITED

                                       By /s/ John P. Jordan
                                          --------------------------------------
                                              John P. Jordan
                                          Title: V.P. & Treasurer
                                                --------------------------------

                                       ABN AMRO BANK N.V.,
                                       as Administrative Agent

                                       By /s/ Eric Oppenheimer
                                          --------------------------------------
                                              Eric Oppenheimer
                                          Title: Director
                                          --------------------------------------

                                       By /s/ Ruth E. Molina
                                          --------------------------------------
                                              Ruth E. Molina
                                          Title: Associate
                                                --------------------------------

                                       83

<PAGE>

                                       ABN AMRO BANK N.V.,
                                       as Initial Issuing Bank

                                       By /s/ Eric Oppenheimer
                                          --------------------------------------
                                              Eric Oppenheimer
                                          Title: Director
                                                --------------------------------

                                       By /s/ Ruth E. Molina
                                          --------------------------------------
                                              Ruth E. Molina
                                          Title: Associate
                                                --------------------------------

                                       ABN AMRO BANK N.V.,
                                       as Initial Lender

                                       By /s/ Eric Oppenheimer
                                          --------------------------------------
                                              Eric Oppenheimer
                                          Title: Director
                                                --------------------------------

                                       By /s/ Ruth E. Molina
                                          --------------------------------------
                                              Ruth E. Molina
                                          Title: Associate
                                                --------------------------------

                                       BANK OF AMERICA, N.A.,
                                       as Initial Lender

                                       By /s/ Richard Williams
                                          --------------------------------------
                                              Richard Williams
                                          Title:Credit Products Officer
                                                --------------------------------

                                       HSBC BANK USA, NATIONAL ASSOCIATION,
                                       as Initial Lender

                                       By /s/ Patricia Tostanoski
                                          --------------------------------------
                                              Patricia Tostanoski
                                          Title: Vice President
                                                --------------------------------

                                       84

<PAGE>

                                       SUNTRUST BANK,
                                       as Initial Lender

                                       By /s/ Heidi M. Khambatta
                                          --------------------------------------
                                              Heidi M. Khambatta
                                          Title: Director
                                                 -------------------------------

                                       THE BANK OF NEW YORK,
                                       as Initial Lender

                                       By /s/ Michael M. Dwyer
                                          --------------------------------------
                                              Michael M. Dwyer
                                          Title: Vice President
                                                --------------------------------

                                       CITIBANK, N.A.,
                                       as Initial Lender

                                       By /s/ William McAndrew
                                          --------------------------------------
                                              William McAndrew
                                          Title: Vice President
                                                --------------------------------

                                       JPMORGAN CHASE BANK, N.A.,
                                       as Initial Lender

                                       By /s/ Florence Reap
                                          --------------------------------------
                                              Florence Reap
                                          Title: Vice President
                                          --------------------------------------

                                       WACHOVIA BANK, NATIONAL ASSOCIATION, as
                                       Initial Lender

                                       By /s/ Steve Forbes
                                          --------------------------------------
                                              Steve Forbes
                                          Title: Vice President

                                       85

<PAGE>

                                       ABM AMRO BANK N.V., Milan
                                       as PI Lender

                                       By /s/ Eric Oppenheimer
                                          --------------------------------------
                                              Eric Oppenheimer
                                          Title: Director
                                                --------------------------------

                                       By /s/ Ruth E. Molina
                                          --------------------------------------
                                              Ruth E. Molina

                                       86

<PAGE>

                                                                      SCHEDULE I

                            LENDER PARTY INFORMATION

ABN AMRO Bank N.V.
Domestic Lending Office:
------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Eurocurrency Lending Office:
----------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Bank of America N.A.
Domestic Lending Office:
------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Eurocurrency Lending Office:
----------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

                                                                      Schedule I
                                       1

<PAGE>

HSBC Bank USA, National Association
Domestic Lending Office:
------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Eurocurrency Lending Office:
----------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

SunTrust Bank
Domestic Lending Office:
------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Eurocurrency Lending Office:
----------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

                                                                      Schedule I
                                       2

<PAGE>

The Bank of New York
Domestic Lending Office:
------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Eurocurrency Lending Office:
----------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Citibank, N.A.
Domestic Lending Office:
------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Eurocurrency Lending Office:
----------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

                                                                      Schedule I
                                       3

<PAGE>

JPMorgan Chase Bank, N.A.
-------------------------
Domestic Lending Office:
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Eurocurrency Lending Office:
----------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Wachovia Bank, National Association
Domestic Lending Office:
------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

Eurocurrency Lending Office:
----------------------------
[Address]

Attention:
          ---------------------
Telephone:
          ---------------------
Telecopier:
           --------------------
Account No.:
            -------------------

                                                                      Schedule I
                                       4

<PAGE>

                                                                     SCHEDULE II

                                   COMMITMENTS

----------------------------------------------------------- --------------------
                                                                Revolving
                           Lender                           Credit A Commitment
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
ABN AMRO BANK, N.V.
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
BANK OF AMERICA, N.A.
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
HSBC BANK USA, NATIONAL ASSOCIATION
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
SUNTRUST BANK
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
THE BANK OF NEW YORK
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
CITIBANK, N.A.
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
JPMORGAN CHASE BANK, N.A.
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
WACHOVIA BANK, NATIONAL ASSOCIATION
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
                                                     TOTAL
----------------------------------------------------------- --------------------

----------------------------------------------------------- --------------------
                                                                Revolving
                           Lender                           Credit B Commitment
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
ABN AMRO BANK, N.V.
----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------

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

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

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

----------------------------------------------------------- --------------------
----------------------------------------------------------- --------------------
                                                     TOTAL
----------------------------------------------------------- --------------------

                                                                     Schedule II
                                       1

<PAGE>

                                                                SCHEDULE 2.01(c)

                           Existing Letters of Credit

      Beneficiary                LC Number         Amount       Maturity Date
---------------------------- ---------------- -------------- -------------------

Chair Workers' Comp.         T00000001091810    $872,000.00  January 20, 2006
Liberty Mutual Insurance     T00000001280773    $227,700.00  July 1, 2006
Eastridge Properties         T00000001312958    $182,766.38  March 1, 2006
Zurich American Insurance    T00000001389709    $550,000.00  January 1, 2006
Zurich American Insurance    T000000064125134   $260,000.00  January 1, 2006

                                       Total: $2,092,466.38

                                                                Schedule 2.01(c)
                                       1

<PAGE>

                                                                   SCHEDULE 2.08

                              ADDITIONAL COST RATE

1.   The mandatory cost  ("Mandatory  Cost") is an addition to the interest rate
     to compensate  Lenders for the cost of compliance with (a) the requirements
     of the Bank of England  and/or the  Financial  Services  Authority  (or, in
     either  case,  any  other  authority  which  replaces  all  or  any  of its
     functions) or (b) the requirements of the European Central Bank.

2.   On  the  first  day  of  each  Interest  Period  (or as  soon  as  possible
     thereafter) the Administrative Agent shall calculate, as a percentage rate,
     a rate (the "Additional Cost Rate") for each Lender, in accordance with the
     paragraphs  set out below.  The  Mandatory  Cost will be  calculated by the
     Administrative  Agent as a weighted average of the Lenders' Additional Cost
     Rates  (weighted in  proportion  to the  percentage  participation  of each
     Lender in the relevant  Advance) and will be expressed as a percentage rate
     per annum.

3.   The Additional Cost Rate for any Lender lending from an Applicable  Lending
     Office in a Participating  Member State will be the percentage  notified by
     that Lender to the Administrative  Agent. This percentage will be certified
     by  that  Lender  in its  notice  to  the  Administrative  Agent  to be its
     reasonable  determination  of the cost  (expressed  as a percentage of that
     Lender's  participation  in all Advances made from that Applicable  Lending
     Office) of complying with the minimum reserve  requirements of the European
     Central Bank in respect of loans made from that Applicable Lending Office.

4.   The Additional Cost Rate for any Lender lending from an Applicable  Lending
     Office in the United Kingdom will be calculated by the Administrative Agent
     as follows:

          E x 0.001
          ---------  per cent. per annum
             300

Where:

     E    is designed to compensate  Lenders for amounts  payable under the Fees
          Rules and is calculated by the Administrative  Agent as being the most
          recent rate of charge of the Reference  Office pursuant to paragraph 6
          below and expressed in pounds per (pound)1,000,000.

5.   For the purposes of this Schedule:

     (a)  "Eligible  Liabilities" and "Special Deposits" have the meanings given
          to them from time to time under or pursuant to the Bank of England Act
          1998 or (as may be appropriate) by the Bank of England;

     (b)  "Fees  Rules"  means the rules on periodic  fees  contained in the FSA
          Supervision  Manual or such other law or regulation as may be in force
          from time to time in respect of the payment of fees for the acceptance
          of deposits;

                                                                   Schedule 2.08
                                       1

<PAGE>

     (c)  "Fee Tariffs" means the fee tariffs  specified in the Fees Rules under
          the activity group A.1 Deposit acceptors  (ignoring the minimum fee or
          zero rated fee  required  pursuant  to the Fees Rules but taking  into
          account any applicable discount rate);

     (d)  "Reference   Office"  means  the   principal   London  office  of  the
          Administrative Agent.

     (e)  "Tariff  Base" has the meaning  given to it in, and will be calculated
          in accordance with, the Fees Rules.

6.   The rate of charge (the "Rate of Charge")  payable by the Reference  Office
     shall  be the  rate  of  charge  payable  by the  Reference  Office  to the
     Financial  Services  Authority pursuant to the Fees Rules in respect of the
     relevant financial year of the Financial Services Authority (calculated for
     this  purpose  by the  Reference  Office  as being the  average  of the Fee
     Tariffs  applicable to the Reference  Office for that  financial  year) and
     expressed  in  pounds  per  (pound)1,000,000  of  the  Tariff  Base  of the
     Reference Office

7.   Each Lender shall  supply any  information  required by the  Administrative
     Agent  for  the  purpose  of  calculating  its  Additional  Cost  Rate.  In
     particular, but without limitation,  each Lender shall supply the following
     information on or prior to the date on which it becomes a Lender:

     (a)  the jurisdiction of its Applicable Lending Office; and

     (b)  any other information the Administrative  Agent may reasonably require
          for such purpose.

     Each Lender shall promptly notify the Administrative Agent of any change to
     the information provided by it pursuant to this paragraph.

                                                                   Schedule 2.08
                                       2

<PAGE>

                                SCHEDULE 4.01(c)

                                                                Schedule 4.01(c)
                                       1

<PAGE>

                                SCHEDULE 4.01(f)

                                                                Schedule 4.01(f)
                                       1

<PAGE>

                                SCHEDULE 4.01(i)

                                                                Schedule 4.01(i)
                                       1

<PAGE>

                                SCHEDULE 5.02(g)

                                                                Schedule 5.02(g)
                                       1

<PAGE>

                                                           EXHIBIT A-1 - FORM OF
                                                                REVOLVING CREDIT

                                                                 PROMISSORY NOTE

U.S. _______________                           Dated:  November __, 2005

          FOR  VALUE  RECEIVED,   the   undersigned,   [NAME  OF  BORROWER],   a
_________________________  corporation (the "Borrower"),  HEREBY PROMISES TO PAY
to the order of _________________________  (the "Lender") for the account of its
Applicable Lending Office (as defined in the Credit Agreement referred to below)
the  aggregate  principal  amount of the Revolving  Credit  Advances (as defined
below)  owing to the Lender by the  Borrower  pursuant  to the Credit  Agreement
dated as of November __, 2005 among the Borrower, [Paxar Corporation,] the other
Borrowers party thereto, the Lender and certain other lenders party thereto, and
ABN AMRO Bank  N.V.,  as  Administrative  Agent for the  Lender  and such  other
lenders (as amended or modified from time to time, the "Credit  Agreement";  the
terms defined  therein being used herein as therein  defined) on the Termination
Date.

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

          Both  principal and interest are payable in lawful money of the United
States of America or in the Primary Currency,  as appropriate,  to ABN AMRO Bank
N.V., as Administrative  Agent, at the office of the Administrative Agent as the
Administrative  Agent  shall  notify  the  Borrower,  in same  day  funds.  Each
Revolving  Credit  Advance  owing to the Lender by the Borrower  pursuant to the
Credit Agreement,  and all payments made on account of principal thereof,  shall
be recorded by the Lender and,  prior to any  transfer  hereof,  endorsed on the
grid attached hereto which is part of this Promissory Note.

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

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

                                                                     EXHIBIT A-1
                                       1

<PAGE>

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

                                   [NAME OF BORROWER]

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

                                                                     EXHIBIT A-1
                                       2

<PAGE>

                       ADVANCES AND PAYMENTS OF PRINCIPAL

------------ ----------- ----------------------- ---------------- ---------
             Amount of    Amount of Principal    Unpaid Principal  Notation
    Date      Advance       Paid or Prepaid           Balance      Made By
------------ ----------- ----------------------- ---------------- ---------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                                                     EXHIBIT A-1
                                       3

<PAGE>

                                                           EXHIBIT A-2 - FORM OF
                                                                 COMPETITIVE BID
                                                                 PROMISSORY NOTE

U.S. _______________                         Dated:  _______________, 200_

          FOR VALUE RECEIVED,  the undersigned,  PAXAR  CORPORATION,  a New York
corporation   ("Paxar"),   HEREBY   PROMISES  TO  PAY  to  -----  the  order  of
_________________________  (the  "Lender")  for the  account  of its  Applicable
Lending Office (as defined in the Credit Agreement dated as of November __, 2005
among Paxar,  the other  Borrowers  party thereto,  the Lender and certain other
lenders party thereto,  and ABN AMRO Bank N.V., as Administrative  Agent for the
Lender and such other  lenders (as amended or  modified  from time to time,  the
"Credit  Agreement";  the terms  defined  therein  being used  herein as therein
defined)),   on   _______________,   200_,   the   principal   amount   of  U.S.
_______________.

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

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

     Interest Payment Date: _____ and _____.

          Both  principal and interest are payable in lawful money of the United
States of  America  to ABN AMRO Bank N.V.  for the  account of the Lender at the
office of ABN AMRO Bank N.V., at _________________________ in same day funds.

          This  Promissory  Note is one of the Competitive Bid Notes referred to
in,  and is  entitled  to the  benefits  of, the  Credit  Agreement.  The Credit
Agreement,  among other things,  contains  provisions  for  acceleration  of the
maturity hereof upon the happening of certain stated events.  The obligations of
Paxar  under  this  Promissory  Note and the  Credit  Agreement  are  secured by
collateral as provided therein.

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

                                                                     EXHIBIT A-2
                                       1

<PAGE>

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

                                     PAXAR CORPORATION

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

                                                                     EXHIBIT A-2
                                       2

<PAGE>

                                                           EXHIBIT B-1 - FORM OF
                                                             NOTICE OF BORROWING

ABN AMRO Bank N.V., as Administrative Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
  -------------------------

  -------------------------                           [Date]

          Attention:  _______________

Ladies and Gentlemen:

          The undersigned,  [Name of Borrower],  refers to the Credit Agreement,
dated as of November  __, 2005 (as  amended or modified  from time to time,  the
"Credit  Agreement",  the terms  defined  therein  being used  herein as therein
defined), among [Paxar Corporation],  the undersigned, the other Borrowers party
thereto, certain Lenders party thereto and ABN AMRO Bank N.V., as Administrative
Agent for said Lenders,  and hereby gives you notice,  irrevocably,  pursuant to
Section 2.02 of the Credit  Agreement  that the  undersigned  hereby  requests a
Borrowing  under the Credit  Agreement,  and in that connection sets forth below
the  information  relating  to such  Borrowing  (the  "Proposed  Borrowing")  as
required by Section 2.02(a) of the Credit Agreement:

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

          (ii) The Facility  under which the Proposed  Borrowing is requested is
     the ________ Facility.

          (iii) The Type of Advances comprising the Proposed Borrowing is [Prime
     Rate Advances] [Eurocurrency Rate Advances].

          (iv)   The   aggregate   amount   of   the   Proposed   Borrowing   is
     _______________.

          [(v)  The  initial   Interest  Period  [and  the  currency]  for  each
     Eurocurrency  Rate Advance made as part of the Proposed  Borrowing is _____
     month[s] and [Primary Currency].]

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

          (A) the representations and warranties contained in each Loan Document
     are correct,  before and after giving effect to the Proposed  Borrowing and
     to the application of the proceeds  therefrom,  as though made on and as of
     such date (other than any such representations or warranties that, by their
     terms,  refer to a  specific  date  other  than  the date of such  Proposed
     Borrowing, in which case as of such specific date); and

                                                                     EXHIBIT B-1
                                       1

<PAGE>

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

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

                                         Very truly yours,

                                         [NAME OF BORROWER]

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

                                                                     EXHIBIT B-1
                                       2

<PAGE>

                                                 EXHIBIT B-2 - FORM OF NOTICE OF
                                                       COMPETITIVE BID BORROWING

ABN AMRO Bank N.V., as Administrative Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
  --------------------
  --------------------                   [Date]

          Attention:  _______________

Ladies and Gentlemen:

          The undersigned,  Paxar  Corporation,  refers to the Credit Agreement,
dated as of November  __, 2005 (as  amended or modified  from time to time,  the
"Credit  Agreement",  the terms  defined  therein  being used  herein as therein
defined),  among the  undersigned,  the other Borrowers  party thereto,  certain
Lenders party thereto and ABN AMRO Bank N.V., as  Administrative  Agent for said
Lenders, and hereby gives you notice,  irrevocably,  pursuant to Section 2.03 of
the Credit  Agreement that the  undersigned  hereby  requests a Competitive  Bid
Borrowing  under the Credit  Agreement,  and in that  connection  sets forth the
terms on which such  Competitive  Bid Borrowing (the "Proposed  Competitive  Bid
Borrowing") is requested to be made:

(A)      Date of Competitive Bid Borrowing  ________________________
(B)      Amount of Competitive Bid Borrowing      __________________
(C)      [Maturity Date] [Interest Period]  ________________________
(D)      Interest Rate Basis                ________________________
(E)      Interest Payment Date(s)           ________________________
(F)      ___________________                ________________________
(G)      ___________________                ________________________
(H)      ___________________                ________________________

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

          (a)  the  representations  and  warranties   contained  in  each  Loan
     Document  are  correct,  before  and after  giving  effect to the  Proposed
     Competitive Bid Borrowing and to the application of the proceeds therefrom,
     as though made on and as of such date (other than any such  representations
     or warranties that, by their terms, refer to a specific date other than the
     date of such Proposed  Competitive Bid Borrowing,  in which case as of such
     specific date);

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

                                                                     EXHIBIT B-2
                                       1

<PAGE>

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

          (d) the aggregate amount of the Proposed Competitive Bid Borrowing and
     all Revolving Credit Borrowings and Swing Line Borrowings to be made on the
     same day under the Credit  Agreement is within the aggregate  amount of the
     Unused Revolving Credit Commitments of the Lenders.

          The  undersigned  hereby  confirms that the Proposed  Competitive  Bid
Borrowing is to be made available to it in accordance with Section 2.03(a)(v) of
the Credit Agreement.

                                Very truly yours,

                                PAXAR CORPORATION

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

                                                                     EXHIBIT B-2
                                       2

<PAGE>

                                                             EXHIBIT C - FORM OF
                                                       ASSIGNMENT AND ACCEPTANCE

          Reference  is made to the Credit  Agreement  dated as of November  __,
2005 (as amended or modified from time to time,  the "Credit  Agreement")  among
Paxar  Corporation,  a New York corporation  ("Paxar"),  the other Borrowers (as
defined in the Credit  Agreement) party thereto,  the Lenders (as defined in the
Credit  Agreement)  and ABN AMRO  Bank  N.V.,  as  administrative  agent for the
Lenders (the "Administrative  Agent"). Terms defined in the Credit Agreement are
used herein with the same meaning.

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

          1. The  Assignor  hereby  sells and  assigns to the  Assignee  without
recourse,  and the Assignee hereby  purchases and assumes from the Assignor,  an
interest  in and to the  Assignor's  rights  and  obligations  under the  Credit
Agreement  as of the date  hereof  (other  than in  respect of  Competitive  Bid
Advances and Competitive Bid Notes) equal to the percentage  interest  specified
on Schedule 1 hereto of all outstanding  rights and obligations under the Credit
Agreement (other than in respect of Competitive Bid Advances and Competitive Bid
Notes).  After  giving  effect  to such  sale  and  assignment,  the  Assignee's
Commitments  and the amount of the Advances owing to the Assignee will be as set
forth on Schedule 1 hereto.

          2. The Assignor (i)  represents  and warrants that it is the legal and
beneficial  owner of the interest  being  assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty  and  assumes  no  responsibility   with  respect  to  any  statements,
warranties or  representations  made in or in connection with the Loan Documents
or any other instrument or document  provided pursuant thereto or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security  interest created or purported to
be  created  under or in  connection  with,  the  Loan  Documents  or any  other
instrument or document furnished pursuant thereto; (iii) makes no representation
or  warranty  and  assumes  no  responsibility  with  respect  to the  financial
condition of any Loan Party or the  performance  or observance by any Loan Party
of any of its  obligations  under the Loan Documents or any other  instrument or
document furnished pursuant thereto; and (iv) attaches the Note or Notes held by
the Assignor and requests that the  Administrative  Agent  exchange such Note or
Notes for a new Note or Notes  payable to the order of the Assignee in an amount
equal to the  Commitments  assumed by the Assignee  pursuant hereto or new Notes
payable  to the  order of the  Assignee  in an  amount  equal to the  Commitment
assumed by the Assignee  pursuant  hereto and the Assignor in an amount equal to
the   Commitment   retained  by  the  Assignor   under  the  Credit   Agreement,
respectively, as specified on Schedule 1 hereto.

          3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement,  together  with  copies of the  financial  statements  referred to in
Section 4.01 or  delivered  pursuant to Section  5.01(o)  thereof and such other
documents and  information  as it has deemed  appropriate to make its own credit
analysis and decision to enter into this Assignment and Acceptance;  (ii) agrees
that it will,  independently and without reliance upon the Administrative Agent,

                                                                       EXHIBIT C
                                       1

<PAGE>

the  Assignor  or any  other  Lender  Party  and  based  on such  documents  and
information as it shall deem  appropriate at the time,  continue to make its own
credit  decisions  in taking or not taking  action  under the Credit  Agreement;
(iii) confirms that it is an Eligible Assignee; (iv) appoints and authorizes the
Administrative  Agent to take such action as administrative  agent on its behalf
and to  exercise  such powers and  discretion  under the Loan  Documents  as are
delegated to the Administrative  Agent by the terms thereof,  together with such
powers and discretion as are reasonably  incidental thereto;  (v) agrees that it
will perform in accordance with their terms all of the  obligations  that by the
terms of the Credit  Agreement  are  required to be  performed by it as a Lender
Party; and (vi) attaches any U.S.  Internal Revenue Service forms required under
Section 2.15 of the Credit Agreement.

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

          5. Upon such acceptance and recording by the Administrative  Agent, as
of the Effective Date, (i) the Assignee shall be a party to the Credit Agreement
and, to the extent provided in this  Assignment and Acceptance,  have the rights
and obligations of a Lender Party thereunder and (ii) the Assignor shall, to the
extent provided in this Assignment and Acceptance, relinquish its rights, except
under Section 2.11, 2.15 and 9.04 of the Credit Agreement,  and be released from
its obligations under the Credit Agreement.

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

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

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

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

                                                                       EXHIBIT C
                                        2

<PAGE>

                                   Schedule 1
                                       to
                            Assignment and Acceptance

Percentage interest assigned:

     %
-----

Assignee's Commitment:

----------

Aggregate outstanding principal amount of Revolving Credit Advances assigned:

----------

Principal amount of Revolving Credit Note payable to Assignee:

----------

Principal amount of Revolving Credit Note payable to Assignor:

----------

Effective Date*:  _______________, 200_

                         [NAME OF ASSIGNOR], as Assignor

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

                          Dated: _______________, 200_

                         [NAME OF ASSIGNEE], as Assignee

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

                          Dated: _______________, 200_

                            Domestic Lending Office:
                                    [Address]

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

                                                                       EXHIBIT C
                                        1

<PAGE>

                          Eurocurrency Lending Office:
                                    [Address]

Accepted [and Approved]* this
__________ day of _______________, 200_

ABN AMRO BANK N.V., as Administrative Agent

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

[Approved this __________ day
of _______________, 200_]**

PAXAR CORPORATION

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

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

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

                                                                       EXHIBIT C
                                        2

<PAGE>

                                                             EXHIBIT D - FORM OF
                                                           DESIGNATION AGREEMENT

                           Dated _______________, 200_

          Reference  is made to the Credit  Agreement  dated as of November  __,
2005 (as amended or modified from time to time,  the "Credit  Agreement")  among
Paxar  Corporation,  a New York corporation  ("Paxar"),  the other Borrowers (as
defined in the Credit  Agreement) party thereto,  the Lenders (as defined in the
Credit  Agreement)  and ABN AMRO  Bank  N.V.,  as  agent  for the  Lenders  (the
"Administrative  Agent").  Terms defined in the Credit Agreement are used herein
with the same meaning.

          _______________________  (the "Designor") and  _______________________
(the "Designee") agree as follows: -------- --------

          1. The  Designor  hereby  designates  the  Designee,  and the Designee
hereby  accepts  such  designation,  to have a right  to  make  Competitive  Bid
Advances pursuant to Section 2.03 of the Credit Agreement.

          2. The  Designor  makes no  representation  or warranty and assumes no
responsibility with respect to (i) any statements, warranties or representations
made in or in  connection  with the Loan  Documents or any other  instrument  or
document  provided  pursuant  thereto  or  the  execution,  legality,  validity,
enforceability,  genuineness,  sufficiency  or value  of, or the  perfection  or
priority of any lien or security  interest  created or  purported  to be created
under or in  connection  with,  the Loan  Documents or any other  instrument  or
document furnished pursuant thereto and (ii) the financial condition of any Loan
Party  or  the  performance  or  observance  by  any  Loan  Party  of any of its
obligations  under  the Loan  Documents  or any  other  instrument  or  document
furnished pursuant thereto.

          3. The Designee (i) confirms that it has received a copy of the Credit
Agreement,  together  with  copies of the  financial  statements  referred to in
Section 4.01 or  delivered  pursuant to Section  5.01(o)  thereof and such other
documents and  information  as it has deemed  appropriate to make its own credit
analysis and decision to enter into this Designation Agreement; (ii) agrees that
it will,  independently and without reliance upon the Administrative  Agent, the
Designor or any other Lender Party and based on such  documents and  information
as it shall  deem  appropriate  at the  time,  continue  to make its own  credit
decisions  in taking or not  taking  action  under the Credit  Agreement;  (iii)
confirms  that it is a  Designated  Bidder;  (iv)  appoints and  authorizes  the
Administrative  Agent to take such action as agent on its behalf and to exercise
such powers and  discretion  under the Loan  Documents  as are  delegated to the
Administrative  Agent by the  terms  thereof,  together  with  such  powers  and
discretion as are  reasonably  incidental  thereto;  and (v) agrees that it will
perform in accordance with their terms all of the obligations which by the terms
of the Credit  Agreement  are  required to be  performed  by it as a  Designated
Bidder.

          4.  Following  the  execution  of this  Designation  Agreement  by the
Designor and its Designee,  it will be delivered to the Administrative Agent for
acceptance  and recording by the  Administrative  Agent.  The effective date for
this  Designation  Agreement  (the  "Effective  Date")  shall  be  the  date  of

                                                                       EXHIBIT D
                                       1

<PAGE>

acceptance hereof by the Administrative Agent, unless otherwise specified on the
signature page hereto.

          5. Upon such acceptance and recording by the Administrative  Agent, as
of the Effective  Date,  the Designee  shall be a party to the Credit  Agreement
with a right to make Competitive Bid Advances as a Designated Bidder pursuant to
Section 2.03 of the Credit  Agreement and the rights and obligations of a Lender
related thereto.

          6. This  Designation  Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

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

          IN WITNESS  WHEREOF,  the Designor  and the Designee  have caused this
Designation Agreement to be executed by their officers thereunto duly authorized
as of the date first above written.

Effective Date*:      _______________, 200__

                                     [NAME OF DESIGNOR],
                                          as Designor

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

                                     [NAME OF DESIGNEE],
                                          as Designee

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

                                     Applicable Lending Office
                                     (and address for notices):

                                              [Address]

------------------
*    This date should be no earlier than five  Business  Days after the delivery
     of this Designation Agreement ot the Administrative Agent.

                                                                       EXHIBIT D
                                       2

<PAGE>

Accepted this ____ day
of _______________, 200_

ABN AMRO BANK N.V., as Administrative Agent

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

                                                                       EXHIBIT D
                                        3

<PAGE>

                                                     EXHIBIT E - FORM OF OPINION
                                                            OF COUNSEL FOR PAXAR

                                                   November ___, 2005

To the Lender Parties party to
     the Credit Agreement
     referred to below, and to
     ABN AMRO Bank N.V., as
     Administrative Agent

          Re:      Paxar Corporation Credit Agreement

Ladies and Gentlemen:

          As Vice President,  General  Counsel & Secretary of Paxar  Corporation
("Paxar"),  I have been  requested  to render  this  opinion to you  pursuant to
Section 3.01(g)(v) of the Credit Agreement,  dated as of November ___, 2005 (the
"Credit Agreement") among the Company,  certain subsidiaries thereof, the Lender
Parties thereto, ABN AMRO Bank N.V. ("ABN"), as Initial Issuing Bank, ABN as the
Swing  Line  Bank,  SunTrust  Bank and The Bank of New York,  as  Co-Syndication
Agents, HSBC Bank USA, National Association,  as Documentation Agent, and ABN as
Administrative  Agent for said Lender  Parties.  I have acted as Vice President,
Secretary and General Counsel of the Company since 1997.  Capitalized terms used
herein  without  definition  shall  leave  the  same  meaning  as in the  Credit
Agreement.

          In rendering this opinion,  I have reviewed originals or copies of the
Loan Documents and have made such legal and factual  examinations and inquiries,
including an examination of originals or copies identified to my satisfaction as
true  copies,  of such  corporate  records,  agreements,  instruments  and other
documents  as I have deemed  necessary  or  appropriate  for the purpose of this
opinion.

          I  am   admitted   to   practice   in  the  states  of  New  York  and
_______________  and express no opinion on the laws of any other jurisdiction or
on any matters  governed by such laws,  except for the federal law of the United
States of America and the General Corporation Law of the State of Delaware.

          For purposes of this opinion, I have assumed:

               (i)  the genuineness of all signatures,

               (ii) the authenticity of the originals of the documents submitted
                    to me,

                                                                       EXHIBIT E
                                       1

<PAGE>

               (iii) the  conformity  to authentic  originals  of any  documents
                    submitted to me as copies,

               (iv) that:

                    (a) each Non-US  Borrower is a corporation  duly  organized,
          validly   existing  and  in  good  standing  in  its  jurisdiction  of
          organization,

                    (b) each Non-US Borrower has full power to execute,  deliver
          and perform, and has duly executed and delivered the Loan Documents to
          which it is a party,

                    (c) the execution,  delivery and  performance by each Non-US
          Borrower  of the  Loan  Documents  to  which  it is a  party,  and the
          consummation of the transactions  contemplated  thereby have been duly
          authorized  by all  necessary  action  and do not (I)  contravene  its
          charter or by-laws or other organizational  documents (II) violate any
          applicable  law  (other  than  the  laws of the  State of New York and
          federal laws of the United States of America),  order, writ, judgment,
          injunction,  decree,  determination or award or (III) conflict with or
          result in the breach of or  constitute a default  under any  contract,
          loan agreement,  indenture,  mortgage,  deed of trust,  lease or other
          instrument binding on or affecting it,

                    (d) except with respect to the laws of the State of New York
          and federal laws of the United States of America,  no authorization or
          approval  or other  action  by,  and no notice  to or filing  with any
          governmental  authority or regulatory body or any other third party is
          required for (I) the due execution,  delivery and  performance by each
          Non-US  Borrower of the Loan  Documents  to which it is a party or for
          the consummation of the transactions  contemplated thereby or (II) the
          exercise by the Administrative Agent or any Lender Party of its rights
          under the Loan Documents.

          Based  upon  and  subject  to  the   foregoing   and  subject  to  the
qualifications,  assumptions and limitations set forth herein,  it is my opinion
that:

          1.  Each of Paxar  and each  Subsidiary  Guarantor  (each an  "Opinion
Party,"  and  collectively,   the  "Opinion  Parties")  is  a  corporation  duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of the
jurisdiction of its organization and is duly qualified and in good standing as a
foreign  corporation  in each  other  jurisdiction  in which  it owns or  leases
property or in which the conduct of its business requires it to so qualify or be
licensed except where the failure to so qualify or be licensed is not reasonably
likely to have a material adverse effect on its business,  condition  (financial
or otherwise), operations, performance, properties or prospects.

          2. The  execution,  delivery and  performance by each Opinion Party of
the each  Loan  Document  to which it is a party,  and the  consummation  of the
transactions  contemplated by the Credit  Agreement and the other Loan Documents
are within such Opinion Party's corporate  powers,  have been duly authorized by

                                                                       EXHIBIT E
                                       2

<PAGE>

all necessary  corporate action,  and do not (a) contravene such Opinion Party's
charter or bylaws,  (b)  violate any law  (including,  without  limitation,  the
Securities  Exchange  Act of  1934  and the  Racketeer  Influenced  and  Corrupt
Organizations  Chapter  of the  Organized  Crime  Control  Act of  1970),  rule,
regulation  (including,  without  limitation,  Regulation  X  of  the  Board  of
Governors  of  the  Federal  Reserve  System)  or  any  order,  writ,  judgment,
injunction,  decree,  determination  or award  listed  in the  Certificate,  (c)
conflict  with or result in the breach of, or  constitute a default  under,  any
agreement or  instrument  binding on it (d) result in or require the creation or
imposition  of any Lien upon or with  respect  to any of the  properties  of any
Opinion Party or any of its Subsidiaries.

          3. No  authorization  or approval or other action by, and no notice to
or filing with,  any  governmental  authority or  regulatory  body, or any third
party  that is party to any of the  agreements  and  instruments  listed  in the
Certificate,  is  required  for (a)  the  due  execution,  delivery,  filing  or
performance by any Opinion Party of any Loan Document to which it is a party, or
for  the  consummation  of the  transactions  contemplated  thereby,  or (b) the
exercise by the Administrative Agent or any Lender Party of its rights under the
Loan Documents except for the authorizations,  approvals,  actions,  notices and
filings listed on Schedule  4.01(c) to the Credit  Agreement,  all of which have
been duly obtained, taken, given or made and are in full force and effect.

          4.  To  the  best  of  my  knowledge,   there  is  no  action,   suit,
investigation,  litigation  or  proceeding  affecting  any Loan Party pending or
threatened before any court, governmental agency or arbitrator that (a) would be
reasonably  likely to have a material adverse effect on the business,  condition
(financial or otherwise),  operations,  performance,  properties or prospects of
such  Loan  Party  or  (b)  purports  to  affect  the   legality,   validity  or
enforceability of the Credit Agreement, any Note, any other Loan Document or the
consummation of the transactions contemplated by the Credit Agreement.

          5.  Each  Opinion  Party has duly  executed  and  delivered  each Loan
Document  to which it is a party.  Each Loan  Document  is the legal,  valid and
binding  obligation of each Loan Party  thereto,  enforceable  against such Loan
Party in accordance with its respective terms.

          The  opinion  in  paragraph  5 above is  subject  to (a) the effect of
applicable  bankruptcy,  insolvency,  fraudulent  transfer or other similar laws
relating to creditor  rights'  generally and (b) limitations on the availability
of equitable relief.

                                                                       EXHIBIT E
                                       3

<PAGE>

          A copy of this  opinion  letter may be  delivered by any of you to any
Person that  becomes a Lender Party in  accordance  with the  provisions  of the
Credit Agreement. Any such Lender Party may rely on the opinions expressed above
as if this opinion  letter were  addressed and delivered to such Lender Party on
the date hereof.  This opinion letter is rendered to you in connection  with the
transactions  contemplated by the Loan Documents. This opinion letter may not be
relied upon by you or any Lender Party for any other purpose,  or relied upon by
any other Person, without my prior written consent.

                                      Very truly yours,

                                      Robert S. Stone
                                      Vice President, General Counsel &
                                      Secretary

                                                                       EXHIBIT E
                                       4

<PAGE>

                                                                     EXHIBIT F -
                                                             SUBSIDIARY GUARANTY

                               SUBSIDIARY GUARANTY

     GUARANTY dated November __, 2005 made by each of the Persons listed on the
signature pages hereof (the "Initial Guarantors"); and the Additional Guarantors
(as defined in Section 8(b)) (such Persons, together with the Initial
Guarantors, being collectively referred as the "Guarantors") in favor of the
Lender Parties as defined in the Credit Agreement referred to below.

     PRELIMINARY STATEMENT. The Lender Parties and ABN AMRO Bank N.V., as
Administrative Agent for the Lender Parties, are parties to a Credit Agreement
dated as of November __, 2005 (as amended, supplemented or otherwise modified
from time to time, the "Credit Agreement"; capitalized terms not otherwise
defined herein are used herein as therein defined) with Paxar Corporation, a
Delaware corporation ("Paxar"), and certain Subsidiaries of Paxar. Each of the
Guarantors may receive a portion of the proceeds of the Advances under the
Credit Agreement and will derive substantial direct and indirect benefit from
the transactions contemplated by the Credit Agreement. It is a condition
precedent to the making of Advances and the issuance of Letters of Credit under
the Credit Agreement that each of the Guarantors shall have executed and
delivered this Guaranty.

     NOW, THEREFORE, in consideration of the premises and in order to induce the
Lender Parties to make Advances and to issue Letters of Credit under the Credit
Agreement from time to time, each of the Guarantors hereby agrees as follows:

     Section 1. Guaranty; Limitation of Liability. (a) Each of the Guarantors
hereby absolutely, unconditionally and irrevocably guarantees the punctual
payment when due, whether at stated maturity, by acceleration or otherwise, of
all Obligations of the Borrowers now or hereafter existing under the Loan
Documents, whether for principal, interest, fees, expenses or otherwise (such
Obligations being the "Guaranteed Obligations"), and agrees to pay any and all
expenses (including reasonable counsel fees and expenses) incurred by the
Administrative Agent or any Lender Party in enforcing any rights under this
Guaranty. Without limiting the generality of the foregoing, each Guarantor's
liability shall extend to all amounts that constitute part of the Guaranteed
Obligations and would be owed by the Borrowers to the Administrative Agent or
any Lender Party under the Loan Documents but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving any Borrower.

     (b) Each of the Guarantors, and by its acceptance of this Guaranty, the
Administrative Agent and each of the Lender Parties, hereby confirm that it is
the intention of all such Persons that this Guaranty and the obligations of each
of the Guarantors hereunder not constitute a fraudulent transfer or conveyance
for purposes of the United States Federal Bankruptcy Code, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Act or any similar federal or
state law or similar law in any applicable jurisdiction outside the United
States covering the protection of creditors' rights or the relief of debtors to
the extent applicable to this Guaranty and the obligations of each of the
Guarantors hereunder. To effectuate the foregoing intention, each of the
Guarantors, the Administrative Agent and each of the Lender Parties hereby
irrevocably agree that the Guaranteed Obligations and all of the other
liabilities of each of the Guarantors under this Guaranty shall be limited to
the maximum amount as will, after giving effect to such maximum amount and all
of the other contingent and fixed liabilities of such Guarantor that are
relevant thereunder, and after giving effect to any collections from, any rights
to receive contributions from, or any payments made by or on behalf of, any of
the other Guarantors in respect of the obligations of such other Guarantor under
this Guaranty, result in the Guaranteed Obligations and all of the other
liabilities of each of the Guarantors under this Guaranty not constituting a
fraudulent transfer of conveyance.

                                                                       EXHIBIT F

                                       1
<PAGE>

     Section 2. Guaranty Absolute. Each of the Guarantors guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Loan Documents, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Administrative Agent or any Lender Party with respect thereto. The Obligations
of each of the Guarantors under this Guaranty are independent of the Guaranteed
Obligations or any other Obligations of any other Loan Party under the Loan
Documents, and a separate action or actions may be brought and prosecuted
against any of the Guarantors to enforce this Guaranty, irrespective of whether
any action is brought against any Borrower or any other Loan Party or whether
any Borrower or any other Loan Party is joined in any such action or actions.
The liability of each of the Guarantors under this Guaranty shall be
irrevocable, absolute and unconditional irrespective of, and each of the
Guarantors hereby irrevocably waives any defenses it may now or hereafter have
in any way relating to, any or all of the following:

     (a) any lack of validity or enforceability of any Loan Document or any
agreement or instrument relating thereto;

     (b) any change in the time, manner or place of payment of, or in any other
term of, all or any of the Guaranteed Obligations or any other Obligations of
any other Loan Party under the Loan Documents, or any other amendment or waiver
of or any consent to departure from any Loan Document, including, without
limitation, any increase in the Guaranteed Obligations resulting from the
extension of additional credit to Paxar or any of its Subsidiaries or otherwise;

     (c) any taking, exchange, release or non-perfection of any collateral, or
any taking, release or amendment or waiver of or consent to departure from any
other guaranty, for all or any of the Guaranteed Obligations;

     (d) any manner of application of collateral, or proceeds thereof, to all or
any of the Guaranteed Obligations, or any manner of sale or other disposition of
any collateral for all or any of the Guaranteed Obligations or any other
Obligations of any other Loan Party under the Loan Documents or any other assets
of Paxar or any of its Subsidiaries;

     (e) any change, restructuring or termination of the corporate structure or
existence of Paxar or any of its Subsidiaries;

                                                                       EXHIBIT F

                                       2
<PAGE>

     (f) any failure of any Lender Party to disclose to Paxar or any of the
Guarantors any information relating to the financial condition, operations,
properties or prospects of any Loan Party now or in the future known to any
Lender Party (each of the Guarantors waiving any duty on the part of the Lender
Parties to disclose such information); or

     (g) any other circumstance (including, without limitation, any statute of
limitations) or any existence of or reliance on any representation by the
Administrative Agent or any Lender Party that might otherwise constitute a
defense available to, or a discharge of, any of the Borrowers, any of the
Guarantors or any other guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by any Lender Party or any other Person upon the
insolvency, bankruptcy or reorganization of any Borrower or any other Loan Party
or otherwise, all as though such payment had not been made.

     Section 3. Waivers and Acknowledgments. (a) Each of the Guarantors hereby
waives promptness, diligence, notice of acceptance and any other notice with
respect to any of the Guaranteed Obligations and this Guaranty and any
requirement that the Administrative Agent or any Lender Party protect, secure,
perfect or insure any Lien or any property subject thereto or exhaust any right
or take any action against the Borrowers or any other Person or any Collateral.

     (b) Each of the Guarantors hereby waives any right to revoke this Guaranty,
and acknowledges that this Guaranty is continuing in nature and applies to all
Guaranteed Obligations, whether existing now or in the future.

     (c) Each of the Guarantors acknowledges that it will receive substantial
direct and indirect benefits from the financing arrangements contemplated by the
Loan Documents and that the waivers set forth in this Section 3 are knowingly
made in contemplation of such benefits.

     Section 4. Subrogation. Each of the Guarantors will not exercise any rights
that it may now or hereafter acquire against any Borrower or any other insider
guarantor that arise from the existence, payment, performance or enforcement of
such Guarantor's Obligations under this Guaranty or any other Loan Document,
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution or indemnification and any right to participate in any
claim or remedy of the Administrative Agent or any Lender Party against any
Borrower or any other insider guarantor or any collateral, whether or not such
claim, remedy or right arises in equity or under contract, statute or common
law, including, without limitation, the right to take or receive from any
Borrower or any other insider guarantor, directly or indirectly, in cash or
other property or by set-off or in any other manner, payment or security on
account of such claim, remedy or right, unless and until all of the Obligations
and all other amounts payable under this Guaranty shall have been paid in full
in cash, and the Commitments shall have expired or terminated. If any amount
shall be paid to any of the Guarantors in violation of the preceding sentence at
any time prior to the later of the payment in full in cash of the Guaranteed
Obligations and all other amounts payable under this Guaranty and the
Termination Date, such amount shall be held in trust for the benefit of the
Administrative Agent and the Lender Parties and shall forthwith be paid to the
Administrative Agent to be credited and applied to the Guaranteed Obligations
and all other amounts payable under this Guaranty, whether matured or unmatured,
in accordance with the terms of the Loan Documents, or to be held as collateral
for any Guaranteed Obligations or other amounts payable under this Guaranty
thereafter arising. If (i) any Guarantor shall make payment to the
Administrative Agent or any Lender Party of all or any part of the Guaranteed
Obligations, (ii) all of the Guaranteed Obligations and all other amounts
payable under this Guaranty shall be paid in full in cash and (iii) the
Termination Date shall have occurred, the Administrative Agent and the Lender
Parties will, at such Guarantor's request and expense, execute and deliver to
such Guarantor appropriate documents, without recourse and without
representation or warranty, necessary to evidence the transfer by subrogation to
such Guarantor of an interest in the Guaranteed Obligations resulting from such
payment by such Guarantor.

                                                                       EXHIBIT F

                                       3
<PAGE>

     Section 5. Payments Free and Clear of Taxes, Etc. (a) Any and all payments
made by any Guarantor hereunder shall be made, in accordance with Section 2.15
of the Credit Agreement, free and clear of and without deduction for any and all
present or future Taxes. If any Guarantor shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder to the Administrative
Agent or any Lender Party, (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) the Administrative
Agent or such Lender Party (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii) such Guarantor
shall make such deductions and (iii) such Guarantor shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law.

     (b) In addition, each of the Guarantors agrees to pay any present or future
Other Taxes.

     (c) Each of the Guarantors will indemnify the Administrative Agent and each
Lender Party for the full amount of Taxes or Other Taxes (including, without
limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts
payable under this Section) paid by the Administrative Agent or such Lender
Party (as the case may be) and any liability (including penalties, additions to
tax, interest and expenses) arising therefrom or with respect thereto. This
indemnification shall be made within 30 days from the date the Administrative
Agent or such Lender Party (as the case may be) makes written demand therefor.

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

                                                                       EXHIBIT F

                                       4
<PAGE>

     (e) Upon the reasonable request in writing of any Guarantor, each Lender
Party organized under the laws of a jurisdiction outside the United States
shall, on or prior to the date of its execution and delivery of the Credit
Agreement in the case of each Initial Lender or Initial Issuing Bank, as the
case may be, and on the date of the Assignment and Acceptance or other agreement
pursuant to which it became a Lender Party in the case of each other Lender
Party, and from time to time thereafter upon the reasonable request in writing
by any Guarantor (but only so long thereafter as such Lender Party remains
lawfully able to do so), provide the Administrative Agent and such Guarantor
with Internal Revenue Service Form W-8BEN or W 8BECI, as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender Party is exempt from or is entitled to a reduced rate of United
States withholding tax on payments under the Credit Agreement or the Notes. If
the form provided by a Lender Party at the time such Lender Party first becomes
a party to the Credit Agreement indicates a United States interest withholding
tax rate in excess of zero, withholding tax at such rate shall be considered
excluded from Taxes unless and until such Lender Party provides the appropriate
form certifying that a lesser rate applies, whereupon withholding tax at such
lesser rate only shall be considered excluded from Taxes for periods governed by
such form; provided, however, that, if at the date of the Assignment and
Acceptance pursuant to which a Lender Party assignee becomes a party to the
Credit Agreement, the Lender Party assignor was entitled to payments under
subsection (a) in respect of United States withholding tax with respect to
interest paid at such date, then, to such extent, the term Taxes shall include
(in addition to withholding taxes that may be imposed in the future or other
amounts otherwise includable in Taxes) United States withholding tax, if any,
applicable with respect to the Lender Party assignee on such date. If any form
or document referred to in this subsection (e) and requested by any Guarantor
pursuant to this subsection (e) requires the disclosure of information, other
than information necessary to compute the tax payable and information required
on the date hereof by Internal Revenue Service Form W-8BEN or W 8BECI, that any
Lender Party reasonably considers to be confidential, such Lender Party shall
give notice thereof to such Guarantor and shall not be obligated to include in
such form or document such confidential information.

     (f) For any period with respect to which a Lender Party required to do so
has failed to provide any Guarantor following such Guarantor's request therefor
pursuant to subsection (e) above with the appropriate form described in
subsection (e) (other than if such failure is due to a change in law occurring
after the date on which a form originally was required to be provided or if such
form otherwise is not required under subsection (e)), such Lender Party shall
not be entitled to indemnification under subsection (a) or (c) with respect to
Taxes imposed by the United States; provided, however, that should a Lender
Party become subject to Taxes because of its failure to deliver a form required
hereunder, each of the Guarantors shall take such steps as such Lender Party
shall reasonably request to assist such Lender Party to recover such Taxes.

     (g) Without prejudice to the survival of any other agreement of each of the
Guarantors hereunder or under any other Loan Document, the agreements and
obligations of each of the Guarantors contained in this Section 5 shall survive
the payment in full of the Guaranteed Obligations and all other amounts payable
under this Guaranty.

                                                                       EXHIBIT F

                                       5
<PAGE>

     Section 6. Representations and Warranties. Each of the Guarantors hereby
represents and warrants to each of the Lender Parties as follows:

     (a) There are no conditions precedent to the effectiveness of this Guaranty
that have not been satisfied or waived.

     (b) Such Guarantor has, independently and without reliance upon the
Administrative Agent or any Lender Party and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Guaranty, and such Guarantor has established
adequate means of obtaining from any other Loan Parties on a continuing basis
information pertaining to, and is now and on a continuing basis will be
completely familiar with, the financial condition, operations, properties and
prospects of such other Loan Parties.

     (c) Such Guarantor is, individually and together with its Subsidiaries,
Solvent.

     Section 7. Confirmation of Certain Provisions of the Credit Agreement. Each
of the Guarantors hereby confirms and agrees that so long as any part of the
Guaranteed Obligations shall remain unpaid, any Letter of Credit shall be
outstanding, or any Lender Party shall have any Commitment, such Guarantor will
perform and observe all of the terms, covenants and agreements set forth in the
Loan Documents to be performed or observed by such Guarantor or that Paxar has
agreed to cause such Guarantor to perform or observe.

     Section 8. Amendments; Supplements, Etc. (a) No amendment or waiver of any
provision of this Guaranty and no consent to any departure by any of the
Guarantors therefrom shall in any event be effective unless the same shall be in
writing and signed by the Administrative Agent and the Required Lenders, and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given; provided, however, that no amendment,
waiver or consent shall, unless in writing and signed by all of the Lender
Parties, (i) limit, reduce or terminate the liability of any of the Guarantors
hereunder, (ii) postpone any date fixed for payment hereunder or (iii) change
the number of Lender Parties required to take any action hereunder.

     (b) Upon the execution and delivery by any Person of a supplement to this
Guaranty pursuant to Section 5.01(m) of the Credit Agreement, in substantially
the form of Exhibit A attached hereto (each a "Guaranty Supplement"), such
Person shall be referred to as an "Additional Guarantor" and shall be and become
a Guarantor, and each reference in this Guaranty to a "Guarantor" shall also
mean and be a reference to such Additional Guarantor and each reference in any
other Loan Document to a "Guarantor" or a "Loan Party" shall also mean and be a
reference to such Additional Guarantor.

     Section 9. Notices, Etc. All notices and other communications provided for
hereunder shall be in writing (including telecopy communication) and mailed,
telecopied or delivered to it, if to any Initial Guarantor, addressed to it at
its address set forth below its name on the signature pages hereto, if to any
Additional Guarantor, at its address set forth below its name on the signature
page to the Guaranty Supplement executed and delivered by it, if to the
Administrative Agent or any Lender Party, at its address specified in the Credit
Agreement, or as to any party at such other address as shall be designated by
such party in a written notice to each other party. All such notices and other
communications shall, when mailed or telecopied, be effective when deposited in
the mails or transmitted by telecopier, respectively.

                                                                       EXHIBIT F

                                       6
<PAGE>

     Section 10. No Waiver; Remedies. No failure on the part of the
Administrative Agent or any other Lender Party to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

     Section 11. Right of Set-off. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 of the Credit Agreement to
authorize the Administrative Agent to declare the Notes due and payable pursuant
to the provisions of said Section 6.01, each Lender Party and each of its
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender Party or such Affiliate to
or for the credit or the account of any Guarantor against any and all of the
Obligations of such Guarantor now or hereafter existing under this Guaranty,
whether or not such Lender Party shall have made any demand under this Guaranty
and although such Obligations may be unmatured. Each Lender Party agrees
promptly to notify such Guarantor after any such set-off and application;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender Party and
its respective Affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such
Lender Party and its respective Affiliates may have.

     Section 12. Indemnification. Without limitation on any other Obligations of
any Guarantor or remedies of the Lender Parties under this Guaranty, each of the
Guarantors shall, to the fullest extent permitted by law, indemnify, defend and
save and hold harmless each Lender Party from and against, and shall pay on
demand, any and all losses, liabilities, damages, costs, expenses and charges
(including the reasonable fees and disbursements of such Lender Party's legal
counsel) suffered or incurred by such Lender Party as a result of any failure of
any Guaranteed Obligations to be the legal, valid and binding obligations of any
Borrower enforceable against such Borrower in accordance with their terms.

     Section 13. Continuing Guaranty; Assignments under the Credit Agreement.
This Guaranty is a continuing guaranty and shall (a) remain in full force and
effect until the later of the payment in full in cash of the Guaranteed
Obligations and all other amounts payable under this Guaranty and the
Termination Date, (b) be binding upon each of the Guarantors, their successors
and assigns and (c) inure to the benefit of and be enforceable by the
Administrative Agent and the Lender Parties and their successors, transferees
and assigns. Without limiting the generality of the foregoing clause (c), any
Lender Party may assign or otherwise transfer all or any portion of its rights
and obligations under the Credit Agreement (including, without limitation, all
or any portion of its Commitment, the Advances owing to it and the Note or Notes
held by it) to any other Person, and such other Person shall thereupon become
vested with all the benefits in respect thereof granted to such Lender Party
herein or otherwise, in each case as and to the extent provided in Section 9.07
of the Credit Agreement.

                                                                       EXHIBIT F

                                       7
<PAGE>

     Section 14. Judgment. (a) Rate of Exchange. If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum due hereunder,
under the Credit Agreement or under any Note or Notes in another currency into
US Dollars or into a Primary Currency, as the case may be, each of the
Guarantors agrees, to the fullest extent that they may effectively do so, that
the rate of exchange used shall be that at which, in accordance with normal
banking procedures, a Lender Party could purchase such other currency with US
Dollars or with a Primary Currency, as the case may be, in New York City, New
York at the close of business on the Business Day immediately preceding the day
on which final judgment is given, together with any premiums and costs of
exchange payable in connection with such purchase.

     (b) Indemnity. The obligation of each of the Guarantors in respect of any
sum due from it to the Administrative Agent or any Lender Party hereunder, under
the Credit Agreement or under any Note or Notes shall, notwithstanding any
judgment in a currency other than US Dollars or a Primary Currency, as the case
may be, be discharged only to the extent that on the Business Day next
succeeding receipt by the Administrative Agent or such Lender Party of any sum
adjudged to be so due in such other currency, the Administrative Agent or such
Lender Party may, in accordance with normal banking procedures, purchase US
Dollars or such Primary Currency, as the case may be, with such other currency.
If the US Dollars or such Primary Currency so purchased are less than the sum
originally due to such Administrative Agent or such Lender Party in US Dollars
or in such Primary Currency, each of the Guarantors agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the
Administrative Agent or such Lender Party against such loss, and if the US
Dollars or such Primary Currency so purchased exceed the sum originally due to
the Administrative Agent or any Lender Party in US Dollars or in such Primary
Currency, as the case may be, the Administrative Agent or such Lender Party
agrees to remit to such Guarantor such excess.

     Section 15. Jurisdiction, Etc. (a) Each of the Guarantors hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Guaranty or any of the other Loan Documents, or for recognition or enforcement
of any judgment, and each of the Guarantors hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in any such New York State court or, to
the extent permitted by law, in such federal court. Each of the Guarantors
further irrevocably consents to the service or process in any action or
proceeding in such courts by the mailing thereof by any parties thereto by
registered or certified mail, postage prepaid, to such Guarantor at its address
set forth below its name on the signature pages hereto. Each of the Guarantors
hereby further agrees that service of process in any such action or proceeding
brought in any such New York state court or in any such federal court may be
made upon Paxar at its address specified in Section 9.02 of the Credit
Agreement, and each of the Guarantors hereby irrevocably appoints Paxar as its
authorized agent to accept such service of process, and hereby irrevocably
agrees that the failure of Paxar to give any notice of such service to such
Guarantor shall not impair or affect the validity of such service or of any
judgment rendered in any action or proceeding based thereon. Each of the
Guarantors agrees that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Guaranty shall affect
any right that any party may otherwise have to bring any action or proceeding
relating to this Guaranty or any of the other Loan Documents to which it is or
is to be a party in the courts of any jurisdiction.

                                                                       EXHIBIT F

                                       8
<PAGE>

     (b) Each of the Guarantors irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Guaranty or any of the other Loan Documents
to which it is or is to be a party in any New York State or federal court. Each
of the Guarantors hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

     (c) To the extent that any Guarantor has or hereafter may acquire any
immunity from the jurisdiction of any court or from any legal process (whether
through service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, such
Guarantor hereby irrevocably waives such immunity in respect of its obligations
under this Agreement and the other Loan Documents.

     Section 16. Waiver of Jury Trial. Each of the Guarantors hereby irrevocably
waives all right to trial by jury in any action, proceeding or counterclaim
(whether based on contract, tort or otherwise) arising out of or relating to
this Guaranty or any of the other Loan Documents, the transactions contemplated
thereby or the actions of the Administrative Agent or any Lender Party in the
negotiation, administration, performance or enforcement thereof.

               [Remainder of this page left blank intentionally.]

                                                                       EXHIBIT F

                                       9
<PAGE>

     IN WITNESS WHEREOF, each of the Guarantors has caused this Guaranty to be
duly executed and delivered by its officer thereunto duly authorized as of the
date first above written.

                                        PAXAR CAPITAL CORPORATION

                                        By:
                                           -------------------------------------
                                           Title:
                                                 -------------------------------
                                           Address: 105 Corporate Park Drive
                                                    White Plains, NY  10604-3814

                                        PAXAR AMERICAS, INC.

                                        By:
                                           -------------------------------------
                                           Title:
                                                 -------------------------------
                                           Address: 105 Corporate Park Drive
                                                    White Plains, NY  10604-3814

                                        PAXAR INTERNATIONAL HOLDINGS, INC.

                                        By:
                                           -------------------------------------
                                           Title:
                                                 -------------------------------
                                           Address: 105 Corporate Park Drive
                                                    White Plains, NY  10604-3814

                                                                       EXHIBIT F

                                       10
<PAGE>

                                                                EXHIBIT A TO THE
                                                             SUBSIDIARY GUARANTY
                                                             -------------------

                           FORM OF GUARANTY SUPPLEMENT

                                                            ------------, ------

To each of the Lender Parties pursuant to the Credit
 Agreement referred to below

          Credit Agreement dated as of November __, 2005 (as in effect
             on the date hereof and as it may be hereafter amended,
                       supplemented or otherwise modified
           hereafter from time to time, the "Credit Agreement") among
          Paxar Corporation, certain subsidiaries thereof, the Lenders,
                        Issuing Banks and Swing Line Bank
          named therein and ABN AMRO Bank N.V. as Administrative Agent.
          ------------------------------------------------------------

Ladies and Gentlemen:

     Reference is made to the above-captioned Credit Agreement and to the
Subsidiary Guaranty referred to therein (such Subsidiary Guaranty, as in effect
on the date hereof and as it may be hereafter amended, supplemented or otherwise
modified from time to time, the "Subsidiary Guaranty"). Capitalized terms not
otherwise defined herein shall have the same meanings as specified in the Credit
Agreement and in the Subsidiary Guaranty.

     The undersigned hereby agrees as follows:

     1. The undersigned hereby unconditionally and irrevocably guarantees the
punctual payment when due, whether at stated maturity, by acceleration or
otherwise, of all Obligations of the Borrowers now or hereafter existing under
the Loan Documents, whether for principal, interest, fees, expenses or otherwise
(such Obligations being the "Guaranteed Obligations"), and agrees to pay any and
all expenses (including reasonable counsel fees and expenses) incurred by the
Administrative Agent or any Lender Party in enforcing any rights under this
Guaranty Supplement and the Subsidiary Guaranty and the other Loan Documents, on
the terms and subject to the limitations set forth in the Subsidiary Guaranty as
if it were an original party thereto. Without limiting the generality of the
foregoing, the undersigned's liability shall extend to all amounts that
constitute part of the Guaranteed Obligations and would be owed by the Borrowers
to the Administrative Agent or any Lender Party under the Loan Documents but for
the fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving the Borrowers.

     2. The undersigned hereby confirms that it is the intention of all parties
that the Obligations of the undersigned under this Guaranty Supplement and the
Subsidiary Guaranty not constitute a fraudulent transfer or conveyance for
purposes of the United States Federal Bankruptcy Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or
state law covering the protection of creditors' rights or the relief of debtors
to the extent applicable to this Guaranty Supplement and the Subsidiary Guaranty
or any of the Obligations of the undersigned hereunder or thereunder. To
effectuate the foregoing intention, the undersigned hereby irrevocably agrees
that, notwithstanding anything to the contrary contained in this Guaranty
Supplement or the Subsidiary Guaranty, the Obligations of the undersigned and
all other liabilities of the undersigned under this Guaranty Supplement and the
Subsidiary Guaranty shall be limited to the maximum amount as well, after giving
effect to such maximum amount and all of the other contingent and fixed
liabilities of such Guarantor that are relevant thereunder, and after giving
effect to any collections from, any rights to receive contributions from, or any
payments made by or on behalf of any of the other Guarantors in respect of the
obligations of such other Guarantor under this Guaranty Supplement and the
Guaranty result in the Guaranteed Obligations and all other liabilities of each
of the Guarantors under this Guaranty Supplement and the Guaranty not
constituting a fraudulent transfer or conveyance.

                                                                       EXHIBIT F

                                       11
<PAGE>

     3. The undersigned hereby agrees, as of the date first above written, to be
bound as a Guarantor by all of the terms and conditions of the Subsidiary
Guaranty to the same extent as each of the other Guarantors. The undersigned
further agrees, as of the date first above written, that each reference in the
Subsidiary Guaranty to a "Guarantor" shall also mean and be a reference to the
undersigned, and each reference in any other Loan Document to a "Guarantor" or a
"Loan Party" shall also mean and be a reference to the undersigned.

     4. This Guaranty Supplement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York.

     5. (a) The undersigned hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or federal court of the United States of America sitting in New York City,
and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Guaranty Supplement, or for recognition or
enforcement of any judgment, and the undersigned hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in any such New York State court or, to
the extent permitted by law, in such federal court. The undersigned further
irrevocably consents to the service or process in any action or proceeding in
such courts by the mailing thereof by any parties thereto by registered or
certified mail, postage prepaid, to the undersigned at its address set forth
below its name on the signature pages hereto. The undersigned hereby further
agrees that service of process in any such action or proceeding brought in any
such New York state court or in any such federal court may be made upon Paxar at
its address specified in Section 9.02 of the Credit Agreement, and the
undersigned hereby irrevocably appoints Paxar as its authorized agent to accept
such service of process, and hereby irrevocably agrees that the failure of Paxar
to give any notice of such service to the undersigned shall not impair or affect
the validity of such service or of any judgment rendered in any action or
proceeding based thereon. The undersigned agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Guaranty Supplement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Guaranty
Supplement or the other Loan Documents to which it is a party in the courts of
any jurisdiction.

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

                                                                       EXHIBIT F

                                       12
<PAGE>

     (c) To the extent that the undersigned has or hereafter may acquire any
immunity from the jurisdiction of any court or from any legal process (whether
through service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, the
undersigned hereby irrevocably waives such immunity in respect of its
obligations under this Agreement.

     6. The undersigned hereby irrevocably waives all right to trial by jury in
any action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this Guaranty Supplement or any of the
other Loan Documents to which it is a party, or the actions of the
Administrative Agent or any Lender Party in the negotiation, administration,
performance or enforcement thereof.

                                                  Very truly yours,

                                                  [NAME OF ADDITIONAL GUARANTOR]

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

                                                                       EXHIBIT F

                                       13
<PAGE>

                                                                     EXHIBIT G -
                                                     FOREIGN SUBSIDIARY GUARANTY

                           FOREIGN SUBSIDIARY GUARANTY

     GUARANTY dated ________ __, 200_ made by each of the Persons listed on the
signature pages hereof (the "Initial Guarantors"); and the Additional Guarantors
(as defined in Section 8(b)) (such Persons, together with the Initial
Guarantors, being collectively referred as the "Guarantors") in favor of the
Lender Parties as defined in the Credit Agreement referred to below.

     PRELIMINARY STATEMENT. The Lender Parties and ABN AMRO Bank N.V., as
Administrative Agent for the Lender Parties, are parties to a Credit Agreement
dated as of November __, 2005 (as amended, supplemented or otherwise modified
from time to time, the "Credit Agreement"; capitalized terms not otherwise
defined herein are used herein as therein defined) with Paxar Corporation, a
Delaware corporation ("Paxar"), and certain Subsidiaries of Paxar. Each of the
Guarantors may receive a portion of the proceeds of the Advances under the
Credit Agreement and will derive substantial direct and indirect benefit from
the transactions contemplated by the Credit Agreement. It is a condition
precedent to the making of Advances and the issuance of Letters of Credit under
the Credit Agreement that each of the Guarantors shall have executed and
delivered this Guaranty.

     NOW, THEREFORE, in consideration of the premises and in order to induce the
Lender Parties to make Advances and to issue Letters of Credit under the Credit
Agreement from time to time, each of the Guarantors hereby agrees as follows:

     Section 1. Guaranty; Limitation of Liability. (a) Each of the Guarantors
hereby absolutely, unconditionally and irrevocably guarantees the punctual
payment when due, whether at stated maturity, by acceleration or otherwise, of
all Obligations of the Non-US Borrowers now or hereafter existing under the Loan
Documents, whether for principal, interest, fees, expenses or otherwise (such
Obligations being the "Guaranteed Obligations"), and agrees to pay any and all
expenses (including reasonable counsel fees and expenses) incurred by the
Administrative Agent or any Lender Party in enforcing any rights under this
Guaranty. Without limiting the generality of the foregoing, each Guarantor's
liability shall extend to all amounts that constitute part of the Guaranteed
Obligations and would be owed by the Non-US Borrowers to the Administrative
Agent or any Lender Party under the Loan Documents but for the fact that they
are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving any Non-US Borrower.

     (b) Each of the Guarantors, and by its acceptance of this Guaranty, the
Administrative Agent and each of the Lender Parties, hereby confirm that it is
the intention of all such Persons that this Guaranty and the obligations of each
of the Guarantors hereunder not constitute a fraudulent transfer or conveyance
for purposes of the United States Federal Bankruptcy Code, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Act or any similar federal or
state law or similar law in any applicable jurisdiction outside the United
States covering the protection of creditors' rights or the relief of debtors to
the extent applicable to this Guaranty and the obligations of each of the
Guarantors hereunder. To effectuate the foregoing intention, each of the
Guarantors, the Administrative Agent and each of the Lender Parties hereby
irrevocably agree that the Guaranteed Obligations and all of the other
liabilities of each of the Guarantors under this Guaranty shall be limited to
the maximum amount as will, after giving effect to such maximum amount and all
of the other contingent and fixed liabilities of such Guarantor that are
relevant thereunder, and after giving effect to any collections from, any rights
to receive contributions from, or any payments made by or on behalf of, any of
the other Guarantors in respect of the obligations of such other Guarantor under
this Guaranty, result in the Guaranteed Obligations and all of the other
liabilities of each of the Guarantors under this Guaranty not constituting a
fraudulent transfer of conveyance.

                                                                       EXHIBIT G

                                       1
<PAGE>

     Section 2. Guaranty Absolute. Each of the Guarantors guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Loan Documents, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Administrative Agent or any Lender Party with respect thereto. The Obligations
of each of the Guarantors under this Guaranty are independent of the Guaranteed
Obligations or any other Obligations of any other Loan Party under the Loan
Documents, and a separate action or actions may be brought and prosecuted
against any of the Guarantors to enforce this Guaranty, irrespective of whether
any action is brought against any Non-US Borrower or any other Loan Party or
whether any Non-US Borrower or any other Loan Party is joined in any such action
or actions. The liability of each of the Guarantors under this Guaranty shall be
irrevocable, absolute and unconditional irrespective of, and each of the
Guarantors hereby irrevocably waives any defenses it may now or hereafter have
in any way relating to, any or all of the following:

     (a) any lack of validity or enforceability of any Loan Document or any
agreement or instrument relating thereto;

     (b) any change in the time, manner or place of payment of, or in any other
term of, all or any of the Guaranteed Obligations or any other Obligations of
any other Loan Party under the Loan Documents, or any other amendment or waiver
of or any consent to departure from any Loan Document, including, without
limitation, any increase in the Guaranteed Obligations resulting from the
extension of additional credit to any Non-US Borrower or any of its Subsidiaries
or otherwise;

     (c) any taking, exchange, release or non-perfection of any collateral, or
any taking, release or amendment or waiver of or consent to departure from any
other guaranty, for all or any of the Guaranteed Obligations;

     (d) any manner of application of collateral, or proceeds thereof, to all or
any of the Guaranteed Obligations, or any manner of sale or other disposition of
any collateral for all or any of the Guaranteed Obligations or any other
Obligations of any other Loan Party under the Loan Documents or any other assets
of any Non-US Borrower or any of its Subsidiaries;

     (e) any change, restructuring or termination of the corporate structure or
existence of any Non-US Borrower or any of its Subsidiaries;

                                                                       EXHIBIT G

                                       2
<PAGE>

     (f) any failure of any Lender Party to disclose to any Non-US Borrower or
any of the Guarantors any information relating to the financial condition,
operations, properties or prospects of any Loan Party now or in the future known
to any Lender Party (each of the Guarantors waiving any duty on the part of the
Lender Parties to disclose such information); or

     (g) any other circumstance (including, without limitation, any statute of
limitations) or any existence of or reliance on any representation by the
Administrative Agent or any Lender Party that might otherwise constitute a
defense available to, or a discharge of, any of the Non-US Borrowers, any of the
Guarantors or any other guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by any Lender Party or any other Person upon the
insolvency, bankruptcy or reorganization of any Non-US Borrower or any other
Loan Party or otherwise, all as though such payment had not been made.

     Section 3. Waivers and Acknowledgments. (a) Each of the Guarantors hereby
waives promptness, diligence, notice of acceptance and any other notice with
respect to any of the Guaranteed Obligations and this Guaranty and any
requirement that the Administrative Agent or any Lender Party protect, secure,
perfect or insure any Lien or any property subject thereto or exhaust any right
or take any action against the Non-US Borrowers or any other Person or any
Collateral.

     (b) Each of the Guarantors hereby waives any right to revoke this Guaranty,
and acknowledges that this Guaranty is continuing in nature and applies to all
Guaranteed Obligations, whether existing now or in the future.

     (c) Each of the Guarantors acknowledges that it will receive substantial
direct and indirect benefits from the financing arrangements contemplated by the
Loan Documents and that the waivers set forth in this Section 3 are knowingly
made in contemplation of such benefits.

     Section 4. Subrogation. Each of the Guarantors will not exercise any rights
that it may now or hereafter acquire against any Non-US Borrower or any other
insider guarantor that arise from the existence, payment, performance or
enforcement of such Guarantor's Obligations under this Guaranty or any other
Loan Document, including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of the Administrative Agent or any Lender
Party against any Non-US Borrower or any other insider guarantor or any
collateral, whether or not such claim, remedy or right arises in equity or under
contract, statute or common law, including, without limitation, the right to
take or receive from any Non-US Borrower or any other insider guarantor,
directly or indirectly, in cash or other property or by set-off or in any other
manner, payment or security on account of such claim, remedy or right, unless
and until all of the Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash, and the Commitments shall have
expired or terminated. If any amount shall be paid to any of the Guarantors in
violation of the preceding sentence at any time prior to the later of the
payment in full in cash of the Guaranteed Obligations and all other amounts
payable under this Guaranty and the Termination Date, such amount shall be held
in trust for the benefit of the Administrative Agent and the Lender Parties and
shall forthwith be paid to the Administrative Agent to be credited and applied
to the Guaranteed Obligations and all other amounts payable under this Guaranty,
whether matured or unmatured, in accordance with the terms of the Loan
Documents, or to be held as collateral for any Guaranteed Obligations or other
amounts payable under this Guaranty thereafter arising. If (i) any Guarantor
shall make payment to the Administrative Agent or any Lender Party of all or any
part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and
all other amounts payable under this Guaranty shall be paid in full in cash and
(iii) the Termination Date shall have occurred, the Administrative Agent and the
Lender Parties will, at such Guarantor's request and expense, execute and
deliver to such Guarantor appropriate documents, without recourse and without
representation or warranty, necessary to evidence the transfer by subrogation to
such Guarantor of an interest in the Guaranteed Obligations resulting from such
payment by such Guarantor.

                                                                       EXHIBIT G

                                       3
<PAGE>

     Section 5. Payments Free and Clear of Taxes, Etc. (a) Any and all payments
made by any Guarantor hereunder shall be made, in accordance with Section 2.15
of the Credit Agreement, free and clear of and without deduction for any and all
present or future Taxes. If any Guarantor shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder to the Administrative
Agent or any Lender Party, (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) the Administrative
Agent or such Lender Party (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii) such Guarantor
shall make such deductions and (iii) such Guarantor shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law.

     (b) In addition, each of the Guarantors agrees to pay any present or future
Other Taxes.

     (c) Each of the Guarantors will indemnify the Administrative Agent and each
Lender Party for the full amount of Taxes or Other Taxes (including, without
limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts
payable under this Section) paid by the Administrative Agent or such Lender
Party (as the case may be) and any liability (including penalties, additions to
tax, interest and expenses) arising therefrom or with respect thereto. This
indemnification shall be made within 30 days from the date the Administrative
Agent or such Lender Party (as the case may be) makes written demand therefor.

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

                                                                       EXHIBIT G

                                       4
<PAGE>

     (e) Upon the reasonable request in writing of any Guarantor, each Lender
Party organized under the laws of a jurisdiction outside the United States
shall, on or prior to the date of its execution and delivery of the Credit
Agreement in the case of each Initial Lender or Initial Issuing Bank, as the
case may be, and on the date of the Assignment and Acceptance or other agreement
pursuant to which it became a Lender Party in the case of each other Lender
Party, and from time to time thereafter upon the reasonable request in writing
by any Guarantor (but only so long thereafter as such Lender Party remains
lawfully able to do so), provide the Administrative Agent and such Guarantor
with Internal Revenue Service Form W-8BEN or W 8BECI, as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender Party is exempt from or is entitled to a reduced rate of United
States withholding tax on payments under the Credit Agreement or the Notes. If
the form provided by a Lender Party at the time such Lender Party first becomes
a party to the Credit Agreement indicates a United States interest withholding
tax rate in excess of zero, withholding tax at such rate shall be considered
excluded from Taxes unless and until such Lender Party provides the appropriate
form certifying that a lesser rate applies, whereupon withholding tax at such
lesser rate only shall be considered excluded from Taxes for periods governed by
such form; provided, however, that, if at the date of the Assignment and
Acceptance pursuant to which a Lender Party assignee becomes a party to the
Credit Agreement, the Lender Party assignor was entitled to payments under
subsection (a) in respect of United States withholding tax with respect to
interest paid at such date, then, to such extent, the term Taxes shall include
(in addition to withholding taxes that may be imposed in the future or other
amounts otherwise includable in Taxes) United States withholding tax, if any,
applicable with respect to the Lender Party assignee on such date. If any form
or document referred to in this subsection (e) and requested by any Guarantor
pursuant to this subsection (e) requires the disclosure of information, other
than information necessary to compute the tax payable and information required
on the date hereof by Internal Revenue Service Form W-8BEN or W 8BECI, that any
Lender Party reasonably considers to be confidential, such Lender Party shall
give notice thereof to such Guarantor and shall not be obligated to include in
such form or document such confidential information.

     (f) For any period with respect to which a Lender Party required to do so
has failed to provide any Guarantor following such Guarantor's request therefor
pursuant to subsection (e) above with the appropriate form described in
subsection (e) (other than if such failure is due to a change in law occurring
after the date on which a form originally was required to be provided or if such
form otherwise is not required under subsection (e)), such Lender Party shall
not be entitled to indemnification under subsection (a) or (c) with respect to
Taxes imposed by the United States; provided, however, that should a Lender
Party become subject to Taxes because of its failure to deliver a form required
hereunder, each of the Guarantors shall take such steps as such Lender Party
shall reasonably request to assist such Lender Party to recover such Taxes.

     (g) Without prejudice to the survival of any other agreement of each of the
Guarantors hereunder or under any other Loan Document, the agreements and
obligations of each of the Guarantors contained in this Section 5 shall survive
the payment in full of the Guaranteed Obligations and all other amounts payable
under this Guaranty.

                                                                       EXHIBIT G

                                       5
<PAGE>

     Section 6. Representations and Warranties. Each of the Guarantors hereby
represents and warrants to each of the Lender Parties as follows:

     (a) There are no conditions precedent to the effectiveness of this Guaranty
that have not been satisfied or waived.

     (b) Such Guarantor has, independently and without reliance upon the
Administrative Agent or any Lender Party and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Guaranty, and such Guarantor has established
adequate means of obtaining from any other Loan Parties on a continuing basis
information pertaining to, and is now and on a continuing basis will be
completely familiar with, the financial condition, operations, properties and
prospects of such other Loan Parties.

     (c) Such Guarantor is, individually and together with its Subsidiaries,
Solvent.

     Section 7. Confirmation of Certain Provisions of the Credit Agreement. Each
of the Guarantors hereby confirms and agrees that so long as any part of the
Guaranteed Obligations shall remain unpaid, any Letter of Credit shall be
outstanding, or any Lender Party shall have any Commitment, such Guarantor will
perform and observe all of the terms, covenants and agreements set forth in the
Loan Documents to be performed or observed by such Guarantor or that Paxar has
agreed to cause such Guarantor to perform or observe.

     Section 8. Amendments; Supplements, Etc. (a) No amendment or waiver of any
provision of this Guaranty and no consent to any departure by any of the
Guarantors therefrom shall in any event be effective unless the same shall be in
writing and signed by the Administrative Agent and the Required Lenders, and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given; provided, however, that no amendment,
waiver or consent shall, unless in writing and signed by all of the Lender
Parties, (i) limit, reduce or terminate the liability of any of the Guarantors
hereunder, (ii) postpone any date fixed for payment hereunder or (iii) change
the number of Lender Parties required to take any action hereunder.

     (b) Upon the execution and delivery by any Person of a supplement to this
Guaranty pursuant to Section 5.01(m) of the Credit Agreement, in substantially
the form of Exhibit A attached hereto (each a "Guaranty Supplement"), such
Person shall be referred to as an "Additional Guarantor" and shall be and become
a Guarantor, and each reference in this Guaranty to a "Guarantor" shall also
mean and be a reference to such Additional Guarantor and each reference in any
other Loan Document to a "Guarantor" or a "Loan Party" shall also mean and be a
reference to such Additional Guarantor.

     Section 9. Notices, Etc. All notices and other communications provided for
hereunder shall be in writing (including telecopy communication) and mailed,
telecopied or delivered to it, if to any Initial Guarantor, addressed to it at
its address set forth below its name on the signature pages hereto, if to any
Additional Guarantor, at its address set forth below its name on the signature
page to the Guaranty Supplement executed and delivered by it, if to the
Administrative Agent or any Lender Party, at its address specified in the Credit
Agreement, or as to any party at such other address as shall be designated by
such party in a written notice to each other party. All such notices and other
communications shall, when mailed or telecopied, be effective when deposited in
the mails or transmitted by telecopier, respectively.

                                                                       EXHIBIT G

                                       6
<PAGE>

     Section 10. No Waiver; Remedies. No failure on the part of the
Administrative Agent or any other Lender Party to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

     Section 11. Right of Set-off. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 of the Credit Agreement to
authorize the Administrative Agent to declare the Notes due and payable pursuant
to the provisions of said Section 6.01, each Lender Party and each of its
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender Party or such Affiliate to
or for the credit or the account of any Guarantor against any and all of the
Obligations of such Guarantor now or hereafter existing under this Guaranty,
whether or not such Lender Party shall have made any demand under this Guaranty
and although such Obligations may be unmatured. Each Lender Party agrees
promptly to notify such Guarantor after any such set-off and application;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender Party and
its respective Affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such
Lender Party and its respective Affiliates may have.

     Section 12. Indemnification. Without limitation on any other Obligations of
any Guarantor or remedies of the Lender Parties under this Guaranty, each of the
Guarantors shall, to the fullest extent permitted by law, indemnify, defend and
save and hold harmless each Lender Party from and against, and shall pay on
demand, any and all losses, liabilities, damages, costs, expenses and charges
(including the reasonable fees and disbursements of such Lender Party's legal
counsel) suffered or incurred by such Lender Party as a result of any failure of
any Guaranteed Obligations to be the legal, valid and binding obligations of any
Non-US Borrower enforceable against such Non-US Borrower in accordance with
their terms.

     Section 13. Continuing Guaranty; Assignments under the Credit Agreement.
This Guaranty is a continuing guaranty and shall (a) remain in full force and
effect until the later of the payment in full in cash of the Guaranteed
Obligations and all other amounts payable under this Guaranty and the
Termination Date, (b) be binding upon each of the Guarantors, their successors
and assigns and (c) inure to the benefit of and be enforceable by the
Administrative Agent and the Lender Parties and their successors, transferees
and assigns. Without limiting the generality of the foregoing clause (c), any
Lender Party may assign or otherwise transfer all or any portion of its rights
and obligations under the Credit Agreement (including, without limitation, all
or any portion of its Commitment, the Advances owing to it and the Note or Notes
held by it) to any other Person, and such other Person shall thereupon become
vested with all the benefits in respect thereof granted to such Lender Party
herein or otherwise, in each case as and to the extent provided in Section 9.07
of the Credit Agreement.

                                                                       EXHIBIT G

                                       7
<PAGE>

     Section 14. Judgment. (a) Rate of Exchange. If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum due hereunder,
under the Credit Agreement or under any Note or Notes in another currency into
US Dollars or into a Primary Currency, as the case may be, each of the
Guarantors agrees, to the fullest extent that they may effectively do so, that
the rate of exchange used shall be that at which, in accordance with normal
banking procedures, a Lender Party could purchase such other currency with US
Dollars or with a Primary Currency, as the case may be, in New York City, New
York at the close of business on the Business Day immediately preceding the day
on which final judgment is given, together with any premiums and costs of
exchange payable in connection with such purchase.

     (b) Indemnity. The obligation of each of the Guarantors in respect of any
sum due from it to the Administrative Agent or any Lender Party hereunder, under
the Credit Agreement or under any Note or Notes shall, notwithstanding any
judgment in a currency other than US Dollars or a Primary Currency, as the case
may be, be discharged only to the extent that on the Business Day next
succeeding receipt by the Administrative Agent or such Lender Party of any sum
adjudged to be so due in such other currency, the Administrative Agent or such
Lender Party may, in accordance with normal banking procedures, purchase US
Dollars or such Primary Currency, as the case may be, with such other currency.
If the US Dollars or such Primary Currency so purchased are less than the sum
originally due to such Administrative Agent or such Lender Party in US Dollars
or in such Primary Currency, each of the Guarantors agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the
Administrative Agent or such Lender Party against such loss, and if the US
Dollars or such Primary Currency so purchased exceed the sum originally due to
the Administrative Agent or any Lender Party in US Dollars or in such Primary
Currency, as the case may be, the Administrative Agent or such Lender Party
agrees to remit to such Guarantor such excess.

     Section 15. Jurisdiction, Etc. (a) Each of the Guarantors hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Guaranty or any of the other Loan Documents, or for recognition or enforcement
of any judgment, and each of the Guarantors hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in any such New York State court or, to
the extent permitted by law, in such federal court. Each of the Guarantors
further irrevocably consents to the service or process in any action or
proceeding in such courts by the mailing thereof by any parties thereto by
registered or certified mail, postage prepaid, to such Guarantor at its address
set forth below its name on the signature pages hereto. Each of the Guarantors
hereby further agrees that service of process in any such action or proceeding
brought in any such New York state court or in any such federal court may be
made upon Paxar at its address specified in Section 9.02 of the Credit
Agreement, and each of the Guarantors hereby irrevocably appoints Paxar as its
authorized agent to accept such service of process, and hereby irrevocably
agrees that the failure of Paxar to give any notice of such service to such
Guarantor shall not impair or affect the validity of such service or of any
judgment rendered in any action or proceeding based thereon. Each of the
Guarantors agrees that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Guaranty shall affect
any right that any party may otherwise have to bring any action or proceeding
relating to this Guaranty or any of the other Loan Documents to which it is or
is to be a party in the courts of any jurisdiction.

                                                                       EXHIBIT G

                                       8
<PAGE>

     (b) Each of the Guarantors irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Guaranty or any of the other Loan Documents
to which it is or is to be a party in any New York State or federal court. Each
of the Guarantors hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

     (c) To the extent that any Guarantor has or hereafter may acquire any
immunity from the jurisdiction of any court or from any legal process (whether
through service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, such
Guarantor hereby irrevocably waives such immunity in respect of its obligations
under this Agreement and the other Loan Documents.

     Section 16. Waiver of Jury Trial. Each of the Guarantors hereby irrevocably
waives all right to trial by jury in any action, proceeding or counterclaim
(whether based on contract, tort or otherwise) arising out of or relating to
this Guaranty or any of the other Loan Documents, the transactions contemplated
thereby or the actions of the Administrative Agent or any Lender Party in the
negotiation, administration, performance or enforcement thereof.

               [Remainder of this page left blank intentionally.]

                                                                       EXHIBIT G

                                       9
<PAGE>

     IN WITNESS WHEREOF, each of the Guarantors has caused this Guaranty to be
duly executed and delivered by its officer thereunto duly authorized as of the
date first above written.

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

                                              By:
                                                  ------------------------------
                                                  Title:
                                                        ------------------------
                                                  Address:
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                                              By:
                                                  ------------------------------
                                                  Title:
                                                        ------------------------
                                                  Address:
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                                              By:
                                                  ------------------------------
                                                  Title:
                                                        ------------------------
                                                  Address:
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                                              By:
                                                  ------------------------------
                                                  Title:
                                                        ------------------------
                                                  Address:
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                                                                       EXHIBIT G

                                       10
<PAGE>

                                                                EXHIBIT A TO THE
                                                     FOREIGN SUBSIDIARY GUARANTY
                                                     ---------------------------

                           FORM OF GUARANTY SUPPLEMENT

                                                            ------------, ------

To each of the Lender Parties pursuant to the Credit
 Agreement referred to below

          Credit Agreement dated as of November __, 2005 (as in effect
             on the date hereof and as it may be hereafter amended,
                       supplemented or otherwise modified
           hereafter from time to time, the "Credit Agreement") among
          Paxar Corporation, certain subsidiaries thereof, the Lenders,
                        Issuing Banks and Swing Line Bank
          named therein and ABN AMRO Bank N.V. as Administrative Agent.
          ------------------------------------------------------------

Ladies and Gentlemen:

     Reference is made to the above-captioned Credit Agreement and to the
Foreign Subsidiary Guaranty referred to therein (such Foreign Subsidiary
Guaranty, as in effect on the date hereof and as it may be hereafter amended,
supplemented or otherwise modified from time to time, the "Subsidiary
Guaranty"). Capitalized terms not otherwise defined herein shall have the same
meanings as specified in the Credit Agreement and in the Foreign Subsidiary
Guaranty.

     The undersigned hereby agrees as follows:

     1. The undersigned hereby unconditionally and irrevocably guarantees the
punctual payment when due, whether at stated maturity, by acceleration or
otherwise, of all Obligations of the Non-US Borrowers now or hereafter existing
under the Loan Documents, whether for principal, interest, fees, expenses or
otherwise (such Obligations being the "Guaranteed Obligations"), and agrees to
pay any and all expenses (including reasonable counsel fees and expenses)
incurred by the Administrative Agent or any Lender Party in enforcing any rights
under this Guaranty Supplement and the Subsidiary Guaranty and the other Loan
Documents, on the terms and subject to the limitations set forth in the
Subsidiary Guaranty as if it were an original party thereto. Without limiting
the generality of the foregoing, the undersigned's liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by
the Non-US Borrowers to the Administrative Agent or any Lender Party under the
Loan Documents but for the fact that they are unenforceable or not allowable due
to the existence of a bankruptcy, reorganization or similar proceeding involving
the Non-US Borrowers.

     2. The undersigned hereby confirms that it is the intention of all parties
that the Obligations of the undersigned under this Guaranty Supplement and the
Subsidiary Guaranty not constitute a fraudulent transfer or conveyance for
purposes of the United States Federal Bankruptcy Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or
state law or similar law in any applicable jurisdiction outside the United
States covering the protection of creditors' rights or the relief of debtors to
the extent applicable to this Guaranty Supplement and the Subsidiary Guaranty or
any of the Obligations of the undersigned hereunder or thereunder. To effectuate
the foregoing intention, the undersigned hereby irrevocably agrees that,
notwithstanding anything to the contrary contained in this Guaranty Supplement
or the Subsidiary Guaranty, the Obligations of the undersigned and all other
liabilities of the undersigned under this Guaranty Supplement and the Subsidiary
Guaranty shall be limited to the maximum amount as well, after giving effect to
such maximum amount and all of the other contingent and fixed liabilities of
such Guarantor that are relevant thereunder, and after giving effect to any
collections from, any rights to receive contributions from, or any payments made
by or on behalf of any of the other Guarantors in respect of the obligations of
such other Guarantor under this Guaranty Supplement and the Guaranty result in
the Guaranteed Obligations and all other liabilities of each of the Guarantors
under this Guaranty Supplement and the Guaranty not constituting a fraudulent
transfer or conveyance.

                                                                       EXHIBIT G

                                       11
<PAGE>

     3. The undersigned hereby agrees, as of the date first above written, to be
bound as a Guarantor by all of the terms and conditions of the Subsidiary
Guaranty to the same extent as each of the other Guarantors. The undersigned
further agrees, as of the date first above written, that each reference in the
Subsidiary Guaranty to a "Guarantor" shall also mean and be a reference to the
undersigned, and each reference in any other Loan Document to a "Guarantor" or a
"Loan Party" shall also mean and be a reference to the undersigned.

     4. This Guaranty Supplement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York.

     5. (a) The undersigned hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or federal court of the United States of America sitting in New York City,
and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Guaranty Supplement, or for recognition or
enforcement of any judgment, and the undersigned hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in any such New York State court or, to
the extent permitted by law, in such federal court. The undersigned further
irrevocably consents to the service or process in any action or proceeding in
such courts by the mailing thereof by any parties thereto by registered or
certified mail, postage prepaid, to the undersigned at its address set forth
below its name on the signature pages hereto. The undersigned hereby further
agrees that service of process in any such action or proceeding brought in any
such New York state court or in any such federal court may be made upon Paxar at
its address specified in Section 9.02 of the Credit Agreement, and the
undersigned hereby irrevocably appoints Paxar as its authorized agent to accept
such service of process, and hereby irrevocably agrees that the failure of Paxar
to give any notice of such service to the undersigned shall not impair or affect
the validity of such service or of any judgment rendered in any action or
proceeding based thereon. The undersigned agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Guaranty Supplement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Guaranty
Supplement or the other Loan Documents to which it is a party in the courts of
any jurisdiction.

                                                                       EXHIBIT G

                                       12
<PAGE>

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

     (c) To the extent that the undersigned has or hereafter may acquire any
immunity from the jurisdiction of any court or from any legal process (whether
through service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, the
undersigned hereby irrevocably waives such immunity in respect of its
obligations under this Agreement.

     6. The undersigned hereby irrevocably waives all right to trial by jury in
any action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this Guaranty Supplement or any of the
other Loan Documents to which it is a party, or the actions of the
Administrative Agent or any Lender Party in the negotiation, administration,
performance or enforcement thereof.

                                                  Very truly yours,

                                                  [NAME OF ADDITIONAL GUARANTOR]

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

                                       13Exhibit 10.7

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement"), dated January
23, 2006 (the "Effective Date"), is entered into by and between Jeremy Diamond
(the "Executive") and Annaly Mortgage Management, Inc., a Maryland corporation
(the "Company").

     WHEREAS, the Company and the Executive entered into an employment
agreement, dated December 31, 2003 (the "Employment Agreement"); and

     WHEREAS, the Company desires to establish its right to the continued
services of the Executive upon the Effective Date, in the capacity described
below, on the terms and conditions and subject to the rights of termination
hereinafter set forth, and the Executive is willing to accept such employment on
such terms and conditions.

     NOW, THEREFORE, in consideration of the mutual promises and agreements
herein made and intending to be legally bound hereby, the parties agree to the
Employment Agreement in its entirety to read as follows:

     In consideration of the mutual agreements hereinafter set forth, the
Executive and the Company have agreed and do hereby agree as follows:

     1. Definitions. Capitalized terms used in this Agreement shall have the
respective meanings assigned to them below:

     1.1 "Book Value" of the Company shall be equal to the aggregate amounts
reported as Stockholders Equity on the Company's balance sheet as of the end of
each fiscal year determined in accordance with generally accepted accounting
principles (GAAP) but without taking into account any valuation reserves (i.e.,
changes in the value of the Company's portfolio of investments as a result of
mark-to-market valuation changes, referred to in the financial statements as
"Accumulated Other Comprehensive Gain or Loss").

     1.2 "Code" shall mean the Internal Revenue Code of 1986, as amended.

     1.3 "Compensation Committee" shall mean the Compensation Committee of the
Board of Directors of the Company.

     1.4 "Good Reason" shall mean the occurrence of one or more of the following
without the Executive's written consent: (i) a material breach of this Agreement
by the Company, or (ii) a materially significant change in the Executive's
duties, authorities or responsibilities, or (iii) the relocation of the
Executive's principal place of employment more than 60 miles from New York, New
York, or (iv) the failure of the Company to obtain the assumption in writing of
its obligations to perform this Agreement by any successor to all or
substantially all of the assets or business of the Company within fifteen (15)
days upon a merger, consolidation, sale or similar transaction, provided however
that none of the events specified in (i), (ii) or (iii) shall constitute Good
Reason unless the Executive shall have notified the Company in writing
describing the events which constitute Good Reason and the Company shall have
failed to cure such event within a reasonable period, not to exceed thirty (30)
days, after the Company's actual receipt of such written notice.

<PAGE>

     2. Employment as Managing Director of the Company. The Company hereby
employs and engages the Executive as Managing Director of the Company, and the
Executive does hereby accept and agree to such employment and engagement. The
Executive's duties as Managing Director shall be such duties typically required
of managing directors, and as shall from time to time be agreed upon by the
Executive and the Board of Directors of the Company. The Executive shall report
solely and directly to the Chief Operating Officer. The Executive's services
shall be performed in the Company's offices in New York, New York or such other
location as the Company and Executive shall agree. Except for periods of
Disability (as defined below), during the Term, the Executive shall devote
substantially all of his business time, attention and energies to the
performance of his duties under this Agreement; provided, however, that the
Executive shall be allowed, to the extent such activities do not substantially
interfere with the performance by the Executive of his duties and
responsibilities hereunder, (a) to manage the Executive's personal, financial
and legal affairs, and (b) serve on civic or charitable boards or committees.
Furthermore, the Executive shall exercise due diligence and care in the
performance of his duties to the Company under this Agreement.

     3. Term of Agreement.

     (a) Effective Date. The term ("Term") of this Agreement shall commence as
of the Effective Date and shall continue through the first anniversary of the
Effective Date. From and after such first anniversary and upon each anniversary
thereafter, the Term of the Agreement shall automatically be extended for
successive one-year periods unless, not later than three months prior to such
first anniversary or any subsequent anniversary, as applicable, either party
shall have given written notice to the other that it does not wish to extend the
Term of the Agreement.

     4. Compensation.

     (a) Base Salary. The Company shall pay the Executive, and the Executive
agrees to accept from the Company, in payment for his services to the Company, a
base salary equal to a per annum amount of $500,000 ("Base Salary"), payable in
equal biweekly installments or at such other time or times as the Executive and
the Company shall agree. The Base Salary can be increased (but not decreased) at
any time by the Compensation Committee or the Board of Directors of the Company,
as the case may be. The Executive's salary as increased shall be deemed to be
the Base Salary for all purposes under this Agreement.

     (b) Performance Bonus. With respect to each fiscal year, the Executive
shall be eligible to receive an amount equal to the sum of: (A) the excess, if
any, of (i) 0.050% of the Book Value of the Company for such fiscal year over
(ii) the Executive's Base Salary as of the last day of such fiscal year;
provided, however, that the Compensation Committee must approve such amount,
plus (B) additional amounts as may be recommended by management and approved by
the Compensation Committee (such sum being the "Performance Bonus").

                                      -2-
<PAGE>

     (c) Annual Review. The Board of Directors shall, at least annually, review
the Executive's entire compensation package to determine if it should be
increased (but not decreased) in order for it to continue to meet the Company's
compensation objectives.

     5. Fringe Benefits. The Executive shall be entitled to participate in any
benefit programs adopted from time to time by the Company for the benefit of its
senior executive employees, and the Executive shall be entitled to receive such
other fringe benefits as may be granted to his from time to time by the
Compensation Committee or the Board of Directors of the Company, as the case may
be.

     (a) Benefit Plans. The Executive shall be entitled to participate in any
benefit plans relating to stock options, stock purchases, awards, pension,
thrift, profit sharing, life insurance, medical coverage, education, or other
retirement or employee benefits available to other senior executive employees of
the Company, subject to any restrictions (including waiting periods) specified
in such plans.

     (b) Vacation. The Executive shall be entitled to such number of weeks of
paid vacation per calendar year as determined by the Board of Directors of the
Company after review of industry standards, but shall in no event be entitled to
fewer than five weeks of paid vacation per calendar year.

     6. Business Expenses. The Company shall reimburse the Executive for any and
all necessary, customary and usual expenses, properly receipted in accordance
with Company policies, incurred by Executive on behalf of the Company.

     7. Termination of Executive's Employment.

     (a) Death. If the Executive dies while employed by the Company, his
employment shall immediately terminate. The Company's obligation to pay the
Executive's Base Salary shall cease as of the date of Executive's death, except
that any earned, but unpaid Base Salary and Performance Bonus shall be paid to
the Executive's beneficiaries as soon as practicable after his death. In
addition, the Executive's beneficiaries shall receive the pro rata portion of
the Performance Bonus for the year of the Executive's death, which shall be
equal to the Performance Bonus (as determined at the end of the year of the
Executive's death) multiplied by a ratio equal to (A) the number of days the
Executive was employed in the year of his death, divided by (B) 365. The
Performance Bonus shall be paid to the Executive's beneficiaries at the same
time and in the same manner as such Performance Bonus would have been paid to
the Executive had the Executive not died or been terminated. Thereafter,
Executive's beneficiaries or his estate shall receive benefits in accordance
with the Company's retirement, insurance and other applicable programs and plans
then in effect.

                                      -3-
<PAGE>

     (b) Disability. If, as a result of the Executive's incapacity due to
physical or mental illness ("Disability"), Executive shall have been absent from
the full-time performance of his duties with the Company for six (6) consecutive
months, and, within thirty (30) days after written notice is provided to him by
the Company, the Executive shall not have returned to the full-time performance
of his duties, the Executive's employment under this Agreement may be terminated
by the Company for Disability. With respect to the period during which begins
when the Executive is first absent from the full-time performance of his duties
with the Company due to Disability and ends upon the later of (i) the date he is
terminated from employment in accordance with the foregoing sentence, or, (ii)
the date he begins receiving long-term disability payments under the Company's
long term disability plan for senior executives ("Salary Continuation Period"),
the Company shall continue to pay the Executive his Base Salary at the rate in
effect at the commencement of such period of Disability. In addition, the
Executive shall receive the pro rata portion of the Performance Bonus for the
year of the Executive's termination due to Disability, which shall be equal to
the Performance Bonus (as determined at the end of the year in which the
Executive is terminated by reason of Disability) multiplied by a ratio equal to
(A) the number of days the Executive was employed in the year of his termination
for Disability, divided by (B) 365. The Performance Bonus shall be paid to the
Executive at the same time and in the same manner as such Performance Bonus
would have been paid had the Executive not been terminated by reason of
Disability. Upon the end of the Salary Continuation Period, the Executive's
benefits shall be determined under the Company's retirement, insurance and other
compensation programs then in effect in accordance with the terms of such
programs

     (c) Termination by the Company for Cause. The Company may terminate the
Executive's employment under this Agreement for "Cause," at any time prior to
expiration of the Term of the Agreement, only in the event of (i) the
Executive's failure to substantially perform the duties described in this
Agreement, (ii) acts or omissions constituting recklessness or willful
misconduct on the part of the Executive in respect of his fiduciary obligations
to the Company which is materially and demonstrably injurious to the Company, or
(iii) the Executive's conviction for fraud, misappropriation or embezzlement in
connection with the assets of the Company. In the case of clause (i) only, it
shall also be a condition precedent to the Company's right to terminate the
Executive's employment for Cause that (1) the Company shall first have given the
Executive written notice stating with specificity the reason for the termination
("breach") at least 60 days before the meeting of the Board of Directors called
to make such determination and the Executive and his counsel are given the
opportunity to answer such grounds for termination in person, at a hearing or in
writing delivered to the Chairman of the Board, in the Executive's discretion,
before a vote by the Board of Directors on the existence of Cause; and (2) if
such breach is susceptible to cure or remedy, a period of 60 days from and after
the giving of the notice described in (1) shall have elapsed without the
Executive having effectively cured or remedied such breach during such 30-day
period, unless such breach cannot be cured or remedied within 60 days, in which
case the period for remedy or cure shall be extended for a reasonable time (not
to exceed an additional 30 days), provided the Executive has made and continues
to make a diligent effort to effect such remedy or cure. In the case of clause
(iii) above, the Executive's employment under this Agreement may be terminated
immediately without any advance written notice. Upon a determination that
grounds exist for a termination for Cause by the Board of Directors and that the
breach cannot be cured, or immediately in the case of clause (iii) above, the
Company's obligation to pay the Executive's Base Salary, any Performance Bonus
and benefits shall immediately cease, except to the extent any Base Salary or
Performance Bonus has been earned but has not yet been paid.

                                      -4-
<PAGE>

     7.2. Termination by the Executive. The Executive may at any time during the
Term of this Agreement terminate his employment hereunder for any reason or no
reason by giving the Company notice in writing not less 90 days in advance of
such termination. The Executive shall have no further obligations to the Company
after the effective date of his termination, as set forth in the notice. In the
event of a termination by the Executive under this Section, the Company will pay
only the portion of Base Salary or previously awarded Performance Bonus unpaid
as of the termination date. Benefits which have accrued and/or vested on the
termination date will continue in effect according to their terms, but no
additional accrual or vesting will take place. Notwithstanding the foregoing, if
the Executive terminates his employment for Good Reason, the notice period
provided in Section 7.2 above shall not apply and the Executive will be entitled
to the severance detailed in Section 8.

     8. Compensation Upon Termination by the Company Other Than for Cause or
Upon Termination by the Executive for Good Reason. If the Executive's employment
shall be terminated by the Company other than for Cause or by the Executive for
Good Reason, the Executive shall be entitled to the following benefits:

     (a) Payment of Unpaid Base Salary. The Company shall immediately pay the
Executive any portion of the Executive's Base Salary or previously awarded
Performance Bonus not paid prior to the termination date.

     (b) Severance Payment. The Company shall pay the Executive an amount (the
"Severance Amount") equal to three (3) times the greater of (i) the Executive's
combined Base Salary and actual Performance Bonus for the preceding fiscal year
or (ii) the average for the three preceding years of the Executive's combined
actual Base Salary and Performance Bonus. Fifty percent of the Severance Amount
shall be paid within five (5) days after the date the Executive terminates for
Good Reason or is terminated by the Company for any reason other than Cause, and
the remaining 50% of the Severance Amount shall be paid in three equal monthly
installments beginning on the first business day of the month following the
month of such termination.

     (c) Immediate Vesting of Stock Options. The Company shall take all
appropriate action to ensure that all stock options on the Company's stock owned
by the Executive as of his termination date, and which have not been exercised
prior to the termination date become immediately exercisable by the Executive,
whether or not the right to exercise such stock options would otherwise then be
vested in the Executive, provided, however, an option that is an incentive stock
option within the meaning of Code Section 422(b) ("ISO") shall not be
exercisable for the first time in a calendar year to the extent that the
aggregate fair market value of stock (as determined under Code Section
422(b)(3)) with respect to which ISO's are exercisable by the Executive during
such calendar year exceeds $100,000. The provisions of this Section 7(c) shall
constitute an amendment to any existing stock option agreements (including award
certificates) of the Company as of the termination date.

                                      -5-
<PAGE>

     (d) Maximization of Payment in the Event of a Change in Control. The
Company shall make the payments and provide the benefits to be paid and provided
under this Agreement; provided, however, that if all or any portion of the
payments and benefits provided under this Agreement, either alone or together
with other payments and benefits which the Executive receives or is then
entitled to receive from the Company or otherwise, would constitute a "parachute
payment" within the meaning of Section 280G of the Code (or a similar or
successor provision), the Company shall reduce such payments hereunder and such
other payments to the extent necessary so that no portion thereof shall be
subject to the excise tax imposed by Section 4999 of the Code (or a similar or
successor provision); but only if, by reason of such reduction, the net
after-tax benefit to the Executive shall exceed the net after-tax benefit if
such reduction were not made. The payments or benefits shall be reduced in the
manner and order determined by the Executive, subject to the consent of the
Company, which consent shall not be unreasonably withheld. The determination of
whether the payments shall be reduced as provided in this Section 8(d) and the
amount of such reduction shall be made at the Company's expense by a public
accounting firm retained by the Company at the time the calculation is to be
performed, or one selected by the Company from among the four (4) largest public
accounting firms in the United States (the "Accounting Firm"). The Accounting
Firm shall provide its determination, together with detailed supporting
calculations and documentation to the Company and the Executive within twenty
(20) business days of the payment of the initial installment of the Severance
Amount. The Executive may review these calculations for a period of twenty days
and may retain another accounting firm (at his own expense) for such review and
submit objections during such twenty-day review period.

     (e) No Other Entitlement to Benefits Under Agreement. Except as set forth
in Section 7 or Section 8 of this Agreement, following a termination governed by
Section 7 or Section 8, the Executive shall not be entitled to any other
compensation or benefits, except as may be separately negotiated by the parties
and approved by the Board of Directors of the Company in writing in conjunction
with the termination of Executive's employment.

     9. Noncompetition Provisions.

     (a) Noncompetition. The Executive agrees that during the Term of employment
under this Agreement prior to any termination of his employment hereunder and,
in the event of termination of the Executive's employment by the Company for
Cause or voluntary termination of employment by the Executive (other than for
Good Reason), for a period of one year following such termination, the Executive
will not, directly or indirectly, without the prior written consent of the
Company, manage, operate, join, control, participate in, or be connected as a
stockholder (other than as a holder of shares publicly traded on a stock
exchange or the NASDAQ National Market System), partner, or other equity holder
with, or as an officer, director or employee of, any private or public
investment firm, broker dealer or real estate investment trust whose business
strategy is based on or who engages in the trading, sales or management of
mortgage-backed securities (the "Business") in any geographical region in which
the Company engages in the Business (a "Competitor"). It is further expressly
agreed that the Company will or would suffer irreparable injury of the Company
in violation of the preceding sentence of this Agreement and that the Company
would by reason of such competition be entitled to injunctive relief in a court
of appropriate jurisdiction, and the Executive further consents and stipulates
to the entry of such injunctive relief in such a court prohibiting the Executive
from competing with the Company or any subsidiary or affiliate of the Company,
in the areas of business set forth above, in violation of this Agreement.

     (b) Right to Company Materials. The Executive agrees that all styles,
designs, lists, materials, books, files, reports, correspondence, records, and
other documents ("Company Materials") used, prepared, or made available to the
Executive in connection with his employment by the Company shall be and shall
remain the property of the Company. Upon the termination of employment or the
expiration of the Term of employment under this Agreement, all Company Materials
shall be returned immediately to the Company, and the Executive shall not make
or retain any copies thereof.

                                      -6-
<PAGE>

     (c) Soliciting Executives. The Executive promises and agrees that he will
not directly or indirectly solicit any of the Company Executives to work for any
Competitor during the one-year period following his termination of employment
unless such termination is by the Company for reasons other than Cause or by the
Executive for Good Reason.

     (d) Corporate Opportunities. The Executive agrees, in accordance with
Maryland law, to first offer to the Company corporate opportunities learned of
solely as a result of his service as an officer and director of the Company.

     10. Notices. All notices and other communications under this Agreement
shall be in writing and shall be given by fax or first class mail, certified or
registered with return receipt requested, and shall be deemed to have been duly
given three (3) days after mailing or twenty-four (24) hours after transmission
of a fax to the respective persons named below:

                  If to the Company:    Michael A. J. Farrell
                                        Chairman and Chief Executive Officer
                                        Annaly Mortgage Management, Inc.
                                        1211 Avenue of the Americas
                                        Suite 2902
                                        New York, NY 10036
                                        Phone: (212) 696-0100
                                        Fax:  (212) 696-9809

                  If to the Executive:  Jeremy Diamond
                                        17 East 96th Street
                                        Apt. 9A New York, NY
                                        10128 Phone: (212)
                                        534-5970

Either party may change such party's address for notices by notice duly given
pursuant hereto.

     11. Attorneys' Fees. In the event judicial determination or arbitration (as
provided in Section 22) is necessary for any dispute arising as to the parties'
rights and obligations hereunder, the Company shall pay to the Executive his
costs incurred (including attorney's fees) in deciding such dispute provided
that he has substantially prevailed.

     12. No Mitigation or Offset. The Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise. The Company shall not be entitled to set off
against the amounts payable to the Executive under this Agreement any amounts
earned by the Executive in other employment after termination of employment with
the Company, or any amounts which might have been earned by the Executive in
other employment had such other employment been sought.

                                      -7-
<PAGE>

     13. Termination of Prior Agreements. This Agreement terminates and
supersedes any and all prior agreements and understandings between the parties
with respect to employment or with respect to the compensation of the Executive
by the Company.

     14. Assignment; Successors. This Agreement is personal in its nature and
neither of the parties hereto shall, without the consent of the other, assign or
transfer this Agreement or any rights or obligations hereunder; provided that,
in the event of the merger, consolidation, transfer, or sale of all or
substantially all of the assets of the Company with or to any other individual
or entity, this Agreement shall, subject to the provisions hereof, be binding
upon and inure to the benefit of such successor and such successor shall
discharge and perform all the promises, covenants, duties, and obligations of
the Company hereunder.

     15. Governing Law. This Agreement and the legal relations thus created
between the parties hereto shall be governed by and construed under and in
accordance with the laws of the State of New York.

     16. Entire Agreement; Headings. This Agreement embodies the entire
agreement of the parties respecting the matters within its scope and may be
modified only in writing. Section headings in this Agreement are included herein
for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.

     17. Waiver; Modification. Failure to insist upon strict compliance with any
of the terms, covenants, or conditions hereof shall not be deemed a waiver of
such term, covenant, or condition, nor shall any waiver or relinquishment of, or
failure to insist upon strict compliance with, any right or power hereunder at
any one or more times be deemed a waiver or relinquishment of such right or
power at any other time or times. This Agreement shall not be modified in any
respect except by a writing executed by each party hereto.

     18. Severability. In the event that a court of competent jurisdiction
determines that any portion of this Agreement is in violation of any statute or
public policy, only the portions of this Agreement that violate such statute or
public policy shall be stricken. All portions of this Agreement that do not
violate any statute or public policy shall continue in full force and effect.
Further, any court order striking any portion of this Agreement shall modify the
stricken terms as narrowly as possible to give as much effect as possible to the
intentions of the parties under this Agreement.

     19. Indemnification; Directors and Officers Insurance. The Company shall
indemnify and hold Executive harmless to the maximum extent permitted by Section
2-418 of the Maryland General Corporations Law or its successor statute. During
the Term and for six years following the date of the Executive's termination as
an officer of the Company, the Company (or any successor thereto) shall provide
comprehensive coverage under the Company's officers and directors insurance
policy (or policies) on substantially the same terms and levels that it provides
to its senior executive officers, at the Company's sole cost.

                                      -8-
<PAGE>

     20. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

     21. Successor Sections. References herein to sections, rules or regulations
of the Code or other applicable law shall be deemed to include any successor
sections, rules or regulations.

     22. Arbitration. Any dispute, claim or controversy arising out of or in
relation to this Agreement, which the Executive and the Company are unable to
resolve shall be determined by the decision of a board of arbitration consisting
of three (3) members (the "Board of Arbitration") selected by the American
Arbitration Association upon application made to it for such purpose by either
the Company or the Executive. The arbitration proceedings shall take place in
New York, New York or such other place as shall be agreed to by the parties. The
Board of Arbitration shall reach and render a decision in writing. In connection
with rendering its decision, the Board of Arbitration shall adopt and follow
such rules and procedures as a majority of the members of the Board of
Arbitration deems necessary or appropriate. Any award shall be rendered on the
basis of the substantive law governing this Agreement and shall be concurred in
by a majority of the arbitrators. To the extent practical, decisions of the
arbitrators shall be rendered no more than thirty (30) calendar days following
commencement of the arbitration proceedings with respect thereto.

     Any decision made by the Board of Arbitration (either prior to or after the
expiration of such thirty (30) calendar day period) shall be final, binding and
conclusive on the Executive and the Company and entitled to be enforced to the
fullest extent permitted by law and entered in any court of competent
jurisdiction. The Company shall bear all of the costs of arbitration, except for
the attorneys' fees incurred by the Executive, which fees shall be subject to
Section 11 hereof.

                [REMAINDER OF THE PAGE LEFT INTENTIONALLY BLANK]

                                      -9-
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by
its duly authorized officer, and the Executive has hereunto signed this
Agreement, as of the date first above written.

                                   ANNALY MORTGAGE MANAGEMENT, INC.

                                   By:    /s/      Michael A.J. Farrell
                                          ----------------------------------
                                                   Michael A.J. Farrell

                                   By:    /s/      Jeremy Diamond
                                          -----------------------------------
                                                   Jeremy Diamond

                                      -10-

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