Document:

<PAGE>

                                                                     EXHIBIT 4.1

                          STOCKHOLDER RIGHTS AGREEMENT

                         THE GREENBRIER COMPANIES, INC.

                                       and

                          EQUISERVE TRUST COMPANY, N.A.

                                  Rights Agent

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

                                RIGHTS AGREEMENT

                          Dated as of July 13, 2004

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

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                                                  Page
-------                                                                                                                  ----
<S>                                                                                                                      <C>
Table of Defined Terms ...............................................................................................   iii

   1     Certain Definitions..........................................................................................     1

   2     Appointment of Rights Agent..................................................................................     4

   3     Issuance of Right Certificates...............................................................................     4

   4     Form of Right Certificates...................................................................................     6

   5     Countersignature and Registration ............................................................................    6

   6     Transfer, Split Up, Combination and Exchange of Right Certificates;
         Mutilated, Destroyed, Lost or Stolen Right Certificates ......................................................    7

   7     Exercise of Rights; Purchase Price; Expiration Date of Rights.................................................    8

   8     Cancellation and Destruction of Right Certificates ...........................................................    9

   9     Reservation and Availability of Capital Shares ...............................................................   10

   10    Preferred Shares Record Date..................................................................................   11

   11    Adjustment of Purchase Price, Number of Shares or Number of Rights............................................   11

   12    Certificate of Adjusted Purchase Price or Number of Shares....................................................   17

   13    Consolidation, Merger, Statutory Plan of Exchange or Sale or Transfer of Assets or
         Earning Power ................................................................................................   18

   14    Fractional Rights and Fractional Shares.......................................................................   20

   15    Rights of Action..............................................................................................   21

   16    Agreement of Right Holders ...................................................................................   22

   17    Right Holders and Right Certificate Holders Not Deemed Stockholders...........................................   22

   18    Concerning the Rights Agent...................................................................................   23

   19    Merger or Consolidation or Change of Name of Rights Agent.....................................................   23

   20    Duties of Rights Agent .......................................................................................   24

   21    Change of Rights Agent .......................................................................................   26
</TABLE>

                                       i

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<TABLE>
<S>                                                                                                                       <C>

   22    Issuance of New Right Certificates ...........................................................................   27

   23    Redemption and Termination ...................................................................................   27

   24    Exchange .....................................................................................................   28

   25    Notice of Certain Events .....................................................................................   29

   26    Notices.......................................................................................................   30

   27    Supplements and Amendments ...................................................................................   30

   28    Successors ...................................................................................................   31

   29    Benefits of Agreement ........................................................................................   31

   30    Severability .................................................................................................   31

   31    Determinations and Actions by the Board of Directors, etc.....................................................   31

   32    Governing Law ................................................................................................   31

   33    Counterparts .................................................................................................   32

   34    Descriptive Headings..........................................................................................   32

   35    Force Majeure.................................................................................................   32
</TABLE>

Exhibit A -- Rights and Preferences of Series A Preferred Stock

Exhibit B -- Form of Right Certificate

Exhibit C -- Form of Summary of Rights

                                       ii

<PAGE>

                             TABLE OF DEFINED TERMS

<TABLE>
Term Defined                                                                           Section
------------                                                                           -------
<S>                                                                                  <C>
Acquiring Person                                                                          1(a)

Adjustment Shares                                                                    11(a)(ii)

Affiliate                                                                                 1(b)

Agreement                                                                                Intro

Associate                                                                                 1(b)

Beneficial Owner; beneficially own                                                        1(c)

Board of Directors                                                                       Intro

Business Day                                                                              1(d)

Close of Business                                                                         1(e)

Common Shares                                                                             1(f)

common stock equivalents                                                            11(a)(iii)

Company                                                                                  Intro

Company (Following a Section 13 event)                                                   13(a)

current per share market price of the Common Shares                                   11(d)(i)

current per share market price of the Preferred Shares                               11(d)(ii)

Distribution Date                                                                         3(a)

equivalent preferred shares                                                              11(b)

Exchange Act                                                                              1(b)

Exchange Date                                                                             7(b)

Exchange Ratio                                                                           24(a)

Final Expiration Date                                                                     7(b)

Grandfathered Percentage                                                                  1(a)

Grandfathered Stockholders                                                                1(a)
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                                  <C>
NASDAQ                                                                                11(d)(i)

Person                                                                                    1(g)

Plan (Employee Benefit Plan)                                                              1(a)

Preferred Shares                                                                          1(h)

Principal Party                                                                          13(b)

Purchase Price                                                                            1(i)

Record Date                                                                              Intro

Redemption Date                                                                           7(b)

Redemption Price                                                                         23(a)

Registered Common Shares                                                                 13(b)

Right                                                                                    Intro

Right Certificate                                                                         3(a)

Rights Agent                                                                             Intro

Section 11(a)(ii) event                                                              11(a)(ii)

Section 13 event                                                                         13(a)

Shares Acquisition Date                                                                   1(j)

Subsidiary                                                                                1(k)

Trading Day                                                                           11(d)(i)
</TABLE>

                                       iv

<PAGE>

                                RIGHTS AGREEMENT

         This Rights Agreement (the "Agreement") dated as of July 13, 2004,
between The Greenbrier Companies, Inc., a Delaware corporation (the "Company"),
and EquiServe Trust Company, N.A., a national banking association, organized
and existing under the laws of the United States (the "Rights Agent");

                                   WITNESSETH:

         WHEREAS, on July 13, 2004, the Board of Directors of the Company (the
"Board of Directors") authorized and declared a dividend distribution of certain
stock purchase rights to Company stockholders of record at the Close of Business
(as defined) on July 26, 2004 pursuant to a Rights Agreement dated as of July
13, 2004, between the Company and the Rights Agent (the "Rights Agreement");

         WHEREAS the Board of Directors has authorized and declared a dividend
distribution of one right (a "Right") for each Common Share (as defined) of the
Company outstanding at the Close of Business on July 26, 2004 (the "Record
Date"), upon the terms and subject to the conditions herein set forth;

         WHEREAS each such Right shall represent the right to purchase one
one-hundredth of a share of Series A Preferred Stock, $0.001 par value, of the
Company which shall have the rights and preferences set forth in attached
Exhibit A; and

         WHEREAS the Board of Directors has further authorized the issuance of
one Right with respect to each Common Share that shall become outstanding
between the Record Date and the earliest of the Distribution Date, the
Redemption Date and the Final Expiration Date (as such terms are defined in
Sections 3 and 7);

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

         Section 1. Certain Definitions. For purposes of this Agreement, the
following terms have the meanings indicated:

(a) "Acquiring Person" shall mean any Person (as defined) who shall be the
Beneficial Owner (as defined) of 12 percent or more of the Common Shares of the
Company then outstanding; subject to the exceptions stated in this Section 1(a).
An Acquiring Person shall not include (i) the Company, any Subsidiary of the
Company, any employee benefit plan ("Plan") of the Company or of a Subsidiary of
the Company, or any Person holding Common Shares for or pursuant to the terms of
any such Plan or (ii) any Person who as of the Record Date is the Beneficial
Owner of 12 percent or more of the Common Shares then outstanding (such Persons
shall be hereinafter referred to individually as a "Grandfathered Stockholder"
and such Beneficial Ownership percentage of each Grandfathered Stockholder as of
the Record Date shall be referred to as such stockholder's "Grandfathered
Percentage"), unless and until such Person shall thereafter acquire Beneficial
Ownership of additional Common Shares (other than an acquisition of Common
Shares as a result of a stock dividend, stock split or similar transaction
effected by the Company in which all holders of Common Shares are treated

                                       1

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equally), at which time such Person shall be deemed to be an Acquiring Person.
No Person shall become an Acquiring Person as the result of an acquisition of
Common Shares by the Company which, by reducing the number of Common Shares
outstanding, increases the proportionate number of Common Shares beneficially
owned by such Person to 12 percent or more of the Common Shares then outstanding
(or with respect to a Grandfathered Stockholder, more than such stockholder's
Grandfathered Percentage); provided, however, that if a Person shall become the
Beneficial Owner of 12 percent or more of the Common Shares then outstanding (or
with respect to a Grandfathered Stockholder in excess of such Person's
Grandfathered Percentage) by reason of such share acquisitions by the Company,
and thereafter such Person becomes the Beneficial Owner of any additional Common
Shares, then such Person shall be deemed to be an Acquiring Person unless upon
the consummation of the acquisition of such additional Common Shares such Person
does not own 12 percent or more of the Common Shares then outstanding (or with
respect to a Grandfathered Stockholder in excess of such Person's Grandfathered
Percentage). If the Board of Directors determines in good faith that a Person
who would otherwise be an Acquiring Person became such inadvertently (including,
without limitation, because (A) such Person was unaware that it beneficially
owned a percentage of the Common Shares that would otherwise cause such Person
to be an Acquiring Person or (B) such Person was aware of the extent of its
Beneficial Ownership of Common Shares but had no actual knowledge of the
consequences of such Beneficial Ownership under this Agreement) and without any
intention of changing or influencing control of the Company, and if such Person
as promptly as practicable divested or divests itself of Beneficial Ownership of
a sufficient number of Common Shares so that such Person would no longer be an
Acquiring Person, then such Person shall not be deemed to be or to have become
an Acquiring Person by reason of the acquisitions to which the Board's
determination applies, for any purposes of this Agreement. For purposes of this
Section 1(a), in determining the percentage of the outstanding Common Shares
with respect to which a Person is the Beneficial Owner (A) all shares as to
which such Person is deemed the Beneficial Owner shall be deemed outstanding and
(B) shares which are subject to issuance upon the exercise or conversion of
outstanding conversion rights, rights, warrants and options other than those
referred to in (A) shall not be deemed outstanding. Any determination made by
the Board of Directors as to whether any Person is or is not an Acquiring Person
shall be conclusive and binding upon all holders of Rights.

         (b) "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as in
effect on the date hereof; provided, however, that no Person who is an officer
or director of the Company shall be deemed an Affiliate or an Associate of any
other officer or director of the Company solely as a result of his or her
position as an officer or director of the Company.

         (c) A Person shall be deemed the "Beneficial Owner" of and shall be
deemed to "beneficially own" any securities:

                  (i) which such Person or any of such Person's Affiliates or
     Associates beneficially owns, directly or indirectly, for purposes of
     Section 13(d) of the Exchange Act and Regulation 13D-G thereunder (or any
     comparable or successor law or regulation), in each case as in effect on
     the date hereof; or

                                       2

<PAGE>

                  (ii) which such Person or any of such Person's Affiliates or
     Associates has (A) the right to acquire (whether such right is exercisable
     immediately or only after the passage of time or the fulfillment of a
     condition or both) pursuant to any agreement, arrangement or understanding
     (other than customary arrangements with and between underwriters and
     selling group members with respect to a bona fide public offering of
     securities), or upon the exercise of conversion rights, exchange rights,
     rights (other than the Rights), warrants or options, or otherwise;
     provided, however, that a Person shall not be deemed the Beneficial Owner
     of, or to beneficially own, securities tendered pursuant to a tender or
     exchange offer made by or on behalf of such Person or any of such Person's
     Affiliates or Associates until such tendered securities are accepted for
     purchase or exchange; or (B) the right to vote, alone or in concert with
     others, pursuant to any agreement, arrangement or understanding; provided,
     however, that a Person shall not be deemed the Beneficial Owner of, or to
     beneficially own, any security under this clause (B) if the agreement,
     arrangement or understanding to vote such security (1) arises solely from a
     revocable proxy given to such Person or any of such Person's Affiliates or
     Associates in response to a public proxy solicitation made pursuant to, and
     in accordance with, the applicable rules and regulations of the Exchange
     Act and (2) is not also then reportable on Schedule 13D under the Exchange
     Act (or any comparable or successor report); or

                  (iii) which are beneficially owned, directly or indirectly, by
     any other Person (or any Affiliate or Associate of such other Person) with
     which such Person or any of such Person's Affiliates or Associates has any
     agreement, arrangement or understanding (other than customary arrangements
     with and between underwriters and selling group members with respect to a
     bona fide public offering of securities) for the purpose of acquiring,
     holding, voting (other than voting pursuant to a revocable proxy as
     described in the proviso to Section l(c)(ii)(B)) or disposing of any
     securities of the Company.

Notwithstanding the foregoing, for purposes of this Agreement, neither Alan
James nor William A. Furman shall be deemed to be the Beneficial Owner of any
Common Shares owned by the other solely by virtue of the restrictions on
transfer and buy-sell provisions contained in Section 5 of that certain
Stockholders' Agreement between Alan James and William A. Furman dated July 1,
1994 (as amended).

         (d) "Business Day" shall mean any day other than a Saturday, Sunday or
a day on which the offices of the Rights Agent are scheduled to be closed.

         (e) "Close of Business" on any given date shall mean 5 p.m., Portland,
Oregon time, on such date; provided, however, that if such date is not a
Business Day, it shall mean 5 p.m., Portland, Oregon time, on the next
succeeding Business Day.

         (f) "Common Shares" when used with reference to the Company (or without
express reference to another Person) shall mean shares of Common Stock, $0.001
par value, of the Company or any other shares of capital stock of the Company
into which the Common Shares are reclassified or changed. "Common Shares" when
used with reference to any Person other than the Company shall mean shares of
the common stock of such Person (or other class of

                                       3

<PAGE>

equity securities or equity interests) having power to control or direct the
management of such Person or, if such Person is a Subsidiary of another Person,
of the Person which ultimately controls such first-mentioned Person and which
has issued and outstanding such common stock (or such other class of equity
securities or equity interests).

         (g) "Person" shall mean any individual, firm, partnership, corporation,
association, group (as such term is used in Rule 13d-5 under the Exchange Act)
or other entity, and shall include any successor (by merger or otherwise) of
such entity.

         (h) "Preferred Shares" shall mean shares of Series A Preferred Stock,
$0.001 par value, of the Company.

         (i) "Purchase Price" shall mean the price to be paid for each one
one-hundredth of a Preferred Share pursuant to the exercise of a Right, which
price is, as of the date hereof, as set forth in Section 7(c). The Purchase
Price is subject to adjustment from time to time as set forth in Sections 11 and
13.

         (j) "Shares Acquisition Date" shall mean the first date of public
announcement (which, for the purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 13(d) under the Exchange Act) by
the Company or an Acquiring Person that an Acquiring Person has become such.

         (k) "Subsidiary" shall mean, with reference to any Person, any
corporation or other entity of which an amount of the voting securities
sufficient to elect at least a majority of the directors of such corporation or
the members of the governing body of such other entity, as the case may be, is
beneficially owned, directly or indirectly, by such Person or otherwise
controlled by such Person.

         Section 2. Appointment of Rights Agent. The Company hereby appoints the
Rights Agent to act as agent for the Company in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable, upon ten (10) days' prior written notice to the Rights
Agent. The Rights Agent shall have no duty to supervise, and in no event be
liable for, the acts or omissions of any such co-Rights Agent.

         Section 3. Issuance of Right Certificates.

         (a) Until the earlier of the Close of Business (i) on the tenth day
after the Shares Acquisition Date or (ii) on the tenth Business Day (or, with
respect to (i) or (ii), such later date as may be determined by the Board of
Directors prior to such time as any Person becomes an Acquiring Person) after
the date of the commencement by any Person (other than the Company, any
Subsidiary of the Company, any Plan of the Company or of any Subsidiary of the
Company, or any entity holding Common Shares of the Company for or pursuant to
the terms of any such Plan) of, or of the first public announcement of the
intention of any Person (other than the Company, any Subsidiary of the Company,
any Plan of the Company or of any Subsidiary of the Company, or any entity
holding Common Shares of the Company for or pursuant to the terms of any such
Plan) to commence, a tender or exchange offer the consummation of which would
result in any Person becoming an Acquiring Person, including any such date which
is after the

                                       4

<PAGE>

date of this Agreement and prior to the issuance of the Rights (the earlier of
such dates described in clauses (i) and (ii) being herein referred to as the
"Distribution Date"), (x) the Rights will be evidenced by the certificates for
Common Shares of the Company (which certificates shall also be deemed to be
Right Certificates) or, as the case may be, certificates issued subsequent to
the Record Date and bearing the legend set forth in Section 3(c) (and, in
neither case, by separate Right Certificates) and the record holders of such
certificates for Common Shares shall be the record holders of the Rights
represented thereby and (y) the Rights and the right to receive Right
Certificates will be transferable only simultaneously with and together with the
transfer of Common Shares of the Company. Until the Distribution Date (or the
earlier of the Redemption Date or the Final Expiration Date), the surrender for
transfer of such certificates for Common Shares shall also constitute the
surrender for transfer of the Rights associated with the Common Shares
represented thereby. As soon as practicable after the Distribution Date, after
notification by the Company, the Rights Agent will send, by first-class,
postage-prepaid mail, to each record holder of Common Shares of the Company as
of the Close of Business on the Distribution Date, at the address of such holder
shown on the records of the Company, a Right Certificate, in substantially the
form of Exhibit B hereto, evidencing one Right for each Common Share so held. As
of the Distribution Date, the Rights will be evidenced solely by such Right
Certificates and may be transferred by the transfer of the Right Certificates as
permitted hereby, separately and apart from any transfer of one or more Common
Shares, and the holders of such Right Certificates as listed in the records of
the Company or any transfer agent or registrar for the Rights shall be the
record holders thereof.

         (b) The Company will make available a Summary of the Rights in
substantially the form attached hereto as Exhibit C (the "Summary of Rights"),
to each record holder of Common Shares of the Company who may so request from
time to time.

         (c) Rights shall be issued in respect of all Common Shares of the
Company which are issued after the Record Date but prior to the earliest of the
Distribution Date, the Redemption Date, the Exchange Date or the Final
Expiration Date. Certificates for such Common Shares shall also be deemed to be
certificates for Rights, and shall bear the following legend:

     This certificate also evidences and entitles the holder hereof to certain
     Rights as set forth in a Rights Agreement between The Greenbrier Companies,
     Inc. (the "Company"), and EquiServe Trust Company, N.A. (the "Rights
     Agent"), dated as of July 13, 2004 (the "Rights Agreement"), the terms of
     which are hereby incorporated herein by reference and a copy of which is on
     file at the principal executive offices of the Company. Under certain
     circumstances, as set forth in the Rights Agreement, such Rights will be
     evidenced by separate certificates and will no longer be evidenced by this
     certificate. The Company will mail to the holder of this certificate a copy
     of the Rights Agreement without charge after receipt of a written request
     therefor. Under certain circumstances, Rights beneficially owned by an
     Acquiring Person or any Affiliate or Associate thereof (as such terms are
     defined in the Rights Agreement) and any subsequent holder of such Rights
     may become null and void.

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<PAGE>

         (d) Certificates for Common Shares, if any, issued after the
Distribution Date but prior to the earlier of the Redemption Date or the Final
Expiration Date shall bear the following legend:

This certificate does not evidence any Right issued pursuant to the terms of a
Rights Agreement between The Greenbrier Companies, Inc. (the "Company"), and
EquiServe Trust Company, N.A. (the "Rights Agent"), dated as of July 13, 2004
(the "Rights Agreement").

         Section 4. Form of Right Certificates. The Right Certificates (and the
forms of election to purchase, assignment and certificate to be printed on the
reverse thereof), when, as and if issued, shall be substantially the same as
Exhibit B hereto and may have such marks of identification or designation and
such legends, summaries or endorsements printed thereon as the Company may deem
appropriate, which do not affect the duties or responsibilities of the Rights
Agent, and as are not inconsistent with the provisions of this Agreement, or as
may be required to comply with any applicable law or with any rule or regulation
made pursuant thereto or with any rule or regulation of any stock exchange on
which the Common Shares of the Company or the Rights may from time to time be
listed, or to conform to usage. Subject to the provisions of Section 11 and
Section 22 hereof, the Right Certificates, whenever issued, which are issued in
respect of Common Shares which were issued and outstanding as of the Close of
Business on the Distribution Date, shall be dated as of the Close of Business on
the Distribution Date, and on their face shall entitle the holders thereof to
purchase such number of Preferred Shares (including fractional shares which are
integral multiples of one one-hundredth of a share) as shall be set forth
therein at the price per one one-hundredth of a Preferred Share set forth
therein, but the amount and type of securities purchasable upon exercise of each
Right and the Purchase Price shall be subject to adjustment as provided herein.

         Section 5. Countersignature and Registration.

         (a) The Right Certificates shall be executed on behalf of the Company
by its President, or any Vice President, either manually or by facsimile
signature, and have affixed thereto the Company's seal or a facsimile thereof
which shall be attested by the Secretary, or an Assistant Secretary, of the
Company, either manually or by facsimile signature. The Right Certificates shall
be countersigned manually or by facsimile signature by the Rights Agent and
shall not be valid for any purpose unless so countersigned. In case any officer
of the Company who shall have signed any of the Right Certificates shall cease
to be such officer of the Company before countersignature by the Rights Agent
and issuance and delivery by the Company, such Right Certificates, nevertheless,
may be countersigned by the Rights Agent, and issued and delivered by the
Company with the same force and effect as though the person who signed such
Right Certificates had not ceased to be such officer of the Company; and any
Right Certificate may be signed on behalf of the Company by any person who, at
the actual date of the execution of such Right Certificate, shall be a proper
officer of the Company to sign such Right Certificate, although at the date of
the execution of this Agreement any such Person was not such an officer.

         (b) Following the Distribution Date and receipt by the Rights Agent of
written notice and a list of record holders of Rights referred to in Section
3(a) hereof, the Rights Agent will keep or cause to be kept at its stockholder
services office designated pursuant to Section 26

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<PAGE>

hereof, books for registration and transfer of the Right Certificates issued
hereunder. Such books shall show the names and addresses of the respective
holders of the Right Certificates, the number of Rights evidenced on its face by
each of the Right Certificates and the date of each of the Right Certificates.

         Section 6. Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.

         (a) Subject to the provisions of Sections 7(f) and 14 hereof, at any
time after the Close of Business on the Distribution Date, and at or prior to
the Close of Business on the earlier of the Redemption Date or the Final
Expiration Date, any Right Certificate or Right Certificates may be transferred,
split up, combined or exchanged for another Right Certificate or Right
Certificates, entitling the registered holder to purchase a like number of
Preferred Shares as the Right Certificate or Right Certificates surrendered then
entitled such holder to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Right Certificate shall make such request in
writing delivered to the Rights Agent, and shall surrender the Right Certificate
or Right Certificates to be transferred, split up, combined or exchanged at the
office of the Rights Agent with the form of assignment on the reverse side
thereof (or with a written instrument of transfer in form satisfactory to the
Company and the Rights Agent enclosed with such Right Certificate), executed by
the registered holder thereof or the holder's attorney authorized in writing,
and with such signature guaranteed. Neither the Rights Agent nor the Company
shall be obligated to take any action whatsoever with respect to the transfer of
any such surrendered Right Certificate until the certificate set forth following
the form of assignment on the reverse side of such Right Certificate shall have
been completed and executed by the registered holder thereof or the holder's
attorney authorized in writing, and the Company shall have been provided such
additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) of the Rights represented by such Right Certificate or the
Affiliates or Associates of such Beneficial Owner (or former Beneficial Owner)
as the Company or the Rights Agent shall request. Upon receipt of such executed
form of assignment and certificate and of such additional evidence, if
requested, the Rights Agent shall countersign and deliver to the person entitled
thereto a Right Certificate or Right Certificates, as the case may be, as so
requested. The Company may require payment of a sum sufficient to cover any tax
or governmental charge that may be imposed in connection with any transfer,
split up, combination or exchange of Right Certificates. The Rights Agent shall
not be required to process any transaction unless and until it receives written
evidence that all taxes and governmental charges have been paid in full.

         (b) Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Right Certificate, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to them, and, at the Company's request,
reimbursement to the Company and the Rights Agent of all reasonable expenses
incidental thereto, and upon surrender to the Rights Agent and cancellation of
the Right Certificate if mutilated, the Company shall issue and deliver a new
Right Certificate of like tenor to the Rights Agent for delivery to the
registered owner in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.

                                       7

<PAGE>

         Section 7. Exercise of Rights; Purchase Price; Expiration Date of
Rights.

         (a) Until the Distribution Date, no Right may be exercised.

         (b) The registered holder of any Right Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein) in whole or in
part at any time after the Distribution Date upon surrender of the Right
Certificate, with the form of election to purchase on the reverse side thereof
and certificate thereon duly executed (with signatures duly guaranteed), to the
Rights Agent at the office or agency of the Rights Agent designated for such
purpose, together with payment of the Purchase Price with respect to each Right
exercised, at or prior to the earliest of (i) the Close of Business on July 26,
2014 (the "Final Expiration Date"), (ii) the consummation of a transaction
contemplated by Section 13, (iii) the time at which such Rights are exchanged
(the "Exchange Date") as provided in Section 24, or (iv) the time at which the
Rights are redeemed (the "Redemption Date") as provided in Section 23.

         (c) The Purchase Price for each one one-hundredth of a Preferred Share
pursuant to the exercise of a Right shall initially be $100, and shall be
payable in lawful money of the United States of America in accordance with
Section 7(d) hereof. The Purchase Price and the number of Preferred Shares to be
acquired upon exercise of a Right shall be subject to adjustment from time to
time as provided in Sections 11 and 13.

         (d) Upon receipt of a Right Certificate representing exercisable
Rights, with the form of election to purchase and form of certificate thereon
duly executed, accompanied by payment of the Purchase Price for the shares to be
purchased and an amount equal to any applicable tax or governmental charge
required to be paid by the holder of such Right Certificate in accordance with
Section 9 in cash, or by bank certified check or bank draft payable to the order
of the Company, and such additional evidence of the identity of the Beneficial
Owner (or former Beneficial Owner) of the Rights represented by such Right
Certificate or the Affiliates or Associates thereof as the Company may
reasonably request, the Rights Agent shall thereupon promptly (i) requisition
from any transfer agent of the Preferred Shares certificates for the number of
Preferred Shares to be purchased and the Company hereby irrevocably authorizes
its transfer agent to comply with all such requests, and/or, as provided in
Section 14, requisition from the depositary agent depositary receipts
representing such number of one one-hundredths of a Preferred Share as are to be
purchased (in which case certificates for the Preferred Shares represented by
such receipts shall be deposited by the transfer agent with the depositary
agent) and the Company will direct the depositary agent to comply with such
request, (ii) when appropriate, requisition from the Company the amount of cash
to be paid in lieu of issuance of fractional shares in accordance with Section
14, (iii) promptly after receipt of such certificates or depositary receipts,
cause the same to be delivered to or upon the order of the registered holder of
such Right Certificate, registered in such name or names as may designated by
such holder and (iv) when appropriate, after receipt, promptly deliver such cash
to or upon the order of the registered holder of such Right Certificate.
Notwithstanding the foregoing provisions of this Section 7(d), the Company may
suspend the issuance of Preferred Shares (or, following the occurrence of a
Section 11(a)(ii) event, Common Shares and/or other securities) upon exercise of
Rights for a reasonable period, not in excess of 90 days, during which the
Company seeks to register under the Securities Act of 1933, as amended, and any
applicable securities law of any jurisdiction, the Preferred Shares (or,
following the occurrence of a Section 11(a)(ii) event,

                                       8

<PAGE>
Common Shares and/or other securities) to be issued pursuant to the Rights;
provided, however, that nothing contained in this Section 7(d) shall relieve the
Company of its obligations under Section 9(c).

         (e) In case the registered holder of any Right Certificate shall
exercise less than all the Rights evidenced thereby, a new Right Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued
by the Rights Agent to the registered holder of such Right Certificate or to the
holder's duly authorized assigns, subject to the provisions of Section 6 and
Section 14.

         (f) Notwithstanding anything in this Agreement to the contrary, upon
the occurrence of any of the events described in Sections 11(a)(ii) and 13(a),
any Rights beneficially owned by (i) an Acquiring Person or any Affiliate or
Associate of an Acquiring Person, (ii) a transferee of an Acquiring Person or of
any Affiliate or Associate of such Acquiring Person who becomes a transferee
after the Acquiring Person becomes such (other than a transferee in a
transaction described in Section 23(b)) or (iii) a transferee who acquired such
Rights from an Acquiring Person or an Affiliate or Associate of an Acquiring
Person prior to or concurrently with the Acquiring Person becoming such in a
transaction which the Board of Directors has determined to be part of an
arrangement which has as a primary purpose or effect the avoidance of this
Section 7(f), shall become null and void, and any holder of such Rights (whether
or not such holder is an Acquiring Person or an Affiliate or Associate of an
Acquiring Person) shall thereafter have no right to exercise such Rights under
any provision of this Agreement or otherwise. Any Right Certificate issued
pursuant to Section 3 that represents Rights beneficially owned by an Acquiring
Person or any Affiliate or Associate thereof and any Right Certificate issued at
any time upon the transfer of any Rights to an Acquiring Person or any Affiliate
or Associate thereof or to any nominee of such Acquiring Person, Affiliate or
Associate, and any Right Certificate issued pursuant to Sections 6 or 11 upon
transfer, exchange, replacement or adjustment of any other Right Certificate
referred to in this sentence, shall or shall be deemed to contain the following
legend:

     The Rights represented by this Right Certificate are or were beneficially
     owned by a Person who was or became an Acquiring Person or Affiliate or
     Associate of an Acquiring Person (as such terms are defined in the Rights
     Agreement). This Right Certificate and the Rights represented hereby may
     become void in the circumstances specified in the Rights Agreement.

         The Company shall notify the Rights Agent when this Section 7(f)
applies and shall use all reasonable efforts to ensure that the provisions of
this Section 7(f) are complied with, but neither the Company nor the Rights
Agent shall have any liability to any holder of Rights or any other Person as a
result of the Company's failure to make any determination under this Section
7(f) with respect to an Acquiring Person or its Affiliates, Associates or
transferees.

         Section 8. Cancellation and Destruction of Right Certificates. All
Right Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by
any of

                                       9

<PAGE>
the provisions of this Agreement. The Company shall deliver to the Rights Agent
for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any other Right Certificate purchased or acquired by the Company
otherwise than upon the exercise thereof. The Rights Agent shall deliver all
canceled Right Certificates to the Company, or shall, at the written request of
the Company, destroy such canceled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

         Section 9. Reservation and Availability of Capital Shares.

         (a) The Company covenants and agrees that it will cause to be reserved
and kept available out of its authorized and unissued Preferred Shares (and,
will use its best efforts, following the occurrence of a Section 11(a)(ii)
event, to cause to be reserved and kept available out of its authorized and
unissued Common Shares and/or other securities), the number of Preferred Shares
(and, following the occurrence of a Section 11(a)(ii) event, the number of
Common Shares and/or other securities) as will from time to time be sufficient
to permit the exercise in full of all outstanding Rights.

         (b) So long as the Preferred Shares (and, following the occurrence of a
Section 11(a)(ii) event, Common Shares and/or other securities) issuable upon
the exercise of Rights may be listed on any national securities exchange, the
Company shall use its best efforts to cause, from and after such time as the
Rights become exercisable, all shares issued or reserved for such issuance to be
listed on such exchange upon official notice of issuance upon such exercise.

         (c) If necessary to permit the issuance of shares and/or other
securities pursuant to the Rights, the Company will use its best efforts from
and after the time the Rights become exercisable to register such shares and/or
other securities under the Securities Act of 1933, as amended, and any
applicable U.S. state securities laws and to keep such registration effective
until the Final Expiration Date.

         (d) The Company covenants and agrees that it will take all such action
as may be necessary to ensure that all Preferred Shares (and, following the
occurrence of a Section 11(a)(ii) event, Common Shares and/or other securities)
delivered upon exercise of Rights shall, at the time of delivery of the
certificates for such shares or other securities (subject to payment of the
Purchase Price), be duly and validly authorized and issued and fully paid and
nonassessable.

         (e) The Company further covenants and agrees that it will pay when due
and payable any and all federal and state transfer taxes and charges which may
be payable in respect of the issuance or delivery of the Right Certificates or
of any Preferred Shares (or Common Shares and/or other securities as the case
may be) upon the exercise of Rights. The Company shall not, however, be required
to pay any transfer tax which may be payable in respect of any transfer or
delivery of Right Certificates to a Person other than, or the issuance or
delivery of certificates for the Preferred Shares (or Common Shares and/or other
securities, as the case may be) in a name other than that of, the registered
holder of the Right Certificate evidencing Rights surrendered for exercise or to
issue or deliver any certificates for Preferred Shares (or Common Shares and/or
other securities, as the case may be) upon the exercise of any Rights until any
such tax shall have been paid (any such tax being payable by the holder of such
Right Certificate at

                                       10

<PAGE>

the time of surrender) or until it has been established to the Company's
satisfaction that no such tax is due.

         Section 10. Preferred Shares Record Date. Each Person in whose name any
certificate for Preferred Shares (or Common Shares and/or other securities, as
the case may be) is issued upon the exercise of Rights shall for all purposes be
deemed to have become the holder of record of the Preferred Shares (or Common
Shares and/or other securities, as the case may be) represented thereby on, and
such certificate shall be dated, the date upon which the Right Certificate
evidencing such Rights was duly surrendered and payment of the Purchase Price
(and any applicable taxes and governmental charges) was made; provided, however,
that if the date of such surrender and payment is a date upon which the transfer
books for the Preferred Shares (or Common Shares and/or other securities, as the
case may be) are closed, such Person shall be deemed to have become the record
holder of such shares on, and such certificate shall be dated, the next
succeeding Business Day on which such transfer books are open.

         Section 11. Adjustment of Purchase Price, Number of Shares or Number of
Rights. The Purchase Price, the number and kind of shares which may be purchased
upon exercise of a Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

                  (a) (i) In the event the Company shall at any time after the
     date of this Agreement and prior to the Close of Business on the earliest
     of the Redemption Date, the Exchange Date, or the Final Expiration Date (A)
     declare or pay any dividend on the Preferred Shares payable in Preferred
     Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the
     outstanding Preferred Shares into a smaller number of Preferred Shares or
     (D) issue any shares of its capital stock in a reclassification of the
     Preferred Shares (including any such reclassification in connection with a
     consolidation or merger in which the Company is the continuing or surviving
     corporation), then and in each such event, the Purchase Price in effect at
     the time of the record date for such dividend or on the effective date of
     such subdivision, combination or reclassification, and the number and kind
     of Preferred Shares or capital stock, as the case may be, issuable on such
     date, shall be proportionately adjusted so that the holder of any Right
     exercised after such time shall be entitled to receive the aggregate number
     and kind of Preferred Shares or capital stock, as the case may be, which,
     if such Right had been exercised immediately prior to such date and at a
     time when the Right was exercisable and the transfer books of the Company
     were open, the holder would have owned upon such exercise and been entitled
     to receive by virtue of such dividend, subdivision, combination or
     reclassification. If an event occurs which would require an adjustment
     under both this Section 11(a)(i) and Section 11(a)(ii), the adjustment
     provided for in this Section 11(a)(i) shall be in addition to, and shall be
     made prior to, any adjustment required pursuant to Section 11(a)(ii).

                  (ii) Subject to Section 24, in the event that any Person,
     alone or together with its Affiliates and Associates, shall become an
     Acquiring Person (except in a transaction to which the provisions of
     Section 13(a) hereof apply), then, upon the occurrence of such event (a
     "Section 11(a)(ii) event"), proper provision shall be made so that each
     holder of a Right, except as provided in Section 7(f) hereof, shall
     thereafter have a right to receive for each Right, upon exercise thereof in
     accordance with the terms

                                       11

<PAGE>

     of this Agreement and payment of the then-current Purchase Price, in lieu
     of one one-hundredth of a Preferred Share, such number of Common Shares of
     the Company as shall equal the result obtained by multiplying the
     then-current Purchase Price by the then number of one one-hundredths of a
     Preferred Share for which a Right was exercisable immediately prior to the
     first occurrence of a Section 11(a)(ii) event, and dividing that product by
     50 percent of the current per share market price (determined pursuant to
     Section 11(d)) for Common Shares on the date of such first occurrence (such
     number of shares being hereinafter referred to as the "Adjustment Shares"),
     provided that such provision shall not be effective until such time as the
     Rights are no longer subject to redemption pursuant to Section 23(a).

                  (iii) In lieu of issuing Common Shares in accordance with
     Section 11(a)(ii), the Company may, if the Board of Directors determines
     that such action is necessary or appropriate and not contrary to the
     interest of holders of Rights, and, in the event that the number of Common
     Shares which are authorized by the Company's Restated Certificate of
     Incorporation (as the same may be amended from time to time prior to the
     Final Expiration Date) but not outstanding or reserved for issuance for
     purposes other than upon exercise of the Rights is not sufficient to permit
     the exercise in full of the Rights in accordance with Section 11(a)(ii),
     the Company shall, with respect to each Right, make adequate provision to
     substitute for all or a portion of the Adjustment Shares upon payment of
     the applicable Purchase Price (A) cash, (B) other equity securities of the
     Company (including, without limitation, shares of preferred stock or units
     of preferred stock having the same value as Common Shares (such shares or
     units of preferred stock, "common stock equivalents")), (C) debt securities
     of the Company, (D) other assets or (E) any combination of the foregoing,
     having an aggregate value equal to the Adjustment Shares for which
     substitution is made. To the extent that the Company determines that some
     action is to be taken pursuant to this Section 11(a)(iii), the Company
     shall provide, subject to Section 7(f) hereof, that such action shall apply
     uniformly to all outstanding Rights.

         (b) In the event that the Company shall at any time after the Close of
Business on the Record Date and prior to the Close of Business on the earliest
of the Redemption Date, the Exchange Date, or the Final Expiration Date fix a
record date prior to the Redemption Date, the Exchange Date, or the Final
Expiration Date for the issuance of rights, options or warrants to all holders
of Preferred Shares entitling them (for a period expiring within 45 calendar
days after such record date) to subscribe for or purchase Preferred Shares (or
shares having the same rights, privileges and preferences as the Preferred
Shares ("equivalent preferred shares")) or securities convertible into Preferred
Shares or equivalent preferred shares, at a price per Preferred Share or per
share of equivalent preferred share (or having an effective price per share on a
converted basis in the case of a security convertible into Preferred Shares or
equivalent preferred shares) less than the current per share market price of the
Preferred Shares (as determined in accordance with Section 11(d)) on such record
date, then the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the number of
Preferred Shares outstanding on such record date plus the number of Preferred
Shares which the aggregate offering price of the total number of Preferred
Shares and/or equivalent preferred shares so to be offered (and/or the aggregate
price of the convertible securities so to be offered) would purchase

                                       12

<PAGE>

at such current market price, and the denominator of which shall be the number
of Preferred Shares outstanding on such record date plus the number of
additional Preferred Shares and/or equivalent preferred shares to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible). In case such subscription price may be paid
by delivery of consideration part or all of which may be in a form other than
cash, the value of such consideration shall be as determined in good faith by
the Board of Directors, whose determination shall be set forth in a statement
filed with the Rights Agent and shall be binding on the Rights Agent and the
holders of the Rights. Preferred Shares owned by or held for the account of the
Company shall not be deemed outstanding for the purpose of any such computation.
Such adjustment shall be made successively whenever such a record date is fixed;
and in the event that such rights, options or warrants are not so issued, the
Purchase Price shall be adjusted to be the Purchase Price which would then be in
effect if such record date had not been fixed.

         (c) In the event that the Company shall at any time after the Close of
Business on the Record Date and prior to the Close of Business on the earliest
of the Redemption Date, the Exchange Date, or the Final Expiration Date fix a
record date for the making of a distribution to all holders of the Preferred
Shares (including any such distribution made in connection with a consolidation
or merger in which the Company is the continuing corporation) of evidences of
indebtedness or assets (other than a regular quarterly cash dividend or a
dividend payable in Preferred Shares) or subscription rights or warrants
(excluding those referred to in Section 11(b)), the Purchase Price to be in
effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the current per share market price per one Preferred
Share (as determined in accordance with Section 11(d)) on such record date, less
the fair market value of the portion of the assets or evidences of indebtedness
so to be distributed or of such subscription rights or warrants applicable to
one Preferred Share, and the denominator of which shall be such current per
share market price per one Preferred Share. Such adjustments shall be made
successively whenever such a record date is fixed; and in the event that such
distribution is not so made, the Purchase Price shall again be adjusted to be
the Purchase Price which would then be in effect if such record date had not
been fixed.

                  (d) (i) For the purpose of any computation hereunder, other
     than computations made pursuant to Section 11(a)(iii) hereof, the "current
     per share market price" of the Common Shares on any date shall be deemed to
     be the average of the daily closing prices per Common Share on each of the
     20 consecutive Trading Days (as such term is hereinafter defined) through
     and including the Trading Day immediately preceding such date; provided,
     however, that in the event the current per share market price of the Common
     Shares is determined during a period following the announcement by the
     issuer of such Common Shares of (A) a dividend or distribution on such
     Common Shares payable in such Common Shares or securities convertible into
     such Common Shares or (B) any subdivision, combination or reclassification
     of such Common Shares, and prior to the expiration of 20 Trading Days after
     the ex-dividend date for such dividend, distribution, subdivision,
     combination or reclassification, then, and in each such case, the current
     market price shall be appropriately adjusted to take into account such
     event. The closing price for each Trading Day shall be the last sale price,
     regular way, or, in case no such sale takes place on such day, the average
     of the closing bid and asked

                                       13

<PAGE>

     prices, regular way, in either case as reported in the principal
     consolidated transaction reporting system with respect to securities listed
     or admitted to trading on the New York Stock Exchange, Inc., or, if the
     Common Shares are not listed or admitted to trading on the New York Stock
     Exchange, Inc., as reported in the principal consolidated transaction
     reporting system with respect to securities listed on the principal
     national securities exchange on which the Common Shares are listed or
     admitted to trading or, if the Common Shares are not listed or admitted to
     trading on any national securities exchange, the last sale price reported
     by the National Market Tier of The Nasdaq Stock Market ("NASDAQ") or such
     other system then in use, or, if no last sale price is reported by any such
     system, the average of the representative closing bid and asked prices as
     quoted on NASDAQ or such other system then in use, or, if on any such date
     the Common Shares are not quoted by any such organization, the average of
     the closing bid and asked prices as furnished by a professional market
     maker making a market in the Common Shares selected by the Board of
     Directors. The term "Trading Day" shall mean a day on which the principal
     national securities exchange on which the Common Shares are listed or
     admitted to trading is open for the transaction of business or, if the
     Common Shares are not listed or admitted to trading on any national
     securities exchange, a day on which NASDAQ or such other system is open.

                  (ii) For the purpose of any computation hereunder, the
     "current per share market price" of the Preferred Shares shall be
     determined in the same manner as set forth above for Common Shares in
     clause (i) of this Section 11(d). If the current per share market price of
     the Preferred Shares cannot be determined in the manner provided above, the
     "current per share market price" of the Preferred Shares shall be
     conclusively deemed to be the current per share market price of the Common
     Shares (appropriately adjusted to reflect any stock split, stock dividend,
     subdivision, combination, reclassification or similar transaction occurring
     after the date hereof) multiplied by one hundred.

         If neither the Common Shares nor the Preferred Shares are publicly held
or so listed or traded, "current per share market price" shall mean the fair
value per share as determined in good faith by the Board of Directors based upon
such appraisals or valuation reports of such independent experts as the Board of
Directors shall in good faith determine appropriate. Any such determination of
"current per share market price" shall be described in a statement filed with
the Rights Agent.

         (e) No adjustment in the Purchase Price shall be required unless such
adjustment would require an increase or decrease of at least 1 percent in the
Purchase Price; provided, however, that any adjustments which by reason of this
Section 11(e) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All calculations under this Section
11 shall be made to the nearest cent or to the nearest ten-thousandth of a
Common Share or other share or one-millionth of a Preferred Share as the case
may be.

         (f) If, as a result of an adjustment made pursuant to Section 11(a) or
Section 13(a), the holder of any Right thereafter exercised shall become
entitled to receive any shares of capital stock other than Preferred Shares, the
number of such other shares so receivable upon exercise of any Right shall be
subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the Preferred Shares

                                       14

<PAGE>

contained in this Section 11 and the provisions of Sections 7, 9, 10, 13 and 14
with respect to the Preferred Shares shall apply on like terms to any such other
shares.

         (g) All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-hundredths of a
Preferred Share purchasable from time to time hereunder upon exercise of the
Rights, all subject to further adjustment as provided herein.

         (h) Unless the Company shall have exercised its election as provided in
Section 11(i) below, upon each adjustment of the Purchase Price as a result of
the calculations made in Sections 11(b) and (c), each Right outstanding
immediately prior to the making of such adjustment shall thereafter evidence the
right to purchase, at the adjusted Purchase Price, that number of one
one-hundredths of a Preferred Share (calculated to the nearest one one-millionth
of a Preferred Shared obtained by (i) multiplying (x) the number of one
one-hundredths of a Preferred Share covered by a Right immediately prior to such
adjustment by (y) the Purchase Price in effect immediately prior to such
adjustment of the Purchase Price and (ii) dividing the product so obtained by
the Purchase Price in effect immediately after such adjustment of the Purchase
Price.

         (i) The Company may elect, on or after the date of any adjustment of
the Purchase Price, to adjust the number of Rights instead of making any
adjustment in the number of Preferred Shares purchasable upon the exercise of a
Right. Each of the Rights outstanding after such adjustment of the number of
Rights shall be exercisable for the number of one one-hundredths of a Preferred
Share for which a Right was exercisable immediately prior to such adjustment.
Each Right held of record prior to such adjustment of the number of Rights shall
become that number of Rights (calculated to the nearest one ten-thousandth)
obtained by dividing the Purchase Price in effect immediately prior to such
adjustment of the Purchase Price by the Purchase Price in effect immediately
after such adjustment of the Purchase Price. The Company shall make a public
announcement of its election to adjust the number of Rights, indicating the
record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase
Price is adjusted or any day thereafter, but, if the Right Certificates have
been issued, shall be at least ten days after the date of the public
announcement. If Right Certificates have been issued, upon each adjustment of
the number of Rights pursuant to this Section 11(i), the Company shall, as
promptly as practicable, cause to be distributed to holders of record of Right
Certificates on such record date Right Certificates evidencing, subject to
Section 14 hereof, the additional Rights to which such holders shall be entitled
as a result of such adjustment, or, at the option of the Company, shall cause to
be distributed to such holders of record in substitution and replacement for the
Right Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Right Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment. Right Certificates so to be distributed shall be issued, executed
and countersigned in the manner provided for herein (and may bear, at the option
of the Company, the adjusted Purchase Price) and shall be registered in the
names of the holders of record of Right Certificates on the record date
specified in the public announcement.

                                       15

<PAGE>

         (j) Irrespective of any adjustment or change in the Purchase Price or
the number of one one-hundredths of a Preferred Share issuable upon the exercise
of the Rights, as applicable, the Right Certificates theretofore and thereafter
issued may continue to express the Purchase Price per one one-hundredth of a
Preferred Share and the number of shares which were expressed in the initial
Right Certificates issued hereunder.

         (k) Before taking any action that would cause an adjustment reducing
the Purchase Price below one one-hundredth of the then par value, if any, of the
Preferred Shares issuable upon exercise of the Rights, the Company shall take
any corporate action which may, in the advice or opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid and
nonassessable one one-hundredths of a Preferred Share at such adjusted Purchase
Price.

         (l) In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer, until the occurrence of such
event, the issuance to the holder of any Right exercised after such record date
the number of one one-hundredths of a Preferred Share and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above
the number of one one-hundredths of a Preferred Share and other capital stock or
securities of the Company, if any, issuable upon such exercise on the basis of
the Purchase Price in effect prior to such adjustment; provided, however, that
the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder's right to receive such additional shares upon
the occurrence of the event requiring such adjustment.

         (m) Anything in this Section 11 to the contrary notwithstanding, the
Company shall be entitled to make such further adjustments in the number of one
one-hundredths of a Preferred Share which may be acquired upon exercise of the
Rights, and such adjustments in the Purchase Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent that the
Board of Directors in good faith shall determine to be advisable in order that
any (i) consolidation or subdivision of the Preferred Shares, (ii) issuance
wholly for cash of any Preferred Shares at less than the current market price,
(iii) issuance wholly for cash of Preferred Shares or securities which by their
terms are convertible into or exchangeable for Preferred Shares, (iv) dividends
on Preferred Shares payable in Preferred Shares or (v) issuance of rights,
options or warrants referred to in Section 11(b), hereafter made by the Company
to holders of its Preferred Shares shall not be taxable to such holders or shall
reduce the taxes payable by such holders.

         (n) The Company shall not, at any time after the Distribution Date (i)
consolidate with, or merge with or into, any other Person (other than a
Subsidiary of the Company in a transaction which complies with Section 11(o),
(ii) consummate a statutory plan of exchange with any other Person (other than a
Subsidiary of the Company in a transaction which complies with Section 11(o), or
(iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one
transaction, or a series of transactions, assets or earning power aggregating
more than 50 percent of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to any other Person or Persons (other than the
Company and/or any of its Subsidiaries in one or more transactions each of which
complies with Section 11(o)), if at the time of or immediately after such
consolidation, merger, consummation of a statutory plan of exchange or sale
there are any

                                       16

<PAGE>

rights, warrants or other instruments or securities outstanding or agreements in
effect which would substantially diminish or otherwise eliminate the benefits
intended to be afforded by the Rights; provided, however, this Section 11(n)
shall not affect the ability of any Subsidiary of the Company to consolidate
with, merge with or into, consummate a statutory plan of exchange with, or sell
or transfer assets or earning power to, any other Subsidiary of the Company.

         (o) After the Distribution Date, the Company shall not, except as
permitted by Sections 23, 24 and 27, take (or permit any Subsidiary to take) any
action if at the time such action is taken it is reasonably foreseeable that
such action will diminish substantially or otherwise eliminate the benefits
intended to be afforded by the Rights, including, without limiting the
generality of the foregoing, any merger, consolidation, statutory exchange or
sale or transfer of assets or earning power.

         (p) Anything in this Agreement to the contrary notwithstanding, in the
event that the Company shall at any time after the date of this Agreement and
prior to the Distribution Date (i) declare or pay a dividend on the outstanding
Common Shares payable in Common Shares, (ii) subdivide the outstanding Common
Shares, (iii) combine the outstanding Common Shares into a smaller number of
shares, or (iv) issue any shares of its capital stock in a reclassification of
the outstanding Common Shares, the number of Rights associated with each Common
Share then outstanding, or issued or delivered thereafter but prior to the
Distribution Date, shall be proportionately adjusted so that the number of
Rights thereafter associated with each Common Share following any such event
(including other Common Shares issued after the date of such event, but prior to
the Distribution Date) shall equal the result obtained by multiplying the number
of Rights associated with each Common Share immediately prior to such event by a
fraction the numerator of which shall be the total number of Common Shares
outstanding immediately prior to the occurrence of the event and the denominator
of which shall be the total number of Common Shares outstanding immediately
following the occurrence of such event.

         Section 12. Certificate of Adjusted Purchase Price or Number of Shares.
Whenever an adjustment is made as provided in Sections 11 and 13, the Company
shall (a) promptly prepare a certificate setting forth such adjustment, and a
brief reasonably detailed statement of the facts, computations and methodology
of accounting giving rise to such adjustment, (b) promptly file with the Rights
Agent and with each transfer agent for the Preferred Shares and the Common
Shares a copy of such certificate and (c) mail a brief summary thereof to each
holder of a Right Certificate (or, if prior to the Distribution Date, to each
holder of a certificate representing Common Shares, provided that no such
summary need be mailed to such holders with respect to adjustments made pursuant
to Section 11(p) prior to the Distribution Date) in accordance with Section 25
hereof. Notwithstanding the foregoing sentence, the failure of the Company to
make such certification or give such notice shall not affect the validity of or
the force or effect of the requirement for such adjustment. Any adjustment to be
made pursuant to Sections 11 and 13 shall be effective as of the date of the
event giving rise to such adjustment. The Rights Agent shall be fully protected
in relying on any such certificate and on any adjustment therein contained.

                                       17

<PAGE>

         Section 13. Consolidation, Merger, Statutory Plan of Exchange or Sale
or Transfer of Assets or Earning Power.

         (a) In the event that, directly or indirectly, after the Distribution
Date, (i) the Company shall consolidate with, or merge with and into, any other
Person (other than a Subsidiary of the Company in a transaction that complies
with Section 11(o)), and the Company shall not be the continuing or surviving
corporation of such consolidation or merger, (ii) any Person (other than a
Subsidiary of the Company in a transaction which complies with Section 11(o))
shall consolidate with the Company, or merge with and into the Company and the
Company shall be the continuing or surviving corporation of such merger and, in
connection with such consolidation or merger, all or part of the Common Shares
shall be changed into or exchanged for stock or other securities of any other
Person or cash or any other property, or (iii) any Person (other than a
Subsidiary of the Company in a transaction which complies with Section 11(o))
shall acquire all or a majority of the Common Shares of the Company pursuant to
a statutory plan of exchange, or (iv) the Company shall sell or otherwise
transfer (or one or more of its Subsidiaries shall sell or otherwise transfer),
in one or more transactions, assets or earning power aggregating more than 50
percent of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person or Persons (other than the Company or one
or more of its wholly owned Subsidiaries) (any event described in clauses (i),
(ii), (iii) or (iv) of this Section 13(a) being a "Section 13 event"), then, and
in each such case, proper provision shall be made so that (A) each holder of a
Right, except as provided in Section 7(f) hereof, shall thereafter have the
right to receive, upon the exercise thereof at the then-current Purchase Price
in accordance with the terms of this Agreement, such number of validly
authorized and issued, fully paid and nonassessable Common Shares of the
Principal Party (as hereinafter defined) which Common Shares shall not be
subject to any liens, encumbrances, rights of first refusal, transfer
restrictions or other adverse claims, as shall be equal to the result obtained
by (1) multiplying the then-current Purchase Price by the number of one
one-hundredths of a Preferred Share for which a Right was exercisable
immediately prior to the first occurrence of a Section 13 event (or, if a
Section 11(a)(ii) event has occurred prior to the Section 13 event, multiplying
the number of such one one-hundredths of a share for which a Right was
exercisable immediately prior to the first occurrence of such Section 11(a)(ii)
event by the Purchase Price in effect immediately prior to such first
occurrence), and dividing that product by (2) 50 percent of the current per
share market price (determined in accordance with Section 11(d)(i) hereof) of
the Common Shares of such Principal Party on the date of consummation of such
Section 13 event; (B) such Principal Party shall thereafter be liable for, and
shall assume, by virtue of such consolidation, merger, statutory plan of
exchange, sale or transfer, all the obligations and duties of the Company
pursuant to this Agreement; (C) the term "Company" shall thereafter be deemed to
refer to such Principal Party, it being specifically intended that the
provisions of Section 11 hereof shall apply only to such Principal Party after
the first occurrence of a Section 13 event; (D) such Principal Party shall take
such steps (including, but not limited to, the reservation of a sufficient
number of shares of its Common Shares in accordance with Section 9 hereof
applicable to the reservation of capital shares) in connection with such
consummation as may be necessary to assure that the provisions hereof shall
thereafter be applicable, as nearly as reasonably may be, in relation to its
Common Shares thereafter deliverable upon the exercise of the Rights; and (E)
the provisions of Section 11(a)(ii) shall be of no further effect following the
first occurrence of any Section 13 event.

                                       18

<PAGE>

         (b) "Principal Party" shall mean:

                  (i) in the case of any transaction described in clause (i),
         (ii) or (iii) of Section 13(a), (A) the Person that is the issuer of
         any securities into which Common Shares of the Company are converted in
         such merger or consolidation or for which they are exchanged in such
         statutory plan of exchange, or, if there is more than one such issuer,
         the issuer of Common Shares that has the highest aggregate current
         market price (determined in accordance with Section 11(d)) and (B) if
         no securities are so issued, the Person that is the other party to such
         merger, consolidation or statutory plan of exchange, or, if there is
         more than one such Person, the Person the Common Shares of which has
         the highest aggregate current market price (determined in accordance
         with Section 11(d)); and

                  (ii) in the case of any transaction described in clause (iv)
         of Section 13(a), the Person that is the party receiving the largest
         portion of the assets or earning power transferred pursuant to such
         transaction or transactions, or, if each Person that is a party to such
         transaction or transactions receives the same portion of the assets or
         earning power transferred pursuant to such transaction or transactions
         or if the Person receiving the largest portion of the assets or earning
         power cannot be determined, whichever Person the Common Shares of which
         has the highest aggregate current market price (determined in
         accordance with Section 11(d));

provided, however, that in any such case, (A) if the Common Shares of such
Person are not securities that at such time are and continuously over the
preceding twelve-month period have been registered under Section 12 of the
Exchange Act ("Registered Common Shares"), or such Person is not a corporation,
and such Person is a direct or indirect Subsidiary of another Person that has
Registered Common Shares outstanding, "Principal Party" shall refer to such
other Person; (B) if the Common Shares of such Person are not Registered Common
Shares or such Person is not a corporation, and such Person is a direct or
indirect Subsidiary of another Person but is not a direct or indirect Subsidiary
of another Person which has Registered Common Shares outstanding, "Principal
Party" shall refer to the ultimate parent entity of such first-mentioned Person;
(C) if the Common Shares of such Person are not Registered Common Shares or such
Person is not a corporation, and such Person is directly or indirectly
controlled by more than one Person, and one or more of such other Persons has
Registered Common Shares outstanding, "Principal Party" shall refer to whichever
of such other Persons is the issuer of the Registered Common Shares having the
highest aggregate current market price (determined in accordance with Section
11(d)); and (D) if the Common Shares of such Person are not Registered Common
Shares or such Person is not a corporation, and such Person is directly or
indirectly controlled by more than one Person, and none of such other Persons
have Registered Common Shares outstanding, "Principal Party" shall refer to
whichever ultimate parent entity is the corporation having the greatest
stockholders' equity or, if no such ultimate parent entity is a corporation,
shall refer to whichever ultimate parent entity is the entity having the
greatest net assets.

         (c) The Company shall not consummate any such consolidation, merger,
statutory plan of exchange, sale or transfer unless prior thereto the Company
and Principal Party shall have executed and delivered to the Rights Agent a
supplemental agreement confirming that (i) such Principal Party shall, upon
consummation of such consolidation, merger, statutory plan

                                       19

<PAGE>

of exchange or sale or transfer of assets or earning power, assume this
Agreement in accordance with Sections 13(a) and (b), (ii) all rights of first
refusal or preemptive rights in respect of the issuance of Common Shares of such
Principal Party upon exercise of outstanding Rights have been waived, (iii) any
provision of the authorized securities of such Principal Party or of its
charter, bylaws or other instruments governing its corporate affairs which would
obligate such Principal Party to issue in connection with, or as a consequence
of, the consummation of a transaction referred to in Section 13(a), Common
Shares of such Principal Party at less than the then-current per share market
price (determined in accordance with Section 11(d)(i)) or securities exercisable
for, or convertible into, such Common Shares at less than such then-current per
share market price (other than to the holders of Rights pursuant to this Section
13) have been waived or canceled, and (iv) such transaction shall not result in
a default by such Principal Party under this Agreement and further providing
that, as soon as practicable after the date of any consolidation, merger,
statutory plan of exchange or sale or transfer of assets or earning power
referred to in Section 13(a), such Principal Party will:

                  (A) prepare and file a registration statement under the
     Securities Act of 1933, as amended, with respect to the Rights and the
     securities purchasable upon exercise of the Rights on an appropriate form,
     use its best efforts to cause such registration statement to become
     effective as soon as practicable after such filing and use its best efforts
     to cause such registration statement to remain effective (with a prospectus
     at all times meeting the requirements of the Securities Act of 1933, as
     amended) until the Final Expiration Date of the Rights, and similarly
     comply with applicable state securities laws;

                  (B) use its best efforts to list (or continue the listing of)
     the Rights and the securities purchasable upon exercise of the Rights or to
     meet the eligibility requirements for quotation of the Rights and such
     securities on the New York Stock Exchange or other system then in use; and

                  (C) deliver to holders of the Rights historical financial
     statements for such Principal Party which comply in all respects with the
     requirements for registration on Form 10 (or any successor form) under the
     Exchange Act.

         In the event that at any time after the occurrence of a Section
11(a)(ii) event hereof some or all of the Rights shall not have been exercised
at the time of a Section 13 event, the Rights which have not theretofore been
exercised shall thereafter be exercisable in the manner described in Section
13(a) (without taking into account any prior adjustment required by Section
1l(a)(ii)).

         (d) The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or other transfers.

         Section 14. Fractional Rights and Fractional Shares.

         (a) The Company shall not be required to issue fractions of Rights or
to distribute Right Certificates which evidence fractional Rights (i. e., Rights
to acquire less than one one-hundredth of a Preferred Share). If the Company
shall determine not to issue such fractional Rights, there shall be paid to the
registered holders of the Right Certificates with regard to which

                                       20

<PAGE>

such fractional Rights would otherwise be issuable, an amount in cash equal to
the same fraction of the current market value of a whole Right. For the purposes
of this Section 14(a), the current market value of a whole Right shall be the
closing price of the Rights for the Trading Day immediately prior to the date on
which such fractional Rights would have been otherwise issuable. The closing
price for any Trading Day shall be determined in the same manner as set forth in
the second sentence of Section 11(d)(i) with respect to the closing price for
Common Shares.

         (b) The Company shall not be required to issue fractions of Preferred
Shares (other than fractions which are integral multiples of one one-hundredth
of a Preferred Share) upon exercise of the Rights, or to distribute certificates
which evidence fractional Preferred Shares (other than fractions which are
integral multiples of one one-hundredth of a Preferred Share). Fractions of
Preferred Shares in integral multiples of one one-hundredth of a Preferred Share
may, at the election of the Company, be evidenced by depositary receipts,
pursuant to an appropriate agreement between the Company and a depositary
selected by it, provided that such agreement shall provide that the holders of
such depositary receipts shall have all the rights, privileges and preferences
to which they are entitled as beneficial owners of the Preferred Shares. With
respect to fractional Preferred Shares that are not integral multiples of one
one-hundredth of a Preferred Share, if the Company does not issue fractional
shares or depositary receipts in lieu thereof, the Company shall pay to the
registered holders of Right Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the current
market value of one one-hundredth of a Preferred Share. For purposes of this
Section 14(b), the current market value of one one-hundredth of a Preferred
Share shall be one one-hundredth of the closing price of a Preferred Share (as
determined in the same manner as set forth in the second sentence of Section
11(d)(i) with respect to the closing price for Common Shares) for the Trading
Day immediately prior to the date of such exercise.

         (c) Following the occurrence of a Section 11(a)(ii) event or a Section
13 event, the Company shall not be required to issue fractions of Common Shares
upon exercise of the Rights or to distribute certificates which evidence
fractional Common Shares. In lieu of fractional Common Shares, the Company may
pay to the registered holders of Right Certificates at the time such Rights are
exercised as herein provided an amount in cash equal to the same fraction of the
current market value of one Common Share. For purposes of this Section 14(c),
the current market value of one Common Share shall be the closing price of one
Common Share (as determined pursuant to the second sentence of Section 11(d)(i))
for the Trading Day immediately prior to the date of such exercise.

         (d) The holder of a Right, by the acceptance of the Rights, expressly
waives the holder's right to receive any fractional Rights or any fractional
shares upon exercise of a Right except as permitted by this Section 14.

         Section 15. Rights of Action. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Shares); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Shares), without the consent of the Rights
Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common

                                       21

<PAGE>

Shares), may in the holder's own behalf and for the holder's own benefit,
enforce, and may institute and maintain any suit, action or proceeding against
the Company to enforce, or otherwise act in respect of, the holder's right to
exercise the Rights evidenced by such Right Certificate in the manner provided
in such Right Certificate and in this Agreement. Without limiting the foregoing
or any remedies available to the holders of Rights, it is specifically
acknowledged that the holders of Rights would not have an adequate remedy at law
for any breach of this Agreement and will be entitled to specific performance of
the obligations under, and injunctive relief against actual or threatened
violations of, the obligations of any Person subject to this Agreement.

         Section 16. Agreement of Right Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

         (a) prior to the Distribution Date, the Rights shall be evidenced by
the certificates for Common Shares registered in the name of the holders of the
Common Shares (which certificates for Common Shares shall also constitute
certificates for Rights) and each Right will be transferable only in connection
with the transfer of the Common Shares;

         (b) after the Distribution Date, the Right Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the principal office of the Rights Agent, duly endorsed or accompanied by a
proper instrument of transfer and with the appropriate forms and certificates
duly executed; and

         (c) subject to Sections 6(a) and 7(f), the Company and the Rights Agent
may deem and treat the person in whose name the Right Certificate (or, prior to
the Distribution Date, the associated Common Shares certificate) is registered
as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Right Certificates
or the associated Common Shares certificate made by anyone other than the
Company or the Rights Agent) for all purposes whatsoever, and neither the
Company nor the Rights Agent shall be affected by any notice to the contrary.

         (d) Notwithstanding anything in this Agreement to the contrary, neither
the Company nor the Rights Agent shall have any liability to any holder of a
Right or other Person as a result of its inability to perform any of its
obligations under this Agreement by reason of any preliminary or permanent
injunction or other order, decree or ruling issued by a court of competent
jurisdiction or by a governmental, regulatory or administrative agency or
commission, or any statute, rule, regulation or executive order promulgated or
enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation; provided, however, the Company must use
reasonable efforts to have any such order, decree or ruling lifted or otherwise
overturned as soon as possible.

         Section 17. Right Holders and Right Certificate Holders Not Deemed
Stockholders. No holder, as such, of any Right or Right Certificate shall be
entitled to vote, receive dividends or be deemed for any purpose the holder of
the number of one one-hundredths of a Preferred Share or any other securities of
the Company which may at any time be issuable on the exercise of the Rights
represented thereby, nor shall anything contained herein or in any

                                       22

<PAGE>

Right Certificate be construed to confer upon the holder of any Right or Right
Certificate, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25), or to receive dividends or
subscription rights, or otherwise until the Right or Rights evidenced by such
Right Certificate shall have been exercised in accordance with the provisions
hereof.

         Section 18. Concerning the Rights Agent.

         (a) The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and
other disbursements incurred in the preparation, delivery, amendment,
administration and execution of this Agreement and the exercise and performance
of its duties hereunder. The Company also agrees to indemnify the Rights Agent
for, and to hold it harmless against, any loss, liability, damage, judgment,
fine, penalty, claim, demand, settlement, cost or expense, incurred without
gross negligence, bad faith or willful misconduct on the part of the Rights
Agent, for anything done or omitted by the Rights Agent in connection with the
execution, acceptance and administration of this Agreement and the exercise and
performance hereunder of its duties, including without limitation the costs and
expenses of defending against any claim of liability. The indemnity provided
herein shall survive termination of this Agreement and the termination and
expiration of the Rights. The costs and expenses incurred in enforcing this
right of indemnification shall be paid by the Company. Anything to the contrary
notwithstanding, in no event shall the Rights Agent be liable for special,
punitive, indirect, consequential or incidental loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Rights Agent
has been advised of the possibility of such loss or damage. Any liability of the
Rights Agent under this Agreement will be limited to the amount of fees paid by
the Company to the Rights Agent hereunder.

         (b) The Rights Agent shall be authorized and protected and shall incur
no liability for or in respect of any action taken, suffered or omitted by it in
connection with its acceptance and administration of this Agreement in reliance
upon any Right Certificate or certificate for the Preferred Shares or Common
Shares or for other securities of the Company, instrument of assignment or
transfer, power of attorney, endorsement, affidavit, letter, notice, direction,
consent, certificate, statement, or other paper or document believed by it to be
genuine and to be signed, executed and, where necessary, verified or
acknowledged, by the proper person or persons. The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment therein
contained. The Rights Agent shall not be deemed to have any duty or notice
unless and until the Company has provided the Rights Agent with written notice.

         Section 19. Merger or Consolidation or Change of Name of Rights Agent.

         (a) Any corporation (which term shall for the purposes of this
Agreement include a national banking association) into which the Rights Agent or
any successor Rights Agent may be merged or with which it may be consolidated,
or any corporation resulting from any merger or consolidation to which the
Rights Agent or any successor Rights Agent shall be a party, or any corporation
succeeding to the corporate trust or stock transfer business of the Rights Agent
or

                                       23

<PAGE>

any successor Rights Agent, shall be the successor to the Rights Agent under
this Agreement without the execution or filing of any paper or any further act
on the part of any of the parties hereto, provided that such corporation would
be eligible for appointment as a successor Rights Agent under the provisions of
Section 21.

         (b) If at any time the name of the Rights Agent shall be changed and at
such time any of the Right Certificates shall have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Right Certificates so countersigned; and if at that time any of the
Right Certificates shall not have been countersigned, the Rights Agent may
countersign such Right Certificates either in its prior name or in its changed
name; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

         Section 20. Duties of Rights Agent. The Rights Agent undertakes the
duties and obligations expressly imposed by this Agreement upon the following
terms and conditions, by all of which the Company and the holders of Right
Certificates, by their acceptance thereof, shall be bound:

         (a) The Rights Agent may consult with legal counsel (who may be legal
counsel for the Company), and the advice or opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent and the
Rights Agent shall incur no liability for or in respect of any action taken,
suffered or omitted by it in good faith and in accordance with such advice or
opinion.

         (b) Whenever in the performance of its duties under this Agreement the
Rights Agent shall deem it necessary or desirable that any fact or matter be
proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (including, without limitation, the identity of
any Acquiring Person and the determination of "current per share market price")
may be deemed to be conclusively proved and established by a certificate signed
by any one of the President, any Vice President, the Treasurer, the Secretary or
any Assistant Secretary of the Company and delivered to the Rights Agent; and
such certificate shall be full authorization and protection to the Rights Agent
and the Rights Agent shall incur no liability for or in respect of any action
taken, suffered or omitted in good faith by it under the provisions of this
Agreement in reliance upon such certificate.

         (c) The Rights Agent shall be liable hereunder to the Company and any
other Person only for its own gross negligence, bad faith or willful misconduct.

         (d) The Rights Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained in this Agreement or in the Right
Certificates (except its countersignature thereof) or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been
made by the Company only.

         (e) The Rights Agent shall not be under any responsibility in respect
of the validity of this Agreement or the execution and delivery hereof (except
the due authorization, execution and delivery hereof by the Rights Agent) or in
respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any

                                       24

<PAGE>

breach by the Company of any covenant or condition contained in this Agreement
or in any Right Certificate; nor shall it be responsible for any change in the
exercisability of the Rights (including the Rights becoming null and void
pursuant to Section 7(f)) or any adjustment required under the provisions of
Sections 11 or 13 (including the manner, method or amount thereof) or the
ascertaining of the existence of facts that would require any such change or
adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after receipt by the Rights Agent of the certificate describing any
such adjustment as contemplated by Section 12); nor shall it by any act
hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any Preferred Shares to be issued pursuant to
this Agreement or any Right Certificate or as to whether any Preferred Shares
will, when issued, be validly authorized and issued, fully paid and
nonassessable.

         (f) The Company agrees that it will perform, execute, acknowledge and
deliver or cause to be performed, executed, acknowledged and delivered all such
further and other acts, instruments and assurances as may reasonably be required
by the Rights Agent for the carrying out or performing by the Rights Agent of
the provisions of this Agreement.

         (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
one of the President, any Vice President, the Secretary, any Assistant Secretary
or the Treasurer of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and such instructions shall be final
authorization and protection to the Rights Agent and the Rights Agent shall
incur no liability for or in respect of any action taken, suffered or omitted to
be taken by it in good faith in accordance with written instructions of any such
officer. The Rights Agent may conclusively rely on the most recent written
instructions given by any such officer.

         (h) The Rights Agent and any stockholder, affiliate, director, officer
or employee of the Rights Agent may buy, sell or deal in any of the Rights or
other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not
the Rights Agent under this Agreement. Nothing herein shall preclude the Rights
Agent from acting in any other capacity for the Company or for any other legal
entity.

         (i) The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself or by or
through its attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, absent gross negligence, bad faith or willful misconduct
in the selection and continued employment thereof.

         (j) No provision of this Agreement shall require the Rights Agent to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties or in the exercise of its rights hereunder if
the Rights Agent shall have reasonable grounds for believing that repayment of
such funds or adequate indemnification against such risk or liability is not
reasonably assured to it.

                                       25

<PAGE>

         (k) If, with respect to any Right Certificate surrendered to the Rights
Agent for exercise or transfer, the certificate included with the form of
assignment or form of election to purchase, as the case may be, has either not
been completed, not signed or indicates an affirmative response to clause 1
and/or 2 thereof, the Rights Agent shall not take any further action with
respect to such requested exercise or transfer without first consulting with the
Company. If such certificate has been completed and signed, the Rights Agent may
assume without further inquiry that the Right Certificate is not owned by a
person described in Section 7(f) and shall not be charged with any knowledge to
the contrary.

         Section 21. Change of Rights Agent. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement
upon 30 days notice in writing mailed to the Company and to each transfer agent
of the Common Shares and Preferred Shares by registered or certified mail, and
to the holders of the Right Certificates by first-class mail. In the event the
transfer agency relationship in effect between the Company and the Rights Agent
terminates, the Rights Agent will be deemed to resign automatically on the
effective date of such termination; and any required notice will be sent by the
Company. The Company may remove the Rights Agent or any successor Rights Agent
upon 30 days notice in writing, mailed to the Rights Agent or successor Rights
Agent, as the case may be, and to each transfer agent of the Common Shares and
Preferred Shares by registered or certified mail, and to the holders of the
Right Certificates by first-class mail. If the Rights Agent shall resign or be
removed or shall otherwise become incapable of acting, the Company shall appoint
a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of 30 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by the holder of a Right Certificate
(who shall, with such notice, submit such holder's Right Certificate for
inspection by the Company), then the Company shall become the Rights Agent and
the registered holder of any Right Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, shall be (a)
a Person organized and doing business under the laws of the United States or any
state, in good standing, which is subject to supervision or examination by
federal or state authority and which has at the time of its appointment as
Rights Agent a combined capital and surplus of at least $100 million, or (b) an
affiliate of a corporation described in clause (a) of this sentence. After
appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights
Agent without further act or deed; but the predecessor Rights Agent shall
deliver and transfer to the successor Rights Agent any property at the time held
by it hereunder, and execute and deliver any further assurance, conveyance, act
or deed necessary for the purpose. Not later than the effective date of any such
appointment, the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Shares and
Preferred Shares, and mail a notice thereof in writing to the registered holders
of the Right Certificates. Failure to give any notice provided for in this
Section 21, however, or any defect therein, shall not affect the legality or
validity of the resignation or removal of the Rights Agent or the appointment of
the successor Rights Agent, as the case may be. If, at the time such successor
Rights Agent shall succeed to the agency created by this Agreement, any of the
Right Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor Rights
Agent and deliver such Right Certificates so countersigned; and if at that time
any of the Right Certificates shall not have been countersigned,

                                       26

<PAGE>

any successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of the successor Rights
Agent; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

         Section 22. Issuance of New Right Certificates. Notwithstanding any of
the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Right Certificates evidencing Rights in such form
as may be approved by the Board of Directors to reflect any adjustment or change
in the Purchase Price per share and the number or kind or class of shares or
other securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement. In addition, in connection
with the issuance or sale of Common Shares of the Company following the
Distribution Date and prior to the expiration, termination or redemption of the
Rights, the Company (a) shall, with respect to Common Shares of the Company so
issued or sold pursuant to the exercise of stock options or under any Plan, or
upon the exercise, conversion or exchange of securities hereinafter issued by
the Company, and (b) may, in any other case, if deemed necessary or appropriate
by the Board of Directors, issue Right Certificates representing the appropriate
number of Rights in connection with such issuance or sale; provided, however,
that (i) no such Right Certificate shall be issued if, and to the extent that,
the Company shall be advised by counsel that such issuance would create a
significant risk of material adverse tax consequences to the Company or the
Person to whom such Right Certificate would be issued, and (ii) no such Right
Certificate shall be issued if, and to the extent that, appropriate adjustment
shall otherwise have been made in lieu of the issuance thereof.

         Section 23. Redemption and Termination.

         (a) The Board of Directors may, at its option, at any time prior to the
tenth day following the Shares Acquisition Date, redeem all, but not less than
all, of the then outstanding Rights at a redemption price of $.01 per Right, as
such amount may be appropriately adjusted to reflect any stock split, stock
dividend, or similar transaction occurring after the date hereof (such
redemption price being hereinafter referred to as the "Redemption Price"). The
redemption of the Rights by the Board of Directors may be made effective at such
time, on such basis and with such conditions as the Board of Directors, in its
sole discretion, may establish.

         (b) In the event that if, following a Shares Acquisition Date and
following the expiration of the right of redemption under Section 23(a), but
prior to any Section 13 event, (i) a Person who is an Acquiring Person or an
Affiliate or Associate of such Person shall have transferred or otherwise
disposed of a number of Common Shares in one transaction, or a series of
transactions (not directly or indirectly involving a purchase by the Company or
any of its Subsidiaries), which did not result in the occurrence of a Section 13
event, such that such Person is thereafter a Beneficial Owner of 12 percent or
less of the outstanding Common Shares of the Company, (ii) there are no other
Persons, immediately following the transfer or other disposition described in
clause (i), who are Acquiring Persons, and (iii) the transfer or other
disposition described in clause (i) was other than pursuant to a transaction, or
series of transactions, which directly or indirectly involved the Company or any
of its Subsidiaries; then the right of redemption provided in Section 23(a)
shall be reinstated and thereafter all outstanding Rights shall again be subject
to the provisions of this Section 23.

                                       27

<PAGE>

Notwithstanding anything in this Agreement to the contrary, the Rights shall not
be exercisable while the Rights are subject to any right of redemption by the
Company under this Agreement.

         (c) Immediately upon the action of the Board of Directors ordering the
redemption of the Rights, or at such time and date thereafter as the Board of
Directors may specify, and without any further action and without any notice,
the right to exercise the Rights will terminate and the only right thereafter of
the holders of Rights shall be to receive the Redemption Price. Promptly after
the action of the Board of Directors ordering the redemption of the Rights, the
Company shall give notice of such redemption to the holders of the then
outstanding Rights by mailing such notice to all such holders at their last
addresses as they appear upon the registry books of the Rights Agent or, prior
to the Distribution Date, on the registry books of the transfer agent for the
Common Shares. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such notice of
redemption will state the method by which the payment of the Redemption Price
will be made. Neither the Company nor any of its Affiliates or Associates may
redeem, acquire or purchase for value any Rights in any manner other than that
specifically set forth in this Section 23, and other than in connection with the
purchase of Common Shares prior to the Distribution Date.

         Section 24. Exchange.

         (a) The Company may, at its option, by action of the Board of
Directors, at any time after any Person becomes an Acquiring Person, exchange
all or part of the then outstanding and exercisable Rights (which shall not
include Rights that have become null and void pursuant to the provisions of
Section 7(f)) for Common Shares at an exchange ratio of one Common Share per
Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof (such exchange ratio being
herein referred to as the "Exchange Ratio"). Notwithstanding the foregoing, the
Board of Directors shall not be empowered to effect such exchange at any time
after any Person (other than the Company, any Subsidiary of the Company, any
Plan of the Company or of a Subsidiary of the Company, or any Person holding
Common Shares for or pursuant to the terms of any such Plan), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of 50
percent or more of the Common Shares then outstanding.

         (b) Immediately upon the action of the Board of Directors of the
Company ordering the exchange of any Rights pursuant to Section 24(a) and
without any further action and without any notice, the right to exercise such
Rights shall terminate and the only right thereafter of the holders of such
Rights shall be to receive that number of Common Shares equal to the number of
such Rights held by such holder multiplied by the Exchange Ratio. The Company
shall promptly give public notice of any such exchange; provided, however, that
the failure to give, or any defect in, such notice shall not affect the validity
of such exchange. The Company promptly shall mail a notice of any such exchange
to all of the holders of such Rights at their last addresses as they appear upon
the registry books of the Rights Agent and to the Rights Agent. Any notice which
is mailed in the manner herein provided shall be deemed given, whether or not
the holder receives the notice. Each such notice of exchange will state the
method by which the exchange of the Common Shares for Rights will be effected
and, in the event of any partial exchange, the number of Rights which will be
exchanged. Any partial exchange shall be

                                       28

<PAGE>

effected pro rata based on the number of Rights (other than Rights which have
become void pursuant to the provisions of Section 7(f) hereof) held by each
holder of Rights.

         (c) In any exchange pursuant to this Section 24, the Company, at its
option, may substitute Preferred Shares (or equivalent preferred shares, as such
term is defined in Section 11(b)) for Common Shares exchangeable for Rights, at
the initial rate of one one-hundredth of a Preferred Share (or equivalent
preferred share) for each Common Share, as appropriately adjusted to reflect
adjustments in the voting rights of the Preferred Shares pursuant to the terms
thereof, so that the fraction of a Preferred Share delivered in lieu of each
Common Share shall have at least the same voting rights as one Common Share.

         (d) The Company shall not be required to issue fractions of Common
Shares or to distribute certificates which evidence fractional Common Shares. In
lieu of such fractional shares, the Company shall pay to the registered holders
of the Right Certificates with regard to which such fractional shares would
otherwise be issuable an amount in cash equal to the same fraction of the
current market value of a whole Common Share. For the purposes of this Section
24(d), the current market value of a whole share shall be the closing price of a
Common Share determined in the manner set forth in the second sentence of
Section 11(d)(i) with respect to the closing price for Common Shares for the
Trading Day immediately prior to the date of action by the Board of Directors
ordering the exchange.

         Section 25. Notice of Certain Events.

         (a) In case the Company shall propose, at any time after the
Distribution Date, (i) to declare or pay any dividend payable in stock of any
class to the holders of its Preferred Shares or to make any other distribution
to the holders of its Preferred Shares (other than a regular quarterly cash
dividend), or (ii) to offer to the holders of its Preferred Shares options,
rights or warrants to subscribe for or to purchase any additional Preferred
Shares or shares of stock of any class or any other securities, rights or
options, or (iii) to effect any reclassification of its Preferred Shares (other
than a reclassification involving only the subdivision of outstanding Preferred
Shares), or (iv) to effect any consolidation or merger into or with, to effect
any exchange of the Common Shares of the Company pursuant to a statutory plan of
exchange with, or to effect any sale or other transfer (or to permit one or more
of its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of more than 50 percent of the assets or earning power of the
Company and its Subsidiaries (taken as a whole) to, any other Person or Persons
(other than the Company and/or any of its Subsidiaries in a transaction which
complies with Section 11(o)), or (v) to effect the liquidation, dissolution or
winding up of the Company, then, in each such case, the Company shall give to
the Rights Agent and to each holder of a Right Certificate, in accordance with
Section 26, a notice of such proposed action, which shall specify the record
date for the purposes of such stock dividend, or distribution of rights or
warrants, or the date on which such reclassification, consolidation, merger,
statutory plan of exchange, sale, transfer, liquidation, dissolution or winding
up is to take place and the date of participation therein by the holders of
record of the Preferred Shares, if any such date is to be fixed, and such notice
shall be so given in the case of any action covered by clause (i) or (ii) above
at least 20 days prior to the record date for determining holders of the
Preferred Shares for purposes of such action, and in the case of any such other
action, at least 20 days prior to the date of the taking of such proposed action
or the date of participation therein by the holders of the Preferred Shares,
whichever shall

                                       29

<PAGE>

be the earlier. The failure to give notice required by this Section 25 or any
defect therein shall not affect the legality or validity of the action taken by
the Company or the vote upon any such action.

         (b) In case any Section 11(a)(ii) event shall occur, then (i) the
Company shall as soon as practicable thereafter give to each holder of a Right
Certificate, in accordance with Section 26 hereof, a notice of the occurrence of
such event, which shall specify the event and the consequences of the event to
holders of Rights under Sections 11(a)(ii), and (ii) all references in Section
25(a) to Preferred Shares shall be deemed thereafter to refer to Common Shares
and/or, if appropriate, other securities.

         Section 26. Notices. Notices or demands authorized by this Agreement to
be given or made by the Rights Agent or by the holder of any Right Certificate
to or on the Company shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed (until another address is filed in writing with
the Rights Agent) as follows:

                        The Greenbrier Companies, Inc.
                        One Centerpointe Drive, Suite 200
                        Lake Oswego, Oregon 97035
                        Attention: Corporate Secretary

Subject to the provisions of Section 21 hereof, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any
Right Certificate to or on the Rights Agent shall be sufficiently given or made
if sent by first-class mail, postage-prepaid, addressed (until another address
is filed in writing with the Company) to the principal office of the Rights
Agent as follows:

                        EquiServe Trust Company, N.A.
                        250 Royall Street
                        Canton, MA 02021
                        Attn: Client Administration

Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to or on the holder of any Right Certificate (or, if
prior to the Distribution Date, to or on the holder of certificates representing
Common Shares of the Company) shall be sufficiently given or made if sent by
first-class mail, postage-prepaid, addressed to such holder at the address of
such holder as shown on the registry books of the Company.

         Section 27. Supplements and Amendments. The Company may from time to
time, by action of the Board of Directors, supplement or amend this Agreement
without the approval of any holders of Rights or Common Shares in order to cure
any ambiguity, to correct or supplement any provision contained herein which may
be defective or inconsistent with any other provision herein, or to make any
other provisions with respect to the Rights which the Board of Directors may
deem necessary or desirable; provided, however, that, from and after a
Distribution Date, this Agreement shall not be amended in any manner which would
adversely affect the interests of the holders of Rights (excluding the interests
of any Acquiring Person). Upon the delivery of a certificate from an appropriate
officer of the Company which states that

                                       30

<PAGE>

the proposed supplement or amendment is in compliance with the terms of this
Section 27, the Rights Agent shall execute such supplement or amendment;
provided, however, that the Rights Agent may, but shall not be obligated to,
enter into any such supplement or amendment which affects its own rights, duties
or immunities under this Agreement.

         Section 28. Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

         Section 29. Benefits of Agreement. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and the
registered holders of the Right Certificates (and, prior to the Distribution
Date, the Common Shares of the Company) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of
the Right Certificates (and, prior to the Distribution Date, the Common Shares
of the Company).

         Section 30. Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated;
provided, however, that notwithstanding anything in this Agreement to the
contrary, if any such term, provision, covenant or restriction is held by such
court or authority to be invalid, void or unenforceable and the Board of
Directors determines in its good faith judgment that severing the invalid
language from this Agreement would adversely affect the purpose or effect of
this Agreement, the right of redemption set forth in Section 23 shall be
reinstated and shall not expire until the Close of Business on the tenth day
following the date of such determination by the Board of Directors.

         Section 31. Determinations and Actions by the Board of Directors, etc.
Except as otherwise specifically provided herein, the Board of Directors shall
have the exclusive power and authority to administer this Agreement and to
exercise all rights and powers specifically granted to the Board of Directors or
to the Company, or as may be necessary or advisable in the administration of
this Agreement, including, without limitation, the right and power (a) to
interpret the provisions of this Agreement and (b) to make all determinations
deemed necessary or advisable for the administration of this Agreement. All such
actions, calculations, interpretations and determinations (including, for
purposes of clause (ii) below, all omissions with respect to the foregoing)
which are done or made by the Board of Directors in good faith shall (i) be
final, conclusive and binding on the Company, the Rights Agent, the holders of
the Rights and all other parties, and (ii) not subject the Board of Directors or
any member thereof to any liability to the holders of the Rights.

         Section 32. Governing Law. This Agreement and each Right Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
state of Delaware and for all purposes shall be governed by and construed in
accordance with the laws of such state applicable to contracts to be made and
performed entirely within such state.

                                       31

<PAGE>

         Section 33. Counterparts. This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

         Section 34. Descriptive Headings. Descriptive headings of the several
sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

         Section 35. Force Majeure. Notwithstanding anything to the contrary
contained herein, Rights Agent shall not be liable for any delays or failures in
performance resulting from acts beyond its reasonable control including, without
limitation, acts of God, terrorist acts, shortage of supply, breakdowns or
malfunctions, interruptions or malfunction of computer facilities, or loss of
data due to power failures or mechanical difficulties with information storage
or retrieval systems, labor difficulties, war, or civil unrest.

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

            THE GREENBRIER COMPANIES, INC.

            By: /s/ William A. Furman
                ________________________________________

            Title: President and Chief Executive Officer
                   _____________________________________

            EQUISERVE TRUST COMPANY, N.A.

            By: /s/ Thomas A. Ferrari
                ________________________________________

            Title: Senior Managing Director
                   _____________________________________

                                       32

<PAGE>

                                                                       Exhibit A

                            RIGHTS AND PREFERENCES OF
                            SERIES A PREFERRED STOCK

         Section 1. Designation and Amount. There shall be a series of Preferred
Stock of the corporation which shall be designated as "Series A Participating
Preferred Stock, $0.001 par value" (the "Series A Preferred Stock"), and the
number of shares constituting such series shall be 200,000. Such number of
shares may be increased or decreased by the Board of Directors without
stockholder action; provided, however, that no decrease shall reduce the number
of shares of Series A Preferred Stock to a number less than the shares
outstanding plus the number of shares issuable upon exercise of outstanding
rights, options or warrants or upon conversion of outstanding securities issued
by the corporation.

         Section 2. Dividends and Distributions.

         (A) Subject to the prior and superior rights of the holders of any
shares of any series of Preferred Stock ranking prior and superior to the Series
A Preferred Stock with respect to dividends, the holders of shares of Series A
Preferred Stock, in preference to the holders of shares of Common Stock, $0.001
par value ("Common Stock") of the corporation and of any other junior stock
which may be outstanding, shall be entitled to receive, when, as and if declared
by the Board of Directors out of funds legally available for the purpose, (i)
quarterly dividends payable in cash on the last day of March, June, September
and December in each year (each such date being referred to herein as a
"Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of
Series A Preferred Stock, in an amount per share (rounded to the nearest cent)
equal to the greater of (a) $1.00 per share ($.01 per one one-hundredth of a
share), or (b) subject to the provision for adjustment hereinafter set forth,
100 times the aggregate per share amount of all cash dividends declared on the
Common Stock since the immediately preceding Quarterly Dividend Payment Date or,
with respect to the first Quarterly Dividend Payment Date, since the first
issuance of any share or fraction of a share of Series A Preferred Stock, and
(ii) subject to the provision for adjustment hereinafter set forth, quarterly
distributions (payable in kind) on each Quarterly Dividend Payment Date in an
amount per share equal to 100 times the aggregate per share amount of all
noncash dividends or other distributions (other than a dividend payable in
shares of Common Stock or a subdivision of the outstanding shares of Common
Stock, by reclassification or otherwise), declared on the Common Stock since the
immediately preceding Quarterly Dividend Payment Date, or with respect to the
first Quarterly Dividend Payment Date since the first issuance of any share or
fraction of a share of Series A Preferred Stock. In the event the corporation
shall at any time after July 26, 2004 (the "Rights Declaration Date"), declare
or pay any dividend on Common Stock payable in shares of Common Stock, or effect
a subdivision or combination or consolidation of the outstanding shares of
Common Stock (by reclassification or otherwise) into a greater or lesser number
of shares of Common Stock, then in each such case the amount to which holders of
shares of Series A Preferred Stock are entitled under clauses (i)(b) or (ii) of
the preceding sentence shall be adjusted by multiplying such amount by a
fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.

                                      A-1

<PAGE>

         (B) The corporation shall declare a dividend or distribution on the
Series A Preferred Stock as provided in Section 2(A) immediately after it
declares a dividend or distribution on the Common Stock (other than a dividend
payable in shares of Common Stock); provided that, in the event no dividend or
distribution shall have been declared on the Common Stock during the period
between any Quarterly Dividend Payment Date and the next subsequent Quarterly
Dividend Payment Date, a dividend of $1.00 per share ($.01 per one one-hundredth
of a share) on the Series A Preferred Stock shall nevertheless be payable, out
of funds legally available for such purpose, on such subsequent Quarterly
Dividend Payment Date.

         (C) Dividends shall begin to accrue and be cumulative on outstanding
shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Series A Preferred Stock, unless
the date of issue of such shares is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue and be cumulative from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date after
the record date for the determination of holders of shares of Series A Preferred
Stock entitled to receive a quarterly dividend and before such Quarterly
Dividend Payment Date, in either of which events such dividends shall begin to
accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but
unpaid dividends shall cumulate but shall not bear interest. Dividends paid on
the shares of Series A Preferred Stock in an amount less than the total amount
of such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination
of holders of shares of Series A Preferred Stock entitled to receive payment of
a dividend or distribution declared thereon, which record date shall be not more
than 30 days prior to the date fixed for the payment thereof.

         Section 3. Voting Rights. The holders of shares of Series A Preferred
Stock shall have the following voting rights:

         (A) Subject to the provision for adjustment hereinafter set forth, each
share of Series A Preferred Stock shall entitle the holder thereof to 100 votes
(and each one one-hundredth of a share of Series A Preferred Stock shall entitle
the holder thereof to one vote) on all matters submitted to a vote of the
stockholders of the corporation. In the event the corporation shall at any time
after the Rights Declaration Date declare or pay any dividend on Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise) into a greater or lesser number of shares of Common Stock, then in
each such case the number of votes per share to which holders of shares of
Series A Preferred Stock were entitled immediately prior to such event shall be
adjusted by multiplying such number by a fraction, the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

         (B) Except as otherwise provided in the Certificate of Incorporation or
in this amendment thereof or by law, the holders of shares of Series A Preferred
Stock and the holders of shares of Common Stock shall vote together as one class
on all matters submitted to a vote of the stockholders of the corporation.

                                      A-2

<PAGE>

         (C) Except as otherwise provided in the Certificate of Incorporation or
in this amendment thereof or by law, holders of Series A Preferred Stock shall
have no special voting rights and their consent shall not be required for taking
any corporate action.

         Section 4. Certain Restrictions.

         (A) Whenever quarterly dividends or other dividends or distributions
payable on the Series A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether
or not declared, on shares of Series A Preferred Stock outstanding shall have
been paid in full, the corporation shall not:

                  (i)      declare or pay dividends on, make any other
     distributions on any shares of stock ranking junior (either as to dividends
     or upon liquidation, dissolution or winding up) to the Series A Preferred
     Stock;

                  (ii)     declare or pay dividends on or make any other
     distributions on any shares of stock ranking on a parity (either as to
     dividends or upon liquidation, dissolution or winding up) with the Series A
     Preferred Stock, except dividends paid ratably on the Series A Preferred
     Stock and all such parity stock on which dividends are payable or in
     arrears in proportion to the total amounts to which the holders of all such
     shares are then entitled;

                  (iii)    redeem or purchase or otherwise acquire for
     consideration shares of any stock ranking junior (either as to dividends or
     upon liquidation, dissolution or winding up) with the Series A Preferred
     Stock, provided that the corporation may at any time redeem, purchase or
     otherwise acquire shares of any such junior stock in exchange for shares of
     any stock of the corporation ranking junior (either as to dividends or upon
     dissolution, liquidation or winding up) to the Series A Preferred Stock; or

                  (iv)     purchase or otherwise acquire for consideration any
     shares of Series A Preferred Stock, or any share of stock ranking on a
     parity with the Series A Preferred Stock, except in accordance with a
     purchase offer made in writing or by publication (as determined by the
     Board of Directors) to all holders of such shares upon such terms as the
     Board of Directors, after consideration of the respective annual dividend
     rates and other relative rights and preferences of the respective series
     and classes, shall determine in good faith will result in fair and
     equitable treatment among the respective series or classes.

         (B) The corporation shall not permit any subsidiary of the corporation
to purchase or otherwise acquire for consideration any shares of stock of the
corporation unless the corporation could, under Section 4(A), purchase or
otherwise acquire such shares at such time and in such manner.

         Section 5. Reacquired Shares. Any shares of Series A Preferred Stock
purchased or otherwise acquired by the corporation in any manner whatsoever
shall be retired and canceled promptly after the acquisition thereof. The
corporation shall take all such action as is necessary so that all such shares
shall after their cancellation become authorized but unissued shares of
Preferred Stock, without designation as to series, and may be reissued as part
of a new series of

                                      A-3

<PAGE>

Preferred Stock to be created by Articles of Amendment adopted by the Board of
Directors without stockholder action, subject to the conditions and restrictions
on issuance set forth herein.

         Section 6. Liquidation, Dissolution or Winding Up. Upon any
liquidation, dissolution or winding up of the corporation, no distribution shall
be made (A) to the holders of shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Series A
Preferred Stock unless, prior thereto, the holders of shares of Series A
Preferred Stock shall have received the higher of (i) $1.00 per share ($.01 per
one one-hundredth of a share), plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of
such payment, or (ii) an aggregate amount per share, subject to the provision
for adjustment hereinafter set forth, equal to 100 times the aggregate amount to
be distributed per share to holders of Common Stock; nor shall any distribution
be made (B) to the holders of stock ranking on a parity (either as to dividends
or upon liquidation, dissolution or winding up) with the Series A Preferred
Stock, except distributions made ratably on the Series A Preferred Stock and all
other such parity stock in proportion to the total amounts to which the holders
of all such shares are entitled upon such liquidation, dissolution or winding
up. In the event the corporation shall at any time after the Rights Declaration
Date declare or pay any dividend on Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise) into a
greater or lesser number of shares of Common Stock, then in each such case the
aggregate amount to which holders of shares of Series A Preferred Stock are
entitled under clause (A)(ii) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

         Section 7. Consolidation, Merger, etc. In case the corporation shall
enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, or otherwise changed, then in any
such case the shares of Series A Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share (subject to the provision
for adjustment hereinafter set forth) equal to 100 times the aggregate amount of
stock, securities, cash and/or any other property (payable in kind), as the case
may be, into which or for which each share of Common Stock is changed or
exchanged. In the event the corporation shall at any time after the Rights
Declaration Date declare or pay any dividend on Common Stock payable in shares
of Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise) into a
greater or lesser number of shares of Common Stock, then in each such case the
amount set forth in the preceding sentence with respect to the exchange or
change of shares of Series A Preferred Stock shall be adjusted by multiplying
such amount by a fraction the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

         Section 8. No Redemption. The shares of Series A Preferred Stock shall
not be redeemable. Notwithstanding the foregoing, the corporation may acquire
shares of Series A

                                      A-4

<PAGE>

Preferred Stock in any other manner permitted by law, the Certificate of
Incorporation or this amendment thereof.

         Section 9. Rank. Unless otherwise provided in the Certificate of
Incorporation or an amendment thereof relating to a subsequent series of
Preferred Stock of the corporation, the Series A Preferred Stock shall rank
junior to all other series of the corporation's Preferred Stock as to the
payment of dividends and the distribution of assets on liquidation, dissolution
or winding up, and senior to the Common Stock of the corporation.

         Section 10. Amendment. The Certificate of Incorporation shall not be
amended in any manner which would materially alter or change the powers,
preferences or special rights of the Series A Preferred Stock so as to affect
them adversely without the affirmative vote of the holders of at least a
majority of the outstanding shares of Series A Preferred Stock, voting
separately as a class.

         Section 11. Fractional Shares. Series A Preferred Stock may be issued
in one-hundredths of a share or other fractions of a share which shall entitle
the holder, in proportion to such holder's fractional shares, to exercise voting
rights, receive dividends, participate in distributions and to have the benefit
of all other rights of holders of Series A Preferred Stock.

                                      A-5

<PAGE>

                                                                       Exhibit B

                           [Form of Right Certificate]

Certificate No. R                                                   ______Rights

     NOT EXERCISABLE AFTER JULY 26, 2014, OR EARLIER IF REDEEMED. THE RIGHTS ARE
     SUBJECT TO REDEMPTION ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER
     CERTAIN CIRCUMSTANCES (SPECIFIED IN THE RIGHTS AGREEMENT), RIGHTS
     BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS
     AGREEMENT) OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND
     VOID. [THE RIGHTS REPRESENTED BY THIS RIGHT CERTIFICATE ARE OR WERE
     BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN
     AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN
     THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHT CERTIFICATE AND THE RIGHTS
     REPRESENTED HEREBY MAY BECOME VOID IN THE CIRCUMSTANCES SPECIFIED IN THE
     RIGHTS AGREEMENT.](1)

                                Right Certificate

                         THE GREENBRIER COMPANIES, INC.

         This certifies that _____________________, or registered assigns, is
the registered owner of the number of Rights set forth above, each of which
entitles the registered owner thereof, subject to the terms, provisions and
conditions of the Rights Agreement dated as of July 13, 2004 (the "Rights
Agreement"), between The Greenbrier Companies, Inc., a Delaware corporation (the
"Company"), and EquiServe Trust Company, N.A., a national banking association,
organized and existing under the laws of the United States (the "Rights Agent,"
which term shall include every successor Rights Agent under the Rights
Agreement), to purchase from the Company at any time after the Distribution Date
(as such term is defined in the Rights Agreement) and prior to 5 p.m. (Portland,
Oregon time) on July 26, 2014, at the office or agency of the Rights Agent or
its successor designated for such purpose, one one-hundredth of a fully paid
nonassessable share of Series A Participating Preferred Stock, $0.001 par value
(the "Preferred Shares"), of the Company, at a purchase price initially of $100
per one one-hundredth of a Preferred Share (the "Purchase Price"), upon
presentation and surrender of this Right Certificate with the Form of Election
to Purchase and related certificate duly executed. As provided in the Rights
Agreement, the Purchase Price and the number of Preferred Shares which may be
purchased upon the exercise of the Rights evidenced by this Right Certificate
are subject to modification and adjustment upon the happening of certain events.

-------------------------
(1) That portion of the legend in brackets shall be inserted only if applicable
and shall replace the preceding sentence.

                                      B-1

<PAGE>

         This Right Certificate is subject to all of the terms, covenants and
restrictions of the Rights Agreement, which terms, covenants and restrictions
are hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates. Copies of
the Rights Agreement are on file at the principal executive offices of the
Company and are available from the Rights Agent or the Company upon written
request.

         Upon the occurrence of certain events specified in Section 7(f) of the
Rights Agreement, if the Rights evidenced by this Right Certificate are or were
beneficially owned by an Acquiring Person or an Affiliate or Associate of an
Acquiring Person (as such terms are defined in the Rights Agreement) or, under
certain circumstances, a transferee of any such Acquiring Person, Affiliate or
Associate, such Rights shall become null and void and any holder thereof
(whether or not such holder is an Acquiring Person or an Affiliate or Associate
of an Acquiring Person) shall thereafter have no right to exercise such Rights.

         In certain circumstances described in the Rights Agreement, the Rights
evidenced hereby may entitle the holder hereof to purchase capital stock of an
entity other than the Company or receive cash or other assets, all as prescribed
in the Rights Agreement.

         This Right Certificate, with or without other Right Certificates, upon
surrender at the office or agency of the Rights Agent designated for such
purpose, may be exchanged for another Right Certificate or Right Certificates of
like tenor and date evidencing Rights equal to the aggregate number of Rights
evidenced by the Right Certificate or Right Certificates surrendered. If this
Right Certificate shall be exercised in part, the holder shall be entitled to
receive upon surrender hereof another Right Certificate or Right Certificates
for the number of whole Rights not exercised.

         Subject to the provisions of the Rights Agreement, the Rights evidenced
by this Right Certificate may, but are not required to, be redeemed by the
Company at a redemption price of $.01 per Right or exchanged by the Company at
the rate of one Common Share per Right.

         Fractional Preferred Shares will be issued upon the exercise of any
Right or Rights evidenced hereby only in fractions which are integral multiples
of one one-hundredth of a Preferred Share (which may, at the election of the
Company, be evidenced by depositary receipts). In lieu of the issuance of
fractional shares other than in integral multiples of one one-hundredth of a
Preferred Share, a cash payment will be made as provided in the Rights
Agreement.

         No holder of this Right Certificate shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of the Preferred
Shares or of any other securities of the Company which may at any time be
issuable on the exercise hereof, nor shall anything contained in the Rights
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, to give or withhold consent to any corporate action, to receive
notice of meetings or other actions affecting stockholders (except

                                      B-2

<PAGE>

as provided in the Rights Agreement), or to receive dividends or other
subscription rights, or otherwise, until the Right or Rights evidenced by this
Right Certificate shall have been exercised as provided in the Rights Agreement.

         This Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.

         WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal. Dated as of ______________________.

ATTEST:                                      THE GREENBRIER COMPANIES, INC.

Secretary                                    President

Countersigned:

________________________________

By
Authorized Signature

                   [Form of Reverse Side of Right Certificate]

                               FORM OF ASSIGNMENT

                (To be executed by the registered holder if such
               holder desires to transfer the Right Certificate.)

         FOR VALUE RECEIVED _______________________ hereby sells, assigns and
transfers unto _____________________ (Please print name and address of
transferee)

this Right Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint ___________________ Attorney, to
transfer the within Right Certificate on the books of the within-named Company,
with full power of substitution.

Dated:

                                   Signature

Signature Guaranteed:

                                   Certificate

                                      B-3

<PAGE>

         The undersigned hereby certifies by checking the appropriate boxes
that:

         (1) this Right Certificate [ ] is [ ] is not being sold, assigned and
transferred by or on behalf of a Person who is or was an Acquiring Person or an
Affiliate or Associate of any such Acquiring Person (as such terms are defined
in the Rights Agreement); and

         (2) after due inquiry and to the best knowledge of the undersigned, the
undersigned [ ] did [ ] did not acquire the Rights evidenced by this Right
Certificate from any Person who is, was or subsequently became an Acquiring
Person or an Affiliate or Associate of an Acquiring Person.

Dated:

                                                    Signature

                                     NOTICE

         The signatures in the foregoing Assignment and Certificate must
correspond to the name as written upon the face of this Right Certificate in
every particular, without alteration or enlargement or any change whatsoever.

              [Form of Reverse Side of Right Certificate-continued]

         The signatures in the foregoing Assignment must be guaranteed by an
eligible guarantor institution (banks, stock brokers, savings and loan
institutions, and credit unions) with membership in an approved signature
guarantee medallion program pursuant to SEC Rule 17Ad-15.

         In the event the certification set forth above is not completed, the
Company may deem the beneficial owner of the Rights evidenced by this Right
Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as
such terms are defined in the Rights Agreement) and, in the case of an
assignment, may affix a legend to that effect on any Right Certificates issued
in exchange for this Right Certificate.

                          FORM OF ELECTION TO PURCHASE

     (To be executed if holder desires to exercise the Right Certificate.)

To: The Greenbrier Companies, Inc.

         The undersigned hereby irrevocably elects to exercise _________________
Rights represented by this Right Certificate to purchase the Preferred Shares
issuable upon the exercise of such Rights and requests that certificates for
such Preferred Shares be issued in the name of:

                        (Please print name and address)

                                      B-4

<PAGE>

Please insert social security or other identifying number:

If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

(Please print name and address)

Dated

                                                    Signature

Signature Guaranteed:

              [Form of Reverse Side of Right Certificate-continued]

                                   Certificate

         The undersigned hereby certifies by checking the appropriate boxes
that:

         (1) the Rights evidenced by this Right Certificate [ ] are [ ] are not
beneficially owned by an Acquiring Person or an Affiliate or an Associate
thereof (as such terms are defined in the Rights Agreement); and

         (2) after due inquiry and to the best knowledge of the undersigned, the
undersigned [ ] did [ ] did not acquire the Rights evidenced by this Right
Certificate from any person who is, was or subsequently became an Acquiring
Person or an Affiliate or Associate of an Acquiring Person.

Dated:

                                                    Signature

                                     NOTICE

         The signatures in the foregoing Form of Election to Purchase and
Certificate must correspond to the name as written upon the face of this Right
Certificate in every particular, without alteration or enlargement or any change
whatsoever.

         The signatures in the foregoing Form of Election to Purchase must be
guaranteed by an eligible guarantor institution (banks, stock brokers, savings
and loan institutions, and credit

                                      B-5

<PAGE>

unions) with membership in an approved signature guarantee medallion program
pursuant to SEC Rule 17Ad-15.

         In the event the certification set forth above is not completed, the
Company may deem the beneficial owner of the Rights evidenced by this Right
Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as
such terms are defined in the Rights Agreement) and, in the case of an
assignment, may affix a legend to that effect on any Right Certificates issued
in exchange for this Right Certificate.

                                      B-6

<PAGE>

                                                                       Exhibit C

                         THE GREENBRIER COMPANIES, INC.
                  SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK

         On July 13, 2004, the Board of Directors of The Greenbrier Companies,
Inc. (the "Company") declared a dividend distribution of one Right for each
outstanding share of common stock, $0.001 par value (the "Common Stock"), of the
Company to the stockholders of record at the close of business on July 26, 2004
(the "Record Date"). Each Right entitles the registered holder to purchase from
the Company one one-hundredth of a share of Series A Participating Preferred
Stock, $0.001 par value (the "Preferred Shares"), at a price of $100 per share
(the "Purchase Price"), subject to adjustment. The description and terms of the
Rights are set forth in a Rights Agreement dated as of July 13, 2004 (the
"Rights Agreement"), between the Company and EquiServe Trust Company, N.A. (the
"Rights Agent").

         Initially, the Rights will be attached to all Common Stock certificates
representing shares then outstanding, and no separate certificates evidencing
Rights (the "Right Certificates") will be distributed. Until the earlier to
occur of (i) 10 days following a public announcement that a person or group of
affiliated or associated persons (other than (x) the Company, a subsidiary, an
employee benefit plan of the Company or a subsidiary, or a person holding shares
for or under the terms of such a plan or (y) any person who as of the Record
Date is the beneficial owner of 12% or more of the Common Stock, unless and
until such person thereafter becomes the beneficial owner of any additional
Common Stock other than as a result of certain stock dividends, stock splits or
similar transactions effected by the Company or an acquisition of Common Stock
by the Company) (an "Acquiring Person"), acquired, or obtained the right to
acquire, beneficial ownership of 12% or more of the outstanding shares of Common
Stock (the date of such first public announcement being the "Shares Acquisition
Date") and (ii) 10 business days (or, with respect to (i) or (ii), such later
date as may be determined by action of the Board of Directors) following the
commencement of (or the announcement of an intention to make) a tender offer or
exchange offer the consummation of which would result in the beneficial
ownership by a person or group of 12% or more of the outstanding shares of
Common Stock, the Rights will be evidenced, with respect to any of the Common
Stock certificates outstanding as of the Record Date, by such Common Stock
certificate. The earlier of the dates described in clauses (i) and (ii) above is
referred to as the "Distribution Date."

         The Rights Agreement provides that, until the Distribution Date, the
Rights will be transferred with and only with the Common Stock. As long as the
Rights are attached to the Common Stock, the Company will issue one Right with
each share of Common Stock that becomes outstanding so that all outstanding
shares will have attached Rights. Until the Distribution Date (or earlier
redemption or expiration of the Rights), (i) Common Stock certificates issued
after the Record Date upon transfer or new issuance of Common Stock will contain
a notation incorporating the Rights Agreement by reference and (ii) the
surrender for transfer of any certificates evidencing Common Stock will also
constitute the transfer of the Rights associated with the Common Stock
represented by such certificate. As soon as practicable following the
Distribution Date, Right Certificates will be mailed to holders of record

                                      C-1

<PAGE>

of the Common Stock as of the close of business on the Distribution Date and
such separate Right Certificates alone will evidence the Rights.

         The Rights are not exercisable until the Distribution Date. The Rights
will expire at the earliest of (i) the close of business on July 26, 2014, or
(ii) redemption or exchange by the Company as described below.

         In the event that any person becomes an Acquiring Person, proper
provision shall be made so that each holder of a Right (except as provided
below) will thereafter have the right to receive upon exercise that number of
shares of Common Stock of the Company having a market value of two times the
exercise price of the Right.

         In the event that, at any time following the Distribution Date, the
Company is acquired in a merger or other business combination transaction, or
more than 50 percent of its assets or earning power is sold, proper provision
shall be made so that each holder of a Right (except as provided below) will
thereafter have the right to receive, upon the exercise at the then-current
exercise price of the Right, that number of shares of common stock of the
acquiring or surviving company having a market value of two times the exercise
price of the Right.

         Following the occurrence of any of the events described in the
preceding two paragraphs, any Rights that are or (under certain circumstances
specified in the Rights Agreement) were, beneficially owned by any Acquiring
Person shall immediately become null and void.

         The Purchase Price payable, and the number of Preferred Shares or other
securities or property issuable, upon exercise of the Rights are subject to
adjustment from time to time to prevent dilution.

         No fractional Preferred Shares other than fractions in multiples of one
one-hundredth of a share will be issued and, in lieu thereof, an adjustment in
cash will be made based on the market price of the Preferred Shares on the last
trading date prior to the date of exercise.

         At any time prior to the tenth day following the Shares Acquisition
Date, the Company may redeem the Rights in whole, but not in part, at a price of
$.01 per Right (the "Redemption Price"). Subject to certain conditions, the
Company's right of redemption may be reinstated after the expiration of such
right if each Acquiring Person reduces its beneficial ownership to 12 percent or
less of the outstanding shares of Common Stock in a transaction or series of
transactions not involving the Company. Immediately upon the action of the Board
of Directors ordering the redemption of the Rights (or at such time and date
thereafter as the Board of Directors may specify), the right to exercise the
Rights will terminate and the only right of the holders of Rights will be to
receive the Redemption Price.

         At any time after a person becomes an Acquiring Person and prior to the
time any Person, together with all Affiliates and Associates of such Person,
becomes the beneficial owner of 50 percent or more of the Common Stock then
outstanding, the Company may exchange the then outstanding and exercisable
Rights (other than Rights beneficially owned by such Acquiring Person which

                                      C-2

<PAGE>

became null and void), in whole or in part, for Common Stock at the exchange
ratio of one share of Common Stock per Right, subject to adjustment.

         Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the right
to vote or to receive dividends.

         The provisions of the Rights Agreement may be amended in any manner
prior to the Distribution Date. After such date, the provisions of the Rights
Agreement may not be amended in a manner which would adversely affect the
interests of holders of Rights (excluding the interests of any Acquiring
Person).

                                       C-3<PAGE>

                                                                   EXHIBIT 10(a)

================================================================================

                                 $1,500,000,000

                                     364-DAY
                           SIXTH AMENDED AND RESTATED
                COMPETITIVE ADVANCE AND REVOLVING CREDIT FACILITY

                                      among

                               DELPHI CORPORATION,

                               The Several Lenders
                        from Time to Time Parties Hereto,

                                 CITIBANK, N.A.,
                              as Syndication Agent,

                               BARCLAYS BANK PLC,
                        DEUTSCHE BANK SECURITIES INC. and
                                 HSBC BANK USA,
                             as Documentation Agents

                                       and

                              JPMORGAN CHASE BANK,
                             as Administrative Agent

                            Dated as of June 18, 2004

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

         J.P. MORGAN SECURITIES INC. and CITIGROUP GLOBAL MARKETS INC.,
                 as Joint Lead Arrangers and Joint Bookrunners

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   Page
<S>                                                                                                                <C>
SECTION 1. DEFINITIONS...........................................................................................    1

         1.1.     Defined Terms..................................................................................    1
         1.2.     Other Definitional Provisions..................................................................   16

SECTION 2. AMOUNT AND TERMS OF THE FACILITIES....................................................................   16

         2.1.     Amount and Terms of the U.S. Commitments.......................................................   16
         2.2.     Amounts and Terms of the Multicurrency Commitments.............................................   18
         2.3.     Competitive Borrowings.........................................................................   18
         2.4.     Termination or Reduction of Commitments........................................................   21
         2.5.     Prepayments....................................................................................   22
         2.6.     Conversion and Continuation Options............................................................   23
         2.7.     Minimum Amounts of Tranches....................................................................   24
         2.8.     Repayment of Loans; Evidence of Debt...........................................................   24
         2.9.     Interest Rates and Payment Dates...............................................................   25
         2.10.    Facility Fee...................................................................................   26
         2.11.    Computation of Interest and Fees...............................................................   27
         2.12.    Inability to Determine Interest Rate...........................................................   27
         2.13.    Pro Rata Treatment and Payments................................................................   28
         2.14.    Illegality.....................................................................................   30
         2.15.    Increased Costs................................................................................   30
         2.16.    Taxes..........................................................................................   31
         2.17.    Indemnity......................................................................................   32
         2.18.    Notice of Amounts Payable; Relocation of Lending Office; Mandatory Assignment..................   33
         2.19.    Commitment Increases...........................................................................   34

SECTION 3. REPRESENTATIONS AND WARRANTIES........................................................................   36

         3.1.     Financial Condition............................................................................   36
         3.2.     Corporate Existence; Compliance with Law.......................................................   36
         3.3.     Corporate Power; Authorization; Enforceable Obligations........................................   36
         3.4.     No Legal Bar; No Default.......................................................................   36
         3.5.     No Material Litigation.........................................................................   37
         3.6.     Federal Regulations............................................................................   37
         3.7.     Investment Company Act.........................................................................   37
         3.8.     ERISA..........................................................................................   37
         3.9.     No Material Misstatements......................................................................   37
         3.10.    Environmental Matters..........................................................................   37
         3.11.    Subsidiaries...................................................................................   38
         3.12.    Purpose of Loans...............................................................................   38

SECTION 4. CONDITIONS PRECEDENT..................................................................................   38
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                                 <C>
         4.1.     Conditions to Effectiveness....................................................................   38
         4.2.     Conditions to Each Loan........................................................................   39

SECTION 5. AFFIRMATIVE COVENANTS.................................................................................   39

         5.1.     Financial Statements...........................................................................   39
         5.2.     Certificates; Other Information................................................................   40
         5.3.     Notices........................................................................................   40
         5.4.     Conduct of Business and Maintenance of Existence...............................................   41
         5.5.     Books and Records..............................................................................   41
         5.6.     Environmental Laws.............................................................................   41

SECTION 6. NEGATIVE COVENANTS....................................................................................   41

         6.1.     Consolidated Leverage Ratio....................................................................   41
         6.2.     Indebtedness...................................................................................   41
         6.3.     Liens..........................................................................................   42
         6.4.     Sale-Leasebacks................................................................................   42
         6.5.     Merger, Consolidation, etc.....................................................................   42

SECTION 7. EVENTS OF DEFAULT.....................................................................................   43

SECTION 8. THE ADMINISTRATIVE AGENT..............................................................................   44

         8.1.     Appointment....................................................................................   44
         8.2.     Delegation of Duties...........................................................................   45
         8.3.     Exculpatory Provisions.........................................................................   45
         8.4.     Reliance by Administrative Agent...............................................................   45
         8.5.     Notice of Default..............................................................................   45
         8.6.     Non-Reliance on Administrative Agent and Other Lenders.........................................   46
         8.7.     Indemnification................................................................................   46
         8.8.     Administrative Agent in Its Individual Capacity................................................   47
         8.9.     Successor Administrative Agent.................................................................   47
         8.10.    Syndication Agent and Documentation Agents.....................................................   47

SECTION 9. MISCELLANEOUS.........................................................................................   47

         9.1.     Amendments and Waivers.........................................................................   47
         9.2.     Notices........................................................................................   49
         9.3.     No Waiver; Cumulative Remedies.................................................................   50
         9.4.     Survival of Representations and Warranties.....................................................   50
         9.5.     Payment of Expenses and Taxes..................................................................   50
         9.6.     Successors and Assigns; Participations and Assignments.........................................   51
         9.7.     Adjustments....................................................................................   54
         9.8.     Loan Conversion/Participations.................................................................   54
         9.9.     Counterparts...................................................................................   56
         9.10.    Severability...................................................................................   57
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<S>                                                                                                            <C>
      9.11.  GOVERNING LAW..................................................................................   57
      9.12.  WAIVERS OF JURY TRIAL..........................................................................   57
      9.13.  Confidentiality................................................................................   57
      9.14.  USA PATRIOT Act................................................................................   57
</TABLE>

                                     -iii-
<PAGE>

                                                                              iv

SCHEDULES

I        Commitments; Competitive Bid Lenders
II       Addresses for Notices
III      Administrative Schedule
3.11     Subsidiaries

EXHIBITS

A        Competitive Bid Request
B        Invitation for Competitive Bids
C        Competitive Bid
D        Competitive Bid Accept/Reject Letter
E        Assignment and Assumption
F-1      Opinion of Assistant General Counsel - Commercial & Transactional of
          the Borrower
F-2      Opinion of Heller Ehrman White & Mcauliffe LLP, New York counsel to the
          Borrower
F-3      Opinion of Simpson Thacher & Bartlett LLP
G        Commitment Increase Supplement
H        Additional Lender Supplement

<PAGE>

            SIXTH AMENDED AND RESTATED COMPETITIVE ADVANCE AND REVOLVING CREDIT
FACILITY, dated as of June 18, 2004, (amending and restating the Fifth Amended
and Restated Competitive Advance and Revolving Credit Facility dated as of June
20, 2003, which in turn amended and restated the Fourth Amended and Restated
Competitive Advance and Revolving Credit Facility dated as of June 21, 2002,
which in turn amended and restated the Third Amended and Restated Competitive
Advance and Revolving Credit Facility dated as of June 22, 2001, which in turn
amended and restated the Second Amended and Restated Competitive Advance and
Revolving Credit Facility dated as of June 23, 2000, which in turn amended and
restated the Amended and Restated Competitive Advance and Revolving Credit
Facility dated as of January 3, 2000, which in turn amended and restated the
Competitive Advance and Revolving Credit Facility dated as of January 4, 1999),
among DELPHI CORPORATION, a Delaware corporation (the "Borrower"), the several
banks and other financial institutions from time to time parties to this
Agreement (the "Lenders"), CITIBANK, N.A., as syndication agent (the
"Syndication Agent"), BARCLAYS BANK PLC, DEUTSCHE BANK SECURITIES INC. and HSBC
BANK USA, as documentation agents (collectively, the "Documentation Agents"),
and JPMORGAN CHASE BANK, as administrative agent for the Lenders hereunder (in
such capacity, the "Administrative Agent").

            The parties hereto hereby agree as follows:

                             SECTION 1. DEFINITIONS

            1.1. Defined Terms. As used in this Agreement, the following terms
shall have the following meanings:

            "ABR": for any day, a rate per annum (rounded upwards, if necessary,
to the next 1/100 of 1%) equal to the greater of (a) the Prime Rate in effect on
such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2
of 1%. If for any reason the Administrative Agent shall have determined (which
determination shall be conclusive absent manifest error) that it is unable to
ascertain the Federal Funds Effective Rate for any reason, the ABR shall be
determined without regard to clause (b) of the first sentence of this definition
until the circumstances giving rise to such inability no longer exist. Any
change in the ABR due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on the effective
day of such change in the Prime Rate or the Federal Funds Effective Rate,
respectively.

            "ABR Loans": Loans the rate of interest applicable to which is based
upon the ABR.

            "Additional Lender": as defined in subsection 2.19(b).

            "Additional Lender Supplement": as defined in subsection 2.19(b).

            "Adjusted Aggregate Committed Outstandings": with respect to each
Lender, the Aggregate R/C Outstandings of such Lender, plus the amount of any
participating interests purchased by such Lender pursuant to subsection 9.8,
minus the amount of any participating interests sold by such Lender pursuant to
subsection 9.8.

<PAGE>

                                                                               2

            "Administrative Questionnaire": an Administrative Questionnaire in a
form supplied by the Administrative Agent, requesting contact information and
other administrative details for each Lender.

            "Administrative Schedule": Schedule III, which contains interest
rate definitions and administrative information in respect of each Available
Foreign Currency.

            "Aggregate Available Multicurrency Commitments": as at any date of
determination with respect to all Multicurrency Lenders, an amount in Dollars
equal to the Available Multicurrency Commitments of all Multicurrency Lenders on
such date.

            "Aggregate Available U.S. Commitments": as at any date of
determination with respect to all U.S. Lenders, an amount in Dollars equal to
the Available U.S. Commitments of all U.S. Lenders on such date.

            "Aggregate Multicurrency Outstandings": as at any date of
determination with respect to any Multicurrency Lender, an amount in the
applicable Available Foreign Currencies equal to the aggregate unpaid principal
amount of such Lender's Multicurrency Loans.

            "Aggregate R/C Outstandings": as at any date of determination with
respect to any Lender, an amount in Dollars equal to the sum of (a) the
Aggregate U.S. R/C Outstandings of such Lender and (b) the Dollar Equivalent of
the Aggregate Multicurrency Outstandings of such Lender.

            "Aggregate Total Outstandings": as at any date of determination with
respect to any Lender, the sum of such Lender's Aggregate R/C Outstandings and
such Lender's Competitive Loans then outstanding.

            "Aggregate U.S. Commitments": the aggregate amount of the U.S.
Commitments of all the Lenders. As of the date of this Agreement, the Aggregate
U.S. Commitments are U.S.$1,500,000,000.

            "Aggregate U.S. R/C Outstandings": as at any date of determination
with respect to any U.S. Lender, an amount in Dollars equal to the aggregate
unpaid principal amount of such U.S. Lender's U.S. Revolving Credit Loans on
such date.

            "Agreement": this Agreement, as amended, supplemented or otherwise
modified from time to time.

            "Applicable Margin": as defined in subsection 2.9(f).

            "Assignee": any assignee of a Lender's rights and obligations
hereunder pursuant to an assignment entered into in accordance with subsection
9.6(b).

            "Assignment and Assumption": means an assignment entered into by a
Lender and an Assignee, and accepted by the Administrative Agent, in the form of
Exhibit E or any other form approved by the Administrative Agent and the
Borrower.

<PAGE>

                                                                               3

            "Available Foreign Currencies": Pounds Sterling, Euro, and any other
available and freely-convertible non-Dollar currency selected by the Borrower
and approved by the Administrative Agent and the Majority Multicurrency Lenders
in the manner described in subsection 9.1(b).

            "Available Multicurrency Commitment": as at any date of
determination with respect to any Multicurrency Lender (after giving effect to
the making and payment of any U.S. Revolving Credit Loans required to be made on
such date pursuant to subsection 2.1(c)), an amount in U.S. Dollars equal to the
lesser of (a) the excess, if any, of (i) the amount of such Multicurrency
Lender's Multicurrency Commitment in effect on such date over (ii) the Dollar
Equivalent of the Aggregate Multicurrency Outstandings of such Multicurrency
Lender on such date and (b) the excess, if any, of (i) the amount of such
Multicurrency Lender's U.S. Commitment in effect on such date over (ii) the
Aggregate R/C Outstandings of such Multicurrency Lender on such date.

            "Available U.S. Commitment": as at any date of determination with
respect to any U.S. Lender (after giving effect to the making and payment of any
U.S. Revolving Credit Loans required to be made on such date pursuant to
subsection 2.1(c)), an amount in Dollars equal to the excess, if any, of (a) the
amount of such U.S. Lender's U.S. Commitment in effect on such date over (b) the
Aggregate R/C Outstandings of such U.S. Lender on such date.

            "Board": the Board of Governors of the Federal Reserve System of the
United States (or any successor).

            "Borrowing": a group of Loans of a single Type made by the Lenders
(or, in the case of a Competitive Borrowing, by the Lender or Lenders whose
Competitive Bids have been accepted pursuant to subsection 2.3).

            "Borrowing Date": a date on which a Borrowing is made hereunder.

            "Business Day": (a) when such term is used in respect of a day on
which a Loan in an Available Foreign Currency is to be made, a payment is to be
made in respect of such Loan, a Spot Exchange Rate is to be set in respect of
such Available Foreign Currency or any other dealing in such Available Foreign
Currency is to be carried out pursuant to this Agreement, such term shall mean a
London Banking Day which is also a day on which banks are open for general
banking business in (x) the city which is the principal financial center of the
country of issuance of such Available Foreign Currency (or, in the case of
Multicurrency Loans in Pounds Sterling, Paris) or (y) in the case of Euro only,
Frankfurt am Main, Germany (or such other principal financial center as the
Administrative Agent may from time to time designate for this purpose) and (b)
when such term is used in any context in this Agreement (including as described
in the foregoing clause (a), such term shall mean a day which, in addition to
complying with any applicable requirements set forth in the foregoing clause
(a), is a day other than a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to close; provided,
that when such term is used for the purpose of determining the date on which the
Eurocurrency Rate is determined under this Agreement for any Multicurrency Loan
denominated in Euro for any Interest Period therefor and for purposes of
determining the first and last day of any such Interest Period, references in
this Agreement to Business Days shall be deemed to be references to Target
Operating Days.

<PAGE>

                                                                               4

            "Closing Date": the date hereof, provided that each of the
conditions precedent set forth in subsection 4.1 shall have been satisfied.

            "Code": the Internal Revenue Code of 1986, as amended from time to
time.

            "Commitment Increase Supplement": as defined in subsection 2.19(b).

            "Committed Outstandings Percentage": on any date with respect to any
Lender, the percentage which the Adjusted Aggregate Committed Outstandings of
such Lender constitutes of the Adjusted Aggregate Committed Outstandings of all
Lenders.

            "Commitments": the collective reference to the U.S. Commitments and
the Multicurrency Commitments.

            "Commitment Period": the period from and including the date hereof
to but not including the Termination Date or such earlier date on which the
Commitments shall terminate as provided herein.

            "Competitive Bid": an offer by a Lender to make a Competitive Loan
pursuant to subsection 2.3.

            "Competitive Bid Accept/Reject Letter": a notification made by the
Borrower pursuant to subsection 2.3(f) in the form of Exhibit D.

            "Competitive Bid Lenders": the U.S. Lenders specified on Schedule I,
as such Schedule is modified from time to time to add additional Competitive Bid
Lenders with the consent of the Borrower, as being "Competitive Bid Lenders".

            "Competitive Bid Rate": as to any Competitive Bid made by a U.S.
Lender pursuant to subsection 2.3, (i) in the case of a Eurodollar Rate
Competitive Loan, the Eurodollar Rate plus (or minus) the Margin, and (ii) in
the case of a Fixed Rate Loan, the fixed rate of interest offered by the U.S.
Lender making such Competitive Bid.

            "Competitive Bid Request": a request made pursuant to subsection
2.3(b) in the form of Exhibit A.

            "Competitive Borrowing": a Borrowing consisting of a Competitive
Loan or concurrent Competitive Loans from the U.S. Lender or U.S. Lenders whose
Competitive Bids for such Borrowing have been accepted by a Borrower under the
bidding procedure described in subsection 2.3.

            "Competitive Loan": a Loan (which shall be a Eurodollar Rate
Competitive Loan or a Fixed Rate Loan denominated in Dollars) made by a U.S.
Lender pursuant to the bidding procedure described in subsection 2.3.

            "Confidential Information Memorandum": the Confidential Information
Memorandum dated May 2004 and furnished to the Lenders.

            "Consolidated EBITDA": for any period, Consolidated Net Income for
such period plus, without duplication and to the extent reflected as a charge in
the statement of such

<PAGE>

                                                                               5

Consolidated Net Income for such period, the sum of (a) income tax expense, (b)
interest expense (other than interest expense or discount during such period
attributable to Permitted Receivables Financing with an aggregate principal
amount not in excess of $1,500,000,000), (c) amortization or writeoff of debt
discount and debt issuance costs and commissions, discounts and other fees and
charges associated with Indebtedness (including the Loans), (d) depreciation and
amortization expense, (e) amortization of intangibles (including, but not
limited to, goodwill) and organization costs and (f) any extraordinary, unusual
or non-recurring non-cash expenses or losses, and minus, to the extent included
in the statement of such Consolidated Net Income for such period, the sum of (a)
interest income and (b) any extraordinary, unusual or non-recurring income or
gains, all as determined on a consolidated basis. For the purposes of
calculating Consolidated EBITDA for any period of four consecutive fiscal
quarters (each, a "Reference Period") pursuant to any determination of the
Consolidated Leverage Ratio, if during such Reference Period the Borrower or any
Subsidiary shall have made a Material Acquisition, Consolidated EBITDA for such
Reference Period may, at the option of the Borrower, be calculated after giving
pro forma effect thereto as if such Material Acquisition occurred on the first
day of such Reference Period. As used in this paragraph, "Material Acquisition"
means any acquisition of property or series of related acquisitions of property
that involves the payment of consideration (including, without limitation, the
assumption of debt) by the Borrower and its Subsidiaries in excess of
$10,000,000.

            "Consolidated Leverage Ratio": as at the end of any fiscal quarter,
the ratio of (a) Consolidated Total Debt on such day (other than any Permitted
Receivables Financing outstanding on such date in an aggregate principal amount
not to exceed $1,500,000,000 and any other Non-Recourse Debt not related to
accounts receivable of the Borrower or any of its Subsidiaries) to (b)
Consolidated EBITDA for the four fiscal quarter period ending on such day.

            "Consolidated Net Income": for any period, the consolidated net
income (or loss) of the Borrower and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP.

            "Consolidated Total Assets": at any date, all amounts that would, in
conformity with GAAP, be set forth opposite the caption "total assets" (or any
like caption) on a consolidated balance sheet of the Borrower and its
Subsidiaries at such date.

            "Consolidated Total Debt": at any date and without duplication, (i)
the aggregate principal amount of (i) all Indebtedness of the Borrower and its
Subsidiaries on a consolidated basis and (ii) all guarantees by the Borrower or
any of its Subsidiaries of Indebtedness on a consolidated basis of any other
Person (other than the Borrower or a Subsidiary) at such date.

            "Contractual Obligation": as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

            "Conversion Date": any date on which either (a) an Event of Default
under Section 7(g) has occurred or (b) the Commitments shall have been
terminated prior to the Termination Date and/or the Loans shall have been
declared immediately due and payable, in either case pursuant to Section 7.

            "Converted Loans": as defined in subsection 9.8(a).

<PAGE>

                                                                               6

            "Default": any of the events specified in Section 7, whether or not
any requirement for the giving of notice, the lapse of time, or both, or any
other condition, has been satisfied.

            "Dollar Equivalent": on any date of determination, with respect to
any amount in any Available Foreign Currency, the equivalent in Dollars of such
amount, determined by the Administrative Agent using the Spot Exchange Rate with
respect to such Available Foreign Currency, as the case may be, then in effect.

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

            "ERISA": the Employee Retirement Income Security Act of 1974, as
amended from time to time.

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

            "Environmental Laws" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating to the environment, preservation or reclamation of natural resources,
the management, release or threatened release of any Hazardous Material or to
health and safety matters relating to the environment.

            "Environmental Liability" means any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary
directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous
Materials, (d) the release or threatened release of any Hazardous Materials into
the environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

            "Euro" and "(euro)": the single currency of Participating Member
States introduced in accordance with the provisions of Article 109(1)4 of the
Treaty and, in respect of all payments to be made under this Agreement in Euro,
means immediately available, freely transferable funds.

            "Eurocurrency Rate": with respect to each Interest Period pertaining
to a Multicurrency Loan, the Eurocurrency Rate determined for such Interest
Period and the Available Foreign Currency in which such Multicurrency Loan is
denominated in the manner set forth in the Administrative Schedule.

            "Eurocurrency Liabilities": for any day, the aggregate (without
duplication) of the maximum rates (expressed as a decimal fraction) of reserve
requirements in effect on such day (including, without limitation, basic,
supplemental, marginal and emergency reserves under any regulations of the Board
or other Governmental Authority having jurisdiction with respect thereto)
dealing with reserve requirements prescribed for eurocurrency funding (currently
referred to as "Eurocurrency Liabilities" in Regulation D of the Board)
maintained by a member bank of the Federal Reserve System.

<PAGE>

                                                                               7

            "Eurocurrency Reserve Rate": with respect to each day during each
Interest Period pertaining to a Multicurrency Loan, a rate per annum determined
for such day in accordance with the following formula (rounded upward to the
nearest 1/100th of 1%):

                                Eurocurrency Rate
                         --------------------------------
                         1.00 - Eurocurrency Liabilities

            "Eurodollar Rate Borrowing": a Borrowing comprised of Eurodollar
Rate Loans.

            "Eurodollar Rate Competitive Loan": any Competitive Loan bearing
interest at a rate determined by reference to the Eurodollar Rate.

            "Eurodollar Rate Loan": any Eurodollar Rate Competitive Loan or
Eurodollar Revolving Credit Loan.

            "Eurodollar Rate": with respect to each day during each Interest
Period pertaining to a Eurodollar Rate Loan, the rate of interest determined on
the basis of the rate for deposits in Dollars for a period equal to such
Interest Period commencing on the first day of such Interest Period appearing on
Page 3750 of the Telerate Service as of 11:00 A.M., London time, two Business
Days prior to the beginning of such Interest Period. In the event that such rate
does not appear on Page 3750 of the Telerate Service (or otherwise on such
service), the "Eurodollar Rate" shall be determined by reference to such other
publicly available service for displaying eurodollar rates as may be agreed upon
by the Administrative Agent and the Borrower or, in the absence of such
agreement, the "Eurodollar Rate" shall instead be the rate per annum equal to
the average (rounded upward to the nearest 1/100th of 1%) of the respective
rates notified to the Administrative Agent by each of the Reference Lenders as
the rate at which such Reference Lender is offered Dollar deposits at or about
10:00 A.M., New York City time, two Business Days prior to the beginning of such
Interest Period in the interbank eurodollar market where the eurodollar and
foreign currency and exchange operations in respect of its Eurodollar Rate Loans
are then being conducted for delivery on the first day of such Interest Period
for the number of days comprised therein and in an amount comparable to the
amount of its Eurodollar Rate Loan to be outstanding during such Interest
Period.

            "Eurodollar Reserve Rate": with respect to each day during each
Interest Period pertaining to a Eurodollar Rate Loan, a rate per annum
determined for such day in accordance with the following formula (rounded upward
to the nearest 1/100th of 1%):

                                 Eurodollar Rate
                         ------------------------------
                         1.00 - Eurocurrency Liabilities

            "Eurodollar Revolving Credit Loan": any U.S. Revolving Credit Loan
bearing interest at a rate determined by reference to the Eurodollar Rate.

            "Event of Default": any of the events specified in Section 7;
provided that any requirement for the giving of notice, the lapse of time, or
both, or any other condition, has been satisfied.

            "Excess Outstanding Event": as defined in subsection 2.5(c).

<PAGE>

                                                                               8

            "Existing 5-Year Facility": The 5-Year Amended and Restated
Competitive Advance and Revolving Credit Facility, dated as of June 23, 2000 (as
amended and in effect on the date immediately preceding the date hereof), among
the Borrower and the lenders from time to time parties thereto.

            "Federal Funds Effective Rate" shall mean, for any day, 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 on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day which is a Business Day, the average
of the quotations for such day of such rates on such transactions received by
the Administrative Agent from three federal funds brokers of recognized standing
selected by it.

            "Financial Officer": with respect to any Person, the chief financial
officer, principal accounting officer, a financial vice president, treasurer or
assistant treasurer of such Person.

            "First Lender": as defined in subsection 9.8(b).

            "Fixed Rate Borrowing": a Borrowing comprised of Fixed Rate Loans.

            "Fixed Rate Loan": any Competitive Loan bearing interest at a fixed
percentage rate per annum specified by the Lender making such Loan in its
Competitive Bid.

            "Funding Commitment Percentage": as at any date of determination
(after giving effect to the making and payment of any Loans made on such date
pursuant to subsection 2.1(c)), with respect to any U.S. Lender, that percentage
which the Available U.S. Commitment of such U.S. Lender then constitutes of the
Aggregate Available U.S. Commitments.

            "GAAP": generally accepted accounting principles in the United
States of America as in effect from time to time and as applied by the Borrower
in the preparation of its most recent financial statements delivered pursuant to
subsection 3.1(b); provided that, if the Borrower notifies the Administrative
Agent that the Borrower requests an amendment to any provision hereof to
eliminate the effect of any change occurring after the date hereof in GAAP or in
the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Majority Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in
accordance herewith.

            "Governmental Authority": any nation or government, any state or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of government
including, without limitation, the European Central Bank.

            "Hazardous Materials" means all explosive or radioactive substances
or wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon

<PAGE>

                                                                               9

gas, infectious or medical wastes and all other substances or wastes of any
nature regulated pursuant to any Environmental Law.

            "Increasing Lender": as defined in subsection 2.19(b).

            "Indebtedness": of any Person at any date, the amount outstanding on
such date under notes, bonds, debentures or other similar evidences of
indebtedness for money borrowed (including, without limitation, indebtedness for
borrowed money evidenced by a loan account).

            "Intercompany Sale-Leasebacks": Sale-Leasebacks involving leases
between the Borrower and a Subsidiary or between Subsidiaries.

            "Interest Payment Date": (a) as to any ABR Loan the last day of each
March, June, September and December to occur while such Loan is outstanding and
on the date such Loan is paid in full, (b) as to any Eurodollar Rate Loan, Fixed
Rate Loan or Multicurrency Loan having an Interest Period of three months or 90
days, as the case may be, or less, the last day of the Interest Period
applicable thereto and (c) as to any Eurodollar Rate Loan, Fixed Rate Loan or
Multicurrency Loan, having an Interest Period longer than three months or 90
days, as the case may be, each day which is three months or 90 days, as the case
may be, and any multiple thereof, after the first day of the Interest Period
applicable thereto; provided that, in addition to the foregoing, each of (x) the
date upon which both the Commitments have been terminated and the Loans have
been paid in full and (y) the Termination Date shall be deemed to be an
"Interest Payment Date" with respect to any interest which is then accrued
hereunder.

            "Interest Period": (a) with respect to any Eurodollar Rate Loan or
Multicurrency Loan:

                  (i) initially, the period commencing on the borrowing or
      conversion date, as the case may be, with respect to such Eurodollar Rate
      Loan or Multicurrency Loan and ending one, two, three or six (or if
      available to all the Lenders (or, in the case of Eurodollar Rate
      Competitive Loans, the Lender making such Loans) nine or twelve) months
      thereafter, as selected by the Borrower in its notice of borrowing or
      notice of conversion, as the case may be, given with respect thereto; and

                  (ii) thereafter, each period commencing on the last day of the
      next preceding Interest Period applicable to such Eurodollar Rate Loan or
      Multicurrency Loan and ending one, two, three or six (or if available to
      all the Lenders (or, in the case of Eurodollar Rate Competitive Loans, the
      Lender making such Loans) nine or twelve) months thereafter, as selected
      by the Borrower by irrevocable notice to the Administrative Agent not less
      than three Business Days prior to the last day of the then current
      Interest Period with respect thereto; and

                  (iii)with respect to any Fixed Rate Loan, the period
      commencing on the borrowing date with respect to such Fixed Rate Loan and
      ending such number of days thereafter (which shall be not less than seven
      days or more than 180 days after the date of such borrowing) as selected
      by the Borrower in its Competitive Bid Request given with respect thereto;

<PAGE>

                                                                              10

      provided that all of the foregoing provisions relating to Interest Periods
      are subject to the following:

                  (A) if any Interest Period would otherwise end on a day that
      is not a Business Day, such Interest Period shall be extended to the next
      succeeding Business Day unless, in the case of an Interest Period
      pertaining to a Eurodollar Rate Loan or Multicurrency Loan, the result of
      such extension would be to carry such Interest Period into another
      calendar month in which event such Interest Period shall end on the
      immediately preceding Business Day;

                  (B) any Interest Period that begins on the last Business Day
      of a calendar month (or on a day for which there is no numerically
      corresponding day in the calendar month at the end of such Interest
      Period) shall end on the last Business Day of a calendar month; and

                  (C) any Interest Period applicable to a Eurodollar Rate Loan
      or Multicurrency Loan that would otherwise extend beyond the Termination
      Date (or beyond the date which is one year following the Termination Date
      if the Borrower elects to repay the Loans on such date pursuant to
      subsection 2.8(a)) shall end, respectively, on the Termination Date or on
      the first anniversary thereof.

            "Invitation for Competitive Bids": an invitation made by the
Borrower pursuant to subsection 2.3(c) in the form of Exhibit B.

            "JPMCB": JPMorgan Chase Bank.

            "Lender": a U.S. Lender or a Multicurrency Lender, as the context
shall require; collectively, the "Lenders."

            "Level I Status": exists at any date if, at such date, the Borrower
has senior unsecured long-term debt outstanding, without third-party credit
enhancement, which is either rated A- or better by S&P or A3 or better by
Moody's (it being understood that the higher rating prevails); provided that if
either S&P or Moody's shall cease to issue ratings of debt securities generally,
then the Administrative Agent and the Borrower shall negotiate in good faith to
agree upon a substitute rating agency (and to correlate the system of ratings of
such substitute rating agency with that of the rating agency for which it is
substituting) and (a) until such substitute rating agency is agreed upon, the
foregoing test may be satisfied on the basis of the rating assigned by the other
such rating agency and (b) after such substitute rating agency is agreed upon,
the foregoing test may be satisfied on the basis of the rating assigned by the
other rating agency or such substitute rating agency.

            "Level II Status": exists at any date if, at such date, Level I
Status does not exist and the Borrower has senior unsecured long-term debt
outstanding, without third-party credit enhancement, which is either rated BBB+
or better by S&P or Baa1 or better by Moody's (it being understood that the
higher rating prevails); provided that if either S&P or Moody's shall cease to
issue ratings of debt securities generally, then the Administrative Agent and
the Borrower shall negotiate in good faith to agree upon a substitute rating
agency (and to correlate the system of ratings of such substitute rating agency
with that of the rating agency for which it is substituting) and (a) until such
substitute rating agency is agreed upon, the foregoing test may

<PAGE>

                                                                              11

be satisfied on the basis of the rating assigned by the other such rating agency
and (b) after such substitute rating agency is agreed upon, the foregoing test
may be satisfied on the basis of the rating assigned by the other rating agency
or such substitute rating agency.

            "Level III Status": exists at any date if, at such date, neither
Level I Status nor Level II Status exists and the Borrower has senior unsecured
long-term debt outstanding, without third party credit enhancement, which is
either rated BBB or better by S&P or Baa2 or better by Moody's (it being
understood that the higher rating prevails); provided that if either S&P or
Moody's shall cease to issue ratings of debt securities generally, then the
Administrative Agent and the Borrower shall negotiate in good faith to agree
upon a substitute rating agency (and to correlate the system of ratings of such
substitute rating agency with that of the rating agency for which it is
substituting) and (a) until such substitute rating agency is agreed upon, the
foregoing test may be satisfied on the basis of the rating assigned by the other
such rating agency and (b) after such substitute rating agency is agreed upon,
the foregoing test may be satisfied on the basis of the rating assigned by the
other rating agency or such substitute rating agency.

            "Level IV Status": exists at any date if, at such date, none of
Level I Status, Level II Status or Level III Status exists and the Borrower has
senior unsecured long-term debt outstanding, without third party credit
enhancement, which is either rated BBB- or better by S&P or Baa3 or better by
Moody's (it being understood that the higher rating prevails); provided that if
either S&P or Moody's shall cease to issue ratings of debt securities generally,
then the Administrative Agent and the Borrower shall negotiate in good faith to
agree upon a substitute rating agency (and to correlate the system of ratings of
such substitute rating agency with that of the rating agency for which it is
substituting) and (a) until such substitute rating agency is agreed upon, the
foregoing test may be satisfied on the basis of the rating assigned by the other
such rating agency and (b) after such substitute rating agency is agreed upon,
the foregoing test may be satisfied on the basis of the rating assigned by the
other rating agency or such substitute rating agency.

            "Level V Status": exists at any date if, at such date, none of Level
I Status, Level II Status, Level III Status or Level IV Status exists.

            "Lien": any mortgage, pledge, lien, security interest, conditional
sale or other title retention agreement or other similar encumbrance.

            "Loan": a Competitive Loan, a U.S. Revolving Credit Loan or a
Multicurrency Loan, as the context shall require; collectively, the "Loans."

            "Loans to be Converted": as defined in subsection 9.8(a).

            "London Banking Day": any day on which banks in London are open for
general banking business, including dealings in foreign currency and exchange.

            "Majority Lenders": (a) at any time prior to the termination of the
U.S. Commitments, the Majority U.S. Lenders and (b) at any time after the
termination of the U.S. Commitments, Lenders whose Aggregate Total Outstandings
aggregate more than 50% of the Aggregate Total Outstandings of all Lenders;
provided that for purposes of this definition the Aggregate Total Outstandings
of each Lender shall be adjusted up or down so as to give effect to any
participations purchased or sold pursuant to subsection 9.8.

<PAGE>

                                                                              12

            "Majority Multicurrency Lenders": at any time, Multicurrency Lenders
whose Multicurrency Commitment Percentages aggregate more than 50%.

            "Majority U.S. Lenders": at any time, U.S. Lenders whose U.S.
Commitment Percentages aggregate more than 50%.

            "Margin": as to any Eurodollar Rate Competitive Loan, the margin to
be added to or subtracted from the Eurodollar Rate in order to determine the
interest rate applicable to such Loan, as specified in the Competitive Bid
relating to such Loan.

            "Material Adverse Effect": a material adverse effect on (a) the
financial condition of the Borrower and its Subsidiaries taken as a whole or (b)
the validity or enforceability of this Agreement or the rights or remedies of
the Administrative Agent and the Lenders hereunder.

            "Material Agreements": the material contracts of the Borrower, as
such term is defined in Item 601 of SEC Regulation S-K (excluding agreements
with officers and directors) and included in Borrower's most recently filed Form
10-K.

            "Moody's": Moody's Investors Service, Inc. and its successors.

            "Multicurrency Commitment": as to any Multicurrency Lender at any
time, its obligation to make Multicurrency Loans to the Borrower in an aggregate
amount in Available Foreign Currencies of which the Dollar Equivalent does not
exceed at any time outstanding the lesser of (a) the amount set forth opposite
such Multicurrency Lender's name in Schedule I under the heading "Multicurrency
Commitment" and (b) the U.S. Commitment of such Multicurrency Lender, in each
case as such amount may be changed from time to time pursuant to the terms
hereof. As of the date of this Agreement, the maximum aggregate amount of the
Multicurrency Commitments of the Multicurrency Lenders is U.S.$750,000,000.

            "Multicurrency Commitment Percentage": as to any Multicurrency
Lender at any time, the percentage which such Multicurrency Lender's
Multicurrency Commitment then constitutes of the aggregate Multicurrency
Commitments (or, if the Multicurrency Commitments have terminated or expired,
the percentage which (a) the Dollar Equivalent of the Aggregate Multicurrency
Outstandings of such Multicurrency Lender at such time constitutes of (b) the
Dollar Equivalent of the Aggregate Multicurrency Outstandings of all
Multicurrency Lenders at such time).

            "Multicurrency Lender": each Lender having an amount greater than
zero set forth opposite such Lender's name in Schedule I under the heading
"Multicurrency Commitment."

            "Multicurrency Loans": as defined in subsection 2.2(a).

            "Non-Multicurrency Lender": each U.S. Lender which is not a
Multicurrency Lender.

            "Non-Recourse Debt": all Indebtedness which, in accordance with
GAAP, is not required to be recognized on a consolidated balance sheet of the
Borrower as a liability.

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                                                                              13

            "Notice of Multicurrency Loan Borrowing": with respect to a
Multicurrency Loan, a notice from the Borrower in respect of such Loan,
containing the information in respect of such Loan and delivered to the Person,
in the manner and by the time, specified for a Notice of Multicurrency Loan
Borrowing in respect of the currency of such Loan in the Administrative
Schedule.

            "Original Closing Date": January 4, 1999.

            "Other Lender": as defined in subsection 9.8(b).

            "Participant": as defined in subsection 9.6(c).

            "Participating Member State": each state as described in any EMU
Legislation.

            "Permitted Receivables Financing": at any date of determination, the
aggregate amount of any Non-Recourse Debt outstanding on such date relating to
securitizations or other similar off-balance sheet financings of accounts
receivable of the Borrower or any of its Subsidiaries.

            "Person": an individual, partnership, corporation, business trust,
joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

            "Prime Rate": the rate of interest per annum equal to the prime rate
publicly announced by the majority of the Reference Lenders as its prime rate
(or similar base rate) in effect at its principal office.

            "Quotation Day": in respect of the determination of the Eurocurrency
Rate for any Interest Period for Multicurrency Loans in any Available Foreign
Currency, the day on which quotations would ordinarily be given by prime banks
in the London interbank market (or, if such Available Foreign Currency is Pounds
Sterling, in the Paris interbank market) for deposits in such Available Foreign
Currency for delivery on the first day of such Interest Period; provided, that
if quotations would ordinarily be given on more than one date, the Quotation Day
for such Interest Period shall be the last of such dates. On the date hereof,
the Quotation Day in respect of any Interest Period for any Available Foreign
Currency (other than Euros) is customarily the last London Banking Day prior to
the beginning of such Interest Period which is (a) at least two London Banking
Days prior to the beginning of such Interest Period and (b) a day on which banks
are open for general banking business in the city which is the principal
financial center of the country of issue of such Available Foreign Currency
(and, in the case of Pounds Sterling, in Paris); and the Quotation Day in
respect of any Interest Period for Euros is the day which is two Target
Operating Days prior to the first day of such Interest Period.

            "Reference Lenders": JPMCB, Barclays Bank PLC, Citibank, N.A.,
Deutsche Bank AG New York Branch and HSBC Bank USA.

            "Register": as defined in subsection 9.6(d).

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                                                                              14

            "Related Parties": means, with respect to any specified Person, such
Person's affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's affiliates.

            "Requested Multicurrency Loans": as defined in subsection 2.1(c).

            "Requirement of Law": as to any Person, any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

            "Sale-Leasebacks": as defined in subsection 6.4.

            "S&P": Standard & Poor's Ratings Services and its successors.

            "Significant Subsidiary": as defined in Rule 1-02 of Regulation S-X
promulgated by the U.S. Securities and Exchange Commission and included in the
Borrower's most recently filed Form 10-K.

            "Spot Exchange Rate": with respect to any Available Foreign Currency
on a particular date, the rate at which such Available Foreign Currency may be
exchanged into Dollars in London, as set forth on the relevant page of the
Telerate Screen applicable to such Available Foreign Currency as reasonably
determined by the Administrative Agent. In the event that such rate does not
appear on any such page, the Spot Exchange Rate with respect to such Available
Foreign Currency shall be determined by reference to such other publicly
available service for displaying exchange rates as may be agreed upon by the
Administrative Agent and the Borrower or, in the absence of such agreement, such
Spot Exchange Rate shall instead be determined by reference to the
Administrative Agent's spot rate of exchange quoted to prime banks in London in
the London interbank market where its foreign currency exchange operations in
respect of such Available Foreign Currency are then being conducted, at or about
noon, local time, at such date for the purchase of Dollars with such Available
Foreign Currency for delivery on a spot basis; provided, however, that if at the
time of any such determination, for any reason, no such spot rate is being
quoted and no other methods for determining the Spot Exchange Rate can be
determined as set forth above, the Administrative Agent may use any reasonable
method it deems applicable (after consultation with the Borrower if practicable)
to determine such rate, and such determination shall be conclusive absent
manifest error.

            "Status": as to the Borrower, the existence of Level I Status, Level
II Status, Level III Status, Level IV Status or Level V Status, as the case may
be.

            "Sterling" and "(pound)": pounds Sterling in lawful currency of the
United Kingdom.

            "Subsidiary": as to any Person, a corporation, partnership, limited
liability company or other entity of which shares of stock or other ownership
interests having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency) to
elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned by such Person,
or by one or more Subsidiaries, or by such Person and one or more Subsidiaries.
Unless

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                                                                              15

otherwise qualified, all references to a "Subsidiary" or to "Subsidiaries" in
this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

            "Target Operating Day": any day that is not (a) a Saturday or
Sunday, (b) Christmas Day or New Year's Day or (c) any other day on which the
Trans-European Real-time Gross Settlement Operating System (or any successor
settlement system) is not operating (as determined by the Administrative Agent).

            "Term Out Period": as defined in subsection 2.8(a)(i).

            "Termination Date": June 17, 2005.

            "Third-Party Lender": as defined in subsection 2.19(a).

            "Tranche": the collective reference to Eurodollar Rate Loans or
Multicurrency Loans the then current Interest Periods with respect to all of
which begin on the same date and end on the same later date (whether or not such
Loans shall originally have been made on the same day).

            "Transferee": as defined in subsection 9.6(e).

            "Treaty": the Treaty establishing the European Economic Community,
being the Treaty of Rome of March 25, 1957 as amended by the Single European Act
1987 and the Maastricht Treaty (the Treaty on European Union) (which was signed
on February 7, 1992 and came into force on November 1, 1993) and as may, from
time to time, be further amended, supplemented or otherwise modified.

            "Type": as to any U.S. Revolving Credit Loan, its nature as an ABR
Loan or a Eurodollar Rate Loan, and as to any Competitive Loan, its nature as a
Eurodollar Rate Competitive Loan or a Fixed Rate Loan.

            "U.S. Commitment": as to any U.S. Lender, the obligation of such
U.S. Lender to make U.S. Revolving Credit Loans to the Borrower hereunder in an
aggregate principal and/or stated amount at any one time outstanding not to
exceed the Dollar amount set forth opposite such U.S. Lender's name on Schedule
I under the heading U.S. Commitment, as the same may be changed from time to
time pursuant to the terms hereof.

            "U.S. Commitment Percentage": as to any U.S. Lender at any time, the
percentage which such U.S. Lender's U.S. Commitment then constitutes of the
aggregate U.S. Commitments of all U.S. Lenders (or, if the U.S. Commitments have
terminated or expired, the percentage which (a) the sum of the Aggregate U.S.
R/C Outstandings and the Competitive Loans of such U.S. Lender at such time then
constitutes of (b) the sum of the Aggregate U.S. R/C Outstandings and the
Competitive Loans of all U.S. Lenders at such time).

            "U.S. Lenders": the banks and other financial institutions from time
to time holding U.S. Commitments.

            "U.S. Revolving Credit Loans": as defined in subsection 2.1(a).

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                                                                              16

            "Utilization": as of the last day of any fiscal quarter of the
Borrower, the percentage equivalent of a fraction (a) the numerator of which is
the average daily principal amount of Loans (or the Dollar Equivalent thereof)
outstanding (after giving effect to any borrowing or payment on such date)
during such quarter and (b) the denominator of which is the average daily amount
of the aggregate Commitments of all Lenders during such quarter, after giving
effect to any reduction of the Commitments on such day. For purposes of
subsection 2.9(f), if for any reason any Loans remain outstanding after
termination of the Commitments, the Utilization for each day on or after the
date of such termination shall be deemed to be greater than 66%.

            1.2. Other Definitional Provisions. (a) Unless otherwise specified
therein, all terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant
hereto.

            (b) As used herein, and any certificate or other document made or
delivered pursuant hereto, accounting terms relating to the Borrower and its
Subsidiaries not defined in subsection 1.1 and accounting terms partly defined
in subsection 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP.

            (c) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
subsection, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

            (d) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

            SECTION 2. AMOUNT AND TERMS OF THE FACILITIES

            2.1. Amount and Terms of the U.S. Commitments. (a) U.S. Commitments.
(i) Subject to the terms and conditions hereof, each U.S. Lender severally
agrees to make revolving credit loans in Dollars ( "U.S. Revolving Credit
Loans") to the Borrower from time to time during the Commitment Period so long
as after giving effect thereto (x) the Available U.S. Commitment of each U.S.
Lender is greater than or equal to zero and (y) the Aggregate Total Outstandings
of all Lenders do not exceed the Aggregate U.S. Commitments. During the
Commitment Period the Borrower may use the U.S. Commitments by borrowing,
prepaying the U.S. Revolving Credit Loans in whole or in part, and reborrowing,
all in accordance with the terms and conditions hereof.

                  (ii) The U.S. Revolving Credit Loans may from time to time be
      (A) Eurodollar Rate Loans, (B) ABR Loans or (C) a combination thereof, as
      determined by the Borrower and notified to the Administrative Agent in
      accordance with subsections 2.1(b) and 2.6; provided that no U.S.
      Revolving Credit Loan shall be made as a Eurodollar Rate Loan after the
      day that is one month prior to the Termination Date.

            (b) Procedure for U.S. Revolving Credit Borrowing. The Borrower may
borrow U.S. Revolving Credit Loans under the U.S. Commitments during the
Commitment Period on any Business Day; provided that the Borrower shall give the
Administrative Agent irrevocable notice (which notice must be received by the
Administrative Agent prior to 12:00

<PAGE>

                                                                              17

Noon, New York City time, (i) three Business Days prior to the requested
borrowing date, if all or any part of the requested U.S. Revolving Credit Loans
are to be Eurodollar Rate Loans, or (ii) one Business Day prior to the requested
borrowing date, otherwise), specifying (A) the amount to be borrowed, (B) the
requested borrowing date, (C) whether the Borrowing is to be of Eurodollar Rate
Loans, ABR Loans or a combination thereof and (D) if the Borrowing is to be
entirely or partly of Eurodollar Rate Loans, the respective amounts of each such
Type of Loan and the respective lengths of the initial Interest Periods
therefor. Each Borrowing under the U.S. Commitments shall be in an amount equal
to $10,000,000 or a multiple of $1,000,000 in excess thereof. Upon receipt of
any such notice from the Borrower, the Administrative Agent shall promptly
notify each Lender thereof. Each Lender will make an amount equal to its Funding
Commitment Percentage of the principal amount of each Borrowing available to the
Administrative Agent for the account of the Borrower at the office of the
Administrative Agent specified in subsection 9.2 prior to 11:00 a.m., New York
City time, on the borrowing date requested by the Borrower in funds immediately
available to the Administrative Agent. Such Borrowing will then immediately be
made available to the Borrower by the Administrative Agent crediting the account
of the Borrower on the books of such office with the aggregate of the amounts
made available to the Administrative Agent by the U.S. Lenders and in like funds
as received by the Administrative Agent.

            (c) Borrowings of U.S. Revolving Credit Loans and Refunding of
Loans. If on any Borrowing Date on which the Borrower has requested the
Multicurrency Lenders to make Multicurrency Loans (the "Requested Multicurrency
Loans"), (i) the principal amount of the Requested Multicurrency Loans to be
made by any Multicurrency Lender exceeds the Available Multicurrency Commitment
of such Multicurrency Lender on such Borrowing Date (before giving effect to the
making and payment of any Loans required to be made pursuant to this subsection
2.1(c) on such Borrowing Date) and (ii) the Dollar Equivalent of the amount of
such excess is less than or equal to the Aggregate Available U.S. Commitments of
all Non-Multicurrency Lenders (before giving effect to the making and payment of
any Loans pursuant to this subsection 2.1(c) on such Borrowing Date), each
Non-Multicurrency Lender shall make a U.S. Revolving Credit Loan to the Borrower
on such Borrowing Date, and the proceeds of such U.S. Revolving Credit Loans
shall be simultaneously applied to repay outstanding U.S. Revolving Credit Loans
of the Multicurrency Lenders in each case in amounts such that, after giving
effect to (1) such borrowings and repayments and (2) the borrowing from the
Multicurrency Lenders of the Requested Multicurrency Loans, the Committed
Outstandings Percentage of each U.S. Lender will equal (as nearly as possible)
the percentage which such U.S. Lender's U.S. Commitment then constitutes of the
Aggregate U.S. Commitments of all U.S. Lenders. To effect such borrowings and
repayments, (x) not later than 12:00 Noon, New York City time, on such Borrowing
Date, the proceeds of such U.S. Revolving Credit Loans shall be made available
by each Non-Multicurrency Lender to the Administrative Agent at its office
specified in subsection 9.2 in U.S. Dollars and in immediately available funds
and the Administrative Agent shall apply the proceeds of such U.S. Revolving
Credit Loans toward repayment of outstanding U.S. Revolving Credit Loans and/or
Multicurrency Loans of the Multicurrency Lenders and (y) concurrently with the
repayment of such Loans on such Borrowing Date, (I) the Multicurrency Lenders
shall, in accordance with the applicable provisions hereof, make the Requested
Multicurrency Loans in an aggregate amount equal to the amount so requested by
the Borrower (but not in any event greater than the Aggregate Available
Multicurrency Commitments after giving effect to the making of such repayment of
any Loans on such Borrowing Date) and (II) the Borrower shall pay to the
Administrative Agent for the

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                                                                              18

account of the Lenders whose Loans to the Borrower are repaid on the Borrowing
Date pursuant to this subsection 2.1(c) all interest accrued on the amounts
repaid to the date of repayment, together with any amounts payable pursuant to
subsection 2.17 in connection with such repayment.

            2.2. Amounts and Terms of the Multicurrency Commitments. (a)
Multicurrency Commitments. Subject to the terms and conditions hereof, each
Multicurrency Lender severally agrees to make revolving credit loans (each, a
"Multicurrency Loan") in any Available Foreign Currency to the Borrower from
time to time during the Commitment Period so long as after giving effect thereto
(A) the Available Multicurrency Commitment of such Multicurrency Lender is
greater than or equal to zero, (B) the Dollar Equivalent of the Aggregate
Multicurrency Outstandings for all Multicurrency Lenders does not exceed
$750,000,000 and (C) the Aggregate Total Outstandings of all Lenders do not
exceed the Aggregate U.S. Commitments. During the Commitment Period, the
Borrower may use the Multicurrency Commitments by borrowing, prepaying the
Multicurrency Loans in whole or in part, and reborrowing, all in accordance with
the terms and conditions hereof.

            (b) Procedure for Multicurrency Borrowing. The Borrower may request
the Multicurrency Lenders to make Multicurrency Loans during the Commitment
Period on any Business Day by delivering an irrevocable Notice of Multicurrency
Loan Borrowing. Each borrowing under the Multicurrency Commitments shall be in
an amount in an Available Foreign Currency of which the Dollar Equivalent is
equal to at least $10,000,000 (or, if the then Aggregate Available Multicurrency
Commitments are less than $10,000,000, such lesser amount). Upon receipt of any
such Notice of Multicurrency Borrowing from the Borrower, the Administrative
Agent shall promptly notify each Multicurrency Lender thereof. Not later than
the funding time for the relevant Available Foreign Currency set forth in the
Administrative Schedule, each Multicurrency Lender shall make an amount equal to
its Multicurrency Commitment Percentage of the principal amount of Multicurrency
Loans requested to be made on such Borrowing Date available to the
Administrative Agent at the funding office for the relevant Available Foreign
Currency set forth in the Administrative Schedule in the relevant Available
Foreign Currency and in immediately available funds. The amounts made available
by each Multicurrency Lender will then be made available on such Borrowing Date
to the Borrower at the funding office for the relevant Available Foreign
Currency set forth in the Administrative Schedule and in like funds as received
by the Administrative Agent.

            2.3. Competitive Borrowings. (a) The Competitive Bid Option. In
addition to the U.S. Revolving Credit Loans which may be made available pursuant
to subsection 2.1, the Borrower may, as set forth in this subsection 2.3,
request the U.S. Lenders to make offers to make Competitive Loans to the
Borrower during the Commitment Period. The U.S. Lenders may, but shall have no
obligation to, make such offers, and the Borrower may, but shall have no
obligation to, accept any such offers in the manner set forth in this subsection
2.3.

            (b) Competitive Bid Request. When the Borrower wishes to request
offers to make Competitive Loans under this subsection 2.3, it shall transmit to
the Administrative Agent a Competitive Bid Request to be received no later than
12:00 Noon (New York City time) on (x) the fourth Business Day prior to the date
of Borrowing proposed therein, in the case of a Borrowing of Eurodollar Rate
Competitive Loans or (y) the Business Day immediately

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                                                                              19

preceding the date of Borrowing proposed therein, in the case of a Fixed Rate
Borrowing, specifying:

            (i) the proposed date of Borrowing, which shall be a Business Day,

            (ii) the aggregate principal amount of such Borrowing, which shall
   be $5,000,000 or a multiple of $1,000,000 in excess thereof,

            (iii)the duration of the Interest Period applicable thereto, subject
   to the provisions of the definition of Interest Period contained in
   subsection 1.1, and

            (iv) whether the Borrowing then being requested is to be of
   Eurodollar Rate Competitive Loans or Fixed Rate Loans.

A Competitive Bid Request that does not conform substantially to the format of
Exhibit A may be rejected by the Administrative Agent in its sole discretion,
and the Administrative Agent shall promptly notify the Borrower of such
rejection. The Borrower may request offers to make Competitive Loans for more
than one Interest Period in a single Competitive Bid Request. No Competitive Bid
Request shall be given within three Business Days of any other Competitive Bid
Request pursuant to which the Borrower has made a Competitive Borrowing.

            (c) Invitation for Competitive Bids. Promptly after its receipt of a
Competitive Bid Request (but, in any event, no later than 3:00 p.m., New York
City time, on the date of such receipt) conforming to the requirements of
paragraph (b) above, the Administrative Agent shall send to each of the
Competitive Bid Lenders an Invitation for Competitive Bids which shall
constitute an invitation by the Borrower to each such Lender to bid, on the
terms and conditions of this Agreement, to make Competitive Loans pursuant to
the Competitive Bid Request.

            (d) Submission and Contents of Competitive Bids. (1) Each U.S.
Lender to which an Invitation for Competitive Bids is sent may submit a
Competitive Bid containing an offer or offers to make Competitive Loans in
response to such Invitation for Competitive Bids. Each Competitive Bid must
comply with the requirements of this paragraph (d) and must be submitted to the
Administrative Agent at its offices specified in subsection 9.2 not later than
(x) 9:30 a.m. (New York City time) on the third Business Day prior to the
proposed date of Borrowing, in the case of a Borrowing of Eurodollar Rate
Competitive Loans or (y) 9:30 a.m. (New York City time) on the date of the
proposed Borrowing, in the case of a Fixed Rate Borrowing; provided that any
Competitive Bids submitted by the Administrative Agent in the capacity of a U.S.
Lender may only be submitted if the Administrative Agent notifies the Borrower
of the terms of the offer or offers contained therein not later than fifteen
minutes prior to the deadline for the other U.S. Lenders. A Competitive Bid
submitted by a U.S. Lender pursuant to this paragraph (d) shall be irrevocable.

            (ii) Each Competitive Bid shall be in substantially the form of
   Exhibit C and shall specify:

                  (A) the date of the proposed Borrowing,

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                                                                              20

                  (B) the principal amount of the Competitive Loan for which
   each such offer is being made, which principal amount (w) may be greater
   than, equal to or less than the U.S. Commitment of the quoting U.S. Lender,
   (x) must be in a minimum principal amount of $5,000,000 or a multiple of
   $1,000,000 in excess thereof, (y) may not exceed the principal amount of
   Competitive Loans for which offers were requested and (z) may be subject to a
   limitation as to the maximum aggregate principal amount of Competitive Loans
   for which offers being made by such quoting U.S. Lender may be accepted,

                  (C) in the case of a Borrowing of Eurodollar Rate Competitive
   Loans, the Margin offered for each such Competitive Loan, expressed as a
   percentage (specified in increments of 1/10,000th of 1%) to be added to or
   subtracted from such base rate,

                  (D) in the case of a Fixed Rate Borrowing, the rate of
   interest per annum (specified in increments of 1/10,000th of 1%) offered for
   each such Competitive Loan, and

                  (E) the identity of the quoting U.S. Lender.

A Competitive Bid may set forth up to five separate offers by the quoting U.S.
Lender with respect to each Interest Period specified in the related Invitation
for Competitive Bids. Any Competitive Bid shall be disregarded by the
Administrative Agent if the Administrative Agent determines that it: (A) is not
substantially in the form of Exhibit C or does not specify all of the
information required by subsection 2.3(d)(ii); (B) contains qualifying,
conditional or similar language (except for a limitation on the maximum
principal amount which may be accepted); (C) proposes terms other than or in
addition to those set forth in the applicable Invitation for Competitive Bids or
(D) arrives after the time set forth in subsection 2.3(d)(i).

            (e) Notice to Borrower. The Administrative Agent shall promptly
(and, in any event, by 10:00 a.m., New York City time) notify the Borrower, by
telecopy, of all the Competitive Bids made (including all disregarded bids), the
Competitive Bid Rate and the principal amount of each Competitive Loan in
respect of which a Competitive Bid was made and the identity of the Lender that
made each bid. The Administrative Agent shall send a copy of all Competitive
Bids (including all disregarded bids) to the Borrower for its records as soon as
practicable after completion of the bidding process set forth in this subsection
2.3.

            (f) Acceptance and Notice by Borrower. The Borrower may in its sole
discretion, subject only to the provisions of this paragraph (f), accept or
reject any Competitive Bid (other than any disregarded bid) referred to in
paragraph (e) above. The Borrower shall notify the Administrative Agent by
telephone, confirmed immediately thereafter by telecopy in the form of a
Competitive Bid Accept/Reject Letter, whether and to what extent it wishes to
accept any or all of the bids referred to in paragraph (e) above not later than
(x) 10:30 a.m. (New York City time) on the third Business Day prior to the
proposed date of Borrowing, in the case of a Eurodollar Rate Competitive Loan or
(y) 10:30 a.m. (New York City time) on the proposed date of Borrowing, in the
case of a Fixed Rate Borrowing; provided that:

            (i) the failure by the Borrower to give such notice shall be deemed
   to be a rejection of all the bids referred to in paragraph (e) above;

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                                                                              21

            (ii) the aggregate principal amount of the Competitive Bids accepted
   by the Borrower may not exceed the lesser of (A) the principal amount set
   forth in the related Competitive Bid Request and (B) the excess, if any, of
   the Aggregate U.S. Commitments then in effect over the Aggregate Total
   Outstandings of all Lenders immediately prior to the making of such
   Competitive Loans (and after giving effect to the use of proceeds thereof),

            (iii)the principal amount of each Competitive Borrowing must be
   $5,000,000 or a multiple of $1,000,000 in excess thereof,

            (iv) unless there are any limitations contained in a quoting U.S.
   Lender's Competitive Bid, the Borrower may not accept a Competitive Bid made
   at a particular Competitive Bid Rate if it has decided to reject any portion
   of a bid made at a lower Competitive Bid Rate for the same Interest Period,
   and

            (v) the Borrower may not accept any Competitive Bid that is
   disregarded by the Administrative Agent pursuant to subsection 2.3(d)(ii) or
   that otherwise fails to comply with the requirements of this Agreement.

A notice given by the Borrower pursuant to this paragraph (f) shall be
irrevocable.

            (g) Allocation by Administrative Agent. If offers are made by two or
more U.S. Lenders with the same Competitive Bid Rates for a greater aggregate
principal amount than the amount in respect of which such offers are accepted
for the related Interest Period, the principal amount of Competitive Loans in
respect of which such offers are accepted shall be allocated by the
Administrative Agent among such U.S. Lenders as nearly as possible (in integral
multiples of $1,000,000, as the Administrative Agent may deem appropriate) in
proportion to the aggregate principal amounts of such offers.

            (h) Notification of Acceptance. The Administrative Agent shall
promptly (and, in any event, by 11:00 a.m., New York City time) notify each
bidding U.S. Lender whether or not its Competitive Bid has been accepted (and if
so, in what amount and at what Competitive Bid Rate), and each successful bidder
will thereupon become bound, subject to the other applicable conditions hereof,
to make the Competitive Loan in respect of which its bid has been accepted.

            2.4. Termination or Reduction of Commitments. (a) The Borrower shall
have the right, upon not less than three Business Days' notice to the
Administrative Agent, to terminate the U.S. Commitments, or, from time to time,
to reduce a portion of the U.S. Commitments; provided that any termination or
reduction of the U.S. Commitments below the amount of the U.S. Revolving Credit
Loans then outstanding shall be accompanied by a concurrent prepayment of the
U.S. Revolving Credit Loans which may be made on a non-pro rata basis among the
U.S. Lenders in the amount necessary to reduce such U.S. Revolving Credit Loans
to an amount that does not exceed the US. Commitments as so reduced. Any such
reduction shall be in an amount equal to $10,000,000 or a multiple of $1,000,000
in excess thereof, or the Dollar Equivalent thereof (or, if the U.S. Commitments
are less than $10,000,000 or the Dollar Equivalent thereof, such lesser amount),
and shall reduce permanently the U.S. Commitments then in effect. Termination
and reduction of the U.S. Commitments may be made on a non-pro rata basis among
the U.S. Lenders; provided that (x) after giving effect to such termination or
reduction, the percentage which any U.S. Lender's U.S. Commitment then

<PAGE>

                                                                              22

constitutes of the Aggregate U.S. Commitments of all U.S. Lenders shall not be
in excess of 15%, (y) no Default or an Event of Default should have occurred and
be continuing and (z) the Aggregate Total Outstandings outstanding shall not
exceed the amount of the reduced amount of the U.S. Commitments.

            (b) The Borrower shall have the right, upon not less than three
Business Days' notice to the Administrative Agent, to terminate the
Multicurrency Commitments, or, from time to time, to reduce a portion of the
Multicurrency Commitments; provided that any termination or reduction of the
Multicurrency Commitments below the amount of the Multicurrency Loans then
outstanding shall be accompanied by a concurrent prepayment of the Multicurrency
Loans which may be made on a non-pro rata basis among the Multicurrency Lenders
in the amount necessary to reduce such Multicurrency Loans to an amount that
does not exceed the Multicurrency Commitments as so reduced. Any such reduction
shall be in an amount equal to $10,000,000 or a multiple of $1,000,000 in excess
thereof, or the Dollar Equivalent thereof (or, if the Multicurrency Commitments
are less than $10,000,000 or the Dollar Equivalent thereof, such lesser amount),
and shall reduce permanently the Multicurrency Commitments then in effect.
Termination and reduction of the Multicurrency Commitments may be made on a
non-pro rata basis among the Multicurrency Lenders; provided that (x) after
giving effect to such termination or reduction, no Multicurrency Lender shall
have a Multicurrency Commitment Percentage in excess of 15%, (y) no Default or
an Event of Default shall have occurred and be continuing and (z) the
Multicurrency Loans outstanding shall not exceed the amount of the reduced
amount of the Multicurrency Commitments.

            2.5. Prepayments. (a) The Borrower may, at any time and from time to
time, prepay the U.S. Revolving Credit Loans, in whole or in part, without
premium or penalty (but subject to the provisions of subsection 2.17), upon: at
least two Business Days' irrevocable notice to the Administrative Agent
specifying the date and amount of prepayment and whether the prepayment is of
Eurodollar Rate Loans, ABR Loans or a combination thereof, and, if of a
combination thereof, the amount allocable to each. Upon receipt of any such
notice the Administrative Agent shall promptly notify each U.S. Lender thereof.
If any such notice is given, the amount specified in such notice shall be due
and payable on the date specified therein. Partial prepayments shall be in an
aggregate principal amount of $10,000,000 or a multiple of $1,000,000 in excess
thereof.

            (b) The Borrower may at any time and from time to time prepay,
without premium or penalty (but subject to the provisions of subsection 2.17),
the Multicurrency Loans, in whole or in part, upon at least three Business Days'
irrevocable notice to the Administrative Agent specifying the date and amount of
prepayment. Upon the receipt of any such notice, the Administrative Agent shall
promptly notify each Multicurrency Lender thereof. If any such notice is given,
the amount specified in such notice shall be due and payable on the date
specified therein. Partial prepayments of Multicurrency Loans shall be in an
aggregate principal amount of which the Dollar Equivalent is at least
$10,000,000 or a whole multiple of $1,000,000 in excess thereof (or such lesser
amount equal to the Dollar Equivalent of all Multicurrency Loans in any
Available Foreign Currency then outstanding).

            (c) If, at any time during the Commitment Period, (and, if the
Borrower elects to extend the repayment date pursuant to subsection 2.8(a),
during the Term Out Period) for any reason (i) the Aggregate Total Outstandings
of all Lenders exceed the Aggregate U.S.

<PAGE>

                                                                              23

Commitments then in effect (or, during the Term Out Period, exceed the Aggregate
Total Outstandings on the Termination Date) by more than 5% for five consecutive
Business Days, or (ii) the Aggregate R/C Outstandings of any Lender exceeds the
U.S. Commitment of such Lender then in effect (or, during the Term Out Period,
exceeds the Aggregate R/C Outstandings of such Lender on the Termination Date)
by more than 5% for five consecutive Business Days (either such event, an
"Excess Outstanding Event"), then the Borrower shall, upon the request of the
Administrative Agent and subject to the proviso at the end of this paragraph,
(i) immediately prepay the U.S. Revolving Credit Loans and/or (ii) immediately
prepay the Multicurrency Loans, in an aggregate principal amount at least
sufficient to reduce any such excess to 0%; provided that, if any Excess
Outstanding Event results solely from fluctuations in Spot Exchange Rates, the
prepayment required by this subsection 2.5(c) to reduce any such excess to 0%
shall only be required to be made on the last Business Day of the month in which
such Excess Outstanding Event occurs on the basis of the Spot Exchange Rate in
effect on such Business Day.

            (d) Each prepayment of Loans pursuant to this subsection 2.5 shall
be accompanied by accrued and unpaid interest on the amount prepaid to the date
of prepayment and any amounts payable under subsection 2.17 in connection with
such prepayment.

            2.6. Conversion and Continuation Options. (a) The Borrower may elect
from time to time to convert Eurodollar Revolving Credit Loans to ABR Loans by
giving the Administrative Agent at least one Business Day's prior irrevocable
notice of such election; provided that any such conversion of Eurodollar
Revolving Credit Loans may only be made on the last day of an Interest Period
with respect thereto. The Borrower may elect from time to time to convert ABR
Loans to Eurodollar Revolving Credit Loans by giving the Administrative Agent at
least three Business Days' prior irrevocable notice of such election. Any such
notice of conversion to Eurodollar Revolving Credit Loans shall specify the
length of the initial Interest Period or Interest Periods therefor. Upon receipt
of any such notice the Administrative Agent shall promptly notify each Lender
thereof. All or any part of outstanding Eurodollar Revolving Credit Loans and
ABR Loans may be converted as provided herein; provided that (i) no Loan may be
converted into a Eurodollar Revolving Credit Loan when any Event of Default has
occurred and is continuing and (ii) no Loan may be converted into a Eurodollar
Revolving Credit Loan after the date that is one month prior to the Termination
Date.

            (b) Any Eurodollar Revolving Credit Loans may be continued as such
upon the expiration of the then current Interest Period with respect thereto by
the Borrower giving notice to the Administrative Agent, in accordance with the
applicable provisions of the term "Interest Period" set forth in subsection 1.1,
of the length of the next Interest Period to be applicable to such Eurodollar
Revolving Credit Loans; provided that no Eurodollar Revolving Credit Loan may be
continued as such (i) when any Event of Default has occurred and is continuing
or (ii) after the date that is one month prior to the Termination Date and
provided, further, that if the Borrower shall fail to give any required notice
as described above in this paragraph, or if such continuation is not permitted
pursuant to the preceding proviso, such Eurodollar Revolving Credit Loans shall
be automatically converted to ABR Loans on the last day of such then expiring
Interest Period.

            (c) Any Multicurrency Loans may be continued as such upon the
expiration of the then current Interest Period with respect thereto by the
Borrower giving notice to the Administrative Agent, in accordance with the
applicable provisions of the term "Interest Period"

<PAGE>

                                                                              24

set forth in subsection 1.1, of the length of the next Interest Period to be
applicable to such Multicurrency Loans, provided, that if the Borrower shall
fail to (i) give any required notice as described above in this paragraph or to
(ii) provide at least 3 Business Days' notice that such Loans will be repaid at
the end of such Interest Period, such Multicurrency Loans shall automatically be
continued for an Interest Period of one month.

            2.7. Minimum Amounts of Tranches. All borrowings, conversions and
continuations of U.S. Revolving Credit Loans and Multicurrency Loans (other than
Competitive Bid Loans) hereunder and all selections of Interest Periods
hereunder shall be in such amounts and be made pursuant to such elections so
that, after giving effect thereto, (i) the aggregate principal amount of the
Eurodollar Rate Loans comprising each Tranche shall be equal to $10,000,000 or a
whole multiple of $1,000,000 in excess thereof, (ii) the aggregate principal
amount of the Multicurrency Loans comprising each Tranche shall be in an amount
of which the Dollar Equivalent is at least $10,000,000 (determined at the time
of borrowing or continuation), provided that Multicurrency Loans in any Tranche
which were in such minimum amount at the times of borrowing may be continued as
such at less than such minimum amount if such reduction is solely a result of
currency fluctuations, and (iii) there shall not be more than 20 Tranches at any
one time outstanding.

            2.8. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby
unconditionally promises to pay to each Lender (i) on the Termination Date (or
such earlier date as the Loans become due and payable pursuant to Section 7 or
subsection 2.5), the unpaid principal amount of each Loan made by such Lender;
provided, that, at the Borrower's option any Loans outstanding on the
Termination Date shall be due and payable in full on the date which is one year
following the Termination Date (or such earlier date as the Loans become due and
payable pursuant to Section 7 or subsection 2.5) (such period following the
Termination Date, the "Term Out Period") and (ii) on the last day of the
applicable Interest Period, the unpaid principal amount of each Competitive Loan
made by such Lender. The Borrower hereby further agrees to pay interest in
immediately available funds at the office of the Administrative Agent on the
unpaid principal amount of such Loans from time to time from the date hereof
until payment in full thereof at the rates per annum, and on the dates, set
forth in subsection 2.9. Except as otherwise specified in this Agreement,
amounts owing hereunder on account of principal and interest on Loans shall be
paid in the currency in which such Loan was borrowed and amounts owing hereunder
on account of fees shall be paid in Dollars.

            (b) Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the indebtedness of the Borrower to the
appropriate lending office of such Lender resulting from each Loan made by such
lending office of such Lender from time to time, including the amounts of
principal and interest payable and paid to such lending office of such Lender
from time to time under this Agreement.

            (c) The Administrative Agent shall maintain the Register pursuant to
subsection 9.6(d), and a subaccount for each Lender, in which Register and
subaccounts (taken together) shall be recorded (i) the amount of each Loan made
hereunder, the Type of each Loan made and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder from the
Borrower and each Lender's share thereof.

<PAGE>

                                                                              25

            (d) The entries made in the Register and accounts maintained
pursuant to paragraphs (b) and (c) of this subsection 2.8 shall, to the extent
permitted by applicable law, be prima facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain such
account, such Register or such subaccount, as applicable, or any error therein,
shall not in any manner affect the obligation of the Borrower to repay (with
applicable interest) the Loans made to the Borrower by such Lender in accordance
with the terms of this Agreement.

            2.9. Interest Rates and Payment Dates. (a) Each ABR Loan shall bear
interest at a rate per annum equal to the ABR.

            (b) The Loans comprising each Eurodollar Rate Borrowing shall bear
interest at a rate per annum equal to (i) in the case of each Eurodollar
Revolving Credit Loan, the Eurodollar Rate for the Interest Period in effect for
such Borrowing plus the Applicable Margin and (ii) in the case of each
Eurodollar Rate Competitive Loan, the Eurodollar Rate for the Interest Period in
effect for such Borrowing plus (or minus, as the case may be) the Margin offered
by the Lender making such Loan and accepted by the Borrower pursuant to
subsection 2.3.

            (c) Each Multicurrency Loan shall bear interest for each day during
each Interest Period with respect thereto at a rate per annum equal to the
Eurocurrency Rate determined for such Interest Period plus the Applicable Margin
in effect for such day.

            (d) Each Fixed Rate Loan shall bear interest at a rate per annum
equal to the fixed rate of interest offered by the Lender making such Loan and
accepted by the Borrower pursuant to subsection 2.3.

            (e) Subject to the provisions of the following sentence, interest
shall be payable in arrears on each Interest Payment Date; provided that
interest accruing pursuant to paragraph (g) of this subsection 2.9 shall be
payable from time to time on demand. The amount of interest on U.S. Revolving
Credit Loans and the Multicurrency Loans to be paid on any Interest Payment Date
shall be the amount which would be due and payable if the Utilization for the
period for which such interest is paid was less than 33%. On the first Business
Day following the last day of each fiscal quarter of the Borrower and on the
Termination Date (or, if earlier, on the date upon which both the Commitments
are terminated and the Loans are paid in full), the Borrower shall pay to the
Administrative Agent, for the ratable benefit of the Lenders, an additional
amount of interest equal to the difference (if any) between (i) the amount of
interest which would have been payable during such fiscal quarter (or, in the
case of the payment due on the Termination Date, the portion thereof ending on
such date) after giving effect to the actual Utilization during such period and
(ii) the amount of interest which actually was paid during such period.

            (f) The "Applicable Margin" with respect to each Type of Eurodollar
Revolving Credit Loan and each Multicurrency Loan at any date shall be the
applicable percentage amount set forth in the table below based upon the
Utilization and Status on such date:

<PAGE>

                                                                              26

<TABLE>
<CAPTION>
                                  Level I          Level II        Level III        Level IV           Level V
                                  Status            Status          Status           Status            Status
                                  ------            ------          ------           ------            ------
<S>                               <C>              <C>             <C>              <C>                <C>
Prior to Term Out Period, if
  Utilization is less than
  33%:

   Eurodollar Rate Loans            0.285%           0.390%           0.725%          1.075%            1.250%

   Multicurrency Loans              0.285%           0.390%           0.725%          1.075%            1.250%

ABR Loans                               0%               0%               0%              0%                0%

Prior to Term Out Period, if
   Utilization is equal to or
   greater than 33% but less
   than 66%:

   Eurodollar Rate Loans            0.410%           0.515%           0.850%          1.075%            1.250%

   Multicurrency Loans              0.410%           0.515%           0.850%          1.075%            1.250%

ABR Loans                               0%               0%               0%              0%                0%

Prior to Term Out Period, if
   Utilization is equal to or
   greater than 66%:

   Eurodollar Rate Loans            0.535%           0.640%           0.975%          1.075%            1.250%

   Multicurrency Loans              0.535%           0.640%           0.975%          1.075%            1.250%

ABR Loans                               0%               0%               0%              0%                0%

Applicable Margin During Term
   Out Period:

   Eurodollar Rate Loans            0.785%           0.890%           1.225%          1.325%            1.500%

   Multicurrency Loans              0.785%           0.890%           1.225%          1.325%            1.500%

ABR Loans                               0%               0%               0%              0%                0%
</TABLE>

            (g) If all or a portion of (i) the principal amount of any Loan,
(ii) any interest payable thereon or (iii) any facility fee or other amount
payable hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum which is (x) in the case of overdue principal, the rate that would
otherwise be applicable thereto pursuant to the foregoing provisions of this
subsection 2.9 plus 2% or (y) in the case of overdue interest, facility fee or
other amount, the rate described in paragraph (a) of this subsection 2.9 plus
2%, in each case from the date of such non-payment until such amount is paid in
full (as well after as before judgment). For purposes of this Agreement,
principal shall be "overdue" only if not paid in accordance with the provisions
of subsection 2.8.

            2.10. Facility Fee. The Borrower shall pay to the Administrative
Agent, for the ratable account of the Lenders, a facility fee in Dollars at the
rate per annum equal to (a) for each day that the Borrower has Level I Status,
0.090% of the aggregate Commitments prior to the Termination Date and 0.090% of
the aggregate outstanding principal amount of the Loans thereafter on such day,
(b) for each day that the Borrower has Level II Status, 0.110% of the aggregate
Commitments prior to the Termination Date and 0.110% of the aggregate
outstanding

<PAGE>

                                                                              27

principal amount of the Loans thereafter, (c) for each day that the Borrower has
Level III Status, 0.150% of the aggregate Commitments prior to the Termination
Date and 0.150% of the aggregate outstanding principal amount of the Loans
thereafter, (d) for each day that the Borrower has Level IV Status, 0.175% of
the aggregate Commitments prior to the Termination Date and 0.175% of the
aggregate outstanding principal amount of the Loans thereafter and (e) for each
day that the Borrower has Level V Status, 0.250% of the aggregate Commitments
prior to the Termination Date and 0.250% of the aggregate outstanding principal
amount of the Loans thereafter. On the first Business Day following the last day
of each fiscal quarter of the Borrower and on the Termination Date (or, if
earlier, on the date upon which both the Commitments are terminated and the
Loans are paid in full), the Borrower shall pay to the Administrative Agent, for
the ratable benefit of the Lenders, the portion of such facility fee which
accrued during the fiscal quarter most recently ended (or, in the case of the
payment due on the Termination Date, the portion thereof ending on such date).
Such facility fee shall be based upon the aggregate Commitments of the Lenders
from time to time, regardless of the Utilization from time to time thereunder.

            2.11. Computation of Interest and Fees. (a) Interest on all Loans
shall be computed on the basis of the actual number of days elapsed over a year
of 360 days or, on any date when the ABR is determined by reference to the Prime
Rate, a year of 365 or 366 days as appropriate (in each case including the first
day but excluding the last day). Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error. All fees shall be computed on the basis of a year composed of
twelve 30-day months. At any time and from time to time upon request of the
Borrower, the Administrative Agent shall deliver to the Borrower a statement
showing the quotations used by the Administrative Agent in determining any
interest rate applicable to U.S. Revolving Credit Loans and/or the Multicurrency
Loans pursuant to this Agreement. Each change in the Applicable Margin
applicable to Loans or the Facility Fee as a result of a change in the
Borrower's Status shall become effective on the date upon which such change in
Status occurs.

            (b) If any Reference Lender shall for any reason no longer have a
Commitment, such Reference Lender shall thereupon cease to be a Reference
Lender, and if, as a result thereof, there shall only be one Reference Lender
remaining, the Borrower and the Administrative Agent (after consultation with
the Lenders) shall, by notice to the Lenders, designate another Lender as a
Reference Lender so that there shall at all times be at least two Reference
Lenders.

            (c) Each Reference Lender shall use its best efforts to furnish
quotations of rates to the Administrative Agent as contemplated hereby. If any
of the Reference Lenders shall be unable or shall otherwise fail to supply such
rates to the Administrative Agent upon its request, the rate of interest shall,
subject to the provisions of subsection 2.12, be determined on the basis of the
quotations of the remaining Reference Lenders.

            2.12. Inability to Determine Interest Rate. If prior to the first
day of any Interest Period:

            (a) the Administrative Agent shall have reasonably determined (which
reasonable determination shall be conclusive and binding upon the Borrower)
that, by reason of

<PAGE>

                                                                              28

circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Eurodollar Rate or the Eurocurrency Rate, as the
case may be, for such Interest Period, or

            (b) the Administrative Agent has received notice from (i) the
Majority U.S. Lenders that the Eurodollar Rate determined (or to be determined)
for such Interest Period will not adequately and fairly reflect the cost to such
U.S. Lenders of making or maintaining their Eurodollar Rate Loans or (ii) the
Majority Multicurrency Lenders that the Eurocurrency Rate determined (or to be
determined) for such Interest Period will not adequately and fairly reflect the
cost to such Multicurrency Lenders of making or maintaining their Multicurrency
Loans,

            then the Administrative Agent shall give telecopy or telephonic
notice thereof to the Borrower and the relevant Lenders as soon as practicable
thereafter. Until such time as the Eurodollar Rate or the Eurocurrency Rate, as
the case may be, can be determined by the Administrative Agent in the manner
specified in the definitions of such terms in subsection 1.1, no further
Eurodollar Rate Loans or, as the case may be, Multicurrency Loans (with respect
to the Available Foreign Currency for which the Eurocurrency Rate cannot be
determined only) shall be continued as such at the end of the then current
Interest Periods or (other than any Eurodollar Rate Loans or Multicurrency Loans
previously requested and with respect to which the Eurodollar Rate or
Eurocurrency Rate, as the case may be, was determined) shall be made, nor shall
the Borrower have the right to convert ABR Loans into Eurodollar Rate Loans.

            2.13. Pro Rata Treatment and Payments. (a) (i) Except as provided in
subsection 2.1(c), each borrowing of U.S. Revolving Credit Loans by the Borrower
from the U.S. Lenders hereunder shall be made pro rata according to the Funding
Commitment Percentages of the U.S. Lenders in effect on the date of such
borrowing. Each payment by the Borrower on account of any facility fee hereunder
shall be allocated by the Administrative Agent among the U.S. Lenders in
accordance with the respective amounts which such U.S. Lenders are entitled to
receive pursuant to subsection 2.10. Except as provided in subsection 2.4, any
reduction of the U.S. Commitments of the U.S. Lenders shall be allocated by the
Administrative Agent among the U.S. Lenders pro rata according to the U.S.
Commitment Percentages of the U.S. Lenders. Except as provided in subsection
2.1(c), 2.4 or 2.18, each payment (including each prepayment) by the Borrower on
account of principal of and interest on the U.S. Revolving Credit Loans shall be
allocated by the Administrative Agent pro rata according to the respective
principal amounts thereof then due and owing to each U.S. Lender. Each payment
by the Borrower on account of principal of and interest on any Borrowing of
Competitive Loans shall be made pro rata among the Lenders participating in such
Borrowing according to the respective principal amounts of their outstanding
Competitive Loans comprising such Borrowing. All payments (including
prepayments) to be made by the Borrower hereunder (other than with respect to
Multicurrency Loans), whether on account of principal, interest, fees or
otherwise, shall be made without set-off or counterclaim and shall be made prior
to 2:00 p.m., New York City time on the due date thereof to the Administrative
Agent, for the account of the relevant Lenders, at the Administrative Agent's
office specified in subsection 9.2, in Dollars and in immediately available
funds. Notwithstanding the foregoing, the failure by the Borrower to make a
payment (or prepayment) prior to 12:00 Noon, New York City time or 2:00 p.m.
London time, as the case may be, on the due date thereof shall not constitute a
Default or Event of Default if such payment is made on such due date; provided,
however, that any payment (or prepayment) made after such time on such due date
shall be deemed made on the next Business

<PAGE>

                                                                              29

Day for the purposes of interest and reimbursement calculations. The
Administrative Agent shall distribute such payments to the relevant Lenders
promptly upon receipt in like funds as received.

                  (ii) Each borrowing of Multicurrency Loans by the Borrower
      shall be made, and any reduction of the Multicurrency Commitments (except
      as provided in subsection 2.4) shall be allocated by the Administrative
      Agent, pro rata according to the Multicurrency Commitment Percentages of
      the Multicurrency Lenders. Except as otherwise provided in subsection 2.4
      and 2.5(c), each payment (including each prepayment) by the Borrower on
      account of principal of and interest on Multicurrency Loans shall be
      allocated by the Administrative Agent pro rata according to the respective
      principal amounts of the Multicurrency Loans then due and owing by the
      Borrower to each Multicurrency Lender. Except as otherwise provided in
      this Agreement, all payments (including prepayments) to be made by the
      Borrower hereunder in respect of Multicurrency Loans, whether on account
      of principal, interest, fees or otherwise, shall be made without set-off
      or counterclaim and shall be made at or before the payment time for the
      currency of such Multicurrency Loan set forth in the Administrative
      Schedule, on the due date thereof to the Administrative Agent, for the
      account of the Multicurrency Lenders, at the payment office for the
      currency of such Multicurrency Loan set forth in the Administrative
      Schedule, in the currency of such Multicurrency Loan and in immediately
      available funds. The Administrative Agent shall distribute such payments
      to the Multicurrency Lenders entitled to receive the same promptly upon
      receipt in like funds as received.

                  (iii) If any payment hereunder (other than payments on the
      Eurodollar Rate Loans and the Multicurrency Loans) becomes due and payable
      on a day other than a Business Day, the maturity of such payment shall be
      extended to the next succeeding Business Day, and, with respect to
      payments of principal, interest thereon shall be payable at the then
      applicable rate during such extension. If any payment on a Eurodollar Rate
      Loan or a Multicurrency Loan becomes due and payable on a day other than a
      Business Day, the maturity of such payment shall be extended to the next
      succeeding Business Day (and, with respect to payments of principal,
      interest thereon shall be payable at the then applicable rate during such
      extension) unless the result of such extension would be to extend such
      payment into another calendar month, in which event such payment shall be
      made on the immediately preceding Business Day.

            (b) Unless the Administrative Agent shall have been notified in
writing by any Lender prior to the deadline for funding a Borrowing that such
Lender will not make the amount that would constitute its share of such
Borrowing available to the Administrative Agent, the Administrative Agent may
assume that such Lender is making such amount available to the Administrative
Agent, and the Administrative Agent may, in reliance upon such assumption, make
available to the Borrower a corresponding amount. If such amount is not made
available to the Administrative Agent by the required time on the borrowing date
therefor, such Lender shall pay to the Administrative Agent, on demand, such
amount with interest thereon at a rate equal to (i) in the case of a borrowing
of U.S. Revolving Credit Loans, the daily average Federal Funds Effective Rate
and (ii) in the case of a borrowing of Multicurrency Loans, the interest rate
reasonably determined by the Administrative Agent to reflect its cost of funds
for the amount advanced by the Administrative Agent on behalf of such Lender,
(in each such case) for the period until such Lender makes such amount
immediately available to the Administrative Agent. A certificate of the
Administrative Agent submitted to any Lender with respect to any amounts

<PAGE>

                                                                              30

owing under this subsection 2.13 shall be conclusive in the absence of manifest
error. If such Lender's share of such Borrowing is not made available to the
Administrative Agent by such Lender within three Business Days of such borrowing
date, the Administrative Agent shall be entitled to recover such amount with
interest thereon at (x) the Federal Funds Effective Rate (in the case of a
borrowing of U.S. Revolving Credit Loans) and (y) the Administrative Agent's
reasonable estimate of its average daily cost of funds plus the Applicable
Margin applicable to Multicurrency Loans (in case of a borrowing of
Multicurrency Loans), on demand, from the Borrower.

            2.14. Illegality. Notwithstanding any other provision herein, if the
adoption of or any change in any Requirement of Law or in the interpretation or
application thereof shall make it unlawful for any Lender to make or maintain
Eurodollar Rate Loans or Multicurrency Loans as contemplated by this Agreement,
such Lender shall give notice thereof to the Administrative Agent and the
Borrower describing the relevant provisions of such Requirement of Law (and, if
the Borrower shall so request, provide the Borrower with a memorandum or opinion
of counsel of recognized standing (as selected by such Lender) as to such
illegality), following which (a) the commitment of such Lender hereunder to make
Eurodollar Rate Loans or Multicurrency Loans, continue Eurodollar Rate Loans or
Multicurrency Loans as such and convert ABR Loans to Eurodollar Rate Loans shall
forthwith be canceled, (b) such Lender's Loans then outstanding as Eurodollar
Rate Loans (including, without limitation, such Lender's Eurodollar Rate
Competitive Loans in the case of clause (ii), if any, shall be converted
automatically to ABR Loans (i) on the respective last days of the then current
Interest Periods with respect to such Loans or (ii) within such earlier period
as required by law and (c) such Lender's Multicurrency Loans shall be prepaid on
the last day of the then current Interest Period with respect thereto or such
earlier period as required by law. If any such conversion or repayment of a
Eurodollar Rate Loan or Multicurrency Loan occurs on a day which is not the last
day of the then current Interest Period with respect thereto, the Borrower shall
pay to such Lender such amounts, if any, as may be required pursuant to
subsection 2.17.

            2.15. Increased Costs. (a) If (i) there shall be any increase in the
cost to any Lender of agreeing to make or making, funding or maintaining any
Loans or (ii) any reduction in any amount receivable in respect thereof, and
such increased cost or reduced amount receivable is due to either:

            (x) the introduction of or any change in or in the interpretation of
      any law or regulation after the date hereof; or

            (y) the compliance with any guideline or request made after the date
      hereof from any central bank or other Governmental Authority (whether or
      not having the force of law),

then (subject to the provisions of subsection 2.18) the Borrower shall from time
to time, upon demand by such Lender pay such Lender additional amounts
sufficient to compensate such Lender for such increased cost or reduced amount
receivable.

            (b) If any Lender shall have reasonably determined that (i) the
applicability of any law, rule, regulation or guideline adopted after the date
hereof pursuant to or arising out of the July 1988 paper of the Basle Committee
on Banking Regulations and Supervisory Practices entitled "International
Convergence of Capital Measurement and Capital Standards," or (ii) the

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                                                                              31

adoption after the date hereof of any other law, rule, regulation or guideline
regarding capital adequacy affecting such Lender, or (iii) any change arising
after the date hereof in the foregoing or in the interpretation or
administration of any of the foregoing by any Governmental Authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or (iv) compliance by such Lender (or any lending office of such
Lender), or any holding company for such Lender which is subject to any of the
capital requirements described above, with any request or directive of general
application issued after the date hereof regarding capital adequacy (whether or
not having the force of law) of any such authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on such
Lender's capital or on the capital of any such holding company as a direct
consequence of such Lender's obligations hereunder to a level below that which
such Lender or any such holding company could have achieved but for such
adoption, change or compliance (taking into consideration such Lender's policies
and the policies of such holding company with respect to capital adequacy) by an
amount deemed by such Lender to be material, then (subject to the provisions of
subsection 2.17) from time to time such Lender may request the Borrower to pay
to such Lender such additional amounts as will compensate such Lender or any
such holding company for any such reduction suffered, net of the savings (if
any) which may be reasonably projected to be associated with such increased
capital requirement. Any certificate as to such amounts which is delivered
pursuant to subsection 2.18(a) shall, in addition to any items required by
subsection 2.18(a), include the calculation of the savings (if any) which may be
reasonably projected to be associated with such increased capital requirement;
provided that in no event shall any Lender be obligated to pay or refund any
amounts to the Borrower on account of such savings.

            (c) In the event that any Governmental Authority shall impose any
Eurocurrency Liabilities which increase the cost to any Lender of making or
maintaining Eurodollar Rate Loans or Multicurrency Loans, then (subject to the
provisions of subsection 2.18) the Borrower shall thereafter pay in respect of
the Eurodollar Rate Loans or Multicurrency Loans, as the case may be, of such
Lender a rate of interest based upon (i) for Eurodollar Rate Loans, the
Eurodollar Reserve Rate (rather than the Eurodollar Rate) and (ii) for
Multicurrency Loans, the Eurocurrency Reserve Rate (rather than the Eurocurrency
Rate). From and after the delivery to the Borrower of the certificate required
by subsection 2.18(a), all references contained in this Agreement to the (i)
Eurodollar Rate shall be deemed to be references to the Eurodollar Reserve Rate
with respect to each such affected Lender and (ii) the Eurocurrency Rate shall
be deemed to be references to the Eurocurrency Reserve Rate with respect to each
such affected Lender.

            2.16. Taxes. (a) All payments made by the Borrower under this
Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes and franchise taxes or any other tax based
upon net income imposed on the Administrative Agent or any Lender as a result of
a present or former connection between the Administrative Agent or such Lender
and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Administrative Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement). If any such non-excluded taxes, levies,
imposts, duties, charges, fees deductions or withholdings ("Non-Excluded Taxes")
are required to be withheld

<PAGE>

                                                                              32

from any amounts payable to the Administrative Agent or any Lender hereunder,
the amounts so payable to the Administrative Agent or such Lender shall be
increased to the extent necessary to yield to the Administrative Agent or such
Lender (after payment of all Non-Excluded Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in or
pursuant to this Agreement; provided, however, that the Borrower shall not be
required to increase any such amounts payable to any Lender that is not
organized under the laws of the United States of America or a state thereof if
such Lender fails to comply with the requirements of paragraph (b) of this
subsection 2.16. Whenever any Non-Excluded Taxes are payable by the Borrower, as
promptly as possible thereafter the Borrower shall send to the Administrative
Agent for its own account or for the account of such Lender, as the case may be,
a certified copy of an original official receipt received by the Borrower
showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes
when due to the appropriate taxing authority or fails to remit to the
Administrative Agent the required receipts or other required documentary
evidence, the Borrower shall indemnify the Administrative Agent and the Lenders
for any incremental taxes, interest or penalties that may become payable by the
Administrative Agent or any Lender as a result of any such failure. The
agreements in this subsection 2.16 shall survive the termination of this
Agreement and the payment of all other amounts payable hereunder.

            (b) Each Lender that is not organized under the laws of the United
States of America or a state thereof shall:

                  (i) deliver to each of the Borrower and the Administrative
      Agent a duly completed copy of United States Internal Revenue Service Form
      W-8BEN, W-8EXP or W-8ECI, or successor applicable form, as the case may
      be, with respect to payments under this Agreement;

                  (ii) deliver to each of the Borrower and the Administrative
      Agent a further copy of any such form or certification on or before the
      date that any such form or certification expires or becomes obsolete and
      after the occurrence of any event requiring a change in the most recent
      form previously delivered by it to the Borrower; and

                  (iii)obtain such extensions of time for filing and completing
      such forms or certifications as may reasonably be requested by the
      Borrower or the Administrative Agent;

unless in any such case an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Borrower and the
Administrative Agent. Such Lender shall certify (i) in the case of a Form
W-8BEN, W-8EXP or W-8ECI, that it is entitled to receive payments under this
Agreement without deduction or withholding of any United States federal income
taxes and (ii) in the case of a Form W-8BEN or W-8EXP, that it is entitled to an
exemption from United States backup withholding tax. Each Person not
incorporated under the laws of the United States of America or a state thereof
that is an Assignee shall, upon the effectiveness of the related transfer, be
required to provide all of the forms and statements required pursuant to this
subsection 2.16.

            2.17. Indemnity. Subject to the provisions of subsection 2.18(a),
the Borrower agrees to indemnify each Lender and to hold each Lender harmless
from any loss or reasonable expense which such Lender may sustain or incur as a
consequence of (a) default by the Borrower

<PAGE>

                                                                              33

in making a borrowing of, conversion into or continuation of any Loan hereunder
after the Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, (b) default by the Borrower in making any
prepayment after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement, (c) the making of a prepayment of Eurodollar Rate
Loans or Multicurrency Loans on a day which is not the last day of an Interest
Period with respect thereto or (d) the making of a prepayment of Fixed Rate
Loans at any time. Such indemnification shall be in an amount equal to the
excess, if any, of (i) the amount of interest which would have accrued on the
amount so prepaid, or not so borrowed, converted or continued, for the period
from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case of a failure
to borrow, convert or continue, the Interest Period that would have commenced on
the date of such failure) in each case at the applicable rate of interest for
such Loans provided for herein (excluding the Applicable Margin or Margin
included therein) over (ii) the amount of interest (as determined by such
Lender) which would have accrued to such Lender on such amount by placing such
amount on deposit for a comparable period with leading banks in the interbank
eurodollar market. This covenant shall survive the termination of this Agreement
and the payment of all other amounts payable hereunder.

            2.18. Notice of Amounts Payable; Relocation of Lending Office;
Mandatory Assignment. (a) In the event that any Lender becomes aware that any
amounts are or will be owed to it pursuant to subsection 2.14, 2.15, 2.16(a) or
2.17, then it shall promptly notify the Borrower thereof and, as soon as
possible thereafter, such Lender shall submit to the Borrower a certificate
indicating the amount owing to it and the calculation thereof. The amounts set
forth in such certificate shall be prima facie evidence of the obligations of
the Borrower hereunder; provided, however, that the failure of the Borrower to
pay any amount owing to any Lender pursuant to subsection 2.14, 2.15, 2.16(a) or
2.17 shall not be deemed to constitute a Default or an Event of Default
hereunder to the extent that the Borrower is contesting in good faith its
obligation to pay such amount by ongoing discussions diligently pursued with
such Lender or by appropriate proceedings.

            (b) If a Lender claims any additional amounts payable pursuant to
subsection 2.14, 2.15 or 2.16(a), it shall use its reasonable efforts
(consistent with legal and regulatory restrictions) to avoid the need for paying
such additional amounts, including changing the jurisdiction of its applicable
lending office, provided that the taking of any such action would not, in the
reasonable judgment of the Lender, be disadvantageous to such Lender.

            (c) In the event that any Lender delivers to the Borrower a
certificate in accordance with subsection 2.18(a) (other than a certificate as
to amounts payable pursuant to subsection 2.17), or the Borrower is required to
pay any additional amounts or other payments in accordance with subsection 2.14,
2.15 or 2.16(a), the Borrower may, at its own expense and in its sole
discretion, (i) require such Lender to transfer or assign, in whole or in part,
without recourse (in accordance with subsection 9.6), all or part of its
interests, rights and obligations under this Agreement (other than any
outstanding Competitive Loans) to another Person (provided that the Borrower,
with the full cooperation of such Lender, can identify a Person who is ready,
willing and able to be an Assignee with respect to thereto) which shall assume
such assigned obligations (which Assignee may be another Lender, if such
assignee Lender accepts such assignment) or (ii) during such time as no Default
or Event of Default has occurred and is continuing, terminate the Commitment of
such Lender and prepay all outstanding Loans (other than Competitive

<PAGE>

                                                                              34

Loans) of such Lender; provided that (x) the Borrower or the Assignee, as the
case may be, shall have paid to such Lender in immediately available funds the
principal of and interest accrued to the date of such payment on the Loans
(other than Competitive Loans) made by it hereunder and (subject to subsection
2.17) all other amounts owed to it hereunder and (y) such assignment or
termination of the Commitment of such Lender and prepayment of Loans does not
conflict with any law, rule or regulation or order of any court or Governmental
Authority.

            2.19. Commitment Increases. (a) Notwithstanding anything to the
contrary contained in this Agreement, the Borrower may request from time to time
that the Commitments be increased by an amount not less than $50,000,000 or a
whole multiple of $10,000,000 in excess thereof, provided that the Borrower may
only request such an increase once in any six-month period and in no event shall
the Commitments exceed $2,000,000,000. Such increase in the Commitments shall be
effected as follows: the Borrower may (i) request one or more of the Lenders to
increase the amount of its U.S. Commitment and/or its Multicurrency Commitment
(which request shall be in writing and sent to the Administrative Agent to
forward to such Lender or Lenders) and/or (ii) arrange for one or more financial
institutions not a party hereto (a "Third-Party Lender") to become parties to
and Lenders under this Agreement, provided that (x) the Administrative Agent
shall have approved such Third-Party Lender, which approval shall not be
unreasonably withheld, and (y) after giving effect to such increase, no Lender
shall have a U.S. Commitment Percentage or a Multicurrency Commitment Percentage
which exceeds 15%. In no event may any Lender's U.S. Commitment or Multicurrency
Commitment be increased without the prior written consent of such Lender, and
the failure of any Lender to respond to the Borrower's request for an increase
shall be deemed a rejection by such Lender of the Borrower's request. The
Commitments may not be increased if, at the time of any proposed increase
hereunder, a Default or Event of Default has occurred and is continuing. Upon
any request by the Borrower to increase the Commitments hereunder, the Borrower
shall be deemed to have represented and warranted on and as of the date of such
request that no Default or Event of Default has occurred and is continuing.
Notwithstanding anything contained in this Agreement to the contrary, no Lender
shall have any obligation whatsoever to increase the amount of its U.S.
Commitment and/or its Multicurrency Commitment, and each Lender may at its
option, unconditionally and without cause, decline to increase its U.S.
Commitment and/or its Multicurrency Commitment.

            (b) If any Lender is willing, in its sole and absolute discretion,
to increase the amount of its U.S. Commitment and/or its Multicurrency
Commitment hereunder (such a Lender hereinafter referred to as an "Increasing
Lender"), it shall enter into a written agreement to that effect with the
Borrower and the Administrative Agent, substantially in the form of Exhibit H (a
"Commitment Increase Supplement"), which agreement shall specify, among other
things, the amount of the increased U.S. Commitment and/or Multicurrency
Commitment of such Increasing Lender. Upon the effectiveness of such Increasing
Lender's increase in Commitment, Schedule I hereto shall, without further
action, be deemed to have been amended as appropriate to reflect the increased
U.S. Commitment and/or Multicurrency Commitment of such Increasing Lender. Any
Third-Party Lender which, with the consent of the Borrower and the
Administrative Agent (which consent, in the case of the Administrative Agent,
shall not be unreasonably withheld), is willing to become a party hereto and a
Lender hereunder, shall enter into a written agreement with the Borrower and the
Administrative Agent, substantially in the form of Exhibit I (an "Additional
Lender Supplement"), which agreement shall specify, among other things, its U.S.
Commitment and/or its Multicurrency Commitment hereunder. When such

<PAGE>

                                                                              35

Third-Party Lender becomes a Lender hereunder as set forth in the Additional
Lender Supplement, Schedule I shall, without further action, be deemed to have
been amended as appropriate to reflect the U.S. Commitment and/or the
Multicurrency Commitment of such Third-Party Lender. Upon the execution by the
Administrative Agent, the Borrower and such Third-Party Lender of such
Additional Lender Supplement, such Third-Party Lender shall become and be deemed
a party hereto and a "Lender" hereunder for all purposes hereof and shall enjoy
all rights and assume all obligations on the part of the Lenders set forth in
this Agreement, and its U.S. Commitment and/or its Multicurrency Commitment
shall be the amount specified in its Additional Lender Supplement. Each
Third-Party Lender which executes and delivers an Additional Lender Supplement
and becomes a party hereto and a "Lender" hereunder pursuant to such Additional
Lender Supplement is hereinafter referred to as an "Additional Lender."

            (c) In no event shall an increase in a Lender's U.S. Commitment
and/or Multicurrency Commitment or the addition of a U.S. Commitment and/or
Multicurrency Commitment of a Third-Party Lender become effective until the
Administrative Agent shall have received a certificate from the Borrower, to the
effect that the representations and warranties shall be true and correct in all
material respects and no Default or Event of Default shall have occurred and be
continuing after giving effect to the increase in the Commitments resulting from
the increase in such Lender's U.S. Commitment and/or Multicurrency Commitment or
the extension of a U.S. Commitment and/or Multicurrency Commitment by such
Third-Party Lender. In no event shall an increase in a Lender's U.S. Commitment
and/or Multicurrency Commitment or the addition of a U.S. Commitment and/or
Multicurrency Commitment of a Third-Party Lender which results in the
Commitments exceeding the amount which is authorized at such time in resolutions
previously delivered to the Administrative Agent become effective until the
Administrative Agent shall have received a copy of the resolutions, in form and
substance satisfactory to the Administrative Agent, of the Board of Directors or
the Executive Committee of the Board of Directors of the Borrower authorizing
the borrowings contemplated pursuant to such increase, certified by the
Secretary or an Assistant Secretary of the Borrower. Concurrently with the
execution by an Increasing Lender of a Commitment Increase Supplement or by an
Additional Lender of an Additional Lender Supplement, the Borrower shall make
such borrowing from such Increasing Lender or Additional Lender, and/or shall
make such prepayment of outstanding U.S. Revolving Credit Loans or Multicurrency
Loans, as shall be required to cause the aggregate outstanding principal amount
of U.S. Revolving Credit Loans and Multicurrency Loans owing to each Lender
(including each such Increasing Lender and Additional Lender) to be proportional
to such U.S. Lender's share of the Aggregate U.S. Commitments and/or such
Multicurrency Lender's share of the Multicurrency Commitments, respectively,
after giving effect to any increase thereof. The Borrower agrees to indemnify
each Lender and to hold each Lender harmless from any loss or expense incurred
as a result of any such prepayment in accordance with subsection 2.17, as
applicable.

            (d) Upon any Lender entering into a Commitment Increase Supplement
or any Additional Lender becoming a party hereto, the Administrative Agent shall
notify each other Lender thereof and shall deliver to each Lender a copy of the
Additional Lender Supplement executed by such Additional Lender and the
Commitment Increase Supplement executed by such Increasing Lender.

<PAGE>

                                                                              36

                   SECTION 3. REPRESENTATIONS AND WARRANTIES

            To induce the Administrative Agent and the Lenders to enter into
this Agreement and to make the Loans, the Borrower hereby represents and
warrants to the Administrative Agent and each Lender that:

            3.1. Financial Condition. The Borrower has heretofore furnished to
each Lender a copy of the audited consolidated financial statements of the
Borrower for the fiscal years ended December 31, 2002 and December 31, 2003 and
unaudited consolidated financial statements of the Borrower for the quarterly
period ended March 31, 2004. Such financial statements present fairly the
financial condition and results of operations of the Borrower and its
consolidated Subsidiaries as of, and for the fiscal years and fiscal quarters
ended on, such dates in accordance with GAAP (subject, in the case of such
quarterly statements, to normal year-end audit adjustments). Other than as
disclosed in the Borrower's 10-K dated January 28, 2004, or in the Confidential
Information Memorandum, between December 31, 2003 and the Closing Date, there
has been no development or event which has had a Material Adverse Effect.

            3.2. Corporate Existence; Compliance with Law. The Borrower (a) is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has the corporate power and authority, and
the legal right, to own and operate its property, to lease the property it
operates as lessee and to conduct the business in which it is currently engaged,
(c) is duly qualified as a foreign corporation and in good standing under the
laws of each jurisdiction where its ownership, lease or operation of property or
the conduct of its business requires such qualification, except to the extent
that all failures to be duly qualified and in good standing could not, in the
aggregate, have a Material Adverse Effect and (d) is in compliance with all
Requirements of Law except to the extent that the failure to comply therewith
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

            3.3. Corporate Power; Authorization; Enforceable Obligations. The
Borrower has the corporate power and authority, and the legal right, to make,
deliver and perform this Agreement and to borrow hereunder and has taken all
necessary corporate action to authorize the borrowings on the terms and
conditions of this Agreement and to authorize the execution, delivery and
performance of this Agreement. No consent or authorization of any Governmental
Authority or any other Person is required in connection with the borrowings
hereunder or with the execution, delivery, performance, validity or
enforceability of this Agreement. This Agreement has been duly executed and
delivered on behalf of the Borrower. This Agreement constitutes a legal, valid
and binding obligation of the Borrower enforceable against the Borrower in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors' rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

            3.4. No Legal Bar; No Default. The execution, delivery and
performance of this Agreement, the borrowings hereunder and the use of the
proceeds thereof will not violate any Requirement of Law or Contractual
Obligation of the Borrower and will not result in, or require, the creation or
imposition of any Lien on any of its properties or revenues pursuant to any such
Requirement of Law or Contractual Obligation, except to the extent that all such

<PAGE>

                                                                              37

violations and creation or imposition of Liens could not, in the aggregate, have
a Material Adverse Effect. No Default or Event of Default has occurred and is
continuing.

            3.5. No Material Litigation. No litigation, investigation or
proceeding of or before any arbitrator or Governmental Authority is pending or,
to the knowledge of the Borrower, threatened by or against the Borrower or any
of its Subsidiaries or against any of its or their respective properties or
revenues as of the Closing Date (a) with respect to this Agreement or any of the
actions contemplated hereby, or (b) which involves a probable risk of an adverse
decision which would materially restrict the ability of the Borrower to comply
with its obligations under this Agreement.

            3.6. Federal Regulations. No part of the proceeds of any Loans will
be used for "buying," "purchasing" or "carrying" any "margin stock" within the
respective meanings of each of the quoted terms under Regulation U of the Board
of Governors of the Federal Reserve System as now and from time to time
hereafter in effect or for any purpose which violates the provisions of the
Regulations of such Board of Governors.

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

            3.8. ERISA. The Borrower is in compliance with all material
provisions of ERISA, except to the extent that all failures to be in compliance
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

            3.9. No Material Misstatements. No report, financial statement or
other written information furnished by or on behalf of such Borrower to the
Administrative Agent or any Lender pursuant to subsection 3.1 or subsection
5.1(a) contains or will contain any material misstatement of fact or omits or
will omit to state any material fact necessary to make the statements therein,
in light of the circumstances under which they were, are or will be made, not
misleading, except to the extent that the facts (whether misstated or omitted)
do not result in a Material Adverse Effect. No report, financial statement or
other written information furnished by or on behalf of the Borrower for
inclusion in the Confidential Information Memorandum contained as of the Closing
Date any material misstatement of fact or omitted to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, except to the extent that the facts
(whether misstated or omitted) do not result in a Material Adverse Effect. Any
forward-looking information contained in the Confidential Information Memorandum
is based upon good faith judgment believed by management of the Borrower to be
reasonable at the time made, it being recognized by the Lenders that such
information as it relates to future events is not to be viewed as fact and that
actual results during the period or periods covered by such information may
differ from the projected results set forth therein by a material amount.

            3.10. Environmental Matters. Except with respect to any matters
that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, neither the Borrower nor any of its
Subsidiaries (i) has failed to comply with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability,

<PAGE>

                                                                              38

(iii) has received notice of any claim with respect to any Environmental
Liability or (iv) knows of any basis for any Environmental Liability.

            3.11. Subsidiaries. The Subsidiaries listed on Schedule 3.11
constitute all the Subsidiaries of the Borrower on the date hereof which are
"significant subsidiaries" within the meaning of Regulation S-X of the U.S.
Securities and Exchange Commission (other than as set forth in such schedule).

            3.12. Purpose of Loans. The proceeds of the Loans shall be used by
the Borrower for its general corporate purposes including, without limitation,
to support its issuance of commercial paper and for transactions with its
Subsidiaries.

                                   SECTION 4.

                              CONDITIONS PRECEDENT

            4.1. Conditions to Effectiveness. This Agreement, and the
obligations of the Lenders to make Loans hereunder, shall become effective on
the date on which the following conditions precedent are satisfied (and the
Administrative Agent shall notify the Borrower and each Lender promptly after
the receipt of the documents and funds described in paragraphs (a) through (d)
and (f) below):

            (a) Credit Agreement. The Administrative Agent shall have received
this Agreement, executed and delivered (including, without limitation, by way of
a telecopied signature page) by a duly authorized officer of the Borrower and,
subject to the provisions of subsection 9.9, each Lender.

            (b) Secretary's Certificate. The Administrative Agent shall have
received a certificate of the Secretary or Assistant Secretary of the Borrower,
in form and substance satisfactory to the Administrative Agent, which
certificate shall (i) certify as to the incumbency and signature of the officers
of the Borrower executing this Agreement (with the President or a Vice President
of the Borrower attesting to the incumbency and signature of the Secretary or
Assistant Secretary providing such certificate), (ii) have attached to it a
true, complete and correct copy of each of the certificate of incorporation and
by-laws of the Borrower or a statement that there have been no changes since
those previously delivered in connection with the Original Closing Date, (iii)
have attached to it a true and correct copy of the resolutions of the Board of
Directors of the Borrower or a duly authorized committee thereof or a duly
authorized officer thereof, which resolutions shall authorize the execution,
delivery and performance of this Agreement and the borrowings by the Borrower
hereunder and (iv) certify that, as of the date of such certificate (which shall
not be earlier than the date hereof), none of such certificate of incorporation,
by-laws or resolutions shall have been amended, supplemented, modified, revoked
or rescinded.

            (c) Fees. All fees payable by the Borrower to J.P. Morgan Securities
Inc., Citigroup Global Markets Inc., the Administrative Agent or any Lender on
the Closing Date and all expenses payable under subsection 9.5 for which
invoices have been received before the Closing Date shall have been paid.

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                                                                              39

            (d) Legal Opinions. The Administrative Agent shall have received,
(i) the executed legal opinion of Sean Corcoran, Esq., Assistant General
Counsel-Commercial & Transactional of the Borrower, substantially in the form of
Exhibit F-1, (ii) the executed legal opinion of Heller Ehrman White & Mcauliffe
LLP, New York counsel to the Borrower, substantially in the form of Exhibit F-2,
and (iii) the executed legal opinion of Simpson Thacher & Bartlett LLP, counsel
to the Administrative Agent, substantially in the form of Exhibit F-3. The
Borrower hereby instructs the counsel referenced in clause (i) to deliver its
opinion for the benefit of the Administrative Agent and each of the Lenders.

            (e) No Material Adverse Effect. As of the Closing Date, other than
as disclosed in the Borrower's 10-K dated January 28, 2004 or in the
Confidential Information Memorandum, since December 31, 2003, no development or
event shall have occurred that has had a Material Adverse Effect.

            (f) 5-Year Facility. The Administrative Agent shall have received
satisfactory evidence that the Existing 5-Year Facility shall have been amended
and restated and the Borrower shall have executed and delivered definitive
financing documentation with respect to such amended and restated revolving
credit facility, and such documentation shall be in form and substance
reasonably satisfactory to the Administrative Agent.

            4.2. Conditions to Each Loan. The agreement of each Lender to make
any Loan requested to be made by it on any date (including, without limitation,
its initial Loan and any Competitive Loan to be made by it) is subject to the
satisfaction of the following conditions:

            (a) Notice of Borrowing. The Administrative Agent shall have
received a notice of borrowing, as required by subsection 2.2 or 2.3, as the
case may be.

            (b) Representations and Warranties. Each of the representations and
warranties made by the Borrower in or pursuant to this Agreement shall be true
and correct in all material respects on and as of such date as if made on and as
of such date, except to the extent any such representation and warranty
specifically relates to an earlier date, in which case such representation and
warranty shall have been true and correct as of such earlier date.

            (c) No Default. No Default or Event of Default shall have occurred
and be continuing on such date or after giving effect to the Loans requested to
be made on such date.

Each borrowing by the Borrower hereunder shall constitute a representation and
warranty by the Borrower as of the date of such Loan that the conditions
contained in this subsection 4.2 have been satisfied.

                        SECTION 5. AFFIRMATIVE COVENANTS

            The Borrower hereby agrees that, so long as the Commitments remain
in effect, or any amount is owing to any Lender or the Administrative Agent
hereunder, the Borrower shall:

            5.1. Financial Statements. Furnish to each Lender:

            (a) as soon as available, but in any event within 110 days after the
end of each fiscal year of the Borrower, a copy of the audited consolidated
balance sheet of the Borrower and

<PAGE>

                                                                              40

its consolidated Subsidiaries as at the end of such year and the related audited
consolidated statements of income and retained earnings and of cash flows for
such year, setting forth in each case in comparative form the figures for the
previous year; and

            (b) as soon as available, but in any event not later than 60 days
after the end of each of the first three quarterly periods of each fiscal year
of the Borrower, the unaudited consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at the end of such quarter and the related
unaudited consolidated statements of income and retained earnings and of cash
flows of the Borrower and its consolidated Subsidiaries for such quarter and the
portion of the fiscal year through the end of such quarter, setting forth in
each case in comparative form the figures for the previous year;

all such financial statements shall be complete and correct in all material
respects and shall be prepared in accordance with GAAP applied consistently
throughout the periods reflected therein and with prior periods (except as
approved by such accountants or officer, as the case may be, and disclosed
therein).

            5.2. Certificates; Other Information. Furnish to:

            (a) each Lender, concurrently with the delivery of the financial
statements referred to in subsections 5.1(a) and 5.1(b), a certificate of a
Financial Officer (i) stating that, to the best of such Officer's knowledge, (A)
such financial statements present fairly the financial condition and results of
operations of the Borrower and its Subsidiaries for the period referred to
therein (subject, in the case of interim statements, to normal year-end audit
adjustments) and (B) during such period the Borrower has performed all of its
covenants and other agreements contained in this Agreement to be performed by
it, and that no Default or Event of Default has occurred, except as specified in
such certificate, and (ii) setting forth in reasonable detail the calculations
required to establish whether the Borrower was in compliance with the provisions
of subsection 6.1 on the date of such financial statements;

            (b) each Lender, within 15 days after the same become public, copies
of all financial statements and reports which the Borrower may make to, or file
with, the Securities and Exchange Commission or any successor or analogous
Governmental Authority;

            (c) the Administrative Agent, within ten Business Days after the
occurrence thereof, written notice of any change in Status; provided that the
failure to provide such notice shall not delay or otherwise affect any change in
the Applicable Margin or other amount payable hereunder which is to occur upon a
change in Status pursuant to the terms of this Agreement; and

            (d) the Administrative Agent, promptly, such additional financial
and other information as the Administrative Agent, on behalf of any Lender, may
from time to time reasonably request and that is reasonably related to such
Lender's credit analysis of the Borrower and which request does not impose an
unreasonable burden on the Borrower to satisfy.

            5.3. Notices. Promptly give notice to the Administrative Agent and
each Lender of (a) the occurrence of any Default or Event of Default,
accompanied by a statement of a Financial Officer setting forth details of the
occurrence referred to therein and stating what action the Borrower proposes to
take with respect thereto and (b) so long as the Borrower is not subject to the
periodic reporting requirements of the Securities Exchange Act of 1934, as
amended, (i)

<PAGE>

                                                                              41

the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Borrower or any
affiliate thereof that could reasonably be expected to result in a Material
Adverse Effect and (ii) any other development that results in, or could
reasonably be expected to result in, a Material Adverse Effect.

            5.4. Conduct of Business and Maintenance of Existence. (a) Continue
to engage in its principal line of business as now conducted by it, (b)
preserve, renew and keep in full force and effect its corporate existence and
(c) take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its principal line of business,
except, in any such case, as otherwise permitted pursuant to subsection 6.5 or
to the extent that failure to do so would not have a Material Adverse Effect.

            5.5. Books and Records. The Borrower will, and will cause each of
its Subsidiaries to, keep proper books of record and account in which full, true
and correct entries are made of all dealings and transactions in relation to its
business and activities.

            5.6. Environmental Laws. Except as could not in the aggregate
reasonably be expected to result in a Material Adverse Effect:

            (a) comply with all applicable Environmental Laws, and obtain and
comply with and maintain any and all permits, licenses or other approvals
required by applicable Environmental Laws; and

            (b) conduct and complete all investigations, studies, sampling and
testing, and all remedial, removal and other actions required under
Environmental Laws and promptly comply with all lawful orders and directives of
all Governmental Authorities regarding Environmental Laws.

                         SECTION 6. NEGATIVE COVENANTS

            The Borrower hereby agrees that, so long as the Commitments remain
in effect or any amount is owing to any Lender or the Administrative Agent
hereunder:

            6.1. Consolidated Leverage Ratio. The Borrower shall not, directly
or indirectly, permit the Consolidated Leverage Ratio to exceed 3.25 to 1.0 at
the end of any fiscal quarter.

            6.2. Indebtedness. The Borrower shall not, directly or indirectly,
permit any Subsidiary to, create, incur, assume or permit to exist any
Indebtedness or any guarantee of Indebtedness (other than Indebtedness of any
Subsidiary to the Borrower or to any other Subsidiary and other than Permitted
Receivables Financings), except Indebtedness and guarantees in an aggregate
principal amount at any one time outstanding, which when combined with (but
without duplication) (i) the aggregate outstanding principal amount of
obligations secured by a Lien upon any of the property or revenues of the
Borrower or any of its Subsidiaries at such time (other than Liens securing
Indebtedness of any Subsidiary to the Borrower or to any other Subsidiary and
other than Liens securing Permitted Receivables Financings) and (ii) the
aggregate amount of Sale-Leasebacks consummated since the Original Closing Date
and which are outstanding on the relevant date of determination (other than
Sale-Leasebacks to the extent the proceeds thereof are used to refinance any
Sale-Leaseback which was in existence on the

<PAGE>

                                                                              42

Original Closing Date and other than Intercompany Sale-Leasebacks), shall not
exceed 15% of Consolidated Total Assets as reflected in the most recent annual
audited consolidated financial statements of the Borrower delivered pursuant to
subsection 5.1(a).

            6.3. Liens. The Borrower shall not nor shall it permit any
Subsidiary to, directly or indirectly, create, incur, assume or suffer to exist
any Lien upon any of its property or revenues, whether now owned or hereafter
acquired (other than Liens securing Indebtedness of any Subsidiary to the
Borrower or to any other Subsidiary and other than Liens securing Permitted
Receivables Financings), except Liens at any one time outstanding with respect
to which the aggregate outstanding principal amount of the obligations secured
thereby, which when combined with (but without duplication) (i) the aggregate
principal amount of Indebtedness and guarantees of Indebtedness of any
Subsidiary outstanding at such time (other than Indebtedness of any Subsidiary
to the Borrower or to any other Subsidiary and other than Permitted Receivables
Financings) and (ii) the aggregate amount of Sale-Leasebacks consummated since
the Original Closing Date and which are outstanding on the relevant date of
determination (other than Sale-Leasebacks to the extent the proceeds thereof are
used to refinance any Sale-Leaseback which was in existence on the Original
Closing Date and other than Intercompany Sale-Leasebacks), shall not exceed 15%
of Consolidated Total Assets as reflected in the most recent annual audited
consolidated financial statements of the Borrower delivered pursuant to
subsection 5.1(a).

            6.4. Sale-Leasebacks. The Borrower shall not nor shall it permit any
Subsidiary to, directly or indirectly, enter into any arrangement with any
Person providing for the leasing by the Borrower or any Subsidiary of any
property owned by the Borrower or any Subsidiary (except for Intercompany
Sale-Leasebacks), which property has been or is to be sold or transferred by the
Borrower or such Subsidiary to such Person ("Sale-Leasebacks"), except for
Sale-Leasebacks consummated since the Original Closing Date and which are
outstanding on the relevant date of determination (other than Sale-Leasebacks to
the extent the proceeds thereof are used to refinance any Sale-Leaseback which
was in existence on the Original Closing Date) in an aggregate amount, which
when combined with (but without duplication) (i) the aggregate outstanding
principal amount of obligations secured by a Lien upon any of the property or
revenues of the Borrower or any of its Subsidiaries at the time of entering into
any such Sale-Leaseback (other than Liens securing Indebtedness of any
Subsidiary to the Borrower or to any other Subsidiary and other than Liens
securing Permitted Receivables Financings) and (ii) the aggregate principal
amount of Indebtedness and guarantees of Indebtedness of any Subsidiary
outstanding at such time (other than Indebtedness of any Subsidiary to the
Borrower or to any other Subsidiary and other than Permitted Receivables
Financings), shall not exceed 15% of Consolidated Total Assets as reflected in
the most recent annual audited consolidated financial statements of the Borrower
delivered pursuant to subsection 5.1(a).

            6.5. Merger, Consolidation, etc. The Borrower shall not, directly or
indirectly, merge or consolidate with any other Person, or liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution) or sell or convey all
or substantially all of its assets to any Person unless, in the case of mergers
and consolidations, (a) the Borrower shall be the continuing corporation and (b)
immediately before and immediately after giving effect to such merger or
consolidation, no Default or Event of Default shall have occurred and be
continuing.

<PAGE>

                                                                              43

                          SECTION 7. EVENTS OF DEFAULT

            If any of the following events shall occur and be continuing:

            (a) The Borrower shall (i) fail to pay any principal of any Loan
when due in accordance with the terms hereof or (ii) fail to pay any interest on
any Loan or any other amount which is payable hereunder and (in the case of this
clause (ii) only) such failure shall continue unremedied for more than five
Business Days after written notice thereof has been given to the Borrower by the
Administrative Agent or the Majority Lenders; or

            (b) Any representation or warranty made or deemed made by the
Borrower in Section 3 or any certified statement furnished pursuant to
subsection 5.2(b) shall prove to have been incorrect on or as of the date made
or deemed made or certified if the facts or circumstances incorrectly
represented or certified result in a Material Adverse Effect; or

            (c) The Borrower shall default in the observance of the agreement
contained in subsection 5.3(a) or subsection 5.4(a) or (b) or Section 6; or

            (d) The Borrower shall default in the observance or performance of
any other agreement contained in this Agreement (other than as provided in
paragraphs (a), (b) and (c) of this Section 7), and such default shall continue
unremedied for a period of 30 days after written notice thereof shall have been
given to the Borrower by the Administrative Agent or the Majority Lenders; or

            (e) The Borrower or any Significant Subsidiary shall default in any
payment of $50,000,000 or more of principal of or interest on any Indebtedness
or in the payment of $50,000,000 or more on account of any guarantee in respect
of Indebtedness, beyond the period of grace, if any, provided in the instrument
or agreement under which such Indebtedness or guarantee was created; or

            (f) Any event or condition occurs that results in any Indebtedness
or any guarantee of Indebtedness of the Borrower or any of its Significant
Subsidiaries of an aggregate principal amount of $50,000,000 or more becoming
due in full or payable in full prior to the scheduled maturity of such
Indebtedness or guarantee or that requires the prepayment, repurchase,
redemption or defeasance thereof in full, prior to the scheduled maturity of
such Indebtedness or guarantee (other than pursuant to any voluntary
prepayments, customary due-on-sale clause or any provision requiring prepayment
of such Indebtedness based on excess cash flow, permitted asset sales or
permitted debt or equity issuances, in each case contained in the terms of such
Indebtedness); provided that this clause (f) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of
the property or assets securing such Indebtedness; or

            (g) (i) The Borrower or any of its Significant Subsidiaries shall
commence any case, proceeding or other action (A) under any existing or future
law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator
or other similar official for it or for all

<PAGE>

                                                                              44

or any substantial part of its assets, or the Borrower or any of its Significant
Subsidiaries shall make a general assignment for the benefit of its creditors;
or (ii) there shall be commenced against the Borrower or any of its Significant
Subsidiaries any case, proceeding or other action of a nature referred to in
clause (i) above which (A) results in the entry of an order for relief or any
such adjudication or appointment or (B) remains undismissed, undischarged or
unbonded for a period of 90 days; or (iii) there shall be commenced against the
Borrower or any of its Significant Subsidiaries any case, proceeding or other
action seeking issuance of a warrant of attachment, execution, distraint or
similar process against all or any substantial part of its assets which results
in the entry of an order for any such relief which shall not have been vacated,
discharged, or stayed or bonded pending appeal within 90 days from the entry
thereof; or

            (h) One or more judgments or decrees shall (i) be entered against
the Borrower, (ii) not have been vacated, discharged, satisfied, stayed or
bonded pending appeal within 60 days from the entry thereof and (iii) involve a
liability (not paid or fully covered by insurance) of either (A) $40,000,000 or
more, in the case of any single judgment or decree or (B) $100,000,000 or more
in the aggregate, in the case of all such judgments and decrees; or

            (i) The Borrower or any of its Significant Subsidiaries shall
default in the performance of any of its obligations under, or otherwise fail to
observe or perform any covenant, condition or agreement contained in, any of the
Material Agreements, to the extent the consequences of any such default or
failure could reasonably be expected to result in a Material Adverse Effect;

            then, and in any such event, (A) if such event is an Event of
Default specified in clause (i) or (ii) of paragraph (g) above with respect to
the Borrower, automatically the Commitments shall immediately terminate and the
Loans hereunder (with accrued interest thereon) and all other amounts owing
under this Agreement shall immediately become due and payable, and (B) if such
event is any other Event of Default, either or both of the following actions may
be taken: (i) with the consent of the Majority Lenders, the Administrative Agent
may, or upon the request of the Majority Lenders, the Administrative Agent
shall, by notice to the Borrower declare the Commitments to be terminated
forthwith, whereupon the Commitments shall immediately terminate; and (ii) with
the consent of the Majority Lenders, the Administrative Agent may, or upon the
request of the Majority Lenders, the Administrative Agent shall, by notice to
the Borrower, declare the Loans hereunder (with accrued interest thereon) and
all other amounts owing under this Agreement to be due and payable forthwith,
whereupon the same shall immediately become due and payable. Except as expressly
provided above in this Section 7, presentment, demand, protest and all other
notices of any kind are hereby expressly waived.

                      SECTION 8. THE ADMINISTRATIVE AGENT

            8.1. Appointment. Each Lender hereby irrevocably designates and
appoints JPMCB as the Administrative Agent of such Lender under this Agreement,
and each such Lender irrevocably authorizes JPMCB, as the Administrative Agent
for such Lender, to take such action on its behalf under the provisions of this
Agreement and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of this Agreement, together
with such other powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary elsewhere in this Agreement, the Administrative

<PAGE>

                                                                              45

Agent shall not have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or otherwise exist against the Administrative Agent.

            8.2. Delegation of Duties. The Administrative Agent may execute any
of its duties under this Agreement by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such
duties. The Administrative Agent shall not be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.

            8.3. Exculpatory Provisions. Neither the Administrative Agent nor
any of its officers, directors, employees or affiliates shall be (i) liable for
any action lawfully taken or omitted to be taken by it or such Person under or
in connection with this Agreement (except for its or such Person's own gross
negligence or willful misconduct) or (ii) responsible in any manner to any of
the Lenders for any recitals, statements, representations or warranties made by
the Borrower or any officer thereof contained in this Agreement or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Administrative Agent under or in connection with, this
Agreement or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or for any failure of the Borrower to perform
its obligations hereunder. The Administrative Agent shall not be under any
obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement, or to inspect the properties, books or records of the Borrower.

            8.4. Reliance by Administrative Agent. The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy,
telex or teletype message, statement, order or other document or conversation
believed by it in good faith to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of
legal counsel (including, without limitation, counsel to the Borrower),
independent accountants and other experts selected by the Administrative Agent.
The Administrative Agent may deem and treat the Lender specified in the Register
with respect to any amount owing hereunder as the owner thereof for all purposes
unless a written notice of assignment, negotiation or transfer thereof shall
have been filed with the Administrative Agent. The Administrative Agent shall be
fully justified in failing or refusing to take any action under this Agreement
unless it shall first receive such advice or concurrence of the Majority Lenders
as it deems appropriate or it shall first be indemnified to its satisfaction by
the Lenders against any and all liability and expense which may be incurred by
it by reason of taking or continuing to take any such action. The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement in accordance with a request of the Majority
Lenders (or, to the extent that this Agreement expressly requires a higher
percentage of Lenders, such higher percentage), and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders
and all future holders of the obligations owing by the Borrower hereunder.

            8.5. Notice of Default. The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of Default
hereunder other than a Default or Event of Default under Section 7(a) unless the
Administrative Agent has received

<PAGE>

                                                                              46

written notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a
"notice of default". In the event that the Administrative Agent receives such a
notice, the Administrative Agent shall promptly notify the Borrower (unless the
Borrower shall have delivered such notice to the Administrative Agent) and then
give notice thereof to the Lenders (provided that the failure to notify the
Borrower shall not impair any of the rights of the Administrative Agent and the
Lenders with respect to the events and circumstances specified in such notice).
The Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Majority Lenders;
provided that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable in the best interests of the
Lenders.

            8.6. Non-Reliance on Administrative Agent and Other Lenders. Each
Lender expressly acknowledges that neither the Administrative Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates has
made any representations or warranties to it and that no act by the
Administrative Agent hereinafter taken, including any review of the affairs of
the Borrower, shall be deemed to constitute any representation or warranty by
the Administrative Agent to any Lender. Each Lender represents to the
Administrative Agent that it has, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower and made its own decision to make
its Loans hereunder and enter into this Agreement. Each Lender also represents
that it will, independently and without reliance upon the Administrative Agent
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Borrower. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of the Borrower which may come into
the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.

            8.7. Indemnification. The Lenders agree to indemnify the
Administrative Agent in its capacity as such (to the extent not reimbursed by
the Borrower and without limiting the obligation of the Borrower to do so),
ratably according to their respective U.S. Commitment Percentages in effect on
the date on which indemnification is sought under this subsection 8.7 (or, if
indemnification is sought after the date upon which the Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance
with their U.S. Commitment Percentages immediately prior to such date of payment
in full), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time (including, without limitation, at
any time following the payment of the amounts owing hereunder) be imposed on,
incurred by or asserted against the Administrative Agent in any way relating to
or arising out of this Agreement or any documents contemplated by or referred to
herein or therein or the

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                                                                              47

transactions contemplated hereby or thereby or any action taken or omitted by
the Administrative Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from the Administrative Agent's gross
negligence or willful misconduct. The Administrative Agent shall have the right
to deduct any amount owed to it by any Lender under this subsection 8.7 from any
payment made by it to such Lender hereunder and shall provide notice of such
calculation to such Lender. The agreements in this subsection 8.7 shall survive
the payment of the Loans and all other amounts payable hereunder.

            8.8. Administrative Agent in Its Individual Capacity. The
Administrative Agent and its affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Borrower as though the
Administrative Agent were not the Administrative Agent hereunder. With respect
to its Loans made or renewed by it, the Administrative Agent shall have the same
rights and powers under this Agreement as any Lender and may exercise the same
as though it were not the Administrative Agent, and the terms "Lender" and
"Lenders" shall include the Administrative Agent in its individual capacity.

            8.9. Successor Administrative Agent. The Administrative Agent may
resign as Administrative Agent upon 90 days' notice to the Lenders and the
Borrower and following the appointment of a successor Administrative Agent in
accordance with the provisions of this subsection 8.9. If the Administrative
Agent shall resign as Administrative Agent under this Agreement, then the
Majority Lenders shall appoint from among the Lenders willing to serve as
Administrative Agent a successor Administrative Agent for the Lenders, which
successor Administrative Agent shall be approved by the Borrower (which approval
shall not be unreasonably withheld), whereupon such successor Administrative
Agent shall succeed to the rights, powers and duties of the Administrative
Agent, and the term "Administrative Agent" shall mean such successor
Administrative Agent effective upon such appointment and approval, and the
former Administrative Agent's rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement or any
holders of the obligations owing hereunder. If no successor agent has accepted
appointment as Administrative Agent by the date that is 90 days following a
retiring Administrative Agent's notice of resignation, the retiring
Administrative Agent's resignation shall nevertheless thereupon become effective
and the Lenders shall assume and perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Majority Lenders appoint a
successor agent as provided for above. After any retiring Administrative Agent's
resignation as Administrative Agent, the provisions of this Section 8 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.

            8.10. Syndication Agent and Documentation Agents. Neither of the
Syndication Agent nor the Documentation Agents shall have any duties or
responsibilities hereunder in their capacities as such.

                            SECTION 9. MISCELLANEOUS

            9.1. Amendments and Waivers. (a) Neither this Agreement, nor any
terms hereof may be amended, supplemented or modified except in accordance with
the provisions of

<PAGE>

                                                                              48

this subsection 9.1. The Majority Lenders may, or, with the written consent of
the Majority Lenders, the Administrative Agent may, from time to time, (i) enter
into with the Borrower written amendments, supplements or modifications hereto
for the purpose of adding any provisions to this Agreement or changing in any
manner the rights of the Lenders or of the Borrower hereunder or (ii) waive, on
such terms and conditions as the Majority Lenders or the Administrative Agent,
as the case may be, may specify in such instrument, any of the requirements of
this Agreement or any Default or Event of Default and its consequences;
provided, however, that no such waiver and no such amendment, supplement or
modification shall (x) reduce the principal amount of any Loan, or reduce the
stated rate of any interest or fee payable hereunder, or extend the scheduled
date of any payment thereof, or increase the amount or extend the expiration
date of any Lender's Commitment or amend, modify or waive any provision of
subsection 2.13 or 9.7, in each case without the consent of each Lender directly
affected thereby, (y) amend, modify or waive any provision of this subsection
9.1 or reduce the percentage specified in the definition of Majority Lenders, or
consent to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement, in each case without the written consent of
all the Lenders, or reduce the percentage specified in the definition of
Majority U.S. Lenders without the written consent of all the U.S. Lenders, or
the percentage specified in the definition of Majority Multicurrency Lenders
without the written consent of all Multicurrency Lenders or (z) amend, modify or
waive any provision of Section 8 or any other provision of this Agreement
governing the rights or obligations of the Administrative Agent without the
written consent of the then Administrative Agent. Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the Lenders
and shall be binding upon the Borrower, the Lenders, the Administrative Agent
and all future holders of the obligations owing hereunder. In the case of any
waiver, the Borrower, the Lenders and the Administrative Agent shall be restored
to their former position and rights hereunder, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default, or
impair any right consequent thereon.

            (b) In addition to amendments effected pursuant to the foregoing
paragraph (a), Schedule III may be amended as follows:

                  (i) (A) to change administrative information contained therein
      (other than any interest rate definition, funding time, payment time or
      notice time contained therein) or (B) to add Available Foreign Currencies
      (and related interest rate definitions and administrative information)
      with the approval of the Majority Multicurrency Lenders, in each case,
      upon execution and delivery by the Borrower and the Administrative Agent
      of a written amendment providing for such amendment;

                  (ii) to conform any funding time, payment time or notice time
      contained therein to then-prevailing market practices, upon execution and
      delivery by the Borrower and the Administrative Agent of a written
      amendment providing for such amendment; and

                  (iii)to change any interest rate definition contained therein,
      upon execution and delivery by the Borrower, all the Multicurrency Lenders
      and the Administrative Agent of a written amendment providing for such
      amendment.

<PAGE>

                                                                              49

            (c) The Administrative Agent shall give prompt notice to each U.S.
Lender of any amendment effected pursuant to subsection 9.1(b).

            9.2. Notices. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered by hand, or four days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed as follows in the case of the Borrower and the
Administrative Agent, and as set forth in Schedule II in the case of the other
parties hereto, or to such other address as may be hereafter notified by the
respective parties hereto and any future holders of the obligations owing
hereunder:

     The Borrower:               Delphi Corporation
                                 5725 Delphi Drive
                                 Troy, Michigan  48098
                                 Attention: Treasurer
                                 Facsimile: (248) 813-2590
                                 Telephone: (248) 813-2592

     The Administrative Agent:   with respect to Loans denominated in Dollars
                                 and other matters:

                                 JPMorgan Chase Bank
                                 Loan Agency Services Group
                                 1111 Fannin
                                 10th Floor
                                 Houston, TX 77002
                                 Attention: Glenn Hector
                                 Facsimile: 713-750-2938
                                 Telephone: 713-750-7910

                                 and in the case of and with respect to Loans
                                 denominated in Available Foreign Currencies:

                                 JPMorgan Chase Bank
                                 Trinity Tower
                                 9 Thomas Moore Street
                                 London, EY91T
                                 Attention: Caroline Walsh
                                 Facsimile: 011-44-20-7-777-2360
                                 Telephone: 011-44-20-7-777-2350

     with a copy to:             JPMorgan Chase Bank
                                 270 Park Avenue
                                 4th Floor
                                 New York, New York  10017
                                 Attention: Richard Duker
                                 Facsimile: (212) 270-5127

<PAGE>

                                                                              50

                                 Telephone: (212) 270-3057

provided that any notice, request or demand to or upon the Administrative Agent
or the Lenders pursuant to subsection 2.1(b), 2.2(b), 2.3, 2.4, 2.5 and 2.6
shall not be effective until received.

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

            9.4. Survival of Representations and Warranties. All representations
and warranties made hereunder and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Agreement and the making of the Loans hereunder.

            9.5. Payment of Expenses and Taxes. The Borrower agrees (a) to pay
or reimburse the Administrative Agent for all its reasonable out-of-pocket costs
and expenses reasonably incurred in connection with the development, preparation
and execution of, and any amendment, supplement or modification to, this
Agreement and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including, without limitation, the reasonable fees, disbursements
and other reasonable charges of counsel to the Administrative Agent, (b) to pay
or reimburse each Lender and the Administrative Agent for all its reasonable
costs and expenses reasonably incurred in connection with the enforcement of any
rights under this Agreement, including, without limitation, the reasonable fees,
disbursements and other reasonable charges of counsel to the Administrative
Agent and to the several Lenders (other than those incurred in connection with
the compliance by the relevant Lender with the provisions of subsection
2.18(a)), and (c) to pay, indemnify, and hold each Lender and the Administrative
Agent harmless from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay by the Borrower in
paying, stamp, excise and other taxes, if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of, this Agreement, and (d) to pay, indemnify, and hold each Lender,
the Administrative Agent, their affiliates, and their respective directors,
officers, employees, advisors and agents (each, an "indemnified person")
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, reasonable expenses or
disbursements of any kind or nature whatsoever (it being understood that this
shall not include the fees and disbursements of counsel to any of the Lenders
(other than JPMCB) in connection with (i) their review of this Agreement prior
to the Closing Date or (ii) prior to the occurrence of a Default or an Event of
Default, any amendment or waiver to this Agreement or any assignment to another
Lender pursuant to the terms hereof) with respect to the execution, delivery,
enforcement, performance and administration of this Agreement (all the foregoing
in this clause (d), collectively, the "indemnified liabilities"); provided that
the Borrower shall have no obligation hereunder to any indemnified person with
respect to indemnified liabilities arising from the gross negligence or

<PAGE>

                                                                              51

willful misconduct of such indemnified person or any of its affiliates,
directors, officers, employees, advisers or agents. The agreements in this
subsection 9.5 shall survive repayment of the Loans and all other amounts
payable hereunder.

            9.6. Successors and Assigns; Participations and Assignments. (a) The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby,
except that (i) the Borrower may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of each Lender
(and any attempted assignment or transfer by the Borrower without such consent
shall be null and void) and (ii) no Lender may assign or otherwise transfer its
rights or obligations hereunder except in accordance with this subsection (and
any attempted assignment or transfer by a Lender without the consent of the
Borrower or the Administrative Agent, if such consent is required by this
subsection, shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
(to the extent provided in paragraph (c) of this subsection) and, to the extent
expressly contemplated hereby, the Related Parties of each of the Administrative
Agent and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

            (b) (i) Subject to the conditions set forth in paragraph (b)(ii)
below, any Lender may assign to one or more assignees all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it) with the prior written consent
(such consent not to be unreasonably withheld) of:

                  (A) the Borrower, provided that no consent of the Borrower
      shall be required for an assignment to (x) a Lender or an affiliate of a
      Lender unless such assignment would result in increased costs to the
      Borrower or, (y) if an Event of Default under clause (a) or (g) of Section
      7 has occurred and is continuing, any other Assignee; and

                  (B) the Administrative Agent, provided that no consent of the
      Administrative Agent shall be required for an assignment to an Assignee
      that is a Lender immediately prior to giving effect to such assignment.

                  (ii) Assignments shall be subject to the following additional
conditions:

                  (A) except in the case of an assignment to a Lender or an
      affiliate of a Lender, the amount of the Commitment of the assigning
      Lender subject to each such assignment (determined as of the date the
      Assignment and Assumption with respect to such assignment is delivered to
      the Administrative Agent) shall not be less than $5,000,000 and, in the
      case of a partial assignment by a Lender the amount of the Commitment of
      the assigning Lender after giving effect thereto may not be less than
      $5,000,000, unless, in either case, each of the Borrower and the
      Administrative Agent otherwise consent (such consent not to be
      unreasonably withheld), provided that no such consent of the Borrower
      shall be required if an Event of Default under clause (a) or (g) of
      Section 7 has occurred and is continuing;

                  (B) each partial assignment shall be made as an assignment of
      a proportionate part of all the assigning Lender's rights and obligations
      under this

<PAGE>

                                                                              52

      Agreement, provided that (i) this clause shall not apply to rights in
      respect of outstanding Competitive Loans and (ii) with the consent of the
      Borrower and the Administrative Agent (such consent not to be unreasonably
      withheld), a Lender may assign portions of its U.S Commitment without
      assigning a proportionate share of its Multicurrency Commitment if either
      (x) such proportionate share of such Multicurrency Commitment shall be
      assumed by another Lender or (y) if the Borrower so agrees, such
      proportionate share of such Multicurrency Commitment shall be terminated;

                  (C) the parties to each assignment shall execute and deliver
      to the Administrative Agent an Assignment and Assumption, together with a
      processing and recordation fee of $3,500; and

                  (D) the Assignee, if it shall not be a Lender, shall deliver
      to the Administrative Agent an Administrative Questionnaire.

            (iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this subsection, from and after the effective date
specified in each Assignment and Assumption the Assignee thereunder shall be a
party hereto and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of subsections 2.15, 2.16, 2.17 and 9.5). Any assignment or transfer by
a Lender of rights or obligations under this Agreement that does not comply with
this subsection 9.6 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this subsection provided that it otherwise satisfies the
requirements of such paragraph.

            (iv) The Administrative Agent, acting for this purpose as an agent
of the Borrower, shall maintain at one of its offices a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitment of, and principal amount of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
"Register"). The entries in the Register shall be prima facie evidence of the
existence and amounts of the obligations therein recorded, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement. The Register shall be available for inspection
and copying by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice. The Administrative Agent shall provide a
copy of the Register to the Borrower on a monthly basis.

            (v) Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an Assignee, the Assignee's completed
Administrative Questionnaire (unless the Assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this subsection and any written consent to such assignment required by paragraph
(b) of this subsection, the Administrative Agent shall accept such Assignment
and Assumption and record the information contained therein in the Register. No

<PAGE>

                                                                              53

assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

            (c) (i) Any Lender may, without the consent of the Borrower or the
Administrative Agent in the ordinary course of business and in accordance with
applicable law, sell participating interests to one or more banks or other
entities (a "Participant") in all or a portion of such Lender's rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans owing to it); provided that (A) such Lender's obligations under
this Agreement shall remain unchanged and such Lender shall, for all purposes of
this Agreement, remain the holder of any obligation owing to it hereunder, (B)
such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (C) the Borrower, the Administrative Agent and
the other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement and
(D) such Lender shall have given prior written notice to the Borrower of the
identity of such Participant. In no event shall any Participant have any right,
and each agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right, to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, modification or waiver described in clause (x) of the proviso
to subsection 9.1(a) that directly affects such Lender or in clause (y) of the
proviso to subsection 9.1(a). Subject to paragraph (c)(ii) of this subsection,
the Borrower agrees that each Participant shall be entitled to the benefits of
subsections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to paragraph (b) of this
subsection.

            (ii) A Participant shall not be entitled to receive any greater
payment under subsection 2.15 or 2.16 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower's prior written consent. A Participant that is not organized under the
laws of the United States of America or a state thereof shall not be entitled to
the benefits of subsection 2.16 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with subsection 2.16(b) as though it were a
Lender.

            (d) Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and the other paragraphs of this subsection shall not
apply to any such pledge or assignment of a security interest; provided that no
such pledge or assignment of a security interest shall release a Lender from any
of its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto or otherwise permit such pledgee or assignee to
exercise the rights of a Lender hereunder.

            (e) The Borrower authorizes each Lender to disclose to any
prospective Participant, any Participant, any prospective assignee (each, a
"Transferee") or any actual or proposed contractual counterparty (or its
advisors) to any securitization, hedge, or other derivative transaction relating
to the parties' obligations hereunder (each, a "Counterparty") any and all
financial information in such Lender's possession concerning the Borrower and
its affiliates which has been delivered to such Lender by or on behalf of the
Borrower pursuant to

<PAGE>

                                                                              54

this Agreement or which has been delivered to all Lenders by or on behalf of the
Borrower in connection with their respective credit evaluations of the Borrower
and its affiliates prior to becoming a party to this Agreement; provided that
(i) such Transferee or Counterparty has executed and delivered to the Borrower a
written confidentiality agreement substantially in the form of that which has
been executed and delivered by each Lender prior to the date hereof and (ii) in
the case of any information other than that contained in the Confidential
Information Memorandum, the Borrower has been informed of the identity of such
Transferee or Counterparty and has consented to the disclosure of such
information thereto. Nothing contained in this subsection 9.6(e) shall be deemed
to prohibit the delivery to any Transferee or Counterparty of any financial
information which is otherwise publicly available.

            9.7. Adjustments. If any Lender (a "benefitted Lender") shall at any
time receive any payment of all or part of its Loans, or interest thereon, or
receive any collateral in respect thereof (whether voluntarily or involuntarily,
by set-off, pursuant to events or proceedings of the nature referred to in
Section 7(g), or otherwise), such that it has received aggregate payments or
collateral on account of its Loans in a greater proportion than any such payment
to or collateral received by any other Lender, if any, in respect of such other
Lender's Loans which are then due and payable, or interest thereon, such
benefitted Lender shall purchase for cash from the other Lenders a participating
interest in such portion of each such other Lender's Loans, or shall provide
such other Lenders with the benefits of any such collateral, or the proceeds
thereof, as shall be necessary to cause such benefitted Lender to share the
excess payment or benefits of such collateral or proceeds ratably with each of
the Lenders; provided, however, that if all or any portion of such excess
payment or benefits is thereafter recovered from such benefitted Lender, such
purchase shall be rescinded, and the purchase price and benefits returned, to
the extent of such recovery, but without interest (unless the Lender from which
such payment is recovered is required to pay interest thereon, in which case
each Lender returning funds to such Lender shall pay its pro rata share of such
interest).

            9.8. Loan Conversion/Participations. (a) On the Conversion Date, if
the ratio (expressed as a percentage) of (i) the aggregate amount of the Dollar
Equivalent (determined on the basis of the Spot Exchange Rates as of such date)
of the Multicurrency Loans and the U.S. Revolving Credit Loans owed to the
Multicurrency Lenders to (ii) the aggregate amount of the Dollar Equivalent
(determined on the basis of the Spot Exchange Rates as of such date) of the
Multicurrency Loans and the U.S. Revolving Credit Loans owed to all the Lenders
exceeds the U.S. Commitment Percentage of all Multicurrency Lenders (immediately
prior to the termination of the Commitment), then the excess amount (the "Excess
Loans") shall be subject to the following adjustments;

                  (A) To the extent that on the Conversion Date any
      Multicurrency Lender has any U.S. Revolving Credit Loans outstanding, each
      Non-Multicurrency Lender severally unconditionally and irrevocably agrees
      that it shall purchase in Dollars a participating interest in such
      Multicurrency Lenders' U.S. Revolving Credit Loans then outstanding in an
      amount as may be necessary to cause each Lender's interest in the
      aggregate amount of all Loans (other than the Competitive Bid Loans, if
      any) after giving effect to the purchase contemplated by this clause (A)
      to be equal to its U.S. Commitment Percentage (immediately before the
      termination of the Commitments) or as near thereto as practicable;
      provided that the aggregate amount purchased by all Non-Multicurrency

<PAGE>

                                                                              55

      Lenders shall not exceed the lesser of (1) the Excess Loans and (2) the
      total aggregate amount of Multicurrency Lenders' U.S. Revolving Credit
      Loans denominated in Dollars.

                  (B) To the extent that there remain any Excess Loans not
      purchased by the Non-Multicurrency Lenders pursuant to the preceding
      clause (A) (the "Loans to be Converted") and to the extent not otherwise
      prohibited by a Requirement of Law, all Loans to be Converted shall be
      converted into Dollars (calculated on the basis of the relevant Spot
      Exchange Rates as of the Conversion Date) ("Converted Loans"), and each
      Non-Multicurrency Lender severally, unconditionally and irrevocably agrees
      that it shall purchase in Dollars a participating interest in such
      Converted Loans in such amounts as may be necessary to cause each Lender's
      interest in the aggregate amount of all Loans (other than the Competitive
      Bid Loans, if any) after giving effect to the purchase contemplated by
      this clause (B) to be equal to its U.S. Commitment Percentage (immediately
      before the termination of the Commitments).

                  (C) Each U.S. Lender will immediately transfer to the
      Administrative Agent, in immediately available funds, the amounts of its
      participation(s), and the proceeds of such participation(s) shall be
      distributed by the Administrative Agent to each Lender from which a
      participating interest is being purchased in the amount(s) provided for in
      the preceding clauses (A) and (B). All Converted Loans shall bear interest
      at the rate which would otherwise be applicable to ABR Loans.

            (b) If, for any reason, the Loans to be Converted may not be
converted into Dollars in the manner contemplated by paragraph (a) of this
subsection 9.8, (i) the Administrative Agent shall determine the Dollar
Equivalent of the Loans to be Converted, (calculated on the basis of the Spot
Exchange Rate as of the Business Day immediately preceding the date on which
such conversion would otherwise occur pursuant to paragraph (a) of this
subsection 9.8), (ii) effective on such Conversion Date, each Non-Multicurrency
Lender severally, unconditionally and irrevocably agrees that it shall purchase
in Dollars a participating interest in such Loans to be Converted, in an amount
equal to the amount it would have purchased pursuant to clause (B) of paragraph
(a) above. Each Non-Multicurrency Lender will immediately transfer to the
Administrative Agent, in immediately available funds, the amount(s) of its
participation(s), and the proceeds of such participation(s) shall be distributed
by the Administrative Agent to each relevant Lender in the amount(s) provided
for in the preceding sentence.

                  (i) If any Non-Excluded Taxes are required to be withheld from
      any amounts payable by a Lender (the "First Lender") to another Lender
      (the "Other Lender") in connection with its participating interest in any
      Converted Loan, the Borrower, with respect to the relevant Loans made to
      it, shall be required to pay increased amounts to the Other Lender
      receiving such payments from the First Lender but only to the extent the
      Borrower would have been required under subsection 2.16 to pay such
      increased amounts if the Borrower had made such payments with respect to
      the participating interest directly to the Other Lender; provided,
      however, that the Borrower shall not be required to pay any such amounts
      to the Other Lender that is not organized under the laws of the United
      States of America or a state thereof if such Other Lender fails to comply
      with the requirements of paragraph (b) of subsection 2.16.

<PAGE>

                                                                              56

            (c) Each Non-Multicurrency Lender's obligation to purchase
participating interests pursuant to subsection 9.8(a) shall be absolute and
unconditional and shall not be affected by any circumstance, including, without
limitation, (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender or the Borrower may have against any Lender, the Borrower or
any other Person for any reason whatsoever; (B) the occurrence or continuance of
a Default or an Event of Default or the failure to satisfy any of the other
conditions specified in Section 4; (C) any adverse change in the condition
(financial or otherwise) of the Borrower; (D) any breach of this Agreement by
the Borrower or any other Lender; or (E) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

            (d) The Borrower consents to the purchases set forth in paragraphs
(a) and (b) of this subsection.

            9.9. Counterparts. (a) This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument. A set of the copies of this
Agreement signed by all the parties shall be lodged with the Borrower and the
Administrative Agent.

            (b) By its signature hereto, each Lender hereby agrees that this
Agreement shall become effective immediately upon (i) the execution and delivery
on June 18, 2004 by the Borrower and the Administrative Agent of this Agreement
and (ii) the satisfaction of the conditions set forth in paragraphs (b), (c),
(d), (e) and (f) of subsection 4.1. In the event that this Agreement has not
been duly executed and delivered by each Person listed on the signature pages
hereto (other than the Borrower and the Administrative Agent, with respect to
which the execution and delivery of this Agreement shall be a condition
precedent to its effectiveness) on or before the date upon which this Agreement
becomes effective in accordance with the immediately preceding sentence, this
Agreement shall nevertheless become effective with respect to those Persons who
have executed and delivered it on or before such effective date and those
Persons who have not executed and delivered it (such Persons, the "Non-Executing
Banks") shall be deemed not to be Lenders hereunder.

            (c) On the date of effectiveness of this Agreement, the Borrower may
(after consultation with the Administrative Agent) designate one or more Lenders
(the "Designated Lenders") to assume the Commitments which would have been held
by the Non-Executing Banks and, if the Designated Lenders agree to assume such
Commitments, (i) Schedules I and II shall be deemed to be amended to reflect
such increase in the U.S. Commitment and/or the Multicurrency Commitment of each
Designated Lender and the omission of each Non-Executing Bank as a Lender
hereunder and (ii) the U.S. Commitment and/or the Multicurrency Commitment of
each Designated Lender shall be deemed to be such increased amount for all
purposes hereunder.

            (d) Notwithstanding anything to the contrary contained herein, (i)
neither the U.S. Commitment nor the Multicurrency Commitment of a Lender shall
be increased (without the prior written consent of such Lender) as a result of
the failure of any other Person to execute and deliver this Agreement or
otherwise and (ii) in no event shall the aggregate Commitments of all Lenders
exceed $2,000,000,000.

<PAGE>

                                                                              57

            9.10. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

            9.11. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

            9.12. WAIVERS OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT
AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

            9.13. Confidentiality. Each of the Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its affiliates'
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent required by
any regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this subsection, to any Participant in, or
any prospective assignee of or prospective Participant in, any of its rights or
obligations under this Agreement, or any actual or proposed contractual
counterparty (or its advisors) to any securitization, hedge, or other derivative
transaction relating to the parties' obligations hereunder, (g) with the consent
of the Borrower or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this subsection or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than the Borrower. For the purposes of this Section,
"Information" means all information received from the Borrower relating to the
Borrower or its business, other than any such information that is available to
the Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrower; provided that, in the case of information received
from the Borrower after the date hereof, such information is clearly identified
at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this subsection shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

            9.14. USA PATRIOT Act. Each Lender hereby notifies the Borrower that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the "Act"), it is required to obtain,
verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and

<PAGE>

                                                                              58

other information that will allow such Lender to identify the Borrower in
accordance with the Act.

                    [Rest of page left intentionally blank.]

<PAGE>

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

                                                 DELPHI CORPORATION

                                                 By: ___________________________
                                                     Name:
                                                     Title:

                                                 Address: 5725 Delphi Drive
                                                          Troy, Michigan 48098

                                                 Taxpayer I.D. No:

<PAGE>

                                         JPMORGAN CHASE BANK, as
                                            Administrative Agent and as a Lender

                                         By: ___________________________________
                                             Name:
                                             Title:

<PAGE>

                                     CITIBANK, N.A., as Syndication Agent and as
                                       a Lender

                                     By: _______________________________________
                                         Name:
                                         Title:

<PAGE>

                                     BARCLAYS BANK PLC, as Documentation Agent
                                       and as a Lender

                                     By: _______________________________________
                                         Name:
                                         Title:

<PAGE>

                                     DEUTSCHE BANK SECURITIES INC., as
                                       Documentation Agent and as a Lender

                                     By: _______________________________________
                                         Name:
                                         Title:

<PAGE>

                                     HSBC BANK USA, as Documentation Agent and
                                       as a Lender

                                     By: _______________________________________
                                         Name:
                                         Title:

<PAGE>

                                        Signature page for the 364-Day Sixth
                                        Amended and Restated Competitive Advance
                                        and Revolving Credit Facility, dated as
                                        of June 18, 2004 among Delphi
                                        Corporation and the lenders party
                                        thereto

                                  ______________________________________________
                                  [Name of Lender]

                                  By: __________________________________________
                                      Name:
                                      Title:

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