Document:

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                           LOAN AND SECURITY AGREEMENT

                                 by and between

                    CONGRESS FINANCIAL CORPORATION (WESTERN)
                                    as Lender

                                       and

                        BEKINS WORLDWIDE SOLUTIONS, INC.,
                             BEKINS VAN LINES, LLC,
                          GEOLOGISTICS SERVICES, INC.,
                                       and
                           GEOLOGISTICS AMERICAS INC.,
                           collectively, as Borrowers

                              Dated: March 23, 2000

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                           LOAN AND SECURITY AGREEMENT

         This Loan and Security Agreement dated March 23, 2000 is entered into
by and between CONGRESS FINANCIAL CORPORATION (WESTERN), a California
corporation ("LENDER") and BEKINS WORLDWIDE SOLUTIONS, INC., a Delaware
corporation, formerly known as GeoLogistics Network Solutions, Inc. ("BWS"),
BEKINS VAN LINES, LLC, a Delaware limited liability company ("BVL"),
GEOLOGISTICS SERVICES, INC., a Delaware corporation ("GLS"), and GEOLOGISTICS
AMERICAS INC., a Delaware corporation ("GLA"), (BWS, BVL, GLS and GLA,
collectively referred to herein as "BORROWERS" and individually, a "BORROWER").

                              W I T N E S S E T H:

         WHEREAS, Borrowers have requested that Lender enter into certain
financing arrangements with each Borrower pursuant to which Lender may make
loans and provide other financial accommodations to each Borrower; and

         WHEREAS, BWS, BVL, GLS and GLA are wholly owned Subsidiaries of
GeoLogistics Corporation, a Delaware corporation ("GLC"), and Borrowers,
together with GLC, are inter-related entities which, collectively constitute an
integrated provider of logistics and transportation services; and

         WHEREAS, the directors of BWS, BVL, GLS and GLA view the entities as
sufficiently dependent upon each other and so inter-related that any advance
made by Lender hereunder to any of the constituent entities would benefit all of
the constituent entities as a result of their consolidated operations and
identity of interests; and

         WHEREAS, BWS, BVL, GLS and GLA have each requested that Lender treat
them as co-Borrowers hereunder, jointly and severally responsible for the
obligation hereunder of each other Borrower; and

         WHEREAS, Lender is willing to make such loans and provide such
financial accommodations on the terms and conditions set forth herein;

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

SECTION 1.        DEFINITIONS.

         All terms used herein related to the attachment, perfection, priority
or enforcement of the security interests granted hereby which are defined, or
used with a particular definition, in the California Commercial Code as in
effect on the date of this Agreement shall have the respective meanings given
therein unless otherwise defined in this Agreement. All references to the plural
herein shall also mean the singular and to the singular shall also mean the
plural. All references
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to a Borrower and Lender pursuant to the definitions set forth in the
recitals hereto, or to any other person herein, shall include their
respective successors and assigns. The words "hereof", "herein", "hereunder",
"this Agreement" and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not any particular provision of
this Agreement and as this Agreement now exists or may hereafter be amended,
modified, supplemented, extended, renewed, restated or replaced. An Event of
Default shall exist or continue or be continuing until such Event of Default
is waived in accordance with Section 11.3. Any accounting term used herein
unless otherwise defined in this Agreement shall have the meaning given to
such term in accordance with GAAP. For purposes of this Agreement, the
following terms shall have the respective meanings given to them below:

         1.1 "ACCOUNTS" shall mean all present and future rights of any Borrower
to payment for goods sold or leased or for services rendered, which are not
evidenced by instruments or chattel paper, and whether or not earned by
performance.

         1.2 "ADJUSTED EURODOLLAR RATE" shall mean, with respect to each
Interest Period for any Eurodollar Rate Loan, the rate per annum (rounded
upwards, if necessary, to the next one-sixteenth (1/16) of one (1%) percent)
determined by dividing (a) the Eurodollar Rate for such Interest Period by (b) a
percentage equal to: (i) one (1) minus (ii) the Reserve Percentage. For purposes
hereof, "RESERVE PERCENTAGE" shall mean the reserve percentage, expressed as a
decimal, prescribed by the Board of Governors of the Federal Reserve System for
determining the reserve requirement which is or would be applicable to deposits
of United States dollars in a non-United States or an international banking
office of Reference Bank used to fund a Eurodollar Rate Loan or any Eurodollar
Rate Loan made with the proceeds of such deposit, whether or not the Reference
Bank actually holds or has made any such deposits or loans. The Adjusted
Eurodollar Rate shall be adjusted on and as of the effective day of any change
in the Reserve Percentage.

         1.3 "ADJUSTED NET WORTH" shall mean as to any Person, at any time, in
accordance with GAAP, on a consolidated basis for such Person and its
Subsidiaries (if any), the amount equal to: (a) the difference between: (i) the
aggregate net book value of all assets (tangible or intangible) of such Person
and its Subsidiaries, calculating the book value of inventory for this purpose
on a first-in-first-out basis, after deducting from such book values all
appropriate reserves in accordance with GAAP (including all reserves for
doubtful receivables, obsolescence, depreciation and amortization) and (ii) the
aggregate amount of the indebtedness and other liabilities of such Person and
its subsidiaries (including tax and other proper accruals) PLUS (b) indebtedness
of such Person and its Subsidiaries which is subordinated in right of payment to
the full and final payment of all of the Obligations on terms and conditions
acceptable to Lender. For purposes only of calculating the Adjusted Net Worth of
GLC under Sections 10.1(n) hereof, the Senior Notes and any guaranty issued by
any Subsidiary of GLC as to the Senior Notes shall not constitute subordinated
indebtedness under clause (b) above. To the extent that any loans or advances
made by Borrowers, GL Canada or GL UK to GLC or any of its Subsidiaries are for
accounting purposes classified as reductions to Adjusted Net Worth, such
deductions shall be excluded for the purpose of calculating Adjusted Net Worth
of the Borrowers, GL Canada or GL UK under Section 10.1(o) hereof.

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         1.4 "AGENT/CONTRACTOR RECEIVABLES" shall mean any and all Accounts of
any Borrower which are to be or have been collected from the customer on behalf
of such Borrower by a Representative Agent or Contractor and have not yet been
remitted to any Borrower, and any and all advances made to Representative Agents
or Contractors for the purpose of financing expenses incurred by such
Representative Agents or Contractors in connection with the provision of
services to customers of any Borrower.

         1.5 "AVAILABILITY RESERVES" shall mean, as of any date of
determination, such amounts as Lender may from time to time establish and revise
in good faith reducing the amount of Revolving Loans and Letter of Credit
Accommodations which would otherwise be available to a Borrower under the
lending formula(s) provided for herein: (a) to reflect events, conditions,
contingencies or risks which, as reasonably determined by Lender in good faith,
do or may affect either (i) the Collateral or any other property which is
security for the Obligations or its value, (ii) in any materially adverse
respect, the assets, business or condition (financial or other) of such Borrower
or any Obligor or (iii) the security interests and other rights of Lender in the
Collateral (including the enforceability, perfection and priority thereof) or
(b) to reflect Lender's reasonable good faith belief that any collateral report
or financial information furnished by or on behalf of such Borrower or any
Obligor to Lender is or may have been incomplete, inaccurate or misleading in
any material respect or (c) to reflect any state of facts which Lender
reasonably determines in good faith constitutes an Event of Default or may, with
notice or passage of time or both, constitute an Event of Default. Without
limiting the generality of the foregoing, an Availability Reserve shall be
established by Lender from time to time in such amounts as Lender may reasonably
determine to reflect (a) that Dilution as of any date with respect to the
Accounts of all Borrowers for the immediately preceding twelve (12) month period
or for the immediately preceding three (3) month period (whichever percentage is
higher) exceeds five percent (5%), (b) any variances in the agings of accounts
receivable provided to Lender pursuant to Section 7.1 hereof, (c) any unapplied
cash which has not yet been applied to the Accounts, and (d) any pass through
receivables or collections for shipping charges and cost of goods owed to any
Borrower by the receiving party of such goods and owed by such Borrower to the
shipping party of such goods.

         1.6 "BC" shall mean The Bekins Company, a Delaware corporation.

         1.7 "BLOCKED ACCOUNT" shall have the meaning set forth in Section 6.3
hereof.

         1.8 "BURDALE" shall mean Burdale Financial Limited, a limited company
registered in England and Wales.

         1.9 "BUSINESS DAY" shall mean any day other than a Saturday, a Sunday,
or any other day on which commercial banks are authorized or required to close
under the laws of the State of New York, the State of California or the State of
North Carolina, or any day on which the Reference Bank and Lender are not open
for the transaction of business, except that if a determination of a Business
Day shall relate to any Eurodollar Rate Loans, the term Business Day shall also
exclude any day on which banks are closed for dealings in dollar deposits in the
London interbank market or other applicable Eurodollar Rate market.

         1.10 "BVL" shall have the meaning set forth in the introduction hereto.

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         1.11 "BWS" shall have the meaning set forth in the introduction hereto.

         1.12 "CANADIAN FACILITY" shall mean the credit facility in the maximum
amount of Fifteen Million Dollars ($15,000,000) (which may be adjusted from time
to time in accordance with the terms hereof and in the Canadian Loan Agreement)
provided by Congress (Canada) to GL Canada pursuant to the Canadian Loan
Agreement.

         1.13 "CANADIAN LETTER OF CREDIT ACCOMMODATIONS" shall mean the letters
of credit or other guaranties which are from time to time either (a) issued,
opened or provided by Congress (Canada) for the account of GL Canada or any
other obligor under the Canadian Loan Agreement or (b) with respect to which
Congress (Canada) has agreed to indemnify the issuer or guaranteed to the issuer
the performance by GL Canada of its obligations to such issuer.

         1.14 "CANADIAN LOAN AGREEMENT" shall mean that certain Loan Agreement
dated March 23, 2000 between Congress (Canada) and GL Canada, as the same now
exists or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced.

         1.15 "CAPITAL LEASE" shall mean, as applied to any Person, any lease of
(or any agreement conveying the right to use) any property (whether real,
personal or mixed) by such Person as lessee that, in accordance with GAAP, is
required to be reflected as a liability on the balance sheet of such Person.

         1.16 "CAPITAL STOCK" shall mean, with respect to any Person, any and
all shares, interests, participations or other equivalents (however designated)
of such Person's capital stock, partnership interests or limited liability
company interests at any time outstanding, and any and all rights, warrants or
options exchangeable for or convertible into such capital stock or other
interests (but excluding any debt security that is exchangeable for or
convertible into such capital stock).

         1.17 "CODE" shall mean the Internal Revenue Code of 1986, as the same
now exists or may from time to time hereafter be amended, modified, recodified
or supplemented, together with all rules, regulations and interpretations
thereunder or related thereto.

         1.18 "COLLATERAL" shall have the meaning set forth in Section 5 hereof.

         1.19 "CONGRESS (CANADA)" shall mean Congress Financial Corporation
(Canada), a corporation organized under the laws of Ontario, Canada.

         1.20 "CONTRACTOR" shall mean any owner/operator engaged in the
transportation of household goods or other general commodities as an independent
contractor who has entered into a contract (other than a Representative Agency
Agreement) with a Borrower for the purpose of providing moving and related
services to customers of such Borrower.

         1.21 "DILUTION" shall mean, with respect to all Borrowers for any
period, the ratio (expressed as a percentage) of (a) the aggregate amount of
reductions in the Accounts of all Borrowers for such period other than as a
result of payments in cash to (b) the aggregate amount of total sales of all
Borrowers for such period.

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         1.22 "DOLLAR" and "$" means dollars in the lawful currency of the
United States.

         1.23 "EBITDA" shall mean, as to any Person, with respect to any period,
an amount equal to: (a) the Net Income of such Person and its Subsidiaries for
such period on a consolidated basis determined in accordance with GAAP, PLUS (b)
depreciation, amortization and other non-cash charges (including, but not
limited to, imputed interest and deferred compensation) of such Person and its
Subsidiaries for such period (to the extent deducted in the computation of Net
Income), all in accordance with GAAP, PLUS (c) Interest Expense of such Person
and its Subsidiaries for such period (to the extent deducted in the computation
of Net Income), PLUS (d) the Provision for Taxes for such period (to the extent
deducted in the computation of Net Income), PLUS (e) all extraordinary losses
and unusual losses related to the restructuring of the business of such Person
and its Subsidiaries and costs associated with the refinancing transaction
contemplated by this Agreement.

         1.24 "ELIGIBLE ACCOUNTS" shall mean, with respect to any Borrower,
Accounts created by such Borrower which are and continue to be acceptable to
Lender based on the criteria set forth below. In general, Accounts shall be
Eligible Accounts if:

                  (a) such Accounts comply with the terms and conditions
contained in Section 7.2(b) of this Agreement;

                  (b) such Accounts do not arise from sales on consignment,
guaranteed sale, sale and return, sale on approval, or other terms under which
payment by the account debtor may be conditional or contingent;

                  (c) the account debtor with respect to such Accounts is
located in the United States of America or (if payable in U.S. dollars) Canada
or Puerto Rico unless if either: (i) the account debtor has delivered to such
Borrower an irrevocable letter of credit issued or confirmed by a bank
satisfactory to Lender and payable only in the United States of America and in
U.S. dollars, sufficient to cover such Account, in form and substance
satisfactory to Lender and, if required by Lender, the original of such letter
of credit has been delivered to Lender or Lender's agent and the issuer thereof
notified of the assignment of the proceeds of such letter of credit to Lender,
or (ii) such Account is subject to credit insurance payable to Lender issued by
an insurer and on terms and in an amount acceptable to Lender, or (iii) such
Account is otherwise acceptable in all respects to Lender (subject to such
lending formula with respect thereto as Lender may determine);

                  (d) such Accounts do not consist of progress billings, bill
and hold invoices or retainage invoices, except as to bill and hold invoices, if
Lender shall have received an agreement in writing from the account debtor, in
form and substance satisfactory to Lender, confirming the unconditional
obligation of the account debtor to take the goods or services related thereto
and pay such invoice;

                  (e) the account debtor with respect to such Accounts has not
asserted a counterclaim, cargo claim, defense or dispute and does not have, and
has not engaged in transactions which may reasonably be expected to give rise
to, any right of setoff against such Accounts (but the portion of the Accounts
of such account debtor in excess of the amount at any

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time and from time to time owed by such Borrower to such account debtor or
claimed owed by such account debtor may be deemed Eligible Accounts);

                  (f) there are no facts, events or occurrences which would
impair the validity or enforceability of or otherwise the legal right to collect
such Accounts or would give the account debtor of such Accounts the legal right
to reduce the amount payable or delay payment thereunder;

                  (g) such Accounts are subject to the first priority, valid and
perfected security interest of Lender and any goods giving rise thereto are not,
and were not at the time of the sale thereof, subject to any liens except those
permitted in this Agreement;

                  (h) neither the account debtor nor any officer or employee of
the account debtor with respect to such Accounts is an officer, employee or
agent of or affiliated with any Borrower directly or indirectly by virtue of
ownership, control, management or otherwise;

                  (i) the account debtors with respect to such Accounts are not
any foreign government;

                  (j) the account debtors with respect to such Accounts are not
the United States of America, a State, political subdivision, department, agency
or instrumentality thereof unless no more than Two Million Five Hundred Thousand
Dollars ($2,500,000) of the aggregate amount of Loans advanced against such
Accounts are outstanding or the Federal Assignment of Claims Act of 1940, as
amended or any similar State or local law, if applicable, has been complied with
in a manner satisfactory to Lender;

                  (k) such Accounts of a single account debtor do not constitute
more than ten percent (10%) of all otherwise Eligible Accounts (but the portion
of the Accounts not in excess of such percentage may be deemed Eligible
Accounts);

                  (l) such Accounts are not owed by an account debtor who has
Accounts unpaid more than ninety (90) days after the date of the original
invoice for them which constitute more than fifty percent (50%) of the total
Accounts of such account debtor;

                  (m) such Accounts are owed by an account debtor whose total
indebtedness to such Borrower does not exceed the credit limit with respect to
such account debtor as determined by Lender from time to time and communicated
in writing to the Borrowers prior to the date of determination of Eligible
Accounts (but the portion of the Accounts not in excess of such credit limit may
be deemed Eligible Accounts);

                  (n) such Accounts do not consist of Agent/Contractor
Receivables;

                  (o) such Accounts do not arise from the rendition of services
by a Person other than such Borrower or on behalf of such Borrower; and

                  (p) such Accounts are owed by account debtors deemed
creditworthy at all times by Lender, as determined by Lender.

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Any Accounts which are not Eligible Accounts shall nevertheless be part of the
Collateral.

         1.25 "ELIGIBLE BILLED ACCOUNTS" shall mean, with respect to any
Borrower, Eligible Accounts which arise from the actual and BONA FIDE rendition
of services by such Borrower in the ordinary course of its business which
services are completed in accordance with the terms and provisions contained in
any documents related thereto and for which invoices have been generated by
Borrower and billed to the account debtor thereof; PROVIDED THAT, no such
Eligible Account shall be deemed an Eligible Billed Account if such Account
remains unpaid more than ninety (90) days after the date of the original invoice
for it. Any Accounts which are not Eligible Billed Accounts shall nevertheless
be part of the Collateral.

         1.26 "ELIGIBLE UNBILLED ACCOUNTS" shall mean, with respect to any
Borrower, Eligible Accounts which arise from the actual and BONA FIDE rendition
of services by such Borrower in the ordinary course of its business which
services are completed in accordance with the terms and provisions contained in
any documents related thereto and for which invoices have not yet been generated
by such Borrower and billed to the account debtor thereof; PROVIDED THAT, no
such Eligible Account shall be deemed an Eligible Unbilled Account if such
Account remains unbilled more than thirty (30) days after the completion of the
services giving rise thereto. Any Accounts which are not Eligible Unbilled
Accounts shall nevertheless be part of the Collateral.

         1.27 "ENVIRONMENTAL LAWS" shall mean all federal, state, district,
local and foreign laws, rules, regulations, ordinances, and consent decrees
relating to health, safety, hazardous substances, pollution and environmental
matters, as now or at any time hereafter in effect, applicable to a Borrower's
business and facilities (whether or not owned by it), including laws relating to
emissions, discharges, releases or threatened releases of pollutants,
contamination, chemicals, or hazardous, toxic or dangerous substances, materials
or wastes into the environment (including, without limitation, ambient air,
surface water, ground water, land surface or subsurface strata) or otherwise
relating to the generation, manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of pollutants, contaminants,
chemicals, or hazardous, toxic or dangerous substances, materials or wastes.

         1.28 "EQUIPMENT" shall mean all of any Borrower's now owned and
hereafter acquired equipment, machinery, computers and computer hardware and
software (whether owned or licensed), vehicles, tools, furniture, fixtures, all
attachments, accessions and property now or hereafter affixed thereto or used in
connection therewith, and substitutions and replacements thereof, wherever
located.

         1.29 "ERISA" shall mean the United States Employee Retirement Income
Security Act of 1974, as the same now exists or may hereafter from time to time
be amended, modified, recodified or supplemented, together with all rules,
regulations and interpretations thereunder or related thereto.

         1.30 "ERISA AFFILIATE" shall mean any person required to be aggregated
with any Borrower or any of its affiliates under Sections 414(b), 414(c), 414(m)
or 414(o) of the Code.

         1.31 "EURODOLLAR RATE" shall mean with respect to the Interest Period
for a Eurodollar Rate Loan, the interest rate per annum equal to the arithmetic
average of the rates of interest per

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annum at which Reference Bank is offered deposits of United States dollars in
the London interbank market (or other Eurodollar Rate market selected
collectively by Borrowers and approved by Lender) on or about 9:00 a.m. (New
York time) two (2) Business Days prior to the commencement of such Interest
Period in amounts substantially equal to the principal amount of the
Eurodollar Rate Loans requested by and available to Borrowers in accordance
with this Agreement, with a maturity of comparable duration to the Interest
Period selected collectively by Borrowers.

         1.32 "EURODOLLAR RATE LOANS" shall mean any Loans or portion thereof on
which interest is payable based on the Adjusted Eurodollar Rate in accordance
with the terms hereof.

         1.33 "EVENT OF DEFAULT" shall mean the occurrence or existence of any
event or condition described in Section 10.1 hereof.

         1.34 "FINANCING AGREEMENTS" shall mean, collectively, this Agreement
and all notes, guarantees, security agreements and other agreements, documents
and instruments now or at any time hereafter executed and/or delivered by any
Borrower or any Obligor in connection with this Agreement, as the same now exist
or may hereafter be amended, modified, supplemented, extended, renewed, restated
or replaced.

         1.35 "GAAP" shall mean generally accepted accounting principles in the
United States of America as in effect from time to time as set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and the statements and pronouncements
of the Financial Accounting Standards Boards which are applicable to the
circumstances as of the date of determination consistently applied, except that,
for purposes of Sections 10.1(n) and 10.1(o) hereof, GAAP shall be determined on
the basis of such principles in effect on the date hereof and consistent with
those used in the preparation of the audited financial statements delivered to
Lender prior to the date hereof.

         1.36 "GIFL" shall mean GeoLogistics International Finance Ltd., a
limited company organized under the laws of Ireland.

         1.37 "GLA" shall have the meaning set forth in the introduction hereto.

         1.38 "GLC" shall have the meaning set forth in the recitals hereto.

         1.39 "GL CANADA" shall mean GeoLogistics, Co., an unlimited liability
company organized under the laws of Nova Scotia, Canada.

         1.40 "GLS" shall have the meaning set forth in the introduction hereto.

         1.41 "GL UK" shall mean GeoLogistics Limited, a limited company
registered in England and Wales.

         1.42 "HAZARDOUS MATERIALS" shall mean any hazardous, toxic or dangerous
substances, materials and wastes, including, without limitation, hydrocarbons
(including naturally occurring or man-made petroleum and hydrocarbons),
flammable explosives, asbestos, urea formaldehyde insulation, radioactive
materials, biological substances, polychlorinated biphenyls, pesticides,

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herbicides and any other kind and/or type of pollutants or contaminants
(including, without limitation, materials which include hazardous constituents),
sewage, sludge, industrial slag, solvents and/or any other similar substances,
materials, or wastes and including any other substances, materials or wastes
that are or become regulated under any Environmental Law (including, without
limitation any that are or become classified as hazardous or toxic under any
Environmental Law).

         1.43 "INFORMATION CERTIFICATE" shall mean, with respect to any
Borrower, the Information Certificate of such Borrower constituting a part of
EXHIBIT A hereto containing material information with respect to such Borrower,
its business and assets provided by or on behalf of such Borrower to Lender in
connection with the preparation of this Agreement and the other Financing
Agreements and the financing arrangements provided for herein.

         1.44 "INTEREST EXPENSE" shall mean, for any period, as to any Person
and its Subsidiaries, all of the following as determined in accordance with
GAAP, total interest expense, whether paid or accrued (including the interest
component of Capital Leases for such period), including, without limitation, all
bank fees, commissions, discounts and other fees and charges owed with respect
to letters of credit, banker's acceptances or similar instruments, but excluding
(a) amortization of discount and amortization of deferred financing fees and
closing costs paid in cash in connection with the transactions contemplated
hereby, (i) interest paid in property other than cash and (b) any other interest
expense not payable in cash.

         1.45 "INTEREST PERIOD" shall mean for any Eurodollar Rate Loan, a
period of approximately one (1), two (2), or three (3) months duration as
Borrowers may collectively elect, the exact duration to be determined in
accordance with the customary practice in the applicable Eurodollar Rate market;
PROVIDED, THAT, Borrowers may not elect an Interest Period which will end after
the last day of the then-current term of this Agreement.

         1.46 "INTEREST RATE" shall mean, as to Prime Rate Loans, a rate of
one-quarter of one percent (0.25%) per annum in excess of the Prime Rate and, as
to Eurodollar Rate Loans, a rate of two and three-quarters percent (2.75%) per
annum in excess of the Adjusted Eurodollar Rate (based on the Eurodollar Rate
applicable for the Interest Period collectively selected by Borrowers and
commencing (3) Business Days after the date of receipt by Lender of the request
of Borrowers for such Eurodollar Rate Loans in accordance with the terms hereof,
whether such rate is higher or lower than any rate previously quoted to any
Borrower); PROVIDED, THAT:

                  (a) effective as of the first day of the month after Lender's
receipt of the financial statements of GLC for any fiscal quarter of GLC
(commencing with the third fiscal quarter of GLC's fiscal year 2000) delivered
to Lender in accordance with Section 9.6 hereof, subject to paragraph (b) below,
the Interest Rate shall be increased or decreased, as the case may be, to the
rate equal to the applicable margin set forth below in excess of the Prime Rate
as to Prime Rate Loans and the applicable margin set forth below in excess of
the Adjusted Eurodollar Rate as to Eurodollar Rate Loans, based on the EBITDA of
GLC for the consecutive four fiscal quarter period ended such fiscal quarter
calculated based on such financial statements for such quarter as follows:

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

                APPLICABLE MARGIN AS TO PRIME       APPLICABLE MARGIN AS TO
                          RATE LOANS                  EURODOLLAR RATE LOANS                 EBITDA OF GLC
<S>                      <C>                              <C>                      <C>
------------------------------------------------------------------------------------------------------------------

                                                                                        Equal to or less than
     (i)                     0.5%                             3.0%                           $10,000,000
------------------------------------------------------------------------------------------------------------------

                                                                                    Greater than $10,000,000, but
                                                                                        equal to or less than
     (ii)                   0.25%                             2.75%                          $30,000,000
------------------------------------------------------------------------------------------------------------------

    (iii)                    -0-                              2.50%                   Greater than $30,000,000
------------------------------------------------------------------------------------------------------------------
</TABLE>

;PROVIDED, THAT the EBITDA amounts set forth above shall be reduced by that
portion of the EBITDA for the four (4) fiscal quarter period ended any such
fiscal quarter that is attributable to any Subsidiary of GLC that has been sold
or disposed of pursuant to a sale or disposition permitted by this Agreement,
the UK Loan Agreement or the Canadian Loan Agreement; and

                  (b) notwithstanding anything to the contrary contained herein,
the Interest Rate shall be two percent (2.0%) above the rate that would
otherwise prevail pursuant to this Section 1.46, at Lender's option, without
notice, (i) either (A) for the period from and after the date of termination or
non-renewal hereof until such time as Lender has received final payment and
satisfaction in full of all Obligations (notwithstanding entry of a judgment
against any Borrower), or (B) for the period from and after the date of the
occurrence of any Event of Default, and for so long as such Event of Default is
continuing, and (ii) on the Revolving Loans at any time outstanding in excess of
the amounts available to a Borrower under Section 2 (whether or not such
excess(es) arise or are made with or without Lender's knowledge and whether made
before or after an Event of Default).

         1.47 "INVENTORY" shall mean all of any Borrower's now owned and
hereafter existing or acquired raw materials, work in process, finished goods
and all other inventory of whatsoever kind or nature, wherever located.

         1.48 "L/C SUBLIMIT" shall mean, with reference to the Letter of Credit
Accommodations, the amount of Thirty Million Dollars ($30,000,000), less the
then outstanding amount of Canadian Letter of Credit Accommodations and UK
Letter of Credit Accommodations and all other commitments and obligations made
or incurred by Congress (Canada) and Burdale in connection therewith.

         1.49 "LETTER OF CREDIT ACCOMMODATIONS" shall mean the letters of credit
or other guaranties which are from time to time either (a) issued, opened or
provided by Lender for the account of any Borrower or any Obligor or (b) with
respect to which Lender has agreed to indemnify the issuer or guaranteed to the
issuer the performance by any Borrower of its obligations to such issuer.

         1.50 "LOANS" shall mean the Revolving Loans including, without
limitation, any Revolving Loans advanced for the purpose of providing cash
collateral to ING (U.S.) Capital,

                                       10
<PAGE>

LLC or LaSalle Bank National Association with respect to any outstanding
letters of credit issued by such entities.

         1.51 "MAXIMUM CREDIT" shall mean, with reference to the Revolving Loans
and the Letter of Credit Accommodations, the amount of Fifty Million Dollars
($50,000,000); PROVIDED HOWEVER, upon five (5) Business Days prior written
notice by Borrowers to Lender and so long as no Event of Default, or event which
with notice or passage of time or both would constitute an Event of Default,
exists or has occurred and is continuing, immediately prior to and after giving
effect to any of the following adjustments to the Maximum Credit, Borrowers may
collectively elect to (a) increase the Maximum Credit to Fifty Five Million
Dollars ($55,000,000), provided that the maximum amount of loans and other
financial accommodations available under the Canadian Facility is simultaneously
reduced to Ten Million Dollars ($10,000,000) or (b) decrease the Maximum Credit
to Forty Five Million Dollars ($45,000,000), provided that the maximum amount of
loans and other financial accommodations available under the Canadian Facility
is simultaneously increased to Twenty Million Dollars ($20,000,000) or (c) after
any such increase or decrease to the Maximum Credit, readjust the Maximum Credit
to Fifty Million Dollars ($50,000,000), provided that the maximum amount of
loans and other financial accommodations available under the Canadian Facility
is simultaneously readjusted to Fifteen Million Dollars ($15,000,000). Borrowers
may collectively elect to make no more than one (1) such adjustment to the
Maximum Credit in any three (3) month period.

         1.52 "NET AMOUNT OF ELIGIBLE BILLED ACCOUNTS" shall mean, with respect
to any Borrower, the gross amount of Eligible Billed Accounts of such Borrower
less (a) unpaid sales, excise or similar taxes included in the amount thereof
and (b) returns, discounts, claims, credits and allowances of any nature at any
time issued, owing, granted, outstanding, available or claimed with respect
thereto.

         1.53 "NET AMOUNT OF ELIGIBLE UNBILLED ACCOUNTS" shall mean, with
respect to any Borrower, the gross amount of Eligible Unbilled Accounts of such
Borrower less (a) unpaid sales, excise or similar taxes included in the amount
thereof and (b) returns, discounts, claims, credits and allowances of any nature
at any time issued, occurring, granted, outstanding, available or claimed with
respect thereto.

         1.54 "NET INCOME" shall mean, with respect to any Person, for any
period, the aggregate of the net income (loss) of such Person and its
Subsidiaries, on a consolidated basis, for such period (excluding to the extent
included therein any extraordinary or one-time gains or losses) after deducting
all charges which should be deducted before arriving at the net income (loss)
for such period and after deducting the Provision for Taxes for such period, all
as determined in accordance with GAAP, provided, that the effect of any change
in accounting principles adopted by such Person or its Subsidiaries after the
date hereof shall be excluded. For the purpose of this definition, net income
excludes any gain or loss, together with any related Provision for Taxes for
such gain or loss realized upon the sale or other disposition of any assets that
are not sold in the ordinary course of business (including, without limitation,
dispositions pursuant to sale and leaseback transactions), or of any Capital
Stock of such Person or a Subsidiary of such Person and any net income realized
as a result of changes in accounting principles or the application thereof to
such Person.

                                       11

<PAGE>

         1.55 "OBLIGATIONS" shall mean any and all Revolving Loans, the Letter
of Credit Accommodations and all other obligations, liabilities and indebtedness
of every kind, nature and description owing by any Borrower to Lender and/or its
affiliates, including principal, interest, charges, fees, costs and expenses,
however evidenced, whether as principal, surety, endorser, guarantor or
otherwise, whether arising under this Agreement or otherwise, whether now
existing or hereafter arising, whether arising before, during or after the
initial or any renewal term of this Agreement or after the commencement of any
case with respect to any Borrower under the United States Bankruptcy Code or any
similar statute (including, without limitation, the payment of interest and
other amounts which would accrue and become due but for the commencement of such
case), whether direct or indirect, absolute or contingent, joint or several, due
or not due, primary or secondary, liquidated or unliquidated, secured or
unsecured, and however acquired by Lender.

         1.56 "OBLIGOR" shall mean GLC or any other guarantor, endorser,
acceptor, surety or other person liable on or with respect to the Obligations or
who is the owner of any property which is security for the Obligations, other
than a Borrower.

         1.57 "PARTICIPANT" shall mean any person which at any time participates
with Lender in respect of the Loans, the Letter of Credit Accommodations or
other Obligations or any portion thereof.

         1.58 "PAYMENT ACCOUNT" shall have the meaning set forth in Section 6.3
hereof.

         1.59 "PERMITTED ACQUISITION" shall mean any transaction, or any series
of related transactions by which any Borrower directly or indirectly acquires a
Subsidiary or any going business or all or substantially all the assets of
another Person and which meets each of the following criteria: (a) the aggregate
consideration to be paid by such Borrower in connection with such transaction or
transactions, together with all other consideration paid by all Borrowers in
connection with any other Permitted Acquisition and by GL Canada and GL UK in
connection with any transaction, or any series of related transactions by which
GL Canada or GL UK, as the case may be, directly or indirectly has acquired a
Subsidiary or any going business or all or substantially all the assets of
another Person during the term of this Agreement, does not exceed Five Million
Dollars ($5,000,000); (b) no Event of Default exists or has occurred and is
continuing immediately prior to and after giving effect to such transaction or
transactions; and (c) Total Excess Availability is not less than Ten Million
Dollars ($10,000,000) after giving effect to such transaction or transactions.
Notwithstanding anything to the contrary set forth herein, Lender shall have no
obligation to include any Account acquired pursuant to a Permitted Acquisition
as an Eligible Account.

         1.60 "PERSON" or "PERSON" shall mean any individual, sole
proprietorship, partnership, corporation (including, without limitation, any
corporation which elects subchapter S status under the Code), limited liability
company, limited liability partnership, business trust, unincorporated
association, joint stock corporation, trust, joint venture or other entity or
any government or any agency or instrumentality or political subdivision
thereof.

                                       12
<PAGE>

         1.61 "PRIME RATE" shall mean the rate from time to time publicly
announced by First Union National Bank, or its successors, as its prime rate,
whether or not such announced rate is the best rate available at such bank.

         1.62 "PRIME RATE LOANS" shall mean any Loans or portion thereof on
which interest is payable based on the Prime Rate in accordance with the terms
thereof.

         1.63 "PROVISION FOR TAXES" shall mean, with respect to any Person, for
any period, an amount equal to all taxes imposed on or measured by net income,
whether Federal, State or local, and whether foreign or domestic, that are paid
or payable by such Person and its Subsidiaries in respect of such period on a
consolidated basis in accordance with GAAP.

         1.64 "RECORDS" shall mean all of any Borrower's present and future
books of account of every kind or nature, purchase and sale agreements,
invoices, ledger cards, bills of lading and other shipping evidence, statements,
correspondence, memoranda, credit files and other data relating to the
Collateral or any account debtor, together with the tapes, disks, diskettes and
other data and software storage media and devices, file cabinets or containers
in or on which the foregoing are stored (including any rights of such Borrower
with respect to the foregoing maintained with or by any other person).

         1.65 "REFERENCE BANK" shall mean First Union National Bank, or any
successor.

         1.66 "RENEWAL DATE" shall have the meaning set forth in Section 12.1(a)
hereof.

         1.67 "REPRESENTATIVE AGENCY AGREEMENT" shall mean any of the
agreements, substantially in the form provided to Lender by Borrowers, pursuant
to which a Person agrees to act as an agent of a Borrower for the purpose of
providing interstate or intrastate moving and related services within the United
States to customers of such Borrower.

         1.68 "REPRESENTATIVE AGENT" shall mean any freight forwarder, moving
and storage company, warehouseman or other Person who has entered into a
Representative Agency Agreement with a Borrower.

         1.69 "REVOLVING LOANS" shall mean the loans now or hereafter made by
Lender to or for the benefit of any Borrower on a revolving basis (involving
advances, repayments and readvances) as set forth in Section 2.1 hereof.

         1.70 "SENIOR NOTES" shall mean GLC's 9 3/4% Senior Notes due 2007.

         1.71 "SPONSOR LETTERS OF CREDIT" shall mean collectively that certain
irrevocable standby letter of credit issued on the date hereof by The Bank of
New York in favor of Lender for the account of OCM Principal Opportunities Fund,
LP, a Delaware limited partnership, in the original amount of Nine Million Seven
Hundred Fifty Thousand Dollars ($9,750,000), that certain irrevocable standby
letter of credit issued on the date hereof by Bankers Trust Company in favor of
Lender for the account of Alham, Inc., a Delaware corporation, in the original
amount of Three Million Two Hundred Fifty Thousand Dollars ($3,250,000) and any
other letters of credit issued from time to time in favor of Lender for the
account of the Sponsors by an issuer

                                       13
<PAGE>

acceptable to Lender, as the same now exist or may hereafter be amended,
modified, supplemented, extended, renewed, restated or replaced.

         1.72 "SPONSORS" shall mean Alham, Inc., a Delaware corporation, and OCM
Principal Opportunities Fund, LP, a Delaware limited partnership.

         1.73 "SUBSIDIARY" shall mean, with respect to any Person, any
corporation, limited or general partnership, limited liability company, trust,
association or other business entity of which more than fifty percent (50%) of
the voting stock or other voting equity interests (in the case of a business
entity other than a corporation) is owned or controlled directly or indirectly
by such Person, or one or more Subsidiaries of such Person, or a combination
thereof.

         1.74 "TOTAL DAILY EXCESS AVAILABILITY" shall mean, as of any date, the
US Daily Excess Availability as of such date, PLUS "Canadian Daily Excess
Availability" as of such date of GL Canada as defined and determined under the
Canadian Loan Agreement, PLUS "UK Daily Excess Availability" as of such date of
GL UK as defined and determined under the UK Loan Agreement.

         1.75 "TOTAL EXCESS AVAILABILITY" shall mean, as of any date, the US
Excess Availability as of such date, PLUS "Canadian Excess Availability" as of
such date of GL Canada as defined and determined under the Canadian Loan
Agreement, PLUS "UK Excess Availability" as of such date of GL UK as defined and
determined under the UK Loan Agreement.

         1.76 "UK FACILITY" shall mean the credit facility in the maximum amount
of Twenty Five Million Dollars ($25,000,000) provided by Burdale Financial
Limited to GL UK pursuant to the UK Loan Agreement.

         1.77 "UK LETTER OF CREDIT ACCOMMODATIONS" shall mean the letters of
credit or other guaranties which are from time to time either (a) issued, opened
or provided by Burdale for the account of GL UK or any other obligor under the
UK Loan Agreement or (b) with respect to which Burdale has agreed to indemnify
the issuer or guaranteed to the issuer the performance by GL UK of its
obligations to such issuer.

         1.78 "UK LOAN AGREEMENT" shall mean that certain Facility Agreement
dated as of March 23, 2000, between Burdale Financial Limited and GL UK, as the
same now exists or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced.

         1.79 "US DAILY EXCESS AVAILABILITY" shall mean the amount, as
determined by Lender, calculated at any time, equal to:

                  (a) the lesser of (i) the aggregate amount of the Revolving
Loans available to Borrowers as of such time (based on the applicable advance
rates set forth in Section 2.1(a) hereof and the limits set forth in Section
2.1(b) hereof), subject to the sublimits and Availability Reserves from time to
time established by Lender hereunder and (ii) the Maximum Credit, MINUS

                  (b) the amount of all then outstanding and unpaid Obligations.

                                       14
<PAGE>

Notwithstanding the foregoing, in calculating US Daily Excess Availability, the
limit set forth in Section 2.1(b)(i)(C) hereof on Revolving Loans available to
Borrowers shall not be included in such calculation.

         1.80 "US EXCESS AVAILABILITY" shall mean the amount, as determined by
Lender, calculated at any time, equal to:

                  (a) the lesser of (i) the aggregate amount of the Revolving
Loans available to Borrowers as of such time (based on the applicable advance
rates set forth in Section 2.1(a) hereof and the limits set forth in Section
2.1(b) hereof), subject to the sublimits and Availability Reserves from time to
time established by Lender hereunder and (ii) the Maximum Credit, MINUS

                  (b) the sum of (i) the amount of all then outstanding and
unpaid Obligations, (ii) the aggregate amount of all trade and operating lease
payables of all Borrowers which are more than sixty (60) days past due as of the
last day of the immediately preceding calendar month (except that for purposes
of Section 4.2(h), trade and operating lease payables which are more than sixty
(60) days past due shall be determined as of the date of determination) and
(iii) the aggregate amount of all capital lease and note payables of all
Borrowers which are more than fifteen (15) days past due as of the date of
determination.

SECTION 2.        CREDIT FACILITIES.

         2.1      REVOLVING LOANS.

                  (a) Subject to, and upon the terms and conditions contained
herein, Lender agrees to make Revolving Loans to Borrowers from time to time in
amounts requested by Borrowers up to the amount equal to the sum of:

                           (i) eighty-five percent (85%) of the aggregate Net
Amount of Eligible Billed Accounts of all Borrowers, PLUS

                           (ii) sixty-five percent (65%) of the aggregate Net
Amount of Eligible Unbilled Accounts of all Borrowers, PLUS

                           (iii) one-hundred percent (100%) of the then
aggregate amount available to be drawn by Lender under the Sponsor Letters of
Credit; MINUS

                           (iv) the then aggregate undrawn amounts of
outstanding Letter of Credit Accommodations as provided for in Section 2.2(c)
hereof; MINUS

                           (v) any Availability Reserves.

                  (b)      Except in Lender's discretion:

                           (i) the aggregate amount of the Loans, the Letter of
Credit Accommodations and other Obligations outstanding at any time shall not
exceed the least of (A) the Maximum Credit, or (B) the aggregate amount
available under the lending formulas set forth

                                       15
<PAGE>

in Section 2.1(a) hereof or (C) if (1) as of the last day of any calendar
week, the average daily Total Daily Excess Availability for the week then
ended is Five Million Dollars ($5,000,000) or less or (2) as of the last day
of any calendar week, average daily Total Daily Excess Availability for the
week then ended is more than Five Million Dollars ($5,000,000) but is Ten
Million Dollars ($10,000,000) or less and as of the last day of the
immediately following calendar week, average daily Total Daily Excess
Availability for the week then ended remains Ten Million Dollars
($10,000,000) or less, the aggregate amount collected in the Payment Account
as payments from account debtors on the Accounts or the accounts receivable
of any Subsidiary of GLC during the trailing five (5) week period ended on
the last day of such calendar week, PLUS the aggregate amount available to be
drawn by Lender under the Sponsor Letters of Credit as of such date; PROVIDED
that, such five (5) week period may be increased by Lender in its reasonable
discretion based on financial information provided by Borrowers to Lender
from time to time, or

                           (ii) the aggregate amount of the Loans outstanding
advanced against the Eligible Unbilled Accounts of all Borrowers shall not at
any time exceed Twenty Million Dollars ($20,000,000), or

                           (iii) subject to clause (i) of this Section 2.1(b),
the aggregate amount of the Loans, the Letter of Credit Accommodations and other
Obligations outstanding at any time for the account of any one Borrower shall
not exceed five percent (5%) in excess of the amount that would be available to
such Borrower if the lending formulas set forth in Section 2.1(a) hereof were
applied separately to each Borrower.

In the event that the outstanding amount of any component of the Loans and
Letter of Credit Accommodations, or the aggregate amount of the outstanding
Loans and Letter of Credit Accommodations and other Obligations, exceeds the
amounts available under the lending formulas set forth in Sections 2.1(a) and
2.1(b) hereof in the aggregate or for an individual Borrower as set forth in
this Section 2.1(b), the sublimit for Eligible Unbilled Accounts set forth in
this Section 2.1(b), the L/C Sublimit or the Maximum Credit, as applicable, such
event shall not limit, waive or otherwise affect any rights of Lender in that
circumstance or on any future occasions and Borrowers shall, upon demand by
Lender, which may be made at any time or from time to time, immediately repay to
Lender the entire amount of any such excess(es) for which payment is demanded
(other than such excess(es) which have been permitted by Lender in writing in
its discretion).

                  (c) Upon completion of an initial audit of each Borrower
conducted by Lender to Lender's reasonable satisfaction after the initial Loans
are made hereunder, if Total Excess Availability exceeds Fifteen Million Dollars
($15,000,000) as calculated based on the results of such initial audit, Lender
shall promptly take all actions reasonably necessary to reduce the aggregate
face amount of the Sponsor Letters of Credit by the amount of such excess or to
have replacement Sponsor Letters of Credit issued with identical terms in an
aggregate amount equal to the existing aggregate face amount less the amount of
such excess.

                  (d) If, (i) as of July 31, 2000 or as of the last day of any
calendar month thereafter, the average daily Total Excess Availability for the
calendar month then ended exceeds Ten Million Dollars ($10,000,000), (ii) Total
Excess Availability on each immediately preceding five (5) Business Days exceeds
Ten Million Dollars ($10,000,000) and (iii) Borrowers'

                                       16
<PAGE>

aggregate Net Income for the year to date period is at least eighty percent
(80%) of the projected aggregate Net Income of Borrowers as set forth in the
projections of Borrowers attached hereto as EXHIBIT B, Lender shall promptly
take all actions reasonably necessary to reduce the aggregate face amount of
the Sponsor Letters of Credit by an amount equal to the amount that the
average daily Excess Availability exceeds Ten Million Dollars ($10,000,000)
during such calendar month; PROVIDED that, (x) no such reduction shall reduce
the aggregate face amount of the Sponsor Letters of Credit by more than fifty
percent (50%) of the aggregate face amount immediately prior to such
reduction unless the aggregate face amount is less than One Million Dollars
($1,000,000) and (y) immediately prior to and after giving effect to any such
reduction, no Event of Default, or event which with notice or passage of time
or both would constitute an Event of Default, exists or has occurred and is
continuing. For purposes of this Section 2.1(d) only, Net Income of Borrowers
shall be determined prior to giving effect to any Provision for Taxes.
Borrowers may from time to time arrange for additional Sponsor Letters of
Credit to be issued to Lender.

         2.2      LETTER OF CREDIT ACCOMMODATIONS.

                  (a) Subject to, and upon the terms and conditions contained
herein, at the request of any Borrower, Lender agrees to provide or arrange for
Letter of Credit Accommodations for the account of such Borrower containing
terms and conditions acceptable to Lender and the issuer thereof. Any payments
made by Lender to any issuer thereof and/or related parties for any drawings or
payments under the Letter of Credit Accommodations shall constitute additional
Revolving Loans to such Borrower pursuant to this Section 2.

                  (b) In addition to any charges, fees or expenses charged by
any bank or issuer in connection with the Letter of Credit Accommodations,
Borrowers shall pay to Lender a letter of credit fee at a rate equal to one and
one-quarter percent (1.25%) per annum on the daily outstanding balance of the
Letter of Credit Accommodations for the immediately preceding month (or part
thereof), payable in arrears as of the first day of each succeeding month;
PROVIDED, HOWEVER, that such letter of credit fee shall be increased, at
Lender's option without notice, to three and one-quarter percent (3.25%) per
annum for the period on or after the date of termination or non-renewal of this
Agreement, or for the period from and after the date of the occurrence of an
Event of Default, and for so long as such Event of Default is continuing. Such
letter of credit fee shall be calculated on the basis of a three hundred sixty
(360) day year and actual days elapsed and the obligation of Borrowers to pay
such fee shall survive the termination or non-renewal of this Agreement.

                  (c) No Letter of Credit Accommodations shall be available to a
Borrower unless, on the date of the proposed issuance of any Letter of Credit
Accommodations, the Revolving Loans available to such Borrower (subject to the
Maximum Credit and any Availability Reserves) are equal to or greater than an
amount equal to one hundred percent (100%) of the face amount thereof and all
other commitments and obligations made or incurred by Lender with respect
thereto. Effective on the issuance of each Letter of Credit Accommodation, the
amount of Revolving Loans which might otherwise be available to Borrower shall
be reduced by the applicable amount set forth in this Section 2.2(c).

                                       17
<PAGE>

                  (d) Except in Lender's discretion, the amount of all
outstanding Letter of Credit Accommodations and all other commitments and
obligations made or incurred by Lender in connection therewith shall not at any
time exceed the L/C Sublimit. At any time an Event of Default exists or has
occurred and is continuing, upon Lender's request, each Borrower will either
furnish cash collateral to secure the reimbursement obligations to the issuer in
connection with any Letter of Credit Accommodations or furnish cash collateral
to Lender for the Letter of Credit Accommodations, and in either case, the
Revolving Loans otherwise available to such Borrower shall not be reduced as
provided in Section 2.2(c) to the extent of such cash collateral.

                  (e) Each Borrower shall indemnify and hold Lender harmless
from and against any and all losses, claims, damages, liabilities, costs and
expenses which Lender may suffer or incur in connection with any Letter of
Credit Accommodations and any documents, drafts or acceptances relating thereto,
including, but not limited to, any losses, claims, damages, liabilities, costs
and expenses due to any action taken by any issuer or correspondent with respect
to any Letter of Credit Accommodation. Each Borrower assumes all risks with
respect to the acts or omissions of the drawer under or beneficiary of any
Letter of Credit Accommodation and for such purposes the drawer or beneficiary
shall be deemed such Borrower's agent. Each Borrower assumes all risks for, and
agrees to pay, all foreign, Federal, State and local taxes, duties and levies
relating to any goods subject to any Letter of Credit Accommodations or any
documents, drafts or acceptances thereunder. Each Borrower hereby releases and
holds Lender harmless from and against any acts, waivers, errors, delays or
omissions, whether caused by such Borrower, by any issuer or correspondent or
otherwise, unless caused by the gross negligence or willful misconduct of
Lender, with respect to or relating to any Letter of Credit Accommodation. The
provisions of this Section 2.2(e) shall survive the payment of Obligations and
the termination or non-renewal of this Agreement.

                  (f) Nothing contained herein shall be deemed or construed to
grant any Borrower any right or authority to pledge the credit of Lender in any
manner. Lender shall have no liability of any kind with respect to any Letter of
Credit Accommodation provided by an issuer other than Lender unless Lender has
duly executed and delivered to such issuer the application or a guarantee or
indemnification in writing with respect to such Letter of Credit Accommodation.
Each Borrower shall be bound by any interpretation made in good faith by Lender,
or any other issuer or correspondent under or in connection with any Letter of
Credit Accommodation or any documents, drafts or acceptances thereunder,
notwithstanding that such interpretation may be inconsistent with any
instructions of such Borrower. Lender shall have the sole and exclusive right
and authority to, and no Borrower shall: (i) at any time an Event of Default
exists or has occurred and is continuing, (A) approve or resolve any questions
of non-compliance of documents, (B) give any instructions as to acceptance or
rejection of any documents or goods or (C) execute any and all applications for
steamship or airway guaranties, indemnities or delivery orders, and (ii) at all
times, (A) grant any extensions of the maturity of, time of payment for, or time
of presentation of, any drafts, acceptances, or documents, and (B) agree to any
amendments, renewals, extensions, modifications, changes or cancellations of any
of the terms or conditions of any of the applications, Letter of Credit
Accommodations, or documents, drafts or acceptances thereunder or any letters of
credit included in the Collateral. Lender may take such actions either in its
own name or in a Borrower's name.

                                       18
<PAGE>

SECTION 3.        INTEREST AND FEES.

         3.1      INTEREST.

                  (a) Each Borrower shall pay to Lender interest on the
outstanding principal amount of the non-contingent Obligations at the Interest
Rate. All interest accruing hereunder on and after the date of any Event of
Default or termination or non-renewal hereof shall be payable on demand.

                  (b) Borrowers may from time to time request that Prime Rate
Loans be converted to Eurodollar Rate Loans or that any existing Eurodollar Rate
Loans continue for an additional Interest Period. Such request from Borrowers
shall specify the amount of the Prime Rate Loans which will constitute
Eurodollar Rate Loans (subject to the limits set forth below) and the Interest
Period to be applicable to such Eurodollar Rate Loans. Subject to the terms and
conditions contained herein, three (3) Business Days after receipt by Lender of
such a request from Borrowers, such Prime Rate Loans shall be converted to
Eurodollar Rate Loans or such Eurodollar Rate Loans shall continue, as the case
may be, PROVIDED, THAT, (i) no Event of Default, or event which with notice or
passage of time or both would constitute an Event of Default exists or has
occurred and is continuing, (ii) no party hereto shall have sent any notice of
termination or non-renewal of this Agreement, (iii) each Borrower shall have
complied with such customary procedures as are established by Lender and
specified by Lender to Borrowers from time to time for requests by Borrowers for
Eurodollar Rate Loans, (iv) no more than four (4) Interest Periods may be in
effect at any one time, (v) the aggregate amount of the Eurodollar Rate Loans
must be in an amount not less than Three Million Five Hundred Thousand Dollars
($3,500,000) or an integral multiple of One Million Dollars ($1,000,000) in
excess thereof, (vi) the maximum amount of the Eurodollar Rate Loans at any time
requested by Borrowers shall not exceed the amount equal to ninety (90%) percent
of the lowest principal amount of the Loans which it is anticipated will be
outstanding during the applicable Interest Period, in each case as determined by
Lender (but with no obligation of Lender to make such Loans) and (vii) Lender
shall have determined that the Interest Period or Adjusted Eurodollar Rate is
available to Lender through the Reference Bank and can be readily determined as
of the date of the request for such Eurodollar Rate Loan by Borrowers. Any
request by any Borrower, if complied with by Lender, to convert Prime Rate Loans
to Eurodollar Rate Loans or to continue any existing Eurodollar Rate Loans shall
be irrevocable. Notwithstanding anything to the contrary contained herein,
Lender and Reference Bank shall not be required to purchase United States Dollar
deposits in the London interbank market or other applicable Eurodollar Rate
market to fund any Eurodollar Rate Loans, but the provisions hereof shall be
deemed to apply as if Lender and Reference Bank had purchased such deposits to
fund the Eurodollar Rate Loans.

                  (c) Any Eurodollar Rate Loans shall automatically convert to
Prime Rate Loans upon the last day of the applicable Interest Period, unless
Lender has received a request which complies with the terms and provisions of
this Agreement to continue such Eurodollar Rate Loan at least three (3) Business
Days prior to such last day in accordance with the terms hereof. Any Eurodollar
Rate Loans shall, at Lender's option, upon notice by Lender to Borrowers,
convert to Prime Rate Loans in the event that (i) an Event of Default or event
which, with the notice or passage of time, or both, would constitute an Event of
Default, shall exist and remain unwaived by Lender for a period of ten (10)
Business Days, (ii) this Agreement shall

                                       19
<PAGE>

terminate or not be renewed, or (iii) the aggregate principal amount of the
Prime Rate Loans which have previously been converted to Eurodollar Rate
Loans or existing Eurodollar Rate Loans continued, as the case may be, at the
beginning of an Interest Period shall at any time during such Interest Period
exceed either (A) the aggregate principal amount of the Loans then
outstanding, or (B) the Revolving Loans then available to Borrowers under
Section 2 hereof. Each Borrower shall pay to Lender, upon demand by Lender
(or Lender may, at its option, charge any loan account of Borrower) any
amounts required to compensate Lender, the Reference Bank or any participant
with Lender for any loss (including loss of anticipated profits), cost or
expense incurred by such person, as a result of the conversion of Eurodollar
Rate Loans to Prime Rate Loans pursuant to any of the foregoing.

                  (d) Interest shall be payable by each Borrower to Lender
monthly in arrears not later than the first day of each calendar month and shall
be calculated on the basis of a three hundred sixty (360) day year and actual
days elapsed. The interest rate on non-contingent Obligations (other than
Eurodollar Rate Loans) shall increase or decrease by an amount equal to each
increase or decrease in the Prime Rate effective on the first day of the month
after any change in such Prime Rate is announced based on the Prime Rate in
effect on the last day of the month in which any such change occurs. In no event
shall charges constituting interest payable by any Borrower to Lender exceed the
maximum amount or the rate permitted under any applicable law or regulation, and
if any such part or provision of this Agreement is in contravention of any such
law or regulation, such part or provision shall be deemed amended to conform
thereto.

         3.2 CLOSING AND SYNDICATION FEE. Borrowers shall pay to Lender as a
closing and syndication fee for the transactions contemplated hereunder the
amount of Three Hundred Seventy Five Thousand Dollars ($375,000), which fee
shall be fully earned as of and payable on the date hereof.

         3.3 LOAN SERVICING FEE. Borrowers shall pay to Lender a monthly loan
servicing fee in an aggregate amount equal to Three Thousand Dollars ($3,000),
plus out-of-pocket costs and expenses, in respect of Lender's services for each
month (or part thereof) while this Agreement remains in effect and for so long
thereafter as any of the Obligations are outstanding, which fee shall be fully
earned as of and payable in advance on the date hereof and on the first day of
each month hereafter.

         3.4 UNUSED LINE FEE. Borrowers shall pay to Lender monthly an unused
line fee equal to a rate equal to three-eighths of one percent (.375%) per annum
calculated upon the amount by which the Maximum Credit exceeds the average daily
principal balance of the outstanding Revolving Loans and Letter of Credit
Accommodations for all Borrowers and the during the immediately preceding month
while this Agreement is in effect and for so long thereafter as any of the
Obligations are outstanding, which fee shall be payable on the first day of each
month in arrears. Such unused line fee shall be allocated among Borrowers as
determined by Lender and payable by Borrowers in accordance with such
allocation.

                                       20
<PAGE>

         3.5      COMPENSATION ADJUSTMENT.

                  (a) If after the date of this Agreement the introduction of,
or any change in, any law or any governmental rule, regulation, policy,
guideline or directive (whether or not having the force of law), or any
interpretation thereof, or compliance by Lender or any Participant therewith:

                           (i) subjects Lender to any tax, duty, charge or
withholding on or from payments due from any Borrower (excluding franchise taxes
imposed upon, and taxation of the overall net income of, Lender or any
Participant), or changes the basis of taxation of payments, in either case in
respect of amounts due it hereunder, or

                           (ii) imposes or increases or deems applicable any
reserve requirement or other reserve, assessment, insurance charge, special
deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by Lender or any Participant (other than any
reserves included in the determination of the Eurodollar Rate), or

                           (iii) imposes any other condition the result of which
is to increase the cost to Lender or any Participant of making, funding or
maintaining the Loans or Letter of Credit Accommodations or reduces any amount
receivable by Lender or any Participant in connection with the Loans or Letter
of Credit Accommodations, or requires Lender or any Participant to make payment
calculated by references to the amount of loans held or interest received by it,
by an amount deemed material by Lender or any Participant, or

                           (iv) imposes or increases any capital requirement or
affects the amount of capital required or expected to be maintained by Lender or
any Participant or any corporation controlling Lender or any Participant, and
Lender or any Participant determines that such imposition or increase in capital
requirements or increase in the amount of capital expected to be maintained is
based upon the existence of this Agreement or the Loans or Letter of Credit
Accommodations hereunder, all of which may be determined by Lender's reasonable
allocation of the aggregate of its impositions or increases in capital required
or expected to be maintained, and the result of any of the foregoing is to
increase the cost to Lender or any Participant of making, renewing or
maintaining the Loans or Letter of Credit Accommodations, or to reduce the rate
of return to Lender or any Participant on the Loans or Letter of Credit
Accommodations, then upon demand by Lender, Borrowers shall pay to Lender, and
continue to make periodic payments to Lender or any Participant, such additional
amounts as may be necessary to compensate Lender or any Participant for any such
additional cost incurred or reduced rate of return realized.

                  (b) A certificate of Lender claiming entitlement to
compensation as set forth above will be conclusive in the absence of manifest
error. Such certificate will set forth the nature of the occurrence giving rise
to such compensation, the additional amount or amounts to be paid and the
compensation and the method by which such amounts were determined. Each demand
for compensation under this Section 3.5 shall be given within ninety (90) days
of Lender's first learning of the basis for such compensation and its ability to
calculate the amount of such compensation. In determining any additional amounts
due from any Borrower under this Section 3.5, Lender shall act reasonably and in
good faith and will, to the extent that the

                                       21
<PAGE>

increased costs, reductions, or amounts received or receivable relate to the
Lender's or a Participant's loans or commitments generally and are not
specifically attributable to the Loans and commitments hereunder, use
averaging and attribution methods which are reasonable and equitable and
which cover all loans and commitments under this Agreement by the Lender or
such Participant, as the case may be, whether or not the loan documentation
for such other loans and commitments permits the Lender or such Participant
to receive compensation costs of the type described in this Section 3.5.

         3.6      CHANGES IN LAWS AND INCREASED COSTS OF LOANS.

                  (a) Notwithstanding anything to the contrary contained herein,
all Eurodollar Rate Loans shall, upon notice by Lender to Borrowers, convert to
Prime Rate Loans in the event that (i) any change in applicable law or
regulation (or the interpretation or administration thereof) shall either (A)
make it unlawful for Lender, Reference Bank or any participant to make or
maintain Eurodollar Rate Loans or to comply with the terms hereof in connection
with the Eurodollar Rate Loans, or (B) shall result in the increase in the costs
to Lender, Reference Bank or any participant of making or maintaining any
Eurodollar Rate Loans by an amount deemed by Lender to be material, or (C)
reduce the amounts received or receivable by Lender in respect thereof, by an
amount deemed by Lender to be material or (ii) the cost to Lender, Reference
Bank or any participant of making or maintaining any Eurodollar Rate Loans shall
otherwise increase by an amount deemed by Lender to be material. Such conversion
shall occur at the end of the applicable Interest Period for each such
Eurodollar Rate Loan or, if it is unlawful for Lender to maintain any such Loan
until such date, on the latest date on which it remains lawful for Lender to
maintain such Loan. Borrowers shall pay to Lender, upon demand by Lender (or
Lender may, at its option, charge any loan account of any Borrower) any amounts
required to compensate Lender, the Reference Bank or any participant with Lender
for any loss (including loss of anticipated profits), cost or expense incurred
by such person as a result of any such conversion, including, without
limitation, any such loss, cost or expense incurred by reason of the liquidation
or reemployment of deposits or other funds acquired by such person to make or
maintain the Eurodollar Rate Loans or any portion thereof as a result of any
payment of principal of any Eurodollar Rate Loan made other than on the last day
of the Interest Period for that Loan. A certificate of Lender setting forth the
basis for the determination of such amount necessary to compensate Lender as
aforesaid shall be delivered to Borrowers and shall be conclusive, absent
manifest error.

                  (b) If any payments or prepayments in respect of the
Eurodollar Rate Loans are received by Lender other than on the last day of the
applicable Interest Period (whether pursuant to acceleration, upon maturity or
otherwise), including any payments pursuant to the application of collections
under Section 6.3 or any other payments made with the proceeds of Collateral,
Borrowers shall pay to Lender upon demand by Lender (or Lender may, at its
option, charge any loan account of any Borrower) any amounts required to
compensate Lender, the Reference Bank or any participant with Lender for any
additional loss, cost or expense incurred by such person as a result of such
prepayment or payment, including, without limitation, any loss, cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such person to make or maintain such Eurodollar Rate Loans or any
portion thereof.

                                       22
<PAGE>

         3.7 DUPLICATION. All amounts determined under any provision of Section
3.5 or 3.6 shall be without duplication with any amounts determined under any
other provision of those sections.

SECTION 4.        CONDITIONS PRECEDENT.

         4.1 CONDITIONS PRECEDENT TO INITIAL LOANS AND THE LETTER OF CREDIT
ACCOMMODATIONS. Each of the following is a condition precedent to Lender making
the initial Loans and providing the initial Letter of Credit Accommodations
hereunder:

                  (a) Lender shall have received, in form and substance
satisfactory to Lender, all releases, terminations and such other documents as
Lender may request to evidence and effectuate the termination of any interest in
and to any assets and properties of any Borrower, duly authorized, executed and
delivered by it or each of them, including, but not limited to, UCC termination
statements for all UCC financing statements and Lender shall have satisfied
itself that it has valid, perfected and first priority security interests in and
liens upon the Collateral and any other property which is intended as security
for the Obligations or the liability of any Obligor in respect thereto, subject
only to the security interests and liens permitted herein or in the other
Financing Agreements;

                  (b) all requisite corporate action and proceedings in
connection with this Agreement and the other Financing Agreements shall be
satisfactory in form and substance to Lender, and Lender shall have received all
information and copies of all documents, including, without limitation, records
of requisite corporate action and proceedings which Lender may have requested in
connection therewith, such documents where requested by Lender or its counsel to
be certified by appropriate corporate officers or governmental authorities;

                  (c) no material adverse change shall have occurred in the
assets, business or prospects of any Borrower since the date of Lender's latest
field examination and no change or event shall have occurred which would impair
the ability of any Borrower or any Obligor to perform its obligations hereunder
or under any of the other Financing Agreements to which it is a party or of
Lender to enforce the Obligations or realize upon the Collateral;

                  (d) Lender shall have completed a field review of the Records
and of such other financial information, projections, budgets, business plans,
cash flows as Lender shall reasonably request from time to time, including, but
not limited to, current agings of receivables, rollforwards of Accounts through
the date of closing and availability projections for Borrowers' fiscal year
2000, prepared on a monthly basis, together with supporting documentation, the
results of which shall be satisfactory to Lender;

                  (e) Lender shall have received, in form and substance
satisfactory to Lender, all consents, waivers, acknowledgments and other
agreements from third persons which Lender may deem necessary or desirable in
order to permit, protect and perfect its security interests in and liens upon
the Collateral or to effectuate the provisions or purposes of this Agreement and
the other Financing Agreements, including, without limitation, acknowledgments
by lessors, mortgagees and warehousemen of Lender's security interests in the
Collateral, waivers by such persons of any security interests, liens or other
claims by such persons to the Collateral and

                                       23
<PAGE>

agreements permitting Lender access to, and the right to remain on, the
premises to exercise its rights and remedies and otherwise deal with the
Collateral;

                  (f) Lender shall have received evidence of insurance and loss
payee endorsements required hereunder and under the other Financing Agreements,
in form and substance satisfactory to Lender, and certificates of insurance
policies and/or endorsements naming Lender as loss payee;

                  (g) Lender shall have received, in form and substance
satisfactory to Lender, such opinion letters of counsel to each Borrower and GLC
with respect to the Financing Agreements and such other matters as Lender may
request;

                  (h) the Total Excess Availability as determined by Lender as
of the date hereof LESS the aggregate amount of all book overdrafts of any
Borrower, GL Canada and GL UK shall be not less than an amount that is
satisfactory to Lender after giving effect to the initial Loans made or to be
made hereunder and the payment of all fees and expenses payable upon the
consummation of the initial transactions contemplated by this Agreement;

                  (i) Lender shall have received, in form and substance
satisfactory to Lender and its counsel, the assignment of all of all Borrowers'
rights in registered patents, trademarks, service marks and copyrights, as
Collateral hereunder, on Lender's standard forms of Collateral Assignments;

                  (j) Lender shall have received, in form and substance
satisfactory to Lender, a continuing guarantee by GLC and BC of the payment of
all Obligations and any security agreements, pledge agreements, hypothecs,
mortgages and any other documents or instruments evidencing the security
interests of Lender on the assets of GLC as Lender may require, including,
without limitation, a pledge of all the issued and outstanding capital stock of
LIW Holdings Corp., a Delaware corporation, and the collateral assignment of all
of BC's rights in registered patents, trademarks, service marks and copyrights,
on Lender's standard forms of Collateral Assignments;

                  (k) Lender shall have received evidence, in form and substance
satisfactory to Lender, that the initial loans under the Canadian Facility and
the UK Facility will be advanced concurrently with or immediately upon the
making of the initial Loans hereunder;

                  (l) Lender shall have received the Sponsor Letters of Credit
and a participation and subordination agreement duly executed by each of the
Sponsors with respect to Borrowers' reimbursement obligations in connection with
the Sponsor Letters of Credit, each in form and substance satisfactory to
Lender;

                  (m) Lender shall have received, in form and substance
satisfactory to Lender, executed copies of Blocked Account agreements, pursuant
to Section 6.3(a) hereof, among Lender, each Borrower and Harris Bank; and

                  (n) the other Financing Agreements and all instruments and
documents hereunder and thereunder shall have been duly executed and delivered
to Lender, in form and substance satisfactory to Lender.

                                       24
<PAGE>

         4.2 CONDITIONS PRECEDENT TO ALL LOANS AND LETTER OF CREDIT
ACCOMMODATIONS. Each of the following is an additional condition precedent to
Lender making Loans and/or providing Letter of Credit Accommodations to any
Borrower, including the initial Loans and Letter of Credit Accommodations and
any future Loans and Letter of Credit Accommodations:

                  (a) all representations and warranties contained herein and in
the other Financing Agreements shall be true and correct in all material
respects with the same effect as though such representations and warranties had
been made on and as of the date of the making of each such Loan or providing
each such Letter of Credit Accommodation and after giving effect thereto; and

                  (b) no Event of Default and no event or condition which, with
notice or passage of time or both, would constitute an Event of Default, shall
exist or have occurred and be continuing on and as of the date of the making of
such Loan or providing each such Letter of Credit Accommodation and after giving
effect thereto.

SECTION 5. GRANT OF SECURITY INTEREST.

         To secure payment and performance of all Obligations, each Borrower
hereby grants to Lender a continuing security interest in, a lien upon, and a
right of set off against, and hereby assigns to Lender as security, the
following property and interests in property of such Borrower, whether now owned
or hereafter acquired or existing, and wherever located (collectively, the
"COLLATERAL"):

         5.1 all Accounts and other indebtedness owed to such Borrower;

         5.2 all present and future contract rights, general intangibles
(including, but not limited to, tax and duty refunds, registered and
unregistered patents, trademarks, service marks, copyrights, trade names,
applications for the foregoing, trade secrets, goodwill, processes, drawings,
blueprints, customer lists, licenses, whether as licensor or licensee, choses in
action and other claims and existing and future leasehold interests in
equipment, real estate and fixtures), chattel paper, documents, instruments,
securities, investment property, letters of credit, proceeds of letters of
credit, bankers' acceptances and guaranties;

         5.3 all present and future monies, securities, credit balances,
deposits, deposit accounts and other property of such Borrower now or hereafter
held or received by or in transit to Lender or its affiliates or at any other
depository or other institution from or for the account of such Borrower,
whether for safekeeping, pledge, custody, transmission, collection or otherwise,
and all present and future liens, security interests, rights, remedies, title
and interest in, to and in respect of Accounts and other Collateral, including,
without limitation, (a) rights and remedies under or relating to guaranties,
contracts of suretyship, letters of credit and credit and other insurance
related to the Collateral, (b) rights of stoppage in transit, replevin,
repossession, reclamation and other rights and remedies of an unpaid vendor,
lienor or secured party, (c) goods described in invoices, documents, contracts
or instruments with respect to, or otherwise representing or evidencing,
Accounts or other Collateral, including, without limitation, returned,
repossessed and reclaimed goods, and (d) deposits by and property of account
debtors or other persons securing the obligations of account debtors;

                                       25
<PAGE>

         5.4      all Inventory;

         5.5      all Equipment;

         5.6      all Records; and

         5.7 all products and proceeds of the foregoing, in any form, including,
without limitation, insurance proceeds and any claims against third parties for
loss or damage to or destruction of any or all of the foregoing.

SECTION 6.        COLLECTION AND ADMINISTRATION.

         6.1 BORROWERS' LOAN ACCOUNT. Lender shall maintain one or more loan
account(s) on its books in which shall be recorded (a) all Loans, all Letter
of Credit Accommodations and all other Obligations and the Collateral, (b)
all payments made by or on behalf of a Borrower and (c) all other appropriate
debits and credits as provided in this Agreement, including, without
limitation, fees, charges, costs, expenses and interest. All entries in the
loan account(s) shall be made in accordance with Lender's customary practices
as in effect from time to time.

         6.2 STATEMENTS. Lender shall render to Borrowers each month a statement
setting forth the balance in each Borrower's loan account(s) maintained by
Lender for Borrowers pursuant to the provisions of this Agreement, including
principal, interest, fees, costs and expenses. Each such statement shall be
subject to subsequent adjustment by Lender but shall, absent manifest errors or
omissions, be considered correct and deemed accepted by each Borrower and
conclusively binding upon each Borrower as an account stated except to the
extent that Lender receives a written notice from Borrowers of any specific
exceptions of Borrowers thereto within thirty (30) days after the date such
statement has been mailed by Lender. Until such time as Lender shall have
rendered to Borrowers a written statement as provided above, the balance in any
Borrower's loan account(s) shall be presumptive evidence of the amounts due and
owing to Lender by such Borrower.

         6.3 COLLECTION OF ACCOUNTS.

                  (a) Each Borrower shall establish and maintain, at its
expense, a blocked account or lockboxes and related blocked accounts (in either
case, each a "BLOCKED ACCOUNT" and collectively the "BLOCKED ACCOUNTS"), as
Lender may specify, with such bank or banks as are acceptable to Lender into
which such Borrower shall promptly, and any other Subsidiary of GLC may, deposit
and direct its account debtors to directly remit all payments on Accounts and
all payments constituting proceeds of Inventory or other Collateral in the
identical form in which such payments are made, whether by cash, check or other
manner. Each bank at which a Blocked Account is established shall enter into an
agreement, in form and substance satisfactory to Lender, providing (unless
otherwise agreed to by Lender) that all items received or deposited in such
Blocked Account (other than the proceeds of accounts receivable or other
property of any Subsidiary of GLC that is not a Borrower or Obligor) are the
Collateral of Lender, that the depository bank has no lien upon, or right to
setoff against, the Blocked Accounts, the items received for deposit therein, or
the funds from time to time on deposit therein and that the depository bank will
wire, or otherwise transfer, in immediately available funds, on a daily basis,

                                       26
<PAGE>

all funds received or deposited into such Blocked Account to such bank account
of Lender as Lender may from time to time designate for such purpose (the
"PAYMENT ACCOUNT"). Each Borrower agrees that all amounts deposited in the
Blocked Accounts or other funds received and collected by Lender, whether as
proceeds of Inventory, the collection of Accounts or other Collateral or
otherwise (other than the proceeds of accounts receivable or other property of
any Subsidiary of GLC that is not a Borrower or Obligor) shall be the Collateral
of Lender.

                  (b) For purposes of calculating interest on the
Obligations, such payments or other funds received will be applied
(conditional upon final collection) to the Obligations one (1) Business Day
following the date of receipt of immediately available funds by Lender in the
Payment Account. For purposes of calculating the amount of the Revolving
Loans available to a Borrower such payments will be applied (conditional upon
final collection) to the Obligations on the Business Day of receipt by Lender
in the Payment Account, if such payments are received within sufficient time
(in accordance with Lender's usual and customary practices as in effect from
time to time) to credit such Borrower's loan account on such day, and if not,
then on the next Business Day. If no monetary obligations by any Borrower are
outstanding on any day, but monetary obligations under the UK Facility or the
Canadian Facility are outstanding, or any Letter of Credit Accommodations,
Canadian Letter of Credit Accommodations or UK Letter of Credit
Accommodations are outstanding on such day, Borrowers shall pay interest at
the applicable rate set forth in Section 3.1 on the amount of any payments or
other funds that are received by Lender (irrespective of the characterization
of whether receipts are owned by Lender or any Borrower) for such day. If no
monetary obligations under this Agreement, the UK Facility or the Canadian
Facility are outstanding and no Letter of Credit Accommodations, Canadian
Letter of Credit Accommodations or UK Letter of Credit Accommodations are
outstanding on any day, no interest shall be charged to Borrowers on the
amount of any payments or other funds that are received by Lender for such
day.

                  (c) Each Borrower and all of its affiliates, Subsidiaries,
shareholders, directors, employees or agents shall, holding the same in trust
for Lender, receive, as the property of Lender, any monies, cash, checks, notes,
drafts or any other payment relating to and/or proceeds of Accounts or from
sales of Inventory or other Collateral which come into their possession or under
their control and immediately upon receipt thereof, shall deposit or cause the
same to be deposited in the Blocked Accounts, or remit the same or cause the
same to be remitted, in kind, to Lender. In no event shall any such monies,
checks, notes, drafts or other payments be commingled with any Borrower's own
funds. Each Borrower agrees to reimburse Lender on demand for any amounts owed
or paid to any bank at which a Blocked Account is established or any other bank
or person involved in the transfer of funds to or from the Blocked Accounts
arising out of Lender's payments to or indemnification of such bank or person,
unless such payment or indemnification obligation of Lender was a result of
Lender's gross negligence or willful misconduct. The obligation of each Borrower
to reimburse Lender for such amounts pursuant to this Section 6.3 shall survive
the termination or non-renewal of this Agreement.

         6.4 PAYMENTS. All Obligations shall be payable to the Payment Account
as provided in Section 6.3 or such other place in the United States as Lender
may designate from time to time. Lender may apply payments received or collected
from any Borrower or for the account of any Borrower (including, without
limitation, the monetary proceeds of collections or of realization upon any
Collateral) to such of the Obligations, whether or not then due, in such order

                                       27
<PAGE>

and manner as Lender determines. At Lender's option, all principal, interest,
fees, costs, expenses and other charges provided for in this Agreement or the
other Financing Agreements may be charged directly to the loan account(s) of any
Borrower. Each Borrower shall make all payments to Lender on the Obligations
free and clear of, and without deduction or withholding for or on account of,
any setoff, counterclaim, defense, duties, taxes, levies, imposts, fees,
deductions, withholding, restrictions or conditions of any kind. If after
receipt of any payment of, or proceeds of Collateral applied to the payment of,
any of the Obligations, Lender is required to surrender or return such payment
or proceeds to any Person for any reason, then the Obligations intended to be
satisfied by such payment or proceeds shall be reinstated and continue and this
Agreement shall continue in full force and effect as if such payment or proceeds
had not been received by Lender. Each Borrower shall be liable to pay to Lender,
and does hereby indemnify and hold Lender harmless for the amount of any
payments or proceeds surrendered or returned. This Section 6.4 shall remain
effective notwithstanding any contrary action which may be taken by Lender in
reliance upon such payment or proceeds. This Section 6.4 shall survive the
payment of the Obligations and the termination or non-renewal of this Agreement.

         6.5 AUTHORIZATION TO MAKE LOANS. Lender is authorized to make the Loans
and provide the Letter of Credit Accommodations based upon telephonic or other
instructions received from anyone purporting to be an officer of a Borrower or
other authorized person or, at the discretion of Lender, if such Loans are
necessary to satisfy any Obligations. All requests for Loans or Letter of Credit
Accommodations hereunder shall specify the date on which the requested advance
is to be made or Letter of Credit Accommodations established (which day shall be
a Business Day) and the amount of the requested Loan. Requests received after
10:30 a.m. (Los Angeles time) on any day shall be deemed to have been made as of
the opening of business on the immediately following Business Day. All Loans and
Letter of Credit Accommodations under this Agreement shall be conclusively
presumed to have been made to, and at the request of and for the benefit of,
Borrowers when deposited to the credit of any Borrower or otherwise disbursed or
established in accordance with the instructions of any Borrower or in accordance
with the terms and conditions of this Agreement.

         6.6 USE OF PROCEEDS. Each Borrower shall use the initial proceeds of
the Loans provided by Lender to any Borrower hereunder only for: (a) payments to
each of the persons listed in the disbursement direction letter furnished by
Borrowers to Lender on or about the date hereof and (b) costs, expenses and fees
in connection with the preparation, negotiation, execution and delivery of this
Agreement and the other Financing Agreements. All other Loans made or Letter of
Credit Accommodations provided by Lender to any Borrower pursuant to the
provisions hereof shall be used by each Borrower only for general operating,
working capital and other proper corporate purposes of such Borrower not
otherwise prohibited by the terms hereof. None of the proceeds will be used,
directly or indirectly, for the purpose of purchasing or carrying any margin
security or for the purposes of reducing or retiring any indebtedness which was
originally incurred to purchase or carry any margin security or for any other
purpose which might cause any of the Loans to be considered a "purpose credit"
within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System, as amended.

                                       28
<PAGE>

SECTION 7.        COLLATERAL REPORTING AND COVENANTS.

         7.1 COLLATERAL REPORTING. Borrowers shall provide Lender with the
following documents in a form satisfactory to Lender:

                  (a) on a weekly basis, on or before the Wednesday of such week
for the immediately preceding calendar week or more frequently as Lender may
request, reports reflecting paid and unpaid excise and duty taxes for goods
shipped by each Borrower, a schedule of Accounts of each Borrower, sales made,
credits issued and cash received by each Borrower;

                  (b) on a monthly basis, on or before the third (3rd) Business
Day after the fifteenth (15th) day of such month for the first fifteen (15) day
period of such month or more frequently as Lender may request, interim
rollforwards of and detailed information on unbilled Accounts of each Borrower;

                  (c) on a monthly basis, on or before the tenth (10th) Business
Day of such month for the immediately preceding month or more frequently as
Lender may request, separate agings of billed and unbilled accounts receivable,
detailed information on unbilled Accounts, agings of accounts payable, lease
payables and other payables of each Borrower;

                  (d) upon Lender's reasonable request, (i) copies of customer
statements and credit memos, remittance advices and reports, and copies of
deposit slips and bank statements of each Borrower, (ii) copies of shipping and
delivery documents of each Borrower, and (iii) copies of purchase orders,
invoices and delivery documents for Equipment acquired by each Borrower; and

                  (e) such other reports as to the Collateral or other property
which is security for the Obligations as Lender shall reasonably request from
time to time.

If any of any Borrower's records or reports of the Collateral or other property
which is security for the Obligations are prepared or maintained by an
accounting service, contractor, shipper or other agent, each Borrower hereby
irrevocably authorizes such service, contractor, shipper or agent to deliver
such records, reports, and related documents to Lender and to follow Lender's
instructions with respect to further services at any time that an Event of
Default exists or has occurred and is continuing.

         7.2      ACCOUNTS COVENANTS.

                  (a) Borrowers shall notify Lender promptly of: (i) any
material delay in any Borrower's performance of any of its obligations to any
account debtor or the assertion of any claims, offsets, defenses or
counterclaims by any account debtor, or any disputes with account debtors, or
any settlement, adjustment or compromise thereof, (ii) all material adverse
information relating to the financial condition of any account debtor and (iii)
any event or circumstance which, to any Borrower's knowledge would cause Lender
to consider any then existing Accounts as no longer constituting Eligible
Accounts. No credit, discount, allowance or extension or agreement for any of
the foregoing shall be granted to any account debtor except in the ordinary
course of a Borrower's business in accordance with its most recent past
practices and policies. So long as no Event of Default exists or has occurred
and is continuing, a Borrower

                                       29
<PAGE>

may settle, adjust or compromise any claim, offset, counterclaim or dispute
with any account debtor in the ordinary course of such Borrower's business in
accordance with its most recent past practices and policies. At any time that
an Event of Default exists or has occurred and is continuing, Lender shall,
at its option, have the exclusive right to settle, adjust or compromise any
claim, offset, counterclaim or dispute with account debtors or grant any
credits, discounts or allowances and no Borrower shall, upon Lender's
request, issue any credits, discounts or allowances with respect to any
Account without Lender's prior written consent.

                  (b) With respect to each Account: (i) the amounts shown on any
invoice delivered to Lender or schedule thereof delivered to Lender shall be
true and complete, (ii) no payments shall be made thereon except payments
delivered to Lender pursuant to the terms of this Agreement, (iii) no credit,
discount, allowance or extension or agreement for any of the foregoing shall be
granted to any account debtor except as reported to Lender in accordance with
this Agreement and except for credits, discounts, allowances or extensions made
or given in the ordinary course of a Borrower's business in accordance with
practices and policies previously disclosed to Lender, (iv) there shall be no
setoffs, deductions, contras, defenses, counterclaims or disputes existing or
asserted with respect thereto except as reported to Lender in accordance with
the terms of this Agreement, (v) none of the transactions giving rise thereto
will violate any applicable State or Federal Laws or regulations, all
documentation relating thereto will be legally sufficient under such laws and
regulations and all such documentation will be legally enforceable in accordance
with its terms and (vi) if such Account is a Eligible Unbilled Account, a
Borrower has completed shipment of goods and/or the rendition of services which
gave rise thereto in accordance with the terms and provisions contained in any
documents related thereto.

                  (c) Lender shall have the right at any time or times, in
Lender's name or in the name of a nominee of Lender, to verify the validity,
amount or any other matter relating to any Account or other Collateral, by mail,
telephone, facsimile transmission or otherwise.

                  (d) Each Borrower shall deliver or cause to be delivered to
Lender, with appropriate endorsement and assignment, with full recourse to such
Borrower, all chattel paper and instruments which such Borrower now owns or may
at any time acquire immediately upon such Borrower's receipt thereof, except as
Lender may otherwise agree.

                  (e) Lender may, at any time or times that an Event of Default
exists, (i) notify any or all account debtors that the Accounts have been
assigned to Lender and that Lender has a security interest therein and Lender
may direct any or all account debtors to make payments of Accounts directly to
Lender, (ii) extend the time of payment of, compromise, settle or adjust for
cash, credit, return of merchandise or otherwise, and upon any terms or
conditions, any and all Accounts or other obligations included in the Collateral
and thereby discharge or release the account debtor or any other party or
parties in any way liable for payment thereof without affecting any of the
Obligations, (iii) demand, collect or enforce payment of any Accounts or such
other obligations, but without any duty to do so, and Lender shall not be liable
for its failure to collect or enforce the payment thereof or for the negligence
of its agents or attorneys with respect thereto and (iv) take whatever other
action Lender may deem necessary or desirable for the protection of its
interests. At any time that an Event of Default exists or has occurred and is
continuing, at Lender's request, all invoices and statements sent to any account
debtor shall state that the Accounts due from such account debtor and such other
obligations have been assigned to

                                       30
<PAGE>

Lender and are payable directly and only to Lender and each Borrower shall
deliver to Lender such originals of documents evidencing the sale and
delivery of goods or the performance of services giving rise to any Accounts
as Lender may require.

         7.3      EQUIPMENT COVENANTS.  With respect to the Equipment:

                  (a) upon Lender's request, each Borrower shall, at its
expense, at any time or times as Lender may request on or after an Event of
Default, deliver or cause to be delivered to Lender written reports or
appraisals as to the Equipment in form, scope and methodology acceptable to
Lender by an appraiser acceptable to Lender, addressed to Lender or upon which
Lender is expressly permitted to rely;

                  (b) each Borrower shall diligently and promptly do all acts
reasonably necessary to deliver to Lender the original certificates of title of
all motor vehicles of such Borrower and to note Lender as the first priority
lienholder thereon, which acts shall include curing any deficiency to any
documents or instruments necessary to evidence Lender's security interest within
ten (10) days after written notice of such deficiency by Lender;

                  (c) each Borrower shall keep the Equipment in good order,
repair, running and marketable condition (ordinary wear and tear excepted);

                  (d) each Borrower shall use the Equipment with all reasonable
care and caution and in accordance with applicable standards of any insurance
and in conformity with all applicable laws;

                  (e) the Equipment is and shall be used in a Borrower's
business and not for personal, family, household or farming use;

                  (f) no Borrower shall remove any Equipment from the locations
set forth or permitted herein, except to the extent necessary to have any
Equipment repaired or maintained in the ordinary course of the business of a
Borrower or to move Equipment directly from one such location set forth or
permitted herein to another such location and except for the movement of motor
vehicles used by or for the benefit of a Borrower in the ordinary course of
business;

                  (g) the Equipment is now and shall remain personal property
and no Borrower shall permit any of the Equipment to be or become a part of or
affixed to real property; and

                  (h) each Borrower assumes all responsibility and liability
arising from the use of the Equipment.

         7.4 POWER OF ATTORNEY. Each Borrower hereby irrevocably designates and
appoints Lender (and all persons designated by Lender) as such Borrower's true
and lawful attorney-in-fact, and authorizes Lender, in a Borrower's or Lender's
name, to:

                  (a) at any time an Event of Default exists or has occurred and
is continuing: (i) demand payment on Accounts or on proceeds of other
Collateral; (ii) enforce payment of Accounts or other Obligations included in
the Collateral by legal proceedings or otherwise; (iii) exercise all of such
Borrower's rights and remedies to collect any Account or proceeds of other

                                       31
<PAGE>

Collateral; (iv) sell or assign any Account upon such terms, for such amount and
at such time or times as the Lender deems advisable; (v) settle, adjust,
compromise, extend or renew an Account; (vi) discharge and release any Account
or other Obligations included in the Collateral; (vii) prepare, file and sign
such Borrower's name on any proof of claim in bankruptcy or other similar
document against an account debtor; (viii) notify the post office authorities to
change the address for delivery of such Borrower's mail to an address designated
by Lender, open all mail addressed to Borrower, take any payments on Accounts or
other proceeds of Collateral contained in such mail and promptly forward any
other mail to Borrowers; and (ix) do all acts and things which are necessary, in
Lender's determination, to fulfill such Borrower's obligations under this
Agreement and the other Financing Agreements; and

                  (b) at any time, subject to the terms of the agreement(s)
relating to the Blocked Account(s) to: (i) take control in any manner of any
item of payment or proceeds thereof; (ii) have access to any lockbox or postal
box into which such Borrower's mail is deposited; (iii) endorse such Borrower's
name upon any items of payment or proceeds thereof and deposit the same in the
Lender's account for application to the Obligations; (iv) endorse such
Borrower's name upon any chattel paper, document, instrument, invoice, or
similar document or agreement relating to any Account or any goods pertaining
thereto or any other Collateral; (v) sign such Borrower's name on any
verification of Accounts and notices thereof to account debtors; and (vi)
execute in such Borrower's name and file any UCC financing statements or
amendments thereto.

Each Borrower hereby releases Lender and its officers, employees and designees
from any liabilities arising from any act or acts under this power of attorney
and in furtherance thereof, whether of omission or commission, except as a
result of Lender's own gross negligence or willful misconduct as determined
pursuant to a final non-appealable order of a court of competent jurisdiction.

         7.5 RIGHT TO CURE. Lender may, at its option, (a) cure any monetary
default by any Borrower under any agreement with a third party or pay or bond on
appeal any judgment entered against any Borrower, (b) discharge taxes, liens,
security interests or other encumbrances at any time levied on or existing with
respect to the Collateral and (c) pay any amount, incur any expense or perform
any act which, in Lender's judgment, is necessary or appropriate to preserve,
protect, insure or maintain the Collateral and the rights of Lender with respect
thereto. Lender may add any amounts so expended to the Obligations and charge
any Borrower's account therefor, such amounts to be repayable by such Borrower
on demand. Lender shall be under no obligation to effect such cure, payment or
bonding and shall not, by doing so, be deemed to have assumed any obligation or
liability of any Borrower. Any payment made or other action taken by Lender
under this Section 7.5 shall be without prejudice to any right to assert an
Event of Default hereunder and to proceed accordingly.

         7.6 ACCESS TO PREMISES. From time to time as requested by Lender, (a)
Lender or its designee shall have complete access to all of each Borrower's
premises during normal business hours and after notice to Borrowers, or at any
time and without notice to Borrowers if an Event of Default exists or has
occurred and is continuing, for the purposes of inspecting, verifying and
auditing the Collateral and all of any Borrower's books and records, including,
without limitation, the Records, and (b) each Borrower shall promptly furnish to
Lender such copies of

                                       32
<PAGE>

such books and records or extracts therefrom as Lender may request, and (c)
use during normal business hours such of any Borrower's personnel, equipment,
supplies and premises as may be reasonably necessary for the foregoing and if
an Event of Default exists or has occurred and is continuing for the
collection of Accounts and realization of other Collateral.

SECTION 8.        REPRESENTATIONS AND WARRANTIES.

         Each Borrower hereby represents and warrants to Lender the following
(which shall survive the execution and delivery of this Agreement), the truth
and accuracy of which are a continuing condition of the making of Loans and the
providing of Letter of Credit Accommodations by Lender to any Borrower:

         8.1 CORPORATE/COMPANY EXISTENCE, POWER AND AUTHORITY; SUBSIDIARIES.
Each of BWS, GLS and GLA is a corporation and BVL is a limited liability company
duly organized and in good standing under the laws of its state of incorporation
or organization, as the case may be, and is duly qualified as a foreign
corporation or limited liability company, as the case may be, and in good
standing in all states or other jurisdictions where the nature and extent of the
business transacted by it or the ownership of assets makes such qualification
necessary, except for those jurisdictions in which the failure to so qualify
would not have a material adverse effect on a Borrower's financial condition,
results of operation or business or the rights of Lender in or to any of the
Collateral. To the best of Borrowers' knowledge, attached as SCHEDULE 8.1
hereto, is a true and correct organizational chart of GLC and any Subsidiaries
with assets in excess of Ten Thousand Dollars ($10,000). The execution, delivery
and performance of this Agreement, the other Financing Agreements and the
transactions contemplated hereunder and thereunder are all within each
Borrower's corporate or company powers, have been duly authorized and are not in
contravention of law or the terms of such Borrower's certificate of
incorporation, by-laws, articles of formation, operating agreement or other
organizational documentation, as the case may be, or any indenture, agreement or
undertaking to which such Borrower is a party or by which such Borrower or its
property are bound. This Agreement and the other Financing Agreements constitute
legal, valid and binding obligations of each Borrower enforceable in accordance
with their respective terms. No Borrower has any Subsidiaries with assets in
excess of Ten Thousand Dollars ($10,000) except as set forth on SCHEDULE 8.1
attached hereto.

         8.2 FINANCIAL STATEMENTS; NO MATERIAL ADVERSE CHANGE. All financial
statements relating to any Borrower or GLC which have been or may hereafter be
delivered by any Borrower or GLC to Lender have been or will have been prepared
in accordance with GAAP and fairly present the financial condition and the
results of operations of each Borrower and GLC as at the dates and for the
periods set forth therein. Except as disclosed in any interim financial
statements furnished by Borrowers or on behalf of any Borrower, or by GLC or on
behalf of GLC, to Lender prior to the date of this Agreement, there has been no
material adverse change in the assets, liabilities, properties and condition,
financial or otherwise, of any Borrower or GLC, since the date of the most
recent audited financial statements furnished by Borrowers or on behalf of any
Borrower, or by GLC or on behalf of GLC, to Lender prior to the date of this
Agreement.

                                       33
<PAGE>

         8.3 CHIEF EXECUTIVE OFFICE; COLLATERAL LOCATIONS. The chief executive
office of each Borrower and each Borrower's Records concerning Accounts are
located only at the address set forth below such Borrower's name on the
signature pages hereto and its only other places of business and the only other
locations of Collateral, if any, are the addresses set forth in the Information
Certificate of such Borrower, subject to the right of a Borrower to establish
new locations in accordance with Section 9.2 below. The Information Certificate
of each Borrower correctly identifies any of such locations which are not owned
by such Borrower and sets forth the owners and/or operators thereof and, to the
best of any Borrower's knowledge, the holders of any mortgages on such
locations.

         8.4 PRIORITY OF LIENS; TITLE TO PROPERTIES. The security interests and
liens granted to Lender under this Agreement and the other Financing Agreements
constitute valid and perfected first priority liens and security interests in
and upon the Collateral subject only to the liens indicated on SCHEDULE 8.4
hereto and the other liens permitted under Section 9.8 hereof. Each Borrower has
good and marketable title to all of its properties and assets subject to no
liens, mortgages, pledges, security interests, encumbrances or charges of any
kind, except those granted to Lender and such others as are specifically listed
on SCHEDULE 8.4 hereto or permitted under Section 9.8 hereof.

         8.5 TAX RETURNS. Each Borrower has filed, or caused to be filed, in a
timely manner all tax returns, reports and declarations which are required to be
filed by it (without requests for extension except as previously disclosed in
writing to Lender). All information in such tax returns, reports and
declarations is complete and accurate in all material respects. Each Borrower
has paid or caused to be paid all taxes due and payable or claimed due and
payable in any assessment received by it, except taxes the validity of which are
being contested in good faith by appropriate proceedings diligently pursued and
available to such Borrower and with respect to which adequate reserves have been
set aside on its books. Adequate provision has been made for the payment of all
accrued and unpaid Federal, State, county, local, foreign and other taxes
whether or not yet due and payable and whether or not disputed.

         8.6 LITIGATION. Except as set forth on the Information Certificate of
such Borrower, there is no present investigation by any governmental agency
pending, or to the best of any Borrower's knowledge threatened, against or
affecting any Borrower, its assets or business and there is no action, suit,
proceeding or claim by any Person pending, or to the best of any Borrower's
knowledge threatened, against any Borrower or its assets or goodwill, or against
or affecting any transactions contemplated by this Agreement, which has a
material possibility (as reasonably determined by Lender) of being adversely
determined against any Borrower, and if adversely determined would result in any
material adverse change in the assets, business or condition (financial or
otherwise) of such Borrower or would impair the ability of such Borrower to
perform its obligations hereunder or under any of the other Financing Agreements
to which it is a party or of Lender to enforce any Obligations or realize upon
any Collateral.

         8.7 COMPLIANCE WITH OTHER AGREEMENTS AND APPLICABLE LAWS. No Borrower
is in default under, or in violation of any of the terms of, any agreement,
contract, instrument, lease or other commitment to which it is a party or by
which it or any of its assets are bound and each Borrower is in compliance with
all applicable provisions of laws, rules, regulations, licenses, permits,
approvals and orders of any foreign, Federal, State or local governmental
authority

                                       34

<PAGE>

 where such default or noncompliance would result in a material adverse
effect on the assets, business or condition (financial or otherwise) of such
Borrower or would materially impair the ability of such Borrower to perform its
obligations under the Financing Agreements to which it is a party or of Lender
to enforce any Obligations or realize upon the Collateral.

         8.8 BANK ACCOUNTS. All of the deposit accounts, investment accounts or
other accounts in the name of or used by any Borrower maintained at any bank or
other financial institution are set forth on SCHEDULE 8.8 hereto, subject to the
right of a Borrower to establish new accounts in accordance with Section 9.13
below.

         8.9 ENVIRONMENTAL COMPLIANCE.

                  (a) Except as set forth on SCHEDULE 8.9 hereto, no Borrower
has generated, used, stored, treated, transported, manufactured, handled,
produced or disposed of any Hazardous Materials, on or off its premises (whether
or not owned by it) in any manner which at any time violates any applicable
Environmental Law or any license, permit, certificate, approval or similar
authorization thereunder and the operations of each Borrower complies in all
material respects with all Environmental Laws and all licenses, permits,
certificates, approvals and similar authorizations thereunder.

                  (b) Except as set forth on SCHEDULE 8.9 hereto, there has been
no investigation, proceeding, complaint, order, directive, claim, citation or
notice by any governmental authority or any other person nor is any pending or
to the best of any Borrower's knowledge threatened, with respect to any
non-compliance with or violation of the requirements of any Environmental Law by
any Borrower or the release, spill or discharge, threatened or actual, of any
Hazardous Material or the generation, use, storage, treatment, transportation,
manufacture, handling, production or disposal of any Hazardous Materials or any
other environmental, health or safety matter, which affects any Borrower or its
business, operations or assets or any properties at which any Borrower has
transported, stored or disposed of any Hazardous Materials.

                  (c) No Borrower has material liability (contingent or
otherwise) in connection with a release, spill or discharge, threatened or
actual, of any Hazardous Materials or the generation, use, storage, treatment,
transportation, manufacture, handling, production or disposal of any Hazardous
Materials.

                  (d) Each Borrower has all licenses, permits, certificates,
approvals or similar authorizations required to be obtained or filed in
connection with the operations of such Borrower under any Environmental Law and
all of such licenses, permits, certificates, approvals or similar authorizations
are valid and in full force and effect.

         8.10 EMPLOYEE BENEFITS.

                  (a) No Borrower has engaged in any transaction in connection
with which such Borrower or any of its ERISA Affiliates could be subject to
either a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax
imposed by Section 4975 of the Code, including any accumulated funding
deficiency described in Section 8.10(c) hereof and any deficiency with respect
to vested accrued benefits described in Section 8.10(d) hereof.

                                       35
<PAGE>

                  (b) No liability to the Pension Benefit Guaranty Corporation
has been or is expected by any Borrower to be incurred with respect to any
employee pension benefit plan of such Borrower or any of its ERISA Affiliates.
There has been no reportable event (within the meaning of Section 4043(b) of
ERISA) or any other event or condition with respect to any employee pension
benefit plan of any Borrower or any of its ERISA Affiliates which presents a
risk of termination of any such plan by the Pension Benefit Guaranty
Corporation.

                  (c) Full payment has been made of all amounts which any
Borrower or any of its ERISA Affiliates is required under Section 302 of ERISA
and Section 412 of the Code to have paid under the terms of each employee
pension benefit plan as contributions to such plan as of the last day of the
most recent fiscal year of such plan ended prior to the date hereof, and no
accumulated funding deficiency (as defined in Section 302 of ERISA and Section
412 of the Code), whether or not waived, exists with respect to any employee
pension benefit plan, including any penalty or tax described in Section 8.10(a)
hereof and any deficiency with respect to vested accrued benefits described in
Section 8.10(c) hereof.

                  (d) The current value of all vested accrued benefits under all
employee pension benefit plans maintained by any Borrower that are subject to
Title IV of ERISA does not exceed the current value of the assets of such plans
allocable to such vested accrued benefits, including any penalty or tax
described in Section 8.10(a) hereof and any accumulated funding deficiency
described in Section 8.10(c) hereof. The terms "current value" and "accrued
benefit" have the meanings specified in ERISA.

                  (e) No Borrower nor any of their ERISA Affiliates is or has
ever been obligated to contribute to any "multiemployer plan" (as such term is
defined in Section 4001(a)(3) of ERISA) that is subject to Title IV of ERISA.

         8.11 YEAR 2000 COMPLIANCE. Any reprogramming required to permit the
proper functioning, in and following the year 2000, of (i) the computer systems
of the Borrowers and (ii) equipment containing embedded microchips (including
systems and equipment supplied by others or with which the systems of the
Borrowers interface) and the testing of all such systems and equipment, as so
reprogrammed, has been completed in all material respects. The computer and
management information systems of the Borrowers are and, with ordinary course
upgrading and maintenance, will continue for the term of this Agreement to be,
sufficient to permit the Borrowers to conduct their business without a material
adverse effect on their assets, business or condition (financial or other).

         8.12 ACCURACY AND COMPLETENESS OF INFORMATION. All information
furnished by or on behalf of any Borrower or GLC in writing to Lender in
connection with this Agreement or any of the other Financing Agreements or any
transaction contemplated hereby or thereby, including, without limitation, all
information on the Information Certificate of any Borrower is true and correct
in all material respects on the date as of which such information is dated or
certified and does not omit any material fact necessary in order to make such
information not misleading. No event or circumstance has occurred which has had
or could reasonably be expected to have a material adverse affect on the
business, assets or condition (financial or otherwise) of any Borrower, which
has not been fully and accurately disclosed to Lender in writing.

                                       36
<PAGE>

         8.13 SURVIVAL OF WARRANTIES; CUMULATIVE. All representations and
warranties contained in this Agreement or any of the other Financing Agreements
shall survive the execution and delivery of this Agreement and shall be deemed
to have been made again to Lender on the date of each additional borrowing or
other credit accommodation hereunder and shall be conclusively presumed to have
been relied on by Lender regardless of any investigation made or information
possessed by Lender. The representations and warranties set forth herein shall
be cumulative and in addition to any other representations or warranties which
any Borrower shall now or hereafter give, or cause to be given, to Lender
pursuant to any Financing Document.

SECTION 9.        AFFIRMATIVE AND NEGATIVE COVENANTS.

         9.1 MAINTENANCE OF EXISTENCE. Each Borrower shall at all times
preserve, renew and keep in full, force and effect its corporate or company
existence and rights and franchises with respect thereto and maintain in full
force and effect all permits, licenses, trademarks, trade names, approvals,
authorizations, leases and contracts necessary to carry on the business as
presently or proposed to be conducted; PROVIDED, HOWEVER, that any Borrower may
(a) reincorporate or re-form itself under the laws of any other state of the
United States, (b) change its form of organization from a corporation to a
limited liability company or from a limited liability company to a corporation
and (c) abandon any permit, license, trademark, trade name, approval or
authorization it no longer deems material to its business. Borrowers shall give
Lender thirty (30) days' prior notice of any proposed change of name or
structure of any Borrower, which notice shall set forth the proposed new name or
structure and Borrowers shall deliver to Lender a copy of the amendment to the
applicable constituent document of such Borrower providing for such change
certified by the Secretary of State of the jurisdiction of incorporation or
organization as soon as it is available.

         9.2 NEW COLLATERAL LOCATIONS. A Borrower may open any new location
within the continental United States provided Borrowers: (a) give Lender thirty
(30) days prior written notice of the intended opening of any such new location
(other than the relocation of GAI's or GSI's new chief executive office to the
alternate address set forth below their respective signature below); and (b)
execute and deliver, or cause to be executed and delivered, to Lender such
agreements, documents, and instruments as Lender may deem reasonably necessary
or desirable to protect its interests in the Collateral at such location,
including, without limitation, UCC financing statements and, if such Borrower
leases such new location, provides a favorable landlord waiver or subordination.

         9.3 COMPLIANCE WITH LAWS, REGULATIONS, ETC.

                  (a) Each Borrower shall, at all times, comply in all material
respects with all laws, rules, regulations, licenses, permits, approvals and
orders applicable to it and duly observe all requirements of any Federal, State
or local governmental authority, including, without limitation, the Employee
Retirement Security Act of 1974, as amended, the Occupational Safety and Hazard
Act of 1970, as amended, the Fair Labor Standards Act of 1938, as amended, and
all statutes, rules, regulations, orders, permits and stipulations relating to
environmental pollution and employee health and safety, including, without
limitation, all of the Environmental Laws where such noncompliance would result
in a material adverse effect on the assets, business or

                                       37
<PAGE>

condition (financial or otherwise) of such Borrower or would materially
impair the ability of such Borrower to perform its obligations under the
Financing Agreements to which it is a party or of Lender to enforce any
Obligations or realize upon the Collateral.

                  (b) Each Borrower shall take prompt and appropriate action to
respond to any material non-compliance with any of the Environmental Laws and
shall report to Lender on such response.

                  (c) Borrowers shall give both oral and written notice to
Lender immediately upon any Borrower's receipt of any notice of, or any
Borrower's otherwise obtaining knowledge of:

                           (i) the occurrence of any event involving the
release, spill or discharge, threatened or actual, of any Hazardous Material; or

                           (ii) any investigation, proceeding, complaint,
order, directive, claims, citation or notice with respect to: (A) any
non-compliance with or violation of any Environmental Law by any Borrower;
(B) the release, spill or discharge, threatened or actual, of any Hazardous
Material; (C) the generation, use, storage, treatment, transportation,
manufacture, handling, production or disposal of any Hazardous Materials; or
(D) any other environmental, health or safety matter, which affects any
Borrower or its business, operations or assets or any properties at which any
Borrower transported, stored or disposed of any Hazardous Materials.

                  (d) Each Borrower shall indemnify and hold harmless Lender,
its directors, officers, employees, agents, invitees, representatives,
successors and assigns, from and against any and all losses, claims, damages,
liabilities, costs, and expenses (including attorneys' fees and legal expenses)
directly or indirectly arising out of or attributable to the use, generation,
manufacture, reproduction, storage, release, threatened release, spill,
discharge, disposal or presence of a Hazardous Material, including, without
limitation, the costs of any required or necessary repair, cleanup or other
remedial work with respect to any property of any Borrower and the preparation
and implementation of any closure, remedial or other required plans. All
representations, warranties, covenants and indemnifications in this Section 9.3
shall survive the payment of the Obligations and the termination or non-renewal
of this Agreement.

         9.4 PAYMENT OF TAXES AND CLAIMS. Each Borrower shall duly pay and
discharge all taxes, assessments, contributions and governmental charges upon or
against it or its properties or assets, except for taxes the validity of which
are being contested in good faith by appropriate proceedings diligently pursued
and available to such Borrower and with respect to which adequate reserves have
been set aside on its books. Each Borrower shall be liable for any tax or
penalties imposed on Lender as a result of the financing arrangements provided
for herein and each Borrower agrees to indemnify and hold Lender harmless with
respect to the foregoing, and to repay to Lender on demand the amount thereof,
and until paid by such Borrower such amount shall be added and deemed part of
the Loans, PROVIDED, THAT, nothing contained herein shall be construed to
require any Borrower to pay any income or franchise taxes attributable to the
income of Lender from any amounts charged or paid hereunder to Lender. The
foregoing indemnity shall survive the payment of the Obligations and the
termination or non-renewal of this Agreement.

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<PAGE>

         9.5 INSURANCE. Each Borrower shall, at all times, maintain with
financially sound and reputable insurers insurance with respect to the
Collateral against loss or damage and all other insurance of the kinds and in
the amounts customarily insured against or carried by corporations of
established reputation engaged in the same or similar businesses and similarly
situated. Each Borrower shall furnish certificates, policies or endorsements to
Lender as Lender shall require as proof of such insurance, and, if any Borrower
fails to do so, Lender is authorized, but not required, to obtain such insurance
at the expense of such Borrower. All policies shall provide for at least thirty
(30) days prior written notice to Lender of any cancellation of coverage. Each
Borrower shall cause Lender to be named as a loss payee and an additional
insured (but without any liability for any premiums) under such insurance
policies and each Borrower shall obtain non-contributory lender's loss payable
endorsements to all casualty insurance policies in form and substance
satisfactory to Lender. Such lender's loss payable endorsements shall specify
that the proceeds of such insurance shall be payable to Lender as its interests
may appear. At its option, Lender may apply any insurance proceeds received by
Lender at any time to the cost of repairs or replacement of Collateral and/or to
payment of the Obligations, whether or not then due, in any order and in such
manner as Lender may determine or hold such proceeds as cash collateral for the
Obligations.

         9.6 FINANCIAL STATEMENTS AND OTHER INFORMATION.

                  (a) Each Borrower shall keep proper books and records in which
true and complete entries shall be made of all dealings or transactions of or in
relation to the Collateral and the business of Borrower and its Subsidiaries (if
any) in accordance with GAAP and Borrowers shall furnish or cause to be
furnished to Lender: (i) within thirty (30) days after the end of each fiscal
month, monthly unaudited consolidated and consolidating financial statements of
GLC and its Subsidiaries (including in each case balance sheets, statements of
income and loss, statements of cash flow and statements of shareholders'
equity), all in reasonable detail, fairly presenting the financial position and
the results of the operations of GLC and its Subsidiaries as of the end of and
through such month, (ii) within sixty (60) days after the end of each fiscal
quarter, quarterly unaudited consolidated and consolidating financial statements
of GLC and its Subsidiaries (including in each case balance sheets, statements
of income and loss, statements of cash flow and statements of shareholders'
equity), all in reasonable detail, fairly presenting the financial position and
the results of the operations of GLC and its Subsidiaries as of the end of and
through such fiscal quarter, and (iii) within one hundred twenty (120) days
after the end of each fiscal year, audited consolidated and consolidating
financial statements of GLC and its Subsidiaries (including in each case balance
sheets, statements of income and loss, statements of cash flow and statements of
shareholders' equity), and the accompanying notes thereto, all in reasonable
detail, fairly presenting the financial position and the results of the
operations of GLC and its Subsidiaries as of the end of and for such fiscal
year, together with the opinion of independent certified public accountants,
which accountants shall be a nationally recognized independent accounting firm
or, if not, another independent accounting firm selected by GLC and reasonably
acceptable to Lender, that such financial statements have been prepared in
accordance with GAAP, and present fairly the results of operations and financial
condition of GLC and its Subsidiaries as of the end of and for the fiscal year
then ended.

                  (b) Borrowers shall promptly notify Lender in writing of the
details of (i) any loss, damage, investigation, action, suit, proceeding or
claim relating to the Collateral or any

                                       39
<PAGE>

other property which is security for the Obligations or which would result in
any material adverse change in any Borrower's business, properties, assets,
or condition, financial or otherwise and (ii) the occurrence of any Event of
Default or event which, with the passage of time or giving of notice or both,
would constitute an Event of Default.

                  (c) Borrowers shall promptly after the sending or filing
thereof furnish or cause to be furnished to Lender copies of all financial
reports which GLC sends to its stockholders generally and copies of all reports
and registration statements which any Borrower or GLC files with the Securities
and Exchange Commission, any national securities exchange or the National
Association of Securities Dealers, Inc.

                  (d) Within thirty (30) days after the date hereof, Borrowers
shall furnish or cause to be furnished to Lender updated projected balance
sheets and income statements of GLC and its Subsidiaries after giving effect to
the transactions contemplated by this Agreement.

                  (e) Borrowers shall furnish or cause to be furnished to Lender
such budgets, forecasts, projections and other information in respect of the
Collateral and the business of any Borrower, as Lender may, from time to time,
reasonably request. Lender is hereby authorized to deliver a copy of any
financial statement or any other information relating to the business of any
Borrower to any court or other government agency or to any participant or
assignee or prospective participant or assignee. Each Borrower hereby
irrevocably authorizes and directs all accountants or auditors to deliver to
Lender, at Borrowers' expense, copies of the financial statements of any
Borrower and any reports or management letters prepared by such accountants or
auditors on behalf of any Borrower and to disclose to Lender such information as
they may have regarding the business of any Borrower. Any information provided
to Lender pursuant to this Section 9.6(e) shall be subject to the provisions of
Section 12.7 hereof. Any documents, schedules, invoices or other papers
delivered to Lender may be destroyed or otherwise disposed of by Lender one (1)
year after the same are delivered to Lender, except as otherwise designated by
Borrowers to Lender in writing.

         9.7 SALE OF ASSETS, CONSOLIDATION, MERGER, DISSOLUTION, ETC. No
Borrower shall, directly or indirectly:

                  (a) merge into or with or consolidate with any other Person
(other than another Borrower or an entity solely formed for the purpose of a
re-incorporation or re-formation of a Borrower permitted under Section 9.1
hereof) or permit any other Person (other than another Borrower or an entity
solely formed for the purpose of a re-incorporation or re-formation of a
Borrower permitted under Section 9.1 hereof) to merge into or with or
consolidate with it; provided that any survivor of such merger or consolidation
not already a Borrower shall assume the Obligations of the merged or
consolidated Borrower and be subject to the terms and conditions of this
Agreement and the other Financing Agreements;

                  (b) sell, assign, lease, transfer, abandon or otherwise
dispose of any stock or indebtedness to any other Person or any of its assets to
any other Person (except for (i) sales of Inventory in the ordinary course of
business, (ii) the disposition of worn-out or obsolete Equipment or Equipment no
longer used in the business of such Borrower so long as (A) if an Event of
Default exists or has occurred and is continuing, any proceeds are paid to
Lender and

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<PAGE>

(B) such sales do not involve Equipment having an aggregate fair market value
in excess of One Million Dollars ($1,000,000) for all such Equipment disposed
of in any fiscal year of Borrowers, (iii) sales of assets, stock or
indebtedness to another Borrower and (iv) in connection with the sale of all
or substantially all the assets of such Borrower or a Subsidiary of such
Borrower or the sale of all the Capital Stock of such Borrower or a
Subsidiary of such Borrower, sales of any such assets or Capital Stock having
an aggregate fair market value not to exceed Twenty Five Million Dollars
($25,000,000) less the fair market value of any assets or Capital Stock
previously sold by such Borrower in connection with the sale of all or
substantially all the assets of such Borrower or a Subsidiary of such
Borrower or the sale of all the Capital Stock of a Subsidiary of such
Borrower during the term of this Agreement, PROVIDED THAT (A) no Event of
Default, or an event which with notice or passage of time or both would
constitute an Event of Default, exists or has occurred and is continuing
immediately prior to and after giving effect to such sale and (B) Borrowers
shall pay to Lender the greater of (1) fifty percent (50%) of the amount by
which the aggregate amount (net of taxes, assumed liabilities and transaction
costs) received by Borrowers from all such sales exceeds Five Million Dollars
($5,000,000) and one hundred percent (100%) of the amount by which the
aggregate amount (net of taxes, assumed liabilities and transaction costs)
received by Borrowers from all such sales exceeds Ten Million Dollars
($10,000,000) or (2) the portion of the amount of Loans then outstanding
advanced against any Accounts sold in connection with any such sales (it
being agreed that any such payments to Lender shall not reduce the Maximum
Credit unless made pursuant to Section 12.1(c) hereof and shall not be
included in calculating the amount of Revolving Loans available pursuant to
Section 2.1(b)(i)(C)));

                  (c) form any Subsidiaries, unless the aggregate amount of
all contributions made by Borrowers to such Subsidiaries is less than Five
Million Dollars ($5,000,000) in the aggregate during the term of this
Agreement and PROVIDED THAT; (i) no Event of Default, or an event which with
notice or passage of time or both would constitute an Event of Default,
exists or has occurred and is continuing immediately prior to and after
giving effect to the formation of each such Subsidiary, (ii) if any such
Subsidiary is formed on or prior to April 15, 2000, Total Excess Availability
exceeds Fifteen Million Dollars ($15,000,000) immediately prior to and after
giving effect to such formation or if any such Subsidiary is formed after
April 15, 2000, Total Excess Availability exceeds Ten Million Dollars
($10,000,000) immediately prior to and after giving effect to such formation,
(iii) any such Subsidiary formed engages in a line of business compatible but
not competitively adverse with any Borrower's line of business and (iv) no
Borrower shall contribute to any such Subsidiary any Collateral with a fair
market value exceeding in the aggregate more than Ten Thousand Dollars
($10,000) during the term of this Agreement or any proprietary information
except that a license to use such proprietary information on a non-exclusive
basis shall not be deemed to be a contribution of proprietary information for
purposes of this Section 9.7(c);

                  (d) acquire the Capital Stock of any Person in which such
Person would become a Subsidiary of such Borrower except for Permitted
Acquisitions;

                  (e) wind up, liquidate or dissolve except following the
transfer of all or substantially all of its assets in a transaction permitted by
clauses (b)(iii) or (b)(iv) of this Section 9.7; or

                                       41
<PAGE>

                  (f) agree to do any of the foregoing.

         9.8 ENCUMBRANCES. No Borrower shall create, incur, assume or suffer to
exist any security interest, mortgage, pledge, lien, charge or other encumbrance
of any nature whatsoever on any of its assets or properties, including, without
limitation, the Collateral, EXCEPT:

                  (a) the liens and security interests of Lender or Congress
(Canada);

                  (b) liens securing the payment of taxes, either not yet
overdue or the validity of which are being contested in good faith by
appropriate proceedings diligently pursued and available to such Borrower and
with respect to which adequate reserves have been set aside on its books;

                  (c) security deposits in the ordinary course of business;

                  (d) non-consensual statutory liens (other than liens securing
the payment of taxes) arising in the ordinary course of such Borrower's business
to the extent:

                           (i) such liens do not affect Accounts or are
otherwise not in imminent danger of foreclosure; or

                           (ii) such liens secure indebtedness relating to
claims or liabilities which are fully insured and being defended at the sole
cost and expense and at the sole risk of the insurer (subject to applicable
deductibles) or being contested in good faith by appropriate proceedings
diligently pursued and available to such Borrower, in each case prior to the
commencement of foreclosure or other similar proceedings and with respect to
which adequate reserves have been set aside on its books;

                  (e) zoning restrictions, easements, licenses, covenants and
other restrictions affecting the use of real property which do not interfere in
any material respect with the use of such real property or ordinary conduct of
the business of such Borrower as presently conducted thereon or materially
impair the value of the real property which may be subject thereto;

                  (f) purchase money security interests in Equipment (including
capital leases) and purchase money mortgages on real estate not so long as such
security interests and mortgages do not apply to any property of such Borrower
other than the Equipment or real estate so acquired, and the indebtedness
secured thereby does not exceed the cost of the Equipment or real estate so
acquired, as the case may be; and

                  (g) the security interests and liens set forth on SCHEDULE 8.4
hereto or replacements therefor that do not extend to any other property or
increase the amounts secured.

         9.9 INDEBTEDNESS. No Borrower shall incur, create, assume, become or be
liable in any manner with respect to, or permit to exist, any obligation for
borrowed money or indebtedness, EXCEPT:

                  (a) the Obligations;

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<PAGE>

                  (b) trade obligations and normal accruals in the ordinary
course of business not yet due and payable, or with respect to which such
Borrower is contesting in good faith the amount or validity thereof by
appropriate proceedings diligently pursued and available to such Borrower, and
with respect to which adequate reserves have been set aside on its books;

                  (c) purchase money indebtedness (including capital leases) to
the extent not incurred or secured by liens (including capital leases) in
violation of any other provision of this Agreement;

                  (d) indebtedness set forth on the Information Certificate of
such Borrower; PROVIDED, that, (i) such Borrower may only make regularly
scheduled payments of principal and interest in respect of such indebtedness in
accordance with the terms of the agreement or instrument evidencing or giving
rise to such indebtedness as in effect on the date hereof, (ii) such Borrower
shall not, directly or indirectly, (A) amend, modify, alter or change the terms
of such indebtedness or any agreement, document or instrument related thereto as
in effect on the date hereof, or (B) except as otherwise permitted under this
Agreement, redeem, retire, defease, purchase or otherwise acquire such
indebtedness, or set aside or otherwise deposit or invest any sums for such
purpose, and (iii) Borrowers shall furnish to Lender all notices or demands in
connection with such indebtedness either received by any Borrower or on its
behalf, promptly after the receipt thereof, or sent by any Borrower or on its
behalf, concurrently with the sending thereof, as the case may be;

                  (e) indebtedness owing to another Borrower, GL Canada, GL UK,
GLC or GIFL; PROVIDED THAT, no Event of Default, or an event which with notice
or passage of time or both would constitute an Event of Default, exists or has
occurred and is continuing immediately prior to and after giving effect to the
incurrence, creation or assumption of such indebtedness; and

                  (f) other indebtedness together with other indebtedness of all
other Borrowers not otherwise permitted under Sections 9.1(a) through 9.9(e)
above at any one time not exceeding Two Million Dollars ($2,000,000) outstanding
in the aggregate.

         9.10 LOANS, INVESTMENTS, GUARANTEES, ETC. No Borrower shall, directly
or indirectly, make any loans or advance money or property to any Person, or
invest in (by capital contribution, dividend or otherwise) or purchase or
repurchase the stock or indebtedness or all or a substantial part of the assets
or property of any Person, or guarantee, assume, endorse, or otherwise become
responsible for (directly or indirectly) the indebtedness, performance,
obligations or dividends of any Person or agree to do any of the foregoing,
EXCEPT:

                  (a) the endorsement of instruments for collection or deposit
in the ordinary course of business;

                  (b) investments in: (i) short-term direct obligations of the
United States Government; (ii) negotiable certificates of deposit issued by any
bank satisfactory to Lender, payable to the order of such Borrower or to bearer
and delivered to Lender; and (iii) commercial paper rated A1 or P1; PROVIDED,
THAT, as to any of the foregoing, unless waived in writing by

                                       43
<PAGE>

Lender, each Borrower shall take such actions as are deemed necessary by
Lender to perfect the security interest of Lender in such investments;

                  (c) the guarantees set forth in the Information Certificate of
such Borrower;

                  (d) the guarantees issued or, to the extent required by the
terms of the indenture governing the Senior Notes as in effect on the date of
this Agreement or any indenture governing notes issued in replacement of the
Senior Notes; PROVIDED THAT, such replacement notes do not provide for a higher
interest rate, a maturity date or any principal payments during the term of this
Agreement, and otherwise contain provisions reasonably satisfactory to Lender
and the holders of such replacement notes have executed agreements providing for
the subordination of such notes to the Obligations on terms and conditions
reasonably satisfactory to Lender;

                  (e) Permitted Acquisitions and any transaction permitted by
Sections 9.1 or 9.7 hereof;

                  (f) the guarantees issued in favor of Congress (Canada) with
respect to the obligations of GL Canada under the Canadian Facility;

                  (g) loans or advances to, or investments in, or purchases or
repurchases of the stock, assets or indebtedness of another Borrower, GL Canada
or GL UK or guarantees or the assumption of letter of credit obligations for the
benefit of another Borrower, GL Canada or GL UK; PROVIDED THAT, (i) no Event of
Default, or an event which with notice or passage of time or both would
constitute an Event of Default, exists or has occurred and is continuing
immediately prior to and after giving effect to any such loan, advance,
investment, purchase, repurchase, guarantee or assumption of letter of credit
obligation and (ii) such loans, advances, investments, purchases or repurchases
do not violate the capitalization requirements of any Borrower, under applicable
laws;

                  (h) loans or advances to GIFL or GLC; PROVIDED THAT, (i) no
Event of Default, or an event which with notice or passage of time or both would
constitute an Event of Default, exists or has occurred and is continuing
immediately prior to and after giving effect to such loans or advances, (ii)
such loans or advances do not violate the capitalization requirements of any
Borrower, under applicable laws, and (iii) all the proceeds of such loans or
advances are immediately loaned or advanced by GIFL or GLC, as the case may be,
to GL Canada or GL UK;

                  (i) loans or advances to GLC (i) for the purpose of paying
interest due under the Senior Notes, (ii) for the purpose of paying management
fees to the Sponsors or any of their affiliates in an aggregate amount for all
Borrowers not to exceed Seven Hundred Thousand Dollars ($700,000) less amounts
paid by GL UK or GL Canada to GLC for such purpose in any fiscal year of
Borrowers (except that Borrowers may make an additional one-time loan or advance
to GLC in an amount not to exceed One Hundred Seventy Five Thousand Dollars
($175,000) for the purpose of paying unpaid management fees to the Sponsors or
any of their affiliates earned during Borrowers' 1999 fiscal year) and (iii) for
the other purposes set forth in SCHEDULE 9.10 attached hereto in an aggregate
amount for all Borrowers not to exceed Twenty One Million Dollars ($21,000,000)
less amounts paid by GL UK or GL Canada to GLC for such purposes in any fiscal
year of Borrowers; PROVIDED THAT, (i) no Event of Default, or an event

                                       44
<PAGE>

which with notice or passage of time or both would constitute an Event of
Default, exists or has occurred and is continuing immediately prior to and
after giving effect to such loans or advances and (ii) such loans or advances
do not violate the capitalization requirements of any Borrower under
applicable laws;

                  (j) loans or advances to, or guarantees or the assumption of
letter of credit obligations for the benefit of, GLC or a Subsidiary of GLC
(other than a Borrower, GL Canada or GL UK); PROVIDED THAT, (i) no Event of
Default, or an event which with notice or passage of time or both would
constitute an Event of Default, exists or has occurred and is continuing
immediately prior to and after giving effect to such loans, advances, guarantees
or assumption of letter of credit obligations, (ii) such loans, advances,
guarantees or assumption of letter of credit obligations do not violate the
capitalization requirements of any Borrower under applicable laws, (iii) if such
loans, advances, guarantees or assumption of letter of credit obligations are
made on or prior to April 15, 2000, Total Excess Availability exceeds Fifteen
Million Dollars ($15,000,000) immediately prior to and after giving effect to
such loans, advances, guarantees or assumption of letter of credit obligations,
or if such loans, advances, guarantees or assumption of letter of credit
obligations are made after April 15, 2000, Total Excess Availability exceeds Ten
Million Dollars ($10,000,000) immediately prior to and after giving effect to
such loans, advances, guarantees or assumption of letter of credit obligations
and (iv) such loans or advances are evidenced by a promissory note or notes, the
rights to which have been collaterally pledged to Lender; and

                  (k) other outstanding loans or advances by all Borrowers not
to exceed One Million Dollars ($1,000,000) in the aggregate at any time.

         9.11 DIVIDENDS AND REDEMPTIONS. No Borrower shall, directly or
indirectly, declare or pay any dividends on account of any shares of any class
of capital stock or membership interest, as the case may be, of such Borrower
now or hereafter outstanding, or set aside or otherwise deposit or invest any
sums for such purpose, or redeem, retire, defease, purchase or otherwise acquire
any shares of any class of capital stock or membership interest, as the case may
be, (or set aside or otherwise deposit or invest any sums for such purpose) for
any consideration other than common stock or membership interest or apply or set
apart any sum, or make any other distribution (by reduction of capital or
otherwise) in respect of any such shares or membership interest, as the case may
be, or agree to do any of the foregoing.

         9.12 TRANSACTIONS WITH AFFILIATES. No Borrower shall enter into any
transaction for the purchase, sale or exchange of property or the rendering of
any service to or by any affiliate, except in the ordinary course of and
pursuant to the reasonable requirements of such Borrower's business and upon
fair and reasonable terms no less favorable to such Borrower than such Borrower
would obtain in a comparable arm's length transaction with an unaffiliated
person. For this purpose, affiliate shall not include any other Borrower, a
Borrower's own or another Borrower's Subsidiary, GL Canada, GL UK, GLC or GIFL.

         9.13 ADDITIONAL BANK ACCOUNTS. No Borrower shall, directly or
indirectly, open, establish or maintain any deposit account, investment account
or any other account with any bank or other financial institution, other than
the Blocked Accounts and the accounts set forth in SCHEDULE 8.8 hereto, except:
(a) as to any new or additional Blocked Accounts and other such

                                       45
<PAGE>

new or additional accounts which contain any Collateral or proceeds thereof,
with the prior written consent of Lender and subject to such conditions
thereto as Lender may establish and (b) as to any accounts used by such
Borrower to make payments of payroll, taxes or other obligations to third
parties, after prior written notice to Lender.

         9.14 COMPLIANCE WITH ERISA. No Borrower shall with respect to any
"employee pension benefit plans" maintained by such Borrower or any of its ERISA
Affiliates:

                  (a)      (i) terminate any of such employee pension benefit
plans so as to incur any liability to the Pension Benefit Guaranty Corporation
established pursuant to ERISA;

                           (ii) allow or suffer to exist any prohibited
transaction involving any of such employee pension benefit plans or any trust
created thereunder which would subject such Borrower or such ERISA Affiliate to
a tax or penalty or other liability on prohibited transactions imposed under
Section 4975 of the Code or ERISA;

                           (iii) fail to pay to any such employee pension
benefit plan any contribution which it is obligated to pay under Section 302 of
ERISA, Section 412 of the Code or the terms of such plan;

                           (iv) allow or suffer to exist any accumulated funding
deficiency, whether or not waived, with respect to any such employee pension
benefit plan;

                           (v) allow or suffer to exist any occurrence of a
reportable event or any other event or condition which presents a material risk
of termination by the Pension Benefit Guaranty Corporation of any such employee
pension benefit plan that is a single employer plan, which termination could
result in any liability to the Pension Benefit Guaranty Corporation; or

                           (vi) incur any withdrawal liability with respect to
any multiemployer pension plan.

                  (b) As used in this Section 9.14, the term "employee pension
benefit plans," "employee benefit plans", "accumulated funding deficiency" and
"reportable event" shall have the respective meanings assigned to them in ERISA,
and the term "prohibited transaction" shall have the meaning assigned to it in
Section 4975 of the Code and ERISA.

         9.15 COSTS AND EXPENSES. Each Borrower shall pay to Lender on demand
all reasonable costs, expenses, filing fees and taxes paid or payable in
connection with the preparation, negotiation, execution, delivery, recording,
administration, collection, liquidation, enforcement and defense of the
Obligations, Lender's rights in the Collateral, this Agreement, the other
Financing Agreements and all other documents related hereto or thereto,
including any amendments, supplements or consents which may hereafter be
contemplated (whether or not executed) or entered into in respect hereof and
thereof, including, but not limited to:

                  (a) all costs and expenses of filing or recording (including
Uniform Commercial Code financing statement filing taxes and fees, documentary
taxes, intangibles taxes and mortgage recording taxes and fees, if applicable);

                                       46
<PAGE>

                  (b) all costs and expenses and fees for title insurance and
other insurance premiums, environmental audits, surveys, assessments,
engineering reports and inspections, appraisal fees and search fees;

                  (c) costs and expenses of remitting loan proceeds, collecting
checks and other items of payment, and establishing and maintaining the Blocked
Accounts, together with Lender's customary charges and fees with respect
thereto;

                  (d) charges, fees or expenses charged by any bank or issuer in
connection with the Letter of Credit Accommodations;

                  (e) costs and expenses of preserving and protecting the
Collateral;

                  (f) costs and expenses paid or incurred in connection with
obtaining payment of the Obligations, enforcing the security interests and liens
of Lender, selling or otherwise realizing upon the Collateral, and otherwise
enforcing the provisions of this Agreement and the other Financing Agreements or
defending any claims made or threatened against Lender arising out of the
transactions contemplated hereby and thereby (including, without limitation,
preparations for and consultations concerning any such matters);

                  (g) all out-of-pocket expenses and costs incurred by Lender's
examiners in the conduct of their periodic field examinations of the Collateral
and any Borrower's operations, plus a per diem charge at the rate of Seven
Hundred Fifty Dollars ($750) per person, per day for Lender's examiners in the
field and office; and

                  (h) the fees and disbursements of counsel (including legal
assistants) to Lender in connection with any of the foregoing.

         9.16 FURTHER ASSURANCES. At the request of Lender at any time and from
time to time, each Borrower shall, at its expense, duly execute and deliver, or
cause to be duly executed and delivered, such further agreements, documents and
instruments, and do or cause to be done such further acts as may be necessary or
proper to evidence, perfect, maintain and enforce the security interests and the
priority thereof in the Collateral and to otherwise effectuate the provisions or
purposes of this Agreement or any of the other Financing Agreements. Lender may
at any time and from time to time request a certificate from an officer of any
Borrower representing on behalf of such Borrower that all conditions precedent
to the making of Loans and providing Letter of Credit Accommodations contained
herein are satisfied. In the event of such request by Lender, Lender may, at its
option, cease to make any further Loans or provide any further Letter of Credit
Accommodations until Lender has received such certificate and, in addition,
Lender has determined that such conditions are satisfied. Where permitted by
law, each Borrower hereby authorizes Lender to execute and file one or more UCC
financing statements signed only by Lender.

                                       47

<PAGE>

SECTION 10.       EVENTS OF DEFAULT AND REMEDIES.

         10.1 EVENTS OF DEFAULT. The occurrence or existence of any one or more
of the following events are referred to herein individually as an "EVENT OF
DEFAULT," and collectively as "EVENTS OF DEFAULT":

                  (a) any Borrower fails to pay when due any of the Obligations
(other than interest or fees due hereunder);

                  (b) any Borrower fails to pay any interest or fees within
three (3) days after such interest or fees become due hereunder; PROVIDED THAT
such three (3) day period shall not apply in the event that Borrower
intentionally diverts payments on Accounts or other proceeds of Collateral from
the Blocked Account;

                  (c) any Borrower fails to perform any of the terms, covenants,
conditions or provisions contained in this Agreement or any of the other
Financing Agreements and such failure shall continue for ten (10) Business Days;
PROVIDED THAT, such ten (10) Business Day period shall not apply in the case of
(i) any failure to perform a term, covenant, condition or provision which
results in the occurrence of an Event of Default addressed in any other
provision or paragraph of this Section 10.1, (ii) any failure to perform any
such term, covenant, condition or provision that has been the subject of two (2)
previous failures within the prior twelve (12) month period or (iii) an
intentional breach by any Borrower of such term, covenant, condition or
provision;

                  (d) any representation, warranty or statement of fact made by
any Borrower to Lender in this Agreement, the other Financing Agreements or any
other agreement, schedule, confirmatory assignment or otherwise shall when made
or deemed made be false or misleading in any material respect;

                  (e) any Obligor revokes or terminates any of the terms,
covenants, conditions or provisions of any guarantee, endorsement or other
agreement of such party in favor of Lender;

                  (f) any judgment for the payment of money is rendered against
any Borrower or any Obligor in excess of Two Million Five Hundred Thousand
Dollars ($2,500,000) in any one case or in excess of Five Million Dollars
($5,000,000) in the aggregate and shall remain undischarged or unvacated for a
period in excess of thirty (30) days or execution shall at any time not be
effectively stayed, or any material judgment other than for the payment of
money, or injunction, attachment, garnishment or execution is rendered against
any Borrower or any Obligor or any of their assets;

                  (g) any Borrower or any Obligor, which is a partnership,
limited liability company, or corporation, dissolves or suspends or discontinues
doing business;

                  (h) any Borrower or any Obligor becomes unable generally to
pay its debts as they become due, makes an assignment for the benefit of
creditors, makes or sends notice of a bulk transfer or calls a meeting of its
creditors or principal creditors (other than the holders of the Senior Notes);

                                       48
<PAGE>

                  (i) a case or proceeding under the bankruptcy laws of the
United States of America now or hereafter in effect or under any insolvency,
reorganization, receivership, readjustment of debt, dissolution or liquidation
law or statute of any jurisdiction now or hereafter in effect (whether at law or
in equity) is filed against any Borrower or any Obligor or all or any part of
its properties and any Borrower or any Obligor shall file any answer admitting
or not contesting such petition or application or indicates its consent to,
acquiescence in or approval of, any such action or proceeding or such petition
or application is not dismissed within ninety (90) days after the date of its
filing or the relief requested is granted sooner; PROVIDED HOWEVER,
notwithstanding anything to the contrary set forth herein, Lender shall have no
obligation to advance any Loans or provide any Letter of Credit Accommodations
during any period that such petition or application remains pending;

                  (j) a case or proceeding under the bankruptcy laws of the
United States of America now or hereafter in effect or under any insolvency,
reorganization, receivership, readjustment of debt, dissolution or liquidation
law or statute of any jurisdiction now or hereafter in effect (whether at a law
or equity) is filed by any Borrower or for all or any Obligor or for all or any
part of its property;

                  (k) any default by any Borrower or any Obligor under any
agreement, document or instrument relating to any indebtedness for borrowed
money owing to any person other than Lender, or any capitalized lease
obligations, contingent indebtedness in connection with any guarantee, letter of
credit, indemnity or similar type of instrument in favor of any person other
than Lender, in any case in an amount in excess of Two Million Five Hundred
Thousand Dollars ($2,500,000), which default continues for more than the
applicable cure period, if any, with respect thereto;

                  (l) GLC ceases to hold, directly or indirectly, all of the
Capital Stock of any Borrower or any Person or group (as defined in Section
13(d) of the Securities Exchange Act of 1934, as amended) other than entities
owned or managed by Oaktree Capital Management LLC or William E. Simon & Sons
becomes the direct or indirect beneficial owner (as defined in Rules 13d-3 and
13d-5 of the Securities Exchange Act of 1934, as amended, provided that a Person
or group shall be deemed to have "beneficial ownership" of all securities that
such Person or group has the right to acquire, whether such right is exercisable
immediately or only after the passage of time) of a higher percentage of the
Capital Stock of GLC than the percentage then beneficially owned by entities
owned or managed by Oaktree Capital Management LLC and William E. Simon & Sons;

                  (m) the indictment or threatened indictment of any Borrower or
any Obligor under any criminal statute, or the commencement or threatened
commencement of criminal or civil proceedings against any Borrower or any
Obligor, pursuant to which statute or proceedings the penalties or remedies
sought or available include forfeiture of any of the material property of such
Borrower or such Obligor;

                  (n) GLC shall fail to maintain, at all times, Adjusted Net
Worth of not less than negative Eighty Two Million Dollars (-$82,000,000) and
such failure shall continue for fifteen (15) days after the earlier of the date
of receipt by Lender of monthly financial statements of GLC for such fiscal
month or the date that such financial statements are due to be delivered to

                                       49
<PAGE>

Lender pursuant to Section 9.6(a) hereof; PROVIDED THAT, such fifteen (15) day
period shall not apply in the event of a failure by GLC to maintain such
Adjusted Net Worth in the prior twelve (12) month period; PROVIDED FURTHER THAT,
such dollar amount shall be increased or decreased on a dollar for dollar basis
by the amount that Adjusted Net Worth of GLC as set forth in its audited
financial statements for its 1999 fiscal year is adjusted based solely on any
non-cash items to exceed or be less than negative Fifty Two Million Eight
Hundred Thousand Dollars (-$52,800,000);

                  (o) Borrowers, GL Canada and GL UK shall fail to maintain in
the aggregate, as of the end of any fiscal year of Borrowers, Adjusted Net Worth
of not less than negative Six Million Dollars (-$6,000,000) and such failure
shall continue for fifteen (15) days after the earlier of the date of receipt by
Lender of the annual financial statements of GLC for such fiscal year or the
date that such financial statements are due to be delivered to Lender pursuant
to Section 9.6(a) hereof; PROVIDED THAT, such fifteen (15) day period shall not
apply in the event of a failure by Borrowers, GL Canada and GL UK to maintain
such Adjusted Net Worth in the prior twelve (12) month period; PROVIDED FURTHER
THAT, such dollar amount shall be increased or decreased on a dollar for dollar
basis by the amount that the aggregate Adjusted Net Worth of Borrowers, GL
Canada and GL UK as set forth in GLC's audited financial statements for its 1999
fiscal year is adjusted based solely on any non-cash items to exceed or be less
than Ten Million Seven Hundred Fifty Thousand Dollars ($10,750,000);

                  (p) any default by GL UK or GL Canada or an "Event of Default"
shall occur under the terms of the UK Loan Agreement or the Canadian Loan
Agreement or any other agreement, document, note and/or instrument executed or
delivered in connection therewith;

                  (q) without the prior written consent of Lender, which consent
shall not be unreasonably withheld, GLC or any Subsidiary of GLC (other than
Borrowers, GL UK or GL Canada), in connection with sales of all or substantially
all the assets of a Subsidiary of GLC (other than Borrowers, GL UK or GL Canada)
or sales of all the Capital Stock of a Subsidiary of GLC (other than Borrowers,
GL UK or GL Canada), sells or agrees to sell assets or Capital Stock having a
fair market value in excess of Twenty Five Million Dollars ($25,000,000) in the
aggregate at any time during the term of this Agreement;

                  (r) there shall be a material adverse change in the business,
assets or condition (financial or otherwise) of any Borrower or any Obligor
after the date hereof; or

                  (s) there shall be an event of default under any of the other
Financing Agreements.

         10.2     REMEDIES.

                  (a) At any time an Event of Default exists or has occurred and
is continuing, Lender shall have all rights and remedies provided in this
Agreement, the other Financing Agreements, the Uniform Commercial Code and other
applicable law, all of which rights and remedies may be exercised without notice
to or consent by any Borrower or any Obligor, except as such notice or consent
is expressly provided for hereunder or required by applicable law. All rights,
remedies and powers granted to Lender hereunder, under any of the other
Financing

                                       50
<PAGE>

Agreements, the Uniform Commercial Code or other applicable law, are
cumulative, not exclusive and enforceable, in Lender's discretion,
alternatively, successively, or concurrently on any one or more occasions,
and shall include, without limitation, the right to apply to a court of
equity for an injunction to restrain a breach or threatened breach by any
Borrower of this Agreement or any of the other Financing Agreements. Lender
may, at any time or times, proceed directly against any Borrower or any
Obligor to collect the Obligations without prior recourse to the Collateral.

                  (b) Without limiting the foregoing, at any time an Event of
Default exists or has occurred and is continuing, Lender may, in its discretion
and without limitation, (i) accelerate the payment of all Obligations and demand
immediate payment thereof to Lender (PROVIDED, THAT, upon the occurrence of any
Event of Default described in Sections 10.1(i) and 10.1(j) with respect to any
Borrower, all Obligations of such Borrower shall automatically become
immediately due and payable and the Obligations of all other Borrowers shall
become immediately due and payable upon demand by Lender), (ii) with or without
judicial process or the aid or assistance of others, enter upon any premises on
or in which any of the Collateral may be located and take possession of the
Collateral or complete processing, manufacturing and repair of all or any
portion of the Collateral, (iii) require any Borrower, at Borrowers' expense, to
assemble and make available to Lender any part or all of the Collateral at any
place and time designated by Lender, (iv) collect, foreclose, receive,
appropriate, setoff and realize upon any and all Collateral, (v) remove any or
all of the Collateral from any premises on or in which the same may be located
for the purpose of effecting the sale, foreclosure or other disposition thereof
or for any other purpose, (vi) sell, lease, transfer, assign, deliver or
otherwise dispose of any and all Collateral (including, without limitation,
entering into contracts with respect thereto, public or private sales at any
exchange, broker's board, at any office of Lender or elsewhere) at such prices
or terms as Lender may deem reasonable, for cash, upon credit or for future
delivery, with the Lender having the right to purchase the whole or any part of
the Collateral at any such public sale, all of the foregoing being free from any
right or equity of redemption of any Borrower, which right or equity of
redemption is hereby expressly waived and released by such Borrower and/or (vii)
terminate this Agreement. If any of the Collateral is sold or leased by Lender
upon credit terms or for future delivery, the Obligations shall not be reduced
as a result thereof until payment therefor is finally collected by Lender. If
notice of disposition of Collateral is required by law, five (5) days prior
notice by Lender to Borrowers designating the time and place of any public sale
or the time after which any private sale or other intended disposition of
Collateral is to be made, shall be deemed to be reasonable notice thereof and
each Borrower waives any other notice. In the event Lender institutes an action
to recover any Collateral or seeks recovery of any Collateral by way of
prejudgment remedy, each Borrower waives the posting of any bond which might
otherwise be required.

                  (c) Lender may apply the cash proceeds of Collateral actually
received by Lender from any sale, lease, foreclosure or other disposition of the
Collateral to payment of the Obligations, in whole or in part and in such order
as Lender may elect, whether or not then due. Borrowers shall remain liable to
Lender for the payment of any deficiency with interest at the highest rate
provided for herein and all costs and expenses of collection or enforcement,
including attorneys' fees and legal expenses.

                                       51
<PAGE>

                  (d) Without limiting the foregoing, upon the occurrence of an
Event of Default or an event which with notice or passage of time or both would
constitute an Event of Default, Lender may, at its option, without notice, (i)
cease making Loans or arranging Letter of Credit Accommodations or reduce the
lending formulas or amounts of Loans and Letter of Credit Accommodations
available to any Borrower and/or (ii) terminate any provision of this Agreement
providing for any future Loans or Letter of Credit Accommodations to be made by
Lender to any Borrower.

SECTION 11. JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW.

         11.1 GOVERNING LAW; CHOICE OF FORUM; SERVICE OF PROCESS; JURY TRIAL
WAIVER.

                  (a) The validity, interpretation and enforcement of this
Agreement and the other Financing Agreements and any dispute arising out of the
relationship between the parties hereto, whether in contract, tort, equity or
otherwise, shall be governed by the internal laws of the State of California
applicable to contracts made and performed in such State.

                  (b) Each Borrower and Lender irrevocably consent and submit to
the non-exclusive jurisdiction of the state courts of the County of Los Angeles,
State of California and of the United States District Court for the Central
District of California and waive any objection based on venue or FORUM NON
CONVENIENS with respect to any action instituted therein arising under this
Agreement or any of the other Financing Agreements or in any way connected with
or related or incidental to the dealings of the parties hereto in respect of
this Agreement or any of the other Financing Agreements or the transactions
related hereto or thereto, in each case whether now existing or hereafter
arising, and whether in contract, tort, equity or otherwise, and agree that any
dispute with respect to any such matters shall be heard only in the courts
described above (provided that nothing herein shall preclude Lender from
bringing any action or proceeding against any Borrower or its property in the
courts of any other jurisdiction which Lender deems necessary or appropriate in
order to realize on the Collateral or to otherwise enforce its rights against
such Borrower or its property).

                  (c) EACH BORROWER AND LENDER EACH HEREBY WAIVES ANY RIGHT TO
TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER
THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR (ii) IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN
RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE
TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. EACH
BORROWER AND LENDER EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND
THAT SUCH BORROWER OR LENDER MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS
AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                                       52
<PAGE>

                  (d) Lender shall not have any liability to any Borrower
(whether in tort, contract, equity or otherwise) for losses suffered by any
Borrower in connection with, arising out of, or in any way related to the
transactions or relationships contemplated by this Agreement, or any act,
omission or event occurring in connection herewith, unless it is determined by a
final and non-appealable judgment or court order binding on Lender, that the
losses were the result of acts or omissions constituting gross negligence or
willful misconduct.

         11.2 WAIVER OF NOTICES. Each Borrower hereby expressly waives demand,
presentment, protest and notice of protest and notice of dishonor with respect
to any and all instruments and commercial paper, included in or evidencing any
of the Obligations or the Collateral, and any and all other demands and notices
of any kind or nature whatsoever with respect to the Obligations, the Collateral
and this Agreement, except such as are expressly provided for herein. No notice
to or demand on any Borrower which Lender may elect to give shall entitle any
Borrower to any other or further notice or demand in the same, similar or other
circumstances.

         11.3 AMENDMENTS AND WAIVERS. Neither this Agreement nor any provision
hereof shall be amended, modified, waived or discharged orally or by course of
conduct, but only by a written agreement signed by an authorized officer of
Lender and each Borrower. Lender shall not, by any act, delay, omission or
otherwise be deemed to have expressly or impliedly waived any of its rights,
powers and/or remedies unless such waiver shall be in writing and signed by an
authorized officer of Lender. Any such waiver shall be enforceable only to the
extent specifically set forth therein. A waiver by Lender of any right, power
and/or remedy on any one occasion shall not be construed as a bar to or waiver
of any such right, power and/or remedy which Lender would otherwise have on any
future occasion, whether similar in kind or otherwise.

         11.4 WAIVER OF COUNTERCLAIMS. Each Borrower waives all rights to
interpose any claims, deductions, setoffs or counterclaims of any nature (other
than compulsory counterclaims) in any action or proceeding with respect to this
Agreement, the Obligations, the Collateral or any matter arising therefrom or
relating hereto or thereto.

         11.5 INDEMNIFICATION. Each Borrower shall indemnify and hold Lender,
and its directors, agents, employees and counsel, harmless from and against any
and all losses, claims, damages, liabilities, costs or expenses imposed on,
incurred by or asserted against any of them in connection with any litigation,
investigation, claim or proceeding commenced or threatened related to the
negotiation, preparation, execution, delivery, enforcement, performance or
administration of this Agreement, any other Financing Agreements, or any
undertaking or proceeding related to any of the transactions contemplated hereby
or any act, omission, event or transaction related or attendant thereto,
including, without limitation, amounts paid in settlement, court costs, and the
fees and expenses of counsel except as a result of Lender's gross negligence or
willful misconduct. To the extent that the undertaking to indemnify, pay and
hold harmless set forth in this Section 11.5 may be unenforceable because it
violates any law or public policy, each Borrower shall pay the maximum portion
which it is permitted to pay under applicable law to Lender in satisfaction of
indemnified matters under this Section 11.5. The foregoing indemnity shall
survive the payment of the Obligations and the termination or non-renewal of
this Agreement.

                                       53
<PAGE>

SECTION 12.       TERM OF AGREEMENT; MISCELLANEOUS.

         12.1     TERM.

                  (a) This Agreement and the other Financing Agreements shall
become effective as of the date set forth on the first page hereof and shall
continue in full force and effect for a term ending on the date three (3) years
from the date hereof (the "RENEWAL DATE"), and from year to year thereafter,
unless sooner terminated pursuant to the terms hereof. NOTWITHSTANDING ANYTHING
TO THE CONTRARY SET FORTH HEREIN, THIS AGREEMENT AND THE OTHER FINANCING
AGREEMENTS SHALL IMMEDIATELY TERMINATE UPON THE TERMINATION OF EITHER THE UK
FACILITY OR THE CANADIAN FACILITY. Borrowers (collectively, but not
individually) or Lender may terminate this Agreement and the other Financing
Agreements effective on the Renewal Date or on the anniversary of the Renewal
Date in any year by giving to the other party at least sixty (60) days prior
written notice. Borrowers (collectively, but not individually) may terminate
this Agreement prior to the end of the then current term, including any renewal
term, for any reason prior to or on the first anniversary date of this Agreement
upon forty-five (45) days prior written notice to Lender and for any reason
thereafter upon thirty (30) days prior written notice to Lender, and in each
such case Borrowers agree to pay to Lender the applicable early termination fee
provided for in Section 12.1(c) hereof. Regardless of the timing of termination,
this Agreement and all other Financing Agreements must be terminated
simultaneously. Upon the effective date of termination or non-renewal of the
Financing Agreements, Borrowers shall pay to Lender, in full, all outstanding
and unpaid Obligations and shall furnish cash collateral to Lender in such
amounts as Lender determines are reasonably necessary to secure Lender from
loss, cost, damage or expense, including attorneys' fees and legal expenses, in
connection with any contingent Obligations, including issued and outstanding
Letter of Credit Accommodations and checks or other payments provisionally
credited to the Obligations and/or as to which Lender has not yet received final
and indefeasible payment. Such cash collateral shall be remitted by wire
transfer in Federal funds to such bank account of Lender, as Lender may, in its
discretion, designate in writing to Borrowers for such purpose. Interest shall
be due until and including the next Business Day, if the amounts so paid by
Borrowers to the bank account designated by Lender are received in such bank
account later than 10:30 a.m., Los Angeles time.

                  (b) No termination of this Agreement or the other Financing
Agreements shall relieve or discharge any Borrower of its respective duties,
obligations and covenants under this Agreement or the other Financing Agreements
until all Obligations have been fully and finally discharged and paid, and
Lender's continuing security interest in the Collateral and the rights and
remedies of Lender hereunder, under the other Financing Agreements and
applicable law, shall remain in effect until all such Obligations have been
fully and finally discharged and paid.

                  (c) If for any reason this Agreement is terminated prior to
the end of the then current term or a renewal term of this Agreement or if prior
to that time Borrowers reduce any part of the unused Maximum Credit (which they
may collectively do from time to time upon five (5) days notice to Lender), in
view of the impracticality and extreme difficulty of ascertaining actual damages
and by mutual agreement of the parties as to a reasonable calculation of
Lender's lost profits as a result thereof, Borrowers agree to pay to Lender,
upon the effective date of such

                                       54
<PAGE>

termination or reduction, an early termination or reduction fee in the amount
set forth below if such termination or reduction is effective in the period
indicated:

<TABLE>
<CAPTION>

                                       AMOUNT                                        PERIOD
<S>              <C>                                              <C>
      (i)         2.0% of the Maximum Credit in the event of a      from the date of this Agreement to and
                  termination or of the reduced portion of the      including the first anniversary of this
                  Maximum Credit in the event of a reduction        Agreement

      (ii)        1.0% of the Maximum Credit in the event of a      from the day immediately succeeding the first
                  termination or of the reduced portion of the      anniversary of this Agreement to and including
                  Maximum Credit in the event of a reduction        the second anniversary of this Agreement

     (iii)        0.5% of the Maximum Credit in the event of a      from the day immediately succeeding the second
                  termination or of the reduced portion of the      anniversary of this Agreement and thereafter,
                  Maximum Credit in the event of a reduction        including any period during a renewal term, if
                                                                    any, but excluding the Renewal Date or any
                                                                    anniversary of the Renewal Date.
</TABLE>

Such early termination or reduction fee shall be presumed to be the amount of
damages sustained by Lender as a result of such early termination or reduction
and each Borrower agrees that it is reasonable under the circumstances currently
existing. Lender shall be entitled to such early termination or reduction fee
upon the occurrence of any Event of Default described in Sections 10.1(i) and
10.1(j) hereof, even if Lender does not exercise its right to terminate this
Agreement, but elects, at its option, to provide financing to Borrowers or
permit the use of cash collateral under the United States Bankruptcy Code. Such
early termination or reduction fee shall be allocated among Borrowers as
determined by Lender and payable by Borrowers in accordance with such
allocation. The early termination or reduction fee provided for in this Section
12.1 shall be deemed included in the Obligations.

         12.2 NOTICES. All notices, requests and demands hereunder shall be in
writing and (a) made to Lender at its address set forth below and to Borrowers
at their respective chief executive office set forth below, or to such other
address as either party may designate by written notice to the other in
accordance with this provision, and (b) deemed to have been given or made: if
delivered in person, immediately upon delivery; if by telex, telegram or
facsimile transmission, immediately upon sending and upon confirmation of
receipt; if by nationally recognized overnight courier service with instructions
to deliver the next Business Day, upon receipt.

         12.3 PARTIAL INVALIDITY. If any provision of this Agreement is held to
be invalid or unenforceable, such invalidity or unenforceability shall not
invalidate this Agreement as a whole, but this Agreement shall be construed as
though it did not contain the particular provision held to

                                       55
<PAGE>

be invalid or unenforceable and the rights and obligations of the parties
shall be construed and enforced only to such extent as shall be permitted by
applicable law.

         12.4 SUCCESSORS. This Agreement, the other Financing Agreements and any
other document referred to herein or therein shall be binding upon and inure to
the benefit of and be enforceable by Lender, each Borrower and their respective
successors and assigns, except that no Borrower may assign its rights under this
Agreement, the other Financing Agreements and any other document referred to
herein or therein without the prior written consent of Lender. Lender may, after
notice to Borrowers, assign its rights and delegate its obligations under this
Agreement and the other Financing Agreements and further may assign, or sell
participations in, all or any part of the Loans, the Letter of Credit
Accommodations or any other interest herein to another financial institution or
other person, in which event, the assignee or participant shall have, to the
extent of such assignment or participation, the same rights and benefits as it
would have if it were the Lender hereunder, except as otherwise provided by the
terms of such assignment or participation.

         12.5 ENTIRE AGREEMENT. This Agreement, the other Financing Agreements,
any supplements hereto or thereto, and any instruments or documents delivered or
to be delivered in connection herewith or therewith represents the entire
agreement and understanding concerning the subject matter hereof and thereof
between the parties hereto, and supersede all other prior agreements,
understandings, negotiations and discussions, representations, warranties,
commitments, proposals, offers and contracts concerning the subject matter
hereof, whether oral or written.

         12.6 PUBLICITY. Each Borrower consents to Lender publishing a tombstone
or similar advertising material relating to the financing transaction
contemplated by this Agreement provided that, Borrowers shall have had a
reasonable opportunity to review and comment thereon.

         12.7 CONFIDENTIAL INFORMATION. Lender agrees to hold, in accordance
with its customary procedures for handling confidential information and safe and
sound lending practices, any confidential information that it may receive from
any Borrower or GLC pursuant to this Agreement in confidence, EXCEPT for
disclosure:

                  (a) to legal counsel, accountants, auditors and other
professional advisors to any Borrower or GLC or Lender;

                  (b) to regulatory officials having jurisdiction over Lender;

                  (c) as required by applicable law or legal process (PROVIDED
that in the event Lender is so required to disclose any such confidential
information, that Lender shall endeavor promptly to notify the Borrowers, so
that the Borrowers may seek a protective order or other appropriate remedy) or
in connection with any legal proceeding to which Lender or the Borrowers are
adverse parties;

                  (d) to another financial institution or its counsel in
connection with an assignment or disposition or proposed assignment or
disposition to that financial institution of all or part of Lender's interests
hereunder or a participation interest herein, provided that such

                                       56
<PAGE>

disclosure is made subject to an appropriate confidentiality agreement on
terms substantially similar to this Section; and

                  (e) to prospective purchasers of any Collateral (OTHER than
competitors of any Borrower or GLC or its Subsidiaries unless all Obligations
are then due and payable) in connection with any disposition thereof, PROVIDED
that such disclosure is made subject to an appropriate confidentiality agreement
on terms substantially similar to this Section.

         For purposes of the foregoing, "confidential information" shall mean
all information respecting any Borrower or GLC, OTHER THAN (x) information
previously filed with any governmental agency and available to the public, (y)
information previously published in any public medium from a source other than,
directly or indirectly, Lender, and (z) information previously disclosed by GLC
or any of its Subsidiaries to any Person not associated with GLC without a
written confidentiality agreement.

         Nothing in this Section shall be construed to create or give rise to
any fiduciary duty on the part of Lender to GLC or its Subsidiaries.

SECTION 13.       JOINT AND SEVERAL LIABILITY AND SURETYSHIP WAIVERS.

         13.1 INDEPENDENT OBLIGATIONS; SUBROGATION. The obligations of each
Borrower, as guarantor of another Borrower's Obligations hereunder are joint and
several. To the maximum extent permitted by law, each Borrower hereby waives any
claim, right or remedy which either may now have or hereafter acquire against
any other Borrower that arises hereunder including, without limitation, any
claim, remedy or right of subrogation, reimbursement, exoneration, contribution,
indemnification, or participation in any claim, right or remedy of Lender
against any Borrower or any Collateral which Lender now has or hereafter
acquires, whether or not such claim, right or remedy arises in equity, under
contract, by statute, under common law or otherwise until the Obligations are
fully paid and finally discharged. In addition, each Borrower hereby waives any
right to proceed against the other Borrower, now or hereafter, for contribution,
indemnity, reimbursement, and any other suretyship rights and claims, whether
direct or indirect, liquidated or contingent, whether arising under express or
implied contract or by operation of law, which any Borrower may now have or
hereafter have as against the other Borrower with respect to the Obligations
until the Obligations are fully paid and finally discharged. Each Borrower also
hereby waives any rights of recourse to or with respect to any asset of the
other Borrower until the Obligations are fully paid and finally discharged.

         13.2 AUTHORITY TO MODIFY OBLIGATIONS AND SECURITY. Each Borrower
authorizes Lender, without notice or demand and without affecting any Borrower's
liability hereunder, from time to time, whether before or after any notice of
termination hereof or before or after any default in respect of the Obligations,
to: (i) renew, extend, accelerate, or otherwise change the time for payment of,
or otherwise change any other term or condition of, any document or agreement
evidencing or relating to any Obligations as such Obligations relate to the
other Borrower, including, without limitation, to increase or decrease the rate
of interest thereon; (ii) accept, substitute, waive, defease, increase, release,
exchange or otherwise alter any Collateral, in whole or in part, securing the
other Borrower's Obligations; (iii) apply any and all such Collateral and

                                       57
<PAGE>

direct the order or manner of sale thereof as Lender, in its sole discretion,
may determine; (iv) deal with the other Borrower as Lender may elect; (v) in
Lender's sole discretion, settle, release on terms satisfactory to Lender, or
by operation of law or otherwise, compound, compromise, collect or otherwise
liquidate any of the other Borrower's Obligations and/or any of the
Collateral in any manner, and bid and purchase any of the collateral at any
sale thereof; (vi) apply any and all payments or recoveries from the other
Borrower as Lender, in its sole discretion, may determine, whether or not
such indebtedness relates to the Obligations; all whether such Obligations
are secured or unsecured or guaranteed or not guaranteed by others; and (vii)
apply any sums realized from Collateral furnished by the other Borrower upon
any of its indebtedness or obligations to Lender as Lender, in its sole
discretion, may determine, whether or not such indebtedness relates to the
Obligations; all without in any way diminishing, releasing or discharging the
liability of any Borrower hereunder.

         13.3 WAIVER OF DEFENSES. Upon an Event of Default by any Borrower in
respect of any Obligations, Lender may, at its option and without notice to the
Borrowers, proceed directly against any Borrower to collect and recover the full
amount of the liability hereunder, or any portion thereof, and each Borrower
waives any right to require Lender to: (i) proceed against the other Borrower or
any other person whomsoever; (ii) proceed against or exhaust any Collateral
given to or held by Lender in connection with the Obligations; (iii) give notice
of the terms, time and place of any public or private sale of any of the
Collateral except as otherwise provided herein; or (iv) pursue any other remedy
in Lender's power whatsoever. A separate action or actions may be brought and
prosecuted against any Borrower whether or not action is brought against the
other Borrower and whether the other Borrower be joined in any such action or
actions; and each Borrower waives the benefit of any statute of limitations
affecting the liability hereunder or the enforcement hereof, and agrees that any
payment of any Obligations or other act which shall toll any statute of
limitations applicable thereto shall similarly operate to toll such statute of
limitations applicable to the liability hereunder.

         13.4 EXERCISE OF LENDER'S RIGHTS. Each Borrower hereby authorizes and
empowers Lender in its sole discretion, without any notice or demand to such
Borrower whatsoever and without affecting the liability of such Borrower
hereunder, to exercise any right or remedy which Lender may have available to it
against the other Borrower.

         13.5 ADDITIONAL WAIVERS. Each Borrower waives any defense arising by
reason of any disability or other defense of the other Borrower or by reason of
the cessation from any cause whatsoever of the liability of the other Borrower
or by reason of any act or omission of Lender or others which directly or
indirectly results in or aids the discharge or release of the other Borrower or
any Obligations or any Collateral by operation of law or otherwise. The
Obligations shall be enforceable against each Borrower without regard to the
validity, regularity or enforceability of any of the Obligations with respect to
any of the other Borrower or any of the documents related thereto or any
collateral security documents securing any of the Obligations. No exercise by
Lender of, and no omission of Lender to exercise, any power or authority
recognized herein and no impairment or suspension of any right or remedy of
Lender against any Borrower or any Collateral shall in any way suspend,
discharge, release, exonerate or otherwise affect any of the Obligations or any
Collateral furnished by the other Borrowers or give to the other Borrowers any
right of recourse against Lender. The Borrowers specifically agree that the
failure of Lender: (i) to perfect any lien on or security interest in any
property heretofore or

                                       58
<PAGE>

hereafter given by Borrowers to secure payment of the Obligations, or to
record or file any document relating thereto or (ii) to file or enforce a
claim against the estate (either in administration, bankruptcy or other
proceeding) of any Borrower shall not in any manner whatsoever terminate,
diminish, exonerate or otherwise affect the liability of any other Borrower
hereunder.

         13.6 ADDITIONAL INDEBTEDNESS. Additional Obligations may be created
from time to time at the request of any Borrower and without further
authorization from or notice to any other Borrower even though the borrowing
Borrower's financial condition may deteriorate since the date hereof. Each
Borrower waives the right, if any, to require Lender to disclose to such
Borrower any information it may now have or hereafter acquire concerning the
other Borrower's character, credit, Collateral, financial condition or other
matters. Each Borrower has established adequate means to obtain from the other
Borrower on a continuing basis financial and other information pertaining to
such Borrower's business and affairs, and assumes the responsibility for being
and keeping informed of the financial and other conditions of the other Borrower
and of all circumstances bearing upon the risk of nonpayment of the Obligations
which diligent inquiry would reveal. Lender need not inquire into the powers of
any of the Borrowers or the authority of any of their respective officers,
directors, partners or agents acting or purporting to act in their behalf, and
any obligations created in reliance upon the purported exercise of such power or
authority is hereby guaranteed. All obligations of Borrowers to Lender
heretofore, now or hereafter created shall be deemed to have been granted at
Borrowers' special insistence and request and in consideration of and in
reliance upon this Agreement.

         13.7 NOTICES, DEMANDS, ETC. Except as expressly provided by this
Agreement, Lender shall be under no obligation whatsoever to make or give to any
Borrower, and each Borrower hereby waives diligence, all rights of setoff and
counterclaim against Lender, all demands, presentments, protests, notices of
protests, notices of protests, notices of nonperformance, notices of dishonor,
and all other notices of every kind or nature, including notice of the
existence, creation or incurring of any new or additional Obligations.

         13.8 REVIVAL. If any payments of money or transfers of property made to
Lender by any Borrower should for any reason subsequently be declared to be, or
in Lender's counsel's good faith opinion be determined to be, fraudulent (within
the meaning of any state or federal law relating to fraudulent conveyances),
preferential or otherwise voidable or recoverable in whole or in part for any
reason (hereinafter collectively called "VOIDABLE TRANSFERS") under the
Bankruptcy Code or any other federal or state law and Lender is required to
repay or restore, or in Lender's counsel's opinion may be so liable to repay or
restore, any such voidable transfer, or the amount or any portion thereof, then
as to any such voidable transfer or the amount repaid or restored and all
reasonable costs and expenses (including reasonable attorneys' fees) of Lender
related thereto, each other Borrower's liability hereunder shall automatically
be revived, reinstated and restored and shall exist as though such voidable
transfer had never been made to Lender.

         13.9 UNDERSTANDING OF WAIVERS. Each Borrower warrants and agrees that
the waivers set forth in this Section 13 are made with full knowledge of their
significance and consequences. If any of such waivers are determined to be
contrary to any applicable law or public policy, such waivers shall be effective
only to the maximum extent permitted by law.

                                       59

<PAGE>
         IN WITNESS WHEREOF, Lender and each Borrower have caused these presents
to be duly executed as of the day and year first above written.

<TABLE>
<CAPTION>

LENDER                                           BORROWERS
------                                           ---------
<S>                                              <C>
CONGRESS FINANCIAL CORPORATION (WESTERN),        GEOLOGISTICS SERVICES, INC.,
a California corporation                         a Delaware corporation

By:________________________________________      By:__________________________________
Name:______________________________________      Name: Terry G. Clarke
Title:_____________________________________      Title: Assistant Treasurer

ADDRESS                                          CHIEF EXECUTIVE OFFICE
-------                                          ----------------------

251 South Lake Avenue, Suite 900                 205 Whiting Street
Pasadena, California 91101                       Alexandria, Virginia 22304

                                                 or, on and after ________, 2000:

                                                 330 South Mannheim Road
                                                 Hillside, Illinois 60162

                                                 BEKINS VAN LINES, LLC,
                                                 a Delaware limited liability company

                                                 By:___________________________________
                                                 Name: Terry G. Clarke
                                                 Title: Assistant Treasurer

                                                 CHIEF EXECUTIVE OFFICE
                                                 ----------------------

                                                 330 South Mannheim Road
                                                 Hillside, Illinois 60162

                                       60
<PAGE>

                                                 BEKINS WORLDWIDE SOLUTIONS, INC.,
                                                 a Delaware corporation

                                                 By:___________________________________
                                                 Name: Terry G. Clarke
                                                 Title: Assistant Treasurer

                                                 CHIEF EXECUTIVE OFFICE
                                                 ----------------------

                                                 330 South Mannheim Road
                                                 Hillside, Illinois 60162

                                                 GEOLOGISTICS AMERICAS INC.,
                                                 a Delaware corporation

                                                 By:___________________________________
                                                 Name: Terry G. Clarke
                                                 Title: Vice President

                                                 CHIEF EXECUTIVE OFFICE
                                                 ----------------------

                                                 1251 East Dyer Road, Suite 250
                                                 Santa Ana, California 92705

</TABLE>

                                       61
<PAGE>

                                    EXHIBIT A

                             Information Certificate

<PAGE>

                                    EXHIBIT B

                               Projections of GLC

<PAGE>

                                  SCHEDULE 8.1

                           Organizational Chart of GLC

<PAGE>

                                  SCHEDULE 8.4

                                   Other Liens

<PAGE>

                                  SCHEDULE 8.8

                                  Bank Accounts

<PAGE>

                                  SCHEDULE 8.9

                            Environmental Disclosures

                                  Schedule 8.9

<PAGE>

                                  SCHEDULE 9.10

                       Permitted Loans or Advances to GLC

<TABLE>
<CAPTION>

PURPOSE OF LOAN OR ADVANCE                                                            AMOUNT
<S>                                                                                 <C>
Payment of taxes of GLC                                                             $2,000,000

Capital Expenditures                                                                $5,000,000

Corporate Restructuring Expenses                                                    $2,500,000

Repurchase of stocks and warrants from current and former                           $3,000,000
employees of GLC to the extent required pursuant to
contractual requirements outstanding as of the date hereof.

General and Administrative Expenses                                                 $8,500,000

</TABLE>

                                  Schedule 9.10

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

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

SECTION 2.  CREDIT FACILITIES...................................................................................15

   2.1      Revolving Loans.....................................................................................15

   2.2      Letter of Credit Accommodations.....................................................................17

SECTION 3.  INTEREST AND FEES...................................................................................18

   3.1      Interest............................................................................................18

   3.2      Closing and Syndication Fee.........................................................................20

   3.3      Loan Servicing Fee..................................................................................20

   3.4      Unused Line Fee.....................................................................................20

   3.5      Compensation Adjustment.............................................................................20

   3.6      Changes in Laws and Increased Costs of Loans........................................................21

SECTION 4.  CONDITIONS PRECEDENT................................................................................22

   4.1      Conditions Precedent to Initial Loans and the Letter of Credit Accommodations.......................22

   4.2      Conditions Precedent to All Loans and Letter of Credit Accommodations...............................24

SECTION 5.  GRANT OF SECURITY INTEREST..........................................................................25

SECTION 6.  COLLECTION AND ADMINISTRATION.......................................................................26

   6.1      Borrowers' Loan Account.............................................................................26

   6.2      Statements..........................................................................................26

   6.3      Collection of Accounts..............................................................................26

   6.4      Payments............................................................................................27

   6.5      Authorization to Make Loans.........................................................................28

   6.6      Use of Proceeds.....................................................................................28

SECTION 7.  COLLATERAL REPORTING AND COVENANTS..................................................................28

   7.1      Collateral Reporting................................................................................28

   7.2      Accounts Covenants..................................................................................29

   7.3      Equipment Covenants.................................................................................31

   7.4      Power of Attorney...................................................................................31

   7.5      Right to Cure.......................................................................................32

   7.6      Access to Premises..................................................................................32

SECTION 8.  REPRESENTATIONS AND WARRANTIES......................................................................33

   8.1      Corporate/Company Existence, Power and Authority; Subsidiaries......................................33

                                       i
<PAGE>

   8.2      Financial Statements; No Material Adverse Change....................................................33

   8.3      Chief Executive Office; Collateral Locations........................................................33

   8.4      Priority of Liens; Title to Properties..............................................................34

   8.5      Tax Returns.........................................................................................34

   8.6      Litigation..........................................................................................34

   8.7      Compliance with Other Agreements and Applicable Laws................................................34

   8.8      Bank Accounts.......................................................................................34

   8.9      Environmental Compliance............................................................................35

   8.10     Employee Benefits...................................................................................35

   8.12     Accuracy and Completeness of Information............................................................36

   8.13     Survival of Warranties; Cumulative..................................................................36

SECTION 9.  AFFIRMATIVE AND NEGATIVE COVENANTS..................................................................37

   9.1      Maintenance of Existence............................................................................37

   9.2      New Collateral Locations............................................................................37

   9.3      Compliance with Laws, Regulations, Etc..............................................................37

   9.4      Payment of Taxes and Claims.........................................................................38

   9.5      Insurance...........................................................................................38

   9.6      Financial Statements and Other Information..........................................................39

   9.8      Encumbrances........................................................................................42

   9.9      Indebtedness........................................................................................42

   9.10     Loans, Investments, Guarantees, Etc.................................................................43

   9.11     Dividends and Redemptions...........................................................................45

   9.12     Transactions with Affiliates........................................................................45

   9.13     Additional Bank Accounts............................................................................45

   9.14     Compliance with ERISA...............................................................................46

   9.15     Costs and Expenses..................................................................................46

   9.16     Further Assurances..................................................................................47

SECTION 10. EVENTS OF DEFAULT AND REMEDIES......................................................................47

   10.1     Events of Default...................................................................................47

   10.2     Remedies............................................................................................50

                                       ii
<PAGE>

SECTION 11. JURY TRIAL WAIVER; OTHER WAIVERS AND
            CONSENTS; GOVERNING LAW.............................................................................52

   11.1     Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver...............................52

   11.2     Waiver of Notices...................................................................................53

   11.3     Amendments and Waivers..............................................................................53

   11.4     Waiver of Counterclaims.............................................................................53

   11.5     Indemnification.....................................................................................53

SECTION 12. TERM OF AGREEMENT; MISCELLANEOUS....................................................................54

   12.1     Term................................................................................................54

   12.2     Notices.............................................................................................55

   12.3     Partial Invalidity..................................................................................55

   12.4     Successors..........................................................................................56

   12.5     Entire Agreement....................................................................................56

   12.6     Publicity...........................................................................................56

   12.7     Confidential Information............................................................................56

SECTION 13. JOINT AND SEVERAL LIABILITY AND SURETYSHIP WAIVERS..................................................57

   13.1     Independent Obligations; Subrogation................................................................57

   13.2     Authority to Modify Obligations and Security........................................................57

   13.3     Waiver of Defenses..................................................................................58

   13.4     Exercise of Lender's Rights.........................................................................58

   13.5     Additional Waivers..................................................................................58

   13.6     Additional Indebtedness.............................................................................59

   13.7     Notices, Demands, Etc...............................................................................59

   13.8     Revival.............................................................................................59

   13.9     Understanding of Waivers............................................................................59

</TABLE>

                                      iii

<PAGE>

                                    INDEX TO
                             EXHIBITS AND SCHEDULES

Exhibit A                                        Information Certificate

Schedule 8.1                                     Organizational Chart of GLC

Schedule 8.4                                     Other Liens

Schedule 8.8                                     Bank Accounts

Schedule 8.9                                     Environmental Disclosures

Schedule 9.10                                    Permitted Loans or Advances
                                                 to GLC

                                       iv<PAGE>

                              DATED MARCH 31, 2000

                              GEOLOGISTICS LIMITED

                                       and

                            BURDALE FINANCIAL LIMITED

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

                               FACILITY AGREEMENT

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

<PAGE>

<TABLE>

                                    CONTENTS

<S>                                                                                                          <C>
1.    INTERPRETATION..........................................................................................1
2.    CONDITIONS PRECEDENT...................................................................................13
3.    THE FACILITY...........................................................................................14
4.    RESTRICTIONS ON UTILISATIONS...........................................................................14
5.    UTILISATION OF FACILITY................................................................................16
6.    REPAYMENT AND PREPAYMENT...............................................................................19
7.    INTEREST AND COMMISSION................................................................................21
8.    RECEIVABLES, STOCK AND EQUIPMENT.......................................................................21
9.    COLLECTION OF RECEIVABLES..............................................................................26
10.   PAYMENTS AND TAXES.....................................................................................28
11.   INCREASED COSTS........................................................................................30
12.   ILLEGALITY AND MONETARY UNION..........................................................................31
13.   GENERAL REPRESENTATIONS AND WARRANTIES.................................................................32
14.   GENERAL UNDERTAKINGS...................................................................................34
15.   EVENTS OF DEFAULT......................................................................................43
16.   COSTS, EXPENSES AND FEES...............................................................................46
17.   INDEMNITIES............................................................................................47
18.   EVIDENCE OF INDEBTEDNESS...............................................................................49
19.   NOTICES................................................................................................49
20.   WAIVER, REMEDIES CUMULATIVE............................................................................49
21.   INVALIDITY.............................................................................................50
22.   ASSIGNMENT AND PARTICIPATION...........................................................................50
23.   GOVERNING LAW AND JURISDICTION.........................................................................50
24.   DISCLOSURE OF INFORMATION..............................................................................51
25.   COUNTERPARTS...........................................................................................52

SCHEDULE 1...................................................................................................53
SCHEDULE 2...................................................................................................56
SCHEDULE 3...................................................................................................60
SCHEDULE 4...................................................................................................61
SIGNATORIES..................................................................................................63
</TABLE>

<PAGE>

THIS AGREEMENT is dated March 31, 2000

BETWEEN:

(1)        GEOLOGISTICS LIMITED (Registered in England and Wales No. 00112456)
           (the "COMPANY"); and

(2)        BURDALE FINANCIAL LIMITED (Registered in England and Wales No.
           2656007) ("BURDALE").

IT IS AGREED:

1.         INTERPRETATION

1.1        DEFINITIONS

           In this Agreement:

           "ACCOUNT DEBTOR" means a debtor of the Company in respect of a
           Receivable.

           "ACCOUNT BANKS" means each bank at which a Charged Account is held
           and which has been given and has acknowledged all notices required by
           the Debenture.

           "ACTUAL DAY OF PAYMENT" in relation to a Purchased Receivable means
           the date on which full payment in respect of that Purchased
           Receivable is made into the Blocked Accounts by the relevant Account
           Debtor or the Company.

           "AVAILABILITY LIMITS" means the Receivables Limit and the L/C Limit
           and each other limit on Utilisations specified in Clause 4.

           "AVAILABILITY PERIOD" means the period from the opening of business
           in London on today's date until close of business in London on the
           date falling five Business Days prior to the Final Repayment Date or
           such later date as Burdale may agree.

           "AVAILABILITY RESERVES" means, as of any date of determination, such
           amounts as Burdale may from time to time establish and revise in good
           faith reducing the amount for the purchase of Receivables or the
           issuance, or procurement, of L/Cs which would otherwise be available
           to the Company under the purchase formula(s) provided for herein: (a)
           to reflect events, conditions, contingencies or risks which, as
           reasonably determined by Burdale in good faith, do or may affect
           either (i) the Collateral or any other property which is security for
           the Obligations or its value, (ii) in any materially adverse respect,
           the assets, business or condition (financial or other) of the Company
           or any Obligor or (iii) the security interests and other rights of
           Burdale in the Collateral (including the enforceability, perfection
           and priority thereof) or (b) to reflect Burdale's reasonable good
           faith belief that any collateral report or financial information
           furnished by or on behalf of the Company or any Obligor to Burdale is
           or may have been incomplete, inaccurate or misleading in any material
           respect or (c) to reflect any state of facts which Burdale reasonably
           determines in good faith constitutes an Event of

<PAGE>

           Default or Default. Without limiting the generality of the foregoing,
           an Availability Reserve shall be established by Burdale from time to
           time in such amounts as Burdale may reasonably determine to reflect
           (a) that Dilution Rate as of any date with respect to the Receivables
           for the immediately preceding twelve (12) month period or for the
           immediately preceding three (3) month period (whichever percentage is
           higher) exceeds five percent (5%), (b) any variances in the ageings
           of accounts receivable provided to Burdale pursuant to Clause
           8.1(b)(i) of this Agreement, (c) any unapplied cash which has not yet
           been applied to the Receivables, and (d) any pass through receivables
           or collections for shipping charges and cost of goods owed to the
           Company by the receiving party of such goods and owed by the Company
           to the shipping party of such goods.

           "BLOCKED ACCOUNT" means each of the Company's accounts with Barclays
           Bank PLC, Broadgate CBC, 155 Bishopsgate EC2M 3XA, sort code
           20-19-90, and being:

           (a)        account number 30904813; and
           (b)        account number 60669237,

           (as the same may be redesignated, renumbered or renamed from time to
           time), or such other account as previously approved by Burdale
           (together, the "BLOCKED ACCOUNTS").

           "BORROWERS" means each of GLNS, BVL, GLS and GLA.

           "BVL" means Bekins Van Lines, LLC, a Delaware limited liability
           company.

           "BUSINESS DAY" means any day not being a Saturday, Sunday or Bank
           holiday when banks are open for business in London.

           "CANADIAN EXCESS AVAILABILITY" is defined in the Canadian Loan
           Agreement.

           "CANADIAN FACILITY" means the credit facility in the maximum amount
           of Fifteen Million Dollars ($15,000,000) (which may be adjusted from
           time to time in accordance with the terms of the Loan Agreement and
           the Canadian Loan Agreement) provided by Congress Financial
           Corporation (Canada) to GL Canada pursuant to the Canadian Loan
           Agreement

           "CANADIAN LOAN AGREEMENT" means a Loan Agreement dated on or about
           today's date between Congress Financial Corporation (Canada) and GL
           Canada, as the same now exists or may hereafter be amended, modified,
           supplemented, extended, renewed, restated or replaced.

           "CASH REQUEST" means a request for Burdale to pay to the Company an
           amount of unpaid Purchase Price and/or the proceeds of a Loan in
           substantially the form set out in Schedule 2 Part II.

           "CHARGED ACCOUNTS" means the Blocked Accounts and the Other Accounts.

<PAGE>

           "COLLATERAL" means any of the assets and undertaking of the Corporate
           Obligors charged to Burdale pursuant to the Debenture.

           "CONGRESS" means Congress Financial Corporation (Western), a
           corporation under the laws of California in the United States of
           America.

           "CORPORATE OBLIGOR" means each Obligor which is not a natural person.

           "DAILY RATE" means L500 per person per day.

           "DEBENTURE" means the debenture executed or to be executed by the
           Company in favour of Burdale.

           "DEED OF PRIORITIES" means the deed of priorities dated on or about
           the date of this Agreement made between the Company, Barclays Bank
           PLC and Burdale.

           "DEFAULT" means any Event of Default and any event which with the
           giving of notice and/or lapse of time and/or as a result of any
           Utilisation and/or determination of materiality and/or fulfilment of
           any condition (or any combination of the foregoing) may constitute an
           Event of Default.

           "DEFAULT RATE" means the rate determined by Burdale to be 2% above
           the Purchase Rate from time to time.

           "DILUTION RATE" means for any period, the ratio (expressed as a
           percentage) of (a) the aggregate amount of reductions in the
           Receivables for such period other than as a result of payments in
           cash to (b) the aggregate amount of total sales of the Company for
           such period.

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

           "EBITDA" is defined in the Loan Agreement.

           "ELIGIBLE RECEIVABLES" means, at any time, any Receivables which are
           and continue to be acceptable to Burdale at such time and which are
           not Ineligible Receivables.

           "ELIGIBLE UNBILLED RECEIVABLES" means, at any time, any Receivable:

           (a)    which is an Ineligible Receivable solely by virtue of the
                  criteria in paragraph (h) of the definition of Ineligible
                  Receivables; and

           (b)    in relation to which the provision of goods and services to
                  which such Receivable relates has been completed or is in the
                  process of completion in accordance with the terms and
                  provisions contained in any documents relating thereto; and

           (c)    which remains fully or partly unbilled no more than thirty
                  (30) days after the sale and delivery of the goods and/or the
                  completion of the services giving rise thereto.

<PAGE>

           "END DATE" in relation to an L/C means the earlier of the expiry date
           of such L/C and the date on which the L/C is drawn in full.

           "ENCUMBRANCE" means any mortgage or deed of trust, pledge,
           hypothecation, assignment, deposit arrangements, lien, charge,
           security interest, easement or encumbrance or other security
           agreement or preferential arrangement of any kind or nature
           whatsoever (including, without limitation, any agreement to sell or
           otherwise dispose of any assets on terms whereby any such asset may
           be leased to or reacquired or acquired by any Obligor or any title
           retention agreement having substantially the same economic effect as
           any of the foregoing).

           "EQUIPMENT" means all the Company's present and future equipment,
           machinery, computers and computer hardware and software (whether
           owned or licensed), vehicles, tools, furniture and fixtures and all
           attachments, accessories and property now or in future relating to
           them or used in connection with them and replacements and
           substitutions for them wherever located.

           "EVENT OF DEFAULT" means any of the events specified in Clause 15.1.

           "EXCHANGE RATE" means the prevailing spot rate of exchange of such
           bank as Burdale may select for the purpose, at or around 11.00 a.m.
           on the date on which any conversion of currency is to be made under
           this Agreement.

           "FACILITY" means the Receivables Finance Facility.

           "FACILITY LIMIT" means the greater of L15,000,000 or $25,000,000
           (calculated at the Exchange Rate).

           "FINAL REPAYMENT DATE" means the third anniversary of today's date
           provided that if the term of the Loan Agreement shall be renewed,
           continued or extended pursuant to Section 12.1 of the Loan Agreement,
           the Final Repayment Date shall automatically be extended to the same
           day.

           "FINANCING AGREEMENTS" is defined in the Loan Agreement.

           "FINANCE DOCUMENTS" means this Agreement, the Security Documents, the
           Deed of Priorities and/or all other agreements, documents and
           instruments at any time executed and/or delivered by any Obligor or
           any Related Company in favour of Burdale (each a "FINANCE DOCUMENT").

           "FOREIGN CURRENCY" means any currency other than Sterling which is
           freely available and transferable.

           "GAAP" means accounting principles, standards and practices generally
           accepted in the United Kingdom as in effect from time to time.

           "GIFL" means GeoLogistics International Finance Ltd., a limited
           liability company organised under the laws of Ireland.

<PAGE>

           "GLA" means GeoLogistics Americas, Inc., a Delaware corporation.

           "GLC" means GeoLogistics Corporation, a Delaware Corporation.

           "GLC GUARANTEE" means the guarantee and indemnity executed or to be
           executed by GLC in favour of Burdale in relation to the obligations
           of the Company to Burdale.

           "GL BERMUDA" means GeoLogistics Holdings (Bermuda) Limited, a company
           incorporated in Bermuda.

           "GL CANADA" shall mean GeoLogistics, Co., an unlimited liability
           company under the laws of Nova Scotia, Canada.

           "GLNS" means Bekins Worldwide Solutions, Inc., a Delaware
           corporation.

           "GLS" means GeoLogistics Services, Inc., a Delaware corporation.

           "INELIGIBLE RECEIVABLES" means any Receivable:

           (a)    which does not arise from the actual and bona fide sale and
                  delivery of goods by the Company or rendering of services by
                  the Company in the ordinary course of its business which
                  transactions are completed in accordance with the terms and
                  provisions contained in any documents relating to such
                  transactions;

           (b)    which remains fully or partly unpaid after its Maturity Date
                  or such longer period as may be agreed by Burdale;

           (c)    owing by a single Account Debtor if Receivables representing
                  50% or more of the aggregate balance owing by such Account
                  Debtor to the Company are not Eligible Receivables by reason
                  of the operation of paragraph (b) above;

           (d)    with respect to which the Account Debtor is a director,
                  officer, employee, Subsidiary or affiliate of the Company;

           (e)    with respect to which the Account Debtor has or has asserted a
                  counterclaim or has a right of set off, to the extent of such
                  counterclaim or set off;

           (f)    with respect to which Burdale does not have a valid, equitable
                  assignment under the Finance Documents;

           (g)    as to which performance has not been completed by the Company
                  or as to which all goods and services in connection with such
                  Receivable have not been delivered to or performed for the
                  Account Debtor or which is not fully assignable;

           (h)    which has not been invoiced;

<PAGE>

           (i)    with respect to which the Account Debtor is the subject of any
                  bankruptcy or insolvency proceeding in any jurisdiction or has
                  made an assignment for the benefit of creditors or whose
                  assets have been conveyed to a receiver, administrator,
                  trustee or other insolvency official;

           (j)    with respect to which the Account Debtor's obligation to pay
                  the Receivable is conditional upon the Account Debtor's
                  approval or is otherwise subject to any repurchase obligation
                  or right of return, as with sales made on a bill-and-hold,
                  guaranteed sale, sale-and-return, sale on approval (except
                  with respect to Receivables in connection with which Account
                  Debtors are entitled to return goods on the basis of the
                  quality of those goods) or consignment basis;

           (k)    with respect to which any of the representations and
                  warranties contained in Clause 8.3 proves to be incorrect in
                  any respect;

           (l)    owed by an Account Debtor incorporated or resident outside the
                  United Kingdom, unless such Receivable is subject to valid and
                  enforceable credit insurance payable to Burdale issued by an
                  insurer on terms and in an amount acceptable to Burdale as
                  determined by it in good faith and the aggregate invoice
                  values owed by that relevant Account Debtor are within the
                  insured limit;

           (m)    owed by an Account Debtor whose total indebtedness to the
                  Company, as determined by the Company in good faith, exceeds
                  any credit limit set by Burdale from time to time with respect
                  to that Account Debtor and communicated to the Company in
                  writing prior to the date of determination to the extent such
                  Receivable breaches that credit limit provided that any
                  reduction in the credit limit as to a particular Account
                  Debtor will not cause any Receivables owing by that Account
                  Debtor as of the date of such reduction not to qualify as
                  Eligible Receivables;

           (n)    where there are facts, events or occurrences which would
                  impair the validity or enforceability of or otherwise the
                  legal right to collect that Receivable or would give the
                  Account Debtor relating to that Receivable the legal right to
                  reduce the amount payable or delaying payment of that
                  Receivable; and

           (o)    which are not Sterling Receivables.

           "L/CS" means letters of credit, merchandise purchase or other
           guarantees which are from time to time either (a) issued or opened by
           Burdale for the account of the Company or (b) with respect to which
           Burdale has agreed to indemnify the issuer or guaranteed to the
           issuer the performance by the Company of its obligations to such
           issuer.

           "L/C EXPOSURE" in relation to any L/C means an amount equal to 100%
           of the face amount of such L/C and all other commitments and
           obligations made or incurred by Burdale with respect to such L/C.

           "L/C LIMIT" means the Facility Limit provided that at any time the
           sum of the L/C exposure, the Canadian Letter of Credit Accommodations
           (as defined in the Loan

<PAGE>

           Agreement) and the Letter of Credit Accommodations (as so defined)
           shall not exceed the Sterling equivalent of $30,000,000 (calculated
           at the Exchange Rate) at such time.

           "L/C REQUEST" means a request for a Utilisation of the Receivables
           Finance Facility by way of the issue of an L/C in substantially the
           form set out in Schedule 2 Part III.

           "LIBOR" means:

           (a)    the thirty day LIBOR sterling rate quoted on the first
                  Business Day of each month in the Financial Times, London
                  edition as conclusively determined by Burdale; or

           (b)    (if for any reason the Financial Times, London edition ceases
                  or fails to quote such a rate) Burdale's cost of funds from
                  whatever source it may reasonably request.

           "LOAN AGREEMENT" means the loan and security agreement dated on or
           about today's date between Congress as Lender and GLNS, BVL, GLA and
           GLS as Borrowers.

           "MARGIN" means 2.75%, PROVIDED THAT (a) effective from the beginning
           of the interest period next following Burdale's receipt of financial
           statements of GLC for any fiscal quarter of GLC (commencing with the
           third fiscal quarter of GLC's fiscal year 2000 delivered in
           accordance with the Loan Agreement, subject to paragraph (b) below,
           the Margin shall be increased or decreased, as the case may be, to
           the Margin as set forth below based on the EBITDA of GLC for the
           consecutive four fiscal quarter period ended such fiscal quarter
           calculated based on such financial statements for such quarter as
           follows:

<TABLE>
<CAPTION>

                -------------------------- ------------------------------------------
                         MARGIN                     EBITDA OF GLC
                <S>                        <C>
                -------------------------- ------------------------------------------
                -------------------------- ------------------------------------------
                         3.00%                      Equal to or less than $10,000,000
                -------------------------- ------------------------------------------
                -------------------------- ------------------------------------------
                         2.75%                      Greater  than   $10,000,000   but
                                                    equal to or less than $30,000,000
                -------------------------- ------------------------------------------
                -------------------------- ------------------------------------------
                         2.5%                       Greater than $30,000,000
                -------------------------- ------------------------------------------
</TABLE>
           and (b) the EBITDA amounts set forth above shall be reduced by that
           portion of the EBITDA for the four (4) fiscal quarter period ended
           any such fiscal quarter that is attributable to any Subsidiary of GLC
           that has been sold or disposed of pursuant to a sale or disposition
           permitted by this Agreement, the Loan Agreement or the Canadian Loan
           Agreement.

           "MATERIAL ADVERSE EFFECT" means an effect that results in or causes,
           or has a reasonable likelihood of resulting in or causing, a material
           adverse change in any of:

           (a)    the business, performance, operations or properties of the
                  Company and the Related Companies (other than GL Bermuda)
                  taken either individually or as a whole; and/or

<PAGE>

           (b)    the ability of the Company or any Related Company (other than
                  GL Bermuda) to perform its respective obligations under any of
                  the Finance Documents; and/or

           (c)    the rights and remedies of Burdale under any Finance Document.

           "MATURITY DATE" means in respect any Receivable the Business Day
           which is, or immediately succeeds the date which is 90 days after the
           date of the invoice in respect of such Receivable, save in respect of
           Eligible Unbilled Receivables.

           "MORTGAGED PROPERTY" means any Property which is from time to time
           charged in favour of Burdale by way of a first legal mortgage.

           "OBLIGATIONS" means any and all financial accommodations made to the
           Company pursuant to this Agreement and all other obligations,
           liabilities and indebtedness of every kind, nature and description
           owing by any Obligor or Related Company to Burdale and/or its
           affiliates, including principal, interest, charges, fees, costs and
           expenses, however evidenced, whether as principal, surety, endorser,
           guarantor or otherwise, whether arising under this Agreement or
           otherwise, whether now existing or hereafter arising, whether arising
           before, during or after the initial or any renewal term of this
           Agreement, whether direct or indirect, absolute or contingent, joint
           or several, due or not due, primary or secondary, liquidated or
           unliquidated, secured or unsecured, and however acquired by Burdale.

           "OBLIGOR" means the Company and any other person who guarantees
           and/or grants security for any of the Company's indebtedness or other
           obligations to Burdale at any time, other than a Related Company.

           "OTHER ACCOUNTS" means the bank accounts of the Corporate Obligors
           specified as Other Accounts in the Debenture and/or such other bank
           accounts of the Corporate Obligors with Account Banks as Burdale may
           permit.

           "OTHER RECEIVABLES" means all Receivables which are not Sterling
           Receivables.

           "OUTSTANDING PURCHASE PRICE" means the aggregate from time to time of
           the Purchase Prices of Eligible Receivables and Eligible Unbilled
           Receivables paid to the Company in respect of which Burdale has not
           received payment from the relevant Account Debtor or the Company.

           "PAYMENT ACCOUNT" means such account in the name of Burdale, as may
           be notified to the Company by Burdale from time to time.

           "PERMITTED ACQUISITION" means any transaction, or any series of
           related transactions by which any Corporate Obligor directly or
           indirectly acquires a Subsidiary or any going business or all or
           substantially all the assets of another person and which meets each
           of the following criteria:

<PAGE>

           (a)    the aggregate consideration to be paid by such Corporate
                  Obligor in connection with such transaction or transactions
                  together with all other consideration paid by all Corporate
                  Obligors in connection with any other Permitted Acquisition,
                  and by GL Canada and any Borrower (as defined in the Loan
                  Agreement) in connection with any transaction or series of
                  transactions by which GL Canada or such Borrower, as the case
                  may be, directly or indirectly has acquired a Subsidiary or
                  any going business or all or substantially all the assets of
                  another person during the term of this Agreement, does not
                  exceed $5,000,000 (or its equivalent in other currencies);

           (b)    no Event of Default exists or has occurred and is continuing
                  immediately prior to and after giving effect to such
                  transaction or transactions; and

           (c)    Total Excess Availability is not less than Ten Million Dollars
                  ($10,000,000) (or its equivalent in other currencies) after
                  giving effect to such transaction or transactions.

           Notwithstanding anything to the contrary set forth herein, Burdale
           shall have no obligation to include any Receivable acquired pursuant
           to a Permitted Acquisition as an Eligible Receivable.

           "PROPERTY" means the Corporate Obligors' freehold, leasehold and
           rented premises and land from time to time, wherever situated and in
           any jurisdiction.

           "PURCHASE COMMISSION" is defined in Clause 7.2.

           "PURCHASE DATE" in relation to a Purchased Receivable means the date
           of delivery of a Purchase Request by the Company with respect to such
           Purchased Receivable.

           "PURCHASE PRICE" means the purchase price to be paid by Burdale for
           Purchased Receivables being:

           (a)    85% of the face value of each Eligible Receivable; and

           (b)    65% of Eligible Unbilled Receivables,

           to be purchased under the Receivables Finance Facility less maximum
           discounts, credits and allowances of any nature which may be taken by
           or granted to any Account Debtor or other person in connection with
           such Eligible Receivable or Eligible Unbilled Receivable as the case
           may be.

           "PURCHASE RATE" means the aggregate of LIBOR and the Margin.

           "PURCHASE REQUEST" means a Request for a Utilisation of the
           Receivables Finance Facility in substantially the form set out in
           Schedule 2 Part I.

           "PURCHASED RECEIVABLE" means a Receivable purchased or agreed to be
           purchased by Burdale from the Company in accordance with the terms of
           this Agreement.

<PAGE>

           "RECEIVABLE" means, at any time, the aggregate present and future
           obligations of any debtor of the Company for the payment of money to
           the Company at such time together with all connected rights, claims,
           deposits and payments.

           "RECEIVABLES FINANCE FACILITY" is defined in Clause 3.1.

           "RECEIVABLES INFORMATION" means the information regarding Receivables
           provided to Burdale pursuant to Clause 8.

           "RECEIVER" is defined in the Debenture.

           "RELATED COMPANIES" means:

           (a)    GLC; and

           (b)    GL Bermuda,

           (each a "RELATED COMPANY").

           "REQUEST" means a request substantially in the form set out in the
           relevant Part of Schedule 2 for a Utilisation of the Facility.

           "SECURITY DOCUMENTS" means the Debenture, the GLC Guarantee and any
           other guarantee or security documents executed in favour of Burdale
           from time to time in relation to the obligations or indebtedness of
           the Company.

           "SENIOR NOTES" is defined in the Loan Agreement.

           "STERLING" and "(L)" means the lawful currency for the time being
           of the United Kingdom.

           "STERLING RECEIVABLES" means all Receivables denominated in Sterling
           (each a "STERLING RECEIVABLE").

           "SUBSIDIARY" has the meaning given to that term by Section 736 of the
           Companies Act 1985 and includes a "Subsidiary Undertaking" as defined
           in Section 258 of the Companies Act 1985 (inserted by Section 21 of
           the Companies Act 1989).

           "TAXES" includes all present and future income and other taxes,
           levies, assessments, deductions, charges and withholdings of whatever
           nature together with interest, additions to tax, penalties and fines
           in relation to such items and "TAX" and "TAXATION" will be construed
           accordingly.

           "TOTAL EXCESS AVAILABILITY" means at any time, the aggregate of the
           UK Excess Availability, the US Excess Availability and the Canadian
           Excess Availability at such time.

<PAGE>

           "UK DAILY EXCESS AVAILABILITY" means from time to time the amount at
           such time by which A exceeds B where:

                     A =

                        (1)     85% of the face value of the Eligible
                                Receivables and 65% of the face value of the
                                Eligible Unbilled Receivables less maximum
                                discounts, credits and allowances of any nature
                                which may be taken by or granted to any Account
                                Debtor or any other person in connection with
                                such Eligible Receivables or Eligible Unbilled
                                Receivables as the case may be; LESS

                        (2)     the amount of Availability Reserves established
                                by Burdale; and

                     B = The aggregate amount of:

                        (3)     Outstanding Purchase Price; and

                        (4)     all L/C Exposures.

           "UK EXCESS AVAILABILITY" means from time to time the amount at such
           time by which A exceeds B where:

                     A =

                        (1)     85% of the face value of the Eligible
                                Receivables and 65% of the face value of the
                                Eligible Unbilled Receivables less maximum
                                discounts, credits and allowances of any nature
                                which may be taken by or granted to any Account
                                Debtor or any other person in connection with
                                such Eligible Receivables or Eligible Unbilled
                                Receivables as the case may be; LESS

                        (2)     the amount of Availability Reserves established
                                by Burdale; and

                        (3)     the sum of (i) the amount of all then
                                outstanding and unpaid Obligations, (ii) the
                                aggregate amount of all trade payables of the
                                Company which are more than sixty (60) days past
                                due as of the last day of the immediately
                                preceding calendar month and (iii) the aggregate
                                amount of the Company's past due lease and notes
                                payable; and

                     B = The aggregate amount of:

                        (1)     Outstanding Purchase Price; and

                        (2)     all L/C Exposures.

           "US BORROWERS" is defined in the Loan Agreement.

<PAGE>

           "US EXCESS AVAILABILITY" is defined in the Loan Agreement.

           "US FACILITY" means the credit facility in the maximum amount of
           $50,000,000 (which may be adjusted in accordance with the terms of
           the Loan Agreement and the Canadian Loan Agreement) provided by
           Congress to the US Borrowers pursuant to the Loan Agreement.

           "UTILISATION" means a utilisation of a Facility under this Agreement
           (with the delivery of a Purchase Request and the payment of Purchase
           Price by Burdale pursuant to a Cash Request constituting separate
           Utilisations of the Receivables Finance Facility).

           "UTILISATION DATE" in relation to a Utilisation means the date on
           which such Utilisation is made (being in relation to any Utilisation
           of the Receivables Finance Facility, both the Purchase Date and the
           date on which any payment of Purchase Price is made to the Company
           pursuant to a Cash Request).

           "VAT" means Value Added Tax imposed in the United Kingdom and any
           equivalent tax applicable in any European jurisdiction.

1.2        CONSTRUCTION

           (a)    In this Agreement, unless the contrary intention appears, a
                  reference to:

                  (i)      an "AFFILIATE" of any person includes any Subsidiary,
                           group member, shareholder, director or employee of
                           such person;

                  (ii)     "ASSETS" includes properties, revenues and rights of
                           every description, both present and future;

                  (iii)    an "AUTHORISATION" or a "CONSENT" includes an
                           approval, authorisation, consent, exemption, filing,
                           licence, registration and resolution, in each case
                           given or made in writing;

                  (iv)     financial statements or accounts includes the notes
                           to such statements or accounts;

                  (v)      a "MONTH" means a calendar month starting on any day;

                  (vi)     a "REGULATION" includes any directive, guideline,
                           regulation, request or rule (whether or not having
                           the force of law) of any governmental agency, body,
                           department or other regulatory or self-regulatory
                           authority;

                  (vii)    an enactment (be it express or implied) includes
                           references to any amendment, re-enactment, and/or
                           legislation subordinate to that enactment and/or any
                           permission of whatever kind given under that
                           enactment;

<PAGE>

                  (viii)   a Finance Document or other document is a reference
                           to that Finance Document or other document as
                           amended, novated, supplemented or replaced (in whole
                           or in part);

                  (ix)     a "PERSON" includes any individual, company,
                           corporation, partnership, firm, joint venture,
                           association, organisation, trust, state or state
                           agency (in each case whether or not having separate
                           legal personality);

                  (x)      any party or person includes any person deriving
                           title from it and any successor, transferee and
                           assignee;

                  (xi)     a time of day is a reference to London time; and

                  (xii)    Clauses and Schedules are to the clauses of and
                           schedules to this Agreement.

           (b)    Unless the contrary intention appears, a term used in any
                  other Finance Document or in any notice relating to any
                  Finance Document has the same meaning in that Finance Document
                  or notice as in this Agreement.

           (c)    The headings in this Agreement do not affect its
                  interpretation.

           (d)    Save where the context requires otherwise, words in the
                  singular shall import the plural and vice-versa.

2.         CONDITIONS PRECEDENT

2.1        DOCUMENTARY CONDITIONS

           The obligations of Burdale to the Company under this Agreement are
           subject to the condition precedent that Burdale shall have received
           all of the documents and evidence specified in Schedule 1 in a form
           and substance satisfactory to it.

2.2        FURTHER CONDITIONS

           The obligations of Burdale in respect of any Utilisation are subject
           to the further conditions precedent that both on the date of the
           relevant Request and the proposed Utilisation Date:

           (a)    the representations and warranties set out in Clauses 8 and 13
                  to be repeated on such dates are true and correct in all
                  material respects; and

           (b)    no Default has occurred and remains outstanding or would
                  result from the making of such Utilisation.

<PAGE>

3.         THE FACILITY

3.1        AVAILABLE FACILITY

           Subject to the terms of this Agreement and in reliance on the
           representations and warranties set out in Clauses 8 and 13, Burdale
           agrees to make available to the Company a Receivables Finance
           Facility pursuant to which Burdale will from time to time during the
           Availability Period (i) purchase Receivables from the Company and
           (ii) issue, or procure the issue of, L/Cs for the account of the
           Company (the "RECEIVABLES FINANCE FACILITY").

3.2        PURPOSE

           The Company will use the Facility only for its general operating,
           working capital and other proper corporate purposes and always in a
           manner which is not inconsistent with the Finance Documents. Without
           affecting the obligations of the Company in any way, Burdale is not
           obliged to monitor or verify the application of the Facility.

4.         RESTRICTIONS ON UTILISATIONS

4.1        LETTERS OF CREDIT

           No Request may be delivered for an L/C to be issued pursuant to the
           Receivables Finance Facility unless and until the form of L/C has
           been approved by Burdale, the relevant issuer and the proposed
           beneficiary of such L/C.

4.2        OVERALL LIMIT

           The aggregate amount of:

           (a)    Outstanding Purchase Price; and

           (b)    all L/C Exposures.

         shall not at any time exceed the Facility Limit.

4.3        SPECIFIC LIMITS

           (a)    UNBILLED LIMIT: The Outstanding Purchase Price in relation to
                  Eligible Unbilled Receivables shall not at any time exceed
                  L1,500,000.

           (b)    L/C UTILISATIONS: The aggregate amount of all L/C Exposures
                  shall not at any time exceed the L/C Limit.

           (c)    AVAILABILITY: Subject to paragraph (d) below, the aggregate
                  amount of:

                  (i)      Outstanding Purchase Price; and

<PAGE>

                  (ii)     all L/C Exposures,

                  shall not at any time exceed the sum of:

                           (1)      85% of the face value of the Eligible
                                    Receivables and 65% of Eligible Unbilled
                                    Receivables less maximum discounts, credits
                                    and allowances of any nature which may be
                                    taken by or granted to any Account Debtor or
                                    any other person in connection with the
                                    Eligible Receivables or Eligible Unbilled
                                    Receivables as the case may be; LESS

                           (2)      the amount of Availability Reserves
                                    established by Burdale,

                  at such time.

           (d)    In the event that Section 2.1(b)(i)(C) of the Loan Agreement
                  restricts the aggregate amount of the Loans, Letter of Credit
                  Accommodations and other Obligations (each as defined in the
                  Loan Agreement) outstanding at any time under the Loan
                  Agreement then the aggregate amount of:

                  (i)      Outstanding Purchase Price; and

                  (ii)     all L/C Exposures,

                  shall be restricted to such amount which Burdale deems
                  necessary to ensure compliance with Section 2.1(b)(i)(C) of
                  the Loan Agreement.

4.4        PROHIBITION

           No Utilisation may be made by the Company which would cause the
           provisions of this Clause 4 to be breached.

4.5        BURDALE'S RIGHTS NOT AFFECTED

           In the event that the aggregate amount of Outstanding Purchase Price
           and L/C Exposures exceeds the amounts available under the relevant
           Availability Limit(s) or the Facility Limit, as applicable, such
           event shall not limit, waive or otherwise affect any rights or
           Burdale in that circumstance or on any future occasions.

4.6        COMPANY'S LOAN ACCOUNT(S)

           Burdale will maintain one or more loan accounts, receivable accounts
           and foreign exchange accounts on its books in which will be recorded
           (a) all Utilisations of the Receivables Finance Facility and other
           liabilities of the Company pursuant to the Finance Documents and
           details of the Collateral, (b) all payments made by or on behalf of
           the Company and (c) all other appropriate debits and credits as
           provided in this Agreement, including, without limitation, fees,
           charges, costs, expenses and interest. All

<PAGE>

           entries in such account(s) shall be made in accordance with Burdale's
           customary practices as in effect from time to time.

4.7        STATEMENTS

           Burdale will render to the Company each month a statement setting
           forth the balance in the Company's loan account, receivables accounts
           and foreign exchange accounts maintained by Burdale for the Company
           pursuant to the provisions of this Agreement, including principal,
           commission, interest, fees, costs and expenses. Each such statement
           may be subject to subsequent adjustment by Burdale but shall, in the
           absence of manifest error or omission, be considered correct and
           deemed accepted by the Company and will be conclusively binding upon
           the Company as an account stated except to the extent that Burdale
           receives a written notice from the Company of any specific exception
           of the Company within 30 days after the date such statement has been
           mailed by Burdale. Until such times as Burdale has rendered to the
           Company a written statement as provided above, the balance in the
           Company's loan accounts, invoice discount accounts and foreign
           exchange accounts will be prima facie evidence of the amounts due and
           owing to Burdale by the Company.

5.         UTILISATION OF FACILITY

5.1        AVAILABILITY OF RECEIVABLES FINANCE FACILITY

           (a)    Subject to the terms of this Agreement, the Company shall
                  offer to sell its Receivables to Burdale by delivering to
                  Burdale from time to time duly completed Purchase Requests
                  (together with all deeds and documents referred to in such
                  Purchase Request), delivery of which shall oblige the Company
                  to sell the Receivables stated in such Purchase Request upon
                  the terms and subject to the conditions of this Agreement.

           (b)    A Purchase Request will not be regarded as having been duly
                  completed unless it is in substantially the form set out in
                  Schedule 2 Part I.

           (c)    As soon as reasonably practicable following delivery of a
                  Purchase Request, Burdale shall determine the Purchase Price
                  for the Receivables specified in such Purchase Request and
                  will, upon being requested by the Company, advise the Company
                  of such determination.

5.2        UTILISATION OF RECEIVABLES FINANCE FACILITY

           (a)    Subject to the terms of this Agreement, the Company may from
                  time to time request that Burdale pay sums to the Company of
                  up to the amount of any unpaid Purchase Price by delivering a
                  duly completed Cash Request to Burdale not later than 11.00
                  a.m. on the proposed Utilisation Date for such payment.

           (b)    A Cash Request will not be regarded as having been duly
                  completed unless it is in substantially the form set out in
                  Schedule 2 Part II and, in particular, specifies:

<PAGE>

                  (i)      the proposed Utilisation Date, being a Business Day
                           falling during the Availability Period;

                  (ii)     the amount of the sum to be paid by Burdale which
                           must be less than or equal to the aggregate of unpaid
                           Purchase Price; and

                  (iii)    if not already notified to Burdale, the details of
                           the Other Account into which the payment is to be
                           made on the Utilisation Date.

           (c)    Payments made by Burdale pursuant to a Cash Request shall be
                  deemed to be payments of any unpaid Purchase Price to the full
                  extent of such unpaid Purchase Price.

           (d)    Burdale's obligation to pay the Purchase Price of any
                  Receivable (or any unpaid portion of it as the case may be)
                  shall be terminated on the earlier of the Actual Day of
                  Payment and the Maturity Date of such Receivable.

5.3        L/C UTILISATIONS

           (a)    Subject to the terms of this Agreement, the Company may
                  request the issue of an L/C by delivering a duly completed L/C
                  Request to Burdale not later than 11.00 a.m. at least one
                  Business Day before the proposed Utilisation Date for that
                  L/C.

           (b)    An L/C Request will not be regarded as having been duly
                  completed unless it is substantially in the form attached in
                  Schedule 2 Part III and, in particular, specifies:

                  (i)      the proposed Utilisation Date, being a Business Day
                           falling during the Availability Period;

                  (ii)     the amount of the L/C required, the L/C Exposure of
                           which must be equal to or less than the
                           undrawn/unutilised amount of the Receivables Finance
                           Facility and within the relevant Availability Limits
                           as at the proposed Utilisation Date;

                  (iii)    if not already notified to Burdale, the details of
                           the beneficiary, payee or addressee of such L/C.

5.4        GENERAL PROVISIONS REGARDING L/Cs

           (a)    Nothing in this Agreement shall be deemed or construed to
                  grant the Company any right or authority to pledge the credit
                  of Burdale in any manner. Burdale shall have no liability of
                  any kind with respect to any L/C provided by an issuer other
                  than Burdale unless Burdale has duly executed and delivered to
                  such issuer the application or a guarantee or indemnification
                  in writing with respect to such L/C. The Company shall be
                  bound by an interpretation made in good faith by Burdale, or
                  any other issuer or correspondent under or in connection with
                  any L/C or any documents, drafts or acceptances in relation to
                  any L/C, notwithstanding that such

<PAGE>

                  interpretation may be inconsistent with any instructions of
                  the Company. Burdale shall have the sole and exclusive right
                  and authority to, and the Company shall not:

                  (i)      at any time an Event of Default exists or has
                           occurred and is continuing:

                           (1)      approve or resolve any questions of
                                    non-compliance of documents;

                           (2)      give any instructions as to acceptance or
                                    rejection of any documents or goods; or

                           (3)      execute any and all applications for
                                    steamship or airway guarantees, indemnities
                                    or delivery orders and at all times;

                  (ii)     at any time:

                           (1)      grant any extensions of the maturity of,
                                    time of payment for, or time of presentation
                                    of, any drafts, acceptances, or documents;
                                    and

                           (2)      agree to any amendments, renewals,
                                    extensions, modifications, changes or
                                    cancellations of any of the terms or
                                    conditions of any of the applications, L/Cs,
                                    or documents, drafts or acceptances in
                                    relation to any L/C or any letters of credit
                                    included in the Collateral. Burdale may take
                                    such actions either in its own name or in
                                    the Company's name.

                  (b)      Any rights, remedies, duties or obligations granted
                           or undertaken by the Company to any issuer or
                           correspondent in any application for any L/C, or any
                           other agreement in favour of any issuer or
                           correspondence relating to any L/C, shall be deemed
                           to have been granted or undertaken by the Company to
                           Burdale. Any duties or obligations undertaken by
                           Burdale to any issuer or correspondence in any
                           application for any L/C, or any other agreement by
                           Burdale in favour of any issuer or correspondence
                           relating to any L/C, shall be deemed to have been
                           undertaken by the Company to Burdale and to apply in
                           all respects to the Company.

                  (c)      None of Burdale, any L/C issuer (or any of their
                           respective correspondents) or any advising,
                           negotiating or paying bank with respect to any L/C
                           shall be responsible in any way for:

                           (i)      the performance by any beneficiary under any
                                    L/C of that beneficiary's obligations to the
                                    Company; or

                           (ii)     the form, sufficiency, correctness,
                                    genuineness, authority of any person signing
                                    or the legal effect of any documents called
                                    for under any L/C if such documents appear
                                    on their face to be in order.

5.5        DEEMED PAYMENT

<PAGE>

           All payments made by Burdale in accordance with the terms of any L/C
           or any guarantee or indemnity given by Burdale to the issuer of any
           L/C (as the case may be) shall be deemed to be a payment of Purchase
           Price to the Company in an amount equal to such payment, drawn down
           on the date of such payment and subject to the provisions of this
           Agreement with respect to Outstanding Purchase Price (including,
           without limitation, as to commission and repayment).

6.         REPAYMENT AND PREPAYMENT

6.1        RECEIVABLES FINANCE FACILITY

           (a)    If in relation to a Purchased Receivable Burdale determines on
                  the Maturity Date in respect of such Purchased Receivable that
                  it has not received payment in accordance with Clause 9.1 of
                  the full amount of such Purchased Receivable, the Company
                  shall, on demand by Burdale pay to Burdale an amount equal to
                  the Outstanding Purchase Price of such Purchased Receivable
                  for which payment has not been received PROVIDED THAT this
                  provision shall not restrict (nor oblige) Burdale in any way
                  in or from pursuing and obtaining payment in respect of such
                  Purchased Receivable from the Account Debtors or otherwise
                  (which payment shall be made into the Blocked Accounts) and
                  the Company undertakes that it will do all such reasonable
                  acts or things necessary or desirable to help Burdale in
                  pursuing and obtaining such payment.

           (b)    Burdale shall be entitled to deduct from payments made by
                  Account Debtors and/or the Company into the Blocked Accounts
                  in respect of Purchased Receivables the then Outstanding
                  Purchase Price in respect of such Purchased Receivables and
                  the balance remaining after such deduction shall be applied in
                  accordance with Clause 6.2.

6.2        OTHER UTILISATIONS

           Subject as provided below all amounts standing to the credit of the
           Blocked Accounts from time to time following the deductions referred
           to in Clause 6.1(b) shall be applied as follows:

           (a)    FIRST in payment of any fees, costs and expenses due from the
                  Company to Burdale under the Finance Documents;

           (b)    SECOND in payment of all Purchase Commission (or in making
                  provision for Purchase Commission which will fall due for
                  payment on the last Business Day of the current calendar
                  month);

           (c)    THIRD in or towards satisfaction of any other payment
                  obligation of the Company under the Finance Documents; and

           (d)    FOURTH to the Company by way of payment into such Other
                  Account as the Company may specify to Burdale in writing from
                  time to time.

<PAGE>

           Notwithstanding the above, at all times following the occurrence of
           an Event of Default and whilst the same is continuing, amounts
           standing to the credit of the Blocked Accounts shall be applied to
           such of the liabilities of the Company under the Finance Documents
           and in such order as Burdale may in its absolute discretion
           determine.

6.3        REUTILISATION

           Subject to the terms of this Agreement, all amounts of Outstanding
           Purchase Price recovered and paid to Burdale, may, subject to the
           terms of this Agreement, be reutilised as Utilisations of the
           Receivables Finance Facility.

6.4        PREPAYMENT

           If at any time the outstanding Utilisations or any part of them cause
           any Availability Limit to be exceeded then the Company will
           immediately pay into the Payment Account, as cash collateral in
           respect of Outstanding Purchase Price and/or any contingent
           obligation of Burdale in relation to any L/C or other Utilisation, to
           the extent required to ensure compliance with that Availability Limit
           and, until such time as that Availability Limit is no longer
           breached, no further Utilisations may be requested (including, for
           the avoidance of doubt, pursuant to a Cash Request) or will, at
           Burdale's option, be made or issued.

6.5        REDUCTION OF FACILITY LIMIT

           At the request of the Company by giving not less than ten Business
           Day's prior written notice to Burdale, the Facility Limit may from
           time to time be reduced provided that on or before the effective date
           for such reduction the Company shall pay to Burdale:

           (a)    such amount as may be necessary as cash collateral for
                  Outstanding Purchase Price and/or Burdale's contingent
                  obligations under any issued L/C to ensure that the Company
                  remains in compliance with the Availability Limits; and

           (b)    a fee calculated by applying to the amount of the reduction
                  the applicable percentage set out in column (2) below:

<TABLE>
<CAPTION>

                                       (1)                                             (2)
                                DATE OF REDUCTION                             APPLICABLE PERCENTAGE
                  <S>                                                         <C>
                  On or before the first  anniversary of today's                       2%
                  date

                  After the first  but on or before  the  second                       1%
                  anniversary of today's date

                  After the  second  but on or before  the third                      0.5%
                  anniversary of today's date
</TABLE>

           Any exercise by Burdale of its rights under Clause 15.2(b) and/or
           15.3 and/or the operation of Clause 12.1 shall be deemed for the
           purposes of paragraph (b) above to be

<PAGE>

           a reduction in the Facility Limit in an amount equal to the amount of
           the Facility so cancelled.

6.6        FINAL REPAYMENT

           The Company will, on the Final Repayment Date, pay to Burdale in full
           all outstanding and unpaid liabilities under the Finance Documents
           (whether by way of principal, interest, commission, fees, costs,
           expenses or otherwise) and shall pay to Burdale such amount as is
           necessary to provide full cash collateral for Outstanding Purchase
           Price and any contingent obligations which Burdale may have in
           respect of any L/C or other outstanding Utilisation. Such payment
           shall be denominated in Sterling and will be made by wire or other
           automatic transfer to the Payment Account. If the amounts so paid are
           received in the Payment Account later than 1.00 p.m. on the Final
           Repayment Date then the Company will pay interest on such amounts to
           Burdale at the Default Rate until payment has been made in full.

7.         INTEREST AND COMMISSION

7.1        DEFAULT INTEREST

           (a)    Upon the occurrence of an Event of Default and whilst the same
                  is continuing unremedied or unwaived for 5 Business Days after
                  notification by Burdale to the Company, all amounts
                  outstanding under this Agreement shall bear interest (both
                  before and after judgment) at the Default Rate.

           (b)    Interest at the Default Rate will be compounded at the end of
                  each period designated by Burdale and will be determined by
                  Burdale on the first Business Day of each such period.

7.2        PURCHASE COMMISSION

           The Company shall pay to Burdale commission in respect of each
           Purchased Receivable at a rate equivalent to the Purchase Rate
           applied to the Outstanding Purchase Price for such Receivable from
           the date on which Burdale paid such Purchase Price to the Company
           down to the Actual Date of Payment (the "PURCHASE COMMISSION").
           Burdale shall calculate the Purchase Commission on a daily basis and
           it shall be paid by the Company monthly in arrears on the first
           Business Day of each month.

8.         RECEIVABLES, STOCK AND EQUIPMENT

8.1        REPORTING REGARDING RECEIVABLES

           The Company will provide Burdale with the following documents with
           all amounts expressed in Sterling and otherwise in a form
           satisfactory to Burdale:

           (a)    on a daily basis with a schedule of Receivables, collections
                  received and credits issued and on a monthly basis with a
                  stock report substantially in the form set out

<PAGE>

                  in Schedule 3 Part II together with such further information
                  regarding Receivables as Burdale may reasonably request;

           (b)    as soon as practicable and in any event within 15 days of the
                  end of each month or more frequently as Burdale may reasonably
                  request:

                  (i)      ageings of creditors and Receivables with details of
                           all dated invoices; and

                  (ii)     an analysis of preferential creditors in
                           substantially the form set out in Schedule 3 Part
                           III;

                  all in a format to be agreed with Burdale (acting reasonably).

           (c)    promptly from time to time as Burdale may reasonably request:

                  (i)      copies of shipping and delivery documents relating to
                           stock and Equipment;

                  (ii)     copies of the ageings of all Receivables paid to the
                           Company, on a monthly basis by invoice date;

                  (iii)    full details of all Account Debtors (including their
                           addresses) together with copies of customer
                           statements and credit notes, remittance advices,
                           collection schedules and reports and copies of
                           deposit slips and all monthly bank statements of the
                           Company and its Subsidiaries or statements for such
                           other period as Burdale may require;

                  (iv)     such other reports regarding the Collateral as
                           Burdale may reasonably request from time to time;

           (d)    on a daily basis, details of any Receivables which have become
                  or are purported to be, by the relevant Account Debtor or
                  otherwise, subject to any prohibitions or restriction on
                  charge or assignment; and

           (e)    immediately upon becoming aware of the same, details of any
                  creditor of the Company whose ordinary terms of business
                  include title retention provisions which are not already
                  specified in Schedule 3 Part I.

8.2        REPORTING REGARDING ACCOUNT DEBTORS

           (A)    NOTIFICATION: The Company will notify Burdale promptly of:

                  (i)      any material delay in the Company's performance of
                           any of its obligations to any Account Debtor or the
                           assertion of any claims, offsets, defences or
                           counterclaims by any Account Debtor, or any material
                           disputes with Account Debtors, or any settlement,
                           adjustment or compromise of any such matter;

<PAGE>

                  (ii)     all material adverse information known to the Company
                           relating to the financial condition of any Account
                           Debtor; and

                  (iii)    any event or circumstance which, to the Company's
                           knowledge, would cause Burdale to consider any then
                           existing Receivables as no longer constituting
                           Eligible Receivables or Eligible Unbilled Receivables
                           as the case may be.

           (B)    DISPUTES AND SETTLEMENTS WITH ACCOUNT DEBTORS: No credit,
                  discount, allowance or extension or agreement for any of the
                  foregoing will be granted to any Account Debtor without
                  Burdale's consent, except in the ordinary course of the
                  Company's business in accordance with proper practices and
                  policies operated by the Company prior to the date of this
                  Agreement. At any time while an Event of Default is
                  outstanding, Burdale will, at its option, have the exclusive
                  right to settle, adjust or compromise any claim, offset,
                  counterclaim or dispute with any Account Debtor and to grant
                  any credits, discounts or allowances in relation to such
                  matters.

8.3        REPRESENTATIONS AND UNDERTAKINGS AS TO RECEIVABLES

           With respect to each Receivable, the Company represents and warrants
           to Burdale that and undertakes to ensure that at all times:

           (a)    the amounts shown on any invoice delivered to Burdale and in
                  any Receivables Information delivered to Burdale are true and
                  complete;

           (b)    no payments have been or will be made on such Receivable
                  except payments collected by the Company and immediately
                  transmitted or delivered to Burdale or elsewhere pursuant to
                  the terms of this Agreement;

           (c)    no credit, discount, allowance or extension or agreement for
                  any of the foregoing will be granted to any Account Debtor
                  except as reported to and agreed by Burdale except for
                  credits, discounts, allowances or extensions made or given in
                  the ordinary course of the Company's business in accordance
                  with its proper practices and policies operated prior to
                  today's date as disclosed to Burdale in writing;

           (d)    to the best of the Company's knowledge, there are no set-offs,
                  deductions, defences, counterclaims or disputes existing or
                  asserted with respect to such Receivable except as reported to
                  and agreed by Burdale;

           (e)    none of the transactions giving rise to any Receivable breach
                  any applicable law or regulation and all documentation
                  relating to such Receivable is legally enforceable in
                  accordance with its terms;

           (f)    each Receivable is genuine, is and will be in all respects
                  what it purports to be, and is not the subject of a court
                  judgment;

<PAGE>

           (g)    each Receivable represents undisputed, bona fide
                  transaction(s) completed in accordance with the terms and
                  provisions contained in any documents delivered to Burdale
                  with respect to such Receivable;

           (h)    the amounts shown on the relevant Receivables Information, the
                  Company's books and records and all invoices and statements
                  which may be delivered to Burdale with respect thereto are
                  actually and absolutely owing to the Company and are not in
                  any way contingent;

           (i)    to the best of the Company's knowledge, there are no facts,
                  events or occurrences which in any way impair the validity or
                  enforceability of any such Receivable or tend to reduce the
                  amount payable in respect of such Receivable as shown on the
                  relevant Receivables Information, the Company's books and
                  records and all invoices and statements delivered to Burdale
                  with respect to such Receivable;

           (j)    to the best of the Company's knowledge, all Account Debtors
                  have the capacity to contract and are solvent;

           (k)    the services furnished and/or goods sold giving rise to each
                  Receivable are not subject to any Encumbrance (except for an
                  Encumbrance which is permitted by Clause 14(g)); and

           (l)    to the best of the Company's knowledge, there are no
                  proceedings or actions which are threatened or pending against
                  any Account Debtor which might reasonably be expected to
                  result in a material adverse change in such Account Debtor's
                  financial condition.

8.4        VERIFICATION

           Burdale will have the right from time to time, in the name of any
           nominee, to verify the validity, amount or any other matter relating
           to any Receivable or other Collateral, by mail, telephone, facsimile
           or otherwise.

8.5        RIGHTS AFTER AN EVENT OF DEFAULT

           (A)    DEALING WITH COLLATERAL AND RECEIVABLES: Burdale may, at any
                  time that a Default has occurred and is continuing and without
                  prejudice to any of its rights under Clause 15.2 or otherwise
                  under this Agreement or any other Finance Document:

                  (i)      extend the time of payment of, compromise, settle or
                           adjust for cash, credit, return of merchandise or
                           otherwise, and upon any terms or conditions, any and
                           all Receivables or other obligations included in the
                           Collateral and thereby discharge or release any
                           Account Debtor or any other party or parties in any
                           way liable for payment of any Receivable without
                           affecting any of the Receivables, demand or enforce
                           payment of any Receivables, but without any duty to
                           do so, and Burdale will not be liable for its failure
                           to

<PAGE>

                           enforce the payment of any Receivable nor for the
                           negligence of its agents or attorneys with respect to
                           any Receivable; and

                  (ii)     take whatever other action Burdale may deem necessary
                           for the protection of its interests in the
                           Collateral.

           (B)    NOTICE TO DEBTORS: At any time that a Default is outstanding,
                  Burdale or its nominees may, at Burdale's discretion do any of
                  the following:

                  (i)      having given prior notification to the Company,
                           notify any or all Account Debtors that the
                           Receivables have been assigned to Burdale and that
                           payments in respect of Receivables are to be
                           redirected to such account as is specified by
                           Burdale;

                  (ii)     request the Company to give the notification referred
                           to in Clause 8.5(b)(i) above and/or to ensure that
                           all invoices and statements in respect of Receivables
                           issued to the Account Debtors state the information
                           referred to in Clause 8.5(b)(i); and

                  (iii)    direct any or all relevant Account Debtors to make
                           all payments in respect of Receivables direct to
                           Burdale at such account as Burdale may specify.

8.6        BURDALE'S RIGHT TO CURE

           Burdale may, at its option:

           (a)    after giving five days notice to the Company, cure any default
                  by the Company under any agreement with an Account Debtor in
                  respect of a Receivable (other than bona fide disputes in the
                  ordinary course of the Company's business where no Event of
                  Default has occurred and is continuing) or under any other
                  agreement with a third party as may be required by Burdale in
                  good faith to facilitate the collection of the Receivables or
                  to enable Burdale to have access to any of the Collateral or
                  any Equipment;

           (b)    after giving five days notice to the Company, pay or make a
                  bond in respect of or appeal any judgment entered into against
                  the Company which, upon execution, attachment or the exercise
                  of any similar remedy in respect of such judgment, would
                  result in an Encumbrance being imposed on the Collateral or
                  would impair Burdale's ability to obtain possession of,
                  realise or collect any of the Collateral;

           (c)    discharge taxes, Encumbrances or other encumbrances at any
                  time levied on or existing with respect to the Collateral; and

           (d)    pay any amount, incur any expense or perform any act including
                  without limitation the payment to any creditors in respect of
                  plant and/or machinery, which, in Burdale's judgment, is
                  necessary or appropriate to reserve, protect, insure or
                  maintain the Collateral and the rights of Burdale with respect
                  to it.

<PAGE>

           Burdale may charge any monies so expended or costs so incurred by it
           to the Company's account, such amounts to be repayable by the Company
           on demand. Burdale will be under no obligation to effect any such
           cure or payment or incur any such cost and will not, by doing so, be
           deemed to have assumed any obligation or liability of the Company.
           Any payment made or other action taken by Burdale under this Clause
           will be without prejudice to any right it may have to assert an Event
           of Default under this Agreement and to proceed accordingly.

8.7        ACCESS TO PROPERTY

           From time to time as requested by Burdale on one Business Day's
           notice (for the purpose of carrying out an audit in accordance with
           Clause 14(j) and in the case of emergency as determined by Burdale)
           (but subject to Clause 16.1(g) regarding daily charge rates), at the
           cost and expense of the Company:

           (a)    Burdale or its nominees will have complete access to all of
                  the Company's Property during normal business hours and having
                  given prior notice to the Company, or at any time and without
                  notice to the Company if an Event of Default is outstanding,
                  for the purposes of inspecting, verifying and auditing the
                  Collateral and all of the Company's books and records;

           (b)    the Company will promptly furnish to Burdale or its nominees
                  such copies of or extracts from such books and records as may
                  be reasonably requested from the Company; and

           (c)    Burdale or its nominees may have access to, during normal
                  business hours, and use, such of the Company's personnel,
                  equipment, supplies and Property as may be reasonably
                  necessary for the purpose of inspecting, verifying and
                  auditing the Collateral and all of the Company's books and
                  records and if an Event of Default has occurred and is
                  continuing for the collection of the Receivables and the
                  realisation of the other Collateral.

8.8        BURDALE'S DISCLAIMER

           Burdale will not be responsible for the safekeeping of, any loss or
           damage to, any diminution in value of or any act or default of any
           carrier, warehouseman, bailee or other person in relation to the
           stock, finished goods, Equipment or Receivables.

9.         COLLECTION OF RECEIVABLES

9.1        FLOW OF FUNDS

           Subject to Clause 9.2, the Company undertakes that during the period
           commencing on the date of this Agreement and ending when all its
           liabilities under the Finance Documents have been discharged in full
           and Burdale is under no further obligation under any of the Finance
           Documents:

<PAGE>

           (a)    the Company will collect as agent and trustee for Burdale all
                  Receivables and immediately pay (or procure that payment is
                  made) all amounts due:

                  (i)      in respect of each Sterling Receivable, into the
                           Blocked Accounts; and

                  (ii)     in respect of each other Receivable, into an Other
                           Account,

                  provided however that until payment into the relevant Charged
                  Account it will hold all money so received upon trust for
                  Burdale and will not commingle in any Charged Account any
                  monies which are not Receivables or which are not payable to
                  Burdale;

           (b)    without prejudice to the Company's obligations under
                  Clause14(l) and Clause15.1(b), in the event that any Account
                  Debtor makes a payment in respect of Receivables into another
                  Charged Account not in accordance with paragraph (a) above,
                  the Company will ensure that the amounts representing such
                  payment are promptly transferred into the relevant Charged
                  Account and will immediately direct the relevant Account
                  Debtor to make all future payments into such relevant Charged
                  Account;

           (c)    all the transfers and collections referred to in paragraphs
                  (a) and (b) above shall be carried out daily prior to the
                  occurrence of any Default and thereafter at such intervals as
                  Burdale may, at its discretion, specify to the Company; and

           (d)    in the event that during any three month period the average of
                  amounts due in respect of Other Receivables (converted into
                  Sterling at the Exchange Rate if necessary) is equal or
                  greater than 10% of all amounts due in respect of Receivables
                  (converted into Sterling at the Exchange Rate if necessary)
                  during such period, the Company will promptly at Burdale's
                  request:

                  (i)      provide Burdale with security over further bank
                           accounts (in relation to receipts in the relevant
                           currency) in London (the "NEW ACCOUNTS") on
                           substantially the same terms as the security provided
                           by the Company over the Blocked Accounts in the
                           Debenture; and

                  (ii)     immediately direct all relevant Account Debtors to
                           pay all amounts due in respect of the Other
                           Receivables into the relevant New Account.

9.2        FAILURE OF DEBENTURE

           In the event that the Debenture in respect of any Account Bank is
           not, at any time, effective or is not in full force and effect, the
           Company will (unless otherwise directed by Burdale and without
           prejudice to Burdale's rights and remedies under the Finance
           Documents), for so long as the Debenture is ineffective or not in
           full force and effect and ending on the date when all the liabilities
           of the Company under the Finance Documents have been repaid or
           discharged in full and Burdale is under no further obligation under
           any of the Finance Documents, collect as agent and trustee for
           Burdale all Receivables which would otherwise have been payable into
           the Blocked Accounts and immediately

<PAGE>

           pay (or procure the payment of) all amounts due in respect of those
           Receivables into the Payment Account.

9.3        REIMBURSEMENT

           The Company agrees to reimburse Burdale on demand for any liability
           of Burdale to any Account Bank or any other bank or person involved
           in the transfer of funds to or from the Blocked Accounts arising out
           of Burdale's payments to or indemnification of that bank or person,
           and this obligation to reimburse shall survive the termination or
           non-renewal of this Agreement.

9.4        EXCESS AMOUNTS

           Any amounts received by Burdale from or for the account of the
           Company in excess of the amounts then due and payable by the Company
           will be dealt with in accordance with the terms of Clause 6 and the
           Debenture.

9.5        TIME OF APPLICATION

           For the purposes of calculating any Purchase Commission, payments or
           other funds received by Burdale will be applied (conditional upon
           final collection) in satisfaction or reduction of the Company's
           liabilities under the Finance Documents one (1) Business Day
           following the date of receipt of funds by Burdale in the Payment
           Account. For the purposes of calculating the Facility Limit such
           payments will be applied (conditional upon final collection) in
           satisfaction or reduction of the Company's liabilities under the
           Finance Documents on the Business Day of receipt by Burdale in the
           Payment Account, provided that such payments are received within
           sufficient time (in accordance with Burdale's usual and customary
           practices as in effect from time to time) to credit the Company's
           loan and receivable and foreign exchange account on such day, and if
           not, then on the next Business Day.

10.        PAYMENTS AND TAXES

10.1       PAYMENTS

           (a)    Subject to Clause 9, all payments to be made by the Company to
                  Burdale under the Finance Documents will be made on or before
                  their due date in Sterling in cleared funds for value not
                  later than 11.00 a.m. on the day in question to the Payment
                  Account.

           (b)    If any payment under the Finance Documents would otherwise be
                  due on a day which is not a Business Day, it will be due on
                  the next succeeding Business Day or, if that Business Day
                  falls in the following month, on the preceding Business Day.

           (c)    If after receipt by Burdale of any payment of, or proceeds of
                  Collateral applied to the payment of, any of the Company's
                  payment liabilities, Burdale is required to surrender or
                  return such payment or proceeds to any person for any reason,
                  then

<PAGE>

                  the payment liabilities intended to be satisfied by such
                  payment or proceeds shall be treated as not having been
                  received by Burdale. The Company shall be liable to pay to
                  Burdale the amount of any payments or proceeds so surrendered
                  or returned. This Clause 10.1(c) shall remain effective
                  notwithstanding any action which may be taken by Burdale in
                  reliance upon such payment or proceeds and will survive the
                  termination or non-renewal of this Agreement.

10.2       TAXES

           (a)    Subject to Clause 10.2(c), all Taxes (other than Tax on the
                  overall net income of Burdale) due in respect of this
                  Agreement or any amounts paid or payable under the Finance
                  Documents will be paid by the Company when due and in any
                  event prior to the date on which penalties attach to such
                  Taxes, and the Company will indemnify Burdale for any cost,
                  loss or liability incurred by Burdale in respect of all such
                  Taxes.

           (b)    Subject to Clause 10.2(c), all payments by the Company of any
                  nature under the Finance Documents will be made without regard
                  to any equities between the Company and Burdale and in full
                  and free and clear of, and without any deduction or
                  withholding (whether in respect of set-off, restriction,
                  counterclaim, Taxes or otherwise whatsoever) unless the
                  deduction or withholding is required by law, in which event
                  the Company will:

                  (i)      ensure that the deduction or withholding does not
                           exceed the minimum amount legally required;

                  (ii)     pay to Burdale (or procure the payment to Burdale of)
                           an additional amount being the amount required to
                           procure that the aggregate net amount received by
                           Burdale will equal the full amount which would have
                           been received by it had no deduction or withholding
                           been made (including, for the avoidance of doubt, any
                           withholding or deduction on any additional amount
                           paid);

                  (iii)    pay to the relevant taxation or other authorities
                           within the period for payment permitted by the
                           applicable law such amount as is required to be paid
                           in consequence of the deduction or withholding
                           (including, but without prejudice to the generality
                           of the foregoing, the full amount of any deduction or
                           withholding from any additional amount paid pursuant
                           to paragraph (ii) above) and supply Burdale with
                           written evidence that it has made the appropriate
                           payment; and

                  (iv)     indemnify Burdale against any costs, loss or
                           liability incurred by it by reason of any failure of
                           the Company to make any deduction or withholding or
                           by reason of any increased payment not being made on
                           the due date for payment.

           (c)    If the Company has made an additional payment under Clause
                  10.2(b) in respect of any Tax and such Tax was not properly or
                  legally been charged or levied then Burdale will, upon the
                  Company's request and at the Company's expense, provide

<PAGE>

                  such documents to the Company as it may reasonably request to
                  enable it to contest the imposition of such Tax provided
                  always that the provision of such documents and the contesting
                  of the relevant Tax liability shall have no reasonable
                  likelihood of resulting in any liability for Burdale.

           (d)    If the Company has made an additional payment under Clause
                  10.2(b) in respect of any Tax and Burdale subsequently
                  receives a credit, relief or allowance in respect of that
                  payment then Burdale will, once a year during the term of this
                  Agreement or immediately after the term of this Agreement (if
                  applicable), apply the total amount of such credits, reliefs
                  or allowances to the reduction of the Company's liabilities
                  under the Finance Document in such manner as it thinks fit
                  (provided that (A) such payment to the Company does not result
                  in any additional liability for Burdale, (B) the Company has
                  made all the additional payments due from it under Clause
                  10.2(b) and (C) the Company has supplied evidence of such
                  payments to Burdale) and thereafter account to the Company for
                  any balance. Burdale will use reasonable endeavours to obtain
                  a tax credit as referred to above provided that it will not be
                  required to seek any such credit if that will result in
                  additional costs or legal or regulatory burdens on it which
                  are deemed by Burdale, in good faith, to be material. Burdale
                  shall have an absolute discretion as to whether to claim any
                  tax credit and if it does claim, the extent, order and manner
                  in which it does so. Burdale shall not be obliged to disclose
                  any information regarding its tax affairs or computations to
                  any other party.

11.        INCREASED COSTS

11.1       INCREASED COSTS

           If the result of any change in or introduction of or change in the
           interpretation or application of any law, regulation, treaty or
           official directive or official request (whether or not having the
           force of law but, if not, being of a type with which Burdale is
           accustomed to comply) or compliance by Burdale with the same
           including, without limitation, those relating to Taxation (but not
           Tax on overall net income of Burdale), or any other form of banking
           or monetary controls is to:

           (a)    increase the cost to Burdale of entering into this Agreement
                  or making or maintaining the Facility or maintaining any of
                  its commitments under the Finance Documents;

           (b)    increase the cost to Burdale of funding or having outstanding
                  any other amount paid out by it under the Finance Documents;

           (c)    reduce any amount payable to Burdale under the Finance
                  Documents or the effective return on its capital; or

           (d)    result in Burdale making any payment or foregoing any interest
                  or other return on or calculated by reference to any amount
                  received or receivable by it from the Company under the
                  Finance Documents,

<PAGE>

           then and in each such case:

                  (i)      Burdale will notify the Company in writing and
                           provide to the Company reasonable details of such
                           event promptly upon its becoming aware of the same;
                           and

                  (ii)     upon demand from time to time by Burdale, the Company
                           will pay to Burdale such amount as is necessary to
                           compensate Burdale for such increased cost (or the
                           proportion of such increased cost as is, in the
                           reasonable opinion of Burdale, attributable to its
                           entering into this Agreement or making or maintaining
                           the Facility or maintaining any commitment under the
                           Finance Documents), reduction, payment or foregone
                           interest or other return.

11.2       CERTIFICATE CONCLUSIVE

           The certificate of Burdale specifying the amount of compensation
           payable under Clause 11.1 will, in the absence of manifest error, be
           conclusive. Burdale will provide calculations in reasonable detail
           showing the calculation of any such amount, provided that Burdale
           will not be obliged to reveal any information which is confidential
           to Burdale.

12.        ILLEGALITY AND MONETARY UNION

12.1       ILLEGALITY

           In the event that any change in or introduction of or change in the
           interpretation or application of any law, regulation, treaty, or
           official directive or official request (whether or not having the
           force of law but, if not, being of a type with which Burdale is
           accustomed to comply) makes it unlawful (or contrary to such
           directive or request) in any jurisdiction applicable to Burdale for
           Burdale to make available or maintain the Facility or to give effect
           to its obligations under the Finance Documents, Burdale may give
           seven Business Days written notice to that effect to the Company
           whereupon the Facility will be cancelled and all the provisions of
           this Agreement will apply as if the cancellations or terminations had
           been a reduction of the Facility Limit to zero pursuant to Clause
           6.5.

12.2       EFFECT OF MONETARY UNION

           If the country of any national currency in which any amount is
           expressed to be payable under this Agreement participates in Economic
           and Monetary Union in accordance with article 109J of the treaty on
           European Union, then:

           (a)    any amount expressed to be payable under this Agreement in
                  that national currency shall be made in that national currency
                  or in euro as Burdale may, by not less than three Business
                  Days' notice to the Company to that effect, require;

<PAGE>

           (b)    any amount so required to be paid in euro shall be converted
                  from that national currency at the rate stipulated pursuant to
                  Article 109L(4) of the Treaty on European Union and payment of
                  the amount in euro derived from such conversion shall
                  discharge the obligation of the relevant party to pay such
                  national currency amount in accordance with, and subject to,
                  the Regulation(s) made pursuant to Article 109L(4);

           (c)    after consultation with the Company, Burdale shall be entitled
                  to make such amendments to this Agreement as it may reasonably
                  determine to be necessary to take account of monetary union
                  and any consequent changes in market practices (whether as to
                  the settlement or rounding of obligations, the calculation of
                  interest or otherwise howsoever).

           Any amendment so made to this Agreement by Burdale shall be promptly
           notified to the Company and shall be binding on the Company.

13.        GENERAL REPRESENTATIONS AND WARRANTIES

13.1       ACKNOWLEDGEMENT AND WARRANTIES

           The Company represents and warrants to Burdale that:

           (a)    CORPORATE EXISTENCE, POWER AND AUTHORITY; SUBSIDIARIES: Each
                  Corporate Obligor and each Related Company is a corporation
                  duly organised and in good standing under the laws of its
                  state of incorporation and is duly qualified as a foreign
                  corporation and in good standing in all jurisdictions where
                  the nature and extent of the business transacted by it or the
                  ownership of assets makes such qualification necessary, except
                  for those jurisdictions in which the failure to so qualify
                  would not have a Material Adverse Effect. The execution,
                  delivery and performance of this Agreement, the other Finance
                  Documents and the transactions contemplated hereunder and
                  thereunder are all within each Corporate Obligor's and each
                  Related Company's corporate powers, have been duly authorised
                  and are not in contravention of law or the terms of such
                  person's constituent or other organisational documentation or
                  any indenture, agreement or undertaking to which such person
                  is a party or by which such person or its property are bound.
                  This Agreement and the other Finance Documents constitute
                  legal, valid and binding obligations of each Corporate Obligor
                  and each Related Company (as the case may be) enforceable in
                  accordance with their respective terms. The Company has no
                  Subsidiaries except the other Corporate Obligors.

           (b)    FINANCIAL STATEMENTS; NO MATERIAL ADVERSE CHANGE: All
                  financial statements relating to any Corporate Obligor which
                  have been or may hereafter be delivered by such Corporate
                  Obligor to Burdale have been or will have been prepared in
                  accordance with GAAP and fairly present the financial
                  condition and the results of operations of such Corporate
                  Obligor as at the dates and for the periods set forth therein.
                  Except as disclosed in any interim financial statements
                  furnished by any Corporate Obligor or on behalf of any
                  Corporate Obligor to Burdale prior to the date of this
                  Agreement, there has been no material adverse change in the
                  assets,

<PAGE>

                  liabilities, properties and condition, financial or otherwise,
                  of such Corporate Obligor, since the date of the most recent
                  audited financial statements furnished by such Corporate
                  Obligor or on behalf of such Corporate Obligor to Burdale
                  prior to the date of this Agreement.

           (c)    PRIORITY OF SECURITY; TITLE TO PROPERTIES: The Encumbrances
                  and security interests granted to Burdale under the Finance
                  Documents constitute valid and perfected first priority
                  mortgages and charges and security interests in and upon the
                  Collateral subject only to the permitted pursuant to Clause
                  14(g). Each Corporate Obligor and each Related Company has
                  good and marketable title to all of its properties and assets
                  subject to no mortgages, pledges, security interests,
                  encumbrances or charges of any kind, except (i) those granted
                  to Burdale (ii) Encumbrances granted by GL Bermuda in favour
                  of the Company and (iii) such others as are specifically
                  permitted under Clause 14(g).

           (d)    TAX RETURNS: The Company has filed, or caused to be filed, in
                  a timely manner all Tax returns, reports and declarations
                  which are required to be filed by it (without requests for
                  extension except as previously disclosed in writing to
                  Burdale). All information in such Tax returns, reports and
                  declarations is complete and accurate in all material
                  respects. The Company has paid or caused to be paid all Taxes
                  due and payable or claimed due and payable in any assessment
                  received by it, except Taxes the validity of which are being
                  contested in good faith by appropriate proceedings diligently
                  pursued and available to the Company and with respect to which
                  adequate reserves have been set aside on its books. Adequate
                  provision has been made for the payment of all accrued and
                  unpaid domestic, foreign and other Taxes whether or not yet
                  due and payable and whether or not disputed.

           (e)    LITIGATION: Except as set forth on the Information Certificate
                  of the Company, there is no present investigation by any
                  governmental agency pending, or to the best of the Company's
                  knowledge threatened, against or affecting the Company, its
                  assets or business and there is no action, suit, proceeding or
                  claim by any person pending, or to the best of the Company's
                  knowledge threatened, against the Company or its assets or
                  goodwill, or against or affecting any transactions
                  contemplated by this Agreement, which has a material
                  possibility (as reasonably determined by Burdale) of being
                  adversely determined against the Company, and if adversely
                  determined would result in any Material Adverse Effect.

           (f)    COMPLIANCE WITH OTHER AGREEMENTS AND APPLICABLE LAWS: No
                  Corporate Obligor is in default under, or in violation of any
                  of the terms of, any agreement, contract, instrument, lease or
                  other commitment to which it is a party or by which it or any
                  of its assets are bound and each Corporate Obligor is in
                  compliance with all applicable provisions of laws, rules,
                  regulations, licenses, permits, approvals and orders of any
                  English, foreign, or local governmental authority where such
                  default or noncompliance would result in a Material Adverse
                  Effect.

           (g)    BANK ACCOUNTS: All of the deposit accounts, investment
                  accounts or other accounts in the name of or used by the
                  Company maintained at any bank or other

<PAGE>

                  financial institution are set forth on Schedule 9 to the
                  Debenture, subject to the right of a Company to establish new
                  accounts in accordance with Clause 14(l) below.

           (h)    YEAR 2000 COMPLIANCE: Any reprogramming required to permit the
                  proper functioning, in and following the year 2000, of (i) the
                  computer systems of the Company and (ii) equipment containing
                  embedded microchips (including systems and equipment supplied
                  by others or with which the systems of the Company interface)
                  and the testing of all such systems and equipment, as so
                  reprogrammed, has been completed in all material respects. The
                  computer and management information systems of the Company are
                  and, with ordinary course upgrading and maintenance, will
                  continue for the term of this Agreement to be, sufficient to
                  permit the Company to conduct its business without a material
                  adverse effect on its assets, business or condition (financial
                  or other).

           (i)    ACCURACY AND COMPLETENESS OF INFORMATION: All information
                  furnished by or on behalf of any Corporate Obligor in writing
                  to Burdale in connection with this Agreement or any of the
                  other Finance Documents or any transaction contemplated hereby
                  or thereby, including, without limitation, all information on
                  the Information Certificate of such Corporate Obligor is true
                  and correct in all material respects on the date as of which
                  such information is dated or certified and does not omit any
                  material fact necessary in order to make such information not
                  misleading. No event or circumstance has occurred which has
                  had or could reasonably be expected to have a material adverse
                  affect on the business, assets or condition (financial or
                  otherwise) of any Corporate Obligor, which has not been fully
                  and accurately disclosed to Burdale in writing.

13.2       SURVIVAL OF WARRANTIES; CUMULATIVE

           All representations and warranties contained in this Agreement or any
           of the other Finance Documents shall survive the execution and
           delivery of this Agreement and shall be deemed to have been made
           again to Burdale on each date a Request is submitted and on each
           Utilisation Date and shall be conclusively presumed to have been
           relied on by Burdale regardless of any investigation made or
           information possessed by Burdale. The representations and warranties
           set forth herein shall be cumulative and in addition to any other
           representations or warranties which the Company shall now or
           hereafter give, or cause to be given, to Burdale pursuant to any
           Finance Document.

14.        GENERAL UNDERTAKINGS

           The Company undertakes to Burdale that:

           (a)    MAINTENANCE OF EXISTENCE: The Company shall at all times
                  preserve, renew and keep in full force and effect its
                  corporate existence and rights and franchises with respect
                  thereto and maintain in full force and effect all permits,
                  licenses, trademarks, trade names, approvals, authorisations,
                  leases and contracts necessary to carry on the business as
                  presently or proposed to be conducted PROVIDED, however, that
                  the Company may (i) cause any other Corporate Obligor to
                  dissolve

<PAGE>

                  or otherwise surrender any of the foregoing and (ii) abandon
                  any permit, license, trademark, trade name, approval or
                  authorisation it no longer deems material to its business. The
                  Company shall give Burdale thirty (30) days' prior notice of
                  any proposed change of name or structure, which notice shall
                  set forth the proposed new name or structure and Company shall
                  deliver to Burdale a copy of the amendment to the applicable
                  constituent document of the Company providing for such change
                  appropriately certified as soon as it is available.

           (b)    COMPLIANCE WITH LAWS, REGULATIONS, ETC.: The Company shall, at
                  all times, comply in all material respects with all laws,
                  rules, regulations, directives, licenses, permits, consents,
                  authorisations, approvals and orders applicable to it and duly
                  observe all requirements of any national or local governmental
                  authority, and all statutes and any guidance, circular or
                  regulations issued thereunder, subordinate legislation, common
                  law, equity, rules, orders, permits and stipulations relating
                  to environmental pollution and employee health and safety,
                  where such non-compliance would result in a Material Adverse
                  Effect.

           (c)    PAYMENT OF TAXES AND CLAIMS: The Company shall duly pay and
                  discharge all Taxes, assessments, contributions and
                  governmental charges upon or against it or its properties or
                  assets, except for Taxes the validity of which are being
                  contested in good faith by appropriate proceedings diligently
                  pursued and available to the Company and with respect to which
                  adequate reserves have been set aside on its books. The
                  Company shall be liable for any Tax or penalties imposed on
                  Burdale as a result of the financing arrangements provided for
                  herein and the Company agrees to indemnify and hold Burdale
                  harmless with respect to the foregoing, and to repay to
                  Burdale on demand the amount thereof, and until paid by the
                  Company such amount shall be added and deemed part of the
                  Outstanding Purchase Amount. The foregoing indemnity shall
                  survive the payment of the Obligations and the termination or
                  non-renewal of this Agreement.

           (d)    INSURANCE: The Company shall, at all times, maintain with
                  financially sound and reputable insurers insurance with
                  respect to the Collateral against loss or damage and all other
                  insurance of the kinds and in the amounts customarily insured
                  against or carried by corporations of established reputation
                  engaged in the same or similar businesses and similarly
                  situated. The Company shall furnish certificates, policies or
                  endorsements to Burdale as Burdale shall require as proof of
                  such insurance, and, if the Company fails to do so, Burdale is
                  authorised, but not required, to obtain such insurance at the
                  expense of the Company. All policies shall provide for at
                  least thirty (30) days prior written notice to Burdale of any
                  cancellation. The Company shall cause Burdale to be named as a
                  loss payee and an additional insured (but without any
                  liability for any premiums) under such insurance policies and
                  the Company shall obtain non-contributory lender's loss
                  payable endorsements to all casualty insurance policies in
                  form and substance satisfactory to Burdale. At its option,
                  Burdale may apply any insurance proceeds received by Burdale
                  at any time to the cost of repairs or replacement of
                  Collateral and/or to payment of the Obligations, whether or
                  not then due, in any order and in such manner as Burdale may
                  determine or hold such proceeds as cash collateral for the
                  Obligations.

<PAGE>

           (e)    FINANCIAL STATEMENTS AND OTHER INFORMATION:

                  (i)      The Company shall keep proper books and records in
                           which true and complete entries shall be made of all
                           dealings or transactions of or in relation to the
                           Collateral and the business of the Company and its
                           Subsidiaries in accordance with GAAP and the Company
                           shall furnish or cause to be furnished to Burdale:
                           (1) within thirty (30) days after the end of each
                           fiscal month, monthly unaudited consolidated and
                           consolidating financial statements of the Company and
                           its Subsidiaries (including in each case balance
                           sheets, statements of profit and loss, statements of
                           cash flow and statements of shareholders' funds), all
                           in reasonable detail, fairly presenting the financial
                           position and the results of the operations of the
                           Company and its Subsidiaries as of the end of and
                           through such month, (2) within sixty (60) days after
                           the end of each fiscal quarter, quarterly unaudited
                           consolidated and consolidating financial statements
                           of the Company and its Subsidiaries (including in
                           each case balance sheets, statements of profit and
                           loss, statements of cash flow and statements of
                           shareholders' funds, stock figures and valuations for
                           that quarter, a breakdown of the value and identity
                           of preferential creditors for that quarter and
                           details of all input and output VAT at the end of
                           each VAT quarter), all in reasonable detail, fairly
                           presenting the financial position and the results of
                           the operations of the Company and its Subsidiaries as
                           of the end of and through such fiscal quarter, and
                           (3) within one hundred twenty (120) days after the
                           end of each fiscal year, audited consolidated and
                           consolidating financial statements of the Company and
                           its Subsidiaries (including in each case balance
                           sheets, statements of profit and loss, statements of
                           cash flow and statements of shareholders' funds), and
                           the accompanying notes thereto, all in reasonable
                           detail, fairly presenting the financial position and
                           the results of the operations of the Company and its
                           Subsidiaries as of the end of and for such fiscal
                           year, together with the opinion of the Company's
                           auditors, which shall be a nationally recognised
                           independent accounting firm or, if not, another
                           independent accounting firm selected by the Company
                           and reasonably acceptable to Burdale, that such
                           financial statements have been prepared in accordance
                           with GAAP, and present a true and fair view of the
                           results of operations and financial condition of the
                           Company and its Subsidiaries as of the end of and for
                           the fiscal year then ended.

                  (ii)     The Company shall promptly notify Burdale in writing
                           of the details of (i) any loss, damage,
                           investigation, action, suit, proceeding or claim
                           relating to the Collateral or any other property
                           which is security for the Obligations or which would
                           result in any material adverse change in any
                           Company's business, properties, assets, or condition,
                           financial or otherwise and (ii) the occurrence of any
                           Default.

                  (iii)    The Company shall promptly after the sending or
                           filing thereof furnish or cause to be furnished to
                           Burdale copies of all financial reports which GLC

<PAGE>

                           sends to its stockholders generally and copies of all
                           reports and registration statements which any GLC or
                           any other Borrower (as defined in the Loan Agreement)
                           with the U.S. Securities and Exchange Commission, any
                           U.S. national securities exchange or the National
                           Association of Securities Dealers, Inc.

                  (iv)     The Company shall furnish or cause to be furnished to
                           Burdale such budgets, forecasts, projections and
                           other information in respect of the Collateral and
                           the business of the Company, as Burdale may, from
                           time to time, reasonably request. Burdale is hereby
                           authorised to deliver a copy of any financial
                           statement or any other information relating to the
                           business of any Obligor and any Related Company to
                           any court or other government agency or to any
                           participant or assignee or prospective participant or
                           assignee. The Company hereby irrevocably authorises
                           and directs all accountants or auditors to deliver to
                           Burdale, at Company's expense, copies of the
                           financial statements of any Corporate Obligor or
                           Related Company and any reports or management letters
                           prepared by such accountants or auditors on behalf of
                           any Corporate Obligor or Related Company and to
                           disclose to Burdale such information as they may have
                           regarding the business of any Corporate Obligor or
                           Related Company. Any information provided to Burdale
                           pursuant to this Clause 14(e)(iv) shall be subject to
                           the provisions of Clause 24.2. Any documents,
                           schedules, invoices or other papers delivered to
                           Burdale may be destroyed or otherwise disposed of by
                           Burdale one (1) year after the same are delivered to
                           Burdale, except as otherwise designated by the
                           Company to Burdale in writing.

           (f)    SALE OF ASSETS, CONSOLIDATION, MERGER, DISSOLUTION, ETC.: The
                  Company shall not, directly or indirectly:

                  (i)      merge, amalgamate or consolidate with any other
                           person or permit any other person to merge,
                           amalgamate or consolidate with it;

                  (ii)     sell, assign, lease, transfer, abandon or otherwise
                           dispose of any stock or indebtedness to any other
                           person or any of its assets to any other person
                           (except for (1) sales of stock in the ordinary course
                           of business, (2) the disposition of worn-out or
                           obsolete Equipment or Equipment no longer used in the
                           business of the Company so long as (A) any proceeds
                           are paid into the Blocked Accounts and (B) such sales
                           do not involve Equipment having an aggregate fair
                           market value in excess of the Sterling equivalent of
                           One Million Dollars ($1,000,000) for all such
                           Equipment disposed of in any fiscal year of the
                           Company and (3) in connection with the sale of all or
                           substantially all the assets of the Company or a
                           Subsidiary of the Company or the sale of all the
                           share capital of the Company or a Subsidiary of the
                           Company, sales of such assets or share capital having
                           an aggregate fair market value not to exceed the
                           Sterling equivalent of Twenty Five Million Dollars
                           ($25,000,000) less the fair market value of any
                           assets or share capital previously sold by the
                           Company or such Subsidiary in connection with the
                           sale of all or substantially all the assets of the
                           Company or such

<PAGE>

                           Subsidiary or the sale of all the share capital of
                           such Subsidiary during the term of this Agreement,
                           PROVIDED THAT (A) no Default exists or has occurred
                           and is continuing immediately prior to and after
                           giving effect to such sale and (B) the Company shall
                           pay to Burdale the greater of (1) fifty percent (50%)
                           of the amount by which the aggregate amount (net of
                           Taxes, assumed liabilities and transaction costs)
                           received by the Company from all such sales exceeds
                           the Sterling Equivalent of Five Million Dollars
                           ($5,000,000) and one-hundred percent (100%) of the
                           amount by which the aggregate amount (net of Taxes,
                           assumed liabilities and transaction costs) received
                           by the Company from all such sales exceeds the
                           Sterling Equivalent of Ten Million Dollars
                           ($10,000,000) or (2) the portion of the amount of
                           then Outstanding Purchase Price advanced against any
                           Receivables sold in connection with any such sales
                           (it being agreed that any such payments to Burdale
                           shall not reduce the Facility Limit unless made
                           pursuant to Clause 6.5 and shall not be included in
                           calculating the lending limits hereunder);

                  (iii)    form any Subsidiaries, unless the aggregate amount of
                           all contributions made by the Company to such
                           Subsidiaries is less than the Sterling equivalent of
                           Three Million Dollars ($3,000,000) in the aggregate
                           during the term of this Agreement and PROVIDED THAT
                           (1) no Event of Default or Default, exists or has
                           occurred and is continuing immediately prior to and
                           after giving effect to the formation of each such
                           Subsidiary, (2) if any such Subsidiary is formed on
                           or prior to April 15, 2000, Total Excess Availability
                           exceeds Fifteen Million Dollars ($15,000,000)
                           immediately prior to and after giving effect to such
                           formation or if any such Subsidiary is formed after
                           April 15, 2000, Total Excess Availability exceeds Ten
                           Million Dollars ($10,000,000) immediately prior to
                           and after giving effect to such formation, (3) any
                           such Subsidiary formed engages in a line of business
                           compatible but not competitively adverse with the
                           Company's line of business and (4) the Company shall
                           not contribute to any such Subsidiary any Collateral
                           with a fair market value exceeding in the aggregate
                           more than Ten Thousand Dollars ($10,000) during the
                           term of this Agreement or any proprietary information
                           except that a license to use such proprietary
                           information on a non-exclusive basis shall not be
                           deemed to be a contribution of proprietary
                           information for purposes of this Clause 14(f)(iii);

                  (iv)     acquire the share capital of any person in which such
                           person would become a Subsidiary of the Company
                           except for Permitted Acquisitions;

                  (v)      wind up, liquidate or dissolve except following the
                           transfer of all or substantially all of its assets in
                           a transaction permitted by Clause 14(f)(iii)(3) and
                           14(f)(iii)(4) of this Clause 14(f); or

                  (vi)     agree to do any of the foregoing.

           (g)    ENCUMBRANCES: No Corporate Obligor shall create, incur, assume
                  or suffer to exist any security interest, mortgage, pledge,
                  lien, charge or other Encumbrance

<PAGE>

                  of any nature whatsoever on any of its assets or properties,
                  including, without limitation, the Collateral, except:

                  (i)      the Encumbrances and security interests of Burdale;

                  (ii)     easements, licenses, covenants and other restrictions
                           affecting the use of real property which do not
                           interfere in any material respect with the use of
                           such real property or ordinary conduct of the
                           business of such Obligor as presently conducted
                           thereon or materially impair the value of the real
                           property which may be subject thereto;

                  (iii)    purchase money security interests in Equipment
                           (including finance leases) not so long as such
                           security interests do not apply to any property of
                           such Obligor other than the Equipment so acquired,
                           and the indebtedness secured thereby does not exceed
                           the cost of the Equipment so acquired, as the case
                           may be; and

                  (iv)     the security interests and Encumbrances granted by
                           the Company in favour of Barclays Bank PLC as at the
                           date of this Agreement or replacements therefor that
                           do not extend to any other property or increase the
                           amounts secured.

           (h)    INDEBTEDNESS: No Corporate Obligor shall incur, create,
                  assume, become or be liable in any manner with respect to, or
                  permit to exist, any obligation for borrowed money or
                  indebtedness, except:

                  (i)      the Obligations;

                  (ii)     trade obligations and normal accruals in the ordinary
                           course of business not yet due and payable, or with
                           respect to which such Corporate Obligor is contesting
                           in good faith the amount or validity thereof by
                           appropriate proceedings diligently pursued and
                           available to such Corporate Obligor, and with respect
                           to which adequate reserves have been set aside on its
                           books;

                  (iii)    purchase money indebtedness (including finance
                           leases) to the extent not incurred or secured by
                           Encumbrances (including finance leases) in violation
                           of any other provision of this Agreement;

                  (iv)     indebtedness set forth on the Information Certificate
                           of such Corporate Obligor, PROVIDED THAT, (1) such
                           Corporate Obligor may only make regularly scheduled
                           payments of principal and interest in respect of such
                           indebtedness in accordance with the terms of the
                           agreement or instrument evidencing or giving rise to
                           such indebtedness as in effect on the date hereof,
                           (2) such Corporate Obligor shall not, directly or
                           indirectly, (A) amend, modify, alter or change the
                           terms of such indebtedness or any agreement, document
                           or instrument related thereto as in effect on the
                           date hereof, or (B) except as otherwise permitted
                           under this Agreement, redeem, retire, defease,
                           purchase or otherwise acquire such indebtedness, or
                           set aside

<PAGE>

                           or otherwise deposit or invest any sums for such
                           purpose, and (3) such Corporate Obligor shall furnish
                           to Burdale all notices or demands in connection with
                           such indebtedness either received by such Corporate
                           Obligor or on its behalf, promptly after the receipt
                           thereof, or sent by such Corporate Obligor or on its
                           behalf, concurrently with the sending thereof, as the
                           case may be;

                  (v)      indebtedness owing to a Borrower, GL Canada, GLC or
                           GIFL, PROVIDED THAT no Default exists or has occurred
                           and is continuing immediately prior to and after
                           giving effect to the incurrence, creation or
                           assumption of such indebtedness; and

                  (vi)     other indebtedness together with other indebtedness
                           of all other Borrowers not otherwise permitted under
                           paragraphs (h)(i) to (h)(v) above at any one time not
                           exceeding the Sterling equivalent of Two Million
                           Dollars ($2,000,000) outstanding in the aggregate.

           (i)    LOANS, INVESTMENTS, GUARANTEES, ETC.: No Corporate Obligor
                  shall, directly or indirectly, make any loans or advance money
                  or property to any person, or invest in (by capital
                  contribution, dividend or otherwise) or purchase or repurchase
                  the stock or indebtedness or all or a substantial part of the
                  assets or property of any person, or guarantee, assume,
                  endorse, or otherwise become responsible for (directly or
                  indirectly) the indebtedness, performance, obligations or
                  dividends of any person or agree to do any of the foregoing,
                  except:

                  (i)      the endorsement of instruments for collection or
                           deposit in the ordinary course of business;

                  (ii)     investments in: (1) short-term direct obligations of
                           the United Kingdom and (2) negotiable certificates of
                           deposit issued by any bank satisfactory to Burdale,
                           payable to the order of the relevant Corporate
                           Obligor or to bearer and delivered to Burdale,
                           PROVIDED THAT as to any of the foregoing, unless
                           waived in writing by Burdale, the relevant Corporate
                           Obligor shall take such actions as are deemed
                           necessary by Burdale to perfect the security interest
                           of Burdale in such investments;

                  (iii)    the guarantees set forth in the Information
                           Certificate of each Corporate Obligor;

                  (iv)     Permitted Acquisitions and any transaction permitted
                           by Clause 14(a) and 14(f) ;

                  (v)      loans or advances to, or investments in, or purchases
                           or repurchases of the shares, assets or indebtedness
                           of a Borrower or GL Canada or guarantees or the
                           assumption of letter of credit obligations for the
                           benefit of a Borrower or GL Canada; provided that,
                           (1) no Default exists or has occurred and is
                           continuing immediately prior to and after giving
                           effect to any such loan, advance, investment,
                           purchase, repurchase, guarantee or assumption of
                           letter

<PAGE>

                           of credit obligation and (2) such loans, advances,
                           investments, purchases or repurchases do not violate
                           the capitalisation requirements of the relevant
                           Corporate Obligor under applicable laws;

                  (vi)     loans or advances to GIFL or GLC; provided that, (i)
                           no Default exists or has occurred and is continuing
                           immediately prior to and after giving effect to such
                           loans or advances, (ii) such loans or advances do not
                           violate the capitalisation requirements of the
                           relevant Corporate Obligor under applicable laws, and
                           (iii) all the proceeds of such loans or advances are
                           immediately loaned or advanced by GIFL or GLC, as the
                           case may be, to GL Canada or a Borrower;

                  (vii)    loans or advances to the GLC (1) for the purpose of
                           paying interest due under the Senior Notes, (2) for
                           the purpose of paying management fees to the Sponsors
                           (as defined in the Loan Agreement) or any of their
                           affiliates in an aggregate amount not to exceed the
                           Sterling equivalent of Seven Hundred Thousand Dollars
                           ($700,000) less amounts paid by any Borrower or GL
                           Canada for such purpose in any fiscal year of the
                           Company, or loans or advances to GLC for the purposes
                           set forth in Schedule 9.10 of the Loan Agreement in
                           an aggregate amount not to exceed the Sterling
                           equivalent of $23,000,000 less amounts paid by the
                           Borrowers or GL Canada for such purposes in any
                           fiscal year of the Company PROVIDED THAT, (1) no
                           Default exists or has occurred and is continuing
                           immediately prior to and after giving effect to such
                           loans, advances, guarantees or the assumption of
                           letter of credit obligations, (2) such loans,
                           advances, guarantees or the assumption of letter of
                           credit obligations do not violate the capitalisation
                           requirements of the relevant Corporate Obligor under
                           applicable laws;

                  (viii)   loans or advances to, or guarantees or the assumption
                           of letter of credit obligations for the benefit of
                           GLC or a Subsidiary of GLC (other than a Borrower, GL
                           Canada) PROVIDED THAT (1) no Default exists or has
                           occurred and is not continuing immediately prior to
                           and after giving effect to such loans, advances,
                           guarantees, (2) such loans, advances, guarantees or
                           the assumption of letter of credit obligations do not
                           violate the capitalisation requirements of the
                           relevant Corporate Obligor under applicable laws, (3)
                           if such loans, advances, guarantees or assumption of
                           letter of credit obligations are made on or prior to
                           April 15, 2000, Total Excess Availability exceeds
                           Fifteen Million Dollars ($15,000,000) immediately
                           prior to and after giving effect to such loans,
                           advances, guarantees or the assumption of letter of
                           credit obligations or if such loans, advances,
                           guarantees or the assumption of letter of credit
                           obligations are made after April 15, 2000, Total
                           Excess Availability exceeds Ten Million Dollars
                           ($10,000,000) immediately prior to and after giving
                           effect to such loans, advances, guarantees or the
                           assumption of letter of credit obligations and (iv)
                           such loans or advances are evidenced by a promissory
                           note or notes, the rights to which have been
                           collaterally pledged to Burdale; and

<PAGE>

                  (ix)     other outstanding loans or advances by the Corporate
                           Obligors not to exceed in aggregate the Sterling
                           equivalent of One Million Dollars ($1,000,000) at any
                           time.

           (j)    DIVIDENDS AND REDEMPTIONS: The Company shall not, directly or
                  indirectly, declare or pay any dividends on account of any
                  shares of any class of share capital, as the case may be, of
                  the Company now or hereafter outstanding, or set aside or
                  otherwise deposit or invest any sums for such purpose, or
                  redeem, retire, defease, purchase or otherwise acquire any
                  shares of any class of share capital or, as the case may be,
                  (or set aside or otherwise deposit or invest any sums for such
                  purpose) for any consideration other than ordinary share
                  capital or apply or set apart any sum, or make any other
                  distribution (by reduction of capital or otherwise) in respect
                  of any such shares, as the case may be, or agree to do any of
                  the foregoing.

           (k)    TRANSACTIONS WITH AFFILIATES: No Corporate Obligor shall enter
                  into any transaction for the purchase, sale or exchange of
                  property or the rendering of any service to or by any
                  affiliate, except in the ordinary course of and pursuant to
                  the reasonable requirements of such Corporate Obligor's
                  business and upon fair and reasonable terms no less favourable
                  to such Corporate Obligor than such Corporate Obligor would
                  obtain in a comparable arm's length transaction with an
                  unaffiliated person. For this purpose, affiliate shall not
                  include any Borrower, any Corporate Obligor, GL Canada, GLC,
                  GL Bermuda or GIFL.

           (l)    ADDITIONAL BANK ACCOUNTS: No Corporate Obligor shall, directly
                  or indirectly, open, establish or maintain any deposit
                  account, investment account or any other account with any bank
                  or other financial institution, other than the Charged
                  Accounts as set forth in Schedule 9 to the Debenture, except:
                  (i) as to any new or additional Blocked Accounts and other
                  such new or additional accounts which contain any Collateral
                  or proceeds thereof, with the prior written consent of Burdale
                  and subject to such conditions thereto as Burdale may
                  establish or as required by this Agreement and (ii) as to any
                  accounts used by such Company to make payments of payroll,
                  Taxes or other obligations to third parties, after prior
                  written notice to Burdale.

           (m)    FURTHER ASSURANCES: At the request of Burdale at any time and
                  from time to time, the each Corporate Obligor shall, at its
                  expense, duly execute and deliver, or cause to be duly
                  executed and delivered, such further agreements, documents and
                  instruments, and do or cause to be done such further acts as
                  may be necessary or proper to evidence, perfect, maintain and
                  enforce the security interests and the priority thereof in the
                  Collateral and to otherwise effectuate the provisions or
                  purposes of this Agreement or any of the other Finance
                  Documents. Burdale may at any time and from time to time
                  request a certificate from an officer of any Corporate Obligor
                  representing on behalf of such Corporate Obligor that all
                  conditions precedent to the making of a Utilisation and
                  providing of any L/C contained herein are satisfied. In the
                  event of such request by Burdale, Burdale may, at its option,
                  cease to allow any further Utilisation or provide any further

<PAGE>

                  L/C's until Burdale has received such certificate and, in
                  addition, Burdale has determined that such conditions are
                  satisfied.

15.        EVENTS OF DEFAULT

15.1       DEFAULT

           Each of the events specified below constitutes an Event of Default:

           (a)    any Obligor or GLC fails to pay when due any of the
                  Obligations (other than interest or fees due hereunder);

           (b)    the Company fails to pay any interest or fees within three (3)
                  days after such interest or fees become due hereunder,
                  PROVIDED THAT such three (3) day period shall not apply in the
                  event that Company intentionally diverts payments on
                  Receivables or other proceeds of Collateral from the Blocked
                  Accounts;

           (c)    any Obligor or GLC fails to perform any of the terms,
                  covenants, conditions or provisions contained in this
                  Agreement or any of the other Finance Documents and such
                  failure shall continue for ten (10) Business Days, PROVIDED
                  THAT, such ten (10) Business Day period shall not apply in the
                  case of (1) any failure to perform a term, covenant, condition
                  or provision which results in the occurrence of an Event of
                  Default addressed in any other provision or paragraph of this
                  Clause 15.1, (2) any failure to perform any such term,
                  covenant, condition or provision that has been the subject of
                  two (2) previous failures within the prior twelve (12) month
                  period or (3) an intentional breach by any Obligor or GLC of
                  such term, covenant, condition or provision;

           (d)    any representation, warranty or statement of fact made by the
                  Company to Burdale in this Agreement, the other Finance
                  Documents or any other agreement, schedule, confirmatory
                  assignment or otherwise shall when made or deemed made be
                  false or misleading in any material respect;

           (e)    any Obligor or any Related Company revokes or terminates any
                  of the terms, covenants, conditions or provisions of any
                  guarantee, endorsement or other agreement of such party in
                  favour of Burdale;

           (f)    any judgment for the payment of money is rendered against any
                  Obligor in excess of the Sterling equivalent of Two Million
                  Five Hundred Thousand Dollars ($2,500,000) in any one case or
                  in excess of the Sterling equivalent of Five Million Dollars
                  ($5,000,000) in the aggregate and shall remain undischarged or
                  unvacated for a period in excess of thirty (30) days or
                  execution shall at any time not be effectively stayed, or any
                  material judgment other than for the payment of money, or
                  injunction, attachment, sequestration, distress, garnishment
                  or execution is rendered against the Company or any of its
                  assets;

           (g)    any Obligor dissolves or suspends or discontinues doing
                  business;

<PAGE>

           (h)    Any liquidator, trustee in bankruptcy, judicial custodian,
                  compulsory manager, receiver, administrative receiver,
                  administrator or the like is appointed in respect of any
                  Obligor or any material part of its assets.

           (i)    The directors of any Corporate Obligor request the appointment
                  of a liquidator, trustee in bankruptcy, judicial custodian,
                  compulsory manager, receiver, administrative receiver,
                  administrator or the like.

           (j)    Any other steps are taken to enforce any Encumbrance over any
                  material part of the assets of any Obligor.

           (k)    Any Obligor is, or is deemed for the purposes of any law to
                  be, unable to pay its debts as they fall due or to be
                  insolvent, or admits inability to pay its debts as they fall
                  due.

           (l)    Any Obligor suspends making payments on all or any class of
                  its debts or announces an intention to do so, or a moratorium
                  is declared in respect of any of its indebtedness.

           (m)    Any Obligor, by reason of financial difficulties, begins
                  negotiations with all or any class of its creditors with a
                  view to the readjustment or rescheduling of any of its
                  indebtedness.

           (n)    Any step (including petition, proposal or convening a meeting)
                  is taken with a view to a composition, assignment or
                  arrangement with any creditors of any Obligor.

           (o)    A meeting of any Corporate Obligor or is convened for the
                  purpose of considering any resolution for (or to petition for)
                  its winding-up or for its administration or any such
                  resolution is passed.

           (p)    Any person presents a petition for the winding-up or for the
                  administration or for the bankruptcy of any Obligor unless
                  (other than in the case of a petition for administration) the
                  relevant Obligor can demonstrate to the satisfaction of
                  Burdale (acting reasonably) that the relevant petition is
                  frivolous, vexatious or an abuse of process of the court or
                  that it relates to a claim to which the relevant Obligor has a
                  good defence which it is diligently pursuing.

           (q)    An order for the winding-up or administration or bankruptcy of
                  any Obligor is made.

           (r)    Any other step (including petition, proposal or convening a
                  meeting) is taken with a view to administration,
                  custodianship, liquidation, winding-up, dissolution or
                  bankruptcy of any Obligor or any other insolvency or analogous
                  proceedings involving any such person unless, in the case of a
                  petition (other than in the case of a petition for
                  administration) the relevant Obligor can demonstrate to the
                  satisfaction of Burdale (acting reasonably) that the relevant
                  petition is frivolous,

<PAGE>

                  vexatious or an abuse of process of the court or that it
                  relates to a claim to which the relevant Obligor has a good
                  defence which it is diligently pursuing.

           (s)    There occurs, in relation to any Obligor, any event anywhere
                  which, in the opinion of Burdale, appears to correspond with
                  any of those mentioned in paragraphs (h) to (r) (inclusive)
                  above.

           (t)    any default by any Obligor or any Related Company under any
                  agreement, document or instrument relating to any indebtedness
                  for borrowed money owing to any person other than Burdale, or
                  any capitalised lease obligations, contingent indebtedness in
                  connection with any guarantee, letter of credit, indemnity or
                  similar type of instrument in favour of any person other than
                  Burdale, in any case in an amount in excess of the Sterling
                  equivalent of Two Million Five Hundred Thousand Dollars
                  ($2,500,000), which default continues for more than the
                  applicable cure period, if any, with respect thereto;

           (u)    GLC ceases to hold, directly or indirectly, all of the share
                  capital of the Company;

           (v)    the indictment or threatened indictment of any Corporate
                  Obligor or any Related Company under any criminal statute, or
                  the commencement or threatened commencement of criminal or
                  civil proceedings against any Corporate Obligor or any Related
                  Company, pursuant to which statute or proceedings the
                  penalties or remedies sought or available include forfeiture
                  of any of the material property of such Corporate Obligor or
                  Related Company (as the case may be);

           (w)    any default by any Borrower or GL Canada or an "Event of
                  Default" shall occur under the terms of the Loan Agreement or
                  the Canadian Loan Agreement or any other agreement, document,
                  note and/or instrument executed or delivered in connection
                  therewith;

           (x)    there shall be a material adverse change in the business,
                  assets or condition (financial or otherwise) of any Corporate
                  Obligor or any Related Company after the date hereof; or

           (y)    there shall be an Event of Default under any of the other
                  Finance Documents and/or Financing Agreements.

15.2       ACTION ON DEFAULT

           Upon the occurrence of any Event of Default and whilst the same is
           continuing, and without prejudice to any of Burdale's rights under
           this Agreement, Burdale may, by notice to the Company:

           (a)    declare that an Event of Default has occurred; and/or

           (b)    declare that the Facility shall be cancelled, whereupon the
                  Facility shall be so cancelled and all fees (including without
                  limitation pursuant to Clause 6.5(b))

<PAGE>

                  payable in relation to the Facility shall become immediately
                  due and payable; and/or

           (c)    declare that the Company shall forthwith pay or procure the
                  payment to Burdale of a sufficient sum to cover the amount of
                  all Outstanding Purchase Price and/or any contingent
                  obligations of Burdale under any outstanding L/Cs, whereupon
                  the same shall become immediately due and payable and, once
                  paid, shall be held by Burdale in an interest bearing account
                  for application against such Outstanding Purchase Price or
                  contingent obligation (as the case may be), provided that any
                  sum remaining after settling such payments shall be applied
                  first in settlement of any other amounts then due and payable
                  to Burdale under the Finance Documents and, subject to that,
                  any balance shall be promptly repaid to the Company or other
                  person entitled to the balance.

15.3       APPOINTMENT OF INSOLVENCY OFFICER

           If any liquidator, trustee in bankruptcy, judicial custodian,
           compulsory manager, receiver, administrative receiver, administrator
           or any other insolvency officer (or its equivalent in any
           jurisdiction) is appointed in respect of any Obligor or any Related
           Company or any part of its assets (whether on the application or with
           the consent of Burdale or otherwise) then Burdale may (with or
           without it first having exercised any of its other rights under the
           Finance Documents), by notice to the Company, declare that the fee
           specified in Clause 6.5(b) be immediately due and payable or, at
           Burdale's option, payable upon demand as if the Facility Limit at
           such time had been reduced to zero, whereupon such fee shall become
           immediately due and payable or payable on demand (as the case may
           be).

16.        COSTS, EXPENSES AND FEES

16.1       COSTS AND EXPENSES

           The Company shall pay to Burdale on demand all reasonable costs,
           expenses, filing fees and Taxes paid or payable in connection with
           the preparation, negotiation, execution, delivery, recording,
           administration, collection, liquidation, enforcement and defence of
           the Obligations, Burdale's rights in the Collateral, this Agreement,
           the other Financing Agreements and all other documents related hereto
           or thereto, including any amendments, supplements or consents which
           may hereafter be contemplated (whether or not executed) or entered
           into in respect hereof and thereof, including, but not limited to:

           (a)    all costs and expenses of filing, registering or recording
                  (including filing Taxes and fees, documentary Taxes,
                  intangibles Taxes and mortgage recording Taxes and
                  presentation fees, if applicable);

           (b)    all costs and expenses and fees for title insurance and other
                  insurance premiums, environmental audits, surveys,
                  assessments, engineering reports and inspections, appraisal
                  fees and search fees;

<PAGE>

           (c)    costs and expenses of remitting loan proceeds, collecting
                  cheques and other items of payment, and establishing and
                  maintaining the Charged Accounts, together with Burdale's
                  customary charges and fees with respect thereto;

           (d)    charges, fees or expenses charged by any bank or issuer in
                  connection with the L/C's;

           (e)    costs and expenses of preserving and protecting the
                  Collateral;

           (f)    costs and expenses paid or incurred in connection with
                  obtaining payment of the Obligations, enforcing the security
                  interests and Encumbrances of Burdale, selling or otherwise
                  realising the Collateral, and otherwise enforcing the
                  provisions of this Agreement and the other Finance Documents
                  or defending any claims made or threatened against Burdale
                  arising out of the transactions contemplated hereby and
                  thereby (including, without limitation, preparations for and
                  consultations concerning any such matters);

           (g)    all out-of-pocket expenses and costs incurred by Burdale's
                  examiners in the conduct of their periodic field examinations
                  of the Collateral and any Company's operations, plus a charge
                  at the rate of the Daily Rate, per day for Burdale's examiners
                  in the field and office; and

           (h)    the fees and disbursements (plus VAT) of legal advisors to
                  Burdale in connection with any of the foregoing.

16.2       FEES

           (A)    FACILITY FEE: The Company will pay to Burdale today a facility
                  fee equal to 0.75% on the amount of the Facility Limit.

           (B)    COMMITMENT FEE: The Company will pay to Burdale a commitment
                  fee computed at the rate of 0.375% per annum on the daily
                  undrawn/unutilised balance of the Facility Limit. Accrued
                  Commitment Fee shall be payable monthly in arrears from
                  today's date and also on the date on which the Facility is
                  terminated. Commitment fee shall accrue from day to day and be
                  calculated on the basis of a 365 day year and for the actual
                  number of days elapsed.

           (C)    MONITORING FEE: The Company will pay to Burdale a monitoring
                  fee of $2,000 monthly in advance with the first payment to be
                  made on today's date.

           (D)    L/C FEE: The Company will pay to Burdale a fee equal to 1.25%
                  per annum on the face amount of each L/C issued at the
                  Company's request in respect of the period between the date of
                  issue of the L/C and the End Date of such L/C. The fee shall
                  be calculated on the basis of a 365 day year and shall be paid
                  monthly in arrears and on the End Date of such L/C.

17.        INDEMNITIES

17.1       CURRENCY INDEMNITY

<PAGE>

           If any amount payable by the Company under or in connection with any
           of the Finance Documents is received by Burdale in a currency other
           than that agreed to be payable under the Finance Documents, whether
           as a result of any judgment or order or other enforcement, the
           liquidation or bankruptcy of the Company or otherwise howsoever and
           the amount produced by converting the currency so received into the
           agreed currency is less than the relevant amount of the agreed
           currency, then the Company will indemnify Burdale for the deficiency
           and any loss sustained as a result. Such conversion will be made at
           the Exchange Rate, on such date and in such market as is determined
           by Burdale as being most favourable for such conversion. The Company
           will in addition pay the costs of such conversion.

17.2       OTHER INDEMNITIES

           The Company will indemnify Burdale on demand against any loss or
           liability which Burdale incurs as a result of:

           (a)    the occurrence of any Event of Default;

           (b)    any payment of principal or other amount being received from
                  any source otherwise than on its due date under this
                  Agreement;

           (c)    any Utilisation not being effected after the Company has
                  delivered a Request in respect of such Utilisation other than
                  as a result of Burdale's negligence or default;

           (d)    any prepayment or provision of cash collateral by the Company
                  not being made in accordance with the terms of this Agreement.

           In each case the Company's liability includes (without limitation)
           any loss of margin or anticipated profits or other loss or expense on
           account of funds borrowed, contracted for or utilised to fund any
           amount payable under any Finance Document and on account of any
           security given by Burdale in relation to those funds and in relation
           to any amount repaid or prepaid in relation to any Finance Document.

17.3       STAMP DUTY

           Immediately upon demand, the Company shall pay and indemnify Burdale
           against any liability it incurs for any stamp, registration or
           similar tax or duty (and any applicable penalties) which is or
           becomes payable because of the entry into, performance or enforcement
           of any Finance Document.

17.4       GENERAL PROVISIONS REGARDING INDEMNITIES

           Each of the indemnities contained in Clauses 17.1 to 17.3 inclusive
           (the "INDEMNITIES") will remain in full force and effect until such
           time as all amounts to which such Indemnities are expressed to relate
           have been paid in full. The Indemnities are additional to and not
           instead of any security or other guarantee or indemnity at any time
           existing in favour of any person.

<PAGE>

18.        EVIDENCE OF INDEBTEDNESS

           In any proceedings relating to any Finance Document a statement as to
           any amount due to Burdale under this Agreement which is certified as
           being correct by an officer of Burdale will in the absence of
           manifest error be conclusive evidence that such amount is in fact due
           and payable.

19.        NOTICES

19.1       DELIVERY AND RECEIPT

           All notices pertaining to this Agreement shall be given in writing or
           facsimile and shall be deemed to be given as follows:

           (a)    if in writing, when delivered; and

           (b)    if by facsimile, when received,

           save that any notice delivered or received on a non-working day or
           after business hours shall be deemed to be given on the next working
           day at the place of delivery or receipt.

19.2       ADDRESSES

           (a)    The Company's address and facsimile number for notices are:

                  Royal Court
                  81 Tweedy Road
                  Bromley
                  Kent
                  BR1 1TW

                  Facsimile no:                     0208 626 6855
                  For the attention of:             David Lund

                  or such as the Company may notify to Burdale by not less than
                  10 days' notice.

           (b)    Burdale's address and facsimile number for notices are:

                  53 Queen Anne Street
                  London W1M 0HP

                  Facsimile no:                     0171 935 5445
                  For the attention of:             Company Secretary

                  or such as Burdale may notify to the Company by not less than
                  10 days' notice.

20.        WAIVER, REMEDIES CUMULATIVE

<PAGE>

           The rights of Burdale under the Finance Documents:

           (a)    may be exercised as often as necessary;

           (b)    are cumulative and not exclusive of its rights under the
                  general law; and

           (c)    may be waived only in writing and specifically.

           Delay in exercising or non-exercise of any right shall not be deemed
           to be a waiver of that right.

21.        INVALIDITY

           If any of the provisions of any Finance Document become invalid,
           illegal or unenforceable in any respect under any law, the validity,
           legality and enforceability of the remaining provisions will not in
           any way be affected or impaired.

22.        ASSIGNMENT AND PARTICIPATION

22.1       ASSIGNMENT

           The Finance Documents shall be binding upon and inure to the benefit
           of and be enforceable by Burdale, the Company and their respective
           successors and assigns, except that the Company may not assign its
           rights under any Finance Document. Burdale may, after notice to the
           Company, assign its rights and delegate any or all of its obligations
           under the Finance Documents.

22.2       TRANSFER BY BURDALE

           Burdale may at any time assign, transfer or offer participations in
           all or a proportion of all its rights and obligations under the
           Finance Documents to any other bank or financial institution.

23.        GOVERNING LAW AND JURISDICTION

23.1       GOVERNING LAW

           This Agreement will be governed by and construed in accordance with
           English law.

23.2       JURISDICTION

           For the benefit of Burdale, the Company irrevocably agrees that the
           courts of England will have non-exclusive jurisdiction to settle any
           disputes which may arise out of or in connection with this Agreement
           and that accordingly any suit, action or proceeding arising out of or
           in connection with this Agreement may be brought in such courts.

23.3       PROCESS AGENT

<PAGE>

           For the benefit of Burdale, the Company irrevocably accepts its
           appointment as GLC's agent for the service of process pursuant to the
           GLC Guarantee.

24.        DISCLOSURE OF INFORMATION

24.1       PUBLICITY

           Burdale may advertise or publicise in such publications and to such
           persons as Burdale may in its discretion think fit such particulars
           of this transaction as Burdale may in its absolute discretion deem
           appropriate.

24.2       CONFIDENTIAL INFORMATION

           Burdale agrees to hold, in accordance with its customary procedures
           for handling confidential information and safe and sound lending
           practices, any confidential information that it may receive from any
           Obligor or Related Company pursuant to this Agreement in confidence,
           except for disclosure:

           (a)    to legal counsel, accountants, auditors and other professional
                  advisors to any Obligor or any Related Company or Burdale;

           (b)    to regulatory officials having jurisdiction over Burdale;

           (c)    as required by applicable law or legal process (provided that
                  in the event Burdale is so required to disclose any such
                  confidential information, that Burdale shall endeavour
                  promptly to notify the Obligor or Related Company (as the case
                  may be), so that the Obligor or Related Company (as the case
                  may be) may seek a protective order or other appropriate
                  remedy) or in connection with any legal proceeding to which
                  Burdale or such Obligor or Related Company (as the case may
                  be) are adverse parties;

           (d)    to another financial institution or its counsel in connection
                  with an assignment or disposition or proposed assignment or
                  disposition to that financial institution of all or part of
                  Burdale's interests hereunder or a participation interest
                  herein, provided that such disclosure is made subject to an
                  appropriate confidentiality agreement on terms substantially
                  similar to this Clause; and

           (e)    to prospective purchasers of any Collateral (other than
                  competitors of any Obligor or Related Company or their
                  Subsidiaries unless all Obligations are then due and payable)
                  in connection with any disposition thereof, provided that such
                  disclosure is made subject to an appropriate confidentiality
                  agreement on terms substantially similar to this Clause.

           For purposes of the foregoing, "confidential information" shall mean
           all information respecting any Obligor or any Related Company, other
           than (a) information previously filed with any governmental agency
           and available to the public, (b) information previously published in
           any public medium from a source other than, directly or

<PAGE>

           indirectly, Burdale, and (c) information previously disclosed by GLC
           or any of its Subsidiaries to any person not associated with GLC
           without a written confidentiality agreement.

           Nothing in this Clause 24 shall be construed to create or give rise
           to any fiduciary duty on the part of Burdale to any Obligor or any
           Related Company or their Subsidiaries.

25.        COUNTERPARTS

           This Agreement may be executed in any number of counterparts and all
           of such counterparts taken together will be deemed to constitute one
           and the same instrument.

This Agreement has been entered into on the date stated at the beginning of the
Agreement.

<PAGE>

                                   SCHEDULE 1
                              CONDITIONS PRECEDENT

AUTHORISATIONS

1.         A certified copy of the memorandum and articles of association and
           certificate of incorporation and all certificates of incorporation on
           change of name of each Corporate Obligor and copies of the equivalent
           US constitutional documentation for GLC.

2.         A certified copy of a resolution of the board of directors of each
           Corporate Obligor and GLC approving each of the Finance Documents to
           which it is a party and the transactions contemplated by each of such
           Finance Documents and authorising a specified person or persons to
           execute each of the Finance Documents (as a deed where necessary) and
           to give all notices, requests, instructions, certificates and other
           documents to Burdale in connection with such Finance Documents.

3.         A director's certificate executed by a director of each Corporate
           Obligor and a secretary's certificate executed by the secretary of
           GLC:

           (a)    certifying that all corporate action of such Corporate Obligor
                  or Related Company (as the case may be) required to enable it
                  to enter into, execute and perform each of the Finance
                  Documents to which it is a party and to authorise the
                  transactions contemplated therein has been taken;

           (b)    setting out the specimen signatures of those persons referred
                  to in 2 above; and

           (c)    in relation to the Corporate Obligors only, certifying that
                  utilisation of the Facility Limit would not cause any
                  borrowing limit binding on it to be exceeded.

4.         A certified copy of all other resolutions, authorisations, approvals,
           consents and licences (corporate, official or otherwise (including
           exchange control consents)) necessary or desirable for the entry into
           and performance of the Finance Documents to which each Obligor and
           each Related Company is party and/or for the enforceability and
           validity of such Finance Documents.

5.         A telephone and facsimile indemnity in the form set out in Schedule
           4.

DOCUMENTS AND SECURITY

6.         The Finance Documents duly executed by each party to them (excluding
           Burdale).

7.         A certified copy of each notice required to be despatched pursuant to
           the Debenture.

8.         Acknowledgements from all recipients of the notices referred to in 7
           above as required by the Debenture or agreement by the relevant
           recipient of the form of acknowledgement to be given by it.

<PAGE>

9.         Evidence of the level and extent of the insurance of the Company and
           that Burdale is stated as loss payee and joint insured and that the
           insurance policies comply with the requirements of the Finance
           Documents.

10.        Details of the amounts standing to the credit of each Charged Account
           as at, or immediately prior to, today's date.

WAIVERS AND CONSENTS

11.        All waivers, releases, terminations and other documents as Burdale
           may request to evidence and effect the termination of any existing
           financing arrangements of each Corporate Obligor with any other
           lender and the termination and release by any such other lenders of
           any and all of its/their interests pursuant to their financing
           arrangements with each Corporate Obligor.

12.        All consents, waivers, acknowledgements and other agreements from
           third persons which Burdale may deem necessary or desirable in order
           to permit, protect and perfect the security interests granted by the
           Corporate Obligors to Burdale including, without limitation, waivers
           by lessors, owners or mortgagees, processors, warehousers or
           consignees of any security interests, or other claims which such
           persons may have in relation to the Collateral.

AVAILABILITY LIMIT INFORMATION

13.        A schedule of Receivables and all such other information as Burdale
           requires pursuant to Clause 4 in order to determine the amount of
           Eligible Receivables and Eligible Unbilled Receivables as at today's
           date.

14.        Such information as Burdale may require in order to determine each
           Availability Limit for the purposes of Clause 4.

15.        Burdale having determined the Availability Limits pursuant to Clause
           4 to apply as from today's date.

MISCELLANEOUS

16.        Evidence that the total amount available for Utilisation immediately
           following the proposed Initial Utilisations shall not be less than
           L1,000,000.

17.        Any fees due and costs to be met pursuant to Clause 16 having been
           paid.

18.        Satisfactory results to all final company searches in relation to
           each Corporate Obligor.

19.        Opinion from Counsel in California.

20.        A certified copy of any Inter-company loan agreement.

<PAGE>

21.        Copies of such other deeds, documents, consents or authorities as it
           requires having regard to the transactions contemplated by this
           Agreement and the reasonable requirements of Burdale to protect its
           interests as a lender.

<PAGE>

                                   SCHEDULE 2
                        PART I - FORM OF PURCHASE REQUEST

Date:                *

To:                  Burdale Financial Limited
                     53 Queen Anne Street
                     LONDON W1M 0HP

Attention:           Company Secretary

Dear Sirs,

FACILITY AGREEMENT DATED * (THE "FACILITY AGREEMENT")

We refer to the Facility Agreement, terms defined in which have the same meaning
when used in this Purchase Request.

1.         We wish to sell to Burdale on or before * or such later date as the
           Company agrees with Burdale (the "PURCHASE DATE") the Receivables
           numbered assignment * amounting to L* details of which are set out in
           the attached Schedule, initialled on each page for the purposes of
           identification.

2.         We hold the invoice (if any) strictly to your order and agree to
           supply it, or a copy (certified by an officer of the Company or
           otherwise as Burdale may from time to time approve) together with
           certified copies of relevant shipping documents in respect of such
           Receivables, and a copy of our irrevocable instructions to the
           Account Debtor to pay the full amount of the relevant Receivable
           (without deduction, withholding or set off) at maturity to the
           Blocked Accounts, forthwith upon your request.

3.         We further confirm that the relevant Receivables offered are readily
           identifiable from the books of the Company.

           [TO BE INSERTED IN FIRST PURCHASE REQUEST ONLY]

4.         [In addition to the offer made in paragraph 1 above, we hereby offer
           to sell to you all future Receivables (during the continuance of the
           Facility Agreement) subject to the terms of the Facility Agreement
           (including in relation to the calculation of the Purchase Price).
           This offer together with the offer made in paragraph 1 above shall be
           regarded as a single composite offer which may be accepted or
           rejected in its entirety but not in part only. Your acceptance of
           this offer shall be demonstrated by the payment to us of any amount
           of Purchase Price in relation to the Receivables described in
           paragraph 1 above.]

We confirm that no Default has occurred and is continuing or would result from
Burdale purchasing the Receivables offered, no Availability Limit will be
breached as a result of Burdale

<PAGE>

purchasing the Receivables offered and all the representations and warranties in
Clauses 8 and 13 of the Facility Agreement which are to be made or repeated as
at the date of this Purchase Request are true and correct.

The terms of the Agreement shall apply to this Purchase Request.

Yours faithfully

for and on behalf of
[the Company]

                                    SCHEDULE

   INVOICE NO                     ACCOUNT DEBTOR                    INVOICE DATE

<PAGE>

                         PART II - FORM OF CASH REQUEST

Date:                *

To:                  Burdale Financial Limited
                     53 Queen Anne Street
                     LONDON W1M 0HP

Attention:           Company Secretary

Dear Sirs,

FACILITY AGREEMENT DATED * (THE "FACILITY AGREEMENT")

We refer to the Facility Agreement, terms defined in which have the same meaning
when used in this Cash Request.

Pursuant to the terms of Clause 5.2, we wish you to pay to us the sum of L* as
follows:

(a)        Utilisation Date:              *

(b)        Payment Instructions:          Please credit the following account:

                                          Account Name:        *
                                          Bank:                * Bank plc
                                          Branch:              * Branch
                                          Account No:          *
                                          Sort Code:           **-**-**

We confirm that no Default has occurred and remains outstanding or would result
from the requested Utilisation being made, no Availability Limit would be
breached by the making of the requested Utilisation and that all the
representations and warranties in Clauses 8 and 13 which are to be made or
repeated as at the date of this Cash Request are true and correct.

Yours faithfully

for and on behalf of
[the Company]

<PAGE>

                         PART III - FORM OF L/C REQUEST

Date:                *

To:                  Burdale Financial Limited
                     53 Queen Anne Street
                     LONDON W1M 0HP

Attention:           Company Secretary

Dear Sirs,

FACILITY AGREEMENT DATED * (THE "FACILITY AGREEMENT")

We refer to the Facility Agreement, terms defined in which have the same meaning
when used in this L/C Request.

We wish to have [state type of L/C] opened for our account under the Facility
Agreement as follows:

(a)        Issue Date:                              *

(b)        Expiry Date:                             *

(c)        Requested Amount:                        *

(d)        Beneficiary:                             *

(e)        Beneficiary's bank account:              *

(f)        Concerning:                              [Reference the agreement
                                                    under which the liability
                                                    arises, describe its nature
                                                    and quantify it]

We confirm that no Default has occurred and is continuing or would result from
the requested Utilisation, no Availability Limit will be breached as a result of
the requested Utilisation and all the representations and warranties in Clauses
8 and 13 of the Facility Agreement which are to be made or repeated as at the
date of this L/C Request are true and correct.

Yours faithfully

for and on behalf of
[the Company]

<PAGE>

                                   SCHEDULE 3
                          PREFERENTIAL CREDITOR LISTING

To:                  Burdale Financial Limited
                     53 Queen Anne Street
                     LONDON W1M 0HP

Attention:           Company Secretary

Dear Sirs,

As at the month ended * preferential creditors were as follows:

<TABLE>
<CAPTION>

                                                     L                         Period               Due Date
<S>                                           <C>                              <C>                  <C>
Wages & Salary

PAYE/NIC

VAT

Other (Please specify)

Total
                                              --------------------
                                              --------------------
</TABLE>

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

Payments during the month ended * were as follows:

<TABLE>
<CAPTION>
                                                     L                         Period               Due Date
<S>                                           <C>                              <C>                  <C>
Wages & Salary

PAYE/NIC

VAT

Other (Please specify)

Total
                                              --------------------
                                              --------------------
</TABLE>

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

I certify that the information contained in this report is correct:

Signature:....................................

Name:..........................................                Date:

<PAGE>

                                   SCHEDULE 4
                        TELEPHONE AND FACSIMILE INDEMNITY

                       CORPORATE MANDATE FOR TELEPHONE AND
                             FACSIMILE INSTRUCTIONS

1.       We, (Name of ......................................................(the

         "COMPANY") of.............................................. (Registered

         Office) refer to the Facility Agreement dated..........................

         between Burdale Financial Limited ("BURDALE") and the Company (the
         "FACILITY AGREEMENT") pursuant to which Burdale is to operate
         account(s) and/or credit or other facilities or banking arrangements
         for the Company (together the "FACILITIES").

2.       In consideration of Burdale entering into the Agreement and agreeing to
         make the Facilities available to act in accordance with the terms of
         this Mandate:

         (a)      notwithstanding the terms of the Facility Agreement, any
                  existing contractual relationship or any future mandate or
                  other agreement or course of dealing between Burdale and the
                  Company, Burdale is requested and authorised to rely upon, and
                  act in accordance with, any notice, demand or other
                  communication in respect of the Facilities (each an
                  "INSTRUCTION" and together "INSTRUCTIONS") which may from time
                  to time be, or purport to be, given by way of the methods of
                  communication specified in the Schedule on behalf of the
                  Company by any two of the persons identified in the relevant
                  sections in the Schedule without any enquiry on Burdale's part
                  as to the authority or identity of the persons giving or
                  purporting to give such Instruction or Instructions and
                  regardless of the circumstances prevailing at the time of such
                  Instruction or Instructions;

         (b)      Burdale shall be entitled to treat any Instruction as fully
                  authorised by, and binding upon, the Company and shall be
                  entitled (but not bound) to take such steps in connection
                  with, or in reliance upon, such Instruction as Burdale in its
                  sole and absolute discretion may consider appropriate, whether
                  such Instruction includes an instruction to pay money or
                  otherwise to debit or credit any account, or relates to the
                  disposition of any money, securities or documents, or purports
                  to bind the Company to any agreement or other arrangement with
                  Burdale or with any other person or to commit the Company to
                  any other type of transaction or arrangement whatsoever,
                  regardless of the nature of the transaction or arrangement or
                  the amount of money involved and notwithstanding any error or
                  misunderstanding or lack of clarity in the terms of such
                  Instruction; and

         (c)      the Company undertakes forthwith on demand by Burdale to
                  indemnify Burdale and to keep Burdale indemnified against all
                  losses, claims, actions, proceedings, demands, damages, costs
                  and expenses incurred or sustained by Burdale, of any nature
                  and howsoever arising, out of or in connection with its
                  acknowledgement and compliance with any Instruction or
                  Instructions.

<PAGE>

3.       The Company acknowledges and agrees that Burdale and each of Burdale's
         nominees or agents shall not be responsible for any claim, action,
         proceeding, demands, loss, damage, liability cost or expenses of any
         nature and howsoever suffered or incurred arising directly or
         indirectly as a result of any act or thing which Burdale and/or such
         nominee or agent allows, takes or does or omits to allow, take or do in
         relation to the Instructions or any of them under or pursuant to this
         mandate other than in respect of Burdale's negligence or wilful
         default.

4.       The terms of this Mandate shall remain in full force and effect unless
         and until Burdale receives a written notice of termination of this
         Mandate from the Company giving not less than seven days' notice of
         termination and signed by an officer of the Company (as to whose
         identity and authority Burdale shall be under no obligation or duty to
         the Company to make any enquiry whatsoever) PROVIDED THAT such seven
         days' notice period shall not commence until the date, Burdale
         acknowledges receipt of such written notice that such termination will
         not release the Company from any liability under this Mandate in
         respect of any act performed by Burdale in accordance with the terms of
         this Mandate prior to the effective date of termination of this
         Mandate.

5.       This Mandate shall be governed by, and construed in accordance with
         English Law. The Company agrees for the benefit of Burdale that the
         courts of England shall have jurisdiction to hear and determine any
         suit, action proceeding and to settle any disputes which may arise
         under or in connection with this Mandate and for such purpose the
         Company irrevocably submits to the non-exclusive jurisdiction of such
         courts.

Signed........................................................

Dated.........................................................

Duly authorised for and on behalf of (Name of Company)..........................

pursuant to a Resolution of the Board of Directors dated........................

<TABLE>
<CAPTION>

                                  THE SCHEDULE

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

    *METHOD OF COMMUNICATION         PERSONS AUTHORISED TO GIVE INSTRUCTIONS               SIGNATURE
<S>                                <C>                                           <C>
---------------------------------- --------------------------------------------- -------------------------------

Telephone
---------------------------------- --------------------------------------------- -------------------------------

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

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

Facsimile
---------------------------------- --------------------------------------------- -------------------------------

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

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

Other (specify):
---------------------------------- --------------------------------------------- -------------------------------

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

<PAGE>

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

---------------------------------- --------------------------------------------- -------------------------------
</TABLE>

*        Complete as appropriate - in the absence of completion, no instructions
         will be accepted in relation to that method of communication.
                                   SIGNATORIES

THE COMPANY:

GEOLOGISTICS LIMITED

By:

BURDALE:

BURDALE FINANCIAL LIMITED

By:

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