Document:

Exhibit 4.1

This Security is a Book-Entry Security within the meaning of the
Indenture hereinafter referred to and is registered in the name
of the Depositary or a nominee of the Depositary.  This Security
is exchangeable for Securities registered in the name of a person
other than the Depositary or its nominee only in the limited
circumstances described in the Indenture and may not be
transferred except as a whole by the Depositary to a nominee of
the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary.

Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York
corporation ("DTC"), to the Company (as defined below) or its
agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in
such other name as is requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC),
ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

EXCEPT AS OTHERWISE PROVIDED IN THE INDENTURE, THIS SECURITY MAY
BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO A NOMINEE OF
THE DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY, TO THE
DEPOSITARY OR TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY.

                THE MAY DEPARTMENT STORES COMPANY

                    8-3/4% DEBENTURE DUE 2029

                                                CUSIP 577778 BL 6

                                                     $250,000,000
R-1

        THE MAY DEPARTMENT STORES COMPANY, a corporation duly
organized and existing under the laws of the State of New York
(herein called the "Company", which term includes any successor
corporation under the Indenture herein referred to), for value
received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of TWO HUNDRED FIFTY MILLION DOLLARS
($250,000,000) on May 15, 2029, and to pay interest thereon from
May 15, 2000 or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually
on March 1 and September 1 of each year, commencing May 15, 2000,
at the rate of 8-3/4% per annum, until the principal hereof is

<PAGE>

fully paid or made available for payment.  The interest so
payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest, which shall be the
fifteenth day of February or August (whether or not a Business
Day), as the case may be, next preceding such Interest Payment
Date.  Any such interest not so punctually paid or duly provided
for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on
which the Debentures of this series may be listed, and upon such
notice as may be required by such exchange, all as more fully
provided in such Indenture.

        Payment of the principal of and interest on this
Security will be made at the office or agency of the Company
maintained for that purpose in The City of New York, New York, in
such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private
debts; provided, however, that at the option of the Company
payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address shall appear in the
Security Register.

        REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER
PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET
FORTH AT THIS PLACE.

        Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by
manual signature, this Security shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any
purpose.

        IN WITNESS WHEREOF, the Company has caused this
Instrument to be duly executed under its corporate seal.

<PAGE>

Dated: May 22, 2000

        THE MAY DEPARTMENT STORES COMPANY
        a New York corporation

[Seal]
        By:________________________________
                Richard A. Brickson
                Secretary

Attest: ____________________________
                Linda J. Balicki
                Assistant Secretary

This is one of the Securities of the series designated therein
issued under the within-mentioned Indenture.

        BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION
        as Trustee
        By: _______________________________
                Authorized Officer

<PAGE>

                      REVERSE OF Debenture

                THE MAY DEPARTMENT STORES COMPANY

                    8-3/4% Debenture Due 2029

        This Security is one of a duly authorized series of
guaranteed debt securities of the Company (herein called the
"Debentures"), issued under an Indenture, dated as of June 17,
1996 (herein called the "Indenture"), among the Company, The May
Department Stores Company, a Delaware corporation (the
"Guarantor") and Bank One Trust Company, National Association
(formerly The First National Bank of Chicago), as Trustee (herein
called the "Trustee", which term includes any successor trustee
under the Indenture), which provides for the issuance by the
Company from time to time of debt securities of the Company
(herein called the "Debt Securities") in one or more series, to
which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the
Company, the Trustee and the Holders of the Debentures and of the
terms upon which the Debentures are, and are to be, authenticated
and delivered.  This Debenture is one of the series designated on
the face hereof, limited in aggregate principal amount to
$250,000,000.

        This Debenture will be redeemable, in whole or from time
to time in part, at the option of the Company on any date (a
"Redemption Date"), at a redemption price equal to the greater of
(1) 100 percent of the principal amount of the Debentures to be
redeemed and (2) the sum of the present values of the remaining
scheduled payments of principal and interest thereon (exclusive
of interest accrued to that Redemption Date) discounted to that
Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus 25
basis points, plus, in either case, accrued and unpaid interest
on the principal amount being redeemed to that Redemption Date;
provided that installments of interest on the Debentures which
are due and payable on an interest payment date falling on or
prior to the relevant Redemption Date shall be payable to the
holders of those Debentures, registered as such at the close of
business on the relevant record date according to their terms and
the provisions of the Indenture.

        "Treasury Rate" means, with respect to any Redemption
Date for the Debentures, (1) the yield, under the heading which
represents the average for the immediately preceding week,
appearing in the most recently published statistical release
designated "H.15(519)" or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve
System and which establishes yields on actively traded United

<PAGE>

States Treasury securities adjusted to constant maturity under
the caption "Treasury Constant Maturities," for the maturity
corresponding to the Comparable Treasury Issue (if no maturity is
within three months before or after the Maturity Date, yields for
the two published maturities most closely corresponding to the
Comparable Treasury Issue shall be determined and the Treasury
Rate shall be interpolated or extrapolated from those yields on a
straight line basis, rounding to the nearest month) or (2) if
that release (or any successor release) is not published during
the week preceding the calculation date or does not contain those
yields, the rate per annum equal to the semi-annual equivalent
yield to maturity the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable
Treasury Price for that Redemption Date.  The Treasury Rate shall
be calculated on the third Business Day preceding the Redemption
Date.

        "Comparable Treasury Issue" means the United States
Treasury security selected by the Independent Investment Banker
as having a maturity comparable to the remaining term of the
Debentures to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Debentures.

        "Independent Investment Banker" means Morgan Stanley &
Co. Incorporated or, if that firm is unwilling or unable to
select the Comparable Treasury Issue, an independent investment
banking institution of national standing appointed by the Trustee
after consultation with the Company.

        "Comparable Treasury Price" means with respect to any
Redemption Date for the Debentures (1) the average of five
Reference Treasury Dealer Quotations for that Redemption Date,
after excluding the highest and lowest such Reference Treasury
Dealer Quotations, or (2) if the Trustee obtains fewer than five
such Reference Treasury Dealer Quotations, the average of all
such quotations.

        "Reference Treasury Dealer" means each of Morgan Stanley
& Co. Incorporated, First Union Securities, Inc., and Salomon
Smith Barney Inc., and their respective successors, provided,
however, that if any of the foregoing shall cease to be a primary
U.S. Government securities dealer in New York City (a "Primary
Treasury Dealer"), the Company shall substitute therefor another
Primary Treasury Dealer.

        "Reference Treasury Dealer Quotations" means with
respect to each Reference Treasury Dealer and any Redemption
Date, the average, as determined by the Trustee, of the bid and

<PAGE>

asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing
to the Trustee by that Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third Business Day preceding that
Redemption Date.

        Notice of any redemption by the Company will be mailed
at least 30 days but not more than 60 days before any Redemption
Date to each holder of the Debentures to be redeemed.  If less
than all the Debentures are to be redeemed at the Company's
option, the Trustee shall select, in such manner as it shall deem
fair and appropriate, the Debentures to be redeemed in whole or
in part.

        If an Event of Default with respect to the Debentures
shall occur and be continuing, the principal amount of the
Debentures may be declared due and payable in the manner and with
the effect provided in the Indenture.

        The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the
Holders of the Debentures under the Indenture and the waiver of
compliance by the Company with certain provisions of the
Indenture at any time with the consent of the Holders of a
majority in aggregate principal amount of the Debt Securities at
the time Outstanding (or, in case less than all of the several
series of Debt Securities then Outstanding are affected, of the
Holders of a majority in principal amount of the Debt Securities
at the time Outstanding of each affected series).  The Indenture
also permits the Holders of a majority in principal amount of the
Debentures at the time Outstanding, on behalf of the Holders of
all the Debentures, to waive certain past defaults under the
Indenture and their consequences.  Any such consent or waiver by
the Holder of this Debenture shall be conclusive and binding upon
such Holder and upon all future Holders of this Debenture and of
any Debenture issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Debenture.

        The Indenture contains provisions for defeasance at any
time of (1) the entire indebtedness of the Debentures and (2)
certain restrictive covenants and certain Events of Default
applicable to the Debentures, upon compliance by the Company with
certain conditions set forth in the Indenture and in an Officers'
Certificate issued pursuant to the Indenture.

        As provided in and subject to the provisions of the
Indenture, any Holder of these Debentures shall not have the
right to institute any proceeding, judicial or otherwise, with
respect to the Indenture or for the appointment of a receiver or

<PAGE>

trustee or for any other remedy hereunder, unless such Holder
shall have previously given the Trustee written notice of a
continuing Event of Default with respect to the Debentures, the
Holders of not less than 25% in principal amount of the
Debentures at the time outstanding shall have made written
request to the Trustee to institute proceedings in respect of
such Event of Default as trustee and offered the Trustee
reasonable indemnity and the Trustee shall not have received from
the Holders of a majority in principal amount of the Debentures
at the time outstanding a direction inconsistent with such
request and shall have failed to institute any such proceedings,
for 60 days after receipt of such notice, request and offer of
indemnity.

        No reference herein to the Indenture and no provision of
this Debenture or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional,
to pay the principal of and interest on this Debenture at the
times, place and rate, and in the coin or currency, herein
prescribed.

        As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Debenture is
registrable in the Debenture Register, upon surrender of this
Debenture for registration of transfer at the office or agency of
the Company maintained for that purpose in The City of New York,
New York, or at any other office or agency designated for that
purpose by the Company pursuant to the Indenture, duly endorsed
by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Debenture Registrar duly
executed by, the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Debentures, of authorized
denominations and for the same aggregate principal amount, will
be issued to the designated transferee or transferees.

        The Debentures are issuable only in registered form
without coupons in denominations of $1,000 and any multiple
thereof.  As provided in the Indenture and subject to certain
limitations therein set forth, the Debentures are exchangeable
for a like aggregate principal amount of Debentures of a
different authorized denomination, as requested by the Holder
surrendering the same.

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

        Prior to due presentment of this Debenture for
registration of transfer, the Company, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name

<PAGE>

this Debenture is registered as the owner hereof for all
purposes, whether or not this Debenture be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

        All terms used in this Debenture which are defined in
the Indenture shall have the meanings assigned to them in the
Indenture.

GUARANTEE

        For good and valuable consideration, receipt of which is
acknowledged, and intending to be legally bound, the Guarantor
hereby unconditionally guarantees the due and punctual payment of
the principal of, sinking fund payment, if any, premium, if any,
and interest on, and any Redemption Price with respect to this
Debenture, when and as the same shall become due and payable,
whether at maturity, upon acceleration or redemption or
otherwise, in accordance with the terms of this Debenture and the
Indenture.
        THE MAY DEPARTMENT STORES COMPANY
        a Delaware corporation

[Seal]
        By: _______________________________
             Richard A. Brickson
             Secretary

Attest: ____________________________
             Linda J. Balicki
             Assistant Secretary

<PAGE>

                      (FORM OF ASSIGNMENT)
                          ABBREVIATIONS
        The following abbreviations, when used in the
inscription on the face of this Debenture, shall be construed as
though they were written out in full according to applicable laws
or regulations:

TEN COM - as tenants in common
TEN ENT - as tenants by the entireties

JT TEN  - as joint tenants with right of survivorship and not as
tenants in common

UNIF GIFT MIN ACT - ______(Cust) Custodian ______(Minor)
under Uniform Gifts to Minors Act ___________________ (State)

Additional abbreviations may also be used though not in the above
list.

                           ASSIGNMENT

FOR VALUE RECEIVED ___________________________ hereby sell(s),
assign(s) and transfer(s) unto

                           PLEASE INSERT SOCIAL SECURITY OR OTHER
                                   IDENTIFYING NUMBER OF ASSIGNEE

(Please Print or Typewrite Name and Address of Assignee)

the within Debenture and all rights thereunder, hereby
irrevocably constituting and appointing
_____________________________________________ Attorney to
transfer said Debenture on the books of the Company, with full
power of substitution in the premises.

Dated:  _________________________________

Notice: The signature to this assignment must correspond with the
name as written upon the face of this Debenture in every
particular, without alteration or enlargement or any change
whatever.

Signature Guaranteed:
_________________________________________________

Notice: Signature(s) must be guaranteed by an "eligible guarantor
institution" that is a member or participant in a "signature
guarantee program" (e.g., the Securities Transfer Agents
Medallion Program, the Stock Exchange Medallion Program or the
New York Stock Exchange, Inc. Medallion Signature Program).CONFORMED COPY

                          CASEY'S GENERAL STORES, INC.

                                   $80,000,000

                          7.89% Senior Notes, Series A

                                due May 15, 2010

                             NOTE PURCHASE AGREEMENT

                             Dated as of May 1, 2000

<PAGE>

                                TABLE OF CONTENTS

Section                                                                  Page

1.      AUTHORIZATION OF NOTES                                          1

2.      SALE AND PURCHASE OF NOTES                                      1

3.      CLOSING                                                         2

4.      CONDITIONS TO CLOSING                                           2
        4.1     Representations and Warrants                            2
        4.2     Performance; No Default                                 2
        4.3     Compliance Certificates                                 2
        4.4     Opinions of Counsel                                     3
        4.5     Purchase Permited By Applicable Law, etc.               3
        4.6     Sale of Other Notes                                     3
        4.7     Payment of Special Counsel Fees                         3
        4.8     Private Placement Number                                3
        4.9     Changes in Corporate Structure                          4
        4.10    Proceedings and Documents                               4

5.      REPRESENTATIONS AND WARRANTIES OF THE COMPANY                   4
        5.1     Organization; Power and Authority                       4
        5.2     Authorization, etc.                                     4
        5.3     Disclosure                                              5
        5.4     Organization and Ownership of Shares of
                Subsidiaries; Affiliates                                5
        5.5     Financial Statements                                    6
        5.6     Compliance with Laws, Other Instruments, etc.           6
        5.7     Governmental Authorizations, etc.                       6
        5.8     Litigation; Observance of Agreements, Statutes and
                Orders                                                  6
        5.9     Taxes                                                   7
        5.10    Title to Property; Leases                               7
        5.11    Licenses, Permits, etc.                                 7
        5.12    Compliance with ERISA                                   8
        5.13    Private Offering by the Company                         9
        5.14    Use of Proceeds; Margin Regulations                     9
        5.15    Existing Indebtedness; Future Liens                     9
        5.16    Foreign Assets Control Regulations, etc.                10
        5.17    Status under Certain Statutes                           10
        5.18    Environmental Matters                                   10

6.      REPRESENTATIONS OF THE PURCHASER                                11
        6.1     Purchase for Investment                                 11
        6.2     Source of Funds                                         11

7.      INFORMATION AS TO COMPANY                                       12
        7.1     Financial and Business Information                      12
        7.2     Officer's Certificate                                   15
        7.3     Inspection                                              16

8.      PREPAYMENT OF THE NOTES                                         16
        8.1     Required Prepayments                                    16
        8.2     Optional Prepayments with Make-Whole Amount             16
        8.3     Change of Control                                       17
        8.4     Allocation of Partial Prepayments                       19
        8.5     Maturity; Surrender, etc.                               19
        8.6     Purchase of Notes                                       19
        8.7     Make-Whole Amount                                       19

9.      AFFIRMATIVE COVENANTS
        9.1     Compliance with Law                                     21
        9.2     Insurance                                               21
        9.3     Maintenance of Properties                               21
        9.4     Payment of Taxes and Claims                             21
        9.5     Corporate Existence, etc.                               22

10.     NEGATIVE COVENANTS
        10.1    Adjusted Consolidated Net Worth                         22
        10.2    Funded Debt                                             22
        10.3    Fixed Charge Coverage Ratio                             23
        10.4    Limitations on Liens                                    23
        10.5    Merger, Consolidation, etc.                             24
        10.6    Sale of Assets                                          25
        10.7    Nature of Business                                      26
        10.8    Transactions with Affiliates                            26

11.     EVENTS OF DEFAULT                                               26

12.     REMEDIES ON DEFAULT, ETC.                                       28
        12.1    Acceleration                                            28
        12.2    Other Remedies                                          29
        12.3    Rescission                                              29
        12.4    No Waivers or Election of Remedies, Expenses, etc.      29

<PAGE>

13.     REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES                   30
        13.1.   Registration of Notes                                   30
        13.2    Transfer and Exchange of Notes                          30
        13.3    Replacement of Notes                                    30

14.     PAYMENTS OF NOTES                                               31
        14.1    Place of Payment                                        31
        14.2    Home Office Payment                                     31

15.     EXPENSES, ETC.                                                  32
        15.1    Transaction Expenses                                    32
        15.2    Survival                                                32

16.     SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT    32

17.     AMENDMENT AND WAIVER                                            33
        17.1    Requirements                                            33
        17.2    Solicitation of Holders of Notes                        33
        17.3    Binding Effect, etc.                                    33
        17.4    Notes held by Company, etc.                             34

18.     NOTICES                                                         34

19.     REPRODUCTION OF DOCUMENTS                                       34

20.     CONFIDENTIAL INFORMATION                                        35

21.     SUBSTITUTION OF PURCHASER                                       36

22.     ADDITIONAL SERIES OF NOTES                                      36
        22.1    Issuance of Additional Series of Notes                  36
        22.2    Conditions to Additional Series of Notes                36

23.     MISCELLANEOUS                                                   37
        23.1    Successors and Assigns                                  37
        23.2    Payments Due on Non-Business Days                       37
        23.3    Severability                                            37
        23.4    Construction                                            37
        23.5    Counterparts                                            38
        23.6    Governing Law                                           38

SCHEDULE A      Information Relating to Purchasers

SCHEDULE B      Defined Terms

SCHEDULE 4.9    Changes in Corporate Structure

SCHEDULE 5.3    Disclosure Materials

SCHEDULE 5.4    Organization and Ownership of Shares of Subsidiaries;
                Affiliates

SCHEDULE 5.5    Financial Statement

SCHEDULE 5.8    Litigation

SCHEDULE 5.11   Licenses, Permits, etc.

SCHEDULE 5.14   Use of Proceeds

SCHEDULE 5.15   Existing Indebtedness; Future Liens

SCHEDULE 5.18   Certain Products of the Company and its Subsidiaries

SCHEDULE 10.4   Liens

EXHIBIT 1       Form of Series A Senior Note

EXHIBIT 4.4(a)  Form of Opinion of Counsel for the Company

EXHIBIT 4.4(b)  Form of Opinion of Special Counsel for the Purchasers

EXHIBIT 22.2    Form of Terms Agreement

<PAGE>

                          CASEY'S GENERAL STORES, INC.
                            One Convenience Boulevard

                               Ankeny, Iowa 50021

                                 (515) 965-6100

                               Fax: (515) 965-6160

                                   $80,000,000
                 7.89% Senior Notes, Series A, due May 15, 2010

                                                    Dated as of May 1, 2000

TO EACH OF THE PURCHASERS LISTED IN
         THE ATTACHED SCHEDULE A:

Ladies and Gentlemen:

     CASEY'S GENERAL STORES,  INC., an Iowa corporation (the "Company"),  agrees
with you as follows:

1.       AUTHORIZATION OF NOTES.

     The  Company has  authorized  the issue and sale of  $80,000,000  aggregate
principal  amount of its 7.89%  Senior  Notes,  Series A, due May 15,  2010 (the
"Notes",  such term to include any such notes  issued in  substitution  therefor
pursuant to Section 13 of this  Agreement).  The Notes will be  substantially in
the form set out in Exhibit 1, with such  changes  therefrom,  if any, as may be
approved  by you  and  the  Company.  Certain  capitalized  terms  used  in this
Agreement are defined in Schedule B;  references to a "Schedule" or an "Exhibit"
are, unless  otherwise  specified,  to a Schedule or an Exhibit attached to this
Agreement.

2.       SALE AND PURCHASE OF NOTES.

     Subject to the terms and  conditions  of this  Agreement,  the Company will
issue and sell to you and each of the other  purchasers named in Schedule A (the
"Other  Purchasers"),  and you and the Other  Purchasers  will purchase from the
Company, at the Closing provided for in Section 3, Notes in the principal amount
specified opposite your names in Schedule A at the purchase price of 100% of the
principal amount thereof.  Your obligation  hereunder and the obligations of the
Other Purchasers are several and not joint

<PAGE>

obligations and you shall have no liability to any Person for the performance or
non-performance by any Other Purchaser hereunder.

3.       CLOSING.

     The sale and  purchase  of the Notes to be  purchased  by you and the Other
Purchasers  shall  occur at the  offices of  Gardner,  Carton & Douglas,  Quaker
Tower, Suite 3400, 321 North Clark Street, Chicago, Illinois 60610 at 9:00 a.m.,
Chicago  time,  at a closing  (the  "Closing")  on May 15, 2000 or on such other
Business Day thereafter on or prior to May 20, 2000 as may be agreed upon by the
Company  and you and the Other  Purchasers.  At the  Closing  the  Company  will
deliver to you the Notes to be purchased by you in the form of a single Note (or
such greater  number of Notes in  denominations  of at least $500,000 as you may
request)  dated the date of the Closing and  registered  in your name (or in the
name of your  nominee),  against  delivery by you to the Company or its order of
immediately available funds in the amount of the purchase price therefor by wire
transfer  of  immediately  available  funds for the  account  of the  Company to
account number  9870527502 at UMB Bank,  n.a.,  Kansas City,  Missouri,  ABA No.
101000695.  If at the Closing the Company shall fail to tender such Notes to you
as  provided  above in this  Section 3, or any of the  conditions  specified  in
Section 4 shall not have been fulfilled to your satisfaction, you shall, at your
election,  be relieved of all further obligations under this Agreement,  without
thereby  waiving  any  rights  you may have by  reason of such  failure  or such
nonfulfillment.

4.       CONDITIONS TO CLOSING.

     Your  obligation to purchase and pay for the Notes to be sold to you at the
Closing is subject to the fulfillment to your  satisfaction,  prior to or at the
Closing, of the following conditions:

         4.1.     Representations and Warranties.

     The  representations  and warranties of the Company in this Agreement shall
be correct when made and at the time of the Closing.

         4.2.     Performance; No Default.

     The Company  shall have  performed  and complied  with all  agreements  and
conditions contained in this Agreement required to be performed or complied with
by it prior to or at the Closing and after  giving  effect to the issue and sale
of the Notes (and the  application of the proceeds  thereof as  contemplated  by
Section  5.14) no  Default  or Event  of  Default  shall  have  occurred  and be
continuing.  Neither the Company nor any Subsidiary  shall have entered into any
transaction  since the date of the Memorandum that would have been prohibited by
this Agreement had it applied since such date.

         4.3.     Compliance Certificates.

<PAGE>

     (a)  Officer's  Certificate.  The Company  shall have  delivered  to you an
Officer's  Certificate,  dated  the  date of the  Closing,  certifying  that the
conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.

     (b)  Secretary's  Certificate.  The Company  shall have  delivered to you a
certificate  certifying  as  to  the  resolutions  attached  thereto  and  other
corporate  proceedings relating to the authorization,  execution and delivery of
the Notes and the Agreement.

         4.4.     Opinions of Counsel.

     You shall have received opinions in form and substance satisfactory to you,
dated the date of the Closing (a) from Ahlers, Cooney, Dorweiler,  Haynie, Smith
& Allbee,  P.C.,  counsel  for the  Company,  covering  the matters set forth in
Exhibit  4.4(a) and covering  such other  matters  incident to the  transactions
contemplated  hereby as you or your  counsel  may  reasonably  request  (and the
Company  instructs  its  counsel  to deliver  such  opinion to you) and (b) from
Gardner,  Carton &  Douglas,  your  special  counsel  in  connection  with  such
transactions, substantially in the form set forth in Exhibit 4.4(b) and covering
such other matters incident to such transactions as you may reasonably request.

         4.5.     Purchase Permitted By Applicable Law, etc.

     On the date of the Closing your purchase of Notes shall (i) be permitted by
the laws and regulations of each jurisdiction to which you are subject,  without
recourse to provisions  (such as Section  1405(a)(8)  of the New York  Insurance
Law) permitting limited  investments by insurance  companies without restriction
as to  the  character  of  the  particular  investment,  (ii)  not  violate  any
applicable law or regulation (including, without limitation,  Regulation T, U or
X of the Board of Governors of the Federal Reserve System) and (iii) not subject
you to any tax,  penalty or liability under or pursuant to any applicable law or
regulation,  which law or  regulation  was not in effect on the date hereof.  If
requested by you, you shall have received an Officer's Certificate certifying as
to such matters of fact as you may reasonably specify to enable you to determine
whether such purchase is so permitted.

         4.6.     Sale of Other Notes.

     Contemporaneously  with the  Closing  the  Company  shall sell to the Other
Purchasers and the Other  Purchasers shall purchase the Notes to be purchased by
them at the Closing as specified in Schedule A.

         4.7.     Payment of Special Counsel Fees.

     Without  limiting the  provisions of Section  15.1,  the Company shall have
paid on or before the Closing the reasonable fees,  charges and disbursements of
your special

<PAGE>

counsel  referred to in Section 4.4 to the extent  reflected  in a statement  of
such  counsel  rendered  to the Company at least one  Business  Day prior to the
Closing.

         4.8.     Private Placement Number.

     A Private Placement Number issued by Standard & Poor's CUSIP Service Bureau
(in cooperation with the Securities Valuation Office of the National Association
of Insurance  Commissioners)  shall have been obtained for the Notes by Gardner,
Carton & Douglas.

         4.9.     Changes in Corporate Structure.

     Except as specified in Schedule 4.9, the Company shall not have changed its
jurisdiction of incorporation or been a party to any merger or consolidation and
shall not have succeeded to all or any  substantial  part of the  liabilities of
any other entity,  at any time  following the date of the most recent  financial
statements referred to in Schedule 5.5.

         4.10.    Proceedings and Documents.

     All corporate and other  proceedings  in connection  with the  transactions
contemplated  by this  Agreement and all documents and  instruments  incident to
such transactions shall be satisfactory to you and your special counsel, and you
and your special counsel shall have received all such  counterpart  originals or
certified  or other  copies  of such  documents  as you or they  may  reasonably
request.

5.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Company represents and warrants to you that:

         5.1.     Organization; Power and Authority.

     The Company is a corporation  duly organized,  validly existing and in good
standing  under  the  laws of its  jurisdiction  of  incorporation,  and is duly
qualified as a foreign  corporation and is in good standing in each jurisdiction
in which such  qualification is required by law, other than those  jurisdictions
as to which the  failure  to be so  qualified  or in good  standing  could  not,
individually  or in the  aggregate,  reasonably  be  expected to have a Material
Adverse Effect. The Company has the corporate power and authority to own or hold
under lease the  properties it purports to own or hold under lease,  to transact
the business it transacts and proposes to transact,  to execute and deliver this
Agreement and the Notes and to perform the provisions hereof and thereof.

         5.2.     Authorization, etc.

<PAGE>

     This  Agreement  and the Notes have been duly  authorized  by all necessary
corporate action on the part of the Company, and this Agreement constitutes, and
upon execution and delivery  thereof each Note will constitute,  a legal,  valid
and  binding  obligation  of the  Company  enforceable  against  the  Company in
accordance with its terms,  except as such  enforceability may be limited by (i)
applicable bankruptcy, insolvency,  reorganization,  moratorium or other similar
laws affecting the enforcement of creditors'  rights  generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

         5.3.     Disclosure.

     The Company, through its agent, SPP Capital Partners, LLC, has delivered to
you and each Other  Purchaser a copy of a Private  Placement  Memorandum,  dated
April 2000 (the "Memorandum"), relating to the transactions contemplated hereby.
The Memorandum fairly describes, in all material respects, the general nature of
the  business  and  principal  properties  of the Company and its  Subsidiaries.
Except as  disclosed  in Schedule  5.3,  this  Agreement,  the  Memorandum,  the
documents,  certificates  or other writings  delivered to you by or on behalf of
the Company in  connection  with the  transactions  contemplated  hereby and the
financial  statements  listed in Schedule 5.5, taken as a whole,  do not contain
any untrue  statement  of a  material  fact or omit to state any  material  fact
necessary  to make  the  statements  therein  not  misleading  in  light  of the
circumstances  under which they were made. Except as disclosed in the Memorandum
or as  expressly  described  in  Schedule  5.3,  or in  one  of  the  documents,
certificates  or  other  writings   identified  therein,  or  in  the  financial
statements  listed in  Schedule  5.5,  since April 30,  1999,  there has been no
change in the financial condition, operations, business, properties or prospects
of the Company or any  Subsidiary  except  changes that  individually  or in the
aggregate  could not reasonably be expected to have a Material  Adverse  Effect.
There is no fact known to the Company that could  reasonably be expected to have
a  Material  Adverse  Effect  that  has not  been  set  forth  herein  or in the
Memorandum or in the other documents,  certificates and other writings delivered
to you by or on behalf of the Company  specifically  for use in connection  with
this  Agreement  and the  issue  and  sale  of the  Notes  to you and the  Other
Purchasers.

     5.4.     Organization and Ownership of Shares of Subsidiaries; Affiliates.

     (a) Schedule  5.4 is (except as noted  therein) a complete and correct list
of (i) the Company's Subsidiaries,  showing, as to each Subsidiary,  the correct
name thereof, the jurisdiction of its organization, and the percentage of shares
of each class of its capital stock or similar equity interests outstanding owned
by the Company and each other Subsidiary,  (ii) the Company's Affiliates,  other
than Subsidiaries, and (iii) the Company's directors and senior officers.

     (b) All of the  outstanding  shares  of  capital  stock or  similar  equity
interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company
and its Subsidiaries have been validly issued,  are fully paid and nonassessable
and

<PAGE>

are  owned by the  Company  or  another  Subsidiary  free and  clear of any Lien
(except as otherwise disclosed in Schedule 5.4).

     (c) Each  Subsidiary  identified in Schedule 5.4 is a corporation  or other
legal entity duly  organized,  validly  existing and in good standing  under the
laws of its  jurisdiction  of  organization,  and is duly qualified as a foreign
corporation  or other legal entity and is in good standing in each  jurisdiction
in which such  qualification is required by law, other than those  jurisdictions
as to which the  failure  to be so  qualified  or in good  standing  could  not,
individually  or in the  aggregate,  reasonably  be  expected to have a Material
Adverse  Effect.  Each such  Subsidiary  has the  corporate  or other  power and
authority to own or hold under lease the  properties  it purports to own or hold
under lease and to transact the business it transacts and proposes to transact.

     (d) No  Subsidiary  is a  party  to,  or  otherwise  subject  to any  legal
restriction or any agreement (other than this Agreement,  the agreements  listed
on Schedule 5.4 and  customary  limitations  imposed by corporate  law statutes)
restricting  the ability of such  Subsidiary  to pay dividends out of profits or
make any other  similar  distributions  of profits to the  Company or any of its
Subsidiaries  that owns  outstanding  shares of capital stock or similar  equity
interests of such Subsidiary.

         5.5.     Financial Statements.

     The  Company  has  delivered  to each  Purchaser  copies  of the  financial
statements  of the Company and its  Subsidiaries  listed on Schedule 5.5. All of
said  financial  statements  (including  in each case the related  schedules and
notes)  fairly  present in all  material  respects  the  consolidated  financial
position  of  the  Company  and  its  Subsidiaries  as of the  respective  dates
specified in such Schedule and the consolidated  results of their operations and
cash flows for the  respective  periods so specified  and have been  prepared in
accordance with GAAP consistently applied throughout the periods involved except
as set forth in the notes thereto (subject, in the case of any interim financial
statements, to normal year-end adjustments).

         5.6.     Compliance with Laws, Other Instruments, etc.

     The  execution,  delivery and  performance by the Company of this Agreement
and the Notes will not (i) contravene,  result in any breach of, or constitute a
default under,  or result in the creation of any Lien in respect of any property
of the Company or any Subsidiary under, any indenture,  mortgage, deed of trust,
loan, purchase or credit agreement,  lease, corporate charter or by-laws, or any
other agreement or instrument to which the Company or any Subsidiary is bound or
by which the Company or any Subsidiary or any of their respective properties may
be bound or  affected,  (ii)  conflict  with or result in a breach of any of the
terms, conditions or provisions of any order, judgment, decree or ruling of any

<PAGE>

court,  arbitrator or  Governmental  Authority  applicable to the Company or any
Subsidiary  or (iii)  violate  any  provision  of any  statute  or other rule or
regulation  of any  Governmental  Authority  applicable  to the  Company  or any
Subsidiary.

         5.7.     Governmental Authorizations, etc.

     No  consent,  approval  or  authorization  of, or  registration,  filing or
declaration with, any Governmental  Authority is required in connection with the
execution,  delivery  or  performance  by the Company of this  Agreement  or the
Notes.

         5.8.     Litigation; Observance of Agreements, Statutes and Orders.

     (a) Except as disclosed  in Schedule  5.8,  there are no actions,  suits or
proceedings  pending or, to the knowledge of the Company,  threatened against or
affecting  the Company or any  Subsidiary  or any property of the Company or any
Subsidiary in any court or before any arbitrator of any kind or before or by any
Governmental Authority that, individually or in the aggregate,  could reasonably
be expected to have a Material Adverse Effect.

     (b) Neither the Company nor any  Subsidiary is in default under any term of
any agreement or  instrument to which it is a party or by which it is bound,  or
any order, judgment,  decree or ruling of any court,  arbitrator or Governmental
Authority or in violation of any applicable law,  ordinance,  rule or regulation
(including without limitation Environmental Laws) of any Governmental Authority,
which default or violation,  individually or in the aggregate,  could reasonably
be expected to have a Material Adverse Effect.

         5.9.     Taxes.

     The  Company  and its  Subsidiaries  have  filed all tax  returns  that are
required to have been filed in any  jurisdiction,  and have paid all taxes shown
to be due and payable on such returns and all other taxes and assessments levied
upon them or their properties,  assets, income or franchises, to the extent such
taxes and  assessments  have  become due and payable and before they have become
delinquent,  except for any taxes and assessments (i) the amount of which is not
individually or in the aggregate  Material or (ii) the amount,  applicability or
validity of which is  currently  being  contested  in good faith by  appropriate
proceedings  and with respect to which the Company or a Subsidiary,  as the case
may be, has established  adequate  reserves in accordance with GAAP. The Company
knows of no basis for any other  tax or  assessment  that  could  reasonably  be
expected to have a Material Adverse Effect.  The charges,  accruals and reserves
on the books of the Company and its Subsidiaries in respect of Federal, state or
other  taxes for all  fiscal  periods  are  adequate.  The  Federal  income  tax
liabilities  of the Company and its  Subsidiaries  have been  determined  by the
Internal  Revenue  Service and paid for all fiscal years up to and including the
fiscal year ended April 30, 1995.

<PAGE>

         5.10.    Title to Property; Leases.

     The Company and its  Subsidiaries  have good and sufficient  title to their
respective  properties  that  individually  or in the  aggregate  are  Material,
including all such properties reflected in the most recent audited balance sheet
referred to in Section 5.5 or purported to have been  acquired by the Company or
any Subsidiary  after said date (except as sold or otherwise  disposed of in the
ordinary course of business), in each case free and clear of Liens prohibited by
this  Agreement.  All leases that  individually or in the aggregate are Material
are valid  and  subsisting  and are in full  force  and  effect in all  material
respects.

         5.11.    Licenses, Permits, etc.

                  Except as disclosed in Schedule 5.11,

     (a) The  Company  and  its  Subsidiaries  own or  possesses  all  licenses,
permits,  franchises,   authorizations,   patents,  copyrights,  service  marks,
trademarks  and trade names,  or rights  thereto,  that  individually  or in the
aggregate are Material, without known conflict with the rights of others;

     (b) To the best knowledge of the Company,  no product of the Company or any
of its  Subsidiaries  infringes  in any material  respect any  license,  permit,
franchise, authorization, patent, copyright, service mark, trademark, trade name
or other right owned by any other Person; and

     (c) To the best knowledge of the Company, there is no Material violation by
any Person of any right of the Company or any of its  Subsidiaries  with respect
to any patent,  copyright,  service mark,  trademark,  trade name or other right
owned or used by the Company or any of its Subsidiaries.

         5.12.    Compliance with ERISA.

     (a) The Company and each ERISA  Affiliate  have  operated and  administered
each Plan in compliance  with all  applicable  laws except for such instances of
noncompliance  as have not resulted in and could not  reasonably  be expected to
result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate
has incurred any liability  pursuant to Title I or IV of ERISA or the penalty or
excise tax provisions of the Code relating to employee benefit plans (as defined
in Section 3 of ERISA),  and no event,  transaction or condition has occurred or
exists that could reasonably be expected to result in the incurrence of any such
liability by the Company or any ERISA  Affiliate,  or in the  imposition  of any
Lien on any of the  rights,  properties  or assets of the  Company  or any ERISA
Affiliate,  in either case pursuant to Title I or IV of ERISA or to such penalty
or excise tax provisions or to Section 401(a)(29) or

<PAGE>

412  of the  Code,  other  than  such  liabilities  or  Liens  as  would  not be
individually or in the aggregate Material.

     (b) The present value of the aggregate  benefit  liabilities  under each of
the Plans (other than  Multiemployer  Plans),  determined  as of the end of such
Plan's most recently  ended plan year on the basis of the actuarial  assumptions
specified for funding  purposes in such Plan's most recent  actuarial  valuation
report,  did not exceed the  aggregate  current value of the assets of such Plan
allocable to such benefit  liabilities.  The term "benefit  liabilities" has the
meaning  specified  in section 4001 of ERISA and the terms  "current  value" and
"present value" have the meaning specified in section 3 of ERISA.

     (c) The  Company  and its ERISA  Affiliates  have not  incurred  withdrawal
liabilities  (and are not subject to contingent  withdrawal  liabilities)  under
section  4201  or  4204  of  ERISA  in  respect  of  Multiemployer   Plans  that
individually or in the aggregate are Material.

     (d) The expected  postretirement  benefit obligation  (determined as of the
last day of the  Company's  most recently  ended fiscal year in accordance  with
Financial  Accounting  Standards  Board  Statement  No. 106,  without  regard to
liabilities  attributable to continuation  coverage mandated by section 4980B of
the Code) of the Company and its Subsidiaries is not Material.

     (e) The execution and delivery of this  Agreement and the issuance and sale
of the Notes hereunder will not involve any  transaction  that is subject to the
prohibitions  of section 406 of ERISA or in connection with which a tax could be
imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by
the Company in the first  sentence of this  Section  5.12(e) is made in reliance
upon and subject to the accuracy of your representation in Section 6.2 as to the
sources of the funds used to pay the purchase price of the Notes to be purchased
by you.

         5.13.    Private Offering by the Company.

     Neither the  Company nor anyone  acting on its behalf has offered the Notes
or any similar  securities for sale to, or solicited any offer to buy any of the
same from, or otherwise  approached or negotiated in respect  thereof with,  any
person  other  than  you,  the  Other  Purchasers  and not  more  than 68  other
Institutional  Investors,  each of which has been offered the Notes at a private
sale for  investment.  Neither the  Company nor anyone  acting on its behalf has
taken,  or will take,  any action that would subject the issuance or sale of the
Notes to the registration requirements of Section 5 of the Securities Act.

         5.14.    Use of Proceeds; Margin Regulations.

<PAGE>

     The Company  will apply the  proceeds of the sale of the Notes as set forth
in Schedule  5.14. No part of the proceeds from the sale of the Notes  hereunder
will be used, directly or indirectly,  for the purpose of buying or carrying any
margin stock within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or
trading in any securities under such  circumstances as to involve the Company in
a violation of  Regulation X of said Board (12 CFR 224) or to involve any broker
or dealer in a  violation  of  Regulation  T of said Board (12 CFR 220).  Margin
stock does not constitute more than 1.0% of the value of the consolidated assets
of the Company and the Company does not have any present  intention  that margin
stock will  constitute  more than 1.0% of the value of such  assets.  As used in
this Section, the terms "margin stock" and "purpose of buying or carrying" shall
have the meanings assigned to them in said Regulation U.

         5.15.    Existing Indebtedness; Future Liens.

     (a) Except as described  therein,  Schedule  5.15 sets forth a complete and
correct list of all outstanding Indebtedness of the Company and its Subsidiaries
as of April 30, 2000,  since which date there has been no Material change in the
amounts,  interest rates,  sinking funds,  installment payments or maturities of
the Indebtedness of the Company or its Subsidiaries. Neither the Company nor any
Subsidiary  is in default,  and no waiver of default is currently in effect,  in
the payment of any principal or interest on any  Indebtedness  of the Company or
any Subsidiary and no event or condition exists with respect to any Indebtedness
of the Company or any  Subsidiary  that would permit (or that with notice or the
lapse  of  time,  or both,  would  permit)  one or more  Persons  to cause  such
Indebtedness  to become due and payable before its stated maturity or before its
regularly scheduled dates of payment.

     (b) Except as  disclosed  in  Schedule  5.15,  neither  the Company nor any
Subsidiary  has agreed or  consented  to cause or permit in the future (upon the
happening of a contingency or otherwise) any of its property,  whether now owned
or hereafter acquired, to be subject to a Lien not permitted by Section 10.4.

         5.16.    Foreign Assets Control Regulations, etc.

     Neither the sale of the Notes by the Company  hereunder  nor its use of the
proceeds thereof will violate the Trading with the Enemy Act, as amended, or any
of the  foreign  assets  control  regulations  of  the  United  States  Treasury
Department  (31  CFR,  Subtitle  B,  Chapter  V,  as  amended)  or any  enabling
legislation or executive order relating thereto.

         5.17.    Status under Certain Statutes.

<PAGE>

     Neither the Company nor any  Subsidiary is subject to regulation  under the
Investment  Company Act of 1940, as amended,  the Public Utility Holding Company
Act of 1935, as amended,  the ICC  Termination  Act of 1995, as amended,  or the
Federal Power Act, as amended.

         5.18.    Environmental Matters.

     Neither the Company nor any  Subsidiary  has  knowledge of any claim or has
received any notice of any claim, and no proceeding has been instituted  raising
any  claim  against  the  Company  or any of its  Subsidiaries  or any of  their
respective real  properties now or formerly owned,  leased or operated by any of
them or other assets, alleging any damage to the environment or violation of any
Environmental  Laws,  except,  in each  case,  such as could not  reasonably  be
expected to result in a Material  Adverse Effect.  Schedule 5.18 contains a list
of the products  offered for sale by the Company and its  Subsidiaries  that may
constitute Hazardous Materials.  Except as otherwise disclosed in the Memorandum
or in the attachments thereto,

     (a) neither the Company nor any  Subsidiary has knowledge of any facts that
would give rise to any claim,  public or private,  of violation of Environmental
Laws or damage to the  environment  emanating  from,  occurring on or in any way
related to real properties now or formerly  owned,  leased or operated by any of
them or to other assets or their use,  except,  in each case,  such as could not
reasonably be expected to result in a Material Adverse Effect;

     (b)  neither  the  Company  nor  any of its  Subsidiaries  has  stored  any
Hazardous Materials on real properties now or formerly owned, leased or operated
by any of them  and has not  disposed  of any  Hazardous  Materials  in a manner
contrary  to any  Environmental  Laws in  each  case in any  manner  that  could
reasonably be expected to result in a Material Adverse Effect; and

     (c) all buildings on all real  properties now owned,  leased or operated by
the  Company  or any of its  Subsidiaries  are  in  compliance  with  applicable
Environmental  Laws,  except  where  failure to comply could not  reasonably  be
expected to result in a Material Adverse Effect.

6.       REPRESENTATIONS OF THE PURCHASER.

         6.1.     Purchase for Investment.

     You represent that you are purchasing the Notes for your own account or for
one or more  separate  accounts  maintained  by you or for the account of one or
more  pension or trust  funds and not with a view to the  distribution  thereof,
provided that the  disposition  of your or their  property shall at all times be
within  your or their  control.  You  understand  that the  Notes  have not been
registered under the Securities Act and may be resold only if

<PAGE>

registered  pursuant to the  provisions of the Securities Act or if an exemption
from registration is available,  except under  circumstances  where neither such
registration  nor such an  exemption is required by law, and that the Company is
not required to register the Notes.

         6.2.     Source of Funds.

     You represent that at least one of the following  statements is an accurate
representation  as to each source of funds (a "Source") to be used by you to pay
the purchase price of the Notes to be purchased by you hereunder:

     (a) the Source is an "insurance  company  general  account" as such term is
defined in the  Department of Labor  Prohibited  Transaction  Exemption  ("PTE")
95-60 (issued July 12, 1995) ("PTE 95-60") and as of the date of this  Agreement
there is no "employee  benefit plan" with respect to which the aggregate  amount
of such general account's  reserves and liabilities for the contracts held by or
on behalf of such  employee  benefit plan and all other  employee  benefit plans
maintained by the same employer  (and  affiliates  thereof as defined in Section
V(a)(1)  of PTE  95-60)  or by the same  employee  organization  (in  each  case
determined in accordance  with the  provisions of PTE 95-60)  exceeds 10% of the
total reserves and liabilities of such general account (as determined  under PTE
95-60) (exclusive of separate account  liabilities) plus surplus as set forth in
the National Association of Insurance  Commissioners Annual Statement filed with
your state of domicile; or

     (b) the Source is either (i) an insurance  company pooled separate account,
within  the  meaning  of PTE 90-1  (issued  January  29,  1990),  or (ii) a bank
collective  investment  fund,  within the meaning of PTE 91-38  (issued July 12,
1991) and,  except as you have  disclosed to the Company in writing  pursuant to
this paragraph (b), no employee benefit plan or group of plans maintained by the
same employer or employee  organization  beneficially  owns more than 10% of all
assets allocated to such pooled separate account or collective  investment fund;
or

     (c) the Source  constitutes  assets of an  "investment  fund"  (within  the
meaning of Part V of the QPAM  Exemption)  managed by a "qualified  professional
asset manager" or "QPAM"  (within the meaning of Part V of the QPAM  Exemption),
no employee  benefit  plan's assets that are included in such  investment  fund,
when combined with the assets of all other employee benefit plans established or
maintained  by the same  employer  or by an  affiliate  (within  the  meaning of
Section  V(c)(1) of the QPAM Exemption) of such employer or by the same employee
organization  and managed by such QPAM,  exceed 20% of the total  client  assets
managed by such QPAM,  the conditions of Part I(c) and (g) of the QPAM Exemption
are  satisfied,  neither the QPAM nor a person  controlling or controlled by the
QPAM (applying the definition of

<PAGE>

"control" in Section V(e) of the QPAM  Exemption)  owns a 5% or more interest in
the Company and (i) the identity of such QPAM and (ii) the names of all employee
benefit  plans  whose  assets are  included  in such  investment  fund have been
disclosed to the Company in writing pursuant to this paragraph (c); or

     (d)      the Source is a governmental plan; or

     (e) the Source is one or more employee benefit plans, or a separate account
or trust fund comprised of one or more employee benefit plans, each of which has
been identified to the Company in writing pursuant to this paragraph (e); or

     (f) the Source is the assets of one or more employee benefit plans that are
managed by an "in-house asset manager," as that term is defined in PTE 96-23 and
such purchase and holding of the Notes is exempt under PTE 96-23; or

     (g) the Source does not include assets of any employee  benefit plan, other
than a plan exempt from the coverage of ERISA.

As used in this Section 6.2, the terms  "employee  benefit plan",  "governmental
plan" and "separate account" shall have the respective meanings assigned to such
terms in Section 3 of ERISA.

7.       INFORMATION AS TO COMPANY.

         7.1.     Financial and Business Information

      The Company will deliver to each holder of Notes that is an  Institutional
Investor:

     (a) Quarterly  Statements -- within 60 days after the end of each quarterly
fiscal period in each fiscal year of the Company  (other than the last quarterly
fiscal period of each such fiscal year), duplicate copies of,

     (i) a consolidated  balance sheet of the Company and its Subsidiaries as at
the end of such quarter, and

     (ii) consolidated statements of income, changes in shareholders' equity and
cash flows of the Company  and its  Subsidiaries,  for such  quarter and (in the
case of the second and third quarters) for the portion of the fiscal year ending
with such quarter,  setting forth in each case in  comparative  form the figures
for the  corresponding  periods in the previous  fiscal year,  all in reasonable
detail,  prepared in  accordance  with GAAP  applicable  to quarterly  financial
statements generally, and certified by a

<PAGE>

Senior Financial Officer as fairly  presenting,  in all material  respects,  the
financial  position of the  companies  being  reported  on and their  results of
operations  and  cash  flows,   subject  to  changes   resulting  from  year-end
adjustments,  provided,  if  applicable,  that  delivery  within the time period
specified  above of  copies  of the  Company's  Quarterly  Report  on Form  10-Q
prepared  in  compliance  with the  requirements  therefor  and  filed  with the
Securities and Exchange  Commission  shall be deemed to satisfy the requirements
of this Section 7.1(a);

     (b) Annual  Statements -- within 120 days after the end of each fiscal year
of the Company, duplicate copies of,

     (i) a consolidated balance sheet of the Company and its Subsidiaries, as at
the end of such year, and

     (ii) consolidated statements of income, changes in shareholders' equity and
cash flows of the Company and its Subsidiaries,  for such year,  figures for the
previous  fiscal year,  all in reasonable  detail,  prepared in accordance  with
GAAP, and  accompanied  (A) by an opinion thereon of KPMG LLP or another firm of
independent certified public accountants of recognized national standing,  which
opinion  shall  state that such  financial  statements  present  fairly,  in all
material  respects,  the financial position of the companies being reported upon
and their  results  of  operations  and cash  flows and have  been  prepared  in
conformity with GAAP, and that the examination of such accountants in connection
with such  financial  statements  has been  made in  accordance  with  generally
accepted auditing standards, and that such audit provides a reasonable basis for
such opinion in the  circumstances,  and (B) a certificate  of such  accountants
stating that they have reviewed this Agreement and stating further  whether,  in
making their audit,  they have become aware of any  condition or event that then
constitutes  a Default or an Event of  Default,  and, if they are aware that any
such  condition  or event then exists,  specifying  the nature and period of the
existence  thereof  (it  being  understood  that such  accountants  shall not be
liable,  directly  or  indirectly,  for any failure to obtain  knowledge  of any
Default  or Event of  Default  unless  such  accountants  should  have  obtained
knowledge  thereof  in making an audit in  accordance  with  generally  accepted
auditing  standards or did not make such an audit),  provided  that the delivery
within the time period  specified  above of the Company's  Annual Report on Form
10-K for such fiscal year (together, if available, with the

<PAGE>

Company's annual report to shareholders, if any, prepared pursuant to Rule 14a-3
under the Exchange Act) prepared in accordance  with the  requirements  therefor
and  filed  with the  Securities  and  Exchange  Commission,  together  with the
accountant's  certificate  described  in clause  (B)  above,  shall be deemed to
satisfy the requirements of this Section 7.1(b);

     (c) SEC and Other Reports -- promptly upon their becoming available, and if
applicable,  one copy of (i) each financial statement,  report,  notice or proxy
statement  sent by the Company or any  Subsidiary to public  securities  holders
generally, (ii) each regular or periodic report, each registration statement (in
each instance,  without exhibits except as expressly  requested by such holder),
and each  prospectus  and all  amendments  thereto  filed by the  Company or any
Subsidiary  with the  Securities  and  Exchange  Commission  and (iii) all press
releases and other  statements  made  available  generally by the Company or any
Subsidiary to the public concerning developments that are Material;

     (d) Notice of Default  or Event of  Default --  promptly,  and in any event
within five  Business  Days after a Responsible  Officer  becoming  aware of the
existence  of any  Default  or Event of Default or that any Person has given any
notice or taken any action with respect to a claimed  default  hereunder or that
any Person has given any  notice or taken any action  with  respect to a claimed
default of the type referred to in Section 11(f),  a written  notice  specifying
the nature and period of existence thereof and what action the Company is taking
or proposes to take with respect thereto;

     (e) ERISA  Matters -- promptly,  and in any event within five Business Days
after a Responsible  Officer  becoming aware of any of the following,  a written
notice setting forth the nature thereof and the action, if any, that the Company
or an ERISA Affiliate proposes to take with respect thereto:

     (i) with respect to any Plan, any reportable  event,  as defined in section
4043(b) of ERISA and the  regulations  thereunder,  for which notice thereof has
not been waived pursuant to such regulations as in effect on the date hereof; or

     (ii) the taking by the PBGC of steps to institute,  or the  threatening  by
the PBGC of the institution of,  proceedings under section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer,  any Plan, or the
receipt by the Company or any ERISA  Affiliate of a notice from a  Multiemployer
Plan  that  such  action  has  been  taken  by the  PBGC  with  respect  to such
Multiemployer Plan; or

     (iii)  any  event,  transaction  or  condition  that  could  result  in the
incurrence of any liability by the Company or any ERISA Affiliate

<PAGE>

pursuant  to Title I or IV of ERISA or the penalty or excise tax  provisions  of
the Code relating to employee benefit plans, or in the imposition of any Lien on
any of the rights,  properties  or assets of the Company or any ERISA  Affiliate
pursuant to Title I or IV of ERISA or such penalty or excise tax provisions,  if
such liability or Lien,  taken together with any other such liabilities or Liens
then existing, could reasonably be expected to have a Material Adverse Effect;

     (f) Notices  from  Governmental  Authority  --  promptly,  and in any event
within 30 days of receipt  thereof,  copies of any notice to the  Company or any
Subsidiary  from any  Federal or state  Governmental  Authority  relating to any
order,  ruling,  statute or other law or  regulation  that could  reasonably  be
expected to have a Material Adverse Effect;

     (g) Requested  Information -- with reasonable  promptness,  such other data
and  information  relating  to  the  business,  operations,  affairs,  financial
condition,  assets or  properties of the Company or any of its  Subsidiaries  or
relating to the ability of the Company to perform its obligations  hereunder and
under  the Notes as from time to time may be  reasonably  requested  by any such
holder of Notes.

         7.2.     Officer's Certificate.

     Each set of financial statements delivered to a holder of Notes pursuant to
Sections  7.1(a) or (b) hereof shall be accompanied by a certificate of a Senior
Financial Officer setting forth:

     (a)   Covenant   Compliance   --  the   information   (including   detailed
calculations)  required  in  order  to  establish  whether  the  Company  was in
compliance  with  the   requirements  of  Section  10.1  through  Section  10.8,
inclusive,  during the quarterly or annual period covered by the statements then
being  furnished  (including  for  each  such  Section,  where  applicable,  the
calculations of the maximum or minimum amount, ratio or percentage,  as the case
may be, permissible under the terms of such Sections, and the calculation of the
amount, ratio or percentage then in existence); and

     (b) Event of Default -- a  statement  that such  officer has  reviewed  the
relevant  terms  hereof  and has made,  or  caused to be made,  under his or her
supervision,  a review of the transactions and conditions of the Company and its
Subsidiaries from the beginning of the quarterly or annual period covered by the
statements  then being  furnished to the date of the  certificate  and that such
review  shall  not have  disclosed  the  existence  during  such  period  of any
condition or event that  constitutes a Default or an Event of Default or, if any
such condition or event existed or exists, specifying the nature and period of

<PAGE>

existence  thereof and what  action the Company  shall have taken or proposes to
take with respect thereto.

         7.3.     Inspection.

     The Company will permit the representatives of each holder of Notes that is
an Institutional Investor:

     (a) No Default -- if no Default  or Event of Default  then  exists,  at the
expense of such holder and upon reasonable prior notice to the Company, to visit
the principal executive office of the Company, to discuss the affairs,  finances
and accounts of the Company and its  Subsidiaries  with the Company's  officers,
and (with the consent of the Company,  which  consent  will not be  unreasonably
withheld)  its  independent  public  accountants,  and (with the  consent of the
Company,  which  consent will not be  unreasonably  withheld) to visit the other
offices  and  properties  of the  Company  and  each  Subsidiary,  all  at  such
reasonable times and as often as may be reasonably requested in writing; and

     (b) Default -- if a Default or Event of Default then exists, at the expense
of the  Company to visit and inspect  any of the  offices or  properties  of the
Company or any  Subsidiary,  to examine all their  respective  books of account,
records, reports and other papers, to make copies and extracts therefrom, and to
discuss their  respective  affairs,  finances and accounts with their respective
officers and independent  public  accountants (and by this provision the Company
authorizes said accountants to discuss the affairs, finances and accounts of the
Company  and  its  Subsidiaries),  all at  such  times  and as  often  as may be
reasonably requested.

8.       PREPAYMENT OF THE NOTES

         8.1.     Required Prepayments.

     On May 15, 2004,  and on each May 15  thereafter  to and  including May 15,
2009,  the Company  will  prepay  $11,428,572  principal  amount (or such lesser
principal  amount  as shall  then be  outstanding)  of the  Notes at 100% of the
principal  amount thereof and without  payment of the  Make-Whole  Amount or any
premium,  provided  that upon any partial  prepayment  of the Notes  pursuant to
Section  8.2 or 8.3 or  purchase  of the  Notes  permitted  by  Section  8.6 the
principal  amount of each required  prepayment  of the Notes  becoming due under
this Section 8.1 on and after the date of such  prepayment or purchase  shall be
reduced in the same proportion as the aggregate  unpaid  principal amount of the
Notes is reduced as a result of such prepayment or purchase.

         8.2.     Optional Prepayments with Make-Whole Amount.

<PAGE>

     The Company may, at its option,  upon notice as provided  below,  prepay at
any time all, or from time to time any part of, the Notes, in an amount not less
than  $2,000,000 in the case of a partial  prepayment,  at 100% of the principal
amount so  prepaid,  plus  accrued  interest to the date of  redemption  and the
Make-Whole  Amount  determined  for the  prepayment  date with  respect  to such
principal  amount.  The Company will give each holder of Notes written notice of
each  optional  prepayment  under this Section 8.2 not less than 30 days and not
more than 60 days prior to the date fixed for such prepayment.  Each such notice
shall  specify  such date,  the  aggregate  principal  amount of the Notes to be
prepaid on such date,  the principal  amount of each Note held by such holder to
be prepaid  (determined in accordance  with Section 8.4), and the interest to be
paid on the prepayment date with respect to such principal amount being prepaid,
and shall be accompanied by a certificate  of a Senior  Financial  Officer as to
the  estimated   Make-Whole  Amount  due  in  connection  with  such  prepayment
(calculated  as if the date of such  notice  were  the date of the  prepayment),
setting forth the details of such  computation.  Two Business Days prior to such
prepayment, the Company shall deliver to each holder of Notes a certificate of a
Senior Financial Officer specifying the calculation of such Make-Whole Amount as
of the specified prepayment date.

         8.3.     Change of Control.

     (a) Notice of Change of Control,  Management Buyout or Control Event -- The
Company  will,  within  five  Business  Days after any  Responsible  Officer has
knowledge  of the  occurrence  of any Change of  Control,  Management  Buyout or
Control Event, give written notice of such Change of Control,  Management Buyout
or Control Event to each holder of Notes unless notice in respect of such Change
of Control or Management  Buyout (or the Change of Control or Management  Buyout
contemplated  by such Control Event) shall have been given pursuant to paragraph
(b) of this  Section  8.3.  If a Change of  Control  or  Management  Buyout  has
occurred,  such notice shall contain and  constitute an offer to prepay Notes as
described in paragraph (c) of this Section 8.3 and shall be  accompanied  by the
certificate described in paragraph (g) of this Section 8.3.

     (b)  Condition  to Company  Action -- The Company  will not take any action
that  consummates  or finalizes a Change of Control or Management  Buyout unless
(i) at least 30 days prior to such  action it shall have given to each holder of
Notes written notice  containing and  constituting  an offer to prepay Notes and
accompanied by the  certificate  described in paragraph (g) of this Section 8.3,
and (ii) subject to the  provisions  of paragraph  (d) below,  contemporaneously
with such action, it prepays all Notes required to be prepaid in accordance with
this Section 8.3.

     (c) Offer to Prepay  Notes -- The offer to  prepay  Notes  contemplated  by
paragraphs  (a) and (b) of this  Section  8.3  shall be an offer to  prepay,  in
accordance with and subject to this Section 8.3, all, but not less than all, the

<PAGE>

Notes held by each  holder (in this case only,  "holder"  in respect of any Note
registered in the name of a nominee for a disclosed  beneficial owner shall mean
such  beneficial  owner)  on a date  specified  in  such  offer  (the  "Proposed
Prepayment  Date").  If such Proposed  Prepayment  Date is in connection with an
offer  contemplated by paragraph (a) of this Section 8.3, such date shall be not
less than 20 days and not more than 60 days after the date of such offer.

     (d)  Acceptance  -- A holder of Notes may accept  the offer to prepay  made
pursuant  to this  Section  8.3 by  causing  a notice of such  acceptance  to be
delivered to the Company at least 10 days prior to the Proposed Prepayment Date.
A failure by a holder of Notes to respond to an offer to prepay made pursuant to
this  Section 8.3 shall be deemed to  constitute  (i) in the case of a Change of
Control,  an  acceptance  of such offer by such holder and (ii) in the case of a
Management Buyout, a rejection of such offer by such holder.

     (e)  Prepayment --  Prepayment of the Notes to be prepaid  pursuant to this
Section  8.3  shall be (i) in the case of a Change  of  Control,  at 100% of the
principal amount of such Notes,  plus the Make-Whole  Amount  determined for the
date of prepayment with respect to such principal amount, together with interest
on such  Notes  accrued  to the  date of  prepayment,  or (ii) in the  case of a
Management  Buyout,  at 100% of the principal amount of such Notes together with
interest on such Notes accrued to the date of prepayment.  If applicable, on the
Business Day preceding the date of prepayment, the Company shall deliver to each
holder of Notes being prepaid a statement showing the Make-Whole Amount, if any,
due in  connection  with such  prepayment  and setting  forth the details of the
computation  of such  amount.  The  prepayment  shall  be  made on the  Proposed
Prepayment Date except as provided in paragraph (f) of this Section 8.3.

     (f)  Deferral  Pending  Change  in  Control  or  Management  Buyout  -- The
obligation  of the Company to prepay  Notes  pursuant to the offers  required by
subparagraphs  (a) and (b) and accepted in accordance with paragraph (d) of this
Section 8.3 is subject to the  occurrence of the Change of Control or Management
Buyout in respect of which such offers and acceptances  shall have been made. In
the event that such Change of Control or Management Buyout does not occur on the
Proposed  Prepayment Date in respect  thereof,  the prepayment shall be deferred
until  and  shall  be made on the  date on  which  such  Change  of  Control  or
Management Buyout occurs. The Company shall keep each holder of Notes reasonably
and timely informed of (i) any such deferral of the date of prepayment, (ii) the
date on which such Change of Control or Management Buyout and the prepayment are
expected to occur,  and (iii) any  determination  by the Company that efforts to
effect such Change of Control or Management Buyout have ceased or been abandoned
(in which case

<PAGE>

the offers and acceptances  made pursuant to this Section 8.3 in respect of such
Change of Control or Management Buyout shall be deemed rescinded).

     (g)  Officer's  Certificate  -- Each offer to prepay the Notes  pursuant to
this Section 8.3 shall be  accompanied  by a  certificate,  executed by a Senior
Financial  Officer of the Company and dated the date of such offer,  specifying:
(i) the Proposed  Prepayment Date, (ii) that such offer is made pursuant to this
Section 8.3, (iii) the principal amount of each Note offered to be prepaid, (iv)
if  applicable,  the estimated  Make-Whole  Amount due in  connection  with such
prepayment  (calculated  as if the  date of such  notice  were  the  date of the
prepayment),  setting  forth the details of such  computation,  (v) the interest
that would be due on each Note  offered to be prepaid,  accrued to the  Proposed
Prepayment  Date,  (vi)  that the  conditions  of this  Section  8.3  have  been
fulfilled and (vii) in reasonable  detail,  the nature and date or proposed date
of the Change of Control or Management Buyout.

         8.4.     Allocation of Partial Prepayments.

     In the case of each  partial  prepayment  of the Notes  pursuant to Section
8.2, the principal  amount of the Notes to be prepaid  shall be allocated  among
all  of  the  Notes  at  the  time  outstanding  in  proportion,  as  nearly  as
practicable,  to the respective unpaid principal amounts thereof not theretofore
called for prepayment.

         8.5.     Maturity; Surrender, etc.

     In the case of each  prepayment  of Notes  pursuant to this  Section 8, the
principal  amount of each Note to be  prepaid  shall  mature  and become due and
payable on the date fixed for such  prepayment,  together  with interest on such
principal amount accrued to such date and the applicable  Make-Whole  Amount, if
any.  From and after  such  date,  unless  the  Company  shall  fail to pay such
principal  amount  when so due and  payable,  together  with  the  interest  and
Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall
cease to accrue.  Any Note paid or prepaid in full shall be  surrendered  to the
Company and canceled  and shall not be reissued,  and no Note shall be issued in
lieu of any prepaid principal amount of any Note.

         8.6.     Purchase of Notes.

     The Company will not and will not permit any Affiliate to purchase, redeem,
prepay or otherwise  acquire,  directly or  indirectly,  any of the  outstanding
Notes except upon the payment or prepayment of the Notes in accordance  with the
terms of this  Agreement  and the Notes.  The Company will  promptly  cancel all
Notes  acquired by it or any  Affiliate  pursuant to any payment,  prepayment or
purchase of Notes  pursuant to any provision of this  Agreement and no Notes may
be issued in substitution or exchange for any such Notes.

<PAGE>

         8.7.     Make-Whole Amount.

     The term  "Make-Whole  Amount"  means,  with respect to any Note, an amount
equal to the excess, if any, of the Discounted Value of the Remaining  Scheduled
Payments  with  respect to the Called  Principal of such Note over the amount of
such Called  Principal,  provided that the Make-Whole  Amount may in no event be
less than zero.  For the purposes of  determining  the  Make-Whole  Amount,  the
following terms have the following meanings:

     "Called  Principal"  means, with respect to any Note, the principal of such
Note that is to be prepaid  pursuant  to Section  8.2 or 8.3 or has become or is
declared to be  immediately  due and payable  pursuant to Section  12.1,  as the
context requires.

     "Discounted Value" means, with respect to the Called Principal of any Note,
the amount obtained by discounting all Remaining Scheduled Payments with respect
to such  Called  Principal  from  their  respective  scheduled  due dates to the
Settlement  Date with  respect to such  Called  Principal,  in  accordance  with
accepted  financial  practice  and at a  discount  factor  (applied  on the same
periodic  basis as that on which  interest on the Notes is payable) equal to the
Reinvestment Yield with respect to such Called Principal.

     "Reinvestment  Yield"  means,  with respect to the Called  Principal of any
Note, 0.50% plus the yield to maturity implied by (i) the yields reported, as of
10:00  A.M.  (New York City  time) on the  second  Business  Day  preceding  the
Settlement Date with respect to such Called Principal, on the display designated
as the "PX  Screen" on the  Bloomberg  Financial  Market  Service (or such other
display as may replace the PX Screen on Bloomberg  Financial Market Service) for
actively  traded  U.S.  Treasury  securities  having  a  maturity  equal  to the
Remaining  Average Life of such Called  Principal as of such Settlement Date, or
(ii) if such yields are not  reported as of such time or the yields  reported as
of such time are not ascertainable, the Treasury Constant Maturity Series Yields
reported,  for the latest day for which such  yields have been so reported as of
the second  Business  Day  preceding  the  Settlement  Date with respect to such
Called  Principal,  in Federal  Reserve  Statistical  Release H.15 (519) (or any
comparable  successor  publication) for actively traded U.S. Treasury securities
having a constant  maturity  equal to the Remaining  Average Life of such Called
Principal as of such Settlement Date. Such implied yield will be determined,  if
necessary,  by (a) converting U.S.  Treasury bill quotations to bond- equivalent
yields in accordance  with  accepted  financial  practice and (b)  interpolating
linearly  between  (1) the  actively  traded  U.S.  Treasury  security  with the
maturity  closest to and greater  than the  Remaining  Average  Life and (2) the
actively  traded U.S.  Treasury  security with the maturity  closest to and less
than the Remaining Average Life.

<PAGE>

     "Remaining  Average Life" means, with respect to any Called Principal,  the
number  of years  (calculated  to the  nearest  one-twelfth  year)  obtained  by
dividing (i) such Called Principal into (ii) the sum of the products obtained by
multiplying (a) the principal component of each Remaining Scheduled Payment with
respect to such Called  Principal by (b) the number of years  (calculated to the
nearest  one-twelfth  year) that will elapse  between the  Settlement  Date with
respect to such Called  Principal and the  scheduled due date of such  Remaining
Scheduled Payment.

     "Remaining  Scheduled Payments" means, with respect to the Called Principal
of any Note,  all payments of such Called  Principal  and interest  thereon that
would be due after the Settlement Date with respect to such Called  Principal if
no payment of such Called  Principal  were made prior to its scheduled due date,
provided that if such Settlement  Date is not a date on which interest  payments
are due to be made  under the terms of the  Notes,  then the  amount of the next
succeeding  scheduled interest payment will be reduced by the amount of interest
accrued to such  Settlement Date and required to be paid on such Settlement Date
pursuant to Section 8.2, 8.3 or 12.1.

     "Settlement  Date" means, with respect to the Called Principal of any Note,
the date on which such Called Principal is to be prepaid pursuant to Section 8.2
or 8.3 or has become or is declared to be immediately  due and payable  pursuant
to Section 12.1, as the context requires.

9.       AFFIRMATIVE COVENANTS.

     The Company covenants that so long as any of the Notes are outstanding:

         9.1.     Compliance with Law.

     The Company will and will cause each of its Subsidiaries to comply with all
laws,  ordinances or governmental  rules or regulations to which each of them is
subject, including,  without limitation,  ERISA and Environmental Laws, and will
obtain and maintain in effect all licenses,  certificates,  permits,  franchises
and  other  governmental  authorizations  necessary  to the  ownership  of their
respective properties or to the conduct of their respective businesses,  in each
case to the  extent  necessary  to ensure  that  non-compliance  with such laws,
ordinances  or  governmental  rules or  regulations  or  failures  to  obtain or
maintain in effect such licenses,  certificates,  permits,  franchises and other
governmental  authorizations  could  not,  individually  or  in  the  aggregate,
reasonably be expected to have a Material Adverse Effect.

         9.2.     Insurance.

<PAGE>

     The Company will and will cause each of its Subsidiaries to maintain,  with
financially  sound and  reputable  insurers,  insurance  with  respect  to their
respective  properties and businesses against such casualties and contingencies,
of  such  types,  on such  terms  and in such  amounts  (including  deductibles,
co-insurance  and  self-insurance,  if adequate  reserves  are  maintained  with
respect  thereto)  as is  customary  in the  case  of  entities  of  established
reputations engaged in the same or a similar business and similarly situated.

         9.3.     Maintenance of Properties.

     The Company  will and will cause each of its  Subsidiaries  to maintain and
keep, or cause to be maintained and kept,  their  respective  properties in good
repair, working order and condition (other than ordinary wear and tear), so that
the business carried on in connection therewith may be properly conducted at all
times,  provided  that  this  Section  shall  not  prevent  the  Company  or any
Subsidiary  from  discontinuing  the operation and the maintenance of any of its
properties  if such  discontinuance  is desirable in the conduct of its business
and the Company has concluded that such discontinuance  could not,  individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

         9.4.     Payment of Taxes and Claims.

     The Company  will and will cause each of its  Subsidiaries  to file all tax
returns  required to be filed in any  jurisdiction  and to pay and discharge all
taxes  shown  to be due  and  payable  on such  returns  and  all  other  taxes,
assessments,  governmental  charges  or levies  imposed  on them or any of their
properties,  assets,  income  or  franchises,  to  the  extent  such  taxes  and
assessments  have become due and payable and before they have become  delinquent
and all  claims for which sums have  become due and  payable  that have or might
become a Lien on properties or assets of the Company or any Subsidiary, provided
that neither the Company nor any Subsidiary  need pay any such tax or assessment
or claim if (i) the amount,  applicability  or validity  thereof is contested by
the  Company  or  such  Subsidiary  on a  timely  basis  in  good  faith  and in
appropriate  proceedings,  and  the  Company  or a  Subsidiary  has  established
adequate  reserves  therefor in accordance with GAAP on the books of the Company
or such  Subsidiary or (ii) the nonpayment of all such taxes and  assessments in
the  aggregate  could not  reasonably  be  expected  to have a Material  Adverse
Effect.

         9.5.     Corporate Existence, etc.

     The Company  will at all times  preserve  and keep in full force and effect
its corporate existence.  Subject to Sections 10.5 and 10.6, the Company will at
all times preserve and keep in full force and effect the corporate  existence of
each of its  Subsidiaries  (unless merged into the Company or a Subsidiary)  and
all rights and  franchises of the Company and its  Subsidiaries  unless,  in the
good faith  judgment of the Company,  the  termination of or failure to preserve
and keep in full force and effect such corporate

<PAGE>

existence,  right or franchise could not, individually or in the aggregate, have
a Material Adverse Effect.

10.      NEGATIVE COVENANTS.

      The Company covenants that so long as any of the Notes are outstanding:

         10.1.    Adjusted Consolidated Net Worth.

     The Company will not permit Adjusted  Consolidated Net Worth at any time to
be less than $150,000,000.

         10.2.    Funded Debt.

     The  Company  will not,  and will not permit  any  Subsidiary  to,  create,
assume, incur or otherwise become liable for, directly or indirectly, any Funded
Debt, other than:

        (a)      the Notes;

        (b)      existing Funded Debt of the Company described in Schedule 5.15,
                 including any renewal, extension or refunding thereof;

        (c)      Funded Debt of a Subsidiary owed to the Company or a Wholly
                 Owned Subsidiary; and

        (d)      additional  Funded Debt  (including  any  additional  series of
                 notes  issued   hereunder)  if,  after  giving  effect  to  the
                 incurrence  of  such  Funded  Debt  and to the  application  of
                 proceeds thereof, Consolidated Funded Debt would not exceed 60%
                 of Consolidated Total Capitalization.

         10.3.    Fixed Charge Coverage Ratio.

     The  Company  will not permit the ratio  (calculated  as of the last day of
each fiscal quarter) of Consolidated Cash Flow to Consolidated Fixed Charges for
the period of eight quarters  ending as of last day of each fiscal quarter to be
less than 2.0 to 1.0. If the Company or a Subsidiary acquires any Person (or the
assets thereof) resulting in such Person becoming,  or otherwise resulting in, a
Subsidiary, compliance with this Section 10.3 shall be determined by calculating
Consolidated Cash Flow and Consolidated Fixed Charges on a pro forma basis as if
such Subsidiary had become such at the beginning of the eight-quarter period.

         10.4.    Limitations on Liens.

<PAGE>

     The Company  will not,  and will not permit any  Subsidiary  to,  permit to
exist,  create,  assume  or  incur,  directly  or  indirectly,  any  Lien on its
properties or assets, whether now owned or hereafter acquired, except:

     (a) Liens  existing  as of the date of Closing  that are listed in Schedule
10.4;

     (b) Liens (i)  incidental  to the conduct of business or the  ownership  of
properties   and   assets   (including    landlords',    lessors',    carriers',
warehousemen's,  mechanics', materialmen's and other similar Liens), which Liens
do not in the aggregate  materially  detract from the value of the assets of the
Company  and its  Subsidiaries  taken as a whole or  materially  impair  the use
thereof in the operation of their businesses, and (ii) to secure the performance
of bids, tenders,  leases or trade contracts, or to secure statutory obligations
(including  obligations under workers compensation,  unemployment  insurance and
other  social  security  legislation),  surety or appeal bonds or other Liens of
like  general  nature  incurred in the  ordinary  course of business  and not in
connection with the borrowing of money;

     (c)  leases or  subleases  granted  to  others,  easements,  rights-of-way,
restrictions and other similar charges or encumbrances,  in each case incidental
to, and not  interfering  with,  the  ordinary  conduct of the  business  of the
Company or any of its  Subsidiaries,  provided  that such  Liens do not,  in the
aggregate, materially detract from the value of such property;

     (d)  Liens (i)  existing  on  property  at the time of its  acquisition  or
construction  by the Company or a  Subsidiary  and not created in  contemplation
thereof,  whether or not the Indebtedness secured by such Lien is assumed by the
Company or a Subsidiary; or (ii) on property created contemporaneously or within
365 days of the acquisition or completion of construction or improvement thereof
to  secure or  provide  for all or a portion  of the  purchase  price or cost of
construction or improvement of such property after the date of Closing; or (iii)
existing  on  property  of a  Person  at the  time  such  Person  is  merged  or
consolidated  with,  or becomes a  Subsidiary  of, or  substantially  all of its
assets  are  acquired  by,  the  Company  or a  Subsidiary  and not  created  in
contemplation thereof;  provided that in the case of clauses (i), (ii) and (iii)
such Liens do not extend to additional property of the Company or any Subsidiary
(other than property that is an  improvement  to or is acquired for specific use
in connection with the subject  property) and the aggregate  principal amount of
Indebtedness  secured by each such Lien does not exceed  the fair  market  value
(determined in good faith by the board of directors of the Company);

     (e) Liens for taxes,  assessments or governmental  charges not then due and
delinquent or the nonpayment of which is permitted by Section 9.4;

<PAGE>

     (f) any attachment or judgment  Lien,  unless the judgment it secures shall
not,  within 60 days after the entry thereof,  have been discharged or execution
thereof stayed pending appeal,  or shall not have been discharged within 60 days
after the expiration of any such stay;

     (g) the extension, renewal or replacement of any Lien permitted by Sections
10.4(a) and (d),  provided that (i) there is no increase in the principal amount
or decrease in maturity of the Indebtedness  secured thereby at the time of such
extension,  renewal or  replacement,  and (ii) any new Lien attaches only to the
same property theretofore subject to such earlier Lien;

     (h) Liens securing  Indebtedness  of a Subsidiary to the Company or another
Wholly Owned Subsidiary; and

     (i) in addition to the Liens  permitted  by  paragraphs  (a) through (h) of
this Section 10.4,  Liens securing  Indebtedness  of the Company or a Subsidiary
that is not  otherwise  permitted  to be  outstanding  pursuant  paragraphs  (a)
through  (h),  provided  that  Priority  Debt does not at any time exceed 20% of
Consolidated Adjusted Net Worth.

         10.5.    Merger, Consolidation, etc.

     The Company will not, and will not permit any  Subsidiary  to,  consolidate
with or merge with any other  Person or convey,  transfer,  sell or lease all or
substantially  all  of  its  assets  in  a  single   transaction  or  series  of
transactions to any Person except that:

     (a) the Company may  consolidate  or merge with any other Person or convey,
transfer,  sell or lease  all or  substantially  all of its  assets  in a single
transaction or series of transactions to any Person, provided that:

     (i) the  successor  formed by such  consolidation  or the  survivor of such
merger or the Person that acquires by conveyance, transfer, sale or lease all or
substantially  all of the assets of the Company as an entirety,  as the case may
be, is a solvent corporation organized and existing under the laws of the United
States or any State thereof  (including  the District of Columbia),  and, if the
Company is not such  corporation,  such  corporation (y) shall have executed and
delivered  to each holder of any Notes its  assumption  of the due and  punctual
performance  and observance of each covenant and condition of this Agreement and
the Notes and (z) shall have caused to be  delivered to each holder of any Notes
an  opinion of  independent  counsel  reasonably  satisfactory  to the  Required
Holders,  to the  effect  that all  agreements  or  instruments  effecting  such
assumption are  enforceable  in accordance  with their terms and comply with the
terms hereof;

<PAGE>

     (ii)  immediately  after giving effect to such  transaction,  the successor
formed by such  consolidation  or the survivor of such merger or the Person that
acquires by conveyance,  transfer, sale or lease all or substantially all of the
assets of the Company as an  entirety,  as the case may be, could incur $1.00 of
additional Funded Debt; and

     (iii) immediately  after giving effect to such  transaction,  no Default or
Event of Default shall exist; and

     (b) Any  Subsidiary  may (x)  merge  into the  Company  (provided  that the
Company is the surviving  corporation) or another Wholly Owned Subsidiary or (y)
sell,  transfer or lease all or any part of its assets to the Company or another
Wholly Owned Subsidiary,  or (z) merge or consolidate with, or sell, transfer or
lease all or  substantially  all of its assets  to, any Person in a  transaction
that is permitted by Section 10.6 or, as a result of which,  such Person becomes
a  Subsidiary;  provided in each  instance  set forth in clauses (x) through (z)
that,  immediately before and after giving effect thereto,  there shall exist no
Default or Event of Default;

     No such conveyance, transfer or lease of substantially all of the assets of
the Company  shall have the effect of  releasing  the  Company or any  successor
corporation that shall  theretofore have become such in the manner prescribed in
this Section 10.5 from its liability under this Agreement or the Notes.

         10.6.    Sale of Assets.

     Except as permitted by Section 10.5 hereof,  the Company will not, and will
not permit any Subsidiary  to, sell,  lease,  transfer or otherwise  dispose of,
including by way of merger (collectively a "Disposition"), any assets, including
capital  stock of  Subsidiaries,  in one or a  series  of  transactions,  to any
Person,  other than (a)  Dispositions  in the ordinary  course of business,  (b)
Dispositions  by a Subsidiary to the Company or another Wholly Owned  Subsidiary
or (c) Dispositions not otherwise  permitted by Section 10.6(a) or (b), provided
that (i) each such Disposition is for a consideration at least equal to the fair
market value of the property subject thereto,  (ii) the aggregate net book value
of all assets so disposed of in any fiscal year pursuant to this Section 10.6(c)
does  not  exceed  25%  of  Consolidated  Total  Assets  as of  the  end  of the
immediately  preceding  fiscal  year,  and  (iii)  after  giving  effect to such
Disposition  no Default or Event of Default  would  exist.  Notwithstanding  the
foregoing, the Company may, and may permit any Subsidiary to, make a Disposition
and the assets subject to such  Disposition  shall not be subject to or included
in the  foregoing  limitation  and  computation  contained  in clause (c) of the
preceding sentence to the extent that (A) the net proceeds from such Disposition
are  within 365 days of such  Disposition  (y)  reinvested  or  committed  to be
reinvested in productive assets of a similar nature of at least equivalent value
by the Company or a Subsidiary  or (z) applied to the payment or  prepayment  of
any outstanding Indebtedness of the Company and its Subsidiaries

<PAGE>

that is not  subordinated to the Notes  (provided that if any such  Indebtedness
permits reborrowing by the Company or such Subsidiary,  the commitment to relend
is  permanently  reduced by the  amount of such  payment)  and (B) after  giving
effect to such  Disposition  no  Default or Event of Default  would  exist.  Any
prepayment of Notes  pursuant to this Section 10.6 shall be in  accordance  with
Section 8.2.

         10.7.    Nature of Business.

     The Company will not, and will not permit any  Subsidiary to, engage in any
business if, as a result  thereof,  the general  nature of the business in which
the Company and its Subsidiaries, taken as a whole, would then be engaged, would
be  substantially  changed from the general  nature of the business in which the
Company is engaged on the date of this Agreement as described in the Memorandum.

         10.8.    Transactions with Affiliates.

     The  Company  will not and will not  permit  any  Subsidiary  to enter into
directly or indirectly  any Material  transaction  or Material  group of related
transactions  (including the purchase,  lease, sale or exchange of properties of
any kind or the  rendering of any service)  with any  Affiliate  (other than the
Company or another  Subsidiary),  except upon fair and reasonable  terms no less
favorable  to the  Company  or such  Subsidiary  than would be  obtainable  in a
comparable arm's-length transaction with a Person not an Affiliate.

11.      EVENTS OF DEFAULT.

     An "Event of Default"  shall exist if any of the  following  conditions  or
events shall occur and be continuing:

     (a) the  Company  defaults in the payment of any  principal  or  Make-Whole
Amount,  if any, on any Note when the same becomes due and  payable,  whether at
maturity or at a date fixed for prepayment or by declaration or otherwise; or

     (b) the Company  defaults  in the  payment of any  interest on any Note for
more than five Business Days after the same becomes due and payable; or

     (c) the Company  defaults in the performance of or compliance with any term
contained in Section 7.1(d) or Sections 10.1 through 10.8; or

     (d) the Company  defaults in the performance of or compliance with any term
contained herein (other than those referred to in paragraphs (a), (b) and (c) of
this  Section  11) and such  default  is not  remedied  within 30 days after the
earlier of (i) a Responsible  Officer obtaining actual knowledge of such default
and (ii) the Company receiving written notice of such default; or

<PAGE>

     (e) any  representation  or warranty made in writing by or on behalf of the
Company or by any officer of the Company in, or pursuant to the requirements of,
this  Agreement or in connection  with the issuance and sale of the Notes proves
to have been false or incorrect in any material  respect on the date as of which
made; or

     (f) (i) the Company or any  Subsidiary  is in default (as  principal  or as
guarantor  or other  surety) in the  payment of any  principal  of or premium or
make-whole  amount or interest on any  Indebtedness  that is  outstanding  in an
aggregate  principal  amount of at least  $5,000,000  beyond any period of grace
provided  with  respect  thereto,  or (ii)the  Company or any  Subsidiary  is in
default in the performance of or compliance with any term of any evidence of any
Indebtedness in an aggregate outstanding principal amount of at least $5,000,000
or of any mortgage,  indenture or other agreement  relating thereto or any other
condition  exists,  and as a  consequence  of such  default  or  condition  such
Indebtedness has become, or has been declared, due and payable before its stated
maturity  or before its  regularly  scheduled  dates of  payment,  or (iii) as a
consequence of the occurrence or continuation  of any event or condition  (other
than the passage of time or the right of the holder of  Indebtedness  to convert
such  Indebtedness  into equity  interests),  the Company or any  Subsidiary has
become obligated to purchase or repay  Indebtedness  before its regular maturity
or before its regularly  scheduled dates of payment in an aggregate  outstanding
principal amount of at least $5,000,000; or

     (g) the Company or any Subsidiary (i) is generally not paying, or admits in
writing its  inability  to pay,  its debts as they become  due,  (ii) files,  or
consents  by answer or  otherwise  to the filing  against it of, a petition  for
relief or reorganization or arrangement or any other petition in bankruptcy, for
liquidation or to take advantage of any bankruptcy, insolvency,  reorganization,
moratorium or other similar law of any  jurisdiction,  (iii) makes an assignment
for  the  benefit  of its  creditors,  (iv)  consents  to the  appointment  of a
custodian,  receiver,  trustee or other officer with similar powers with respect
to it or  with  respect  to  any  substantial  part  of  its  property,  (v)  is
adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for
the purpose of any of the foregoing; or

     (h) a court or governmental  authority of competent  jurisdiction enters an
order appointing,  without consent by the Company or any of its Subsidiaries,  a
custodian,  receiver,  trustee or other officer with similar powers with respect
to it or with respect to any substantial  part of its property,  or constituting
an order for relief or approving a petition for relief or  reorganization or any
other  petition in bankruptcy  or for  liquidation  or to take  advantage of any
bankruptcy or insolvency law of any  jurisdiction,  or ordering the dissolution,
winding-up or liquidation of the Company or any of its Subsidiaries, or any

<PAGE>

such petition shall be filed against the Company or any of its  Subsidiaries and
such petition shall not be dismissed within 30 days; or

     (i) a final  judgment or judgments for the payment of money  aggregating in
excess of  $5,000,000  are  rendered  against one or more of the Company and its
Subsidiaries  and which  judgments are not,  within 60 days after entry thereof,
bonded,  discharged or stayed pending  appeal,  or are not discharged  within 60
days after the expiration of such stay; or

     (j) if (i) any Plan shall fail to satisfy the minimum funding  standards of
ERISA  or the  Code  for any  plan  year or part  thereof  or a  waiver  of such
standards  or extension of any  amortization  period is sought or granted  under
section  412 of the Code,  (ii) a notice of intent to  terminate  any Plan shall
have been or is reasonably  expected to be filed with the PBGC or the PBGC shall
have instituted  proceedings  under ERISA section 4042 to terminate or appoint a
trustee to  administer  any Plan or the PBGC shall have  notified the Company or
any ERISA  Affiliate  that a Plan may become a subject of any such  proceedings,
(iii) the aggregate "amount of unfunded benefit liabilities" (within the meaning
of section 4001(a)(18) of ERISA) under all Plans,  determined in accordance with
Title IV of  ERISA,  shall  exceed  $5,000,000,  (iv) the  Company  or any ERISA
Affiliate  shall have incurred or is reasonably  expected to incur any liability
pursuant  to Title I or IV of ERISA or the penalty or excise tax  provisions  of
the Code  relating  to  employee  benefit  plans,  (v) the  Company or any ERISA
Affiliate  withdraws  from any  Multiemployer  Plan,  or (vi) the Company or any
Subsidiary establishes or amends any employee welfare benefit plan that provides
post-employment  welfare  benefits in a manner that would increase the liability
of the  Company  or any  Subsidiary  thereunder;  and any such  event or  events
described in clauses (i) through  (vi) above,  either  individually  or together
with any other such event or events,  could  reasonably  be  expected  to have a
Material Adverse Effect.

     As used in Section 11(j),  the terms "employee  benefit plan" and "employee
welfare benefit plan" shall have the respective  meanings assigned to such terms
in Section 3 of ERISA.

12.      REMEDIES ON DEFAULT, ETC.

         12.1.    Acceleration.

     (a) If an Event  of  Default  with  respect  to the  Company  described  in
paragraph (g) or (h) of Section 11 (other than an Event of Default  described in
clause (i) of paragraph  (g) or  described  in clause (vi) of  paragraph  (g) by
virtue of the fact that such clause encompasses clause (i) of paragraph (g)) has
occurred,  all the Notes then outstanding shall automatically become immediately
due and payable.

<PAGE>

     (b) If any other  Event of Default  has  occurred  and is  continuing,  the
holders of a majority in principal  amount of the Notes at the time  outstanding
may at any time at their  option,  by notice or notices to the Company,  declare
all the Notes then outstanding to be immediately due and payable.

     (c) If any Event of Default described in paragraph (a) or (b) of Section 11
has  occurred  and is  continuing,  any  holder or  holders of Notes at the time
outstanding  affected by such Event of Default may at any time,  at its or their
option, by notice or notices to the Company, declare all the Notes held by it or
them to be immediately due and payable.

     Upon any Notes  becoming due and payable under this Section  12.1,  whether
automatically or by declaration, such Notes will forthwith mature and the entire
unpaid principal amount of such Notes,  plus (x) all accrued and unpaid interest
thereon and (y) the  Make-Whole  Amount  determined in respect of such principal
amount  (to  the  full  extent  permitted  by  applicable  law),  shall  all  be
immediately due and payable, in each and every case without presentment, demand,
protest  or  further  notice,  all of  which  are  hereby  waived.  The  Company
acknowledges,  and the parties hereto agree,  that each holder of a Note has the
right to maintain its investment in the Notes free from repayment by the Company
(except as herein specifically  provided for) and that the provision for payment
of a Make-Whole Amount by the Company in the event that the Notes are prepaid or
are  accelerated  as a result of an Event of  Default,  is  intended  to provide
compensation for the deprivation of such right under such circumstances.

         12.2.    Other Remedies.

     If any  Default or Event of Default has  occurred  and is  continuing,  and
irrespective of whether any Notes have become or have been declared  immediately
due and  payable  under  Section  12.1,  the  holder  of any  Note  at the  time
outstanding  may  proceed to protect and enforce the rights of such holder by an
action at law, suit in equity or other appropriate  proceeding,  whether for the
specific performance of any agreement contained herein or in any Note, or for an
injunction against a violation of any of the terms hereof or thereof,  or in aid
of the exercise of any power granted hereby or thereby or by law or otherwise.

         12.3.    Rescission.

     At any time after any Notes have been declared due and payable  pursuant to
clause (b) or (c) of Section 12.1, the holders of a majority in principal amount
of the Notes then outstanding, by written notice to the Company, may rescind and
annul any such  declaration and its consequences if (a) the Company has paid all
overdue interest on the Notes, all principal of and Make-Whole  Amount,  if any,
on any Notes that are due and  payable  and are  unpaid  other than by reason of
such  declaration,  and all interest on such overdue  principal  and  Make-Whole
Amount, if any, and (to the extent permitted by

<PAGE>

     applicable  law) any  overdue  interest  in respect  of the  Notes,  at the
Default Rate, (b) all Events of Default and Defaults,  other than non-payment of
amounts  that have  become due solely by reason of such  declaration,  have been
cured or have been waived  pursuant to Section 17, and (c) no judgment or decree
has been  entered  for the payment of any monies due  pursuant  hereto or to the
Notes.  No rescission  and  annulment  under this Section 12.3 will extend to or
affect any subsequent Event of Default or Default or impair any right consequent
thereon.

         12.4.    No Waivers or Election of Remedies, Expenses, etc.

     No course of dealing  and no delay on the part of any holder of any Note in
exercising  any right,  power or remedy  shall  operate  as a waiver  thereof or
otherwise prejudice such holder's rights, powers or remedies. No right, power or
remedy  conferred by this Agreement or by any Note upon any holder thereof shall
be exclusive of any other right,  power or remedy  referred to herein or therein
or now or  hereafter  available  at law,  in equity,  by  statute or  otherwise.
Without  limiting the  obligations  of the Company under Section 15, the Company
will pay to the holder of each Note on demand  such  further  amount as shall be
sufficient  to cover all costs  and  expenses  of such  holder  incurred  in any
enforcement or collection under this Section 12, including,  without limitation,
reasonable attorneys' fees, expenses and disbursements.

13.      REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

         13.1.    Registration of Notes.

     The Company shall keep at its principal executive office a register for the
registration  and  registration  of transfers of Notes.  The name and address of
each holder of one or more Notes, each transfer thereof and the name and address
of each  transferee of one or more Notes shall be  registered in such  register.
Prior to due presentment for registration of transfer,  the Person in whose name
any Note shall be registered shall be deemed and treated as the owner and holder
thereof for all purposes  hereof,  and the Company  shall not be affected by any
notice or knowledge to the  contrary.  The Company shall give to any holder of a
Note  that is an  Institutional  Investor  promptly  upon  request  therefor,  a
complete and correct copy of the names and addresses of all  registered  holders
of Notes.

         13.2.    Transfer and Exchange of Notes.

     Upon surrender of any Note at the principal executive office of the Company
for  registration  of transfer or exchange  (and in the case of a surrender  for
registration of transfer,  duly endorsed or accompanied by a written  instrument
of transfer duly executed by the registered  holder of such Note or his attorney
duly  authorized in writing and  accompanied  by the address for notices of each
transferee of such Note or part thereof), the Company shall execute and deliver,
at the Company's  expense (except as provided below),  one or more new Notes (as
requested by the holder thereof) in exchange therefor, in an aggregate principal

<PAGE>

     amount equal to the unpaid principal  amount of the surrendered  Note. Each
such new Note shall be payable to such  Person as such  holder may  request  and
shall be  substantially  in the form of  Exhibit  1. Each such new Note shall be
dated and bear interest from the date to which  interest shall have been paid on
the surrendered  Note or dated the date of the  surrendered  Note if no interest
shall  have  been  paid  thereon.  The  Company  may  require  payment  of a sum
sufficient to cover any stamp tax or  governmental  charge imposed in respect of
any such transfer of Notes.  Notes shall not be transferred in  denominations of
less than  $500,000,  provided that if necessary to enable the  registration  of
transfer  by a holder  of its  entire  holding  of  Notes,  one Note may be in a
denomination of less than $500,000. Any transferee,  by its acceptance of a Note
registered  in its name (or the name of its  nominee),  shall be  deemed to have
made the representations set forth in Section 6.2.

         13.3.    Replacement of Notes.

     Upon receipt by the Company of evidence  reasonably  satisfactory  to it of
the  ownership of and the loss,  theft,  destruction  or  mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor,  notice from
such Institutional Investor of such ownership and such loss, theft,  destruction
or mutilation), and

     (a) in the case of loss,  theft or  destruction,  of  indemnity  reasonably
satisfactory to it (provided that if the holder of such Note is, or is a nominee
for, an original  Purchaser or another holder of a Note that is an Institutional
Investor,  such Person's own unsecured agreement of indemnity shall be deemed to
be satisfactory), or

     (b) in the case of mutilation, upon surrender and cancellation thereof, the
Company at its own expense  shall execute and deliver,  in lieu  thereof,  a new
Note, dated and bearing interest from the date to which interest shall have been
paid on such lost, stolen, destroyed or mutilated Note or dated the date of such
lost,  stolen,  destroyed or mutilated  Note if no interest shall have been paid
thereon.

14.      PAYMENTS ON NOTES.

         14.1.    Place of Payment.

     Subject to Section 14.2, payments of principal,  Make-Whole Amount, if any,
and  interest  becoming  due and  payable on the Notes shall be made in Chicago,
Illinois,  at the  principal  office of Bank of America.  The Company may at any
time,  by notice to each  holder of a Note,  change  the place of payment of the
Notes so long as such place of payment shall be either the  principal  office of
the  Company in such  jurisdiction  or the  principal  office of a bank or trust
company in such jurisdiction.

         14.2.    Home Office Payment.

<PAGE>

     So long  as you or your  nominee  shall  be the  holder  of any  Note,  and
notwithstanding  anything  contained  in  Section  14.1 or in  such  Note to the
contrary, the Company will pay all sums becoming due on such Note for principal,
Make-Whole  Amount,  if any,  and  interest  by the  method  and at the  address
specified  for such  purpose  below  your name in  Schedule  A, or by such other
method or at such other address as you shall have from time to time specified to
the Company in writing for such purpose,  without the  presentation or surrender
of such Note or the making of any  notation  thereon,  except that upon  written
request of the Company  made  concurrently  with or  reasonably  promptly  after
payment or prepayment  in full of any Note,  you shall  surrender  such Note for
cancellation,  reasonably promptly after any such request, to the Company at its
principal  executive office or at the place of payment most recently  designated
by the Company pursuant to Section 14.1. Prior to any sale or other  disposition
of any Note held by you or your  nominee  you  will,  at your  election,  either
endorse  thereon the amount of principal paid thereon and the last date to which
interest has been paid thereon or surrender such Note to the Company in exchange
for a new Note or Notes  pursuant to Section  13.2.  The Company will afford the
benefits of this Section 14.2 to any  Institutional  Investor that is the direct
or indirect  transferee  of any Note  purchased by you under this  Agreement and
that has made the same agreement  relating to such Note as you have made in this
Section 14.2.

15.      EXPENSES, ETC.

         15.1.    Transaction Expenses.

     Whether or not the transactions  contemplated  hereby are consummated,  the
Company will pay all costs and expenses (including reasonable attorneys' fees of
a special counsel and, if reasonably required,  local or other counsel) incurred
by you and each  Other  Purchaser  or holder of a Note in  connection  with such
transactions and in connection with any amendments, waivers or consents under or
in respect of this Agreement or the Notes (whether or not such amendment, waiver
or consent becomes effective),  including, without limitation: (a) the costs and
expenses  incurred in enforcing or defending (or  determining  whether or how to
enforce or defend) any rights under this Agreement or the Notes or in responding
to any subpoena or other legal process or informal  investigative  demand issued
in connection  with this Agreement or the Notes,  or by reason of being a holder
of any Note, and (b) the costs and expenses, including financial advisors' fees,
incurred in connection  with the  insolvency or bankruptcy of the Company or any
Subsidiary  or  in  connection  with  any  work-out  or   restructuring  of  the
transactions  contemplated  hereby and by the Notes.  The Company  will pay, and
will save you and each  other  holder of a Note  harmless  from,  all  claims in
respect of any fees,  costs or expenses  if any,  of brokers and finders  (other
than those retained by you).

         15.2.    Survival.

<PAGE>

     The  obligations  of the  Company  under this  Section 15 will  survive the
payment or transfer of any Note,  the  enforcement,  amendment  or waiver of any
provision of this Agreement or the Notes, and the termination of this Agreement.

16.      SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE
AGREEMENT.

     All  representations  and warranties  contained herein speak as of the date
made or deemed herein to be made and shall survive the execution and delivery of
this  Agreement  and the Notes,  the  purchase or transfer by you of any Note or
portion  thereof or interest  therein  and the  payment of any Note,  and may be
relied upon by any subsequent holder of a Note,  regardless of any investigation
made at any time by or on  behalf  of you or any  other  holder  of a Note.  All
statements  contained in any certificate or other instrument  delivered by or on
behalf of the Company pursuant to this Agreement shall be deemed representations
and  warranties  of the Company under this  Agreement.  Subject to the preceding
sentence,  this  Agreement  and  the  Notes  embody  the  entire  agreement  and
understanding between you and the Company and supersede all prior agreements and
understandings relating to the subject matter hereof.

17.      AMENDMENT AND WAIVER.

         17.1.    Requirements.

     This Agreement and the Notes may be amended, and the observance of any term
hereof or of the Notes may be waived (either  retroactively  or  prospectively),
with (and  only  with) the  written  consent  of the  Company  and the  Required
Holders,  except that (a) no  amendment  or waiver of any of the  provisions  of
Section  1, 2,  3, 4, 5, 6 or 21  hereof,  or any  defined  term  (as it is used
therein), will be effective as to you unless consented to by you in writing, and
(b) no such amendment or waiver may,  without the written  consent of the holder
of each  Note at the time  outstanding  affected  thereby,  (i)  subject  to the
provisions  of Section 12 relating to  acceleration  or  rescission,  change the
amount or time of any  prepayment or payment of principal of, or reduce the rate
or change the time of payment or method of  computation  of  interest  or of the
Make-Whole  Amount on, the Notes,  (ii) change the  percentage  of the principal
amount of the Notes the  holders  of which are  required  to consent to any such
amendment or waiver,  or (iii) amend any of Sections 8, 11(a),  11(b), 12, 17 or
20.

         17.2.    Solicitation of Holders of Notes.

     (a)  Solicitation.  The  Company  will  provide  each  holder  of the Notes
(irrespective  of  the  amount  of  Notes  then  owned  by it)  with  sufficient
information,  sufficiently far in advance of the date a decision is required, to
enable such holder to make an informed and  considered  decision with respect to
any proposed amendment, waiver or consent in respect of any of the

<PAGE>

provisions hereof or of the Notes. The Company will deliver executed or true and
correct copies of each  amendment,  waiver or consent  effected  pursuant to the
provisions  of this  Section 17 to each  holder of  outstanding  Notes  promptly
following  the date on which it is executed  and  delivered  by, or receives the
consent or approval of, the requisite holders of Notes.

     (b) Payment. The Company will not directly or indirectly pay or cause to be
paid any  remuneration,  whether by way of supplemental or additional  interest,
fee or otherwise, or grant any security, to any holder of Notes as consideration
for or as an  inducement  to the  entering  into by any  holder  of Notes or any
waiver or  amendment  of any of the  terms and  provisions  hereof  unless  such
remuneration is concurrently paid, or security is concurrently  granted,  on the
same terms, ratably to each holder of Notes then outstanding even if such holder
did not consent to such waiver or amendment.

         17.3.    Binding Effect, etc.

     Any amendment or waiver consented to as provided in this Section 17 applies
equally to all  holders of Notes and is binding  upon them and upon each  future
holder of any Note and upon the Company  without regard to whether such Note has
been marked to indicate such  amendment or waiver.  No such  amendment or waiver
will extend to or affect any obligation,  covenant,  agreement, Default or Event
of  Default  not  expressly  amended  or waived or impair  any right  consequent
thereon. No course of dealing between the Company and the holder of any Note nor
any delay in exercising any rights  hereunder or under any Note shall operate as
a waiver of any  rights of any  holder of such Note.  As used  herein,  the term
"this Agreement" and references thereto shall mean this Agreement as it may from
time to time be amended or supplemented.

         17.4.    Notes held by Company, etc.

     Solely for the purpose of determining  whether the holders of the requisite
percentage of the aggregate principal amount of Notes then outstanding  approved
or  consented  to any  amendment,  waiver  or  consent  to be given  under  this
Agreement  or the Notes,  or have  directed  the  taking of any action  provided
herein  or in the  Notes to be taken  upon the  direction  of the  holders  of a
specified   percentage  of  the  aggregate   principal   amount  of  Notes  then
outstanding,  Notes  directly or  indirectly  owned by the Company or any of its
Affiliates shall be deemed not to be outstanding.

18.      NOTICES.

     All notices and  communications  provided for hereunder shall be in writing
and sent (a) by telecopy if the sender on the same day sends a  confirming  copy
of such notice by a recognized overnight delivery service (charges prepaid),  or
(b) by registered or certified

<PAGE>

mail with return receipt  requested  (postage  prepaid),  or (c) by a recognized
overnight delivery service (with charges prepaid). Any such notice must be sent:

     (i) if to you or your  nominee,  to you or it at the address  specified for
such  communications  in Schedule A, or at such other address as you or it shall
have specified to the Company in writing,

     (ii) if to any other holder of any Note,  to such holder at such address as
such other holder shall have specified to the Company in writing, or

     (iii) if to the  Company,  to the  Company at its  address set forth at the
beginning hereof to the attention of Treasurer,  or at such other address as the
Company shall have specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

19.      REPRODUCTION OF DOCUMENTS.

     This  Agreement  and all documents  relating  thereto,  including,  without
limitation,  (a)  consents,  waivers and  modifications  that may  hereafter  be
executed,  (b)  documents  received  by you at the  Closing  (except  the  Notes
themselves),  and (c) financial  statements,  certificates and other information
previously  or  hereafter  furnished  to you,  may be  reproduced  by you by any
photographic, photostatic, microfilm, microcard, miniature photographic or other
similar  process and you may destroy any original  document so  reproduced.  The
Company agrees and stipulates  that, to the extent  permitted by applicable law,
any such reproduction  shall be admissible in evidence as the original itself in
any  judicial or  administrative  proceeding  (whether or not the original is in
existence  and whether or not such  reproduction  was made by you in the regular
course of business) and any  enlargement,  facsimile or further  reproduction of
such  reproduction  shall  likewise be admissible  in evidence.  This Section 19
shall not prohibit the Company or any other holder of Notes from  contesting any
such reproduction to the same extent that it could contest the original, or from
introducing  evidence to demonstrate that any such reproduction is not accurate,
has been altered or is otherwise incomplete.

20.      CONFIDENTIAL INFORMATION.

     For the  purposes of this  Section  20,  "Confidential  Information"  means
information delivered to you by or on behalf of the Company or any Subsidiary in
connection with the transactions  contemplated by or otherwise  pursuant to this
Agreement  that is  proprietary in nature and that was clearly marked or labeled
or otherwise  adequately  identified  in writing  when  received by you as being
confidential  information of the Company or such Subsidiary,  provided that such
term does not include information that (a) was publicly known or otherwise known
to you prior to the time of such disclosure,

<PAGE>

     (b)  subsequently  becomes publicly known through no act or omission by you
or any person acting on your behalf,  (c)  otherwise  becomes known to you other
than through  disclosure  by the Company or any  Subsidiary  or (d)  constitutes
financial  statements  delivered  to you under  Section  7.1 that are  otherwise
publicly  available.  You will maintain the confidentiality of such Confidential
Information  in  accordance  with  procedures  adopted  by you in good  faith to
protect  confidential  information of third parties  delivered to you,  provided
that you may deliver or disclose Confidential Information to (i) your directors,
trustees,  officers,  employees, agents, attorneys and affiliates (to the extent
such  disclosure  reasonably  relates to the  administration  of the  investment
represented by your Notes),  (ii) your financial advisors and other professional
advisors  who  agree  to  hold   confidential   the   Confidential   Information
substantially  in accordance  with the terms of this Section 20, (iii) any other
holder of any Note, (iv) any  Institutional  Investor to which you sell or offer
to sell such Note or any part  thereof  or any  participation  therein  (if such
Person  has  agreed  in  writing  prior  to its  receipt  of  such  Confidential
Information  to be bound by the  provisions  of this Section 20), (v) any Person
from which you offer to purchase any security of the Company (if such Person has
agreed in writing prior to its receipt of such  Confidential  Information  to be
bound  by the  provisions  of this  Section  20),  (vi)  any  federal  or  state
regulatory   authority  having   jurisdiction   over  you,  (vii)  the  National
Association  of  Insurance  Commissioners  or any similar  organization,  or any
nationally  recognized  rating agency that requires access to information  about
your  investment  portfolio or (viii) any other Person to which such delivery or
disclosure  may be  necessary  (w) to  effect  compliance  with any  law,  rule,
regulation or order  applicable to you, (x) in response to any subpoena or other
legal process, (y) in connection with any litigation to which you are a party or
(z) if an Event of Default has occurred and is continuing, to the extent you may
reasonably determine such delivery and disclosure to be necessary or appropriate
in the  enforcement  or for the protection of the rights and remedies under your
Notes and this  Agreement.  Each holder of a Note, by its  acceptance of a Note,
will be deemed to have agreed to be bound by and to be entitled to the  benefits
of this Section 20 as though it were a party to this  Agreement.  On  reasonable
request by the Company in  connection  with the delivery to any holder of a Note
of  information  required to be delivered to such holder under this Agreement or
requested by such holder (other than a holder that is a party to this  Agreement
or its  nominee),  such  holder  will enter into an  agreement  with the Company
embodying the provisions of this Section 20.

21.      SUBSTITUTION OF PURCHASER.

     You shall have the right to  substitute  any one of your  Affiliates as the
purchaser  of the Notes that you have agreed to purchase  hereunder,  by written
notice  to the  Company,  which  notice  shall  be  signed  by both you and such
Affiliate,  shall  contain  such  Affiliate's  agreement  to be  bound  by  this
Agreement and shall  contain a  confirmation  by such  Affiliate of the accuracy
with respect to it of the  representations  set forth in Section 6. Upon receipt
of such notice, wherever the word "you" is used in this Agreement (other than in
this Section 21),  such word shall be deemed to refer to such  Affiliate in lieu
of you.  In the event  that such  Affiliate  is so  substituted  as a  purchaser
hereunder and such Affiliate  thereafter  transfers to you all of the Notes then
held by such Affiliate, upon receipt by the

<PAGE>

     Company of notice of such transfer, wherever the word "you" is used in this
Agreement  (other than in this Section 21),  such word shall no longer be deemed
to refer to such  Affiliate,  but shall refer to you, and you shall have all the
rights of an original holder of the Notes under this Agreement.

22.      ADDITIONAL SERIES OF NOTES.

         22.1.    Issuance of Additional Series of Notes.

     The Company may, from time to time, issue and sell additional series of its
unsecured  promissory notes (each additional series being designated by the next
succeeding  letter of the  alphabet  following  designation  of the  immediately
preceding  series) to one or more additional  purchasers  (which may include any
Purchaser if such Purchaser  shall in its sole discretion  consent  thereto) and
may, in connection with the documentation of such additional series, incorporate
by reference all of or certain of the  provisions of this  Agreement;  provided,
however,  that such  incorporation  by  reference  shall not dilute or otherwise
affect the  relative  priority or other  rights of the  Purchasers  of the Notes
hereunder or any subsequent  series of notes,  including the  percentages of the
Notes  required to approve an amendment to this  Agreement or to effect a waiver
pursuant to Section 17.1 or the  percentages of the Notes required to accelerate
the maturity of the Notes or to rescind such an  acceleration of the maturity of
the Notes pursuant to Sections 12.1 and 12.3. Under no  circumstances  shall the
issuance of additional series of Notes by the Company in any way modify or amend
this  Agreement  or the meaning of the term  "Notes" as used in this  Agreement.
This Section 22 does not in any manner obligate the Purchasers or the holders of
the Notes to purchase or agree to purchase  additional  series of the  Company"s
unsecured promissory notes now or at any time in the future.

         22.2.    Conditions to Additional Series of Notes.

     The Company may (but shall not be required to) at any time, or from time to
time, offer to the Purchasers an opportunity to purchase  additional  promissory
notes.  At such time the Company  shall  provide such  offeree  with  additional
information  regarding the terms of such additional promissory notes, the timing
of the  offering and  whatever  additional  information  as the  Purchasers  may
request. If a Purchaser fails to respond to such an offer, it shall be deemed to
have rejected the Company's  offer.  The Purchasers  shall have no obligation to
give any  consideration  to the offer  whatsoever or to make any such additional
purchase, and may reject such offers at their sole discretion. In the event that
the Company and a Purchaser shall mutually agree to such an additional purchase,
the issuance of each such additional series of promissory notes shall occur upon
the  execution  by  the  Company  and  the   Purchaser  of  a  terms   agreement
substantially  in  the  form  of  Exhibit  22.2,  appropriately  completed,  and
satisfaction  by the Company of all of the conditions to closing and funding set
forth in Section 4, with such changes as shall be appropriate to such additional
series  of  promissory  notes,  and  the  delivery  of such  additional  closing
documents and opinions the Purchaser shall request.

<PAGE>

23.      MISCELLANEOUS.

         23.1.    Successors and Assigns.

     All covenants  and other  agreements  contained in this  Agreement by or on
behalf  of any of the  parties  hereto  bind and inure to the  benefit  of their
respective successors and assigns (including, without limitation, any subsequent
holder of a Note) whether so expressed or not.

         23.2.    Payments Due on Non-Business Days.

     Anything in this  Agreement or the Notes to the  contrary  notwithstanding,
any payment of principal of or Make-Whole Amount or interest on any Note that is
due on a date  other than a  Business  Day shall be made on the next  succeeding
Business Day without including the additional days elapsed in the computation of
the interest payable on such next succeeding Business Day.

         23.3.    Severability.

     Any provision of this Agreement that is prohibited or  unenforceable in any
jurisdiction  shall,  as to such  jurisdiction,  be ineffective to the extent of
such  prohibition  or  unenforceability   without   invalidating  the  remaining
provisions  hereof,  and  any  such  prohibition  or   unenforceability  in  any
jurisdiction  shall (to the full  extent  permitted  by law) not  invalidate  or
render unenforceable such provision in any other jurisdiction.

         23.4.    Construction.

     Each covenant contained herein shall be construed (absent express provision
to the contrary) as being  independent of each other covenant  contained herein,
so that  compliance  with any one  covenant  shall not  (absent  such an express
contrary  provision)  be deemed to excuse  compliance  with any other  covenant.
Where any provision herein refers to action to be taken by any Person,  or which
such Person is  prohibited  from  taking,  such  provision  shall be  applicable
whether such action is taken directly or indirectly by such Person.

         23.5.    Counterparts.

     This Agreement may be executed in any number of counterparts, each of which
shall be an original but all of which together shall  constitute one instrument.
Each  counterpart may consist of a number of copies hereof,  each signed by less
than all, but together signed by all, of the parties hereto.

         23.6.    Governing Law.

<PAGE>

     This Agreement shall be construed and enforced in accordance  with, and the
rights of the  parties  shall be  governed  by, the law of the State of Illinois
excluding  choice-of- law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.

                                    * * * * *

<PAGE>

     If you are in  agreement  with  the  foregoing,  please  sign  the  form of
agreement on the accompanying counterpart of this Agreement and return it to the
Company,  whereupon the foregoing shall become a binding  agreement  between you
and the Company.

                                              Very truly yours,

                                             CASEY'S GENERAL STORES, INC.

                                    By:      /s/ Ronald M. Lamb
                                             ------------------------
                                             Name:  Ronald M. Lamb
                                             Title:  Chief Executive Officer

                                             Attest:

                                    By:      /s/ John G. Harmon
                                             ------------------------
                                             Name:  John G. Harmon
                                             Title:  Secretary/Treasurer

<PAGE>

The foregoing is agreed to as of the date thereof.

NEW YORK LIFE INSURANCE COMPANY

By:      /s/ A. Post Howland
         -------------------------
Name:    A. Post Howland
Title:   Investment Manager

NEW YORK LIFE INSURANCE AND
ANNUITY CORPORATION
By:      New York Life Asset Management
         Operating Company LLC,
         Its Investment Manager

By:      /s/ David L. Bangs
         -----------------------
Name:    David L. Bangs
Title:   Vice President

<PAGE>

ALLSTATE LIFE INSURANCE COMPANY
OF NEW YORK

By:      /s/ Jeffrey A. Mazer
         ------------------------
Name:    Jeffrey A. Mazer

By:      /s/ Patricia W. Wilson

         ---------------------------
Name:    Patricia W. Wilson

                  Authorized Signatories

ALLSTATE LIFE INSURANCE COMPANY

By:      /s/ Jeffrey A. Mazer
         ------------------------
Name:    Jeffrey A. Mazer

By:      /s/ Patricia W. Wilson

         --------------------------
Name:    Patricia W. Wilson

                  Authorized Signatories

AMERICAN HERITAGE LIFE INSURANCE
COMPANY

By:      /s/ Jeffrey A. Mazer
         ------------------------
Name:    Jeffrey A. Mazer

By:      /s/ Patricia W. Wilson

         ---------------------------
Name:    Patricia W. Wilson

                  Authorized Signatories

<PAGE>

COLUMBIA UNIVERSAL LIFE
INSURANCE COMPANY

By:      /s/ Jeffrey A. Mazer
         -----------------------
Name:    Jeffrey A. Mazer

By:      /s/ Patricia W. Wilson

         --------------------------
Name:    Patricia W. Wilson

                  Authorized Signatories

<PAGE>

CONNECTICUT GENERAL LIFE
INSURANCE COMPANY
By:      Cigna Investments, Inc.
         (authorized agent)

         By:      /s/ James R. Kuzemchak

                  -----------------------------
         Name:    James R. Kuzemchak
         Title:   Managing Director

LIFE INSURANCE COMPANY OF NORTH
AMERICA

By:      Cigna Investments, Inc. (authorized agent)

         By:      /s/ James R. Kuzemchak

                  -----------------------------
         Name:    James R. Kuzemchak
         Title:   Managing Director

<PAGE>

AMERICAN INVESTORS LIFE INSURANCE
COMPANY

By:      /s/ Roger D. Fors
         ---------------------
Name:    Roger D. Fors

Title:   V.P. Investment Management & Research

<PAGE>

KNIGHTS OF COLUMBUS

By:      /s/ Robert J. Lane
         ----------------------
Name:    Robert J. Lane
Title:   Assistant Supreme Secretary

<PAGE>

MODERN WOODMEN OF AMERICA

By:      /s/ Clyde C. Schoeck

         -------------------------
Name:    Clyde C. Schoeck
Title:   President

<PAGE>

ACACIA LIFE INSURANCE COMPANY
By:      Ameritas Investment Advisors Inc.,
         as Agent

By:      /s/ Patrick J. Henry
         ------------------------
Name:    Patrick J. Henry

Title:   Vice President - Fixed Income Securities

<PAGE>

BERKSHIRE LIFE INSURANCE COMPANY

By:      /s/ Ellen I. Whittaker

         --------------------------
Name:    Ellen I. Whittaker
Title:   Senior Investment Officer

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                         Principal Amount of
Name of Purchaser                                        Notes to be Purchased

NEW YORK LIFE INSURANCE                                  $16,000,000
  COMPANY

     (1) All payments by wire or  intrabank  transfer of  immediately  available
funds to:

                  Chase Manhattan Bank
                  New York, New York 10019
                  ABA No. 021-000-021
                  Credit:  New York Life Insurance Company
                  General Account No. 008-9-00687

     with sufficient information  (including issuer, PPN number,  interest rate,
maturity and whether payment is of principal,  premium, or interest) to identify
the source and application of such funds.

         with advice of such payments to:

                  New York Life Insurance Company
                  51 Madison Avenue
                  New York, New York 10010-1603

                  Attention:        Treasury Department

                                    Securities Income Section

                                    Room 209
                                    Fax #:  (212) 447-4160

(2)      All other communications:

                  New York Life Insurance Company
                  51 Madison Avenue
                  New York, New York 10010

                                        1

                                   Schedule A

<PAGE>

                        Attention: Investment Department

                                    Private Finance Group

                                    Room 206
                                    Fax #:  (212) 447-4122

     with a copy of any notices  regarding  defaults or Events of Default  under
the operative documents to:

                  Attention:        Office of General Counsel
                                    Investment Section, Room 1104
                                    Fax #:  (212) 576-8340

                                    Tax ID #13-5582869

                                        2

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                         Principal Amount of
Name of Purchaser                                        Notes to be Purchased

NEW YORK LIFE INSURANCE                                  $10,000,000
  AND ANNUITY CORPORATION

(1)      All payments by wire or intrabank transfer of immediately available
funds to:

                  Chase Manhattan Bank
                  New York, New York 10019
                  ABA No. 021-000-021
                  Credit:  New York Life Insurance and Annuity Corporation
                  General Account No. 323-8-47382

     with sufficient information  (including issuer, PPN number,  interest rate,
maturity and whether payment is of principal,  premium, or interest) to identify
the source and application of such funds.

         with advice of such payments to:

                  New York Life Insurance and Annuity Corporation
                  c/o New York Life Insurance Company
                  51 Madison Avenue
                  New York, New York 10010-1603

                  Attention:        Treasury Department

                                    Securities Income Section

                                    Room 209
                                    Fax #:  (212) 447-4160

(2)      All other communications:

                  New York Life Insurance and Annuity Corporation
                  c/o New York Life Insurance Company
                  51 Madison Avenue

                                        3

                                   Schedule A

<PAGE>

                  New York, New York 10010-1603

                        Attention: Investment Department

                                    Private Finance Group

                                    Room 206
                                    Fax #:  (212) 447-4122

         with a copy of any  notices  regarding  defaults  or Events of  Default
         under the operative documents to:

                  Attention:        Office of General Counsel
                                    Investment Section, Room 1104
                                    Fax #:  (212) 576-8340

                                    Tax ID #13-3044743

                                        4

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                       Principal Amount of
Name of Purchaser                                      Notes to be Purchased

ALLSTATE LIFE INSURANCE                                $10,000,000
  COMPANY OF NEW YORK

     (1) All  payments  by  Fedwire  transfer  of  immediately  availabl  funds,
identifying  the name of the Issuer,  the Private  Placement  Number preceded by
"DPP" and the  payment  as  principal,  interest  or  premium,  in the format as
follows:

         BBK =    Harris Trust and Savings Bank

                  ABA #071000288
         BNF =    Allstate Life Insurance Company

                           Collection Account #168-120-4
         ORG =      (Enter Issuer Name)
                    OBI = DPP - (Enter Private Placement No., if available)

     Payment Due Date  (MM/DD/YY) - P (Enter "P" and amount of  principal  being
remitted, for example,  P5000000.00) - I (Enter "I" and amount of interest being
remitted,  for example,  I225000.00)  (2) All notices of scheduled  payments and
written confirmations of such wire transfer to be sent to:

         Allstate Insurance Company
         Investment Operations - Private Placements

         3075 Sanders Road, STE G4A
         Northbrook, IL  60062-7127
         Telephone:        (847) 402-2769
         Telecopy:         (847) 326-5040

(3)   Securities to be delivered to:

         Citibank, Federal Savings Bank
         500 W. Madison Street

         Floor 6, Zone 4

                                        5

                                   Schedule A

<PAGE>

         Chicago, Illinois  60661-2591
         Attention:  Ellen Lorden
         For Allstate Life Insurance Company of New York/Safekeeping Account
              No. 846684

     (4) All financial  reports,  compliance  certificates and all other written
communications, including notice of prepayments, to be sent to:

         Allstate Life Insurance Company
         Private Placements Department
         3075 Sanders Road, STE G3A
         Northbrook, Illinois  60062-7127
         Telephone:        (847) 402-8922
         Telecopy:         (847) 402-3092

Tax ID #36-2608394

                                        6

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                         Principal Amount of
Name of Purchaser                                        Notes to be Purchased

ALLSTATE LIFE INSURANCE COMPANY                          $1,000,000

     (1) All  payments  by  Fedwire  transfer  of  immediately  availabl  funds,
identifying  the name of the Issuer,  the Private  Placement  Number preceded by
"DPP" and the  payment  as  principal,  interest  or  premium,  in the format as
follows:

     BBK = Harris  Trust and Savings  Bank ABA  #071000288  BNF = Allstate  Life
Insurance Company  Collection Account #168-117-0 ORG = (Enter Issuer Name) OBI =
DPP - (Enter Private Placement No., if available)  Payment Due Date (MM/DD/YY) -
P (Enter "P" and amount of principal being remitted, for example, P5000000.00) -
I (Enter "I" and amount of interest being remitted, for example, I225000.00) (2)
All  notices  of  scheduled  payments  and  written  confirmations  of such wire
transfer to be sent to:

         Allstate Insurance Company
         Investment Operations - Private Placements

         3075 Sanders Road, STE G4A
         Northbrook, IL  60062-7127
         Telephone:        (847) 402-2769
         Telecopy:         (847) 326-5040

     (3) Securities to be delivered to:
         Citibank, Federal Savings Bank
         500 W. Madison Street

         Floor 6, Zone 4
         Chicago, Illinois  60661-2591

                                        7

                                   Schedule A

<PAGE>

         Attention:  Ellen Lorden

         For Allstate Life Insurance Company/Safekeeping Account No. 846627

     (4) All financial  reports,  compliance  certificates and all other written
communications, including notice of prepayments, to be sent to:

         Allstate Life Insurance Company
         Private Placements Department
         3075 Sanders Road, STE G3A
         Northbrook, Illinois  60062-7127
         Telephone:        (847) 402-8922
         Telecopy:         (847) 402-3092

Tax ID #36-2554642

                                        8

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                        Principal Amount of
Name of Purchaser                                       Notes to be Purchased

AMERICAN HERITAGE LIFE INSURANCE COMPANY                $2,000,000

     (1) All  payments  by  Fedwire  transfer  of  immediately  availabl  funds,
identifying  the name of the Issuer,  the Private  Placement  Number preceded by
"DPP" and the  payment  as  principal,  interest  or  premium,  in the format as
follows:

     BBK = Harris Trust and Savings Bank ABA #071000288 BNF = American  Heritage
Life Insurance Company  Collection  Account #172-504-3 ORG = (Enter Issuer Name)
OBI = DPP -  (Enter  Private  Placement  No.,  if  available)  Payment  Due Date
(MM/DD/YY) - P (Enter "P" and amount of principal being  remitted,  for example,
P5000000.00) - I (Enter "I" and amount of interest being remitted,  for example,
I225000.00) (2) All notices of scheduled  payments and written  confirmations of
such wire transfer to be sent to:

         Allstate Insurance Company
         Investment Operations - Private Placements

         3075 Sanders Road, STE G4A
         Northbrook, IL  60062-7127
         Telephone:  (847) 402-2769
         Telecopy:   (847) 326-5040

     (3) Securities to be delivered to:
         Citibank, Federal Savings Bank
         U. S. Custody & Employee Benefit Trust
         500 W. Madison Street, Floor 6, Zone 4
         Chicago, Illinois  60661-2591

                                        9

                                   Schedule A

<PAGE>

         Attention:  Pam Jost

         For American Heritage Life Insurance Company/Safekeeping Account
             No. 846928

     (4) All financial  reports,  compliance  certificates and all other written
communications, including notice of prepayments, to be sent to:

         Allstate Life Insurance Company
         Private Placements Department
         3075 Sanders Road, STE G3A
         Northbrook, Illinois  60062-7127
         Telephone:  (847) 402-8922
         Telecopy:   (847) 402-3092

Tax ID #59-0781901

                                       10

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                         Principal Amount of
Name of Purchaser                                        Notes to be Purchased

ALLSTATE LIFE INSURANCE COMPANY                          $2,000,000

     Name  in  Notes  are to be  issued:  CITIBANK,  FEDERAL  SAVINGS  BANK,  as
Collateral  Agent and Trustee Under the Security and Trust Agreement Dated as of
September  1,  1993  (Northbrook  Life  Insurance  Company,  Secured  Party  and
Beneficiary) (1) All payments by Fedwire transfer of immediately availabl funds,
identifying  the name of the Issuer,  the Private  Placement  Number preceded by
"DPP" and the  payment  as  principal,  interest  or  premium,  in the format as
follows:

     BBK = Harris  Trust and Savings  Bank ABA  #071000288  BNF = Allstate  Life
Insurance Company  Collection Account #168-124-6 ORG = (Enter Issuer Name) OBI =
DPP - (Enter Private Placement No., if available)  Payment Due Date (MM/DD/YY) -
P (Enter "P" and amount of principal being remitted, for example, P5000000.00) -
I (Enter "I" and amount of interest being remitted, for example, I225000.00) (2)
All  notices  of  scheduled  payments  and  written  confirmations  of such wire
transfer to be sent to:

         Allstate Insurance Company
         Investment Operations - Private Placements

         3075 Sanders Road, STE G4A
         Northbrook, IL  60062-7127
         Telephone:  (847) 402-2769
         Telecopy:   (847) 326-5040

     (3) Securities to be delivered to:

                                       11

                                   Schedule A

<PAGE>

         Citibank, Federal Savings Bank
         U. S. Custody & Employee Benefit Trust
         500 W. Madison Street, Floor 6, Zone 4
         Chicago, Illinois  60661-2591
         Attention:  Pam Jost
         For Allstate Life Insurance Company/Safekeeping Account No. 846635

     (4) All financial  reports,  compliance  certificates and all other written
communications, including notice of prepayments, to be sent to:

         Allstate Life Insurance Company
         Private Placements Department
         3075 Sanders Road, STE G3A
         Northbrook, Illinois  60062-7127

         Telephone:  (847) 402-8922 / Telecopy:   (847) 402-3092

Tax ID #36-2554642

                                       12

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                      Principal Amount of
Name of Purchaser                                     Notes to be Purchased

COLUMBIA UNIVERSAL LIFE INSURANCE                     $5,000,000
COMPANY

     (1) All  payments  by  Fedwire  transfer  of  immediately  availabl  funds,
identifying  the name of the Issuer,  the Private  Placement  Number preceded by
"DPP" and the  payment  as  principal,  interest  or  premium,  in the format as
follows:

     BBK = Harris Trust and Savings Bank ABA #071000288 BNF = Columbia Universal
Life Insurance Company  Collection  Account #224-802-9 ORG = (Enter Issuer Name)
OBI = DPP -  (Enter  Private  Placement  No.,  if  available)  Payment  Due Date
(MM/DD/YY) - P (Enter "P" and amount of principal being  remitted,  for example,
P5000000.00) - I (Enter "I" and amount of interest being remitted,  for example,
I225000.00) (2) All notices of scheduled  payments and written  confirmations of
such wire transfer to be sent to:

         Allstate Insurance Company
         Investment Operations - Private Placements

         3075 Sanders Road, STE G4A
         Northbrook, IL  60062-7127
         Telephone:  (847) 402-2769
         Telecopy:   (847) 326-5040

     (3) Securities to be delivered to:

         Citibank, Federal Savings Bank
         U. S. Custody & Employee Benefit Trust
         500 W. Madison Street, Floor 6, Zone 4

                                       13

                                   Schedule A

<PAGE>

         Chicago, Illinois  60661-2591
         Attention:  Pam Jost
         For Columbia Universal Life Insurance Company/Safekeeping Account
            No. 846929

     (4) All financial  reports,  compliance  certificates and all other written
communications, including notice of prepayments, to be sent to:

         Allstate Life Insurance Company
         Private Placements Department
         3075 Sanders Road, STE G3A
         Northbrook, Illinois  60062-7127
         Telephone:  (847) 402-8922
         Telecopy:   (847) 402-3092

Tax ID #75-0956156

                                       14

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                       Principal Amount of
Name of Purchaser                                      Notes to be Purchased

CONNECTICUT GENERAL LIFE                               $4,200,000
  INSURANCE COMPANY                                     4,200,000
                                                        1,500,000
                                                        1,000,000
                                                        1,000,000

Nominee Name in which Notes are to be issued:  CIG & Co.

(1)      All payments by Federal Funds wire transfer of immediately available
         funds to:

                  Chase NYC/CTR/
                  BNF=CIGNA Private Placements/AC=9009001802
                  ABA# 021000021

         with the following accompanying information:

     OBI = Casey's  General  Stores,  Inc.;  7.89% Senior  Notes,  Series A; PPN
147528 D@9;  due May 15, 2010;  [application  (as among  principal,  premium and
interest of the payment being made); contact name and phone]

(2)      Notices related to payments:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Securities Processing - S-309
                  900 Cottage Grove Road
                  Hartford, CT  06152-2309

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Private Securities - S-307

                                       15

                                   Schedule A

<PAGE>

                  Operations Group
                  900 Cottage Grove Road
                  Hartford, CT 06152-2307
                  Fax:  (860) 726-7203

         with a copy to:

                  Chase Manhattan Bank
                  Private Placement Servicing

                  P.O. Box 1508
                  Bowling Green Station
                  New York, NY 10081
                  Attention:  CIGNA Private Placements
                  Fax:  (212) 552-3107/1005

(3)      All other communications:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Private Securities Division - S-307
                  900 Cottage Grove Road
                  Hartford, CT 06152-2307
                  Fax:  (860) 726-7203

     (4) Deliver the  originals  of all the  securities,  together  with CIGNA's
"Transmittal of Securities to Custodian" Form directly to CIGNA's custodian:

                  The Chase Manhattan Bank
                  Attn:  Larry Zimmer
                  4 New York Plaza, 11th Floor
                  New York, NY 10004

Tax ID #13-3574027

                                       16

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                     Principal Amount of
Name of Purchaser                                    Notes to be Purchased

LIFE INSURANCE COMPANY                               $3,100,000
  OF NORTH AMERICA

Nominee Name in which Notes are to be issued:  CIG & Co.

(1)      All payments by Federal Funds wire transfer of immediately available
         funds to:

                  Chase NYC/CTR/
                  BNF=CIGNA Private Placements/AC=9009001802
                  ABA# 021000021

         with the following accompanying information:

     OBI = Casey's  General  Stores,  Inc.;  7.89% Senior  Notes,  Series A; PPN
147528 D@9;  due May 15, 2010;  [application  (as among  principal,  premium and
interest of the payment being made); contact name and phone]

(2)      Notices related to payments:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Securities Processing - S-309
                  900 Cottage Grove Road
                  Hartford, CT  06152-2309

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Private Securities - S-307
                  Operations Group
                  900 Cottage Grove Road
                  Hartford, CT 06152-2307

                                       17

                                   Schedule A

<PAGE>

                  Fax:  (860) 726-7203

         with a copy to:

                  Chase Manhattan Bank
                  Private Placement Servicing

                  P.O. Box 1508
                  Bowling Green Station
                  New York, NY 10081
                  Attention:  CIGNA Private Placements
                  Fax:  (212) 552-3107/1005

(3)      All other communications:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Private Securities Division - S-307
                  900 Cottage Grove Road
                  Hartford, CT 06152-2307
                  Fax:  (860) 726-7203

     (4) Deliver the  originals  of all the  securities,  together  with CIGNA's
"Transmittal of Securities to Custodian" Form directly to CIGNA's custodian:

                  The Chase Manhattan Bank
                  Attn:  Larry Zimmer
                  4 New York Plaza, 11th Floor
                  New York, NY 10004

Tax ID #13-3574027

                                       18

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                   Principal Amount of
Name of Purchaser                                  Notes to be Purchased

AMERICAN INVESTORS LIFE INSURANCE                  $5,000,000
   COMPANY

Nominee Name in which Notes are to be Issued:  Hare & Co.

(1)      All payments by wire transfer of immediately available funds to:

                  The Bank of New York

                  New York, NY

                  ABA #021000018
                  Credit Account #0000010048
                  American Investors Life Insurance Company
                  Ref:  Issue Name, Coupon, Maturity Date, PPN Number

     with  sufficient  information  (including  Name of Company,  Description of
Security,  PPN, Due Date and Application (as among principal,  Make-Whole Amount
and Interest)) to identify the source and application of such funds.

(2)      All notices of payments and written confirmations of such wire
         transfers:

                  American Investors Life Insurance Company
                  c/o AmerUs Capital Management
                  699 Walnut Street, Suite 1700

                  Des Moines, IA  50309
                  Attn:  Amy Fread
                  Tel:  (515) 283-3427
                  Fax:  (515) 283-3434

(3)      All other communications:

                  American Investors Life Insurance Company
                  c/o AmerUs Capital Management

                                       19

                                   Schedule A

<PAGE>

                  699 Walnut Street, Suite 1700
                  Des Moines, IA  50309
                  Attn:  Steve Sweeney
                  Tel:  (515) 362-3542
                  Fax:  (515) 283-3434

(4)      Instruction for Delivery of Notes:

                  The Bank of New York
                  One Wall Street, 3rd Floor

                  Window A

                  FAO: American Investors Life Insurance Company, A/C #010048
                  New York, NY 10286
                  Attn:    Rich Reinhold (212) 635-4611
                           or Anthony Marrero (212) 635-4608

Tax ID #48-0696320                  (American Investors Life Insurance Company)
         #13-6062916                (Hare & Co.)

                                       20

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                     Principal Amount of
Name of Purchaser                                    Notes to be Purchased

KNIGHTS OF COLUMBUS                                  $5,000,000

     (1) All payments on or in respect of the Notes to be by bank wire  transfer
of Federal or other  immediately  available funds  (identifying  each payment as
"Casey's General Stores,  Inc. 7.89% Senior Notes,  Series A, due May 15, 2010")
to:

                  Bank of New York (ABA #021-000-018)
                  One Wall Street
                  New York, New York 10286

                  for credit to:

                  Knights of Columbus General Account
                  Account #8900300825
     (2) All notices with respect to payments and written  confirmation  of each
such payment to:
                  Knights of Columbus
                  P.O. Box 2016
                  New Haven, CT 06521-2016
                  Attention:  Accounting Department
                  Contact:  Maria Sobko
                  Phone:  (203) 772-2130

(3)      All other communication to:

                  Knights of Columbus
                  One Columbus Plaza
                  New Haven, CT 06510-3326

                  Attention:  Investment Department
                  Telecopier Number:  (203) 772-0037

                                       21

                                   Schedule A

<PAGE>

Tax ID #06-0416470

                                       22

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                     Principal Amount of
Name of Purchaser                                    Notes to be Purchased

MODERN WOODMEN OF AMERICA                            $5,000,000

     (1) All payments on account of Notes held by such  purchaser  shall be made
by wire transfer of immediately available funds for credit to:

                  The Northern Trust Company 50 South LaSalle Street Chicago, IL
                  60675 ABA No. 071-000-152

                  Account Name:  Modern Woodmen of America
                  Account No. 84352

     Each such wire transfer  shall set forth the name of the Company,  the full
title  (including  the  applicable  coupon rate and final  maturity date) of the
Notes,  a reference to PPN No. 147528 D@9 and the due date and  application  (as
among principal, premium and interest) of the payment being made.

(2)      Address for all notices relating to payments:

                  Modern Woodmen of America

                     Attn: Investment Accounting Department

                  1701 First Avenue
                  Rock Island, IL 61201

(3)      Address for all other communications and notices:

                  Modern Woodmen of America
                  Attn:  Investment Department
                  1701 First Avenue
                  Rock Island, IL 61201

                                       23

                                   Schedule A

<PAGE>

Tax ID #36-1493430

                                       24

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                    Principal Amount of
Name of Purchaser                                   Notes to be Purchased

ACACIA LIFE INSURANCE COMPANY                       $2,000,000

Nominee name in which Notes are to be Issued:  Hare & Co.

(1)      All payments by wire transfer of immediately available funds to:

                  BK of NYC/BBK
                  BK of NY ABA #021000018
                  IOC 566/Income Collections

                  Acacia Life Insurance Company; Cusip; Name of Issue

         with sufficient information to identify the source and application of
         such funds.

(2)      All notices of payments and written confirmations of such wire
         transfers:

                  Acacia Life Insurance Company
                  Ameritas Investment Advisors, Inc.
                  5900 'O' Street

                  Lincoln, NE 68510
                  Fax #:  (402) 467-6970

(3)      All other communications:

                  Acacia Life Insurance Company
                  Ameritas Investment Advisors, Inc.
                  5900 'O' Street

                  Lincoln, NE 68510

(4)      Delivery of certificates by registered mail:

                  The Bank of New York
                  Attn:  Free Receive Department

                                       25

                                   Schedule A

<PAGE>

                  One Wall Street, 3rd Floor
                  New York, NY 10286
                  Acacia Life Insurance Company #000327

Tax ID #53-0022880

                                       26

                                   Schedule A

<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                         Principal Amount of
Name of Purchaser                                        Notes to be Purchased

BERKSHIRE LIFE INSURANCE COMPANY                         $2,000,000

     (1) All payments on account of the Notes in accordance  with the provisions
thereof and of this  Agreement  shall be  transmitted  by bank wire  transfer of
Federal or other immediately available funds for credit to:

                  Berkshire Life Insurance Company

                  Account #002-4-020877
                  The Chase Manhattan Bank, N.A.
                  ABA #021000021

     with sufficient information  (including issuer, PPN number,  interest rate,
maturity and whether  payment is of principal,  premium or interest) to identify
the source and application of such funds.

     (2) Copies of all  notices  and  confirmations  of  payments  and all other
communications shall be delivered or mailed to:

                  Berkshire Life Insurance Company
                  Attention:  Securities Department
                  700 South Street
                  Pittsfield, MA  01201
                  Tel:  (413) 499-4321
                  Fax:  (413) 442-9763

Tax ID #04-1083480

                                       27

                                   Schedule A

<PAGE>

                                   SCHEDULE B

                                  DEFINED TERMS

     As used herein, the following terms have the respective  meanings set forth
below or set forth in the Section hereof following such term:

     "Adjusted  Consolidated  Net  Worth"  means,  as of any date,  consolidated
stockholders'  equity  of  the  Company  and  its  Subsidiaries  on  such  date,
determined in accordance with GAAP, plus deferred taxes and minority interests.

     "Affiliate"  means,  at any time,  and with respect to any Person,  (a) any
other  Person  that at such time  directly  or  indirectly  through  one or more
intermediaries  Controls,  or is Controlled by, or is under common Control with,
such first Person, and (b) any Person beneficially  owning or holding,  directly
or  indirectly,  10% or more of any class of voting or equity  interests  of the
Company  or any  Subsidiary  or (c) any  Person  of which  the  Company  and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
10% or  more  of any  class  of  voting  or  equity  interests.  As used in this
definition, "Control" means the possession, directly or indirectly, of the power
to direct or cause the  direction  of the  management  and policies of a Person,
whether  through the ownership of voting  securities,  by contract or otherwise.
Unless the context otherwise  clearly requires,  any reference to an "Affiliate"
is a reference to an Affiliate of the Company.

     "Business  Day" means (a) for the  purposes  of Section  8.7 only,  any day
other than a Saturday,  a Sunday or a day on which  commercial banks in New York
City are required or  authorized  to be closed,  and (b) for the purposes of any
other provision of this Agreement,  any day other than a Saturday, a Sunday or a
day on which commercial banks in New York City or Chicago, Illinois are required
or authorized to be closed.

     "Capital  Lease"  means,  at any time,  a lease  with  respect to which the
lessee is required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

     "Change of Control" means the acquisition  through purchase or otherwise by
any Person, or group of Persons acting in concert, other than the Control Group,
directly or indirectly, in one or more transactions,  of beneficial ownership or
control of securities representing more than 50% of the combined voting power of
the  Company's  Voting  Stock  (including  the  agreement  to act in  concert by
Persons, other than the Control Group, who

                                        1

                                   Schedule B

<PAGE>

beneficially  own  or  control  securities  representing  more  than  50% of the
combined voting power of the Company's Voting Stock).

     "Closing" is defined in Section 3.

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

     "Company" means Casey's General Stores, Inc., an Iowa corporation.

     "Confidential Information" is defined in Section 20.

     "Consolidated Cash Flow" means, for any period, Consolidated Net Income for
such period,  plus, to the extent deducted in determining such  Consolidated Net
Income,  (i) income tax expense,  (ii)  Consolidated  Fixed  Charges,  and (iii)
depreciation and amortization expense.

     "Consolidated  Fixed  Charges"  means,  for  any  period,  the  sum  of (i)
consolidated  interest expense (including  capitalized interest and the interest
component of Capital Leases) of the Company and its Subsidiaries for such period
and (ii) Consolidated Rentals for such period.

     "Consolidated  Funded  Debt"  means  Funded  Debt  of the  Company  and its
Subsidiaries determined on a consolidated basis in accordance with GAAP.

     "Consolidated  Net  Income"  means,  for any  period,  the net  income  (or
deficit) of the Company and its  Subsidiaries  for such period,  determined on a
consolidated  basis in accordance  with GAAP, but excluding in any event (a) any
extraordinary, unusual or non- recurring gain or loss (net of any tax effect) or
any gain or loss from discontinued operations and (b) net earnings of any Person
(other  than a  Subsidiary)  in  which  the  Company  or any  Subsidiary  has an
ownership interest unless such net earnings shall have actually been received by
the Company or such Subsidiary in the form of cash distributions.

     "Consolidated   Net  Worth"  means,  as  of  any  date,  the   consolidated
shareholders'  equity  of the  Company  and its  Subsidiaries  as of  such  date
determined in accordance with GAAP.

     "Consolidated  Rentals" means,  for any period,  the rentals of the Company
and its Subsidiaries for such period under all leases other than Capital Leases,
determined on a consolidated basis in accordance with GAAP.

                                        2

                                   Schedule B

                                      - 2 -

<PAGE>

     "Consolidated  Total  Assets"  means,  as  of  any  date,  the  assets  and
properties of the Company and its  Subsidiaries  as of such date determined on a
consolidated basis in accordance with GAAP.

     "Consolidated  Total  Capitalization"  means,  as of any  date,  the sum of
Consolidated Funded Debt and Consolidated Net Worth as of such date.

     "Control Event" means:

     (a) the  execution  by the Company or any  Subsidiary  or  Affiliate of any
agreement or letter of intent with respect to any proposed  transaction or event
or series of transactions or events which, individually or in the aggregate, may
reasonably be expected to result in a Change of Control or Management Buyout,

     (b) the execution of any written  agreement  that,  when fully performed by
the parties thereto,  would result in a Change of Control or Management  Buyout,
or

     (c) the making of any written  offer by any person (as such term is used in
section 13(d) and section  14(d)(2) of the Exchange Act as in effect on the date
of the Closing) or related persons constituting a group (as such term is used in
Rule 13d-5 under the Exchange  Act as in effect on the date of each  Closing) to
the holders of the Voting Stock of the Company,  which offer, if accepted by the
requisite  number of holders,  would result in a Change of Control of Management
Buyout.

     "Control  Group"  means all or any of Donald F.  Lamberti,  Ronald M. Lamb,
John G. Harmon and Jamie H. Shaffer, the spouse and direct descendants of any of
the foregoing,  trusts for the benefit of any of the foregoing,  and the estates
or legal representatives of any of the foregoing.

     "Default"  means an event or condition the occurrence or existence of which
would,  with the lapse of time or the giving of notice or both,  become an Event
of Default.

     "Default  Rate" means that rate of interest that is the greater of (i) 2.0%
per annum above the rate of interest stated in clause (a) of the first paragraph
of the Notes or (ii) 2.0% over the rate of interest  publicly  announced by Bank
of America in Chicago, Illinois as its "base" or "prime" rate.

                                        3

                                   Schedule B

                                      - 3 -

<PAGE>

     "Environmental  Laws" means any and all Federal,  state,  local and foreign
statutes,  laws, regulations,  ordinances,  rules,  judgments,  orders, decrees,
permits, concessions,  grants, franchises,  licenses, agreements or governmental
restrictions  relating to pollution and the protection of the environment or the
release of any  materials  into the  environment,  including  but not limited to
those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems.

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

     "ERISA Affiliate" means any trade or business (whether or not incorporated)
that is treated as a single employer together with the Company under section 414
of the Code.

     "Event of Default" is defined in Section 11.

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

     "Funded Debt" means all  Indebtedness  that would, in accordance with GAAP,
constitute  long-term  Indebtedness,  including  (a)  any  Indebtedness  with  a
maturity of more than one year after the date of  creation or that is  renewable
at the option of the obligor for a period of more than one year from the date of
creation,  (b) any Indebtedness  outstanding under a revolving credit or similar
agreement  providing for borrowings (and renewals and extensions thereof) over a
period of more than one year (including an option of such obligor obligating the
lender or lenders to extend  credit over a period of one year or more),  and (c)
any  Guaranty  with  respect to Funded Debt of another  Person.  Notwithstanding
anything to the contrary contained herein, any Indebtedness  outstanding under a
revolving credit or similar agreement providing for borrowings that is paid down
for a  period  of 30  consecutive  days  during  any 12  month  period  (and not
refinanced with a short- term credit facility) shall not be deemed to constitute
Funded Debt.

     "GAAP" means  generally  accepted  accounting  principles as in effect from
time to time in the United States of America.

     "Governmental Authority" means

                  (a)      the government of

                                        4

                                   Schedule B

                                      - 4 -

<PAGE>

     (i)  the  United  States  of  America  or  any  State  or  other  political
subdivision thereof, or

     (ii) any  jurisdiction in which the Company or any Subsidiary  conducts all
or any part of its business,  or which asserts  jurisdiction over any properties
of the Company or any Subsidiary, or

     (b) any entity exercising executive,  legislative,  judicial, regulatory or
administrative functions of, or pertaining to, any such government.

     "Guaranty"  means, with respect to any Person,  any obligation  (except the
endorsement  in the ordinary  course of business of negotiable  instruments  for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
indebtedness,  dividend or other  obligation  of any other Person in any manner,
whether  directly or  indirectly,  including  (without  limitation)  obligations
incurred through an agreement, contingent or otherwise, by such Person:

     (a)  to  purchase   such   indebtedness   or  obligation  or  any  property
constituting security therefor;

     (b) to  advance  or supply  funds (i) for the  purchase  or payment of such
indebtedness  or  obligation,  or (ii) to maintain any working  capital or other
balance sheet condition or any income statement condition of any other Person or
otherwise to advance or make available funds for the purchase or payment of such
indebtedness or obligation;

     (c) to lease properties or to purchase properties or services primarily for
the purpose of assuring  the owner of such  indebtedness  or  obligation  of the
ability of any other Person to make payment of the  indebtedness  or obligation;
or

     (d)  otherwise  to assure  the  owner of such  indebtedness  or  obligation
against loss in respect thereof.

     In any computation of the indebtedness or other  liabilities of the obligor
under any Guaranty,  the indebtedness or other  obligations that are the subject
of such Guaranty shall be assumed to be direct obligations of such obligor.

     "Hazardous  Material"  means  any and all  pollutants,  toxic or  hazardous
wastes or any other substances that might pose a hazard to health or safety, the
removal  of which may be  required  or the  generation,  manufacture,  refining,
production, processing,

                                        5

                                   Schedule B

                                      - 5 -

<PAGE>

treatment, storage, handling, transportation,  transfer, use, disposal, release,
discharge,  spillage, seepage, or filtration of which is or shall be restricted,
prohibited or penalized by any applicable law  (including,  without  limitation,
asbestos, urea formaldehyde foam insulation and polychlorinated biphenyls).

     "holder"  means,  with  respect to any Note,  the Person in whose name such
Note is registered in the register maintained by the Company pursuant to Section
13.1.

     "Indebtedness"  with  respect to any  Person  means,  at any time,  without
duplication,

     (a) its  liabilities  for borrowed money and its redemption  obligations in
respect of mandatorily redeemable Preferred Stock;

     (b) its liabilities for the deferred purchase price of property acquired by
such  Person  (excluding  accounts  payable  arising in the  ordinary  course of
business but including all liabilities  created or arising under any conditional
sale or other title retention agreement with respect to any such property);

     (c) all liabilities  appearing on its balance sheet in accordance with GAAP
in respect of Capital Leases;

     (d) all  liabilities for borrowed money secured by any Lien with respect to
any  property  owned by such Person  (whether or not it has assumed or otherwise
become liable for such liabilities);

     (e) all its  liabilities  in respect  of  letters of credit or  instruments
serving a similar function issued or accepted for its account by banks and other
financial  institutions  (whether or not  representing  obligations for borrowed
money); and

     (f) any  Guaranty  of such  Person with  respect to  liabilities  of a type
described in any of clauses (a) through (e).

     Indebtedness  of any Person shall include all obligations of such Person of
the  character  described  in clauses  (a) through (f) to the extent such Person
remains  legally  liable  in  respect  thereof  notwithstanding  that  any  such
obligation is deemed to be extinguished under GAAP.

     "Institutional  Investor"  means (a) any original  purchaser of a Note, and
(b) any bank,  trust company,  savings and loan  association or other  financial
institution, any

                                        6

                                   Schedule B

                                      - 6 -

<PAGE>

pension plan,  any  investment  company,  any insurance  company,  any broker or
dealer,  or any other similar  financial  institution  or entity,  regardless of
legal form.

     "Lien"  means,  with respect to any Person,  any  mortgage,  lien,  pledge,
charge, security interest or other encumbrance,  or any interest or title of any
vendor,  lessor,  lender or other  secured  party to or of such Person under any
conditional  sale or other title retention  agreement or Capital Lease,  upon or
with respect to any property or asset of such Person (including,  in the case of
stock,   shareholder  agreements,   voting  trust  agreements  and  all  similar
arrangements).

     "Make-Whole Amount" is defined in Section 8.7.

     "Management  Buyout" means the  acquisition  through  purchase or otherwise
(including  the  agreement  to act in  concert)  by any Person or  Persons  that
include the Control Group, directly or indirectly,  in one or more transactions,
of beneficial  ownership or control of securities  representing more than 50% of
the combined voting power of the Company's Voting Stock.

     "Material" means material in relation to the business, operations, affairs,
financial  condition,  assets,  properties,  or prospects of the Company and its
Subsidiaries taken as a whole.

     "Material  Adverse  Effect"  means a  material  adverse  effect  on (a) the
business, operations,  affairs, financial condition, assets or properties of the
Company and its Subsidiaries taken as a whole, or (b) the ability of the Company
to perform  its  obligations  under  this  Agreement  and the Notes,  or (c) the
validity or enforceability of this Agreement or the Notes.

     "Memorandum" is defined in Section 5.3.

     "Multiemployer Plan" means any Plan that is a "multiemployer plan" (as such
term is defined in section 4001(a)(3) of ERISA).

     "Notes" is defined in Section 1.

     "Officer's  Certificate"  means a certificate of a Senior Financial Officer
or of any other  officer of the  Company  whose  responsibilities  extend to the
subject matter of such certificate.

     "Other Purchasers" is defined in Section 2.

                                        7

                                   Schedule B

                                      - 7 -

<PAGE>

     "PBGC"  means the  Pension  Benefit  Guaranty  Corporation  referred to and
defined in ERISA or any successor thereto.

     "Person" means an individual,  partnership,  corporation, limited liability
company,  association,  trust, unincorporated  organization,  or a government or
agency or political subdivision thereof.

     "Plan"  means an  "employee  benefit  plan" (as defined in section  3(3) of
ERISA) that is or,  within the preceding  five years,  has been  established  or
maintained,  or to which  contributions are or, within the preceding five years,
have been made or required to be made, by the Company or any ERISA  Affiliate or
with respect to which the Company or any ERISA Affiliate may have any liability.

     "Priority Debt" means, as of any date, the sum (without duplication) of (i)
outstanding  Indebtedness of Subsidiaries,  and (ii) Indebtedness of the Company
secured by Liens.

     "property" or "properties"  means, unless otherwise  specifically  limited,
real or  personal  property  of any  kind,  tangible  or  intangible,  choate or
inchoate.

     "Proposed Prepayment Date" is defined in Section 8.3(c).

     "QPAM Exemption" means Prohibited  Transaction Class Exemption 84-14 issued
by the United States Department of Labor.

     "Required  Holders"  means,  at any time,  the  holders  of a  majority  in
principal amount of the Notes at the time  outstanding  (exclusive of Notes then
owned by the Company or any of its Affiliates).

     "Responsible  Officer"  means any Senior  Financial  Officer  and any other
officer  of the  Company  with  responsibility  for  the  administration  of the
relevant portion of this Agreement.

     "Securities  Act" means the Securities Act of 1933, as amended from time to
time.

     "Senior  Financial  Officer" means the chief financial  officer,  principal
accounting officer, treasurer or controller of the Company.

                                        8

                                   Schedule B

                                      - 8 -

<PAGE>

     "Subsidiary" means, as to any Person, any corporation, association or other
business entity in which such Person or one or more of its  Subsidiaries or such
Person  and one or more of its  Subsidiaries  owns  sufficient  equity or voting
interests  to  enable  it or them (as a group)  ordinarily,  in the  absence  of
contingencies,  to elect a majority  of the  directors  (or  Persons  performing
similar  functions)  of such  entity,  and any  partnership,  limited  liability
company or joint  venture if more than a 50%  interest in the profits or capital
thereof  is  owned by such  Person  or one or more of its  Subsidiaries  or such
Person and one or more of its  Subsidiaries  (unless such  partnership  or joint
venture can and does  ordinarily  take major business  actions without the prior
approval of such Person or one or more of its Subsidiaries).  Unless the context
otherwise clearly requires,  any reference to a "Subsidiary" is a reference to a
Subsidiary of the Company.

     "Voting  Stock"  shall mean the capital  stock of any class or classes of a
corporation  having power under ordinary  circumstances to vote for the election
of members of the board of directors of such  corporation,  or person performing
similar  functions  (irrespective  of whether or not at the time stock of any of
the class or classes shall have or might have special  voting power or rights by
reason of the happening of any contingency).

     "Wholly Owned Subsidiary"  means, at any time, any Subsidiary,  100% of all
of the  equity  interests  (except  directors'  qualifying  shares)  and  voting
interests of which are owned by any one or more of the Company and the Company's
other Wholly Owned Subsidiaries at such time.

                                        9

                                   Schedule B

                                      - 9 -

<PAGE>

                                  SCHEDULE 4.9

                         Changes in Corporate Structure

                                 Not Applicable

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                  SCHEDULE 5.3

                              Disclosure Materials

                                 Not Applicable

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                  SCHEDULE 5.4

        Organization and Ownership of Shares of Subsidiaries; Affiliates

                                                              Percentage of
                                   Jurisdiction               Voting Stock
Name of                               of                      owned by
Subsidiary                         Incorporation              Company

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

Casey's Services Company               Iowa                       100%

Casey's Marketing Company              Iowa                       100%

Casey's East Central, Inc.             Iowa                       100%

Casey's Enterprises, LLC               Iowa                       100%

     The  Company's   directors  and  senior  officers  are  identified  in  the
Memorandum.

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                  SCHEDULE 5.5

                              Financial Statements

                        All financial  statements provided to the Purchasers are
                        included as part of the Memorandum.

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                  SCHEDULE 5.8

                                   Litigation

                                 Not Applicable

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                  SCHEDULE 5.11

                             Licenses, Permits, etc.

                                 Not Applicable

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                  SCHEDULE 5.14

                                 Use of Proceeds

Repayment of existing short-term indebtednes            $49,000,000

General corporate purposes                               31,000,000
                                                         ----------
                                                        $80,000,000
                                                         ----------

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                  SCHEDULE 5.15

                             Existing Indebtedness*

Mortgage Notes Payable                                   $       250,895.38

Capitalized Lease Obligations                                  4,824,452.70

Ankeny Headquarters Financing                                  8,873,882.16

Senior Notes 6.55%                                            14,400,000.00

Senior Notes 7.7%                                             14,250,000.00

Senior Notes 7.38%                                            30,000,000.00

Senior Notes 6.18% - 7.23%                                    50,000,000.00

Lines of Credit                                               45,950,000.00
                                                              -------------
                                                            $168,549,230.24

*As of April 30, 2000

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                  SCHEDULE 5.18

              Certain Products of the Company and its Subsidiaries

     The  business  operations  of the Company and its  Subsidiaries  entail the
operation  of  convenience  stores,  including  the  sale of  gasoline,  in nine
Midwestern  states.   Such  business   operations  include  the  sale,  storage,
transportation and use of petroleum and petroleum products,  household products,
sanitary  and  cleaning   supplies,   lawn  and  garden   supplies,   and  other
miscellaneous  automotive  products,  some of which may or do contain  Hazardous
Materials as defined herein.  In the ordinary course of the business  operations
of the Company and its Subsidiaries,  quantities of such petroleum and petroleum
products,  households products,  sanitary and cleaning supplies, lawn and garden
supplies  and other  automotive  products  are stored on the  premises  of their
stores and distribution center facilities.

                                  Schedule 5.18

                                                       - 1 -

<PAGE>

                                  SCHEDULE 10.4

                                     Liens*

Principal Financial                                             $8,873,882.16

Marion Haynes                                                      200,000.00

Donald Nielsen                                                      30,895.38

Viviette McCormack                                                  20,000.00
                                                                  ------------

                                                                $9,124,777.54

* As of April 30, 2000

                                        1

                                    Exhibit 1

                                      - 1 -

<PAGE>

                                                                       EXHIBIT 1

                                 [FORM OF NOTE]

                          CASEY'S GENERAL STORES, INC.

                           7.89% SENIOR NOTE, SERIES A

                                DUE MAY 15, 2010

No. [_____]                                                           [Date]
$[_______]                                                           [PPN: ]

     FOR VALUE RECEIVED,  the undersigned,  CASEY'S GENERAL STORES, INC. (herein
called the  "Company"),  a corporation  organized and existing under the laws of
the State of Iowa, promises to pay to [ ], or registered assigns,  the principal
sum of [ ] on May 15,  2010 with  interest  (computed  on the basis of a 360-day
year of twelve 30-day months) (a) on the unpaid  balance  thereof at the rate of
7.89% per annum from the date hereof,  payable  semiannually,  on the May 15 and
November  15 in  each  year,  commencing  with  the May 15 or  November  15 next
succeeding the date hereof, until the principal hereof shall have become due and
payable,  and  (b) to the  extent  permitted  by  law  on  any  overdue  payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any  overdue  payment  of any Make-  Whole  Amount  (as  defined in the Note
Purchase Agreement referred to below), payable semiannually as aforesaid (or, at
the option of the registered holder hereof, on demand), at a rate per annum from
time to time  equal to the  greater  of (i)  9.89% or (ii) 2.0% over the rate of
interest  publicly  announced  by Bank of America  from time to time in Chicago,
Illinois as its "base" or "prime" rate.

     Payments  of  principal  of,  interest  on and any  Make-Whole  Amount with
respect  to this Note are to be made in  lawful  money of the  United  States of
America at the  principal  office of Bank of America in Chicago or at such other
place as the Company shall have  designated  by written  notice to the holder of
this Note as provided in the Note Purchase Agreement referred to below.

     This Note is one of the Senior Notes  (herein  called the  "Notes")  issued
pursuant to the Note Purchase  Agreement,  dated as of May 1, 2000 (as from time
to time amended,  the "Note  Purchase  Agreement"),  between the Company and the
respective  Purchasers  named  therein and is entitled to the benefits  thereof.
Each holder of this Note will be deemed, by its acceptance  hereof,  (i) to have
agreed to the  confidentiality  provisions  set forth in  Section 20 of the Note
Purchase  Agreement  and (ii) to have  made  the  representations  set  forth in
Section 6.2 of the Note Purchase Agreement.

                                    Exhibit 1

                                      - 1 -

<PAGE>

     This  Note is a  registered  Note and,  as  provided  in the Note  Purchase
Agreement,  upon  surrender  of this Note for  registration  of  transfer,  duly
endorsed,  or accompanied by a written instrument of transfer duly executed,  by
the  registered  holder  hereof or such  holder's  attorney  duly  authorized in
writing,  a new  Note  for a like  principal  amount  will  be  issued  to,  and
registered  in the  name  of,  the  transferee.  Prior  to due  presentment  for
registration  of  transfer,  the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving  payment and
for all other  purposes,  and the Company  will not be affected by any notice to
the contrary.

     The Company will make required prepayments of principal on the dates and in
the amounts specified in the Note Purchase Agreement.  This Note is also subject
to  prepayment,  in whole or from time to time in part,  at the times and on the
terms specified in the Note Purchase Agreement, but not otherwise.

     If an Event of Default, as defined in the Note Purchase  Agreement,  occurs
and is  continuing,  the  principal  of this Note may be declared  or  otherwise
become due and payable in the manner,  at the price  (including  any  applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.

     This Note shall be  construed  and  enforced in  accordance  with,  and the
rights of the  parties  shall be  governed  by, the law of the State of Illinois
excluding  choice-of-law  principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.

                                                  CASEY'S GENERAL STORES, INC.

                                              By:
                                            Name:
                                           Title:

                                          Attest:

                                              By:
                                            Name:
                                           Title:

                                                       - 2 -

<PAGE>

                                                                EXHIBIT 4.4(a)

                           FORM OF OPINION OF COUNSEL

                                 FOR THE COMPANY

     The opinion of Ahlers,  Cooney,  Dorweiler,  Haynie,  Smith & Allbee, P.C.,
counsel for the Company, shall be to the effect that:

     1. The Company and each  Subsidiary  is a  corporation  duly  incorporated,
validly  existing  in  good  standing  under  the  laws of its  jurisdiction  of
incorporation,  and has all requisite  corporate  power and authority to own and
operate its properties,  to carry on its business as now conducted,  and, in the
case of the Company,  to enter into and perform the  Agreement and the Notes and
to issue and sell the Notes.

     2. The Company and each  Subsidiary  is duly  qualified  or licensed and in
good  standing  as a  foreign  corporation  authorized  to do  business  in each
jurisdiction where the nature of its business or the character of its properties
makes such qualification or licensing necessary, except where such failure to be
so qualified or licensed would not have a Material Adverse Effect.

     3. The  Agreement  and the  Notes  have  been  duly  authorized  by  proper
corporate  action  on the part of the  Company,  have  been  duly  executed  and
delivered  by an  authorized  officer of the Company and  constitute  the legal,
valid and binding  obligations of the Company,  enforceable  in accordance  with
their  terms,  except to the extent that  enforcement  thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws of
general  application  relating to or affecting the  enforcement of the rights of
creditors or by  equitable  principles,  regardless  of whether  enforcement  is
sought in a proceeding in equity or at law.

     4. Based upon the representations set forth in the Agreement, the offering,
sale and  delivery  of the Notes do not require  the  registration  of the Notes
under  the  Securities  Act of 1933,  as  amended,  or the  qualification  of an
indenture under the Trust Indenture Act of 1939, as amended.

     5. No  authorization,  approval or consent of, and no designation,  filing,
declaration,  registration and/or qualification with, any Governmental Authority
is  necessary  or  required  in  connection  with the  execution,  delivery  and
performance  by the  Company  of the  Agreement  and the Notes or the  offering,
issuance and sale by the Company of the Notes.

     6. The issuance and sale of the Notes by the Company,  the  performance  of
the terms and  conditions  of the Notes and the  Agreement and the execution and
delivery  of the  Agreement  do not  conflict  with,  or result in any breach or
violation of any of the provisions of, or constitute a default under,  or result
in the  creation  or  imposition  of any  Lien on the  property  of the  Company
pursuant to, the provisions of (i) the  certificate of  incorporation  (or other
charter document) or by-laws of the

                                        1

                                 Exhibit 4.4(a)

                                      - 1 -

<PAGE>

Company,  (ii) any loan  agreement  or  evidence of  Indebtedness  known to such
counsel  to which  the  Company  is a  party,  or other  Material  agreement  or
instrument known to such counsel to which the Company is a party or by which any
of them or their property is bound or may be affected,  (iii) any law (including
usury laws), or regulation  applicable to the Company,  or (iv) any order, writ,
injunction  or  decree  known  to such  counsel  of any  court  or  Governmental
Authority applicable to the Company.

     7. There are no actions, suits or proceedings pending or, to such counsel's
knowledge,  threatened against or affecting the Company,  at law or in equity or
before  or  by  any  Governmental   Authority,   which  are  likely  to  result,
individually or in the aggregate, in a Material Adverse Effect.

     8.  The  Company  is not  (i) a  "public  utility  company"  or a  "holding
company," or an "affiliate" or a "subsidiary company" of a "holding company," or
an "affiliate" of such a "subsidiary  company," as such terms are defined in the
Public Utility Holding Company Act of 1935, as amended,  (ii) a "public utility"
as defined  in the  Federal  Power  Act,  as  amended,  or (iii) an  "investment
company" or an  "affiliated  person"  thereof,  as such terms are defined in the
Investment Company Act of 1940, as amended.

     9. The  issuance of the Notes and the  intended  use of the proceeds of the
sale of the Notes do not violate or conflict  with  Regulation  T, U or X of the
Board of Governors of the Federal Reserve System.

     The opinion of Ahlers,  Cooney,  Dorweiler,  Haynie,  Smith & Allbee,  P.C.
shall  cover  such  other  matters  relating  to the  sale of the  Notes  as the
Purchasers may reasonably request. With respect to matters of fact on which such
opinion  is  based,  such  counsel  shall  be  entitled  to rely on  appropriate
certificates  of public  officials and officers of the Company.  For purposes of
the opinion regarding enforceability, Ahlers, Cooney, Dorweiler, Haynie, Smith &
Allbee,  P.C. may assume that Illinois law is in all respects  identical to Iowa
law. With respect to matters governed by the laws of any jurisdiction other than
the United States of America and the laws of the State of Iowa, Ahlers,  Cooney,
Dorweiler,  Haynie,  Smith & Allbee,  P.C. may rely upon the opinions of counsel
deemed (and stated in their  opinion to be deemed) by them to be  competent  and
reliable. The opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C.
may state that such  opinion is  delivered  to its  recipients  solely for their
benefit and may not be furnished  to,  quoted or relied upon by any other person
other than  counsel to such  recipients  and any  successors  or assigns of such
recipients' interests in the Notes;  provided,  however, that the opinion may be
disclosed (i) to such  recipients'  agents and  employees as necessary,  (ii) in
connection  with the  enforcement  of obligations of the Company under the Notes
and the Agreement,  (iii) in response to a subpoena or other legal process, (iv)
as otherwise required by applicable law or regulations or (v) in connection with
the sale or transfer of the Notes.

                                        2

                                 Exhibit 4.4(a)

                                      - 2 -

<PAGE>

                                                             EXHIBIT 4.4(b)

                       FORM OF OPINION OF SPECIAL COUNSEL

                                TO THE PURCHASERS

     The  opinion  of  Gardner,  Carton  &  Douglas,   special  counsel  to  the
Purchasers, shall be to the effect that:

     1. The Company is a  corporation  organized  and  validly  existing in good
standing under the laws of the State of Iowa, with requisite corporate power and
authority to enter into the Note  Purchase  Agreement  and to issue and sell the
Notes.

     2. The  Agreement  and the  Notes  have  been  duly  authorized  by  proper
corporate  action  on the part of the  Company,  have  been  duly  executed  and
delivered by an authorized  officer of the Company,  and  constitute  the legal,
valid and binding obligations of the Company, enforceable against the Company in
accordance with their terms,  except to the extent that enforcement  thereof may
be limited by applicable bankruptcy, insolvency,  reorganization,  moratorium or
similar laws of general application  relating to or affecting the enforcement of
the  rights of  creditors  or by  equitable  principles,  regardless  of whether
enforcement is sought in a proceeding in equity or at law.

     3. Based upon the representations set forth in the Agreement, the offering,
sale and  delivery  of the Notes do not require  the  registration  of the Notes
under the  Securities  Act of 1933,  as  amended,  nor the  qualification  of an
indenture under the Trust Indenture Act of 1939, as amended.

     4. The  issuance  and sale of the Notes and  compliance  with the terms and
provisions  of the Notes and the  Agreement  will not conflict with or result in
any breach of any of the  provisions  of the  certificate  of  incorporation  or
by-laws of the Company.

     5. No  approval,  consent or  withholding  of  objection on the part of, or
filing,  registration or qualification  with, any governmental  body, Federal or
state,  is  necessary  in  connection  with the  execution  and  delivery of the
Agreement or the Notes.

     Gardner, Carton & Douglas may rely, as to matters of Iowa law and as to the
corporate  power  and  authority  of the  Company  and  the  due  authorization,
execution  and delivery by the Company of the  Agreement  and the Notes upon the
opinion of Ahlers, Cooney,  Dorweiler,  Haynie, Smith & Allbee, P.C. The opinion
of Gardner,  Carton & Douglas  shall  state that the opinion of Ahlers,  Cooney,
Dorweiler,  Haynie,  Smith & Allbee,  P.C. is  satisfactory in form and scope to
Gardner,  Carton & Douglas, and, in its opinion, the Purchasers are justified in
relying  thereon.  Such opinion shall cover such other  matters  relating to the
sale of the Notes as the Purchasers may reasonably request.

                                        1

                                 Exhibit 4.4(b)

                                      - 1 -

<PAGE>

                                                               EXHIBIT 22.2

                             FORM OF TERMS AGREEMENT

     THIS TERMS  AGREEMENT is made and entered into as of this  _________ day of
_______________,  -------(this  "Terms  Agreement") by and among Casey's General
Stores, Inc., an Iowa corporation (the "Company"),  and the Purchasers listed on
Schedule A hereto (the "Purchasers");

                                 R E C I T A L S

     A. The  Company  has  entered  into a Note  Purchase  Agreement  (the "Note
Agreement"),  dated  as of May 1,  2000,  with  each of the  parties  listed  on
Schedule A thereto; and

     B. The  Company  desires to issue and sell,  and the  Purchasers  desire to
purchase,  an  additional  series of unsecured  promissory  notes (Series __) in
accordance with the terms specified below;

     NOW, THEREFORE, subject to compliance with all of the conditions to closing
and funding set forth in Section 4 of the Note  Agreement,  with such changes as
shall be appropriate  to such  additional  series of notes,  and the delivery of
such  additional  closing  documents  and  opinions as the  Purchasers  or their
counsel may request, the parties signatory hereto agree as follows:

     1. Authorization of Notes. The Company has authorized the issuance and sale
of $____________  aggregate  principal amount of its _____% Senior Notes, Series
___ (the  "Notes"),  to be dated the date of issue,  to bear  interest from such
date at the rate of ___% per annum, payable ___________________ on _________, __
and _________, __ in each year (commencing  _____________,  ___) and at maturity
and to bear interest on overdue principal  (including any overdue  prepayment of
principal) and premium,  if any, and (to the extent legally  enforceable) on any
overdue  installment  of  interest  at the rate of ___% per  annum,  whether  by
acceleration or otherwise,  until paid. The Notes will mature on  _____________,
20__ (the "Maturity Date") and will be substantially in the form of Exhibit A to
the Note  Agreement,  with such  changes  therein as are required to reflect the
terms of the Notes specified  above.  The term "Notes" as used herein shall only
include any and all of the Notes delivered  pursuant to this Terms Agreement and
each such Note delivered in substitution or exchange therefor.

     2. Sale and  Purchase.  The Company will issue and sell to the  Purchasers,
and the  Purchasers  will  purchase  from the  Company on the  Closing  Date (as
hereinafter defined), Notes in the aggregate principal amount set forth opposite
their  respective  names on the  attached  Schedule  A at a price of 100% of the
principal amount thereof.

     3.  Closing.  Delivery  of  the  Notes  will  be  made  at the  offices  of
_______________________ against payment therefor in Federal funds or other funds
in U.S. dollars immediately available at _______________,  ABA.  No. __________,
for deposit in the Company's

                                        1

                                  Exhibit 22.2

                                      - 1 -

<PAGE>

     Account No. __________,  in the amount of the purchase price not later than
____________,  _____________ time, on ___________, 20__ or such earlier or later
date (but in any event not later than ____________, 20__) as the Company and the
Purchasers may mutually agree upon (the "Closing Date").

     4. Use of Proceeds. The proceeds from the sale of the Notes will be used to
-----------------------.

     5. Payment and Prepayment of the Notes.  The Company shall pay the Notes in
accordance  with the  repayment  provisions  set forth in Schedule B hereto.  In
addition,  unless otherwise  specified in Schedule B, the Notes shall be subject
to  mandatory  and  optional  prepayment  in  accordance  with the  optional and
mandatory  prepayment  provisions of Sections 8.2 and 8.3 of the Note Agreement.
Each  reference to "Notes"  therein shall be deemed to refer to the Notes issued
pursuant to this Terms Agreement.

     6. Compliance  With Note  Agreement.  Except to the extent in conflict with
any of the provisions of this Terms Agreement, the Company agrees to comply with
each of the covenants,  agreements and other  provisions of the Note  Agreement,
which  covenants,  agreements  and other  provisions,  together with the related
definitions  of terms used  therein and the  exhibits  referred to therein,  are
hereby  incorporated by reference into this Terms Agreement with the same effect
as if such  covenants,  agreements and provisions were set forth in full herein,
except that all references to  "Purchasers"  therein shall be deemed to refer to
the Purchasers  hereunder and all references to "Notes"  therein shall be deemed
to refer to the Notes issued  pursuant to this Terms  Agreement.  Any amendment,
supplement,  modification,  change or waiver of any of the covenants, agreements
or provisions of the Note  Agreement,  or any of the  definitions  of terms used
therein or exhibits  referred  to  therein,  shall not have any force and effect
under  this  Terms  Agreement  unless  the  holders  of not less than 51% of the
principal  amount of the Notes  outstanding  hereunder  shall have  consented in
writing to such amendment, supplement, modification, change or waiver.

                       [Add any additional provisions to reflect
                       particular agreements between the parties]

                                        2

                                  Exhibit 22.2

                                      - 2 -

<PAGE>

     IN WITNESS  WHEREOF,  the Company and the Purchasers have caused this Terms
Agreement to be executed and delivered by their  respective  officer or officers
thereunto duly authorized.

                                             CASEY'S GENERAL STORES, INC.

                                            By:
                                          Name:
                                         Title:

                  PURCHASERS:

                                           By:
                                         Name:
                                        Title:

                                        3

                                  Exhibit 22.2

                                      - 3 -

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